CSB IAS ACADEMY CONTACT NO: 9966436875

Bay of Bengal Initiative for Multi-Sectoral Technical

and Economic Cooperation (BIMSTEC)
HISTORY & Evolution of BIMSTEC:
Estd. on: 06 June 1997 with the signing of the Bangkok Declaration
• Representatives of the Governments of Bangladesh, India, Sri Lanka, and Thailand came together in
Bangkok, and signed the Bangkok Declaration.
• Initially known as BIST-EC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation)
• The organisation is now known as BIMSTEC and comprises 7 Member States with the admission of
Myanmar in 1997, and Bhutan and Nepal in 2004.
• Myanmar joined in December 1997, the group was renamed BIMST-EC (Bangladesh, India,
Myanmar, Sri Lanka, Thailand Economic Cooperation).
• With the admission of Nepal and Bhutan during the 6th Ministerial Meeting in Thailand in July 2004,
the grouping was renamed during the First Summit in Bangkok on 31 July 2004 as the Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

Member States (7): Bangladesh, Bhutan, India, Nepal, Sri Lanka, Thailand, Myanmar

BIMSTEC Charter: signed & adopted in 2022 Colombo Summit (defined the bloc’s objectives and formal
structure)
• Until the Colombo summit of 2022, BIMSTEC did not have a formal document or organisational
architecture.

BIMSTEC Secretariat: Dhaka

Areas or Sectors of Cooperation/ Key Pillars in BIMSTEC:

Sectors/ Pillars Sub-Sectors Led by

Trade, Investment &

Blue Economy Bangladesh
Development
Environment & Climate
Mountain Economy Bhutan
Change
Counter-Terrorism and
Transnational Crime,
Security India
Disaster Management,
Energy
Agriculture and Food Agriculture, Fisheries &
Myanmar
Security Livestock
Culture, Tourism,
Poverty Alleviation,
People-to-People Contact People-to-People Contact Nepal
(forums of think tanks,
media etc.)

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Technology, Health,
Science, Technology &
Human Resource Sri Lanka
Innovation
Development
Connectivity Thailand

BIMSTEC Summits:

1) First BIMSTEC Summit – 2004 (Bangkok)

2) Second BIMSTEC Summit – 2008 (New Delhi)
3) Third BIMSTEC Summit – 2014 (Nay Pyi Taw)
4) Fourth BIMSTEC Summit – 2018 (Kathmandu)
5) Fifth BIMSTEC Summit – 2022 (Colombo)
6) Sixth BIMSTEC Summit – 2025 (Bangkok)

Strategic Importance of BIMSTEC:

General Stats: BIMSTEC region is home to around 1.8 billion people, nearly 22% of the global
population with a combined gross domestic product (GDP) of US$5 trillion (Source: MEA, March 2025).
• The Bay of Bengal (BoB) is the largest bay in the world which is strategically located linking the
Indian Ocean and Pacific Ocean and acts as a connection to the Strait of Malacca.
• Carrying 1/4th of the global trade (25%), BoB becomes the access point to India for resources
including energy source like natural gas reserves and securing this economically significant region is
important for India to enlarge its export market.
• Bay of Bengal region is a microcosm in India’s vision for its Indo-Pacific politics.
• It helps in solidifying Act East policy of India & Neighbourhood First Policy.
• It connects North-East region with ASEAN and South East Asia.
• Strengthening ties with Bangladesh & Myanmar provides access to sea to India’s North-east region.
• Improved ties with Myanmar & Thailand will help India improve its presence in Indo-Pacific and
access to ASEAN.

Being the largest and most developed country in this grouping, the onus of steering the
organisation forward lies with India. However, if India pursues an approach of selective usage, it restricts the
ability of the organisation to live up to its full potential. The benefits from greater regional integration are
much higher than simply using BIMSTEC as a diplomatic tool for isolation within the region.

One of BIMSTEC’s two founding principles is:

1. “It is a bridge between South and South East Asia” and
2. a “platform for inter-regional cooperation between SAARC and ASEAN members.”

SAARC Vs BIMSTEC
SAARC BIMSTEC

1) A regional organisation looking into Interregional organisation

South Asia connecting South Asia and South
East Asia
2) Established in 1985; a product of the Established in 1997 in the post-Cold War
Cold War era
3) Member countries suffer for mistrust Members maintain reasonably friendly
and suspicion relations
4) Suffers from regional politics Core objective is the improvement
of economic cooperation among
countries
5) Asymmetric power balance Balancing of power with the presence

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
of Thailand and India on the bloc
6) Intra-regional trade only 4-5 percent Intra-regional trade has increased
around 7 percent in less time than SAARC

BIMSTEC Bangkok Vision, 2025: Unveiled at the Sixth Summit meeting of the grouping in March 2025,
the “Bangkok Vision 2030” is framed around the theme “A Prosperous, Resilient and Open BIMSTEC by
2030 for our people and future generations.”
• Emerging sectors such as the digital economy, blue economy, mountain economy, and sustainable
tourism are being positioned as future growth drivers.
• Special emphasis is placed on supporting the developmental needs of Least Developed Countries
(LDCs) and landlocked nations to ensure that the proposed BIMSTEC Free Trade Area remains
inclusive and equitable.
• Regarding human security, the Vision identifies cybercrime, drug and human trafficking, and other
transnational threats as key areas for deeper collaboration.
• Conclude BIMSTEC Free Trade Agreement & ease customs/trade facilitation.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Significance of BIMSTEC
• Alignment with Act East Policy: BIMSTEC aligns with India’s Act East Policy, and
“Neighbourhood First” policies, it offers a key platform for India to play an active role in Indo-
Pacific region, which is the theatre of 21st century Global politics.
• Alternative to SAARC: SAARC has been weighed down by bilateral problems between India and
Pakistan, Cross-border Terrorism etc. and BIMSTEC offers a viable alternative to SAARC in South
Asia.
• Strategic bridge between South Asia and Southeast Asia: Effectively linking India with SE Asian
countries through member states like Thailand and Myanmar, which are part of ASEAN.
• A Key regional Forum for India in the Neighbourhood: PM Modi on the sidelines of 6th BIMSTEC
Summit in Bangkok met Mohammed Yunus of Bangladesh, PM of Nepal K.P. Sharma Oli, and
Myanmar’s Prime Minister General Min Aung Hlaing. Since SAARC is crippled, it offers an
alternative to maintain warm relations with our neighbours.
• It also serves as a platform for regional cooperation to counter China’s growing influence through
the Belt and Road Initiative (BRI) and String of Pearls.
• Having walked away from mega trade blocs such as the China-led RCEP, India’s willingness to explore
an FTA within the framework of a near-home regional grouping may provide greater accommodation
for multi-party interests.
• Blue Economy and Maritime security: With a focus on the region of Bay of Bengal and helps in
streamlining shipping routes, anti-piracy operations, etc. which align with India's SAGAR (Security
and Growth for All in the Region) and MAHASAGAR (Mutual and Holistic Advancement for
Security and Growth Across Regions) in Indian Ocean Region.
• Maritime connectivity: Bay of Bengal is a vital maritime zone for global trade, with over 25% of
the world’s traded goods passing through its waters. BIMSTEC’s Coastal Shipping Agreement
aims to promote maritime trade and reduce transportation costs by facilitating direct shipping routes
between member states. However, the lack of standardized regulations and port infrastructure has
limited the agreement’s effectiveness. The Bangkok Summit (2025) also delivered a significant
breakthrough with the Agreement on Maritime Transport Cooperation. This pact creates a
framework to streamline shipping across the Bay of Bengal, reducing logistical hurdles and costs
for moving goods between member states.
• ‘Vision 2030’ document: Negotiating a free trade agreement (FTA) and Customs agreements are
among other plans outlined in a that was adopted in the document.

Benefits – All to gain:

• India – can link its north-eastern states to Bangladesh, Myanmar, and Thailand, spurring development
.
• Smaller economies like Nepal and Bhutan would gain easier access to ports and market.
• Littoral states like Bangladesh and Sri Lanka anticipate growth from streamlined shipping links, help
become hubs for shipment in the Indo-Pacific region.
• Myanmar and Thailand – offers an alternative way to reduce over-dependence on China and for
Thailand it opens up a huge consumer South Asian consumer markets for its commodities.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Issues:
Poor Economic Integration:
• Economic integration is at the core of BIMSTEC’s mandate, yet Intra-BIMSTEC trade remains
low—about 7 percent of members’ total trade (around $70 bn as of 2022) This is far less compared
to ASEAN’s $600 bn intra-regional trade (constituting 23% of its global trade).
• It is held back by a lack of political will, poor customs harmonization, weak transport infrastructure,
and underdeveloped value chains.
• Despite years of negotiations since 2004 and over 20 rounds of talks, the BIMSTEC Free Trade
Agreement (FTA) remains the primary economic bottleneck and a major failure. The principal hurdle
has been differences over market access between the two big economies of BIMSTEC: India and
Thailand. It is stalled by differing tariff sensitivities, limited value chain integration, and concerns
about asymmetric benefits for smaller economies.

Inter-State Disputes:
• BIMSTEC is not immune to internal frictions or external pressure points. Ongoing tensions and
instability in Myanmar, along with unresolved bilateral issues such as the Rohingya crisis between
Myanmar and Bangladesh, and the strain in ties between India and Bangladesh’s interim govt.
following regime change in the latter, India-Nepal border issue, etc. pose significant risks to regional
cohesion. However, the recent Bangkok Vision fails to propose conflict-resolution frameworks or
confidence-building measures to mitigate these tensions.

Chinese problem: China’s growing presence in the region through the Belt and Road Initiative
(BRI) creates strategic concerns for India. All BIMSTEC member countries except India and Bhutan are
part of BRI projects, giving China strategic leverage across South and Southeast Asia.
• The absence of a dedicated development fund or a clear financing architecture raises serious
concerns about the viability of various developmental projects.

Infrastructure Issues: the construction on key stretches of India–Myanmar–Thailand trilateral highway,

has been halted due to the ongoing civil conflict, security situation in Myanmar. The BBIN Motor Vehicles
Agreement (MVA), which is set to facilitate seamless movement of goods and passengers is in operation
amongst the other three countries but yet to be ratified by Bhutan (fears of vehicular pollution and
environmental degradation). The MVA was proposed to reduce transport costs drastically and foster better
connectivity between the four countries. It entailed building a freight corridor connecting the south Asian
nations with each other.
• BIMSTEC grid connectivity and energy projects are yet to take off.
• Many connectivity projects have seen delays due to funding and bureaucratic hurdles – allocating
resources, resolving technical issues, and adhering to timelines—to ensure these commitments yield
tangible results.

Sustainable Development Fee (SDF): a daily levy paid by all visitors on a tourist visa to support Bhutan's
development. This fee is aimed at promoting sustainable tourism, infrastructural upgrades, culture and funding
environmental conservation efforts.
• The BIMSTEC Secretariat in Dhaka, which has been understaffed and underfunded, limiting the
implementation of joint decisions.
Unequal member dynamics: India’s dominant economic size (US $4 trillion GDP) creates imbalances; the
next two bigger economies like Thailand (US$ 550 Billion) & Bangladesh (US$ 450 Billion) are dwarfed by
Indian economic size.

Overlapping frameworks and Objectives with SAARC: many of its objectives, goals are a mere duplicity
of SAARC projects that makes BIMSTEC operate in the shadow of SAARC without much of a uniqueness
on its own.
Future Prospects/ recommendations:
• The lack of a dedicated funding mechanism has also restricted BIMSTEC. Establishing a BIMSTEC
Development Fund, modeled after similar initiatives in ASEAN, could provide the necessary financial
resources to accelerate regional integration.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Its focus on technical and economic cooperation often overlooks the importance of addressing non-
traditional security challenges, such as climate change, human trafficking, and transnational crime,
underlining a missed opportunity to address the region’s most pressing challenges.
• To realize its full potential, BIMSTEC must adopt a more proactive and inclusive approach to regional
integration. Expanding its membership to include other Southeast Asian countries like Indonesia and
Malaysia could enhance its geographic and economic reach. These countries have strong maritime and
economic ties with the Bay of Bengal region and could contribute to BIMSTEC’s initiatives in areas
like maritime security, blue economy, and digital connectivity.
• Improving the capacity of the secretariat, both in terms of manpower and funding;
• Clinching the FTA as soon as possible.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

BIMSTEC means Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.
Rivalry between India & Pakistan facilitated the death of SAARC it also facilitated the birth of BIMSTEC.

BIMSTEC:
• India has a bigger role to play in BIMSTEC.
• BIMSTEC is SAARC minus Maldives, Afghanistan & Pakistan
• Helps in improving ties with ASEAN & RCEP nations
• Intra-regional trade is less than 5% of the total trade of South Asian countries whereas the potential is
at least double this.
• Absence of FTA agreement and lack of proper connectivity in the region has resulted in the ineffective
functioning of the group.
• India has already invested in the India-Myanmar-Thailand Trilateral Highway, the Kaladan
Multimodal Transit Transport Project and the BIMSTEC Motor Vehicle Agreement.
• BIMSTEC is the only platform through which India can project and extract its interests in South Asia
without a hindrance from Pakistan, also enabling India to counter the Chinese influence in its
neighbourhood.
• India-Pakistan rivalry (India-Pakistan rivalry crippled SAARC – Ranil Wikramsinghe, Sri Lankan
former PM & current President)
• BIMSTEC would be a perfect platform to reap the benefits of Blue Economy for India, due to its
regional integration and maritime security factors.
• The organisation also enables connectivity and development projects of India like the SAGAR
(Security and Growth for All in the Region) initiative which strengthens the economic, maritime
and security cooperation through the sharing of information, surveillance measures and increased
capabilities in the Indian Ocean region.
• The BBIN framework was seen by many as heralding the era of ‘SAARC Minus One’ and hostile to
Pakistan.
• BIMSTEC helps India in countering China multilaterally. It helps to counter Chinese aggressive
initiatives like the Belt and Road Initiative (BRI), debt trap policy etc.
• The rise of China and its influence in the Indian neighbourhood (both land & maritime) raised the
need to negate the Chinese influence further added to the shift in focus to BIMSTEC.

Rise of BIMSTEC:
In a pointed signal, when Indian Prime Minister Narendra Modi began his second term in 2019, he invited
BIMSTEC leaders to his inauguration, unlike his first term, when he had invited SAARC leaders.

Pros for BIMSTEC as an alternative for SAARC:

1. One of the reasons for BIMSTEC’s popularity is that the member countries have generally cordial
relationships, something patently missing among the SAARC countries.
2. “Despite SAFTA coming into effect as early as 2006, the intra-regional trade continues to be at a
meagre 5%.”
3. “In the 40 years of its history, annual SAARC summits have been postponed 11 times for political
reasons, either bilateral or internal.”
4. The asymmetry between India and other member countries in terms of geography, economy, military
strength and influence in the global arena make the smaller countries apprehensive. They perceive
India as “Big Brother” and fear that it might use the SAARC to pursue hegemony in the region.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
5. The smaller neighbouring countries, therefore, have been reluctant to implement various agreements
under SAARC.
6. SAARC does not have any arrangement for resolving disputes or mediating conflicts.
7. Disputes among the member countries often hamper consensus building, thus slowing down the
decision-making process.
8. Given SAARC’s failures, member countries have turned to bilateralism, which in turn has adversely
affected the organisation.
9. SAARC faces a shortage of resources, and countries have been reluctant to increase their contributions.
10. Security is another key sector of cooperation. Some of the common threats faced by BIMSTEC
countries include terrorism, organised crime, drug trafficking, human trafficking, illegal
migration, and radicalisation. In 2009, the members signed the BIMSTEC Convention on
Cooperation in Combating International Terrorism, Transnational Organised Crime and Illicit Drug
Trafficking.
11. SAARC is nearly 40 years old yet is still weak. Today, South Asia is one of the world's least
integrated regions. Members have weak economic ties, issues of national identity persist, and political
tensions remain.
12. The future of the South Asian Association for Regional Cooperation (SAARC) appears bleaker than
ever. Following the failed 19th SAARC Summit in Pakistan in 2016, key member states—India,
Bangladesh, and Myanmar—began pivoting eastwards, elevating BIMSTEC’s strategic relevance.
13. With the prospect of SAARC’s revival further relegated to the margins in the wake of renewed India-
Pakistan strain—following the Pahalgam terror attack and Operation Sindoor in April 2025—
reliance on BIMSTEC for regional cooperation has increased manifold.
14. The outcome of the 18th summit of SAARC, held in Kathmandu, Nepal, in November 2014, was not
exceptional in any way. No concrete action was taken on the issues of terrorism, trade and foreign
investment to validate the theme of the conference, 'Deeper Integration for Peace and Prosperity.' The
lack of political will among members to make SAARC a dynamic grouping has been evident since its
inception and was again seen in Kathmandu.

BIMSTEC, can’t be an alternative to SAARC:

1. BIMSTEC even though having existed since 1997, doesn’t have an impressive record in terms of
tangible achievements. For example, Intra-regional trade is a mere 6-7% nigh on-par with SAARC.
2. However, BIMSTEC cannot replace SAARC for reasons such as lack of a common identity and
history among all BIMSTEC members.
3. Moreover, BIMSTEC’s focus is on the Bay of Bengal region and the surrounding littoral states, thus
making it an inappropriate forum to engage all South Asian nations.
4. Pakistan’s opposition to connectivity projects such as the Motor Vehicles Agreement (MVA), energy
sharing proposals and others such as the South Asia Satellite offered. It resulted in the evolution of
BBIN MVA agreement side-lining Pakistan.
5. With India’s growing frustration over cross-border terrorism emanating from Pakistan, it hopes to
build more on BIMSTEC’s potential. But the organisation is unlikely to supplant SAARC for a specific
reason.
6. BIMSTEC emerged out of the necessities of the member countries. India was motivated to join
BIMSTEC as it wanted to enhance its connectivity with ASEAN countries: a major component of
its Look East Policy, now rechristened Act East Policy.
7. A landmark achievement for BIMSTEC was the establishment of a permanent secretariat in Dhaka.
However, the secretariat faces a severe resource crunch, both in terms of money and manpower,
which has adversely affected its performance.

Conclusion:
The two organisations— SAARC and BIMSTEC— focus on geographically overlapping regions. However,
this does not make them equal alternatives. SAARC is a purely regional organisation, whereas BIMSTEC is
interregional and connects both South Asia
and ASEAN. Their regions of interest overlap, SAARC and BIMSTEC complement
each other in terms of functions and goals. The success of BIMSTEC does not render SAARC pointless; it
only adds a new chapter in regional cooperation in South Asia.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

South Asian Association for Regional Cooperation (SAARC):

• SAARC estd. in: 1985
• SAARC is the brainchild of the former President of Bangladesh Zia ur Rahman, who proposed
regional cooperation in South Asia in 1980 to promote peace and stability.
• SAARC Charter Signed: in Dhaka on 8 December 1985.
• Secretariat: Kathmandu, Nepal
• Member States: 8 countries (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and
Sri Lanka)
• The seven founding members were: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and
Sri Lanka. Afghanistan joined later in 2007.
• SAARC maintains permanent diplomatic relations at the United Nations as an observer.
• SAARC intended to promote the development of regional and economic
integration.

Significance of SAARC:
South Asia, the most populous region of the world (25% of the world’s population), represents a combined
market of only $5 trillion in GDP.

The objectives of the Association as outlined in the SAARC Charter are:

1. to promote the welfare of the peoples of South Asia and to improve their quality of life;
2. to accelerate economic growth, social progress and cultural development in the region and to provide
all individuals the opportunity to live in dignity and to realize their full potentials;
3. to promote and strengthen collective self-reliance among the countries of South Asia;
4. to contribute to mutual trust, understanding and appreciation of one another's problems;
5. to promote active collaboration and mutual assistance in the economic, social, cultural, technical and
scientific fields;
6. to strengthen cooperation with other developing countries;
7. to strengthen cooperation among themselves in international forums on matters of common interests;
8. and to cooperate with international and regional organizations with similar aims and purposes.

Decisions at all levels are to be taken on the basis of unanimity; and bilateral and contentious issues are
excluded from the deliberations of the Association.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Observer States:
• There are currently 9 Observers to SAARC, namely: (i) Australia; (ii) China; (iii) the European
Union; (iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the
United States of America.
• There is a moratorium on the admission of new Observers to SAARC at present. Observers are invited
to participate in the inaugural and closing Sessions of SAARC Summits.

Member States have decided to engage the SAARC Observers into productive, demand-driven and objective
project based cooperation in priority areas as identified by the Member States, i.e. (Communication (ii)
Connectivity (iii)Agriculture (iv) Public Health (v) Energy (vi) Environment and (vii) Economic Cooperation.

South Asia Satellite/ GSAT-9:

The South Asia Satellite, also known as GSAT-9, is a geostationary communications and meteorology satellite
operated by the Indian Space Research Organisation (ISRO) for the SAARC region. The satellite was launched

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
in 2017 as a part of Neighbourhood first policy. Except Pakistan all are the users of the multi-dimensional
facilities provided by the satellite. India said that it wanted the project to be a "gift".

The South Asia Satellite provides crucial information on tele-medicine, tele-education, banking and
television broadcasting opportunities. It is also equipped with remote sensing state of the art technology
which enables collection of real-time weather data and helps in observations of the geology of the South Asian
nations.

Vaccine Diplomacy of India:

Prime Minister Narendra Modi held a special virtual summit of 8 SAARC nations and proposed a COVID-
19 package, for which India provided about half of the $20 million funding for relief. India’s military ran a
series of missions to SAARC countries and the Indian Ocean Region (IOR) with supplies of food and
medicines, and India’s ‘Vande Bharat’ mission flew home nationals from neighbouring countries. Under the
Vaccine Maitri and India’s Neighbourhood First and SAGAR: “Security and Growth for All in the
Region” policies India also supplied COVISHIELD vaccines to its neighbours.

SAARC Development Fund:

• Projects Funded: Health, education, women empowerment, livelihood, and connectivity projects.
• Partially successful, especially in small-scale social development, but fails to meet its full
infrastructure potential.
• Slow disbursement and project completion delays, political delays etc.

South Asian University (SAU):

• To be a flagship SAARC institution offering post-graduate and doctoral education in areas
relevant to South Asia.
• Promote regional consciousness and cooperation through education.
• Moderately successful academically, but plagued by infrastructure delays and geo-political
tensions.

SAARC Arbitration Council (SARCO):

• To provide a legal framework for resolving commercial and investment disputes among SAARC
member states or their private parties.
• Promotes Alternative Dispute Resolution (ADR) in the region.
• Marginally functional but not successful in becoming a trusted regional dispute resolution body.

SAARC Visa Exemption Scheme (SVES):

• SVES, launched in 1992, is designed to facilitate people-to-people contact and regional cooperation
among SAARC nations.
• It permits select individuals from member countries to travel without a visa using a Special Travel
Document.
• It covers 24 categories, including dignitaries, judges, parliamentarians, officials, businesspersons,
journalists, and sportspersons.
• Narrow Scope: Much more limited than comparable regional schemes (e.g., EU/Schengen, ASEAN),
as it applies only to elite categories—not ordinary citizens or tourists.
• Security Risks: The scheme remains vulnerable to being rolled back when security concerns arise.

Few SAARC Summits:

No. Year Hosted by

1 1985 Dhaka
2 1986 Bangalore
8 1995 New Delhi

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
14 2007 New Delhi (SAARC University announced;
Afghanistan joins SAARC)
18 2014 Kathmandu
19 2016 Islamabad (Got cancelled after Uri attack,
boycotted by India, Bhutan, Bangladesh &
Afghanistan)

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Many Failures of SAARC

India-Pak rivalry:
• Bilateral trade between India and Pakistan fell from $2.41 billion in 2018 to $1.2 billion in 2024.
• Pakistan's non-cooperation has stalled some major initiatives under SAARC. For example, despite
India’s keen interest in cooperating and strengthening intra-regional connectivity by backing the
SAARC–MVA during the 18th summit of SAARC (Kathmandu, 2014), the agreement was stalled
following Pakistan’s reluctance. The failure directly led to the emergence of the BBIN Motor Vehicles
Agreement (BBIN-MVA) in 2015.
• Similarly, the SAARC satellite (GSAT-9) project that India proposed was abandoned following
objection from Pakistan citing security concerns and opted out of it. The plan was to launch the satellite
by 2016 to serve all SAARC nations for telecom, meteorology, telemedicine, and disaster management.
The satellite was renamed “South Asia Satellite” & launched without the participation of Pakistan.
• Pakistan has accepted China's offer of building an economic corridor between Kashgar in China's
Xinjiang province and Gwadar, a Pakistani sea port on the Arabian Sea. Pakistan, on the other hand,
has been reluctant to clear India's request for transit of goods and passengers by road through Pakistani
territory to Afghanistan. Clearly, this move is not going to increase connectivity in the region.
• India withdrew MFN status for Pakistan in 2019, in the aftermath of Pulwama incident.
• India suspended the Indus Water Treaty after the recent Pahalgam attack in 2025.

“India-Pakistan rivalry crippled SAARC, and has constrained it in becoming a regional forum” – Ranil
Wikramsinghe, former Sri Lankan President & PM)

Cross-Border Terrorism:
• SAARC has effectively become moribund since its last summit in 2014, paralyzed by India–Pakistan
hostilities over cross-border terrorism.
• Cross-border terrorism emanating from Pakistan is a major concern for India, Pakistan has failed to
address these concerns.
• The recent Pahalgam attack in April, 2025 and Operation Sindoor, has further deepened regional
mistrust and dealt a blow to any hopes of reviving SAARC.
• 2016 – Pathankot air base attack & URI attack (India boycotted SAARC in Islamabad;
Bangladesh, Bhutan and Afghanistan followed suit. It was the first time that four countries
boycotted a SAARC summit, leading to its cancellation). India asserted that “terrorism and
dialogue cannot go hand in hand”.
• 2019 – Pulwama attack & Balakhot air strike
• 2025 – Pahalgam terror attack & Operation Sindoor

Indophobia:
• fear of India’s dominance & India’s rise is seen as a threat by these nations
• The asymmetry between India and other member countries in terms of geography, economy,
military strength and influence in the global arena make the smaller countries apprehensive. They
perceive India as “Big Brother” and fear that it might use the SAARC to pursue hegemony in the
region. The smaller neighbouring countries, therefore, have been reluctant to implement various
agreements under SAARC.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• India accounts for 80 per cent of the GDP of the region, and 75 per cent of the region’s total
population. Almost every nation in SAARC complains about the trade deficit with India.

Unequal Member Dynamics:

• India is the biggest player with an economic size of $4.1 trillion, the next two biggest economies are
Bangladesh with almost $450 billion and Pakistan with almost $410 billion.

Chinese Factor:
• All SAARC Countries are part of Chinese BRI except India & Bhutan
• China-Pak Nexus (Iron Brother) – CPEC partnership
• China's trade volumes with India's South Asian neighbours are larger than India's trade with
them. China is also financing major South Asian infrastructure projects in the region. Ex: CPEC,
Hambantota, etc. in the region.
• China, is already an “Observer State” in SAARC and in the 2014, Kathmandu summit, there was
pressure to include China in SAARC. China has promised SAARC nations part of a $40-billion Silk
Road Fund to finance infrastructure investments. China also promised an increase in trade between
China and South Asia to $150 billion in the next five years.
• According to experts, India is not prepared nor willing to open its strategic space in the South Asian
region to Chinese presence and influence.

World Bank estimates place Chinese lending to South Asia at roughly 48 billion USD (since the launch of
BRI in 2013). With the exception of India and Bhutan, every country in the region has formally joined
the BRI. China has also emerged as the largest trading partner for most South Asian states, with total
trade approaching 200 billion USD in 2024.
Economic engagement has been accompanied by deeper institutional penetration. Through arms exports and
concessional loans tied to defence procurement, China has embedded itself within both civilian and military
establishments, particularly in fiscally stressed or security-dependent states. Infrastructure, trade, and defence
have thus functioned as mutually reinforcing instruments of influence.

Other Issues:
• Most SAARC countries are in conflict with each other, preventing effective regional integration.
• Political diversity, regional disputes, minority issues and terrorism are major obstacles to regional
cooperation.
• Good fences make good neighbors (Border issues with Pakistan, Nepal, Sri lanka)
• Border disputes among South Asian nations significantly hamper trade and economic cooperation.
Ex: India and Nepal and the mutual contestation over Lipulekh, Kalapani and Limpiyadhura, Kashmir
issue between India and Pakistan, etc.
• Water Disputes among South Asian nations. Ex: India and Bangladesh over Teesta Water Agreement
& India and Pakistan over Indus Water Treaty.
• Unanimity rule (every country must attend the meeting, if anybody absent then the meeting will be
cancelled)
• Given SAARC’s failures, member countries have turned to bilateralism, which in turn has adversely
affected the organisation. Bilateralism is an easier option since it calls for dealings between only two
countries, whereas SAARC—at a regional level—requires one country to deal with seven countries.
Thus, bilateralism decreases the countries’ dependence on SAARC to achieve their objectives,
making them less interested in pursuing initiatives at a regional level.
• SAARC faces a shortage of resources, and countries have been reluctant to increase their contributions.
• SAARC does not have any arrangement for resolving disputes or mediating conflicts. Disputes among
the member countries often hamper consensus building, thus slowing down the decision-making
process. SAARC’s inability in this regard has been detrimental to its growth.
• India preferring alternatives like BBIN & BIMSTEC.
• While SAARC has established itself as a regional forum, it has failed to attain its
objectives of promoting the welfare of the people; accelerating economic growth, social progress and
culture development; and strengthening collective self-reliance.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Way forward:
• To make SAARC more effective, the organisation must be reformed and member countries must reach
a consensus regarding the changes required. However, considering the differences that exist among the
members, particularly between India and Pakistan, such a consensus will be difficult to reach. Until
the member countries resolve their issues, the future of SAARC remains uncertain.
• Reviving SAARC with confidence-building measures, separating trade from political tensions.
• Promote cross-border infrastructure, digital trade, and mutual recognition agreements (MRAs) to
reduce non-tariff barriers.
• India must adopt a cooperative, not coercive, leadership style — echoing “neighborhood
first” policy.
• Leverage BIMSTEC and BBIN frameworks for subregional progress while keeping SAARC viable.

Issues preventing the revival of SAARC:

• The Anti-Pakistan rhetoric.
• The ‘Bangladeshi migrant crisis (Indian borders & also Rohingyas Issue).
• The meaning of the economic vision of atma nirbharta (self-reliance) and ‘vocal for local’ is unclear
if it is signalling import substitution & protectionism. If it is the case India may not be interested in
deepening South Asian economic integration.

“SAARC has to decide on two issues — cross-border terrorism and areas in which we can work together. If
we don’t do it, there is no future for SAARC” – Ranil Wikramsinghe, Sri Lankan PM)

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

SAFTA
It has launched the South Asia Free Trade Agreement (SAFTA) in 2006 to reduce custom duties on all traded
goods to zero by the year 2016. The agreement came into force in 2006, succeeding the 1993 SAARC
Preferential Trading Arrangement (PTA). SAFTA presupposes abolition of all kinds of trade and tariff
restrictions. Ultimately it will pave the way for the creation of common market with common currency. The
SAFTA agreement allows any states to pull out of the treaty at any time.

The basic principles regarding SAFTA are as follows:

1. Reciprocity and mutuality of advantages in order to benefit equally by considering the level of
economic trade, industrial development and trade and tariff systems
2. Negotiation of tariff reform which will be implemented in successive stages through periodic reviews.
3. Recognition of the special needs of the Least Developed countries and agreement on concrete
preferential measures in their favour
4. Inclusion of all products, manufactures and commodities in their raw forms

SAARC – Least Economic Integrated region:

• In spite of trade liberalisation under SAFTA, intraregional trade in South Asia is less than a third
of its potential. Bangladesh has the highest unexploited proportion, at 93%, followed by the Maldives
(88%), Pakistan (86%), Afghanistan (83%), and Nepal (76%).
• The South Asian region is one of the least economically integrated regions in the world.
Intraregional trade of South Asia (South Asian Free Trade Area or SAFTA) accounts for barely
5% to 7% of its total international trade, which is the lowest when compared to other trading blocs.
In contrast, intraregional trade accounts for approximately 45% of total international trade within
the European Union (EU), 22% within the Association of Southeast Asian Nations (ASEAN), and
around 25% within North American Free Trade Agreement (NAFTA).
• According to the World Bank, trade in South Asia stands at just $23 billion of an estimated value
of at least $67 billion.
• According to a United Nations Economic and Social Commission for Asia and the Pacific
(UNESCAP) study, South Asia’s potential trade could have reached $172 billion by 2020, which
means over 86% of its capacity remains unexploited.
• It is about 20% more costly for a company in India to trade with Pakistan than with Brazil, which
is 22 times farther away.
• Despite great distance the trade cost is only 109% with USA.
• Costs of trading within South Asia remain high at 114% of the value of the goods being exported,
making trading with neighbouring nations more expensive or less competitive, compared to trading
with distant partners. In contrast, intraregional trade costs for ASEAN are some 40% lower than
intra-SAARC trade costs, at 76%, creating high incentives for interdependence in that bloc.
• South Asia, the most populous region of the world (25% of the world’s population), represents a
combined market of only $5 trillion in GDP. On the other side, the EU, with 5.8% of the world’s
population, accounts for $18 trillion in GDP, and NAFTA has a GDP of $24.8 trillion. This clearly
shows the underexploited capacity of the South Asian region.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Why is SAFTA a Failure:
• While South Asian countries have signed trade treaties, the lack of political will and trust deficit has
prevented any meaningful movement.
• Intra-regional trade (just 4-5%) – All countries complain they have trade deficit with India;
• Economic Asymmetry: India accounts for 80 per cent of the GDP of the region, and 75 per cent
of the region’s total population. Almost every nation in SAARC complains about the trade deficit with
India.
• Externally they are competitors with Similar Export Profiles – Internationally they sell the same
products. Ex: 1) Bangladesh and India competing for the textile, leather and footwear market in
USA; 2) India and Pakistan both export Basmati Rice and compete for market in EU & Middle East;
3) India (Darjeeling Tea) and Sri Lanka (Ceylon Tea) both export Tea and compete for market in EU
& Middle East.
• Many SAARC nations export similar primary goods (e.g., textiles, agriculture), leading to limited
complementarity. Ex: Textiles, Jute, Leather, Footwear, Agriculture (Rice, Tea, etc.)
• Despite SAFTA, trading with neighbours is not ‘free’. The inefficient trade governing mechanism
and an unpromising political environment increase the cost of intraregional trade, which is one of
the major reasons for significantly smaller intra-regional trade.
• Acc. to World Bank, the Border challenges mean it is about 20% cheaper for a company in India
to trade with Brazil instead of a neighboring South Asian country. Other constraints include
protective tariffs, real and perceived nontariff barriers, restrictions on investments, and a broad
trust deficit throughout the region.
• According to the World Bank, the reasons for the low level of trade include protectionist trade
regimes that discriminate against trade among larger nations, continued conflict between India
and Pakistan, and transport and trade facilitation constraints.
• Besides, over two-thirds of the potential of intra-regional trade in goods, the potential of trade in
services, and investments in South Asia remain untapped.
• SAARC had the aim of ending distrust and tension, but trust deficits and regional conflicts hinder
the full implementation of agreements such as SAFTA.
• Poor Connectivity: Lack of cross-border infrastructure, rail/road links, and logistical bottlenecks.
Trade has been limited by several factors such as inadequate road, marine, and air transport.

Poor Border Logistics:

1. Slow customs clearance – Too much paperwork, Manual checking, Lack of digitisation
2. Poor physical infrastructure – Narrow roads, No proper warehouses, No cold storage and No
container handling facilities. Ex: Trucks stranded at India-Nepal border due to slow security checks,
Traffic & congestion, etc.

• Political Tensions: Frequent India–Pakistan conflicts, border issues, and lack of trust disrupt regional
cooperation.
• Informal & Illegal trade: Informal trade happens between India and Pakistan via UAE and
Singapore, which increases the final cost.
• Lack of Trade Facilitation: Poor customs harmonisation, digital infrastructure, and payment systems
across borders.
• NTBs (Non-Tariff Barriers): Despite tariff reductions under SAFTA, countries impose stringent
standards, certifications, and quotas. It involves Complex customs procedures, Quality
certification requirements, Import restrictions etc.
• SAARC Investment Treaty, officially titled: “Agreement for Promotion and Protection of
Investment among the Member States of SAARC” or SAPPI signed in 2007 by member countries
but has not been fully operationalized due to lack of ratification and political hurdles — mainly
India–Pakistan tensions. Very limited intra-SAARC investment despite the treaty.
• SAFTA Sensitive List: It comprises products excluded from tariff concessions under the South
Asian Free Trade Area (SAFTA) agreement to protect domestic industries. India’s sensitive list
includes Textiles & Agriculture, while Pakistan sensitive list includes Automobiles & Chemicals. This
restricts free trade.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Inadequate or Lack Of Value Chains – The high cost of trade discourages the formation of regional
value chains despite the geographic contiguity.

According to the UN Conference on Trade and Development (UNCTAD), intra-ASEAN investments

constitute around 19% of the total investments in the region. The SAARC region can likewise benefit from
higher intra-SAARC investment flows. There’s a need to resuscitate the negotiations on a SAARC
investment treaty, pending since 2007.
India should take the lead and work with its neighbours to slash the tariff and non-tariff barriers.

Misuse of the SAFTA:

• Traders use the SAFTA to reroute palm oil through Nepal into India. This will help Malaysia
reroute palm oil through Nepal to offset Indian government's move to stop imports of Malaysian
palm oil after Prime Minister Mahathir Mohamad's stand against the abrogation of special status to
Kashmir.
• The palm oil being imported from Nepal is of Indonesian and Malaysian origin and soybean oil is
of South American origin, routed through Nepal for getting the duty exemption for such imports.
• The re-routing (exports from Nepal after it imports from elsewhere) is leading to a monthly
government revenue loss of Rs50 crore ($7 million) and also hurting refiners in the north-eastern parts
of India.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Myanmar
India-Myanmar relations are rooted in shared historical, ethnic, cultural and religious ties. As the land of Lord
Buddha, India is a country of pilgrimage for the people of Myanmar. India and Myanmar relations have stood
the test of time.

1937 – Myanmar (formerly Burma) was made a province of British India by British rulers and again separated
in 1937.
1948 – India established diplomatic relations after Myanmar's independence from Britain.
1951 – India and Myanmar signed a Treaty of Friendship in 1951.
1962 – Bilateral ties however deteriorated after the overthrow of Democracy in Myanmar in 1962 as India
condemned the military coup.
1970 – A bilateral Trade Agreement was signed.
1987 – The visit of the Prime Minister Rajiv Gandhi in laid the foundations for a stronger relationship between
India and Myanmar.
1994 – The bilateral border trade agreement of 1994 provides for border trade to be carried out from three
designated border points, one each in Manipur, Mizoram and Nagaland.
2001 – India and Myanmar inaugurated 250 kilometre Tamu-Kalewa-Kalemyo highway, popularly called the
Indo-Myanmar Friendship Road, built mainly by the Indian Army's Border Roads Organisation (BRO) and
aimed to provide a major strategic and commercial transport route connecting North-East India, and South
Asia as a whole, to Southeast Asia.
2008 – A Bilateral Investment Promotion Agreement (BIPA) and a Double Taxation Avoidance Agreement
(DTAA) were signed.
2015 – the Indian Army had carried out an operation in areas near the Indo-Myanmar against the NSCN (K)
militants, days after the they had killed 18 Army men in Manipur.
2018 – Bilateral Land Border Crossing Agreement allows free movement of the local people within 16 km of
the respective border with a border pass is allowed. It enables a better access to the Burmese people from
across the border to India’s healthcare infrastructure, among other facilities.
2021 Coup: Renewed instability and challenges in relations due to Myanmar's military takeover.

Geography:
• Arakan Mountains, of Eastern Himalayas (Purvanchal) form the border between Manipur, India in
the north and Rakhine State of Myanmar.

Geo-Strategic & Security significance of Myanmar to India:

• India shares a long land border of over 1643kms with Myanmar as well as a maritime boundary in the
Bay of Bengal. Four north-eastern states, viz., Arunachal Pradesh, Nagaland, Manipur and
Mizoram, have a boundary with Myanmar.
• Myanmar, is also central to India’s strategic North-East considerations.
• Myanmar is also key for countering the militants in the North-east that often transgress the borders,
particularly the Naga militants, ULFA of Assam. Myanmar has given assurance that it would not
allow any insurgent group to use its territory against India.
• Myanmar is the only ASEAN country adjoining India and, therefore, our gateway to South East Asia.
• Myanmar is only country that sits at the intersection of India’s “Act East Policy” & “Neighborhood
First Policy”.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Trade:
India is the fifth-largest trading partner of Myanmar. The bilateral trade stands at US$2.1 billion in 2024-25
which includes India’s export of over US$614 million and import from Myanmar of around US$1533 million
(MEA). India-Myanmar bilateral trade is conducted under ASEAN-India Trade in Goods Agreement
(AITIGA) and India’s Duty- Free Tariff Preference (DFTP) scheme.

As per Govt. of Myanmar’s statistics, India is presently the eleventh largest investor with an approved
investment of US$782.821 million by 39 Indian enterprises, out of the total estimated investments of US$
96.05 billion from 53 countries (as on 31 March 2025).

Defence:
The two neighbours also conducted joint Army exercises called IMBAX since 2017 and are conducting joint
maritime patrols since 2013. Indian and Myanmar troops carried out jointly Operation
Sunrise and Operation Sunrise 2 in 2019 in their respective territories to destroy several insurgent camps.

Myanmar accounted for 50% of arms exported from India (SIPRI, 2022). In order to boost its naval power, in
2020, India gifted the Myanmar navy its first ever submarine, a kilo class (INS Sindhuvir) attack submarine
which has been refurbished and modernised by Hindustan Shipyard Limited. In 2021, Myanmar also received
a remote-controlled, air-defence station from India, which would improve its capability to counter the enemy's
airborne penetration.

Energy:
With investments of over USD 1.2 billion, Myanmar has the highest Indian investment in any country in South
Asia. India also approved an investment of over USD 120 million in the Shwe Oil and Gas project.

Infrastructure & Development Cooperation:

India's development assistance portfolio in Myanmar is now over US $1.75 billion. The bulk of this assistance
is grant-funded. A Line of Credit for US $ 500 million is available to Myanmar for undertaking various
projects.

The projects in which India has been involved in Myanmar include the (i) Kaladan Multimodal Transit
Transport Project which is being viewed as India’s gateway to Southeast Asia. This project would not only
link India’s north east to the southeast region, but also allow for goods to be transported from Kolkata to
Sittwe and then onwards by river and roads to Mizoram. (ii) the India-Myanmar-Thailand Trilateral
Highway Project, which is an East-West corridor connecting our Northeast with Myanmar and Thailand; (iii)
India and Myanmar are working towards operationalising the Sittwe Port at Paletwa which is part of the
Kaladan multi-modal transit transport project and (iv) Rakhine State Development Programme; etc. In
September 2022, India and Myanmar signed a Project Agreement for Construction of a Modern Integrated
Checkpost at Tamu in Myanmar.

Kaladan Multimodal Transit Transport Project (KMTTP): The project connecting the eastern Indian
seaport of Kolkata with Sittwe seaport in Rakhine State, Myanmar by sea. In Myanmar, it will then link Sittwe
seaport to Paletwa in Chin State via the Kaladan river boat route, and then from Paletwa by road to Mizoram
state in Northeast India

Transporting goods to and from northeast India via the narrow Siliguri corridor is an expensive affair, and in
a worst case scenario with China, there is a possibility of movement along the corridor being adversely
affected. Therefore, the Kaladan project was conceptualised as an alternative route that gives northeast India
access to the sea.

Assistance during Disasters:

In response to the 7.7 magnitude earthquake which struck Myanmar on 28 March 2025, India launched
"Operation Brahma" to provide immediate support to the affected people of Myanmar. India also launched
“Operation Sadbhav”, to provide emergency relief to Southeast Asian countries (like Myanmar, Laos,
Vietnam) devastated by severe floods and landslides from Typhoon Yagi.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India has responded promptly and effectively to assist Myanmar in humanitarian relief operations following
natural calamities like Cyclone Mora (2017), Komen (2015), earthquake in Shan State (2010), cyclone
Nargis in 2008 and the recent outbreak of Influenza virus in July-August 2017, when we are providing
vaccine, medicines, reagent kits and masks. We provided immediate relief material through INS Gharial:
clothing, tents, rehabilitation supplies medical assistance, among others during cyclone Mora. During Cyclone
Komen, biomass gasifiers, solar torches & lanterns were provided and 16 damaged transformers were repaired.
A grant of USD 200,000 to repair the Shwedagon Pagoda complex in Yangon was provided during cyclone
Nargis. US$200,000 cash was donated for Rakhine State rehabilitation. India provided assistance of US$ 1
million which was used to construct 10 schools in Rakhine State. We have offered to provide support in
capacity building in disaster risk mitigation as well as in strengthening Myanmar's National Disaster Response
Mechanism.

Assistance during CoVID-19:

• India has decided to provide debt service relief under the G-20 Debt Service Suspension Initiative to
help Myanmar lower the negative impacts of Covid-19.
• India granted 1.7 million Covid-19 vaccines to Myanmar in the months of January and February of
2021.
• India’s union budget 2022 has allocated Rs 600 crore ($80 million) to the crisis-hit Myanmar which is
under heavy economic pressure due to the COVID-19 measures and last February’s military coup.

International Cooperation:
• ASEAN
• BIMSTEC
• Mekong Ganga Cooperation (MGC)
• SAARC: Myanmar was given the status of observer in SAARC in August 2008.

People-to-people ties:
The origin of the Indian community in Myanmar is traced to the mid-19th century with the advent of the
British rule in Lower Burma in 1852. There are an estimated 1.5-2.5 million people of Indian origin living and
working in various parts of Myanmar.

Myanmar is a beneficiary of training programmes and scholarships under ITEC, Colombo Plan, schemes.
India has been building roads and bridges, schools, and healthcare centres in Myanmar under the India-
Myanmar Border Area Development Programme. India has been assisting Myanmar in developing border
areas under an agreement inked in 2012 that provided for granting USD 5 million each year over a period of
five years.

Border issues:
• Human trafficking
• Drug trafficking (Golden triangle – Myanmar, Laos, Thailand).
• NSCN has an active presence on both sides of the border.
• Rohingyas issue, poses a humanitarian and security challenge for India.
• India has reportedly absorbed around 50,000 refugees from Myanmar since the beginning of the
military coup, which include ethnicities like the Chins, Kachins and Karens.
• Human Rights Concerns: India faces international pressure to take a stronger stand on human rights
issues in Myanmar, especially concerning the Rohingya community. Balancing its strategic interests
with global human rights expectations remains a challenge.

China Factor:
• China-Myanmar Economic Corridor (CMEC) is a number of infrastructure (oil and gas pipelines)
projects supporting connectivity between Myanmar and China.
• It is an economic corridor of the Belt and Road Initiative (BRI).
• China reportedly has been a key source of foreign investment in Myanmar.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• China’s multiple projects include several high-speed railway lines and dams as well as a $2.5 billion
investment in a gas-fired power plant to be developed west of Yangon, with three Chinese companies
owning 81% of the project and the remainder being held by Myanmar’s Supreme Group of Companies.
• Of particular interest to China is the deep sea port that China plans to develop at Kyaukphyu, on
Myanmar’s west coast, budgeted at around $7 billion. This will possibly give China better access to
the Indian Ocean, which China has been eyeing for a while.

Pakistan Factor:
• Additionally, the budding relationship between Myanmar and Pakistan is also of some concern to
India.
• Myanmar reportedly took the delivery of six JF-17 light-weight multi-role fighter jets from Pakistan
in 2018 after signing a contract two years earlier in 2016.
• Reportedly, Pakistani military officers had traveled to Yangon in September 2021.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-Russia:
History:
1947 – the governments of the USSR and India announced their decision to establish official missions in Delhi
and Moscow.
• Western aid came with conditions (PL-480); while Russian aid included steel plants, energy assistance,
economic support, and political backing.
• Indo-Soviet cooperation began in the 1950s with steel plants, large infrastructure including dams and
nuclear plants, and cooperation in space, but the most enduring has been the defense equipment
purchases by India.

Bhilai Steel Plant (Chhattisgarh) – built with Soviet assistance

• Became one of India’s largest steel producers.
• Helped India reduce dependence on Western steel imports.

Bokaro Steel Plant (Jharkhand) – built with Soviet technology

• Second largest steel plant in India after Bhilai 3rd largest in Asia in terms of area.

1955 - Soviet Union supported India over the disputed territory of the Kashmir region and over Portuguese
coastal enclaves such as Goa.
1962 - The Soviet Union declared its neutrality during the Sino-Indian war, although the Chinese strongly
objected.
1971 – India signed Treaty of Peace, Friendship and Cooperation.
• Bangla war (Russia vetoed 3 resolutions against India) – US Naval forces shielded India from US
blackmail
1975 - Russian spacecraft launched Aryabhata, India's first satellite.
1984 - The only Indian to visit space, Rakesh Sharma, was also launched by the Soviet Union.
2000 – Both signed “Declaration on the India-Russia Strategic Partnership” and Annual Summits between
the Prime Minister of India and the President of Russia.
2010 - the Strategic Partnership was elevated to the level of a “Special and Privileged Strategic Partnership”.
2017 - marks the 70 years to India-Russia bilateral ties
2018 – Sochi Informal Summit
2021- Russia's highest state decoration Order of St Andrew conferred on Indian PM Modi
2021 – Putin’s visit to India to attend the Annual Summit.
• A new format called the “2+2 Dialogue” was added, where both Foreign and Defence Ministers
meet simultaneously. This was done alongside; the summit level talks between the Prime Minister of
India and the President of Russia.
2023 – India had hoped that President Putin would visit the country in 2023 during India’s G20 presidency.
However, at the summit in New Delhi, Russia was represented by Lavrov.

2025 – Putin’s first state visit to India since the Ukraine war began. Attends the 23rd Annual Summit.
• India was represented at Russia’s 80th Victory Day celebrations on 9 May 2025 by Minister of State
for Defence, Shri Sanjay Seth.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

“An old friend is better than two new friends” – Modi

“Even a child in India, if asked to say who is India’s best friend, will reply it is Russia because Russia has
been with India in times of crisis.” – Modi
Change is common phenomenon in the world. A lot has changed and is still changing, but the friendship
between India and Russia has never changed. India and Russia both share a time-tested relationship that is
built on trust and cooperation.
Mahatma Gandhi-Leo Tolstoy friendship pre-dates India-Russia bilateral ties. Russia is an all-weather friend
of India. From 1971 Indo-Pak war to the recent Gaganyaan project Russia has been a reliable partner for
India.

“The Russia-India relationship is, the envy of many. It shows how to maintain stability amid turbulent change” – Fyodor
Lukyanov, Russian expert in the field of international relations and foreign affairs

Strategic autonomy:
• The general perception that India is inching towards the Western fold is not backed by the reality on the ground.
• India has remained officially neutral on the Ukraine conflict, but has been visibly inclined towards Russia.
• Despite the threat of Washington’s Countering America’s Adversaries Through Sanctions Act (CAATSA),
India went ahead with the S-400 deal with Russia.
• Despite Western sanctions and tacit pressure, India stepped up petroleum purchase from Russia and
continued rupee-based trade.

Defence:
• Russia and India have partnered in the defense sector since the early 1960s.
• In the year 2018 alone, India has contracted defense deals worth about $14.5 billion from Russia.
• Both jointly produced:
1. the AK-203 rifles,
2. Kamov-226 helicopters
3. Brahmos Supersonic Cruise missiles
4. T-90 Tanks
5. MiG-21, Sukhoi aircrafts
6. Fifth Generation Fighter Aircraft (FGFA) and
7. Multirole Transport Aircraft (MTA)

• Both countries follow a special 10-year agreement that guides all their military and defence technology
cooperation. The military-technical cooperation agreement for 2021–2031 inked on 6 December 2021 in
New Delhi, focuses on joint research, development, production, and after-sales support of weapons and
military equipment.
• Russia is also an important source for the supply of defense equipment, engines, spare parts and
components.
• Annual Bilateral Naval Exercise INDRA between Indian and Russian navies was conducted
regularly. A contingent of 65 Indian Armed Forces personnel from the Army, Air Force, and Navy,
took part in Zapad-2025 military exercise in Russia.
• India and Russia recently formalized the Reciprocal Exchange of Logistics Support
(RELOS) agreement (sometimes called ARLS/ Agreement on Reciprocal Logistics Support),
allowing their militaries mutual access to each other's bases, ports, and airfields for refueling,
repairs, and supplies, significantly boosting India's operational reach in the Indo-Pacific and Arctic.
• According to Stockholm International Peace Research Institute (SIPRI), India was the top importer of
Russian arms from 2017 to 2021, and Russian equipment made up 46% of India’s arms imports.
Although the imports declined from that of 80% figure during the Cold War era, it is still huge.

Shift to Joint R&D and Production:

The defense cooperation evolved beyond a mere buyer-seller dynamic to include joint research, development, and
co-production of advanced systems. Following are some of the weapon systems:

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• BrahMos Missile – BrahMos Cruise Missile system jointly developed by India’s DRDO and Russia's NPO
Mashinostroyeniya (NPOM), recently exported to other countries.
• Sukhoi Su-30MKI – Licensed production by HAL in India.
• T-90 Tanks – Licensed production of the T-90S Bhishma main battle tanks in India (Russian-made tanks
constitute the backbone of the Indian Army).
• AK-203 Assault Rifles – Production by the Indo-Russia Rifles Private Limited (IRRPL) joint venture in UP,
India, under the "Make in India" initiative.
• S-400 Triumf – Procurement of the advanced long-range surface-to-air missile defense system (SAM) by India.
This is not jointly produced but procured. India procured S-400 missile defence system, ignoring
America's CAATSA threat. S-400 proved to be a game changer for India during the recent Operation
Sindoor.
• INS Vikramaditya – Refurbishment and transfer of the former Russian aircraft carrier Admiral
Gorshkov to the Indian Navy. A majority of India's conventional and nuclear-powered submarines are of
Russian origin.
• India also procured INS Chakra, Mil Mi-17 helicopters from Russia.

Other aspects related to “Defense”:

• India is expected to push Russia for faster delivery of two further S-400 surface-to-air missile
systems, after receiving three under a 2018 deal worth about $5.4 billion. The delay has been tied to
supply chain disruptions linked to the war in Ukraine.
• Indian authorities are also likely to explore the possibility of acquiring additional S-400 units or an
upgraded variant, though no contract or announcement is expected. Indian defense planners say the
S-400 proved effective during a brief military standoff with Pakistan in May.
• Talks are also expected on upgrading India’s Russian-made Su-30MKI fighter jets and
accelerating deliveries of critical military hardware, as well as improving coordination on joint
exercises and disaster relief.
• Despite India diversifying its procurement of military hardware over the last few years, Russia
continues to be its biggest supplier. Moscow is keen on selling its stealth fighter jet Su-57 to India,
and S-500 air-defence systems (S-500 Prometheus—its far superior successor. Offering 600-km range,
near-space intercept capability and defence against hypersonic weapons).
• Russia pushing RELOS (Reciprocal exchange of Logistics agreement) of ratification to deepen
logistics cooperation. The pact could enable shared bases, refuelling & restocking supplies,
repairs, and Arctic energy cooperation while expanding Russian reach in the Indian Ocean. It also
allows military exercises and disaster relief.
• India aims to balance longstanding ties with strategic diversification.
• Beyond Su-57 collaboration, pending S-400 deliveries and additional contracts, discussions on
possible S-500 cooperation, expansion of joint production of Su-30MKI aircraft and T-90 tanks,
and upgrades to the BrahMos missile program will be discussed. It could mean the beginning of a new
era of co-development rather than a traditional buyer-seller arrangement.

“India’s defence cooperation with Russia is a long-standing one and the nation doesn’t intend to stop anytime
soon” – Rajesh Kumar Singh, Defence Secretary

Trade & Economy:

• Russia in FY 2025 is India’s 4th largest trade partner (after USA, China and UAE).
• Bilateral trade has grown rapidly and reached a record $69billion in FY 2024-25, with Indian exports at $5
billion (mainly pharmaceuticals, chemicals, iron & steel, and marine products) and imports from Russia
at $64 billion (primarily crude oil and petroleum products, sunflower oil, fertilizers, coking coal, and
precious stones/metals).
• The trade deficit widening more than twentyfold — from $2.8 billion in FY21 to $59billion in FY25.
• It emphasized the early conclusion of the India–Eurasian Economic Union FTA, whose terms of reference
were finalized.
• Both countries are working towards ambitious targets set by their leaders: $50 billion in mutual investments
by 2025 and $100 billion in annual bilateral trade by 2030.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Bilateral trade in services has remained stable during the last few years. It amounted to $1.021 billion for the
year 2021.
• India’s investments in Russia are estimated at USD 16 billion, mainly in oil and gas and pharmaceuticals.
Russian investments in India amount to around USD 20 billion, covering sectors such as petrochemicals, steel,
railways, banking and energy.
• India has created a “Russia Plus” system to support Russian investors and companies.

Energy cooperation:
• The U.S. has pressed India to halt purchases of discounted Russian oil, accusing India of helping fund Moscow’s
war effort. In August, Trump imposed a 50% tariff on Indian imports to increase pressure over the issue.
• India rejected the charge, saying it follows international sanctions and prioritizes its national interest and
energy security.
• India is the world's third largest consumer of crude oil and is the second largest consumer of crude oil from
Russia (after China). That wasn't always the case. Before the Kremlin's full-scale invasion of Ukraine, only
2.5% of India's oil imports were Russian. That figure jumped to 35% as India took advantage of Russian price
discounts prompted by sanctions against Moscow and Russia's restricted access to the European market.
• “If the U.S. has the right to buy our (nuclear) fuel, why shouldn't India have the same privilege?” –
Vladimir Putin
• Vladimir Putin declared that Russia will remain a steady, uninterrupted supplier for the country's fast-
growing economy.

India & Russia-Ukraine War:

• Russian Invasion since 2022 – India has maintained a neutral position.
• Abstaining from all the resolutions at the UN that dealt with the conflict and were critical of Russia.
• India ignored western sanctions (Oil Imports & Defence hardware from Russia).
• India as “Vishwamitra” – friend of all
• India cautioned Russia to follow restraint & settle the issue through dialogue. “Today’s era is not an
era of war”, PM Modi said to Putin.

“India was not neutral in the Russia-Ukraine war. India has taken the side of peace” – PM Modi in Ukraine (underlined
India’s commitment towards respecting the sovereignty and territorial integrity of countries)
"India has substantive and independent ties with both Russia and Ukraine and these partnerships stand on their own,"
Tanmaya Lal, Secretary (West) at the Indian Ministry of External Affairs (MEA).
“it is our fundamental obligation to ensure that the Indian consumer has the best possible access on the most
advantageous terms to international markets," – EAM, Jaishankar

Nuclear Cooperation:
Email: csbiasacademy@[Link] 4 [Link]
 CSB IAS ACADEMY CONTACT NO: 9966436875

• India’s only nuclear power plant established with another country is in Kudankulam in Tamil Nadu which
established in collaboration with Russia.
• The Kudankulam plant is being developed with six VVER-1000 reactors, which will together have an installed
capacity of 6,000 MW. Russia's state-run nuclear corporation, Rosatom, has delivered the first consignment of
nuclear fuel for the initial loading of the third reactor at the Kudankulam nuclear power plant in Tamil Nadu.
• The first two reactors were connected to India's power grid in 2013 and 2016, respectively, and the remaining
four reactors are still under construction.
• The cargo, which was delivered via a flight operated by Rosatom's Nuclear Fuel Division, contains fuel
assemblies manufactured by the Novosibirsk Chemical Concentrates Plant. A total of seven flights from Russia
are scheduled to supply the entire reactor core, along with reserve fuel.
• This fuel supply is part of a contract signed in 2024, ensuring the delivery of fuel for both the third and fourth
VVER-1000 reactors at the Kudankulam plant throughout their operational lives.
• India is collaborating with Russia in establishing Roppur Nuclear Power Plant in Bangladesh.

Multilateral cooperation:
• India and Russia cooperate closely at several multilateral platforms such as the UN, G20, BRICS & SCO.
• Russia has consistently expressed support for India’s candidature for a permanent seat the UN Security
Council.
• Russia has been a long standing supporter of India’s membership of the Nuclear Suppliers Group (NSG).

Inter-regional cooperation:
• Connectivity with the Russian Far East and
• promote connectivity initiatives like the International North-South Transport Corridor (INSTC),
• the Chennai-Vladivostok Eastern Maritime Corridor and the Northern Sea Route.
• There is a synergy between Russia’s pivot to the East, its resources and technology and India’s own flagship
initiatives such as Atmanirbhar Bharat and Make in India.
• Russia supported India’s stance in Kashmir issue; in fact supported nullification of Article 370 & extended
solidarity in counter-terrorism
• India supported Russia’s stance in Syria

Ship building and North Sea Route:

• Russia has formally proposed a massive strategic partnership with India to jointly produce Arctic-class vessels
and icebreakers, marking a major shift in global maritime geopolitics.
• Russian Deputy PM, Denis Manturov’s proposal to move ice-class cargo ship production to Indian shipyards
like Mazagon Dock and L&T. This deal signifies a departure from Russia's reliance on European shipbuilders
and aims to integrate India into the hardware backbone of the Arctic economy.
• We dive deep into the Northern Sea Route (NSR), a commercial corridor (Kara Sea to Bering Strait)
challenging the dominance of the Suez Canal by offering a 40% shorter path between East Asia and
Northern Europe. With Western sanctions blocking Russia's access to technology and Chinese yards at
capacity, Moscow is turning to New Delhi for industrial depth.

Space Cooperation:
• India-Russia cooperation in the field of peaceful uses of outer space dates back to about four decades.
• Russia gave India access to its Global Navigation Satellite System (GLONASS), an alternative to GPS
• In 1984, Rakesh Sharma became the first Indian to travel to space aboard a Soviet Soyuz spacecraft.
• Shubhanshu Shukla, the first Indian astronaut to visit the International Space Station (ISS), underwent
an extensive training program with three others at the Yuri Gagarin Cosmonaut Training Center
near Moscow in 2020.
• Russia is also working with India on its upcoming human spaceflight mission, Gaganyaan.

Scope in Space cooperation:

• Russia and India plan to boost space cooperation significantly, the head of Roscosmos, the Russian space
agency, Dmitry Bakanov has said.
• “Fields for collaboration include engine building, rocket fuel, piloted spaceflight, and the development of
national orbital stations” – Dmitry Bakanov.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Cultural Cooperation:
• India’s Cultural festival in Russia ‘Namaste Russia’ is conducted annually.
• Indian languages such as Hindi, Tamil, Marathi, Gujarati, Bengali, Urdu, Sanskrit and Pali are taught in Russian
Institutions.
• There is strong interest among Russian people in Indian dance, music, yoga and Ayurveda.
• The bilateral initiative of Russia-India Network (RIN) of Universities.

People-to-People ties:
• There are about 20,000 Indian students in Russia studying in disciplines such as medicine, engineering,
economics, sciences and other subjects. Medical students comprise the largest group among Indian students
studying in Russia.
• Russia has been an active partner country for ITEC scholarship. In 2024-25 around 17 Russian nationals took
part in ITEC while in 2023-24, around 23 Russian nationals took the ITEC scholarship when compared to 100+
number during pre-Covid years.
• Indian Movies and Yoga has gained immense popularity, especially in major cities.

A few important steps/projects that could provide a major boost to

bilateral trade are:
• Operationalization of the ‘Green Corridor’ project - between the two countries for smooth facilitation
of goods
• International North-South Transport Corridor (INSTC), and Ashgabat agreement
• the signing of an FTA with EAEU (Eurasian Economic Union).
• India must Russia involve in ‘Make in India’ and seek its help in becoming a $5 trillion economy.
• India must also exploit the opportunities extended by the Far East region to make it as platform to
our Act East policy.

Issues:
• Trade is still not commensurate with the potential. For comparison, in 2023 Russia’s two-way trade
with China was over $240 billion while U.S. two-way trade with India in 2025 was around $130 billion.
• Indian exporters currently face multiple non-tariff barriers in Russia, including over 65 for marine
exports alone, along with several compliance hurdles for agricultural shipments.
• India is keen to increase exports of pharmaceuticals, agriculture and textiles to Russia and is seeking
the removal of non-tariff barriers. India is also seeking long-term supplies of fertilizers from Russia.
• Another key area where the two countries are working to finalize an agreement is the safe and
regulated migration of Indian skilled workers to Russia.
• It is a relation centred around Defence primarily, without cooperation in other areas.
• India has been recently diversifying its defence relations with US, Israel etc. Russia’s share of Indian
defence imports fell from 79% between 2008-2012 to 62% between 2013-2017.
• Pakistan-Russia relations Druzbha Joint-Military exercise & also sold Mi-35M fighters and cargo
helicopters to Pakistan. Russia in 2014 lifted arms embargo on Pakistan.
• China-Russia relations ($400 billion Gas deal etc.)
• Strengthening India-USA relations particularly in the Indo-Pacific (QUAD). India’s relationship with
USA must not come at the cost of all-weather friend Russia
• USA slowly replacing Russia as a major defence partner
• Russia has been highly critical of QUAD in sync with China calling it “Asian NATO”.
• Russia welcomes the One Belt One Road (OBOR) initiative of China and has stated its willingness to
engage in this joint activity.
• China’s cross-border investment in RFE (Russian Far East) accounts for 71% of the total direct foreign
investment of $33 billion.
• India remained silent during Russia’s Crimean annexation rather than supporting it; Russia is unhappy
with India’s silence.

Email: csbiasacademy@[Link] 6 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Issues with Russian Defence Technology:

1. Delayed execution/ delivery of projects
2. Sudden price escalation
3. Lack of technological upgradation (in comparison with Israel, France etc.)
4. Outdated equipment, refurbished & retrofitting: Russia is still selling Cold-war era equipment in Defence

Email: csbiasacademy@[Link] 7 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

AFRICA-INDIA
1893 – Pietermaritzburg Incident

1915 – return of Gandhi to India

1961 – NAM founded & Egypt, Ghana are founder members

• Currently every African country (except South Sudan and Western Sahara) is a member of the Non-
Aligned Movement.

1963 – Organisation of African Unity formed due to the efforts of Kwame Nkrumah

1994 – Mandela becomes President of South Africa

1997 - Indian Ocean Rim Association (IORA)

2002 – Emergence of African Union which subsumed OAU into it

2006 - India launched the Pan-African e-Network, the continent's largest tele-education and telemedicine
initiative. The network links 47 African countries with schools and hospitals in India through satellite and
fiber-optic links.

2008 –
• Indian Ocean Naval Symposium (IONS) launched i.e. series of biennial meetings
• First India–Africa Forum Summit held in New Delhi. Only 14 countries of Africa attended.

2011 - Second India–Africa Forum Summit held in Addis Ababa, Ethiopia.

2014 - India budgeted $63 million in aid to African countries.

2015 - Third India–Africa Forum Summit held in New Delhi.

• India pledged $10 billion, the largest LOC package for any region in the world.
• All the 54 African nations participated.

2015 – India signs MoUs to develop infrastructure on Agalega Island in Mauritius and Assumption Island
of Seychelles.

2018 –
• Prime Minister Modi’s announcement of opening of 18 new embassies in the African region.
• Seychelles parliament disapproves India’s interest in Assumptions island
• Gandhi’s statue removed in University of Ghana. Opponents of the statue in Ghana quoted several
of Gandhi’s early writings in which he referred to black South Africans as “kaffirs” – a highly offensive
racist slur – and “half-heathen natives”.

2019 - India grants financial support of $15 million for the African Union Summit, held in Niger.

2023 –

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• 2nd Voice of Global South Summit 2023
• African Union (AU) inducted into G20 Grouping at India’s G20 Summit.

2024 – PM Modi visited Nigeria (first visit by an Indian PM to Nigeria in 17 years)

2025 – PM Modi visited Mauritius, Ghana, Namibia, South Africa and Ethiopia.

Since the 1960s, India’s prime ministers have visited Africa 76 times, a level of engagement unmatched by
Africa’s other external partners. Between 2015 and 2022, New Delhi received over 100 African leaders.

“Africa First” remains the core lever of engagement for India’s goodwill and national interests to reap the
benefits we seek to garner.

“It is up to Asia to help Africa to the best of her ability because we are her sister continent” – Nehru

Africa is described by External Affairs Minister S. Jaishankar as the “land of the future”, in recognition of
Africa’s importance to India.

“India does not want this to be a donor-recipient relationship. We want this to be a relationship between two
partners” – Professor Harsh V. Pant

India’s partnership with Africa is demand-driven and free of conditionalities.

India has an intrinsic interest in helping Africa achieve progress. The spirit of “developing together as equals”
defines this bilateral partnership. A resurging Africa and a rising India can give a strong impetus to South-
South Cooperation.

“Africa will be India's top priority” – PM Modi (Kampala Principles in 2018)

Kampala Principles – 2018: Modi outlined the "Kampala Principles," a set of 10 guiding principles for
India's engagement with Africa.
1. Africa will be at the top of our priorities.
2. Our development partnership will be guided by your priorities.

Relations with Africa are premised on India as a nascent global power and a rising Africa that can fulfil India’s
dire energy needs and serve as a market for Indian products.

India represents one-sixth of humanity, and Africa represents more than a quarter of UN members.

Why Africa is critical for Indian Interests:

1. By 2050, one in four people on earth will be in Africa. India will be the world’s third largest economy.
Between these two lies a potential growth corridor of commerce, demography, technology and
aspiration.
2. Secure African support in India’s bid for a permanent membership on the UN Security Council
3. Work with African countries to restructure global financial and multilateral institutions to prioritize
the Global South
4. Partner with African countries to suppress terrorism and ensure freedom of movement in the Indian
Ocean
5. Secure India’s resource and energy security

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India–Africa Forum Summit (IAFS):

• The India–Africa Forum Summit (IAFS) is the official platform for the
African-Indian relations.
• India has pledged to support at the level of health and education related projects in Africa.
• IAFS will be held once in every three years. It was first held in 2008 in
New Delhi, India.
• 3rd IAFS summit was held in 2015 in New Delhi.
• 41 African heads of state or government who attended the Summit in 2015.
• At IAFS-III, India pledged $10 billion, the largest LOC package for any region in the world.
Enhancement of economic and development cooperation with Africa across the spectrum. First-ever
meeting of the African Development Bank in Ahmedabad in May 2017.
• IAFS-IV was slated to be held in 2020, but CoVID-19 eclipsed it.

TRADE:
• India-Africa trade has grown 18% annually since 2003, reaching $103 billion in 2023.
• India is Africa’s fourth-largest trading partner, with bilateral trade reaching nearly $100 billion
(after European Union, China & US).
• In FY24, India exported goods worth $38.17 billion to African countries — the key destinations
included Nigeria, South Africa and Tanzania. Petroleum products, engineering goods,
pharmaceuticals, rice and textiles were some of the major goods exported. In 2024, Africa’s imports
from India were around 6% of its total imports.
• India has already set a target of doubling its trade with Africa by 2030.
• India's position as a top five investor in the African continent, with cumulative investments from 1996-
2024, now exceeding US$75bn, and aims to increase to $150 billion by 2030. In fact, most Indian aid
is channelled through the African Development Bank (ADB), which New Delhi joined in 1983.
• India has extended concessional loans of over US$12bn and provided US$700m in grant assistance
for a diverse range of projects across Africa.
• The UPI and RuPay services are already estd. in Mauritius. Kenya, Namibia, Ghana and Mozambique
have shown interest in using the UPI.
• India’s Duty Free Tariff Preference (DFTP) Scheme for Least Developed Countries has benefitted
African nations and contributed towards steady increase in their trade figures by extending duty-free
access to 98.2 % of India’s total tariff lines.
• India enjoys observer status in the Common Market for Eastern and Southern Africa (COMESA),
Southern African Development Community (SADC), and the Economic Community of West African
States (ECOWAS).
• India’s company Airtel is a dominant Telecom firm in Africa.
• India’s Unified Payments Interface (UPI), he added, could help strengthen Africa’s financial systems
by reducing transaction costs.

Indian Automobile Dominance –

• Cumulatively, as of 2023, Bajaj and TVS now hold more than 50% of the two-wheeler market in
Africa, beating the likes of China and Japan. While Japanese motorcycles came with their high quality
parts, finish and build, they were too expensive for the African market.
• The super cheap Chinese motorcycles just couldn’t last in the challenging conditions of Africa, where
dust, no roads and poor fuel quality were the norms rather than exceptions. So, Chinese motorcycles
began breaking down, their ‘use and throw’ model, the Chinese hadn’t really thought of setting up
service centers.
• India went about not only selling sturdy, long lasting motorcycles but also setting up a reliable
after sales network that dispensed not only service but also spares.
• These motorcycles were customized for African conditions. The Chinese didn’t stand a chance
against such focused products from India, and the Japanese simply couldn’t compete with India in cost
terms.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• A key opportunity, lies in the automobile sector. Africa imports nearly USD 20 billion worth of
motor vehicles annually, of which India supplies only about USD 2 billion.

Election Commission of India (ECI):

India has played a crucial role in strengthening electoral mechanisms in various African countries. The
Election Commission of India (ECI) has signed MoUs with Election Management Bodies of four African
countries: South Africa, Libya, Cote d’Ivoire, and Mauritius.
• ECI also provides technical assistance to countries such as Egypt and Namibia.
• In 2014, Namibia became the first African country to use Electronic Voting Machines made in India.
• India also exports ‘voter’s ink’ to several African countries including South Africa, Burkina Faso,
Nigeria, Togo, Ghana, and Sierra Leone.

People-to-people relations –
• Africa has 3 million strong Indian diaspora (over a million in South Africa alone, forged crucial
political, economic, social ties). They are Africa’s largest non-native ethnicity.
• India has extended e-Visa facilities to 33 African countries.
• We have also expanded our diplomatic footprint in Africa with the opening of 16 new diplomatic
Missions, taking the total number of Indian Missions in the continent to 45.
• Since 2019, more than 15,000 youth from 22 African countries have been provided scholarships for
various degree and diploma courses.
• Currently some 25,000 Africans students are studying in 500 public and private universities across
India according to Association for African Students in India.
• India also established Indian educational institutions in Africa. The IIT Madras in in Zanzibar
(Tanzania), the National Forensic Science University in Uganda, the Entrepreneurship
Development Centres in Rwanda, etc.
• Through Indian Technical and Economic Cooperation (ITEC) programme, and Colombo Plan India
is committed to the development of Human resources in the region.
• India has been awarding thousands of scholarships to African nations under the ITEC and ICCR
programme. It has provided 50,000 scholarships since 2015, with more than 42,000 already utilized,
nurturing a new generation of leaders and innovators.
• Programs like the Pan-African e-Network and the Indian Technical and Economic Cooperation (ITEC)
program highlight India's commitment to knowledge-sharing.
• Through Pan African e-network (PAeN) India is providing Tele-Education and Tele-Medicine,
resource mapping, and e-governance services to Africa.
• India’s e-VidyaBharati and e-ArogyaBharati (e-VBAB) will establish two separate web-based portals
– one each for tele-education and tele-medicine.
• India has also become a major supplier of generic drugs to the continent.
• India under NAM & AFRICA Fund (Action for Resistance to Invasion, Colonialism, and Apartheid)
is also financially helping the African nations.
• India collaborated with Japan for the AAGC (Asia Africa Growth Corridor), to improve Africa
economically.

Indian Ocean & Maritime Security:

• In April 2025, India and nine African navies (Comoros, Djibouti, Kenya, Madagascar, Mauritius,
Mozambique, the Seychelles, South Africa and Tanzania) exercised together in the first Africa-India
Key Maritime Engagement (AIKEYME), initiating a security partnership and enhancing maritime
security cooperation.
• Western Indian Ocean (WIO) region which comprises 10 African nations is becoming more vital for
maritime partnership between India and the littoral countries of the African Indian Ocean Rim. The
WIO region remains vulnerable to radical terrorism and piracy.
• The Indian Ocean Rim Association (IORA) and Indian Ocean Naval Symposium (IONS) has
brought India closer to several African littoral states of the IOR.
• India intends to counter Chines presence through Project MAUSAM.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• India’s 2015 Maritime Strategy document declares our emphasized attention towards the countries in
the Western Indian Ocean region.
• According to estimates by the Ministry of Shipping, Indian imports through the Gulf of Aden were
valued at US$ 50 billion, and exports at US$ 60 billion.
• China’s quest for Indian Ocean military access and bases to surround India is described as “String of
Pearls”.
• China even acquired a military base from Djbouti, which is a part of Chinese BRI.
• "The phrase ‘necklace of diamonds’ was first mentioned by India’s former Foreign Secretary Lalit
Mansingh while speaking at a think tank in August 2011 on ‘India’s Regional Strategic Priorities’. He
had argued that “India is doing everything it is supposed to do in terms of protecting its interests. To
the doctrine of the String of Pearls, India has its own doctrine, the Necklace of Diamonds. Just as the
Chinese are building port facilities, we are tying up naval cooperation with almost all the major powers
of the Indian Ocean region.” Even though commentators often use ‘necklace of diamonds’ to describe
India’s strategic approach to counter China’s growing influence in the IOR, it has not found any
mention in the Government of India’s official discourse."

Defence:
• As per SIPRI, from 2018 to 2022, Russia makes up around 40% of the arms market, followed by US
(16%), China (9.8%), France (7.6%).
• India has been eying the African arms market amid a slowdown in Russian exports to the continent in
the wake of Ukraine war.
• India looking to export arms worth $5 billion by 2025 from the current $1.7 billion. Currently less
than 20% of India’s arms exports go to Africa.
• India has Defence Partnerships with Zambia, Nigeria, Ghana, Ethiopia, Botswana, Uganda,
Mozambique and Namibia.
• India has actively contributed to the efforts to maintain peace and security in Africa through its long
involvement in UN peacekeeping efforts.
• India's HAL (Hindustan Aeronautics Limited) has claimed that multiple African nations including
Nigeria and Egypt have expressed interest in the Tejas fighter jet.
• India and Nigeria signed a $1 Billion defence deal in September, 2023.
• India is also training African Military, AFINDEX (Africa-India Field Training Exercise), a joint
military exercise.

Para-Diplomacy:
• One of the new trends in this relationship has also been the role played by sub-national organisations
and State governments.
• For example, Kerala is planning on importing cashew from African countries for its processing plants
that are running low on raw material.
• Similarly, Ethiopia and South Africa are working with Kudumbashree, a self-help group movement
created by the Government of Kerala aimed at eradicating poverty and empowering women, to find
ways to localise and adapt the model in their respective countries.
• In 2025, Ethiopia appreaciated “Deendayal Antyodaya Yojana - National Rural Livelihoods
Mission (DAY-NRLM)”, India's flagship initiative for poverty alleviation and women's economic
empowerment.

Terrorism:
India and Africa both have been victims of and are susceptible to radical terrorism and religious extremism
from outfits such as Boko Haram, Al Shabaab, Jaamat al Dawa, and al-Qaeda, among others. To tackle
the scourge of terrorism and maintain peace and harmony India has provided training of African military
personnel.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Reintroduction of Cheetahs:
• African nations like Namibia and South Africa are key contributors for reviving the key specie in the
Indian forests.

South Africa:
• Both are members of BRICS, IBSA, IORA & G20.
• Both are supportive of reforms in UN Security Council (UNSC)
• South Africa remains India’s largest trading partner in the African continent.
• Bilateral trade between the two countries reached USD 19.25 billion in 2023-24.
• Indian businesses have invested over USD 1.3 billion in South Africa since April 2000, spanning
diverse sectors such as pharmaceuticals, information technology, automotive, banking, and mining.
• Indian Diaspora constitutes about 3% of South Africa’s total population.
• BAPS built the largest Hindu temple and cultural complex in the southern hemisphere was unveiled
in Johannesburg.

Nigeria:
• Both countries elevated the bilateral ties to a ‘Strategic Partnership’ in 2007.
• In 2023, India figured amongst the top 5 trading partners of Nigeria. The Bilateral trade was US$ 7.89
billion in 2023-24.
• It is known for its Crude Oil resources.

Rwanda:
• Modi’s historic visit in 2017 is the first ever visit by an Indian PM.
• In 2017, the two countries elevated their ties to a Strategic Partnership.
• Modi gifted 200 cows to a farm as a contribution to Rwanda’s Girinka Program (one cow per poor
family).

Mozambique –
• Mozambique has emerged as an important maritime partner for India.
• During ‘Cyclone Idai’ which hit the port city of Beira in 2019.
• Four Indian ships were immediately diverted from their course to render assistance and provide dry
provisions, epidemic-related medicines, clothes, and ready-to-eat meals.

Djibouti,
• always been hospitable to Indian naval ships transiting to and from the Mediterranean Sea.
• Djibouti was also crucial in ‘Operation Raahat’ in April 2015, during which Indian warships rescued
over 3,000 stranded citizens from war-torn Yemen.

Seychelles –
• India also gifted one Dornier Do-228 aircraft and two Chetak helicopters in 2010
• Conducts biennial army-to-army exercise called LAMITYE.

Madagascar:
• India has launched Operation Vanilla in Cyclone hit Madagascar through INS Airavat.

Issues / Challenges:
Pelindaba Treaty/ African Nuclear-Weapon-Free Zone Treaty (ANWFZT):
• It prohibits any nuclear trade, technology exchange between India & African nations since India is not
a signatory of NPT (Non-Proliferation Treaty), as the treaty only stipulates trade with those who signed
NPT.
• Namibia did not sell Uranium resources to India, since India did not sign NPT.
• Incidents of violent racism against African students have damaged India’s reputation as a country.

Email: csbiasacademy@[Link] 6 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• India should have a zero-tolerance policy for attacks on Africans in India.
• Some Indian companies in Africa have come under scrutiny for tax evasion, violating environmental
regulations and ignoring labour laws.
• The high-profile example of the Gupta brothers charged with allegations of “state capture” stemming
from their closeness to ex-president Zuma in South Africa.
• Karuturi Global, an Indian floriculture company accused of land grabs in Ethiopia.
• Currently, India’s investments in Africa are inflated by investments in Mauritius which are often done
with an intent to evade taxes.
• Multiple factors, including bureaucratic hurdles, political instability and financing costs act as barriers
for Indian firms to invest in Africa.
• Geopolitical challenges: Political Instability (rise of military coups) and maritime
insecurity (piracy and maritime terrorism in the Indian Ocean Region (IOR)) hinder investment and
long-term project viability.

The interactions between India and the African countries indicate a growing convergence of interests and
positions on a variety of global issues, ranging from jointly combating terrorism and piracy to close
coordination in global forums over UN reforms, climate change, the WTO negotiations and expansion of the
UN Security Council.

South-South Cooperation:
The ITEC programme, and Colombo Plan, is a visible symbol of India's role and contribution to South-
South cooperation. South-South Cooperation is a partnership born out of a shared sense of solidarity and is
entirely voluntary and free of conditionalities. India remains a staunch proponent and practitioner of South-
South Cooperation which constitutes a fundamental pillar of India's foreign policy and diplomacy.
• Indian efforts resulted in the inclusion of the African Union (AU) as a full member of the G20.

“I commend my brother PM Modi for his efforts in championing the place of Global South and specifically
the place of Africa in the Global Geopolitics. It is here in India that Africa got the opportunity to be a
permanent member of the G20 and we believe that positioning is not only going to bring voice but African
perspective into the conversation” – William Ruto, President of Kenya

“India makes the following argument: we want to be part of your developmental journey, but we do not want
this to be a donor-recipient relationship. We want this to be a relationship between two partners and to build
greater capacity and resilience across African countries” – Professor Harsh Pant

Other areas of Cooperation:

• India sources approximately 15% of its Oil from Africa (Nigeria & others).
• As part of the International Solar Alliance, the Government of India has benchmarked $2 billion for
solar projects in Africa.
• Today, “over 6,000 Indians currently serve in five UN peacekeeping missions in Africa wearing blue
helmets working to ensure a future of peace for Africans.”

China & Africa ties:

• China remains Africa's largest economic partner, with trade volumes surpassing $200 billion
annually ($282 in 2023).
• Chinese arms sales to African nations have also grown, positioning it as a key security partner for
several countries.
• Acc. to Boston University Global Development Policy Center, Chinese loans to African governments
and regional institutions between 2000-2022 stands around $170 billion. Chinese lenders account for
12% of Africa’s Public and Private debt.

Email: csbiasacademy@[Link] 7 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Around 21% of imports to Africa in 2024 came from China. Interestingly around 33% of imports from
China fell under the HSN 84 and 85 product categories, demonstrating China’s industrial prowess.
These product categories comprise machinery, boilers, electrical machinery, and semiconductor
devices.

China & India’s approach towards AFRICA:

China has emerged as Africa's largest economic partner, with two-way trade worth $254 billion in 2021, a
jump of 35% from 2020. Over the past decade, Beijing has pumped billions of dollars into Africa, building
roads, bridges and power installations in return for access to markets and resources. China has expanded
its economic footprint in Africa with its “Chequebook Diplomacy” and consequent debt traps of its clients.
For China, three aspects are critical & India must focus on where it lags behind:
• money, political influence and elite level wealth creation;
• strong state-to-state relations as opposed to people-to-people ties; and;
• hard-infrastructure projects and resource extraction.

INDIA- India’s approach on the other hand is one that focuses on building local capacities and an equal
partnership with Africans and not merely with African elites concerned.

What can India do for injecting momentum into the ties??

1. Connect finance to real outcomes. Every line of credit must lead to something visible and valuable.
Public finance must de-risk, not displace, private capital.
2. Build an India-Africa digital corridor. This should rest not only on UPI and India Stack but also on
Africa’s digital strengths. Together, we can co-develop platforms for health, education and payments
that serve the Global South.
3. Revive the institutional backbone. The IAFS has not met since 2015. That Summit, at Mr. Modi’s
insistence, brought all of Africa together. As its chief coordinator, this writer saw first-hand the
diplomatic energy it released. It is time to bring that spirit back as a date on India’s diplomatic calendar.
4. Focus on removing trade barriers and engaging in negotiations for preferential trade agreements and
comprehensive economic partnership agreements with regional economic communities and the major
African economies.
5. Aim to move from low-value commodity exports to two-way value-added and cross-border joint
venture manufacturing.

Email: csbiasacademy@[Link] 8 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
6. Moving beyond petroleum and traditional exports is critical in transitioning to a new phase of India’s
ties with African economies.
7. Deepening engagement with African regional groupings such as the African Continental Free Trade
Area (AfCFTA) can open greater opportunities for Indian exporters.
8. Focus on lowering freight and logistics costs by investing in port modernisation, hinterland
connectivity and in developing India-Africa maritime corridors.
9. Indian firms, particularly the public sector units must take the lead in investing in the African continent,
particularly in mining and mineral exploration.

Suggestions for improving ties:

• African Union (AU) should establish its regional Office in India to further strengthen regional
consultations.
• Africa holds 30% of the world’s mineral reserves, many of which are critical to renewable and low-
carbon technologies (solar, electric vehicles, green hydrogen, etc.)
• India must collaborate with France in reaching the Francophone nations where French is spoken by
31 African Countries.
• India and Africa must also look to sign more legal frameworks to improve economic engagements like
BIPA and FTAs.
• India and Africa should look to engage with one another at the Track I and Track II levels.
• India’s port leasing proposals in Mauritius and Assumptions islands have met with people’s uproar
• Africa has 60% of the world’s arable land, but produces just 10% of the global output. India can focus
in this aspect.
• India must win African support to gain permanent status on the UNSC and developing relationships
with African countries as a market for ‘Made in India’ exports.

Email: csbiasacademy@[Link] 9 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-Maldives
Prime Minister Narendra Modi called the Maldives “a valued partner in the Indian Ocean
neighbourhood”.

1965 – India was among the first to recognize Maldives after its independence in 1965 (from British) and to
establish diplomatic relations with the country.
1976 – Under the Maritime Boundary Treaty of 1976, Maldives recognized Minicoy as an integral part of
India & gave up its claims.
1981 – India and Maldives signed a comprehensive trade agreement.
2016 – A comprehensive Action Plan for Defence was also signed to consolidate defence partnership.
2019 – India also gifted 2500 LED street lights and 2 lakh LED bulbs to Malé City Council.
2020 – India dispatched around 30,000 doses of measles vaccine to prevent an outbreak in the Maldives.
2021 – India donated 100,000 doses of COVISHIELD vaccines to the Maldives.
2025 – PM Modi invited as a guest to the Independence Day parade and other special ceremonies to mark 60
years of the Maldives getting independence from the British in 1965.

Maldives’ proximity to the west coast of India (barely 70 nautical miles away from
Minicoy and 300 nautical miles away from India’s West coast), and its situation at the hub of
commercial sea-lanes running through Indian Ocean (particularly the 8° N & 1 ½° N channels) imbues it with
significant strategic importance to India.

India- a First Responder:

India has always been a first responder whenever there was a crisis in Maldives. This was evident in the below
three instances.

1988 failed Maldives coup:

The coup was the attempt by a group of Maldivians and assisted by armed mercenaries of a Tamil secessionist
organisation from Sri Lanka, the People's Liberation Organisation of Tamil Eelam (PLOTE), to overthrow
the government in Maldives. The mercenaries quickly gained control of the capital, including the major
government buildings, airport, port, television and radio stations. The intervention by Indian armed forces -
codenamed 'Operation Cactus' trounced the attempted coup.

2004 Tsunami:
India was the first to assist Maldives during the 2004 Tsunami as well. India rendered its financial and
Humanitarian assistance.

Operation Neer:
India was the first to assist Maldives during the 2014 water crisis in Malé. The rescue mission was initiated
by Indian government in response to the Maldivian government's request for help after major fire broke out
at the Male Water and Sewerage Company (MWSC) generator control panel, causing extensive damage to
the cabling of the generator to the Distillation plants and disconnection of water supply. India immediately
rushed bottled drinking water to Malé utilising Air Force aircraft and Navy ships.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Operation Sanjeevani:
During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material (food
& medicine) and logistical support.

“It is about proximity & India has always responded to the Maldives during emergencies… so yes, it is India
First” – Maldives Foreign Minister in 2019.

“Maldives can’t grow without India” – former President Mohammed Nashid

Geo-Strategic Importance of Maldives:

• Maldives occupies a very special place in the ‘Neighborhood First Policy’ and the ‘SAGAR (Security
and Growth for All in the Region) vision of the Government of India.
• “India First policy” has been a stated policy of the Government of Maldives and President Solih, ever
since he assumed office in November 2018.
• India has been apprehensive about the Chinese String of Pearls policy in the Indian Ocean region,
through the so-called “debt-trap diplomacy.” According to an estimate, China’s loans to the Maldives
total more than $1.5 billion, which is about 20 percent of its public debt.
• The Maldives sits along one of the busiest maritime trade passages in the Indian Ocean, through which
nearly 80 percent of Chinese oil imports flow. Analysts say Beijing wants Malé to remain a friendly
regional military presence to help safeguard its access to oil from the Persian Gulf.

Defence:
• India provides the largest number of training opportunities for Maldivian National Defence Force
(MNDF), meeting around 70% of their defence training requirements.
• A comprehensive Action Plan for Defence was also signed in April 2016 to consolidate defence
partnership.
• There are presently 3 major joint exercises – bilateral i.e. “Ekuverin” and “Ekatha” and trilateral i.e.
“Dosti” (including Srilanka), Operation Shield (begun in 2021).
• India in 2022, to help counter the threat of transnational crime, terrorism and drug trafficking in the
Indian Ocean region, promised to give 24 vehicles and one naval boat to the Maldives Security Force
and help train the island-nation’s security personnel.
• India also promised to cooperate in building police facilities in 61 islands of Maldives in 2022.
• Recently, the National College for Policing and Law Enforcement (NCPLE) was inaugurated by
India’s Foreign Minister.

Political Relations:
• India and Maldives have consistently supported each other in multilateral fora such as the UN, the
Commonwealth, the NAM and the SAARC.
• Maldivian side assured India of its support for permanent membership of India at the “expanded
and reformed” UN Security Council.
• In 2021, India extended its support to the Maldivian candidate in the UNGA Presidency polls.

Economic and Commercial Relations:

• India is Maldives 2nd largest trading partner (in 2022) – rising up from its 4th position in 2018.
• India‐Maldives bilateral trade crossed the $ 300 million mark for the first time in 2021, reaching an
impressive $ 323.29 mn.
• It further crossed USD 500 million mark in 2022. The trade in 2023 stood at $ 548 mn and to $680
million in 2024–25, according to official figures.
• Bilateral trade growth is a direct result of the launch of the cargo vessel service between the two
countries in September 2020 and commencement of work of various Lines of Credit (LoC) projects
since February 2021.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Implementation of visa-free entry in Feb 2022 for Indians arriving in the Maldives for business
purposes is a further recognition of the growing commercial partnership.
• State Bank of India has been playing a vital role in the economic development of the Maldives since
February, 1974 by providing loan assistance for promotion of island resorts, export of marine products
and business enterprises. In November 2022, India in response to a request from the Government of
Maldives, amid the economic challenges faced by the Maldives, handed over a financial assistance of
US$ 100 million. This financial support is through subscription in Maldives’ Government Domestic
T-bonds by SBI, Malè. India has provided a sovereign guarantee to SBI for this financial assistance.

Tourism:
• The Maldivian economy is heavily dependent on its tourism sector, which is the major
• source of foreign exchange earnings and government revenue.
• Tourism directly accounts for about quarter of GDP of Maldives and indirectly for a much larger
proportion of GDP.
• In terms of direct employment, tourism accounts for > 1/3rd of job opportunities for Maldivians and
if the allied sectors are included, the contribution of tourism sector in total employment (direct and
indirect) would rise up to nearly 70%.
• In 2018, India was the 5th largest source of tourist arrivals in Maldives.
• However, in the first half of 2019, India has moved to second spot and is placed just below China.
• In a pandemic-hit 2020, India was the largest source market for the Maldives with nearly 63,000
Indians visiting the Maldives.
• From 2021 to 2023, India continued as the top tourists market with over 2.91 lakh, 2.41 lakh & 2.09
lakh Indian tourist arrivals and a 23%, 14.4% & 11.1% market share, respectively. Since 2019, more
than 1 million Indian tourists have visited India.
• In March 2022, India & Maldives agreed for an open skies arrangement which will further improve
air connectivity between two countries.

People-to People ties:

• Indians are the second largest expatriate community in Maldives with an approximate strength of
around 30,000.
• They have a strong presence in the health and education sectors. Majority of expatriate teachers in
the Maldives are Indian nationals, spread across various atolls / islands. Similarly, a large number of
doctors, nurses, paramedics and pharmacists in Maldives are Indian nationals, mostly at middle and
senior levels.
• Several Indian nationals are also engaged as technicians, engineers, managers, accountants and in
the hospitality & tourism sectors, working in various islands / resorts. Further, Indian unskilled
workers are mostly engaged in the construction sector. In addition to this, some Indian
businesspersons have been running successful enterprises since long.
• India offers several scholarships to Maldivian students under ITEC, Colombo Plan, SAARC and
ICCR scholarships.
• India is a preferred destination for Maldivian for education, medical treatment, recreation and
business.
• Several Maldivian diplomats have received training in India under the Indian Foreign Service
Institute’s Professional Course for Foreign Diplomats (PCFD) program.
• Further, the ‘Bilateral Agreement on Exemption from Visa requirement for holders of Diplomatic and
Official Passports’ came into effect from August 2019.

Development Cooperation:
• Indira Gandhi Memorial Hospital was built with Indian Grant Assistance in 1995.
• During State Visit of President Solih to India in 2018,GoI announced US$ 1.4 billion financial
package to fulfill the socio‐economic development programme of the Maldives.
• In August 2020, GoI announced its decision to support Maldives in implementation of the Greater
Male Connectivity Project, a USD 500 million project funded by India.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• India announced USD100 million financial aid to help the island-nation complete certain infrastructure
projects.
• Addu Reclamation Project: Under Indian LoC of $ 80 mn, 190 ha was land has been reclaimed in
Addu city.

Challenges:
• Islamic Radicalisation in the Island (increase in the trend of Maldivians drawn towards terrorist
groups like the Islamic State (IS), Lashkar-e-Taiba (LeT) and other jihadist groups. Approximately
200 Maldivian nationals have reportedly been fighting along with the IS).
• Growing Chinese clout under the “String of Pearls” policy. In 2014, the Maldives agreed to become
a partner in China’s Maritime Silk Route. Time and again Maldives have started using the China card
to bargain with India.
• the relations between the two countries was strained under the pro-China regime of their former
President Abdulla Yameen.
• the recent ‘India Out’ campaign led by Abdulla Yameen, against India’s massive developmental
funding for the incumbent Ibrahim Solih govt.

Conclusion:
India needs to remain careful and not to interfere too much in the internal affairs of Maldives if it wants to
avoid a Nepal-like situation, where India’ perceived interference in Nepal’s internal affairs had turned the
Nepali people against India. Having a lighter diplomatic footprint is the only way forward in the Maldives’.

Sovereignty Issues & India Out Campaign:

• A handful of Indian military personnel in the Maldives are stationed for training Maldivian armed
forces.
• In November 2021, the Maldives National Defense Force (MNDF) revealed that 75 Indian military
troops stayed in the Maldives to assist the operations of the Dornier aircraft and two Dhruv Advanced
Light Helicopters (ALH) helicopters gifted by the Indian government. This presence, although
minuscule, has been projected as a threat to Maldives’ security by the Muizzu faction.
• Indian military deployed for a coastal surveillance. Its aimed to safeguard maritime security of
Maldives and of its waterways.
• Uthuru Thila Falhu (UTF) Naval Base Harbour being constructed. It is among the biggest Indian
grant-in-aid projects in the Maldives. It is aimed at developing a maintenance and repair hub for
naval vessels and will help the Maldives become self-sufficient.
• Pro-China candidate Mohamed Muizzu wins Maldives presidency, upending relationship with India.
• Except for unarmed crews, two Indian helicopters, one Dornier plane and one offshore petrol vessel
(all on loan), there is not a single Indian army soldier in the Muslim majority island.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-US ties
The bonhomie between the world’s largest and oldest democracies has been called a "defining partnership
of the 21st century" by former USA President Barack Obama.

Barack Obama hailed the India-U.S. relationship as having the potential to be “one of the defining
partnerships of the 21st century.”

"not just a regional power, but a global power" – Hillary Clinton, in 2009

“India is not just a rising power, it has already risen” – US President Barack Obama, in 2010

Since 1947:
• USA did not support India on Kashmir issue & India did not support USA on Vietnam issue
• India became first non-communist country to recognise PRC while US recognized Taiwan
• Pakistan joined USA camp with SEATO & CENTO while India remained neutral
• India imported American wheat under the US Public Law 480 on rupee payment

1962:
• India-China Conflict.
• PM Nehru writes to President JF Kennedy to request support from the US.
• Washington supports India in the conflict, recognizing the McMahon line as the border, and provides
air assistance and arms.
• U.S. Agency for International Development (USAID) help establish one of the first Indian Institutes
of Technology.

1967 – India rejected NPT Treaty

1971 – Bangladesh Liberation & India Signed its Treaty of Peace, Friendship & Cooperation with USSR
1974 – India’s Nuclear test
1984 – Bhopal Gas Tragedy. The incident harms U.S-India relations, and continues to complicate the bilateral
relationship years after.
India-USA relations improved marginally under Rajiv Gandhi
1991 – Fall of USSR
Opening up of Indian Economy & pro-West tilt in Foreign Policy
1998 – Operation Shakti & USA’s Sanctions
1999 – Kargil War. first time USA took pro-India stand & asked Pakistan to follow restraint
2001 – USA lifts Sanctions on India
2004 – Vajpayee visits USA & USA reciprocates through NSSP (Next Step in Strategic Partnership)
2008 – Civil Nuclear Deal i.e. Hyde Amendment/ 123 Agreement
USAs support has been pivotal for India’s entry into MTCR, Wassenaar Arrangement, and Australia Group
and its support is necessary for entry into NSG.
2016 – India has been central to Obama’s Pivot to Asia policy
2023 – Indian govt. rejected Non-NATO ally status proposed by a congressional committee of USA citing
“NATO doesn’t fit Indian template”.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

US and NAM:
During Cold War US rhetoric was that "if you are not with us, you are against us”. Thus US saw NAM as
"natural enemy”. US during the Cold War had termed NAM as immoral. Even today US views NAM with
suspicion as NAM after 1991 has opposed unilateralism and highlighted the need for creating a Multipolar
world order.

US developed Close relations with Pakistan during the Cold War, owing to its Strategic interests. Military
alliances had started to emerge in Asia in form of SEATO (1954) and CENTO/ METO/ Baghdad Pact
(1955). The conference was attended by members of these US led military alliances viz Iran, Iraq, Pakistan,
Thailand, Turkey and Philippines.

Even India forced by the Geopolitical uncertainties signed the 1971 Friendship treaty with Russia. India
was criticized by NAM nations for this signing.

Defence Cooperation:

Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with United States
declaring India as its Major Defense Partner (MDP) in 2016, by according STA-1 (Strategic Trade
Authorisation) Status it commits the U.S. to facilitate technology sharing with India to a level commensurate
with that of its closest allies and partners. The recent passage of the National Defence Authorisation Act
(NDAA) in the U.S. makes India virtually a non-NATO ally from 2020.

Defence procurements from USA are growing and amount to almost US$20 billion (MEA, 2025). Major U.S.-
origin defense items into India’s inventory to date, including C-130J Super Hercules, C-17 Globemaster
III, P-8I Poseidon aircraft; CH-47F Chinooks, MH-60R Seahawks, and AH-64E Apaches; Harpoon
anti-ship missiles; M777 howitzers; and MQ-9Bs.

The four foundational agreements were signed, i.e. General Security of Military Information Agreement
(GSOMIA) in 2002, Logistics Exchange Memorandum of Association (LEMOA) signed in 2016,
Communications Compatibility and Security Agreement (COMCASA) in 2018, and the Base Exchange and
Cooperation Agreement for Geo-spatial Cooperation (BECA) in 2020. Much recently, Security of Supplies
Arrangement (SOSA) was signed in 2023.

The two countries now conduct more bilateral exercises with each other than they do with any other country.
Bilateral exercises held annually include Malabar (between the two Navies and also include Japan), Cope-
India (Air Force), Yudh Abhyas (Army) and Vajra Prahar (Special Forces). India participated in Rim of the
Pacific (RIMPAC) exercise hosted by USA. The first India-U.S. Ministerial 2+2 Dialogue with Minister of
External Affairs [EAM] and Minister of Defence was held in 2018. USA renamed United States Pacific
Command (USPACOM), to U.S. Indo-Pacific Command in 2018, in recognition of the greater emphasis on
the Indian subcontinent.

India and the United States have launched a Defence Technology and Trade Initiative (DTTI) aimed at
simplifying technology transfer policies and exploring possibilities of co-development & co-production. India
& US concluded Industrial Security Annex (ISA) to facilitate collaboration between defence industries.

India has submitted a letter of request to the United States (in 2025) for the co-production of Javelin anti-
tank guided missiles (ATGMs) in the country, under the the “Make In India” Initiative.

In 2025, President Trump and Prime Minister Modi launched a new initiative – the “U.S.-India COMPACT
(Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st
Century”, to advance defense ties further, the leaders announced plans to sign this year a new ten-
year Framework for the U.S.-India Major Defense Partnership in the 21st Century.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Regional and International Cooperation:
• The U.S. has expressed support for India’s permanent membership on a reformed U.N. Security
Council (UNSC) and for India’s early membership in the Nuclear Suppliers Group (NSG).
• USA is also supporting India’s Candidature into APEC (Asia Pacific Economic Cooperation).
• The QUAD – a grouping comprising the United States, Australia, Japan, and India in the Indo-
Pacific.
• I2U2 – Israel, India, USA & UAE.
• A trilateral alliance of JAI is also evolving to counter China in Indo-Pacific.
• Both are members of G-20 grouping as well.
• In 2021, the United States joined the International Solar Alliance (ISA) headquartered in India.
• Both are members of the Coalition for Disaster Resilient Infrastructure (CDRI) as well.
• Both are part of the new West Asian Quad or I2U2 grouping (Israel, India, United Arab Emirates, and
the US) as well.

Trade and Economic ties:

The U.S. remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral
trade valued at $131.84 billion ($86.5 billion exports). It accounts for about 18% of India’s total goods exports,
6.22% in imports, and 10.73% in the country’s total merchandise trade.

During 2023-24, US was the third largest source of FDI into India with inflows of US$ 4.99 billion
accounting for almost 9% of total FDI equity inflows. From April 2000 to September 2024, India has received
USD 67.77 billion as cumulative FDI inflow from the US, which 10% of total FDI inflow to India. According
to a CII study released in April, 2023, 163 Indian companies invested over $40 billion in the US and created
over 425,000 direct jobs.
• PM Modi, and Donald Trump have announced in February 2025 ‘Mission 500’ – aiming to more than
double the bilateral trade to US$ 500 Billion by 2030.
• Currently, the negotiations on India- USA Bilateral Trade Agreement (BTA) are ongoing.

Nuclear:
India and USA have struck a Civil Nuclear Cooperation Deal in 2008. USAs support has been pivotal for
India’s entry into MTCR, Wassenaar Arrangement, and Australia Group. In 2019, USA agreed to
construct six nuclear power plants at Kovvada (A.P.) in India.

People to people ties:

About 4.4 million Indian Americans/Indian origin people reside in the US, they constitute the third largest
Asian ethnic group in the US. Indian Americans are one of the most successful communities and excel in
diverse fields, including politics. In addition, about 1.28 million Indians reside in the United States as Green
Card holders. The Indian Diaspora is acting as a catalyst to forge closer and stronger ties between India and
the U.S. There are six persons of Indian origin in the U.S. Congress. 300,000 strong Indian student
community contributes over $8 billion annually to the U.S. economy and helped create a number of direct
and indirect jobs (MEA, 2025).

PM Modi called Indian diaspora as “Rashtradoots” (country’s brand ambassadors) and a living bridge
between both countries. The Indian diaspora played a vital role in the India-US bilateral relations. The Indian
Samosa Caucus successfully lobbied the US congress in the post-Cold War era of 1990s Globalization period
and changed the US Foreign policy towards India. It resulted in the fruition of Civil Nuclear Deal, US support
to UNSC seat, entry into NSG (Nuclear Suppliers Group).

Space:

• NASA and ISRO have been cooperating since Chandrayan-1 and were jointly successful in detection
of water molecules on moon’s surface.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• NASA and ISRO have also collaborated for the joint exploration of Mars.
• ISRO and NASA are developing a microwave remote sensing satellite for Earth observation, NASA-
ISRO Synthetic Aperture Radar (NISAR).
• ISRO launched more than 200 satellites from the US, on-board Polar Satellite Launch Vehicle
(PSLV), as co-passengers.
• In June 2023 ISRO signed with NASA the Artemis Accords to participate in peaceful and sustainable
civil exploration of outer space.

S&T:

• Initiative for Critical and Emerging Technology [iCET]: It was launched in January 2023 to
facilitate strategic technology collaborations in critical and emerging technologies, co-development
and co-production and connect the respective innovation ecosystems especially in AI, quantum,
telecom, space, biotech, semiconductors, emerging defence technologies and biotech.
• India supplies about 40% of generic formulations marketed in USA. Indian pharma companies have
manufacturing locations in about 14 locations in USA and largest US Food and Drug Administration
compliant pharmaceutical plants. Indian Institutions are collaborating to promote Ayurveda.

Climate & Clean Energy:

• Hydrocarbons trade with USA which started in 2017 amounted to US$ 19 billion during 2022.
• In 2025, USA has become the world’s 4th largest supplier of crude oil to India, overtaking the UAE.
• USA joined the International Solar Alliance in 2021 and ratified the ISA Agreement in 2022. USA is
also a Member of the Coalition for Disaster Relief Infrastructure(CDRI).
• In April 2021 an India-U.S. Climate and Clean Energy Agenda 2030 Partnership was launched, with
two tracks i.e. Strategic Clean Energy Partnership (SCEP); and Climate Action and Finance
Mobilization Dialogue (CAFMD).
• Launch of the Strategic Mineral Recovery initiative - a new U.S.-India cooperative program to recover
and process critical minerals (including lithium, cobalt, and rare earths) from heavy industries like
aluminum, coal mining and oil and gas.

Indo-Pacific strategy:
• MEA Jaishankar on India’s approach for the Indo-Pacific said that “we act for something and not
against somebody” signifying India’s commitment for a rules based world order.
• Renamed US-Pacific command to Indo-Pacific Command
• Pivot to Asia Policy
• QUAD
• Common Strategic challenges of Rise of China in the Asia-pacific

Challenges:
• The relationship between India and the US is still determined to a large extent by the power asymmetry
between India and the United States.
• U.S. President Donald Trump administration imposed a steep 50% tariff on Indian goods. It includes
a 25% additional import duty for buying Russian crude oil. India expects these duties to affect $48.2
billion worth of goods based on 2024 export values.
• India was threatened with American sanctions under CAATSA on its decision to buy the Russian
made S-400 missile defence system.
• USA trying to influence India’s foreign policy by severing ties with Iran, Russia & refraining the
purchase of S-400 Missiles etc.
• US’ unilateral sanctions on Venezuela & Iran has resulted in oil & trade related inconveniences for
India.
• Trade War and withdrawal of benefits such as GSP (Generalized System of Preferences) Status.
• India has been referred by the US, as “tariff king” that imposes “tremendously high” import duties.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• USA asked WTO to strip India off of Developing country status & India has won Solar case at WTO
in 2019. In 2014, the US had launched a similar trade dispute against India’s Jawaharlal Nehru Solar
Energy Mission.
• USA claims to having de-hyphenated its relations with India and Pakistan, but it’s relations with
Pakistan is still unclear. US has side-lined India on the Afghan issue and using India majorly to contain
China in the Indo-Pacific.
• USA selling F-16 spare parts to Pakistan is something that will pose a serious threat to Indian
security interests.
• Policy of USA with respect to Pakistan and Afghanistan without giving due importance to India’s
interests
• India stayed out from joining the US-led trade pillar i.e. Indo-Pacific Economic Framework (IPEF).
The IPEF framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar
II); Clean Economy (Pillar III); and Fair Economy (Pillar IV). India had joined Pillars II to IV of IPEF
while it has an observer status in Pillar-I.
• US is expressing its displeasure when India is dealing with Russia (recent example being when
Jaishankar visited Russia)
• The US is also seeking greater market access for its products such as almonds, pistachio, apples,
ethanol and genetically modified commodities, etc.
• Trump’s MAGA govt. and its restriction on H1B Visa Holders and arbitrary deportations, etc.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

INDIA-PAKISTAN
Salman Rushdie called Pakistan, ". . . that country divided into two Wings a thousand miles apart, that fantasic
bird of a place, two Wings without a body, sundered by the land-mass of its greatest foe, joined by nothing
but God . . ."

“India and Pakistan fighting over Kashmir, is like two sons fighting over their father's estate. To them
Kashmir is not a people, but a possession, and obsession over possession only brings destruction.”

Vajpayee once said, a nation can pick its friends, but not its neighbours.

Cross-border Terrorism:
Good fences make good neighbours
• State-sponsored cross border terrorism and terrorism emanating from territories under Pakistan's
control remains a core concern in bilateral relations.
• India seeks normal neighbourly relations with Pakistan in an environment free from terror, hostility
and violence.
• 2001 Indian Parliament attack
• 2008 Mumbai attacks (26/11)
• India has repeatedly called upon Pakistan to bring perpetrators of Mumbai terror attacks to justice
which is often overlooked.
• Terror attack on Pathankot Airbase in 2016;
• attack on Army Camp in Uri in 2016; and
• the Pulwama attack of 2019 has repeatedly hurt the bilateral ties and growth in the region.
• In response to Pulwama, India carried out a successful anti-terror pre-emptive air strike against a
training camp of JeM in Balakot, Pakistan.
• Pahalgam attack of 2025 & the subsequent “Operation Sindoor” by Indian Govt.

Trade and Commerce:

• In 2019, Pakistan suspended bilateral trade with India after New Delhi revoked the special status of
Jammu and Kashmir.
• The trade potential between India and Pakistan stands at $37 billion, according to a World Bank
report. It said continued political tensions and lack of normal trade relations hurt the prospects of both
the two nations.
• India had accorded MFN status to Pakistan in 1996. A Pakistan cabinet decision of 2011 to reciprocate
remains unimplemented.
• In 2012, India announced reduction of 30% in its SAFTA Sensitive List for non-Least Developed
Countries of SAFTA [including Pakistan], bringing down tariff on 264 items to 5% within a period of
three years. However, Pakistan continued to follow restrictive trade policy towards India.
• In the aftermath of cross border terror attack in Pulwama, India, in February 2019 withdrew Most
Favoured Nation (MFN) Status to Pakistan. India also hiked customs duty on exports from Pakistan
to 200% in February 2019.
• India's exports to Pakistan in April-January 2024-25 stood at $447.65 million, while imports were
meagre $0.42 million.
Email: csbiasacademy@[Link] 1 [Link]
 CSB IAS ACADEMY CONTACT NO: 9966436875

• Subsequently, as part of its unilateral measures, Pakistan suspended bilateral trade, downgrading of
diplomatic relations with India since August 2019.
• Even though ties have been worse in the past like after the Parliament attack, trade has never been
touched.
• Removal of Trade Ban by Pakistan: Post-2021, Pakistan govt. decided to allow the import of sugar
and cotton from India amid soaring domestic prices, to stabilize the market prices & meet domestic
demand.

• In 2019, India revoked Pakistan’s MFN status after a suicide bombing in Pulwama in India-
administered Kashmir killed at least 40 Indian paramilitary personnel.
• From 2018 to 2024, bilateral trade fell from $2.41bn to $1.2bn. Pakistani exports to India
plummeted from $547.5m in 2019 to just $480,000 in 2024.

Indo-Pak Informal Trade:

1) While official figures have pegged Indian exports to Pakistan at $447.65m, the real trade volume is
thought to be much higher as traders route goods via third countries to bypass restrictions, avoid
scrutiny and command higher prices upon relabelling.
2) Unofficial Indian exports to Pakistan are in fact believed to stand at $10bn a year, according to the
India-based economic think tank Global Trade Research Initiative (GTRI).
3) GTRI said this has been achieved largely by finding alternate routes through ports in Dubai in the
United Aab Emirates; Colombo in Sri Lanka; and Singapore.
4) Acc. to GTRI: “Indian goods are sent to Dubai, Singapore, and Colombo. The goods are then stored
in bonded warehouses in transit hubs, in bonded warehouses, where goods can be stored without
paying duties while in transit. While in storage – still duty-free – the documents and labels are
changed. The products are re-exported to Pakistan under a new ‘country of origin’ – say, UAE
instead of India.”
5) This indirect trade is estimated to add 15–25% to the cost of goods.
6) While such trade is not always illegal, “this grey-zone strategy highlights how trade adapts faster than
policy.” Such trade, by bypassing formal trade restrictions, “fetches better prices, even after re-export
markups and it maintains plausible deniability – no ‘official’ trade, yet commerce continues”. The
higher price covers storage, paperwork, and access to a closed market.
7) Foreign trade experts said rerouting goods by taking them to facilities where they are transferred to
other ships to avoid international trade restrictions is a common practice.
8) India, for instance, has been a location for such practices since Russia’s invasion of Ukraine, said
Jayati Ghosh, economics professor at the University of Massachusetts Amherst. They reroute fuel
from Russia to European countries, such as Germany, to skirt sanctions, Ghosh said.
9) Since the Ukraine invasion, India has become one of the largest buyers of Russian crude oil, importing
an average of 1.75 million barrels per day in 2023, a 140 percent increase from 2022. Russian oil
accounted for about 40 percent of India’s total crude imports in 2024, up from just 2 percent in
2021.
10) China has been doing the same with India for decades, trade economist Biswajit Dhar said, by routing
goods to India via the Association of Southeast Asian (ASEAN) Nations, which includes
Singapore, Indonesia, Thailand, Vietnam, Cambodia, Laos, Brunei, Malaysia, the Philippines and
Myanmar. “If China brings exports directly to India, they attract higher tariffs. With ASEAN, India
has a retail agreement,” Dhar said. “Businesses will do everything possible to meet a demand wherever
it exists in whichever country.”
11) Preventing it could be tricky, however, as rerouting and relabelling goods in third countries are carried
out by private entities, including importers, exporters and traders, and not through official government
channels.

Indus Water Treaty (IWT):

• It is a water-distribution treaty between India and Pakistan, arranged and negotiated by the World
Bank, to use the water available in the Indus River and its tributaries.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• It was signed in 1960 by then Indian Prime Minister Jawaharlal Nehru and then Pakistani president
Ayub Khan.
• The Treaty gives control over the waters of the three "eastern rivers" — the Beas, Ravi and Sutlej to
India, while control over the waters of the three "western rivers" — the Indus, Chenab and Jhelum to
Pakistan.
• India has about 20% of the total water carried by the Indus system while Pakistan has 80%.
• The Indus Waters Treaty is considered one of the most successful water sharing endeavours in the
world today.

Challenges of IWT:
• The core of the issue now between India and Pakistan involves the Kishanganga and Ratle (on
Chenab) hydroelectric power plants in India’s Jammu and Kashmir.
• India considers these projects crucial for energy needs and the region’s development, while Pakistan
has raised objections, citing violations of the treaty and potential negative effects on its water supply.
• In 2013, the Court of Arbitration (CoA) delivered the final judgment, ruling that the Kishanganga
hydroelectric project is a run of river dam, and India, under the IWT, can divert water from the river
Kishanganga/Neelum for power generation. However, the court stated that India has to maintain a
minimum flow of water in the Kishanganga/Neelum river to nine cusecs (cubic metre of water per
second).
• India’s abeyance of the Indus Waters Treaty in 2025 marks a turning point in South Asian
geopolitics. While not a formal withdrawal, the move has strategic, humanitarian, and diplomatic
consequences.

People to People Relations:

There are 275 Indians, including fishermen presently believed to be in Pakistan’s custody. However, Pakistan
has acknowledged the custody of 262 of them. As a result of persistent efforts, India has been successful in
securing the release and repatriation of 2133 Indians, including fishermen, from Pakistan’s custody since
2014. Government of India has persistently taken up the matter of release of 1100 Indian fishing boats believed
to be Pakistan custody.

In October 2017, India suggested to Pakistan to revive the mechanism of the Joint Judicial Committee which
looks into humanitarian issues of fishermen and prisoners in each other’s custody.

Kartarpur Corridor (2019):

• It connects the Sikh shrines of Dera Baba Nanak Sahib and Gurdwara Darbar Sahib.
• The corridor is intended to allow religious devotees from India to visit the Gurdwara in Kartarpur, 4.7
kilometres from the Pakistan-India border, without a visa.
• PM Narendra Modi, compared the decision to go ahead with the corridor by the two countries to the
fall of the Berlin Wall, hoping a diplomatic thaw.
• While some believe the opening of this religious corridor is to revive the Khalistan movement, others
look at this as a harbinger of normal relations between the two countries.
• The corridor would bring Pakistan infrastructure right up to the Indian border.

Issues:
• Kulbhushan Jadhav case
• CPEC Project of China violates the Sovereignty of India
• Khalistan Issue (Pakistan is accused of aiding them)
• Sino-Pak and Russo-Pak proximity
• Eternal Kashmir issue (rebuking Article 370 recently)
• Sir Creek Issue (Gujarat)

Border issues:
• Cross-border terrorism & Terrorist infiltration

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Drug trafficking (Golden Crescent)

• Counterfeit Currency
• Money laundering

SAARC Issue:
• SAARC is crippled due to the ever-lasting tensions between Pak-India.
• The differences between the two major South Asian nations has not yielded much benefit to any of
them or their neighbours.
• South Asia today is the least integrated region with less than 5% of the intra-regional trade.
• The last SAARC summit, scheduled to be held in Islamabad in November 2016, was postponed after
the terrorist attacks in Uri; none has been held since then.
• Both must pursue a Diplomacy that is de-linked from Kashmir and try to resolve the differences
through dialogue rather than Internationalising them.
• “Heightened tensions between India and Pakistan had brought the SAARC “to a standstill”. – former
PM, Ranil Wickremesinghe

China Factor:
“the enemy of my enemy is my friend” is the one of the basic tenet of Kautilya’s Rajamandala Theory.
Both have called themselves “all-weather allies” and “iron brothers”.
• CPEC (China-Pakistan Economic Corridor)
• Shaheen IX Pakistan-China joint exercise.
• Acc. to SIPRI, Chinese arms made up 81% of Pakistan’s weapons imports in the past five years (2019-
2024).
• In 2019, Beijing has supported Pakistan on Kashmir, raising the issue at the UN Security Council
thrice, after India revoked the erstwhile state’s special status.
• China along with Pakistan is opposing India’s candidature at UNSC.
• China is also helping Pakistan in avoiding the blacklisting at FATF.
• China is opposing India’s candidature at NSG or it wants Pakistan also in it if India is admitted
• Beijing has also been instrumental in shielding the perpetrators of acts of terror committed on Indian
soil. It has, in the past. blocked efforts to place Jaish-e-Mohammad’s Rauf Asghar, Lashkar-e-
Taiba’s Sajid Mir and Abdur Rahman Makki on a UN sanctions list.
• Pakistan has been valuable to China for applying pressure on India’s western flank.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

INDIA-BANGLADESH
India and Bangladesh are neighbors geographically and family historically, culturally. The relationship is
anchored in history, culture, language and shared values of secularism, democracy, and countless other
commonalities between the two countries.

“India-Bangladesh relationship is a role model for good neighbourly relationship in the South Asian region”
–Jaishankar, MEA

India and Bangladesh share 54 trans-boundary rivers that drain through Bangladesh of which the Ganges
is highly seasonal.

1757 - After the Battle of Plassey, Bengal is the first region of the Indian subcontinent to be conquered by the
British East India Company.

1947 - British colonial rule over India ends. A largely Muslim state comprising East and West Pakistan is
established, either side of India. The two provinces are separated from each other by more than 1,500km of
Indian territory.

Since its creation, Pakistan had been a geographical monstrosity — “a bird with two wings but no body”,
according to Salman Rushdie, in his Booker Prize winning novel
Midnight's Children

1971 - Bangladesh Liberation War. Bangladesh (formerly East Pakistan) becomes independent after a war
with West Pakistan - now just Pakistan - with India backing the Bengali nationalists against Pakistan.
1973 - First parliamentary elections give the Awami League a landslide victory.
2023 – Bangladesh invited as a Guest Country invited to India’s G20 Presidency.
2024 – PM Sheikh Hasina assumed office in January 2024 after her historic consecutive 4th term victory.
• The “July Revolution” snowballed and on 5 August 2024, Sheikh Hasina resigned from her position
as the Prime Minister of Bangladesh and fled the country on a helicopter, arriving in Delhi via Agartala.

Geo-Strategic Importance:
• Bangladesh is at the converging point of India’s "Neighbourhood First” policy, "Act East” policy,
SAGAR doctrine, the Indo-Pacific vision, and an important partner in the development of India’s
northeastern region.
• The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
and the Mekong-Ganga Cooperation have the potential to foster deeper collaboration between India,
Bangladesh, and other South Asian and Southeast Asian nations.

50 years for Indo-Bangla Ties:

2021 marks the 50 years of B’desh liberation since 1971. PM Modi visited B’desh to commemorate the 50th
anniversary of the war of liberation and the centenary year of Sheikh Mujibur Rahman. Modi called
Bangladesh a “major pillar” in India’s neighbourhood first policy. Gandhi Peace Prize was presented to
Mujibir Rahman by India.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Border:
India and Bangladesh share 4096.7 km. of border, which is the longest land boundary that India shares with
any of its neighbours. Bangladesh shares border with India's West Bengal (2216.7 km), Tripura (856),
Meghalaya (443), Mizoram (318 km) and Assam (263 km).
• The India-Bangladesh Land Boundary Agreement (LBA) came into force following the exchange of
enclaves in 2015.
• Six Border Haats, (4 in Meghalaya and 2 in Tripura), have been approved by the Indian and
Bangladesh governments for the benefit of bordering communities & booming the local economy.
• A Border Haat is a jointly managed local market set up on or very near the India–Bangladesh
border where local residents of both countries are allowed to trade locally produced goods. It is not
a normal international trade post. It is a people-centric, micro-trade arrangement.

Bilateral Trade:
• Bangladesh is India's largest trading partner in South Asia. India is Bangladesh's second biggest
trade partner in Asia (after China), and its largest export market in Asia.
• In FY 2023-24, the total bilateral trade has been reported as USD 14.01 billion. Bangladesh exported
USD 1.97 billion of goods to India in FY 2023-24.
• The total trade turnover in FY25 touched US$ 13.51 billion.
• India’s imports from Bangladesh stood at US$ 2.05 billion in FY25 and US$ 1.8 billion in FY24.
• India and Bangladesh formally launched a new mechanism to settle trade in Indian Rupees (INR) on
11 July 2023. This mechanism of settling bilateral trade in INR was introduced to help reduce
dependency on US Dollar for bilateral trade and also reduce transaction cost & time, improve
the speed, efficiency, and convenience and therefore enhance over trade volumes.

India and Bangladesh are members of various regional trade agreements including the Asia Pacific Trade
Agreement (APTA), SAARC Preferential Trade Agreement (SAPTA) and the Agreement on South Asian Free
Trade Area (SAFTA) which govern the tariff regimes for trade. Under SAFTA, India provides duty-free,
quota-free (DFQF) market access to nearly all Bangladeshi goods (except alcohol and tobacco). India is
also among the largest export destination in Asia for Bangladeshi goods.

Bangladesh’s garment manufacturing sector, a key driver of its economic growth, relies heavily on raw
materials and intermediate goods from India like pure cotton yarn, raw cotton. These materials are
transformed into yarn and fabric in Bangladeshi factories before being used to manufacture garments for
domestic consumption as well as for exports.
Currently, there are ongoing negotiations on the Comprehensive Economic Partnership
Agreement (CEPA) between India and Bangladesh.

New areas of commercial cooperation, such as in the Startup sector, have emerged over the years. An India-
Bangladesh Startup Bridge was inaugurated in July 2023. The first Startup delegation from Bangladesh
visited India in May 2023 which was followed by a reciprocal visit from India to the first Bangladesh Startup
Summit in July 2023.

Power & Energy:

• The cooperation in the power sector also become one of the hallmarks of India-Bangladesh relations
in the recent years.
• As of 2024, Bangladesh is importing 1160 MW of power from India.
• The Maitree Super Thermal Power Plant has been made operational in Rampal, B’desh under
India's concessional financing scheme supplying electricity to Bangladesh grid.

Connectivity:
The seamless transport connectivity between India and Bangladesh has the potential to increase national
income of Bangladesh by 17% and 8% in India – WORLD BANK

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Feni Bridge (Maitree Setu) connecting LCS Subroom (Tripura) and LCS Ramgarh (Bangladesh) has been
jointly inaugurated in March 2021. The India-Bangladesh Friendship Pipeline Project, signed in 2018, (or
carriage of High Speed Diesel from India into Bangladesh) will connect Siliguri in West Bengal in India and
Parbatipur in Dinajpur district of Bangladesh.
• Indian assisted development cooperation projects in Bangladesh. The projects are: Khulna-Mongla
Port rail line and Unit II of Maitree Super Thermal Power Plant.

Rail Connectivity:
Efforts for greater connectivity to forge enduring people-centric partnership have resulted in rehabilitation of
6 pre-1965 rail links between India and Bangladesh.
1. Petrapole (India)-Benapole (Bangladesh),
2. Gede (India) – Darshana (Bangladesh),
3. Singhabad (India) - Rohanpur (Bangladesh), and
4. Radhikapur (India) – Birol (Bangladesh).
5. Agartala (India) and Akhaura (Bangladesh)
6. Haldibari (India) - Chilahati (Bangladesh)

Currently there are three railway trains operating between the two
countries –
a) Maitri Express (since 2008, connecting Kolkata and Dhaka);
b) Bandhan Express (since 2017, connecting Kolkata and Khulna); and
c) Mitali Express (since June 2022, between New Jalpaiguri and Dhaka).

Road Connectivity:
Currently five bus services routes are operational between India and Bangladesh connecting cities of Kolkata,
Agartala and Guwahati to Dhaka and further up to Khulna.
• Dhaka-Kolkata direct bus service.
• Dhaka- Guwahati- Shillong-Dhaka;
• Dhaka-Agartala;
• Agartala-Kolkata via Dhaka.

Inland Water Connectivity:

India and Bangladesh have a Protocol on Inland Waterways Trade and Transit (PIWTT), that has been
operational since 1972, for facilitating trade and transit between the two countries through the inland
waterways. It permits movement of goods over barges/vessels through the river systems of India and
Bangladesh. It allows for trans-shipment of goods to India’s North- Eastern States through the Ashuganj
River Port (and from there to Akhuara-Agartala by road) in Bangladesh. Coastal Shipping Agreement signed
in June 2015 has also enabled direct sea movement of containerized/bulk/dry cargo between the two countries.
Cruise services between both countries through usage of PIWTT routes have also been operational.

Port Connectivity:
Both countries have operationalized the Agreement for the usage of Chittagong and Mongla Ports in 2023.
This will allow India to avail the services of these ports in Bangladesh for transit cargo between Northeast
and mainland India. This will significantly reduce the cost and time of transportation.
• Matarbari port: Japan and India are jointly developing the port, and helps in connecting with India's
northeastern states.

Development Partnership:
• Bangladesh is the largest development partner of India today. India has extended 3 Lines of Credits
(LOC) to Bangladesh in the last 8 years amounting to around US$ 8 billion for development of
infrastructure in various sectors including roads, railways, shipping and ports.
• In addition to LOCs, the GOI has also been providing grant assistance to Bangladesh for various
infrastructure projects building rail links, dredging of inland waterways and construction of Pipeline.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• The Government of India has been providing training to Bangladesh Civil Service officials, police
officials, judicial officials and judges, professionals, among others, at various premier training
institutes in India.
• Bangladesh is an important ITEC partner country and annually around 800 participants avail
benefits of the ITEC training courses. In March 2021, India announced 1000 “Suborno Jayanti
Scholarships” for Bangladeshi students.
• In February 2022, a dedicated website was launched for desirous Bangladeshi students wanting to
study in premier Govt of India educational institutes, including the IITs and NIITs, and pursue under-
graduation, post-graduation and [Link]/PhD courses.
• Under the Scholarship scheme for Muktijoddhas, 2000 scholarships are provided every year to
wards of Muktijoddhas to undertake Higher Secondary and undergraduate studies in Bangladesh. So
far, 24,018 scholarships have been awarded the scholarship. Under the Muktijoddha Medical Scheme,
Muktijoddhas are facilitated to avail medical treatment in India, since 2019.

Cultural Cooperation:
The Indira Gandhi Cultural Centre and the Indian Cultural Centre in Dhaka provides training programs
including Yoga, Kathak, Manipuri dance, Hindi language, Hindustani classical music etc. and contribute in
promotion of people-to-people contacts.

Defence Cooperation:
India and Bangladesh share the historical legacy of cooperation and support during the Liberation War of
1971. Various Joint exercises of Army (Exercise Sampriti) and Navy (Exercise Milan) take place between
two countries.
• The first ever Defence LoC of USD 500 million has also been extended to Bangladesh.

Sharing of River Waters:

India and Bangladesh share 54 common rivers. The Ganga Waters Treaty signed in 1996 for sharing of
waters of river Ganga during lean season (January 1-May 31) is working satisfactorily.

In 2022, both nations signed the “Kushiyara Pact” & agreed to share the waters of a significant transboundary
river, the Kushiyara.

Tourism:
According to the Ministry of Tourism, Bangladesh accounted for the largest share of foreign tourist arrivals
in India in 2020, including tens of thousands of people who come to the country for medical treatment.
Bangladesh accounts for more than 35% of India’s international medical patients and contributes more
than 50% of India’s revenue from medical tourism.

Cooperation during COVID-19 pandemic:

• the Government of India has extended medical assistance including 30,000 surgical masks, 15,000
head covers, 50,000 surgical latex gloves, 100,000 Hydroxychloroquine medicine tablets and RT-PCR
test kits capable of running 30,000 tests.
• In January 2021, the Government of India gifted 2 million Covishield (Oxford-AstraZeneca vaccines)
to Bangladesh to assist in its efforts to fight against the pandemic.

Other Areas:
• India sent the first consignments of humanitarian assistance to Bangladesh, under Operation
Insaniyat, for Rohingya refugees in Bangladesh.
• India is collaborating with Russia in establishing Rooppur Nuclear Power Plant in Bangladesh.
• Bangladesh is India’s largest development partner with nearly one-fourth of the GoI commitment
under GoI LoC having been made to Bangladesh.
• Total contracts have crossed the milestone figure of USD 2 billion and total disbursements have
crossed USD 1 billion.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Under Nutan Bharat Bangladesh Maitree Muktijoddha Santan Scholarship, over 9,000 Bangladesh
students have availed scholarships for education in India since 2017.

Why B’desh is Vital for India:

• Sustaining a friendly relationship with Bangladesh is important for India not only to realise its Act
East and Neighbourhood First Policy but also for connectivity, peace and stability for the northeast
(NE) region.
• The country has been India’s major partner in various regional and sub-regional initiatives like the
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC),
SAARC and Bangladesh, Bhutan, India and Nepal (BBIN) sub-regional initiative.
• Bangladesh govt. acted against the insurgent groups of NE India like United Liberation Front of Assam
(ULFA) and National Democratic Front of Bodoland (NDFB).
• Bangladesh evoked its foreign policy “Friendship to all, malice towards none”, playing safe game
between India and China

Growing Chinese Influence in Bangladesh:

• Bangladesh presents a subtler pattern of strategic balancing. Chinese firms have been deeply involved
in power generation, ports, bridges, and industrial zones, while Beijing has emerged as a major
trading partner.
• In 2016, Bangladesh joined China’s Belt and Road Initiative (BRI) since 2016.
• The bilateral relations between China and Bangladesh was already elevated to ‘Comprehensive
strategic cooperative partnership’.
• China is Bangladesh’s number one trading partner with annual bilateral trade exceeding $25 billion,
as of FY 2025.
• Under its BRI, China has financed over $10 billion worth of ports, bridges, highways and other critical
infrastructure.
• Also, Bangladesh imports Chinese military equipment, including submarines, in the defense sector
that is major concern for India’s National Security.
• Arms import: Bangladesh is the second biggest arms market for China after Pakistan.
• Mega projects: Bangladesh had successfully approached China for a mega project to enhance the
Teesta river water flow.
• Bangladesh procured two submarines (BNS Navajatra and BNS Joyjatra) from China in 2016,
necessitating the need for a base.
• BNS Sheikh Hasina – the country's first submarine base built at the cost of $1.2 billion, with Chinese
assistance. The base's location, gives it clear access to the Bay of Bengal and the Indian Ocean.
Submarines sailing from here would come very close to India's Andaman and Nicobar Command.
• BNS Pekua, submarine base at Pekua in Cox’s Bazar in Bangladesh, is the largest submarine base
in South Asia.
• Bangladesh’s growing defence proximity to China has raised some concerns in India, which has
traditionally been Dhaka’s biggest security and economic partner.

Rapprochement of Pakistan- Bangladesh ties:

• A Pakistani cargo ship docked in Bangladesh after 53 years, marking the first direct maritime
contact between the two South Asian nations since relations were severed in 1971, marking a historic
thaw in relations between the two countries.
• It has raised concerns in India about a potential strategic realignment in the region.
• The vessel, sailing under a Panama flag from Karachi, arrived at the port city of Chittagong on
November 11, signalling a significant step forward for Pakistan and Bangladesh, particularly after the
ouster of former Bangladesh prime minister Sheikh Hasina’s regime. The first vessel reportedly carried
textiles and sugar.
• Dr. Muhammad Yunus, the head of Bangladesh’s interim government, during his first few weeks in
power, met with senior Pakistani officials at the UNGA meeting.
• After Hasina’s ouster, Yunus’ interim government has shown a shift towards closer ties with Pakistan.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Prime Minister Shehbaz Sharif of Pakistan and Yunus discussed strengthening bilateral
cooperation on the sidelines of the United Nations General Assembly in September this year.
• In 2022, Hasina’s government denied Pakistan’s request for the Chinese-built frigate warship PNS
Taimur to dock at Chittagong port.
• Yunus-led government in October scrapped the mandatory 100% physical inspection of goods
imported from Pakistan to facilitate business operations, which resulted in long delays (Pakistan
has a habit of sending arms and ammunition to various groups in Bangladesh, that is the main issue.
In 2004 a shipment of arms meant for a rebel group in India’s northeast was intercepted at
Chittagong port).
• Also, the lack of a direct maritime link meant that, previously, Pakistani goods had to be off-loaded
onto feeder vessels, usually in Sri Lanka, Malaysia, or Singapore, before traveling onwards to
Bangladesh.
• Some Bangladeshi officials in the shipping ministry have put a suggestion to review of India-
Bangladesh shipping pact under which India will get access to Chittagong and Mongla ports.
• After Hasina's fall, Dhaka wasted little time in mending fences with Islamabad. A direct Dhaka-
Karachi flight resumed last month after a 14-year hiatus. Earlier, there was a first visit by a Pakistani
foreign minister to Bangladesh in 13 years. Senior military officials have exchanged trips, security co-
operation is back on the table, and trade climbed 27% in 2024-25.

Issues:
India & Bangladesh BORDER Issues:
• India has also reiterated its commitment to ensuring a crime-free border by effectively addressing the
challenges of cross-border criminal activities, cattle smuggling, movement of criminals, illegal
migrants, illicit drug trafficking, fake currency, and human trafficking.
• It said barbed wire fencing, border lighting, installation of technical devices and cattle fences are
measures for securing the border.
• Rohingya Refugee Issue
• The Illegal migrations (refugees & economic migrants) & Cattle, drug & human trafficking across
borders.
• Killings of Bangladeshis by Indian BSF on borders
• Home Minister Amit Shah in 2018 called Bangladeshi Illegal Migrants as “Termites” and in 2021,
Defence Minister Rajnath Singh called them “infiltrators”, comments like this from political top brass
have impacted the bilateral ties and they were not received well in the neighbouring nation. They have
to be more sensitive and conscious of the words they use. This cross-border rhetoric - inflammatory
commentary from Indian politicians and television studios that has fed a wider belief in Bangladesh
that Delhi sees it less as a sovereign equal than as a pliant backyard.

Anti-India activities & Security Issues:

• India’s view of Bangladesh has been shaped considerably by the latter’s support to anti-India
insurgents taking refuge on its soil.
• In the late 1990s and early 2000s, groups like the United Liberation Front of Asom (ULFA) received
shelter in Bangladesh, leaving a lasting imprint on Indian strategic memory.
• Over time, the group received more than mere refuge. The most significant evidence came in 2004,
with the interception in Chittagong of ten truckloads of sophisticated weapons meant for ULFA.
• The return of the Awami League to power in 2008 marked a turning point in Bangladesh-India
relations. During Hasina’s tenure, Dhaka dismantled the camps and networks of anti-India insurgents
in Bangladesh and handed over several top ULFA leaders to Indian authorities.
• The Delhi-Dhaka collaboration on security issues during Hasina’s rule prompted strong Indian support
for her regime. The AL’s fall in August 2024 marked the end of that cooperation from Bangladesh.

Trade related issues:

Despite strong momentum, exporters often face operational hurdles such as:

Email: csbiasacademy@[Link] 6 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Complex customs documentation
• Regulatory compliance requirements
• Border congestion and clearance delays
• Limited visibility in cross-border shipment tracking
These challenges can slow down deliveries and increase costs—especially for D2C and eCommerce sellers.

Water Disputes:
• Teesta river water dispute remains unresolved – Teesta is a river that originates in Sikkim and flows
through West Bengal in India before entering Bangladesh. A move by New Delhi and Dhaka to clinch
a water-sharing deal remained stalled for the past several years as West Bengal Chief Minister
Mamata Banerjee refrained from giving her consent, stating that such a pact would result in
water scarcity in the northern region of the state and hit the farmers hard.
• Ganga river treaty (1996) – set to expire in 2026

Other Issues:
• Trade deficit with India.
• The Citizenship (Amendment) Act (CAA) and the proposed National Register of Citizens (NRC),
which Ms. Hasina called “unnecessary”.
• 2021 Anti-Modi protests, rallies, demonstrations, occurred opposing PM Modi’s visit in Bangladesh
accusing him of committing crimes against humanity during the 2002 Gujarat riots, anti-Muslim
policies etc.
• Attacks on Minorities: on Muslims in India & on Hindus in Bangladesh. Imprisonment of Hindu
Guru – Chinmoy Krishna Das.
• B’desh’s opposition criticized Sheikh Mujibur Rehman for making B’desh a satellite of India.
• Presence of Sheikh Hasina in India (Political Asylum)

Email: csbiasacademy@[Link] 7 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

INDIA-NEPAL
Prithivi Narayan Shah the founder of Modern Nepal called Nepal’s geopolitical condition is sometimes called
the "yam between two rocks” due to its position between India and China. By this he meant that
surrounded by these two giants it was difficult for Nepal to be independent and prosper on its own.

Nepal shares a border of 1751 km with five Indian states – Sikkim, West Bengal, Bihar, Uttar Pradesh and
Uttarakhand. India-Nepal bilateral relationship is often described as 'Roti-Beti ka Rishta' (relation of
food and family).

The India-Nepal Treaty of Peace and Friendship of 1950 provides the “national treatment to Nepali
citizens” in India. Nearly 8 million Nepalese citizens live and work in India.

Key provisions (Major concessions to Nepalese)

Nepalese citizens can:
• Free movement: No visa required. People freely cross border
• Work in India: Work in private sector & government sector
• Join Indian Army: Gorkha regiments in Indian Army. Around 30,000 Nepalese serve in Indian Army
today.
• Property ownership: Buy property & Live permanently in India
• Business: Can start businesses freely
• Equal economic rights: Almost equal to Indian citizens (except voting)

1950 – India-Nepal Treaty of Peace and Friendship.

1954 – The Koshi Agreement signed and revised in 1966.
1959 – Gandak Agreement signed and revised in 1964.
1996 – Mahakali Treaty regarding the development of Mahakali River.
2004 – India-Nepal Rail Services Agreement (RSA) governs the rail-freight transport between the two
countries.
2009 – India-Nepal Treaty of Trade and Agreement signed & renewed in 2016. It allows Nepal unilateral
duty-free access to the Indian market.
2011 – India and Nepal also signed a Double Taxation Avoidance Agreement (DTAA).
2011 – Bilateral Investment Protection and Promotion Agreement (BIPPA) was signed.
2015 – Madeshi issue and unofficial blockade by India.
2023 – Treaty of Transit signed. It will give Nepal access to India's inland waterways. This will enable Nepal
to use Indian ports such as Haldia, Kolkata, Paradip and Visakhapatnam for its third-country trade. It
will also reduce transportation costs and time for Nepalese exporters and importers.
2024 – Nepal’s NPR100 currency note has new map that includes disputed Lipulekh, Limpiyadhura and
Kalapani.
2025 – India and Nepal have amended the Treaty of Transit between the two countries to facilitate the
movement of rail-based freight between Jogbani in India and Biratnagar in Nepal, including bulk cargo.

Economic:
• India is Nepal’s largest trading partner, accounting for 64% of the Nepal’s total trade.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• India accounts for two-thirds of Nepal’s exports i.e. nearly 68% of Nepal’s exports went to India, while
about 56% of Nepal’s imports came from India.
• India is also Nepal’s largest investment partner.

India remains Nepal’s largest trade partner, with $7.8 billion worth of annual trade taking place in FY 2023-
24. This includes $7.041 billion USD of exports from India to Nepal and $829.71 million USD of exports
from Nepal to India.

The total economic assistance earmarked under ‘Aid to Nepal’ budget in FY 2022-23 was Rs 6.8 billion. India
is the largest source of FDI in Nepal, accounting for more than 33% of the total FDI stock in Nepal, worth
nearly USD 500 million. India and Nepal have also signed the Double Taxation Avoidance Agreement
(DTAA) in November 2011. The bilateral remittance flow is estimated at approximately $ 3 billion (Nepal to
India) and $ 1 billion (India to Nepal).

Multilateral Cooperation:
• BBIN
• SAARC
• NAM
• BIMSTEC

Defence Cooperation:
• Since 1950, India and Nepal have been awarding honorary rank of General to each other’s Army Chief.
• The ‘Indo- Nepal Joint Military Exercise ‘SURYA KIRAN’ is conducted alternately in India and in
Nepal.
• Currently, about 32,000 Gorkha Soldiers from Nepal are serving in the Indian Army.
• India has been assisting the Nepal Army (NA) in its modernisation by supplying equipment and
providing training.
• Assistance during disasters, joint military exercises, adventure activities and bilateral visits are other
aspects of India’s defence cooperation with Nepal.

Power:
• India and Nepal have a Power Exchange Agreement since 1971 for meeting the power requirements
in the border areas of the two countries.
• Three cross-border transmission lines were completed recently with GoI assistance: 400 kV
Muzaffarpur-Dhalkebar line (2016); 132 kV Kataiya-Kusaha and Raxaul-Parwanipur lines (2017).
• India is currently supplying a total of about 600 MW of power to Nepal, assisting Nepal to overcome
power shortage in the country.
• The cross-border transmission lines have been augmented and the 106 kms long Koshi corridor double
circuit transmission line 220 kV completed under GOI Lines of Credit to Nepal was handed over to
Government of Nepal in 2021.
• South Asia’s first cross-border petroleum products pipeline, connecting Motihari in India to
Amlekhgunj in Nepal was inaugurated in 2019.
• Long-Term Power Trade Agreement: In 2023, both signed an agreement targeting the import
of 10,000 MW of electricity from Nepal in the next 10 years.

2015 Earth Quake:

When Nepal was hit by a massive earthquake in 2015, India was the first to respond to this tragedy and swiftly
dispatched National Disaster Response Force (NDRF) teams under, Operation Maitri. The total Indian relief
assistance to Nepal amounted to over US$ 67 million. The Government of India announced a post-earthquake
reconstruction package of US$ 1 bn.

People-to-People ties:

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
India and Nepal extend visa-free entry in their respective territories to each other’s nationals. Nearly 8 million
Nepalese citizens live and work in India. Around 6 lakh Indians are living/domiciled in Nepal. Indians
account for about 30% of foreign tourists in Nepal.

GoI provides more than 1,500 scholarships to Nepalese students each year, for courses in India as well as
Nepal, across various disciplines. Since 2001, around 40,000 Nepalese students have been direct beneficiaries
of these scholarship schemes under the ITEC programme, and Colombo Plan etc.
• Professional training is offered annually to about 250 officials from Nepal at various technical
institutes in India.
• Nepal PM KP Oli was one of the first regional leaders to condemn the terrorist attack in Pahalgam
and, subsequently, India accommodated Nepalese citizens while airlifting stranded nationals from Iran
against the backdrop of the Iran-Israel conflict.

Challenges:
• Big brother perception of India by Nepal.
• Nepal often accused India of interfering in internal matters
• Madeshi issue and 2015 unofficial blockade by India
• In 2015, the Nepali Congress government adopted the new Constitution, ignoring India’s concerns.
• In 2020, Nepal blocked all Indian news channels barring Doordarshan citing foreign channels found
to be indulging in character assassination of Nepalese citizens and leaders.
• In 2020, the Nepali parliament approved a new map invading Kalapani and two other areas in the state
of Uttarakhand (Lipulekh and Limpiyadhura) as Nepalese territory into its Official maps.
• Human trafficking: of women into India from Nepal.

Border Issues:
• Human trafficking (women particularly), Drug trafficking, Counterfeit currency across borders.
• India based terrorist org. like ULFA, NDFB, KLO (Kamtapur Liberation Org.) have their
operations in Nepal.
• Kalapani-Limpiyadhura-Lipulekh trijunction area in western Nepal and Susta area in southern
Nepal. Both countries claim these areas as part of their territory based on different historical maps and
treaties.
• The dispute flared up in 2020 when India inaugurated a road linking Dharchula in Uttarakhand
with Lipulekh pass near the China border, which Nepal objected to as a violation of its sovereignty.
Nepal then issued a new political map that shows Kalapani-Limpiyadhura-Lipulekh as part of its
territory. India rejected this map as “artificial enlargement” of Nepalese claims.
• Issues related to trans-border criminal activities and smuggling of gold; narcotics; Fake Currency
Notes (FCN), prohibited/restricted category of goods, such as e-Cigarettes, e-lighters, certain
varieties of garlic and other cases of commercial frauds, including sensitive goods were also
deliberated.

COVID assistance:
India had supplied more than 23 tonnes of medicines and medical equipment to Nepal on Grant basis during
the first wave of COVID-19. India till date has supplied more than 9.5 million doses of Covid-19 vaccines to
Nepal, both on grant and commercial basis. The total Covid-19 assistance provided to Nepal is more than
USD 7 Million.

China factor:
By playing the China balancing card as a last resort, Nepal often hopes to get Delhi to pay attention to several
problems that Indian diplomacy neglects or forgets about. China is mooting to construct the Trans-
Himalayan Network as part of its BRI project.
• India is worried about expanding Chinese footprint in Nepal.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Nepal's Prime Minister K.P. Sharma Oli signed a Belt and Road Initiative (BRI) Cooperation
Framework Agreement with China in December 2024, during his official visit to China.
• Kathmandu’s support for Chinese BRI (Belt & Road Initiative)
• Nepal even said “Hongkong is an internal matter of China” which it didn’t do with J&K
• China is believed to be also concerned with the Millennium Challenge Corporation (MCC), under
which the US has offered $500 million to Nepal as grant to build transmission lines and strategic roads
as part of America’s Indo-Pacific strategy.

Nepal has increasingly used China as a counterweight to India, embracing Chinese investment in highways,
hydropower, and cross-border connectivity. Faster execution of Chinese-backed projects has reinforced
perceptions of efficiency, even as Nepal remains structurally dependent on India for trade and transit—an
enduring reminder that geography still sets limits on strategic choice.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-Afghanistan
Relations between the people of Afghanistan and India can be traced back to the Indus Valley Civilisation.
In 305 BCE, they ceded much of it to the Indian Maurya Empire as part of an alliance treaty.

“Our ties are as ancient as history. Over the mighty Hindu Kush and through the forbidding ‘Khyber pass,
monk’, merchants and monarchs have linked us through knowledge, culture, religion, commerce and
kingdoms” – Prime Minister Narendra Modi

Khan Abdul Ghaffar Khan of Afghan was a prominent leader of the Indian independence movement and
active supporter of the Indian National Congress.

If we go by Mandal theory, Afghan is India’s natural ally because our enemy’s enemy is our friend.

1950 – Afghanistan and India signed a “Friendship Treaty”.

1999 – India became one of the key supporters of the anti-Taliban Northern Alliance.

1999 – Indian Airlines Flight 814, commonly known as IC 814, was hijacked by the Taliban en route from
Kathmandu, to New Delhi, and was landed in Kandahar, Afghanistan.

2003 – India and Afghanistan entered into a preferential trade agreement. It opened a vast Indian market
for Afghan products, with substantial duty concessions, ranging from 50 to 100%.

2005 – India proposed Afghanistan’s membership in the SAARC.

2011 – Strategic Partnership Agreement was signed.

2016 – Prime Minister Narendra Modi was conferred with Afghanistan’s highest civilian honour, the Amir
Amanullah Khan Award.

2017 – India and Afghanistan established a direct air freight corridor connecting Kabul to New Delhi to
ensure trade connectivity.

2021 – Taliban takeover of Kabul and India pulled out all its diplomats and officials from the country.

2022 – In June 2022, India re-opened its embassy in Kabul. India had re-established diplomatic presence in
the country by deploying a `technical' team at the Indian mission in capital Kabul.

2023 – Afghanistan closes embassy in India citing lack of diplomatic support.

2024 – In January, India was among 10 countries that participated in a Regional Cooperation Initiative
meeting of diplomatic representatives convened by the Taliban administration in Kabul. Indian govt. doesn’t
officially recognise the Taliban regime.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

2025 – Afghanistan’s Foreign Minister Amir Khan Muttaqi visits India. India’s announced that it is upgrading
its technical mission in Kabul to a full embassy.

Afghan is considered as ‘Graveyard of empires’

a) The fall of Alexander (in Bactria),
b) disintegration of USSR, and
c) the decline of US hegemony were started in this region.

India has opted to pursue a ‘soft power’ strategy to engage Afghanistan, preferring to contribute substantially
in the civilian sector rather than entering the everlasting war.

Geo-Strategic importance of Afghanistan:

• Afghanistan is key in reaching Central Asian nations.
• Afghanistan is key for TAPI Pipeline
• Afghanistan is key for India’s Look West Policy in the Middle East.

Commercial Relations:
• India is the largest market in South Asia for its products.
• The total bilateral trade between India and Afghanistan for FY 2019-20 was at US$ 1.5 billion.
• India Exports to Afghanistan was US$333.52 Million during 2024, according to the United Nations
COMTRADE database on international trade.
• India provides duty free access to the Indian market for Afghanistan's exports, since the latter is a
Least Developed Country (LDC) & also under SAFTA as a fellow SAARC member.
• In order to expand trade to India, the Afghan government in collaboration with Government of India
launched a dedicated Air Freight Corridor in 2017.
• Exports from India to Afghanistan have dropped to $24 million in August 2021 after the Taliban's
takeover. However, the exports have risen to $48 million in 2022.
• Afghanistan has been a major destination for Indian sugar, and India one of the biggest importers of
Afghan spices and dried fruits, especially apricots and figs.
• In Nov, 2025, Afghan Commerce Minister Nooruddin Azizi traveled to New Delhi to negotiate
expanded economic ties, including increased cargo flights to Kabul from Indian cities like Delhi,
Amritsar, and Mumbai. The discussions focused on tariff reductions, tax exemptions and a bilateral
trade target of $1 billion.

Development Cooperation:
• India has given a developmental aid of around $3.1 billion since 2001.
• In 2016 India helped Afghan rebuild the– Afghan-India Friendship Dam, earlier known as Salma
Dam.
• Construction of Afghanistan Parliament by India.
• Afghanistan is benefitting from the South Asia Satellite (SAS) or SAARC Satellite of India.
• India has built the Zaranj-Delaram road to boost bilateral economic relations with Afghanistan. The
highway provides land-locked Afghanistan an alternative way to access the Arabian Sea and the
Persian Gulf, instead of relying solely on the unstable Pakistani routes.
• Both launched a New Development Partnership and India agreed to implement some important new
projects such as the Shahtoot Dam and drinking water project for Kabul that would also facilitate
irrigation, water supply for Charikar City, road connectivity to Band-e-Amir in Bamyan Province
that would promote tourism, low cost housing for returning Afghan refugees in Nangarhar Province
to promote their resettlement, etc.
• The training and capacity building of Afghan National Police personnel is being done in India.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Political Cooperation:
• Afghanistan gave up its bid for UNSC non-permanent seat for India in the Asia-Pacific region in
2021-22.
• Indian govt. during the Intra-Afghan talks backed the Civilian govt. against the Taliban.
• India extended support for an “Afghan led, Afghan owned and Afghan controlled” peace process
throwing its weight behind the Civilian govt. in the current Intra-Afghan talks.

Natural Resources:
• Afghanistan holds more than 1,400 mineral fields containing resources such as barite, chromite, coal,
copper, iron ore, gold, lithium, gemstones and natural gas.
• China has long had its eyes on Afghanistan, often referred to as the “Saudi Arabia of lithium,” and it
has now officially accepted an ambassador representing the Taliban government. A decade ago, U.S.
geologists estimated Afghanistan's mineral wealth, including lithium at $1 trillion worth in Afghan.
• Recent estimates suggest the worth of untapped minerals could be as high as $3 trillion. Afghanistan
also sits on significant reserves of copper, gold, gemstones, beryllium, iron ore, marble, oil & gas,
and rare earth elements. The country is also home to other rare earths that are used in the clean energy
sector, including Neodymium, praseodymium and dysprosium.

People-to-People ties:
• India offers scholarships to Afghanistan students under ITEC (Indian Technical and Economic
Cooperation Programme) and ICCR (Indian Council for Cultural Relations).
• On an average, more than 3,500 Afghan nationals undergo training/education in India every year.
• More than 15,000 Afghan students pursue education in India on self-financing basis.
• Cricket has been a major factor in promoting people-to-people ties between the two countries.

Post the Taliban's takeover (Jan 2022):

• India has sent 500,000 Covid vaccine doses to Afghanistan as part of humanitarian aid for the people
of Afghanistan.
• In February 2022, India sent 50 trucks carrying 2500 MT of wheat as humanitarian aid to Afghanistan.
• In June 2022, India sent 27 tonnes of emergency relief assistance for the people of Afghanistan in the
aftermath of the 5.9-magnitude earthquake.
• In February 2023, India announced development aid of Rs 200 crores to Afghanistan.
• In March 2023, India announced it would send 20,000 tonnes of wheat to Afghanistan through Iran's
Chabahar Port.
• As of 2023, there were around 14,000 Afghan students studying in India with scholarship support
from different institutions like the Indian Council for Cultural Relations (ICCR).

International Recognition of Taliban:

• No foreign government except Russia, including India, officially recognises the Taliban
administration.
• Last September, 2023, China became the first nation to appoint an ambassador to Kabul under
Taliban rule. The Taliban's ambassador to China, Asadullah Bilal Karimi, is seen presenting his
credentials to Chinese President Xi Jinping.

Issues:
• While there is immense potential to expand bilateral trade, the difficulties in transit via Pakistan was
a major hurdle in expanding the trade ties.
• With Taliban to share power with the Civilian govt. after the American withdrawal there is a threat of
Terrorism emanating from Afghanistan and destruction of Indian-backed development.
• Golden Crescent comprising of Iran, Afghan, and Pakistan is a worry for India, especially with respect
to the issue of drug abuse in Punjab.
• On the Kashmir issue, Afghanistan has not publicly supported India.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Terrorism – emanating from Afghanistan and its challenges. In 2021 when the Taliban had come to
power, many had written off India with dire forebodings about the Islamic crescent at India’s frontiers
and the threat of ISI-backed Taliban terrorists to wage a full-scale battle in Kashmir, though the
situation is not that intense.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Latin America — a region India has neglected so far:

• India’s foreign policy till now towards Latin America is marked by “adhocism and inconsistency”.
• Traditionally, India’s engagement with Latin American countries has been guided by its role in the
Non-Aligned Movement (NAM) and now by the cause of ‘Global South’.

History:
India and Latin American nations were both colonies of European powers. After achieving independence,
both adopted socialist policies – import-substitution-industrialisation. Many Latin America and the Carribbean
(LAC) countries joining the Non-Aligned Movement (NAM). India also supported LAC countries against
United States (US) interventions in the United Nations (UN) and other multilateral gatherings, but this did not
address the deficit in relationship. There has also been a lack of the cultural, linguistic and diaspora
connections between the two regions.

1947 – Mexico was the first Latin American country to recognise India after its independence.
• Consequently, formal diplomatic relations were established between Mexico and India in 1950.
• Vijaya Lakshmi Pandit was India’s first ambassador to Mexico, and Jawaharlal Nehru visited Mexico
in 1961.

1959 – When Fidel Castro ousted the Batista regime in Cuba in 1959, India was one of the first countries to
recognise the new government and to establish an embassy in Havana.

1968 – Indira Gandhi embarked on an eight-nation tour of the region, calling it a “voyage of discovery"

Three G20 economies, i.e. Brazil, Argentina and Mexico (BAM), are in Latin America. Latin America was
always relegated to the far end of the three concentric
circles that drive India’s foreign policy—with the
innermost being the immediate neighbourhood,
followed by Asian countries and strategic partners.

Trade & Economics:

• Bilateral Trade: In FY 2023-24, India-Latin
America bilateral trade reached
approximately US$ 45 billion, with exports
worth US$ 20 billion and imports valued
at US$ 25 billion. Major Indian exports
include pharmaceuticals, automobiles, and
engineering goods, while imports largely
consist of crude oil, minerals, and agricultural
commodities. The trade has the potential to
reach $100 billion by 2027.
• India is now amongst the top five largest export destinations for the Latin American region, and is
one of the top 10 largest trading partners of Argentina and Brazil.
• India also exports a billion dollars’ worth of generic medicines to Latin America, which has helped
these countries reduce the cost of healthcare.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• The region has emerged as an important market for the Indian pharmaceutical and automobile
industries.
• Energy Security: Venezuela, Brazil, and Mexico have been traditional oil suppliers to India. With
India targeting net-zero emissions by 2070, Latin America’s lithium reserves (critical for battery
production) are becoming increasingly important.
• In the sphere of energy Latin American countries including Brazil, Costa Rica, Suriname, and
Venezuela are the members of International Solar Alliance. Peru is a founding member of the
International Solar Alliance.

Strategic and Diplomatic Significance:

• Latin America holds significant voting power in international organizations like the United
Nations, G-77, and Non-Aligned Movement.
• India’s diplomatic outreach strengthens mutual cooperation on issues such as climate
change, multilateralism, and global governance reforms, especially in pressing for a permanent seat
at the UN Security Council.

Opening of New Missions:

• India has recently expanded its diplomatic presence, inaugurating embassies in Paraguay (2022) and
planning new missions in Dominican Republic and Ecuador under its Mission Expansion Plan to
enhance bilateral engagement.

Mexico:
• India has a privileged partnership with Mexico.
• It is the second largest economy in the region after Brazil.
• India and Mexico bilateral trade in 2023 was valued at approximately US$10.5 billion. Crude oil also
occupies 75% of export basket from Mexico.

Brazil:
• India has a strategic partnership with Brazil.
• Both are members of BRICS, IBSA & G4.
• Brazil was instrumental in guiding India in the negations for the India-MERCOSUR Preferential
Trade Agreement (PTA) deal.
• Since 2006 ONGC has invested more than US$400 million in Brazil.
• India’s average bilateral trade with Brazil increased from US$7.29 billion for the five-year period
2014–2019 to US$11.89 billion in 2020–2024, a 63 percent growth.
• Bilateral trade peaked at US$16.8 billion in 2022, a result of economic recovery following the
COVID-19 pandemic and the Russia-Ukraine war. Before the war, India imported large quantities of
sunflower oil from Ukraine, which was subsequently replaced by soybean oil from countries such as
Brazil and Argentina.
• In 2016, India signed a Social Security Agreement with Brazil.
• India sent much needed “Hydroxychloroquine” drugs to Brazil during CoVID-19.
• Brazil is home to the largest Indian investment in the Latin American region, both by value
(estimated by India’s Ministry of External Affairs at US$6 billion) and by the number of companies.
• Brazil is India’s largest trading partner in the Latin American Countries, & LAC region. The
bilateral trade in FY 2025 was 15 billion US dollars. India and Brazil have set an ambitious target to
boost their bilateral trade to 30 billion dollars by 2030, up from the previous goal of 20 billion dollars.
• Brazil, follows China as the world’s second-largest holder of critical minerals, its resources are
used across a range of fields, including electric vehicles, solar panels, smartphones, jet engines, and
guided missiles.
• Brazil is among the world's top producers of iron ore and holds large reserves of minerals critical to
steelmaking.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Argentina:
• India’s trade with Argentina is modest in comparison to India-Brazil trade. India’s average bilateral
trade with Argentina stood at US$2.84 billion over the five-year period 2014–2019 and rose to
US$4.37 billion in 2020–2024. India holds greater significance as a trading partner for Argentina than
the other way around.
• In 2024, 52 percent of Argentina’s vegetable oil exports – composed of soybean oil and sunflower
oil – were shipped to India. It is no surprise that vegetable oils comprise nearly 80 percent of
Argentina’s exports to India, with gold, timber, and leather constituting most of the remaining export
basket.
• Although two other significant issues must be sorted out —lithium, an essential component of
renewable energy production found in abundance in Argentina, and the HAL Tejas, India’s Light
Combat Aircraft, which Argentina is considering importing from India.
• In 2024, India signed a deal on acquiring five lithium blocks for exploration and development in
Argentina through the state-owned Khanij Bidesh India Ltd (KABIL).
• Indian companies employ 8,100 people in Argentina, and more than 16,000 people in Brazil.
• A handful of Indian companies in the technology, automobile, agrochemical, and consumer products
sectors have a sizable presence in Argentina.

Venezuela:
• India’s most strategic commercial partner in the region & home to the world’s largest petroleum
reserves.
• In 2024-25, India-Venezuela bilateral trade was around $1.8 billion.
• Bilateral ties have seen setbacks, since October 2020, India has not imported any crude petroleum oil
from Venezuela due to the looming threat of American secondary sanctions (similar to the case of Iran,
which also stopped oil exports to India in late 2019).
• Before the American sanctions came into effect in 2019, Venezuela accounted for up to 10 percent of
India’s total oil imports.

Lithium Triangle:
• Argentina, Chile and Bolivia.
• It has been estimated that South America’s Lithium Triangle holds about 75% of the world’s lithium
reserves.
• Lithium is particularly used in the Electric vehicular batteries & as a drug to treat bipolar disorder.
• If India’s FAME scheme were to succeed, it may fundamentally change India’s relationship with Latin
America because of dependency on Lithium reserves.
• In 2023, India is in negotiations and close to striking a deal on acquiring five lithium blocks for
exploration and development in Argentina through the state-owned Khanij Bidesh India Ltd (KABIL).

Critical Minerals Security: KABIL signed an agreement with CAMYEN to acquire five lithium blocks in
Argentina, marking the first lithium exploration and mining project by an Indian state-owned company.
• Chile, Argentina and Bolivia, called the Lithium Triangle, hold over 75% of global reserves.

Others:
• Of the remaining Latin American countries, three others stand out as critical suppliers of minerals and
hydrocarbons, and as growing markets for Indian exports.
• Others like Ecuador, Paraguay, Dominican Republic, and Central American countries like Panama and
Guatemala, may not trade as much with India but are nonetheless important destinations for Indian
exports and investments in sectors like information technology (IT) and pharmaceuticals.
• Many Latin American countries rely on India for cancer and HIV drugs, and much-needed vaccines.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
Recent focus by India on LAC:
• During the last one year (in 2024), India has opened its Mission in Bolivia, while Honduras and St.
Kitts & Nevis have opened their Missions in Delhi. The increased political engagements during the
last one year have further provided a renewed momentum to our relationships.
• 2025 – PM Modi visited Trinidad and Tobago, Argentina and Brazil, and participation in
the 17th BRICS Summit in Rio de Janeiro.
• During the visit, President Lula conferred on Prime Minister Modi Brazil’s highest civilian honour,
The Grand Collar of the National Order of the Southern Cross.
• PM Modi in July visited Argentina on his first standalone bilateral visit by an Indian Prime Minister
to the South American country in nearly six decades.
• PM Modi also visited Guyana and Trinidad & Tobago in the recent times.
• Dr. S. Jaishankar, Hon’ble EAM visited Guyana, Panama, Colombia and Dominican Republic in Apr
2023.

Pacific Alliance (Alianza del Pacífico):

• This is a Latin American trade bloc, formed by Chile, Colombia, Mexico and Peru, which all border
the Pacific Ocean.
• They are also known as Pacific Pumas.
• Indian can try to enter into it expand its footprint in the region.
• India was granted ‘observer’ status in the bloc in 2014.

Soft Power:
• "There are more yoga centres in Brazil than in India,” says Hardeep Singh Puri, India’s former
ambassador to Brazil.
• Indian technical and economic collaboration (ITEC) scholarships, yoga, classical dance and music,
etc.

Growing Chinese Profile:

• India’s presence in Latin America is dwarfed by China’s. India’s annual trade of US$30 billion to
US$50 billion with Latin America is a mere shadow of China’s US$450 billion (2022).
• Chinese investments in the region, estimated to be roughly US$159 billion, and their loans of
US$136 billion, can only be compared with the US and Europe.
• Latin America also received 24 percent of the loans issued by official Chinese institutions from 2005
to 2021, behind Asia and ahead of Africa.

China overtook the US to become the largest export destination for Latin American countries like Brazil,
Chile and Peru, and replaced the European Union (EU) as the second largest trade partner of the region in
2017.

Chinese Presence as of 2025:

• China’s demand for the region’s natural resources, ranging from extractives to agricultural goods,
continues to fuel China-Latin America trade, which reached $518.47 billion in 2024, up 6% year-
on-year.
• China was the destination for about a third of the region’s mineral exports in 2023.
• The region supplied approximately 75% of China’s total soybean imports and nearly all (98%) of
China’s imports of lithium carbonate in 2024.
• Latin America has also long been a vital market for Chinese goods. Even as China’s exports to the
region declined 2.4% in 2023, Chinese electric vehicle exports to Latin America grew 55%, according
to China Customs data, totaling $4.2 billion.
• Exports from China to Latin America climbed again—by 13%—between 2023 and 2024, including
sizeable sales of high- and low-tech goods.
• Mexico, Colombia and other countries have also continued to import substantial quantities of
industrial machinery, telecommunications equipment and consumer electronics from China,

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
contributing to steady export growth in those sectors. Moreover, if U.S. tariffs on Chinese goods
persist, Chinese exports could increasingly be diverted to Latin American markets.
• Massive infrastructure projects in the region have been announced by China, such as the Bi-Oceanic
Railway between the ports of Santos in Brazil and Callao in Peru, and the Canal project in Nicaragua.

Key differences that separate India’s and China’s presence in Latin America:
• While China has a proactive Latin America policy outlined through white papers and supported by
political visits, India’s relationship with the region is driven by the private sector and economic
diplomacy, while politics and ideology remain secondary.
• India’s investments in Latin America are in the region’s value-added sectors, including in
pharmaceuticals, IT, automobiles and manufacturing, in contrast to China’s investments that tend to
skew towards extractive industries and infrastructure.
• In contrast to China’s one-party rule, India is a democracy, like much of Latin America (with a few
exceptions). India’s socio-political structure has far more in common with Latin America than China
does, with similar challenges like multi-party coalitions, social unrest and protests, and political
corruption.
• Many Latin Americans resent Chinese imports, which flood their markets at the cost of local
businesses.
• Latin American governments are also worried by their growing dependence on Beijing’s largesse. By
contrast, India’s modest trade and investments are welcomed with virtually no opposition.
• Additionally, China’s outreach to Latin America and other regions has for years been closely linked
to its domestic economic agenda. The BRI, launched in its earliest form in 2013 and extended to
Latin America in 2018, was as much a tool to address China’s structural economic challenges, such
as excess construction capacity and steel production, as it was a diplomatic or foreign policy initiative.
• Around 2013, as the BRI began to take shape, and as global commodity prices fell, China’s
engagement with the region concentrated on large-scale infrastructure projects—frequently financed
by Chinese banks and executed by Chinese construction companies.

Chinese FDI & Investments in LAC:

• “New infrastructure” industries, including electric vehicles manufacturing, such as the battery, car,
and bus manufacturing taking place in Mexico and Brazil; other high-end manufacturing, including
medical and machinery manufacturing; ICT; renewable energy investments, such as solar parks in
Argentina and Chile and dams across much of the region; and urban infrastructure, including the still
slow-to-develop Bogotá metro project, accounted for 58% (around $[Link]) of total annual
Chinese FDI in the region in 2022 and over 60% of the total number of FDI deals announced by
Chinese companies that year.
• Chancay Port in Peru
• Chinese, Peruvian, and Brazilian officials are said to be discussing the Twin Ocean Railway with
renewed interest.
• Nicaraguan President Daniel Ortega sought support from China for a new proposed canal route.
• Even the long-defunct Nicaragua Canal continues to feature in China-Latin America discourse.
• In May 2025, China announced plans for a new wind, solar, and energy storage hub from CGN Power
• Urban mobility systems in Colombia, pharmaceuticals in Uruguay, digital economy, energy, and
mining in Peru, and 5G in Brazil, among other areas.

Challenges
• Geographical distance: Thousands of miles away, Latin America played a small role in New Delhi’s
strategic and geopolitical considerations.
• Last Frontier in Foreign Policy: Latin America is often relegated to the far end of the three
concentric circles that drive India's foreign policy, signifying its de-prioritization.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• Language Issues – Portuguese & Spanish issues. “India has been unable to open the embassies in
many Latin American countries because of a shortage of Spanish-speaking officers” Shashi Tharoor
said. With more Spanish speaking officers India can cover almost all of the Continent (except Brazil).
• Poor Connectivity: A primary obstacle is the lack of direct connectivity—both in trade routes and
diplomatic communication. Unlike China, which has established robust trade networks with the region,
India faces logistical challenges due to limited shipping services. The absence of direct flights between
major Indian cities and Latin American capitals complicates business travel and trade facilitation.
• High Transport Costs: Physical distance is a perceived reason for limited engagement, as direct air
and shipping links are considered uneconomical.
• Regional Integration Weaknesses: MERCOSUR faces internal divisions. (e.g., Brazil and
Uruguay seeking bilateral deals, Argentina's threat to leave).
• China Factor: China has established robust ties with Latin America and trade has registered a thirty-
five-fold increase since 2000. India’s trade with Latin America and the Caribbean (LAC) amounts
to less than a quarter of China.

Other Challenges:
• India’s average tariff on Latin American agricultural goods was 65 percent, more than 5 times
China’s average tariff of 12.5 percent. Even though Latin American tariffs on Indian goods were
lower—9.8 percent on manufactures— they were well above the OECD range of 4 to 6 percent. A 10
percent reduction in average tariffs on Indian products could increase exports of Indian goods by 36
percent to Chile and Argentina.
• India’s lack of uniform approach towards the region is one of the major challenges.
• Rivalries between countries like Brazil and Argentina for regional dominance is also affecting
India’s relations with the region. For instance, while India and Brazil are part of the G4 seeking the
UNSC membership, Argentina is part of the coffee club.
• Bilateral investments are relatively low. It is only 4% of India’s total outward investment i.e. $15
billion.

Areas of improvement:
• It also seems that India has not made much of an effort to engage Caribbean countries such as
Trinidad and Tobago, Haiti and Dominica.
• In 2018, PM Modi announced opening of 18 new embassies in the African region, India should also
look into the demands from the countries of Latin America.
• In 2010 the Inter-American Development Bank (IDB) in a study emphasized that, in order to boost
trade, both India and Latin America must lower tariffs and trade barriers.
• The region can also contribute immensely towards food security as Latin America region is five times
that of India and only has half as much population. India is importing pulses and oil seeds from many
of African and Southeast Asian countries at very high costs. It can negotiate with South American
countries that can give it an edge over existing suppliers in terms of prices.
• Latin America is also very rich in minerals such as copper, lithium, iron ore, gold and silver. It
gives India an opportunity to increase investments for their extraction as well as for their imports at
cheaper rates.
• The region is very important for India in order to achieve its global ambitions such as in order to pursue
its membership of the UNSC, the NSG and at various other negotiations like climate change,
terrorism, trade, etc.

What can be done to inject momentum into the ties?

• India must also promote Latin American studies, invest in shipping industries, and conclude
preferential trade agreements and free trade agreements at the earliest.
• Latin American languages must be encouraged in India to incentivise Indian professionals to take
jobs in these countries, and to promote trading ties.
• Concluding PTAs and FTAs at the earliest with different countries can increase India’s economic foot
print in the region.

Email: csbiasacademy@[Link] 6 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• The commerce ministry should revive its “Focus LAC” programme, which has previously
helped encourage and support Indian exporters to explore business opportunities in the region.
• Latin American economies have traditionally focused on commodity exports, creating an urgent need
for a paradigm shift toward a diverse economic partnership that includes technology transfer, joint
ventures, and sustainable development initiatives.
• Many Latin Americans resent Chinese imports, which flood their markets at the cost of local
businesses. Latin American governments are also worried by their growing dependence on China’s
largesse. By contrast, India’s modest trade and investments are welcomed with virtually no
opposition.

Conclusion:
• Potential is enormous; tip of iceberg has been explored until now
• India can and should view Latin America as one region, to develop a foreign policy that caters
specifically to the region—one that is anchored in economic diplomacy.

“We must ensure that distance is no longer an impediment for stronger ties,” – Jaishankar, EAM

“India’s ambition to become a global power required a footprint in Latin America” – Jaishankar, EAM

Email: csbiasacademy@[Link] 7 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-Bhutan
1949 – Indo-Bhutan Treaty of Peace and Friendship (revised in 2007).
2007 – Indo-Bhutan Treaty of Peace and Friendship revised in 2007. It paved the way for Bhutan to act
independently in foreign and defense affairs.
2013 – Jigme Khesar Namgyel Wangchuck, the King of Bhutan was the Chief Guest for the Republic Day
celebrations in India.
2016 – India-Bhutan Agreement on Trade, Commerce and Transit (an FTA estd.)
2021 – Bhutan's highest civilian award, “Order of the Druk Gyalpo” conferred on Prime Minister Narendra
Modi.
2022 – India-Bhutan SAT, the first satellite jointly developed by India and Bhutan, was launched from
ISRO’s Satish Dhawan Space Centre. It will provide high resolution images of Earth and, thereby, help
Bhutan in natural resources management.

The two Himalayan nations share a 'special relationship', making Bhutan a protected state, but not a
protectorate, of India. Open borders, close alignment and consultation on foreign policy, and regular,
open communications on all strategic issues are the hallmark of the relationship.
The basis for bilateral relations between India and Bhutan was formed by the Indo-Bhutan Treaty of Peace
and Friendship of 1949. Article 2 of the treaty critically gave India a role in guiding Bhutan’s foreign policy.
With the intent of infusing a strong bound of equality in the bilateral relationship, India in 2007 to amended
the 1949 Treaty of Peace and Friendship, paving the way for Bhutan to act independently in foreign and
defense affairs. The Golden Jubilee of the establishment of formal diplomatic relations between India and
Bhutan was celebrated in the year 2018.

India-Bhutan Friendship Treaty 2007

• India amended the 1949 Treaty to:
o Remove “guidance” clause
o Allow independent foreign & defence policy

Geo-Strategic Significance:
• Bhutan shares a 699km border with four Indian States: Assam, Arunachal Pradesh, West Bengal and
Sikkim.
• Nestled in the Himalayas, Bhutan serves as a buffer state between two Asian giants India and China.

Deliberate Isolationism/ Isolationist policy:

• Bhutan do not maintain diplomatic relations with any P5 nations (includes China). It is part of a deliberate
isolationist policy of limiting foreign influence in the state.
• For most of the 20th century, Bhutan embraced isolationism from the rest of the world to preserve its
unique culture and to avoid being dragged into great power politics.
• The fundamental goal of Bhutan’s foreign policy is to safeguard the sovereignty, territorial integrity,
security, unity, and enhance the wellbeing and economic prosperity of Bhutan.
• Jigme Dorji Wangchuck, the Third King decided to end the policy of self-imposed isolation and pursue the path
of planned socio-economic development. Bhutan commenced its first Five Year Plan (planned socio-economic
development) in 1961 with generous assistance from India.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Bhutan departed from its policy of following a gradual approach to establishing diplomatic relations with
development assistance as the main criteria in 2009 when Bhutan made a bid for a non-permanent seat in
the UN Security Council in 2012 and established diplomatic relations with 28 countries.

Commerce and Trade:

Our unique trade relations with Bhutan are governed by the 2016 India-Bhutan Agreement on Trade,
Commerce and Transit, which establishes a free trade regime between the two countries and also provides
Bhutan duty free transit of goods to/from third countries.
India has consistently been Bhutan’s largest trading partner - both as an import source and as an export
destination. Since 2014, India’s trade with Bhutan has almost tripled from USD 484 million in 2014-15 to
USD $1.7 billion in 2024-25, accounting for about 80% of Bhutan’s overall trade.
• India-Bhutan trade in 2025 shows a strong, growing partnership, with India as Bhutan's top partner,
exceeding, driven by free trade, major infrastructure like new rail links (Kokrajhar-Gelephu) & digital
integration (UPI Phase II), plus new commitments like a ₹4,000 cr Line of Credit.
India is also the biggest source of FDI, aid and loans. India investments in Bhutan, comprise around 55%
of the country’s total FDI. In 2022, Reserve Bank of India (RBI) signed an agreement with the Royal
Monetary Authority of Bhutan (RMA) for providing an additional currency swap support to the RMA of
up to USD 200 million equivalent in INR (approximately INR 1657 crore). RBI has started a new Framework
on Currency Swap Arrangement (FCSA) 2024-27 for SAARC countries and under the new framework,
Bhutan has availed INR 1500 Crore (15 Billion) under the INR window for a period of 6 months.

PM reiterated India's strong commitment to the economic development in Bhutan, highlighting the doubling
of India’s development support to Bhutan for its 13th Five Year Plan period (2024-29), the Government of
India has committed an assistance of Rs 10,000 crore.

Both countries also expressed satisfaction over the opening of the Integrated Check Post at Darranga (ICP),
Assam, which can boost tourism and economic activity in eastern Bhutan and the adjoining border areas of
Assam. It aims to facilitate smoother and more efficient cross-border trade and travel between the two nations.
It is expected to improve logistics, streamline customs procedures, and support economic exchanges,
particularly benefiting local economies on both sides.

Hydro-power cooperation:
• Hydropower is the corner stone of India-Bhutan ties.
• India also imports most of Bhutan’s surplus electricity, which accounts for about 40% of Bhutan’s
revenue.
• India buys power generated in Bhutan. Hydroelectricity has become one of the biggest revenue earners
of Bhutan.
• However, as hydropower projects require huge investment, Bhutan needs the help of other countries
in exploiting this form of energy.
• Consequently, the two countries signed an agreement covering cooperation in the hydropower
sector in 2009, with the Indian government having committed to assist Bhutan in developing a
minimum of 10,000 MW of hydropower by 2020 and import the surplus electricity.
• The 720 MW Mangdechhu was commissioned in August 2019 and handed over to Bhutan in December
2022.
• India has agreed to expedite delayed projects (Sankosh & Punatsangchchu, which has been stuck for
decades due to environmental and cost concerns.
• The Indian government has agreed to a long-pending demand from Bhutan to increase the power
tariffs for the Chhukha hydro-electric project, which began operations with India's help in 1986.
• India has agreed to discuss buying power from the Basochhu hydel project that was built with
Austrian support in 2008.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• The India-Bhutan energy partnership continues to expand under the 2024 Joint Vision Document on
India-Bhutan Energy Partnership. Further projects like the 1200 MW Punatsangchhu-I are
underway.
• The King and PM Modi jointly inaugurated the 1020 MW Punatsangchhu-II Hydroelectric Project in
November 2025. They welcomed the commencement of export of electricity from Punatsangchhu-II
to India. This milestone marks advancement in India-Bhutan bilateral cooperation in clean energy. The
project enhances Bhutan’s installed power capacity by about 40 per cent and strengthens regional
energy security.
• The works related to the resumption of works of 1200 MW Punatsangchhu-I hydroelectric project
and agreed to work for expeditious completion of the project. Once completed, Punatsangchhu-I will
be the largest hydroelectric project jointly developed by the two Governments.
• The Bhutanese side expressed appreciation for the announcement by the Government of India of a
concessional Line of Credit of INR 40 billion to fund the energy projects in Bhutan.

Military cooperation:
• Bhutan is an all-weather friend to India. Bhutan is a buffer state between India & China and has
Geo-strategic importance.
• A 2,000 strong Indian Military Training Team (IMTRAT) is permanently based in western Bhutan
to train the Royal Bhutan Army, while other units regularly cooperate with the Royal Bhutan Army.
• Bhutan’s support in 2003 to drive out United Liberation Front of Assam (ULFA) rebels during
Operation All Clear that were operating bases in Bhutan and using its territory to carry out attacks on
Indian soil.
• During the Doklam crisis between India and China in 2017, Bhutan fully supported India’s stand,
refusing to accept an offer of $10 billion from China as economic assistance.

GUJRAL Doctrine: don’t expect anything, be generous towards small neighbours. To quell the image
of “big brother syndrome”.

Fiscal Support:
• Bhutan is the largest beneficiary of India's foreign aid.
• India has been extending economic assistance to Bhutan’s socio-economic development since the early
1960s when Bhutan launched its Five-Year Plans.
• So far, twelve Five Year Plans of Bhutan have been completed, two of which were totally financed
by India (1st & 2nd).
• For the 12th Five Year Plan, India’s contribution of Rs. 4500 cr. will constitute 73% of Bhutan’s total
external grant component.
• In 2024 visit of PM Modi, India announced a support for Bhutan’s 13th Five Year Plan, from 5,000
crore to 10,000 crore.
Financial Technology:
The RuPay Card was launched in Bhutan in 2019, to enable acceptance of payments in Bhutan using RuPay
cards issued by Indian banks. This is meant to benefit Indian visitors in Bhutan and Bhutanese citizens who
travel and transit to India for education, tourism and work. In 2021, India’s Bharat Interface for Money
(BHIM) application was launched in Bhutan with the objective of promoting cashless payments between the
two nations.

Rail and Air Link:

• New Infrastructure projects include an Integrated checkpoint for trucks at Jaigaon, a checkpoint for
third country nationals and a cross-border rail link from Kokrajhar to Gelepu.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Bhutan is constructing its second international airport at Gelephu, near the border with India, and the
rail link project would help build the southern Bhutanese city into a hub for attracting international
investment.
• Infrastructure: India has extended grant assistance of Rs 2 Billion for the Gyalsung Infra Project.
• Bhutan is an integral part of India’s infrastructure initiatives for road, rail, integrated check points,
and also for energy exchanges on India’s grid, both of which are pushing sub-regional trade and travel
among India, Bangladesh, Bhutan and Nepal.

Multilateral Partnership:
• Bhutan’s unequivocally supported India on strategic issues on the international stage and at the United
Nations.
• Both India and Bhutan are founding members of SAARC.
• Both of them also share other multilateral forums such as BBIN, BIMSTEC, etc.

Assistance during the Covid-19 Pandemic:

Bhutan was the first country to receive the Made in India Covishield vaccines under Ministry of External
Affairs Vaccine Maitri Initiative. The total number of 5.5 lakh doses of Covishield were given to Bhutan
on a grant basis. In addition to vaccines, India has also delivered essential medicines including Paracetamol,
Cetrizine, Hydroxychloroquine and medical equipment including PPE kits, N95 masks, RT-PCR test kits
and 07 portable digital x-ray machines to Bhutan. Following the lockdowns in India, GoI has facilitated
repatriation of over 2000 Bhutanese nationals stranded in various parts of India to Bhutan.

People-to-People ties:
• India is the most popular educational destination for Bhutanese students -almost 4000 Bhutanese
students are enrolled in Indian Universities at any time, many of whom are also provided scholarship
by Govt. of India.
• In 2024-25, around 1500 Bhutanese students studying in Indian colleges and institutes received the
Ambassador’s Scholarship apart from a few hundred other scholarships. In recent years, 50 teachers
from India in the disciplines of Science, Technology, Engineering and Mathematics have been
recruited by RGoB in partnership with GoI for teaching at schools in Bhutan.
• Over 950 scholarships are being provided annually by GoI for Bhutanese students to study in India in
a wide range of disciplines including medicine, engineering, etc. under the ITEC (Indian Technical
and Economic Cooperation) Programme and the Colombo Plan.
• About 60,000 Indian nationals live in Bhutan, employed mostly in the hydro-electric power
construction and road industry. In addition, around 8000-10,000 daily workers enter and exit Bhutan
every day in border towns.
• King of Bhutan appreciated the presence of the Holy Piprahwa Relics of Lord Buddha from India in
Thimphu for public veneration during the Festival.

Digital Infrastructure:
• Cooperation in newer areas beyond the traditional realms of cooperation such as new STEM-based
initiatives, establishment of digital infrastructure such as the Third International Internet Gateway,
integration of Bhutan’s DrukRen with India’s National Knowledge Network – a key cooperation in
the domain of e-Learning, E-library project complementing Bhutan’s efforts at digital transformation,
e-learning, were also discussed.

Gelephu Smart city Project:

• Bhutan’s King Jigme Khesar Namgyel Wangchuck announced plans for an “international city” on
a 1,000+ sq. km. area bordering Assam, at the Changlimathang stadium in Thimpu.
• This Economic Corridor aims to connect South Asia with Southeast Asia via India’s northeastern
states and will enhance the connectivity.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Infrastructure Development: Includes India-Bhutan railway line to Gelephu, linking roadways,

trading points, and connections to Myanmar, Thailand, Cambodia, and Singapore.
• India has committed to improving roads, connecting border towns with railways, and
supporting Bhutan’s development.
• The leaders reviewed the progress in enhancing economic connectivity between the two countries, and
exchanged ideas on the Gelephu Mindfulness City initiative, a visionary project spearheaded by His
Majesty to catalyse Bhutan’s development and strengthen linkages with adjoining border areas in
India.

Conclusion:
In a world of growing opportunities India must not take its little neighbor for granted. Bhutan’s autonomy,
Sovereignty must be balanced with India’s geopolitical interests.

Issues:
• Bhutan is worried that too much trade, transport and tourism from India could put its environment at
risk.
• Bhutan held back from ratifying in the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles
Agreement (MVA) citing environmental reasons and vehicular traffic.
• Bhutan’s decision to levy entry charges on ever-increasing Indian tourists called ‘Sustainable
Developmen Fee’ (SDF), citing its effect on ecology.
• Militancy, Smuggling & livestock trafficking are few border issues
• From internal security perspective, illicit establishment of camps by militant outfits in the dense
jungles of south-east Bhutan is a cause of concern for both the nations.
• India’s sudden change in its power purchasing policy, rigid rates and refusal to allow Bhutan to join
the national power grid and trade with third countries like Bangladesh brought ties under strain.
• There is a growing feeling in Bhutan that India’s development of Bhutan’s hydropower production
is driven by self-interest as it is getting Bhutan’s surplus power at relatively cheap rates.
• There have been instances when India has meddled in Bhutan’s internal affairs. This has led to negative
perception of India in the minds of Bhutanese.
• “Big Brother Syndrome” – Some in Bhutan feel that Indians are using security issues as an excuse
to keep Bhutan under India’s control.
• Young Generation: In the past, Bhutanese used to visit India for higher studies and this enabled good
people-to-people ties. Bhutanese new generation is increasingly getting disconnected with India. They
are also preferring other developed nations for their further studies.
• Bhutan-China Boundary Deal: The possibility of boundary deal between China and Bhutan has
strategic implications for India. The Doklam plateau overlooks Chumbi valley, which overlooks the
Chicken’s neck (Silguri Corridor).

Bhutan-China ties:
• The recent was first ever by a Bhutanese Foreign Minister to China.
• Both appointed Technical Team (JTT) on the Delimitation and Demarcation of the Bhutan-China Boundary.
• Boundary disputes – Doklam Valley
• Strategic advantage – Silguri Corridor
• Bhutanese PM recently reassured India that any agreement with China would not harm India's interests.
• India would also lose its leverage over Bhutan as a buffer state.
• Belt and Road Initiative (BRI): If Bhutan participates in China's Belt and Road Initiative (BRI), it
might have implications for regional infrastructure development and connectivity. India has concerns
over the BRI's strategic and security implications.
• If Bhutan diversifies its economic ties with China, it could reduce its dependence on India and affect
India’s energy security.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Email: csbiasacademy@[Link] 6 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-China ties
• A Chinese monk, Fa Xian (Fa-Hsien, AD 399-414), visited India in AD 402, stayed for 10 years, and
after his return translated many Sanskrit, Buddhist texts into Chinese. His record of journeys Fo Guo
Ji (Record of Buddhist Kingdoms) is an important historical source.
• In the 5th Century AD Bodhidharma, a South Indian monk, became the first patriarch of the Shaolin
Monastery in China.
• Xuan Zang (Hiuen Tsang) visited India during Harsha Vardhana's reign in the 7th Century AD, in
search of Buddhist scriptures. His journey became part of traditional Chinese lore when narrated in a
later period book called "A Journey to the West".

1815 – India was the largest economy, followed by China.

1912 –Xinhai Revolution against the Qing dynasty
1913 – Tibet declared its independence without recognition by the subsequent Chinese Republican
government.
1938 – India provided medical assistance to China during the Second Sino-Japanese War.
• Dwarkanath Kotnis also known by his Chinese name Ke Dihua, was one of the five Indian physicians
dispatched.
1949 – formation of PRC under Mao
1950 – India became the first non-socialist bloc country to establish diplomatic relations with the PRC.
1951 – Tibet became incorporated into the PRC
• India severed its formal ties with the Republic of China (Taiwan)
• India respected One China Policy
1954 – Nehru visited China & Panchsheel was signed:
1. mutual respect for each other's territorial integrity and sovereignty,
2. mutual non-aggression,
3. mutual non-interference in each other's internal affairs,
4. equality and mutual benefit, and
5. peaceful co-existence.

1962 – Sino-India Border dispute.

1963 – China-Pakistan “Boundary Agreement”, Pakistan illegally ceded 5,180 sq. kms. of Indian territory
in PoK to China.
1967 – The Nathu La and Cho La clashes were a series of military clashes alongside the border of Sikkim,
then an Indian protectorate. The competition to control the disputed border land in Chumbi valley is seen as a
major cause.
1975 – Sikkim through a unanimous referendum joins India
1986 – India granted statehood to Arunachal Pradesh. The Chinese government proceeded to protest.
1987 – Operation Chequerboard was a high-altitude military exercise conducted by India along the Chinese
border in North East India.
• Military stand off
• Indian Foreign Minister N.D. Tiwari arrived in Beijing in1987 en route to Pyongyang, North Korea.
He carried with him messages from Indian leaders that there was no intention on New Delhi's part to
aggravate the situation.
1988 – Prime Minister Rajiv Gandhi’s landmark visit.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
2003 – China recognizes Sikkim as an integral part of India in exchange for India recognizing Tibet as PRCs
integral part which we already did in 1953.
• During Prime Minister Atal Bihari Vajpayee’s visit in 2003, India and China mutually decided to
appoint Special Representatives (SRs) to explore the framework of a boundary settlement.
• The Special Representatives (SR) mechanism on the India-China Boundary Question was established
in 2003, and 23 rounds of talks have been held so far.
2005 – established a Strategic and Cooperative Partnership for Peace and Prosperity.
2014 – BRICS NDB founded.
2017 – Doklam Stand off
2018 – first Informal Summit in Wuhan
2019 – Second Informal Summit in Mamallapuram
2020 – Galwan Clashes, a violent confrontation between Indian and Chinese troops in June in the Galwan
Valley, a disputed border area in the Himalayas. Soldiers attacked each other with iron rods and clubs,
resulting in the death of 20 Indian soldiers and at least 4 Chinese troops.
2024 – Further, Prime Minister Modi and President Xi met on the sidelines of the 16th BRICS Summit in
Kazan.
2025 – PM Modi attends the 25th SCO Summit in Tianjin, China
• the 75th anniversary of the establishment of diplomatic ties.

Former PM Indira Gandhi, once said “I can think of a time down the road in future when we might
have normal, peaceful relations with Pakistan, but never with China because China basically is an
expansionist power”

The bilateral ties between the two of Asia’s ancient civilisations dates back 2,000 years, and cemented by
Buddhism. Nehru said “the Challenges between India and China run across the Spine of Asia”. In 2012
Chinese govt. stated that “Sino-Indian ties” could be the most “important bilateral partnership of the
century”.

Lee Kuan Yew realized far earlier that China’s rise would necessitate a shift in the international order. “It’s
not possible to pretend that China is just another big player. This is the biggest player in the history of man”
– Lee Kuan Yew on rise of China

TRADE:
China is India’s Second largest trading partner, while India is China’s largest trading partner in South
Asia.
• India-China bilateral trade which was as low as US $2.92 billion in 2000 reached US $72.34 billion
till March 2015, making China India’s largest goods trading partner.
• Bilateral trade between India and China in FY25 stood at US$ 127.71 billion against US$ 118.40
billion in FY24. The India-China trade crossed US$ 100 billion for the fourth consecutive year in
FY25.
• India has the biggest single trade deficit (around $106 billion as of Dec, 2025) with China over any
other country. The growth of trade deficit with China could be attributed to two factors: narrow basket
of commodities, we export to China and market access impediments to Indian Information
technology and pharmaceutical companies to enter the Chinese market.

INVESTMENTS:
According to the Ministry of Commerce of China, Chinese investments to India in the year of 2023 was USD
60.37 million and cumulative Chinese investments to India was USD 3.2 billion till 2023 (since 2015).
According to DPIIT data, India’s cumulative Foreign Direct Investment into China till March 2025 (since
April 2000) was USD 2.5 billion.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
China is keen to make investments in India, especially in building 5G infrastructure. India, on the other side,
wants greater market access in China, and action by Beijing to address the trade imbalance.

People to People ties:

• Present estimates put the strength of the Indian community in China at around 30,000, a major portion
of which comprises of students.
• Ancient Indian monk-scholars such as Kumarajiva, Bodhidharma and Dharmakshema contributed
to the spread of Buddhism in China. Chinese pilgrims like Fa Xian and Xuan Zang and Dwarkanath
Kotnis are the symbols of Cultural contact between both.
• Yoga and Bollywood movies are becoming increasingly popular in China.

Pakistan Factor:
• Pakistan and China have become all-weather friends calling themselves as iron-brothers
• PM Modi on Chinese BRI i.e. CPEC said “Connectivity in itself cannot override or undermine the
sovereignty of other nations”
• The China’s Belt and Road Initiative (BRI), violating India’s sovereignty in J&K.
• China even constructed Gwadar port in Pakistan
• After India nullified Article 370 & restructured Kashmir’s political setup. Beijing has opposed the
move, and actively colluded with Pakistan internationally.
• China even tried to prohibit sanctions against Terror chief Masood Azhar.

Border issues:
• Galwan Clashes – Recent Military standoff in eastern Ladakh.
• China’s issuing of stapled visas to Indian citizens from Jammu and Kashmir in 2010, & also to the
citizens of Arunachal Pradesh.
• China calls Arunachal Pradesh as “South Tibet” or “Zangnan”
• Even in 2019, China expressed concern over the Indian Army’s Operation ‘Him Vijay’ exercise in
Arunachal Pradesh.
• Smuggling of tiger parts & rhino horns into China
• Smuggling of Chinese goods into India
• Tibet issue (Dalai lama staying in India)
• Aksai Chin issue

Hotline:
• Established between Military Headquarteres, i.e. Indian Army in Kongra La, North Sikkim, China's
PLA (People's Liberation Army) in Khamba Dzong, Tibet.
• Now, there are two hotlines each in eastern Ladakh (Chushul and Daulat Beg Oldi), Arunachal Pradesh
and Sikkim.

Indian Ocean & String of Pearls:

• China is encircling India. China’s military base in Djibouti in the Red Sea as well as ports of
Hambantota in Sri Lanka and Gwadar in Pakistan are few examples.

Brahma Chellaney, an Indian expert on security issues, described China as “an outside power” seeking a
naval presence in “India’s maritime backyard” in what he said was a provocation to India and others.

Current Issues:
• At the 13th Ministerial Conference (MC13) of the WTO in Abu Dhabi 2024, India opposed the
adoption of the China-led agreement on investment facilitation for development (IFD).
• India backs the Philippines in the South China Sea issue, EAM S. Jaishankar declared that “India
supports Philippines for upholding its national sovereignty” in 2024.
• The issue of trade imbalance and greater market access for Indian for more Indian products in China.
• China is the main reason for India not joining the RCEP.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• China Opposes India’s bid to NSG & even backs Pakistan for NSG membership
• China’s opposite stance to at UN India on various issues including Terrorism. Ex: China put a hold on
Masood Azhar’s designation as a “global terrorist” and delayed the procedure.
• China is against the UNSC reforms for which India is pitching for constantly
• Internationalising the Kashmir issue at UN (China often highlights the Kashmir Issue Internationally
while India doesn’t about China’s internal issues like Uyghurs, Taiwan, Hongkong, etc.)
• India sticks with the “One China Policy” recognizing Taiwan as an integral part of China while China
doesn’t reciprocate this in the Kashmir case.
• Bangladesh–China–India–Myanmar Economic Corridor (BCIM) is still in a limbo.
• Competence for economic clout over Africa i.e. Scramble for Africa.
• QUAD led by India is called by China as the “Mini-NATO” or “Asian NATO”
• Galwan Clashes 2020.
• Chinese BRI violates Indian Sovereignty by going through the PoK as CPEC
• India, Japan and Australia have formally launched the Supply Chain Resilience Initiative (SCRI)
with an aim to create a resilient, diversified, supply chain in the Indo-Pacific region.
• China objected to redrawing the maps of J&K & Ladakh.
• Home Minister’s vow in Parliament to “take back” Aksai Chin while rebuking Article 370.
• Recently, China was exempted from 5G trials in India. The Chinese companies Huawei and ZTE
were excluded.
• China’s desperate attempts to enter into SAARC. It is already an observer state in SAARC.
• China’s alleged support to the separatist outfits in the Northeast region of India.
• China repeatedly blocks India’s attempts at UN to designate Global terrorists particularly those from
Pakistan, which goes against the Regional Anti-Terrorist Structure (RATS) spirit of SCO. Ex: Abdul
Rehman Makki, Masood Azhar etc.
• Market Access: Chinese market access is not symmetrical. India’s competitive sectors — generic
pharma, engineering goods, specialty chemicals, food & agri-value products — do not get
frictionless access in China. Indian generic pharma faces non-transparent trial approvals. For agri
products, China imposes annual re-registration of Indian mango and grape exporters by its own
customs, even after prior certification by Indian authorities. This results in delays and higher
transaction costs.

India’s Dependence on Chinese Imports:

• Dependence is overwhelmingly concentrated in sectors tied to pharmaceutical security, digital
infrastructure, and energy transition. About 70 percent of India’s active pharmaceutical
ingredient (API) inputs, more than 40 percent of electronics components, and over half of solar
module components come from China. Diversification is underway, but Chinese suppliers remain
deeply embedded in India’s supply chains.
• Rare earth metals—essential for electric vehicles, smartphones, and defense technologies. China
controls over 90% of the global rare earth magnet market and has recently tightened export restrictions.
In April 2025, Beijing introduced stringent licensing requirements for key rare earth elements like
neodymium and dysprosium, vital for EV motors and electronic devices. This move has disrupted
global supply chains, including India's manufacturing sector. Indian automakers, such as Maruti
Suzuki, Tata Motors, and Bajaj Auto, have raised alarms about potential production halts due to these
shortages.
• India cannot yet match China on cost or scale. Even when firms purchase similar machinery, smaller
batch sizes push up unit costs. MSMEs rely on Chinese inputs because they ease working-capital
pressures.
• For India, the challenge is structural. It needs to boost exports in high-value sectors—IT services,
pharmaceuticals, green tech—while reducing dependence on Chinese supply chains for electronics
and pharmaceutical ingredients.

Management of Trans-border waters:

• China withholds the Hydrological data about the course of Brahmaputra leading to floods in India.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
• China has assured that the projects on the Brahmaputra river are run-of-the river projects and are not
meant for storing or diverting water.
• Arunachal Pradesh chief minister Pema Khandu expressed concern that the Siang and Brahmaputra
could "dry up considerably" once the dam was completed. He even called Chinese dam over
Brahmaputra as “water-bomb” & an existential threat to the tribes and livelihoods of Arunachal.
• A 2020 report published by the Lowy Institute, an Australian-based think tank, noted that "control
over the rivers [in the Tibetan Plateau] effectively gives China a chokehold on India's economy".

Areas of Cooperation:
• In 2014, China has invited India to participate in the Asian Infrastructure Investment Bank (AIIB)
— to steer development free from the influence of western-backed lenders such as the World Bank
and the Asian Development Bank (ADB). India is the second largest shareholder with 7.6%
shareholding after China.
• New Development Bank (NDB) which has established its office in Shanghai, opened its India
Regional Office in Gujarat International Finance Tec-City in June 2022. India is the biggest borrower
in NDB with 19 projects approved with a commitment of US$ 6.92 billion as of August, 2022.
• Today, geopolitical tensions mean that China and India mostly sit on opposite ends on major global
questions. There are some areas of commonality; both are nervous about climate change commitments
that may hamper their growth, and both abstained at the United Nations this year rather than
condemning Russia’s invasion of Ukraine.
• Both are part of Multilateral forums - BRICS, SCO, G20.
• G77 – The Group of 77 is the largest intergovernmental organization of developing countries from the
Global South in the UN, to promote their collective economic interests.
• India and China also decided to jointly implement projects in other countries, dubbed as the ‘2+1’
which they intend to start from Afghanistan – an outcome of Wuhan Summit
• Both Jointly train Afghan Diplomats under the "India-China Plus One" Framework.
• BASIC countries – Brazil, South Africa, India and China – cooperation in climate change
• The bilateral joint military exercise, Hand-in-Hand.
• Both stand on same page on climate change, both successfully bid for “phasing down” of coal instead
of “phasing out” of coal at CoP meetings.

Way Forward:
• As China's presence in South Asia grows, greater transparency in its actions and closer consultations
with India are also needed to help allay concerns.
• The Asia of rivalry will hold us all back. It is the Asia of Cooperation that will shape this country.

Conclusion:
Both must not allow “differences to escalate into disputes”. As the saying goes, a nation can pick its friends,
but not its neighbours. Panchsheel is more relevant today that it was before to foster cooperation and better
bilateral ties.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

India-Sri Lank
China is a “trade partner” while India a “close relative” – former Sri Lanka President Gotabaya Rajapaksa

Former Sri Lankan President Mahinda Rajapaksa once stated “India is our close neighbour. I always say,
India is my relation. Others are my friends”.

India is Sri Lanka's closest neighbour. The relationship between the two countries is more than 2,500 years
old and both sides have built upon a legacy of intellectual, cultural, religious and linguistic interaction.

The bonds of friendship between the two countries were laid by Buddhism and cemented by cultural ties. The
renunciation of claims over Kachchatheevu island and Indian PMs solidary visit past the Easter attacks of
2019 are the evidences of how both countries value each other.

• PM Modi highlighted the deep cultural connections between the two countries, noting that when the Pali
language was recognized as a “Classical Language” in India, it was celebrated in Sri Lanka as well.

1948 – Independence from British rule National Day.

1974 – then PM, Indira Gandhi ceded Katchatheevu to Sri Lanka under the "Indo-Sri Lankan Maritime
agreement" aimed at resolving the maritime boundaries in the Palk Strait.
1983-2009 – Sri Lankan Civil War
1987 – Indo-Sri Lanka Peace Accord signed. India backed the Lankan govt. on the condition that powers are
devolved to Tamil Provinces under the 13th Amendment.
1998 – India-Sri Lanka Free Trade Agreement (ISFTA) was signed.
2000 – India-Sri Lanka Free Trade Agreement (ISFTA) entered into force. It contributed significantly
towards the expansion of trade between the two countries.
2013 – India skipped the Commonwealth Heads of Government Meeting (CHOGM) summit held in Colombo
citing alleged human rights violations by Sri Lanka against its Tamil minority.
2015 – Sri Lankan President Maithripala Sirisena undertook his first official visit to India, and Modi paid a
return visit to Colombo in March 2015. He was the first Indian prime minister to do a stand-alone visit to Sri
Lanka in 28 years.
2019 – the first overseas visit of Indian PM Modi to Sri Lanka, in his second term.
• Easter Terror bombings (Intelligence)
• “SAGAR” (Security and Growth for All in the Region)
• “Neighbourhood First” policy
2022 – Economic Crisis & Line of Credit from India
2023 – ongoing negotiations over a more expansive trade deal known as the Economic and Technological
Cooperation Agreement (ETCA).
2024 – Presidential Elections & Parliamentary Elections
• The leader of the left-wing Janatha Vimukthi Peramuna party, Anura Kumara Dissanayake’s first
overseas visit & after victories in presidential (September) and parliamentary polls. It signals the
importance the new Sri Lankan President has attached to the relationship.
• Sri Lankan President Anura Kumara Dissanayake visited Bodh Gaya in Bihar's Gaya district and
prayed at the Mahabodhi Temple, a UNESCO world heritage site.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• The Sri Lankan president also assured that his country will not allow its territory to be used in “any
manner” that is detrimental to India's interest.

2025 – Prime Minister of Sri Lanka Harini Amarasuriya visited India in October, 2025

LTTE & the Civil War:

LTTE composed of the Tamil rebels fought the Sri lankan govt. aiming to create a separate Tamil nation
comprising the nation’s North and Eastern provinces. The ethnic group has been marginalized and oppressed
prior to taking arms.

The civil war ended in 2009, however Sri Lanka has been criticized of the War crimes and Crimes against
Humanity which included rapes, forced disappearances, summary executions, bombing of civilian areas etc.

India voted against Sri Lanka in 2009, 2012 and 2013 at the US-sponsored UNHRC resolution to investigate
alleged human rights violations in Sri Lanka. UNHRC adopts resolution against Sri Lanka and India
abstained from voting in 2022.

Commercial Relations:
• Both signed the India-Sri Lanka Free Trade Agreement (ISFTA) in 2000.
• India has also resumed negotiations with Sri Lanka for finalization of the Economic and Technology
Cooperation Agreement (ETCA) covering both goods and services.
• Sri Lanka remains among the largest trade partners of India in the SAARC.
• India has also been Sri Lanka's largest trade partner. The Merchandise trade between India and Sri
Lanka reached USD 5.5 billion in FY 2023-24, with India’s exports amounted to USD 4.1 billion
while Sri Lanka’s exports reached USD 1.4 billion.
• India is also one of the largest contributors to Foreign Direct Investment (FDI) in Sri Lanka with
cumulative investment of USD 2.25 billion till 2023, with USD 198.1 million in 2023 alone (source:
Central Bank of Sri Lanka).
• The FDI from India for the period Jan-Sep 2024 was USD 80.55 million (as per initial figures of BoI,
Sri Lanka).
• The main investments from India are in the areas of energy, hospitality, real estate, manufacturing,
telecommunication, banking and financial services.

Political relations:
• PM Modi visited Sri Lanka in 2019 to express solidarity with people of Sri Lanka after Easter Sunday
attacks.
• In 2020, a USD 15 million grant from India for promotion of bilateral Buddhist ties.
• An international flight started between Sri Lanka and the sacred city of Kushinagar.
• Sri Lankan President Gotabaya Rajapaksa visited India in 2019 in the first overseas trip as President.

Development Cooperation:
• India’s overall credit assistance to Sri Lanka amounts to over USD 7 billion, including concessional
loans, deferment of payment & swap agreements.
• India’s grant assistance to Sri Lanka currently stands at around USD 780 million, which includes
completed projects worth USD 390 million, ongoing projects worth over USD 210 million, and another
USD 178 million worth of projects in the pipeline.
• GoI has been carrying out people-oriented development projects across the 25 districts of Sri Lanka,
and cut across several sectors including infrastructure, housing, health, livelihood and
rehabilitation, education, agriculture, renewable energy, railways, industrial development etc.
• Our biggest grant assistance project is the construction of 60,000 houses under the four phases of
Indian Housing Project at a total cost of more than INR 1800 crore.
• India is also extending grant assistance of INR 300 crore towards implementing Sri Lanka Unique
Digital Identity project.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Besides the developmental assistance, India has provided multi-faceted assistance to Sri Lanka, close
to USD 5 billion, during the economic crisis in 2022 in lines of credit and grant assistance to the
island nation.
• These include USD 500 Line of Credit (LoC) for supply of petroleum products; Currency swap of
USD 400 million extended to the Central Bank of Sri Lanka (CBSL) by the Reserve Bank of India
(RBI); USD 1 billion credit facility for supply of food items, medicines, fuel and industrial raw
materials
• India is also building Hospitals and providing livelihood assistance to the fishing and farming
community.
• Sri Lanka also joined the National Knowledge Network (NKN), being the first SAARC country to do
so.

Connectivity:
• 2016 – Both countries signed an ‘Open Sky Agreement’ to improve connectivity. Sri Lankan Airlines
is now able to fly as many times as they like to six important Indian airports.
• In 2023, both nations signed an agreement on Unified Payments Interface (UPI) acceptance in Sri
Lanka, which is in effect since 2024.
• The launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka, since
October 2023.
• The resumption of air link between Chennai and Jaffna (since December 2022)
• Other notable connectivity initiatives under discussion include Economic Land Corridor, for
developing land access to Trincomalee and Colombo; multi-product pipeline connecting India and Sri
Lanka and the power grid interconnection.
• In parallel, discussions are ongoing to start ferry services between Rameswaram (TN) and
Talaimannar.
• India is Sri Lanka's largest source of tourists with around 3 lakh arrivals (~20 % of ~1.48 million total
arrivals) in 2023 and in 2024 with around 4.16 lakh arrivals (~20 % of 2.05 million total arrivals).

Infrastructure Partnership:
• India is building the Sampur Solar Power Plant.
• LNG will be supplied for Sri Lankan Power plants.
• New projects announced by PM including assistance for the rehabilitation of the signalling system at
the Maho-Anuradhapura railway section and Kankesanthurai Port (Jaffna).
• Along with housing, renewable energy and infrastructure, India will also cooperate for the
development of agriculture, dairy and fisheries in Sri Lanka. India will also participate in the unique
digital identity project in Sri Lanka.

Defence and Security Cooperation:

• India and Sri Lanka conducts joint Military ('Mitra Shakti') and Naval exercise (SLINEX).
• Sri Lanka participates in MILAN the multilateral naval exercise hosted by the Indian Navy.
• India also provides defence training to Sri Lankan forces.
• In December, 2024, PM Modi said that India will soon finalise a defence cooperation agreement with
Sri Lanka.
• A trilateral maritime security cooperation agreement was signed by India, Sri Lanka and the Maldives
to improve surveillance, anti-piracy operations and reducing maritime pollution in Indian Ocean
Region.
• In April 2019, India and Sri Lanka also concluded agreement on countering Drug and Human
trafficking.
• In the aftermath of the horrific Easter bombings, Sri Lankan Prime Minister thanked the Indian
government for all the “help” given. The alerts issued by Indian agencies before the attacks had
warned specifically about the use of radicalised suicide bombers attacking churches and the Indian
High Commission in Colombo.
• Cooperation on hydrography has also been agreed upon.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Colombo Security Conclave is an important platform for regional peace, security and development.
Under this, cooperation will be enhanced on topics like maritime security, counter terrorism, cyber-
security, fight against smuggling and organised crime, humanitarian assistance and disaster relief.

“both India and Sri Lanka recognize that their security interests are interlinked” – PM Modi

Human resource development:

• Under the Indian Technical and Economic Cooperation (ITEC) Scheme and the
• Colombo Plan, India offers scholarships to Sri Lankan students.
• Since 2017-18, Sri Lankan students can also appear for National Eligibility cum Entrance Test (NEET)
and IIT JEE (Advanced) entrance exams.
• Indian institutes under ‘Study in India’ Program provide technical expertise across a
• diverse range of courses.
• Sri Lankan civil servants are trained under aegis of National Centre for Good Governance. In addition,
a special course for 23 Sri Lankan Diplomats/officials at SSIFS was organized in 2024.
• A monthly scholarships to 200 students in the universities of Jaffna and Eastern Province from next
year.

Indian Community
There are around 14,000 People of Indian Origin (PIOs) who comprise Sindhis, Borahs, Gujaratis, Memons,
Parsis, Malayalis and Telugu speaking persons. Though their numbers (approximately) are much lesser as
compared to Indian Origin Tamils (IOTs), who comprise 15% of the population or about 1.6 million.

The IOTs are mostly employed in either tea or rubber plantations, with some section of
IOTs living in Colombo are engaged in business. In addition, there are about 7500 NRIs
engaged in various professional fields in Sri Lanka.

Challenges:
• The Tamils, who constitute 15% of the population, bore the brunt of the civil wars and are still waiting
for promises made by the government to be fulfilled. The 13th Amendment which promised the
devolution of powers to Provincial Councils is still a pipedream.
• The Eastern Container Terminal (ECT) Project, and the Mattala Rajapaksa International
Airport, which were initially granted to India were now taken back by the lankan govt.
• Both nations must try to sort out the arrests of fishermen in the Indian Ocean Region.
• Issue over the Sovereignty of the Katchatheevu Islands.
• India must revive SAARC, BIMSTEC to better focus on its neighbours.
• Sri Lanka’s Overdependency on China and the latter’s Debt trap Diplomacy.
• CEPA (Comprehensive Economic Partnership Agreement), that was proposed as a sequel to the
India-Sri Lanka Free Trade Agreement (ISLFTA) is in a limbo.

China’s role in Sri Lanka:

• Effectively, China has substantial control over two key infrastructure projects in Sri Lanka, the
China-backed Colombo Port City project worth $1.4 billion, and the Hambantota port on a 99-year
lease. It has also constructed the Mattala Rajapaksa International Airport. These projects are
within the ambit of China’s ambitious Belt and Road Initiative (BRI).
• “Debt trap policy” of China is one of the main reasons behind Sri Lanka’s economic crisis.
• Strategic Investments – Chinese investments have always been part of strategic reasons such as “Belt
& Road Initiative (BRI)”.
• China is Sri Lanka’s top single lender and also its biggest source of FDI, since at least 2015. Even in
trade terms, Sri Lanka imports more from China than India.
• In the past five years from 2017-2021, China has been the largest bilateral lender to Sri Lanka.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• Asian Development Bank (ADB) has been the largest multilateral lender in the past five years and
disbursed funds amounting to 610 million dollars in 2021.
• China offered "assistance to develop" Colombo International Airport and Hambantota port
(Hambantota was handed to a Chinese state-owned company in 2017 on a 99-year lease for $1.12
billion), Colombo Port City.
• India and the U.S. are both concerned that a Chinese foothold at Hambantota, on the island’s southern
coast, could boost its naval advantage in the Indian Ocean.
• China is Sri Lanka’s biggest bilateral creditor — would “assist” Sri Lanka’s restructuring of external
debt, a key condition to maintaining a $2.9 billion IMF bailout.
• China is Sri Lanka's largest bilateral lender owning 52 % of the USD 40 billion external debt (more
than half of total debt) when Sri Lanka announced its sovereign default in 2022, exemplifying the
Chinese ‘Debt-trap Diplomacy’. While China is reluctant to take a haircut on its loans but could extend
the tenure and adjust interest rates.
• Sri Lanka in 2022 ran out of foreign exchange to finance essential imports and declared a sovereign
default on its $46 billion foreign debt.
• India’s US$4 billion in aid saved Sri Lanka from economic anarchy,

India’s help in recent economic crisis:

• India had already announced support of $4 billion to Sri Lanka in 2022, in line with the government’s
“Neighbourhood First” policy. This is India’s largest bilateral aid program in recent times. It also
surpassed the IMFs 48-month bailout of about $3 billion.
• As part of the credit line, it has dispatched several shipments of much-needed fuel, food and fertilizers
to Sri Lanka in recent months.
• Since mid-March, over 270,000 metric tonnes of diesel and petrol have been delivered to Sri Lanka.
• In addition, around 40,000 tonnes of rice have been supplied under the recently extended credit facility.
• India handed over 44,000 metric tonnes of urea under a credit line extended to help Sri Lankan
farmers.
• In line with GoI’s vision of SAGAR – Security And Growth for All in the Region – the Indian Navy
delivered over 760 kgs of 107 types of critical lifesaving medicines, thereby providing critical medical
aid.

Areas of Cooperation:
• India abstained from voting on the resolution at the UNHRC critical of Sri Lanka’s war crimes.
• Sri Lanka after taking Eastern Container Terminal (ECT) from India has offered Weste Container
Terminal (WCT)in reciprocity.
• Recently the Sri Lankan cabinet has approved the development of Trincomalee Tank Farms jointly
with India.
• Both India and Sri Lanka in 2015 signed a civil nuclear energy deal.
• The Swami Vivekananda Cultural Centre (SVCC), the cultural arm of the High Commission of India,
Colombo, has been playing a key role in strengthening these ties and promoting people-to-people
contacts between India and Sri Lanka since its inception in 1998.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

ACT EAST POLICY

Timeline:
1992 – India launched the Look East Policy. India became a sectoral partner of ASEAN.
1996 – India became a dialogue partner of ASEAN in 1996.
2002 – India became a summit level partner with ASEAN (on par with China, Japan and Korea).
2012 – India-ASEAN ties upgraded to “Strategic Partnership”.
2014 – Act East Policy became a successor of Look East Policy under Modi govt.
2020 – India stays out of RCEP.
2022 – India-ASEAN ties upgraded to “comprehensive strategic partnership”. It marks 30 years of ASEAN-
India relations

Greater India/ Indian cultural sphere, or the Indic world: It is an area composed of several countries and
regions in South Asia, East Asia and Southeast Asia that were historically influenced by Indian culture,
which itself formed from the various distinct indigenous cultures of South Asia.
• Buddhism, Hinduism, Languages (Sanskrit + Tamil + Pallava script)

Look East Policy:

• India’s Look East policy was launched by former Prime minister of India P V Narasimha Rao in 1992
and rigorously pursued by the successive administrations of Atal Bihari Vajpayee (1998–2004) and
Manmohan Singh (2004–2014).
• It is an effort to cultivate extensive economic and strategic relations with the nations of Southeast
Asia to bolster its standing as a regional power and a counterweight to the strategic influence of the
People's Republic of China.
• In this pursuit, to give a strategic push to India’s engagement with South-East Asia region.
• The policy is aimed to increase economic ties with the "South-East Asian countries"

Malucca Strait: Eastern region is also strategically important for India since roughly more than 60% of
India's sea-borne trade and almost all of its LNG Imports passes through the Malacca Strait. ASEAN
controls strategic maritime chokepoints, particularly the Malacca Strait through which 80% of India's energy
imports transit, making Southeast Asian cooperation vital for India's economic security.

Evolution of India's Act East Policy:

• India Act East Policy was unveiled by Indian PM Modi in 2014. Act East Policy is the successor of
Look East Policy.
• India replaced its two decade-old Look East Policy emphasizing a more proactive role for India in this
region.
• It is also aimed to increase economic as well as cultural, political, defence-related ties with "Southeast
and East Asian countries".
• Under the “Act East Policy” the government is relying on the 3 C’s (Culture, Connectivity, and
Commerce) to develop better relations with ASEAN nations.
• Commerce with South and East Asian nations accounts for almost 45% of India's foreign trade. Despite
its success, India is still behind China in the volume of trade and economic ties it enjoys with the
nations of the region.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875
• The time when India launched the Look East Policy in 1992, India's trade with ASEAN was USD 2
billion. After signing the Free Trade Agreement (FTA) in 2010 with ASEAN, the trade has grown to
USD 123 billion (2024-25).
• ASEAN Countries consistently feature among India’s top 15 trading partners.
• Singapore is India's 6th largest trade partner and largest trade partner in ASEAN. Bilateral trade with
Singapore stood at US$ 34.29 billion in 2024-25.
• Bilateral trade with Indonesia has reached US$28 billion in FY 2025. Bilateral trade with Malaysia
has reached US$18.5 billion in FY 2025. Bilateral trade with Vietnam has reached US$15 billion in
FY 2025.
• India joined QUAD with similar interests only, i.e. to focus on its Eastern region. As Jaishankar, MEA
said “we are for something and not against someone” commenting on the allegations that it is an anti-
China grouping.
• In 2017, the India and Japan Act East Forum (AEF) was created. It is to promote cooperation
between India and Japan in the North Eastern Region as part of India’s “Act East Policy”.

Key differences between “Look East Policy” and “Act East Policy”:

Look East Policy Act East Policy

Early 1990s, post-Cold War liberalisation 2014 onwards — India more confident
phase; India beginning to open to globally, facing new regional dynamics
East/Southeast Asia. (Indo-Pacific, China’s rise), and emphasising
outcomes.
The focus of the “Look East Policy ” was to On the other hand the focus of the “Act East
increase commerce/ economic integration Policy” is economic and security integration
with the South East Asian countries and and the focus area increased to South East
the area was confined to South-East Asia Asia as well as East Asia, the Indo-Pacific,
only. and stronger focus on India’s North East as
gateway.
It was passive, or or “looking” – observing, It is Proactive and ‘action’ oriented –
engaging, opening up channels. Less thrust infrastructure projects, connectivity
on physical connectivity, less on corridors, defence/security partnerships,
security/defence cooperation. capacity building, people-to-people ties.
Primary focus on Economic engagement: Multi-dimensional engagement: economic
trade, investment, linking with dynamic + strategic/security + Defence + cultural +
economies of East/Southeast Asia. Cultural connectivity. More action-oriented,
and diplomatic links present, but less infrastructure/connectivity driven, deeper
strategic/military focus. integration.
Ex: QUAD, Selling BrahMos Missiles to
Philippines, Buddhist Diplomacy, etc.
Focus on connectivity/infrastructure is Focus on connectivity/infrastructure is
Limited. The emphasis was more on opening Significant. AEP includes clear focus on
trade/investment and diplomatic ties rather defence partnerships, maritime security,
than major infrastructure built around India’s Indo-Pacific strategy, countering influence
North East or corridors to ASEAN. of other major powers in region.
The North East was recognised but the Strong focus on India’s North Eastern
integration with the policy was not as states as bridge/gateway to ASEAN and
prominent as later. East Asia; emphasis on development of those
regions, connectivity, infrastructure.
More exploratory: establishing ties, opening More results-oriented: delivering
doors, participating. Impact more gradual. connectivity, strategic depth, capacity
building, tangible projects and timelines.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

Developing North East:

• The success of India’s Act East Policy, will depend upon connectivity projects in India's North East
region.
• Therefore, India should expedite the connectivity projects like India–Myanmar–Thailand Trilateral
Highway and Kaladan Multi-Modal Transit Transport Project. Agartala-Akhaura Rail Link between
India and Bangladesh also opened up.
• India has already formed a separate ministry for the sake of focusing on the North-east region
(DoNER).

“Ramayana and Buddhism are the two aspects that connect India with Southeast Asian countries”. –
Sushma Swaraj, former MEA Minister

India needs to continue with stepped-up efforts to forge closer partnerships with concerned regional and
Multilateral organizations such as ASEAN, East Asia Summit, BIMSTEC, Asia Cooperation Dialogue,
Mekong Ganga Cooperation, and Indian Ocean Rim Association.

Other Initiatives:
• India is also implementing Quick Impact Projects (QIP) in Cambodia, Laos, Myanmar and Vietnam
to provide development assistance to grass-root level communities in the fields of education, water
resources, health etc.
• Quick Impact Projects (QIPs) are small-scale, low cost projects that are planned and implemented
within a short timeframe.
• Scholarships with offers of 1000 PhD fellowships have been offered at IITs for ASEAN countries
participants.
• Assistance extended in the form of medicines/medical supplies to ASEAN countries during the
pandemic.

Recent issues in Act East Policy:

• India didn’t join the vital RCEP group.
• India stayed out of the trade pillar of the US-led Indo-Pacific Economic Framework (IPEF) in the
Indo-Pacific.
Act Far East Policy:
• It is an upgraded and extended version of Act East policy launched by Indian PM Modi in 2019.
• With an aim to forge closer ties with the Far East region of Russia India has extended a $ 1 billion line
of credit for the development of the resource-rich region.
• India would be able to access new energy sources to reduce its Middle East dependence. A new
maritime route from Chennai to Vladivostok proposed.
• Russia’s Far East is located in Geo-strategic region of Indo-Pacific.
Why China is more powerful in the South-East Asian region:
• Largest ethnic minorities in ASEAN nations like Singapore, Malaysia etc.
• Bamboo network
• Soft Power
• Chinese ethnic minorities
• Chinese fast food, Mandarin, Cantonese languages etc. Soft power
Indo-Pacific Region:
• Chinese Aggression in the region – maritime & territorial disputes
• South China Sea (SCS) issue & India’s support for Philippines PCA
• Taiwan strait issue – Taiwan Dome (T-Dome); USAs sale of $11 billion arms to Taiwan in 2025
• India’s sale of Defence equipment – Brahmos to Vietnam, Philippines, Indonesia, etc.
• Japan’s increased Defence spending of 2% of GDP
• Australia – AUKUS
• QUAD

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

Look West Policy

Relations between India and the Middle East have long been based on three elements:
1. Manpower,
2. Remittances and
3. Oil

WEST ASIA:
• West Asia is home to India's diaspora of nearly 9.7 million, who also send an annual $50 billion in
remittances back home.
• India imports over 70% of its oil and nearly 90% of natural gas requirements from the Gulf countries.
• Over 5,000 Indian companies operate out of United Arab Emirates (UAE) special economic zones as
the UAE has emerged as India's third-largest trading partner.

India’s Middle East policy since 2014 has intensified becoming the “Look West” policy.
The Middle East region that plays a vital role in India’s economy, both as a source for hydrocarbons and
remittances. The Gulf region, possessing around 30% of the world’s crude oil and 22% of the global gas
reserves, holds undeniable significance and value. India top most Oil exporters are Iraq, Saudi Arabia, UAE,
Kuwait etc. are all members of this region.

Since the oil boom of the mid-1970s, the number of Indians living and working in Arab Gulf states (Saudi
Arabia, Kuwait, Qatar, Bahrain, Oman and the UAE) has grown rapidly. The bulk came from southern states
like Andhra Pradesh, Tamil Nadu and Kerala and the majority (70%) work in the low wage, low skilled
sectors, like construction.

Of the 35.4 million Indians living abroad, only 9.7 million — just slightly more than one-quarter — reside in
GCC countries (MEA). 4.3 million Indians living in the UAE, 2.65 million in Saudi Arabia, 1 million in
Kuwait, 830,000 in Qatar, 665,000 in Oman and 350,000 in Bahrain.

India retained its position as the largest recipient of remittances, receiving an estimated USD 135 billion in
FY 2025 (RBI). The Middle East and with regard to the Gulf Cooperation Council (GCC) countries, account
for almost 40 percent of India’s remittances. UAE, alone accounts for 19.2 per cent of India's total
remittances and is the second-largest source of them after the US. Saudi Arabia and Qatar follow with 6.7
percent and 4.1 percent, respectively.

Indian Initiatives for West Asia:

2015 – Indian warships rescued over 5,000 stranded citizens from war-torn Yemen through its ‘Operation
Raahat’
2019 – Indian was the Special invitee to the OIC summit at Abu Dhabi, UAE.
2023 – Operation Dost (Operation Friend) was the search and rescue operation initiated by the Government
of India to aid Syria and Turkey, after the 2023 Turkey–Syria earthquake.

Various nations in the region like the Saudi Arabia, UAE, Bahrain, Afghanistan, Palestine, Egypt, Kuwait,
Oman have accorded Modi with the highest civilian awards from their countries. The stability of the Gulf is
important for its oil supply to India and India’s Afghanistan policy.
Strategic Importance:

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

• Gate way to Central Asia: West Asia is gate way to land locked and energy rich Central Asian region
• INSTC: The International North–South Transport Corridor (INSTC) a 7,200-km-long multi-
mode transport network moves through West Asia.
• IMEC Corridor: India-Middle East-Europe Economic Corridor (IMEC) is a planned economic
corridor that aims to bolster economic development by fostering connectivity and economic integration
between Asia, the Persian Gulf and Europe. The corridor is proposed from India to Europe through
the United Arab Emirates, Saudi Arabia, Jordan, Israel and Greece.
• I2U2 Group: It is a grouping of India, Israel, the United Arab Emirates, and the United States. It aims
to cooperate on initiatives in water, energy, transportation, space, health, and food security.
• India’s Strategic “Chabahar Port” is in Iran.
• West Asia is vital for “Energy Security”.
• West Asia is vital for “Remittances”.

De-hyphenated Policy: De-hyphenation means dealing with two countries, having adversarial relationship
between them, in an independent manner. It means India’s relationship with Israel would stand on its own
merits, independent and separate from India’s relationship with the Palestinians. India’s improving
relations with both Iran and Saudi Arabia is a testament of our new foreign policy.

Israel:
1948 – India had voted against Israel’s creation.
1950 – India announced its recognition of Israel.
1971 – former PM Golda Meir supplied arms meant for Iran to India during the 1971 war.
1992 – Embassies were opened when full diplomatic relations were established.
1999 – When the US threatened an arms embargo, Israeli supplied weapons aided India in winning the Kargil
War against Pakistan.
2014 – Modi comes to power & pursues De-hyphenated policy.
2017 – Modi undertook an historic first ever visit by an Indian PM to Israel.
2023 – India voted against Israel at UNGA resolution on Humanitarian ceasefire.

• India is the largest buyer of Israeli and Israel is the second-largest defence supplier to India after
Russia. Indian air force used the Israeli-made Rafael Spice-2000 “smart bombs” during Balakot
attacks. Both jointly developed Indian-Israeli Barak 8 air and naval defence missile system in 2014.
• Israel also helps India through its Precision Agriculture by offering free training sessions to Indian
farmers in efficient agricultural techniques like Vertical farming, drip irrigation and soil solarization
etc. are some.
• The bilateral trade stood at US$ 10 billion in 2022.

Palestine:
1974 – India became the first Non-Arab State to recognize Palestine Liberation Organization (PLO) as the
sole and legitimate representative of the Palestinian people.
2011 – India voted in favor of including Palestine as a full member of UNESCO.
2012 – India co- sponsored and voted in favour of the UNGA Resolution that admitted Palestine as a ‘non-
member Observer state’ at the UN without voting rights.
2017 – India voted in favour of the UNGA Resolution regarding the status of Jerusalem in the backdrop of
American decisions to (i)recognize Jerusalem as the capital of Israel and (ii) shift the US Embassy from Tel
Aviv to Jerusalem.

• India since independence has stood for the Palestinian cause.

• However, in the recent tensions between both Israel and Palestine, India reiterated its commitment to
the “two-State policy” without any reference to East Jerusalem as the capital of Palestine.
• In 2021, India also abstained from voting at UNHRC on Israel for Human rights violation.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

Saudi Arabia:
• Recognizes India as one of the 8 Strategic Partners in its Vision 2030 economic plan.
• Second largest supplier of crude oil after Iraq in the region.
• 5th largest trade partner (after USA, China, UAE and Russia) in 2022.
• During FY 2024-25, bilateral trade was valued at US$42 billion.
• Saudi is to set up the world’s largest refinery and petrochemicals greenfield refinery at Raigarh in
Maharashtra by Saudi Aramco worth $44 billion.
• Reliance announced that Saudi Aramco would take over 20 % share (US 10- 15 Billion) in the RIL
Oil and Chemical business at an enterprise value of US $75 billion.

UAE:
• Bilateral trade, valued around US$ 100 billion in 2025.
• UAE, is the third largest trading partner of India in 2025 and the bilateral trade is projected to cross
US$ 250 billion in 2030.
• UAE accorded Indian PM in 2019 with the UAE's highest civilian award, 'the Order of Zayed’.
• The UAE hosts about 4.3 million Indians – about 25% of India’s diaspora, the largest anywhere in
the world.
• In 2022 both signed Comprehensive Economic Partnership Agreement (CEPA). This agreement
has given market access to 97% of tariff lines accounting for 99% of Indian exports.
• Both are members of I2U2 grouping in West Asia.

Iran:
• In 2018-19 India imported US$ 12.11 bn worth of crude oil from Iran. However, following the end of
the Significant Reduction Exemption (SRE) period in May 2019, India has suspended importing crude
from Iran.
• Ties were dominated by crude oil.
• India-Iran bilateral trade during the FY 2024 was $1.25 billion.
• Iran is also key for the INSTC Corridor (Int. North South Transport Corridor)
• Key to balance China in the region.
• Key to India’s role in Afghanistan (Chabahar Port).
• India and Iran closely cooperated on COVID-19. India has provided 1,125,000 doses of vaccines and
medical supplies to Iran.
• In 2022 Iran joined SCO.

Iraq:
• One of the largest exporter of Oil to India, supplying nearly 20% of India’s total oil imports in 2025.
• Iraq is the second-largest crude oil exporter to India, after Russia.
• India is Iraq's second-largest trading partner, with a yearly trade of $37 billion (2023).
• It is the founding member of NAM.

Challenges:
• India despite being the third largest Muslim population nation in the world is not a member of OIC
(Org. of Islamic Cooperation), it is largely due to the opposition from Pakistan.
• Annulment of Article 370 and the attacks on Minorities in India, is causing tensions between both
regions.
• Withdrawal from JCPOA & subsequent Sanctions upon Iran by USA has only derailed India’s
strategy to counter China and Pakistan through Iran. Instead Iran became much closer to China.
• India must follow the same de-hyphenated stance in the Saudi-Iran Cold war abstaining itself from the
regional rivalries. However, with ties normalizing them between both nations now, India can maintain
good ties with both.
• India must persuade the Arab countries to support for UNSC reforms and CCIT.
Email: csbiasacademy@[Link] 3 [Link]
 CSB IAS ACADEMY CONTACT NO:9966436875

• Political instability that followed the Arab Spring led to the rise of militant units like ISIS, which had
repercussions on India as well.
• China’s success in establishing a peace deal between Saudi and Iran reveals the growing Chinese clout
in the region.
• Terrorism: the presence of Terrorist outfits like ISIS, Al-Qaeda etc. is a constant challenge for Indian
Security.
• US sanctions on Iran hit India’s trade & ties with the latter.
• Israel-Palestine Conflict has rocked the Global economic stability – food prices, inflation, etc.
• Pak & Saudi Security agreement – formalizing collective defense where an attack on one is an attack
on both.
• Yemen – Nimisha Priya Case
• The kafala, or sponsorship, system defines the relationship between foreign workers and their local
sponsor, or kafeel, which is usually their employer. It remains widespread in the Gulf States and has
contributed to labour migrants’ precarity. Some have criticized the system as being akin to “modern
day slavery.” Human rights groups have referred to it as “a maze of exploitation.” Others have focused
on the poor living conditions that migrants are forced to live in. Complaints received from and on
behalf of Indian workers have ranged from non-payment of salaries and denial of labor rights such
as non-issuance or renewal of residence permits, to the refusal to pay overtime allowance or grant
weekly holidays.

China & West Asia:

• 2023 – China has been more active diplomatically, from playing a mediator’s role in the normalisation
of ties between Saudi Arabia and Iran
• 2024 – China hosted talks on reconciliation between the rival Palestinian factions, including Hamas
and Fatah, both of whom have been at loggerheads with each other since 2006.
• 2025 – China-Afghanistan-Pakistan trilateral meeting in Kabul. Chinese attempt at brokering peace
between Pakistan and Afghanistan.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875

Japan
6th century - said to have introduced Buddhism to Japan.
1952 - Japan and India signed a peace treaty and established diplomatic relations
In the post-World War II period.
• In the post-World War II period, India's iron ore helped a great deal Japan's recovery from the
devastation.
1958 - first yen loan aid extended by Japanese government to India
1980s - Suzuki Motor Corporation’s entry revolutionized the automobile sector
1991 - Japan unconditionally helped & bailed India out of the BoP crisis.
1998 - Pokhran-II & subsequent Japanese sanctions on India (later lifted upon Indian assurances)
2000 - Japan-India Global Partnership in the 21st century was launched
2006 - the relationship was upgraded to a Global and Strategic Partnership
2011 - A Comprehensive Economic Partnership Agreement (CEPA) between Japan and India was
concluded.
2012 - marked the 60th Anniversary of Diplomatic Relations.
2014 - upgraded the relationship to a ‘Special Strategic and Global Partnership’.
2015 - In December 2015, PM Shinzo Abe paid an official visit to India and had a summit meeting with Prime
Minister Narendra Modi. They announced “Japan and India Vision 2025 Special Strategic and Global
Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World”, a joint
statement that would serve as a guide post for the “new era in Japan-India relations.”
2016 - Civil nuclear deal was signed under which Japan will supply nuclear reactors, fuel and technology to
India.
2018 - Japan’s announcement of joining the International Solar Alliance (ISA) & India- Japan Digital
Partnership
2022 - marks the 70th anniversary of official diplomatic relations between Japan and India.
2025 - In August 2025, PM Modi paid an official visit to Japan and had a summit meeting with Prime Minister
Ishiba. The two leaders issued “Japan-India Joint Vision for the Next Decade”.

Cold War era:

• Both forced to take opposite sides, Japan sided with the West (USA) while India with Russia and
NAM.

India-Japan:
The friendship between Japan and India is often referred as “Japanese-Indian Brotherhood”. If Buddhism
has laid the foundations of Indo-Japanese relations it was strengthened by Swami Vivekananda, Gurudev
Rabindranath Tagore, JRD Tata, Netaji Subhash Chandra Bose, Rash Behari Bose and Judge Radha Binod
Pal. Both nations share a “Special Strategic and Global Partnership”.

Government of Japan has included the two Indian COVID-19 vaccines COVISHEILD and COVAXIN as
designated vaccine for 3rd dose.

Trade & Investments:

• Japan’s bilateral trade with India totalled US$ 25.17 billion during FY25. Exports from Japan to India
were US$ 18.92 billion and imports were US$ 6.25 billion.
• Japanese FDI in India has risen, totaling USD 1.79 billion in 2022–23, USD 3.1 billion in 2023–24,
and USD 2.5 billion in 2024–25.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875
• Cumulatively, from April 2000 to December 2024, the investments to India have been around US$
43.28 billion ranking Japan fifth among source countries for FDI and accounting for 6.02% of total
FDI into India, with key sectors including automobiles, electronics, telecom, chemicals, finance, and
pharmaceuticals.
• India established the “Japan Plus” office in the Ministry of Commerce and Industry in 2014 as a "one-
stop" location for resolving problems faced by Japanese companies.

Economic and Commercial Cooperation:

Japan is regarded as a key partner in India’s economic transformation. Maruti Suzuki’s entry into India in
early 1980s revolutionized our automobile sector. Japanese companies, such as Yamaha, Sony, Toyota, and
Honda have manufacturing facilities in India. The signing of the historic India-Japan Comprehensive
Economic Partnership Agreement (CEPA) and its implementation from 2011 has accelerated bilateral
economic and commercial relations. Japan is the largest bilateral donor for India since 1958.

Japanese ODA (Official Development Assistance) i.e. concessional loans, grants, technical assistance etc.
supports India’s efforts for accelerated economic development particularly in priority areas like power,
transportation, environmental projects and projects related to basic human needs. Delhi Metro is one of
the most successful examples of Japanese cooperation through the utilization of ODA.

Japanʼs ODA disbursement to India in 2023-24 stood at about JPY 580 billion. In March 2025, the
Government of India and the Government of Japan signed loan agreements amounting to JPY 191.736 billion
(US$ 1.2 billion) under Japan’s Official Development Assistance (ODA) programme.

Under technical cooperation, Japan has spent JPY 109 billion and 11,600 Japanese experts have traveled to
India, whereas 8500 trainees from India have come to Japan. For the North-eastern region, JICA has
committed approx JPY 314 billion. $75 billion Currency swap agreement was signed in 2018, to counter
financial fluctuations. In 2017, the two countries announced the establishment of the Japan-India
Coordination Forum (JICF) for Development of North-Eastern Region.

Infrastructure:
• In 2014, PM of Japan Mr. Shinzo Abe pledged $35 billion in investment in India's public and private
sectors over the next five years as well as to double the number of Japanese companies operating in
India. This target was said to have met in the recent meetings by Japanese PM.
• Japan announced its cooperation of training 30,000 Indian people over next 10 years in the Japan-
India Institute for Manufacturing (JIM), providing Japanese style
manufacturing skills and practices, in an effort to enhance India’s manufacturing industry base and
contribute to “Make in India” and “Skill India” Initiatives.
• A ‘Japan-India Make in India Special Finance Facility’ of JPY 1.3 trillion was also established in
2014.
• Delhi Metro Project has also been realized with Japanese assistance.
• Japan has invested in the $90 billion Delhi-Mumbai Industrial Corridor (DMIC) which will see the
setting up of new cities, industrial parks, ports and airports.
• Japan is also helping India with Ahmedabad-Mumbai bullet train, the Western Dedicated Freight
Corridor (DFC), the Chennai- Bengaluru Industrial Corridor (CBIC) are all mega projects which
will transform India in the next decade.
• India signed $75 Rupee-Yen/ Dollar swap agreement recently for macroeconomic stability.
• Bilateral cooperation in “High-Speed Railway Project” and Chennai Metro are funded by Japan.
• Japan's Expanded Partnership for Quality Infrastructure (EPQI): Japan cooperates with India in
financing strategic connectivity linking South Asia to South-east Asia.
• India and Japan agreed to transform the Andaman & Nicobar and Lakshadweep islands, into Smart
Islands, particularly deploying renewable energy, smart mobility systems, and digital infrastructure.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875
India-Japan Fund (IJF):

• India's National Investment and Infrastructure Fund (NIIF) and Japan Bank for International
Cooperation (JBIC) launched a $600 million fund for climate and environment projects on 4 October,
2023.
• The Indian government will contribute to 49 per cent of the target corpus for the India-Japan fund
(IJF), which is NIIF's first bilateral fund. The remaining 51 per cent will be contributed by JBIC. The
IJF prioritizes investments in environmental sustainability and low carbon emission strategies.
• Both Japan and India are members of the “Pax Silica Initiative”, that aims to secure critical mineral
and AI supply chains.

Supply Chain Resilience Initiative (SCRI):

• The Trade Ministers of India, Japan and Australia formally launched the Supply Chain Resilience
initiative in April 2021.
• The initial projects of SCRI identified are - (i) sharing of best practices on supply chain resilience; and
(ii) holding investment promotion events and buyer-seller matching events to provide opportunities
for stakeholders to explore the possibility of diversification of their supply chains.

Defence:

• Japan will be pivotal in India’s “Act East” policy & “Indo-Pacific” policy.
• Both are part of QUAD (Quadrilateral Security Dialogue) & JAI (Japan-America-India) to act as a
synergy in countering Chinese dominance in the Indo-Pacific ocean and working closely toward the
realisation of a “Free and Open Indo-Pacific”.
• The Joint exercises are - joint army (Dharma Guardian), navy (Malabar) and air force exercises
(SHINYUU Maitri).
• Both hold a Foreign and Defence Ministerial Dialogue (2+2).
• Both also signed the Acquisition and Cross-Servicing Agreement (ACSA) for mutual logistics
support, which came into force in 2021. It involves the Reciprocal Provision of Supplies and Services
between the Self-Defense Forces of Japan and the Indian Armed Forces.

Political relations:
• Summit level partnership
• Japan is the only country to extend public support to India during Doklam confrontation with China
• Close cooperation in UN, UNSC, G-20 & ADB
• QUAD
• JAI alliance (Japan-America-India)
• G-4 club for UN reforms – India, Brazil, Germany, Japan

Cultural cooperation & Indian Community:

Approximately 54,000 Indians live in Japan (as of 2025). The Nishikasai area in Tokyo is emerging as a
“mini-India”. There has been growing interest for Yoga, Tabla, Bharatanatyam, Bollywood dances, Hindi
language, Ayurveda, etc. In 2022, Japan celebrates anniversaries with the seven countries of Southwest Asia,
including India. Japan has designated 2022 as “Japan-Southwest Asia Exchange Year” with the aim of taking
Japan’s relations with the countries of Southwest Asia to new heights.

Concerns:
• Today, India-Japan trade languishes at around $25 billion, while Japan-China trade is around $300
billion.
• Despite the deep mistrust, China and Japan remain economically intertwined — bilateral trade
exceeds $300 billion annually.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO:9966436875
• Japan has offered neither military hardware nor technology to India. There is a lot to be explored in
the Defence arena.
• Rise of China in Asia & in the India-Pacific is a common concern for both Japan and India. The Indo-
Japan relations is overemphasized on countering Chinese Influence in Indian Ocean and South China
Sea but now countries should go beyond China.
• Land acquisition challenges. Delays with CBIC & DMIC are disappointing.
• Post-CEPA, trade deficit of India with respect to Japan has increased.
• Japan is they key contender for the UNSC seat along with India from Asia.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

BRICS
Today BRICS is seen if not as a alternative, a counternarrative creator to the western-led G7 club on diverse
issues: from climate change commitments and UN reform to its rejection of unilateral western sanctions
against Iran, Russia and Venezuela.

HISTORY:
• BRICS is the acronym coined by economist Jim O’Neill.
• It is an association of five major emerging national economies: Brazil, Russia, India, China and South
Africa.
• Originally the first four were grouped as "BRIC" (or "the BRICs"), before the induction of South
Africa in 2010.
• All are members of G20.
• The BRIC grouping's first formal summit, also held in Yekaterinburg, Russia in 2009.
• South Africa officially became a member nation in 2010.
• The first five-member BRICS summit (3rd overall) was held in 2011 in Sanya, China.
• The 12th BRICS summit will be held in Brasilia, Brazil in 2019.
• BRICS does not exist in form of organization, but it is an annual summit between the supreme leaders
of five nations.

BRICS:
The bloc already boasts about 45 percent of the world’s population, generates more than 40 percent of its
GDP (as measured in purchasing power parity, or PPP), and produces 30 percent of its oil.
• BRICS countries currently represent close to a third of global output.
• Projections indicate that the BRICS will continue to account for more than half of global economic
growth through 2030.
• It’s an emerging investment market and global power bloc.
• Continued implementation of structural reforms will enhance our growth potential. Balanced trade
expansion among BRICS members will further contribute to strengthening international trade flows.
• The Brics countries are often seen as a counterweight to the Western-led world. Lifeline of Global
South in the 21st century.

New Development Bank (NDB):

• Formerly referred to as the BRICS Development Bank, is a multilateral development bank established
by the BRICS states in 2014.
• The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.
• NDB is currently headquartered in Shanghai, China.
• The first regional office of the NDB is in Johannesburg, South Africa.

Fortaleza Declaration:
• The BRICS Contingent Reserve Arrangement (CRA) is a provision to provide protection against
global liquidity pressures. This includes currency issues where members' national currencies are being
adversely affected by global financial pressures.
• It’s an outcome of the Fortaleza Declaration, Brazil in 2014.
• The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with
the New Development Bank is viewed as an example of increasing South-South cooperation.
Email: csbiasacademy@[Link] 1 [Link]
 CSB IAS ACADEMY CONTACT NO: 9966436875

Johannesburg declaration:
The Johannesburg declaration has called for fighting international terrorism and early implementation of the
Comprehensive Convention on International Terrorism (CCIT).

The Partnership on New Industrial Revolution (PartNIR) aims at deepening BRICS cooperation in
digitalization, industrialization, innovation, inclusiveness and investment, to maximize the opportunities and
address the challenges arising from the Fourth Industrial Revolution, said the 10th BRICS Summit
Johannesburg Declaration.

TRADE:
• BRICS is committed to rule-based Multilateral trade order and is against global unilateralism and
protectionism.
• It calls for a non-discriminatory and transparent WTO.
• It is against Trade Wars.

People-to-People exchange:
• BRICS members have recognised the need for strengthening People-to-People exchanges and to foster
closer cooperation in the areas of culture, sport, education, film and youth.
• People-to-People exchanges seek to forge new friendships; deepen relations and mutual understanding
between BRICS peoples
• Such People to people exchanges include the Young Diplomats Forum, Parliamentarian Forum, Trade
Union Forum, Civil BRICS as well as the Media Forum.

Political and Security Cooperation:

• BRICS member political and security cooperation is aimed at achieving peace, security, development
and cooperation for a more equitable and fair world.
• BRICS provides opportunities for sharing policy advice and exchanges of best practices in terms of
domestic and regional challenges as well as advancing the restructuring of the global political
architecture so that it is more balanced, resting on the pillar of multilateralism.
• BRICS is utilised as a driver for South Africa’s foreign policy priorities including the pursuit of the
African Agenda and South-South Cooperation.

Cooperation Mechanism:
Cooperation among members is achieved through:

Track I: Formal diplomatic engagement between the national governments.

Track II: Engagement through government-affiliated institutions, e.g. state-owned enterprises and business
councils.
Track III: Civil society and People-to-People engagement.

BRICS Plus:
• China introduced the “BRICS Plus” format where it involved inviting a few countries from different
regions.
• South Africa emulated it, with representation of five nations of its choice.
• The countries were Argentina, Jamaica, Turkey, Indonesia and Egypt.
• An immediate benefit of BRICS Plus is the opportunities it provides for networking among leaders.
• However, the precise role of “BRICS Plus” countries will take time to evolve.

Africa:
• The BRICS outreach to Africa that began at the Durban summit in 2013 has picked up momentum
now.
• The theme of the Durban Summit is '"BRICS and Africa: Partnership for Development, Integration
and Industrialisation'.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• African leaders are in want of more big loans from the New Development Bank (NDB) for their
infrastructure projects.
• So far, the NDB has dispersed loans totalling $5.1 billion, but all to its members only.

Challenges:
• The marked dominance of big three Russia-China-India is challenge for the BRICS as it moves
ahead.
• The BRICS will need to expand its agenda for increasing its relevance in the global order. As of now,
climate change and development finance, aimed at building infrastructure dominate agenda.
• As BRICS moves forward foundational principles of BRICS i.e. respect for sovereign equality and
pluralism in global governance are liable to be tested as the five member countries pursue their own
national agendas.
• The military standoff between India and China on the Doklam plateau, which has effectively
brought to an end the naive notion that a comfortable political relationship is always possible amongst
the BRICS members.

Importance for India:

• India remains engaged with the other BRICS countries on its NSG membership.
• The NDB will help India to raise and avail resources for their infrastructure and sustainable
development projects. The NDB has approved its first set of loans, which included a loan of US$ 250
million in respect of India for Multitranche Financing Facility for Renewable Energy Financing
Scheme’.
• India can benefit from collective strength of BRICS by way of consultation and cooperation on issues
of mutual interests, such as, international terrorism, climate change, food and energy security, reforms
of global governance institutions, etc.
• It is no doubt that BRICS plays an important forum for all the member countries in promoting South-
South cooperation and North-South dialogue. It will also help its member countries in fulfilling UN
Sustainable Development Goals (SDGs).
• India sees BRICS as a platform to build multilateral relations with Latin American, African and Asian
countries.

Conclusion:
As the Chinese saying goes good things take time. BRICS is by no means perfect. The role of BRICS
members in global economic govt. has not yet matched their weight and achievements in world economy.
Their capability also lags behind International rule making and decision making. BRICS members do not see
eye-to-eye on each and every issue. Diverges do occur sometimes on certain political and trade issues. While
BRICS is making a difference in various areas, it still needs time.

Positives of BRICS:
• BRICS members have been united in their dissatisfaction with the West-dominated international
institutions that had emerged after the Second World War — the World Bank, the International
Monetary Fund, the United Nations. At Johannesburg, BRICS Summit the UN Secretary General
António Guterres said “Today’s global governance structures reflect yesterday’s world”.
• BRICS challenges this West-led world order. The Johannesburg Declaration categorically asserts that
the members’ “strategic partnership” will be directed at achieving “a more representative, fairer
international order”.

Demands for the Expansion of BRICS:

• Russia’s quest to create an alternative to the G7driven global political-economic model. This has
acquired urgency since the western nations unleashed economic sanctions against Moscow after Mr.
Putin launched the war against Ukraine in February 2022.
• China – Side-lined by USA; Super power War & AIISC, NDB, SCO etc.

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• India’s demand for changes in global multilateral systems to make them more responsive to the needs
of the Global South.
• De-dollarisation wave – from Russia, China and India. India has entered into local currency
agreements with a few trading partners like the UAE.
• New Members – BRICS expands with six new members, including Argentina, Iran, UAE, Saudi
Arabia, Ethiopia and Egypt.
• Energy Security – UAE, Iran and Saudi Arabia brings the Energy rich Gulf into the Grouping. (All
of them share a close ties with India and China)
• Geo-Strategic Edge: Egypt and Ethiopia are an important presence in the strategically important Horn
of Africa and the Red Sea, while Argentina is the second largest economy in Latin America.
• Global South – NDB Bank & fed up with the out-dated 20th century relics like UN, World Bank, IMF,
etc.
• Western Domination & slow reforms in Multilateral Institutions (NORMS, etc.)
• Financial side: It has spawned two major institutions – the New Development Bank (NBD) to provide
development assistance and the Contingent Reserve Arrangement (CRA) that supports countries
facing short-term balance of payments pressures.

Negatives of BRICS:
• Critics have dismissed the grouping as having no shared vision and being a “talk shop” with no
worthwhile achievements.
• Rivalry between China-India is slowing down the decision making.
• Induction of arch rivals Iran and Saudi (despite their recent rapprochement) may pose threat to the
harmony in the grouping in the future.
• Any overtly political, anti-western stance by BRICS will make India, and other countries in the
grouping who walk a tightrope between the global powers, putting nations like India and others in an
uncomfortable, tight spot.
• Russia’s invasion of Ukraine too has caused uneasiness, and BRICS members did not vote as a bloc
on any of the UN votes; nor did any of the other members support Russia’s actions.
• Any attempts by China to overpower the group with its strategic or economic vision will require a firm
pushback if the foundational idea of BRICS, to assert the strategic autonomy of its members, is to be
followed.

BRICS challenges:
• Although the BRICS alliance is often portrayed as promoting a more multipolar world, it is
economically dominated by China, which accounts for more than 70% of the bloc's combined GDP.
• Brazil has decided not to join China’s multi-billion-dollar Belt and Road Initiative (BRI). It has
become the second country after India in the BRICS bloc to reject Beijing’s mega project.

15th BRICS summit, Johannesburg, South Africa, August 2023:

• The BRICS consortium, disclosed in August its inclusion of six new members.
• 6 New Countries in BRICS – Saudi Arabia, UAE, Iran, Egypt, Ethiopia, Argentina.
• The initiation of 6 new members into the bloc was earmarked for January 1, 2024.

November, 2023 Argentine general election:

• Javier Milei defeated Sergio Massa a Peronist of Renewal Front (FR) to become President of
Argentina.
• The Libertarian Party (PL) led by Milei promotes elements of social ultraconservatism and economic
right-libertarianism and minarchism.

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

S & Aternative Currency:

• BRICS countries have already begun to use their national currencies in trading with each other as much
as possible. The use of draconian financial sanctions on Russia by the West has accelerated this
process.
• Today, almost all trade operations between Russia and China are conducted in rubles and yuan. India
too is encouraging the use of its national currency in payment transactions with select countries. A
significant portion of the trade between India and Russia is now settled using a rupee-ruble mechanism.
• Washington cannot use secondary sanctions to prevent countries, including India, from using the US
dollar to trade with Russia and then oppose de-dollarization if these countries are compelled to use
alternative payment mechanisms. If the US continues to weaponize the dollar, it will inevitably lead
to the very “de-dollarization” that Trump is concerned about.
• On the contrary, such overt displays of American economic coercion may well drive more countries
toward alliances that seek to challenge the dominance of any single global power.
• India has officially disowned any de-dollarization agenda – not the least because the US is its biggest
trade partner in goods and services. India seeks more investments and technology transfers from the
US.

BRICS Member Countries (10):

• Brazil, Russia, India, China, South Africa.
• Egypt, Ethiopia, Iran, UAE, and Indonesia.
• Saudi Arabi despite invitation has not officially confirmed its joining of BRICS.
• Argentina declined the invitation to join after Javier Milei won the elections.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Is UN a Successful or a Failed Organization:

The United Nations was estd. in 1945 as a successor to League of Nations. It is the biggest intergovernmental
organization in the world, which was hoped to be a beacon of peace and stability around the world.

The objectives of the UN as set forth in the Charter are:

• to maintain international peace and security
• to develop friendly relations among nations
• to resolve international economic, social, cultural and humanitarian problems

Failures of UN:
(i) P5 issue:

Article 2 of the UN charter stating “the Organization is based on the principle of the sovereign equality of
all its Members.” The concept of veto powers goes against this spirit. So many countries allege that UN builds
in second-class nations.

Mr. Recep Tayyip Erdogan, President of Turkey, in the UNGA, highlighting the need for UNSC reformation
said “the world is much greater than the P5”

• The delayed decision-making process, lack of reform and constant deadlocks on the UNSC tarnished
the image of the UN.
• The “P5” with their veto power, is paralyzing the effective functioning of UN.
• The P5 nations of the UNSC can block all decisions with their veto power.
• The surprising fact is that three continents Latin America, Africa, Asia (except China) and Arab
world are not represented in the UNSC as permanent members.

In an interview in September 2004, Kofi Annan said, “I have indicated it was not in conformity with the UN
Charter. From our point of view and from the Charter point of view it was illegal.” (the 2003 illegal
invasion of USA led forces without seeking UN permission)

(ii) Refugee issue:

The plight of Tens of thousands of Syrian refugees who died on their journey in the Mediterranean Sea until
they tried to reach European countries.

Similarly, the plight, persecution and killing of Rohingya Muslims, which the UNHCR Chief calls ethnic
cleansing is not generating much action from UN bodies.

(iii) Failure to end Wars:

UNs Preamble pledges to “save the humanity from the scourge of war” but it has failed to resolve some of
the bloody conflicts in human history.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

The UNs Failure to resolve the Palestinian-Israeli conflict, in the words of UN former Secretary General Kofi
Annan, would “continue to hurt the reputation of the United Nations and raise questions about its
impartiality”.

In 2005, Kofi Annan, then Secretary-General of the United Nations said “the tragedy of Srebrenica will
haunt the history of the UN forever”.

1. Cambodian Genocide (1975) – The Khmer Rouge and the Pol Pot regime in Cambodia from 1975 to
1979, had killed 2.5 million Cambodians, amounting to 33% of their total population.
2. Sexual abuse allegations against UNPKF Forces in the Republic of Congo, Cambodia, Haiti and other
countries have defamed the UN.
3. Rwandan Genocide (1994)
4. Srebrenica massacre/ Srebrenica genocide (1995)
5. Nuclear Proliferation (Pakistan, Israel, Iran & North Korea)
6. Spreading Cholera in Haiti
7. Vietnam War
8. Afghan War
9. Sri Lankan Civil War
10. Israel-Palestine issue
11. American Hegemony in Global Politics (War on Terror, Iraq Invasion)
12. Russian invasion of Crimea (2014)
13. Syrian Civil War
14. CLIMATE CHANGE ISSUES
15. UN – NO funding & NO own Army
16. Antonio Guterres – UN brink of Bankruptcy
17. Current Wars – Israel-Palestine & Ukraine-Russia War

(iv) Frozen conflicts:

UN has failed to end many conflicts which have been going on for decades. These are the conflicts that have
been frozen in time and heat up every now and then. For example, Israel-Palestine, Korean War, Kashmir
issue, etc.

(V) Failure of UNPKF:

UN Peace Keeping Forces or the Blue Helmets are embroiled in multiple controversies ranging from rape,
sexual assault, trafficking, “food-for-sex” scandals, Haiti Cholera outbreak (2010). These issues have
severely undermined the UN’s moral authority and legitimacy in host countries.

(Vi) Funding challenges of the United Nations:

• In October 2025, the UN Secretary-General António Guterres, warned that the UN faces a “race to
bankruptcy,” stating that a failure to address the liquidity problem “could jeopardise critical elements”
of the UN’s work.
• The financial pressures are largely caused by a significant number of member states failing to pay their
legally-binding contributions in full and on time.
• There are some states in significant arrears to the UN. The top three states still owing to the UN by
October 2025 are all permanent members of the UN Security Council: US had $1.495 billion unpaid,
China had $192 million unpaid, Russia had $72 million unpaid

(Vii) No Standing Army of the United Nations:

• The UN does not have a standing army of its own.
• UN peacekeeping forces are contributed voluntarily by member states.
• Troops remain under national command, but operate under UN mandate.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Success:
UN is playing the role of a Welfare State at International level by accumulating the funds from more developed
nations and helping the poor nations in addressing many issues like Education, Health, Housing, Poverty,
Women Empowerment, Malnutrition etc.

(I) Universality of Membership:

One of the greatest successes of the United Nations is its near-universal membership, which makes it the
only global organization with almost all sovereign states as members. The UN has 193 member states,
representing almost the entire international community. This universality gives the UN
unparalleled representative authority in global governance.

(II) Resolution of Conflicts:

While the UN has struggled in preventing wars between great powers, it has been reasonably successful in
containing conflicts, and resolving conflicts in developing nations. The UN has successfully resolved the
conflicts pertaining to Namibia, Cambodia, East Timor, Sierra Leone, etc.

(III) Maintenance of International Peace and Security:

The UNPKF has been most successful in post-conflict stabilisation, peacebuilding, and civilian
protection, especially in civil wars and internal conflicts. It prevented relapse into war, protected civilians,
supervised free and fair elections, supported rule of law, disarmed and demobilised armed groups, Facilitated
independence and state-building, etc.

(IV) Global Health Achievements:

WHO and allied agencies were successful in the eradication of smallpox (first disease eliminated globally),
major progress against – Polio, HIV/AIDS, Yaws, Ebola, etc.

(V) Economic Stability through Bretton Woods Institutions:

Though independent, IMF and World Bank operate within the UN ecosystem. IMF provides: Balance of
payments support, Financial stability. World Bank supports: Infrastructure, Poverty reduction, Development
finance, etc. They have helped prevent systemic collapse of many developing economies.

(VI) Disarmament and Arms Control:

The UN has facilitated important arms control regimes, even if imperfect. Nuclear Non-Proliferation Treaty
(NPT), Chemical Weapons Convention (CWC), Biological Weapons Convention (BWC), etc. These
frameworks have reduced proliferation risks and established verification norms.

(VII) Climate Change and Environmental Protection:

Despite enforcement limitations, the UN has provided some considerable impetus to climate action. Key
contributions include UNFCCC, Kyoto Protocol, Paris Agreement, UNEP’s role in environmental
governance, etc.

1. Supporting Disarmament measures like NPT, CTBT

2. Its endeavors to improve Global living standards through SDGs
3. Through IMF & World Bank providing Economic aid to poor nations
4. UNICEF - Providing vaccinations for 58 percent of children in the world
5. UN Women - Helping about 30 million women a year with maternal health efforts
6. FAO trying to combat Hunger - Providing food to 90 million people in over 75 countries.
7. UN Habitat – turning Slums into decent human settlements
8. Working with 140 nations to minimize climate change
9. UNEP – and its role in preserving environment
10. Assisting about 50 countries per year with their elections
11. Assisting more than 69 million refugees
12. Protecting human rights with 80 treaties and declarations

Email: csbiasacademy@[Link] 3 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

13. It is success because the UN conducts demining in the post-conflict areas getting rid of landmines that
are scattered in 78 countries and kill around 15 thousand people annually.

Current realities & need for reforms in UN:

Kofi Annan in his Millennium Report stressed that:
Based on the distribution of power and alignments in 1945, the composition of the Council today does not
fully represent either the character or the needs of our globalised world.

The UN is in need of reform to realign its goals with its activities. The world of 1945 was very different
from the world in the 21st century. Many of the structures and processes of the UN reflect a bygone era –
changes that have happened in the last 75 years must be taken into consideration. The archaic institute does
not reflect even the most basic realities of a world in which the population has grown from 2.3 billion, when
the UN was established, to over 7 billion now. Not only the member states quadrupled from 51 to 193 in
2025, but also, new global issues have arisen since 1945, such as the lack of natural resources, the rapid
population increase, environmental issues, climate change, weapons of mass destruction, terrorism and
new internal conflicts representing a threat to peace.

UN has outdated structure as same five countries — the victors of World War II — have been the power
players since 1945: the United States, Russia, China, Britain and France. UNSC does not reflect today’s
distribution of military and economic power, nor a geographical. They are the only permanent members of the
powerful, 15-seat Security Council. Each has veto power, which has led to near-paralysis at the council on
some major crises like Syria, Palestine and Ukraine.

The global economy has experienced tectonic shifts, especially in the past 30 years. When the Berlin Wall fell
in 1989, the seven largest Western economies—three of which have permanent seats on the council—
accounted for 51 percent of global economic output. Today they account for only 30 percent.

Furthermore, some of the UN’s structures have shown great inefficiencies, ranging from the incapability of
the UN to make states pay their membership fees, to terrible peacekeeping failures and the inability of the
UNSC to act in order to prevent the genocide in Rwanda & Srebrenica in 1995.

The repeated unilateral actions raise questions about the UNSC’s relevance. The 2003 US invasion of Iraq &
2014 Russian annexation of Crimea are few popular examples. These events have highlighted the fact that the
permanent members continue to pursue national interests over the collective. In fact, the veto power is
paralyzing its effective functioning. The demand for further changes includes increasing the numbers of
elected and permanent members as well as eliminating or expanding the veto.

• Japan and Germany, are the second and third largest financial contributors to the UN respectively,
after the US.
• Excluding China, the three continents Asia, Africa and Latin America are virtually unrepresented at
UNSC.
• The most frequently mentioned possible candidates as permanent members – the so-called Group of
Four i.e. G4 nations consisting of Germany, Japan, India, and Brazil.
• Institution of Global North: Barring China, there is no country from Global South in UNSC. The
Continents of Latin America and Africa do not have a say at UNSC.
• Erstwhile Superpowers: Former major economies like UK and France still have a say at UNSC while
emerging and big economies of 21st century like India, Brazil, Germany, Japan etc. are voiceless.

Conclusion:

While every organization has its flaws and shortcomings, the majority of international leaders and experts
agree that the U.N. continues to play a critical role in securing peace, stability and prosperity throughout the

Email: csbiasacademy@[Link] 4 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

world. The question at this point is how to make the organization more relevant and effective. Many experts
propose suggest the resolution of structural problems such as the UN Security Council, which has been
criticized for years.

To conclude, the UN is not a magic wand and miracle cure. It is a perfectly imperfect instrument, but the
humanity has yet to come up with a better one. Despite not having either standing military or police of its
own or many shortcomings like Financial crunches, the UN is trying to stabilize and bring peace.

“There is only one path to peace and security: the path of supranational organization.” – Albert Einstein,
1948

As former UN Secretary-General Dag Hammarskjöld rightly said:

“The UN was not created to take mankind to heaven, but to save humanity from hell.”
Thus, the UN’s success lies not in perfection, but in its continued relevance — as humanity’s best available
mechanism for cooperation, peace, and progress.

Email: csbiasacademy@[Link] 5 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

SCO (Shanghai Cooperation Organization)

SCO is a permanent intergovernmental international organization.
• It was created in 2001.
• It’s a political, economic and military organization aiming to maintain peace, security and stability in
the region.

Members (10): Tajikistan, Russia, Uzbekistan, China, Kazakhstan, Kyrgyzstan, India, Pakistan, Iran, Belarus.
2017 – India & Pakistan officially join SCO as member states
2023 – Iran officially joins SCO as member state
2024 – Belarus officially joins SCO as member state

SCO Economy – It encompasses over 60% of the Eurasian landmass, 40% of the world’s population, and
30% of global GDP.

Observer states (2) – Afghanistan and Mongolia.

• Afghanistan inactive since 2021. No country has yet provided diplomatic recognition to the Taliban
(Russia)

2 standing bodies:
1. Secretariat in Beijing and
2. Regional Anti-Terrorist Structure (RATS) in Tashkent: Established to combat terrorism, separatism
and extremism.

Supreme decision-making body: Council of Heads of States (CHS) (meets once a year)
Official languages: Russian and Chinese

Shanghai Spirit – the shared set of values that underpins the SCO. Ex: mutual trust, mutual benefit, equality,
consultation, respect for cultural diversity and pursuit of common development etc.

The SCO was founded in June 2001, built on the ‘Shanghai Five’ grouping of Russia, China, Kazakhstan,
Kyrgyzstan and Tajikistan, which had come together in the post-Soviet era in 1996, in order to work on
regional security, reduction of border troops, and terrorism.

The 1996 meeting of the Shanghai Five, played a key role in conflict resolution between China and Russia,
and among Central Asian republics like Kazakhstan, Kyrgyzstan and Tajikistan. In 2001, the Shanghai Five
inducted Uzbekistan into the group and named it the SCO.

India and Pakistan joined the SCO as observers in 2005, and were admitted as full members in 2017.

Strategic Importance of SCO:

The Organisation has two permanent bodies — the SCO Secretariat based in Beijing and the Executive
Committee of the Regional Anti-Terrorist Structure (RATS) based in Tashkent.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875
The SCO has been viewed by the West as a counter-coalition of Eurasian powers, because of its desire to build
a “new international political and economic order”, and it was even dubbed the “Anti-NATO” for proposing
military cooperation.

Western and NATO concerns were heightened a decade later, when they placed heavy sanctions against Rus-
sia for its actions in Crimea, but China came to its aid, signing a 30year, $400 billion gas pipeline framework
agreement.

India and SCO:

India joined the SCO as observer in 2005, and was admitted as full time member in 2015. SCO has been the
puzzling foreign policy choices, of India. On one hand it was keenly forging ties with the West, and in
particular the maritime ‘Quadrilateral’ with the U.S, Japan and Australia. India has explained its membership
in both ostensibly clashing groups as a part of its principles of “strategic autonomy and multi-alignment”.

Conflict Resolution:
Through the years, SCO hosts have encouraged members to use the platform to discuss differences on the
sidelines. In 2009, India and Pakistan held the first talks after the Mumbai attacks on the sidelines of the SCO
summit in Astana.

Now the SCO host, Russia, encouraged and facilitated meetings between the Defence Ministers of India and
China and Foreign Ministers of India and China to discuss the standoff at the LAC that has seen violent clashes,
killings of soldiers and gun fire exchanges for the first time in 45 years.

Why its Strategically Imp.

• Ideological Blocs – QUAD Vs SCO (Asian NATO & Anti-NATO)
• India in Unique Position – part of both groupings. Balance between West & East (truly Multi-aligned
in the new world order).
• promote India’s interests in Central Asia & West Asia.
• Can hold Pakistan responsible for Terrorism.
• Sovereignty Interests (Kashmir & BRI).
• Iran – sanctions – oil & Chahbahar neglected – platform to reconnect

SCO – New Delhi Declaration 2023:

• India was the chair of the SCO last year.
• It hosted the SCO Summit in the virtual format last July.
• Refused to sign declaration – on the issues of CPEC & BRI.

SCO Summit, 2024:

• The 24th Meeting of the SCO Council of Heads of State (SCO Summit) will be held on 04 July 2024
in Astana, under the presidency of Kazakhstan.
• Pakistan extended a formal invitation to PM Modi to attend the upcoming SCO 23rd Council of Heads
of Government (CHG) meeting in Islamabad in October, 2024.

25th SCO Summit, 2025:

• Council of Heads of State summit was held in Tianjin, China, from August 31 to September 1,
2025.
• Attended by PM Modi, Russia’s Putin, Pakistan’s Shahbaz Sheriff etc.
• Tianjin Declaration – Strong condemnation of terrorism, separatism, and extremism, including
explicit mention of the Pahalgam terror attack and call for ending cross-border movement of
terrorists; rejection of double standards on terrorism.
• India seeks greater action under three pillars – Security, Connectivity and Opportunity.

Email: csbiasacademy@[Link] 2 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

Why India must get a seat at UNSC & What are the challenges
in its course
Jaishankar, India’s Minister for External Affairs (MEA) said in 2019 “ a UNSC without India affects UN's
credibility”

India believes that the UNSC, which was constituted in 1945 after the World War II, does not reflect the
geopolitical realities. The emergence of a multipolar world order largely thanks to the rise of developing
economies like China, Brazil and India, have stressed the need for a reformed UN, which reflect the realities
of the 21st century .

UN Security Council (UNSC) is a group of up to 15 nations, of which there are 5 nations based on the great
powers that were the victors of World War II, who are double veto-wielding permanent members; plus 10
elected non-permanent members with two-year terms, who don’t have the veto power. A permanent seat in
UNSC would elevate India to the status of USA, UK, France, China and Russia in the diplomatic sphere and
warrant India a critical say in all global matters that matter globally.

Prime Minister Narendra Modi called for a reform of the United Nations Security Council (UNSC) to “make
it more democratic and participative.”

• India was one of the founding members of the UN in 1945

• India is world’s largest Democracy & voice of the third world nations
• India, with a population of 1.4 billion is poised is the world’ largest populous country
• India is a 4th biggest economy with a GDP of $4 trillion & the third largest country in terms of
purchasing power parity
• India is a responsible nuclear power & has the second largest standing army in the world,
• India has been elected for eight times to the UNSC temporary seat, more recently even for 2021-22
also
• India is a major contributor to the UN’s peacekeeping missions (UNPKF)
• More than 290,000 Indians have served in 50 of the 71 UN peacekeeping missions
• Currently, there are more than 5,000 troops and police from India who have been deployed to UN
peacekeeping missions, the fourth highest amongst troop-contributing countries.
• India is also among the highest financial contributors to the UN, with the country making regular
donations to several UN organs like the United Nations Democracy Fund (UNDEF).
• India’s candidature as a potential permanent UNSC member has received support from a vast majority
of nations. Only China & Pakistan are the nations that are constantly opposing India’s candidature.
• India sought the support of member countries by highlighting its commitment to multilateralism and
reforms.
• India highlighted its demand for transparency in mandates for UN peacekeeping missions and push for
the India-led Comprehensive Convention on International Terrorism (CCIT), and called for joint
efforts for UN reform and expansion of the Security Council.
• India also needs to invest in the UN with increased financial contributions in line with its share of the
world economy and by placing its people in key multilateral positions.

Email: csbiasacademy@[Link] 1 [Link]

 CSB IAS ACADEMY CONTACT NO: 9966436875

• In the 21st century, why should there be veto power in anyone’s hands? If a simple majority voting
method could replace the P-5 consensus method, the obstacles to UNSC reforms would reduce.
• The institution has been designed to privilege the most powerful states of the post WW-II nations via
the Veto power & Permanent Seats in the UNSC.

India is not a member of the UNSC—that too when economically and morally exhausted nations like France
and UK remain on the council.

India’s candidature as a potential permanent UNSC member has received support from a vast majority of
nations. Only China & Pakistan are the nations that are constantly opposing India’s candidature.

G4 nations – It is a Group of 4 nations supporting each other’s cause for a permanent seat at UNSC. It was
formed in 2005 and it includes India, Brazil, Germany and Japan. These four states (G4) even expressed
willingness to forgo veto power temporarily.

Obstacles in India’s path for a permanent seat

• Pressure from Latin America and Africa will increase if India is included. Despite India’s growing
economic & political weight in the world, there will be no reform just to let India in.
• India faces another close competitor in Asia that is Japan. Two new permanent seats again for Asia
can’t be desired.
• UK and France are already representing Europe at UNSC & the existing over-representation reduces
Germany’s chances.

Coffee Club nations –

Also known as “Uniting for Consensus” (UfC), formed in 1995, is a group comprising mainly against the G4
nations i.e. their regional adversaries and are against the expansion of UNSC. It primarily includes Italy,
Pakistan, Mexico and Egypt. The list also includes Argentina, South Korea, Spain, Turkey and Indonesia.

India’s approach will be guided by “Five S’s”, as set out by PM Modi:

1. Samman (Respect),
2. Samvad (Dialogue),
3. Sahyog (Cooperation), and
4. Shanti (Peace), to create conditions for universal
5. Samriddhi (Prosperity)

India’s overall objective during this tenure in the UN Security Council will be the achievement of N.O.R.M.S:
New Orientation for a Reformed Multilateral System.

“A Mid-20th century approach cannot serve the world in the 21st century” – PM Modi

PM Modi said that “In our civilisation, it is said that parivartanmeva sthiramasti (change is the only constant).
As a member of UNSC our attention will be on changing the global rules of governance. He also said that the
United Nations had failed to deliver on the vision of the organisation, and said the global body should address
the immediate needs of the world that is struggling with the fallout of the pandemic and the economic
downturn.

Conclusion:
The political and economic architecture of the emerging global order that the allied powers shaped at the end
of World War II has been altered since then. The UN remains unreflective of the current trajectory, especially
in the strategic and economic arenas.

Email: csbiasacademy@[Link] 2 [Link]