Every news story that matters for the International Relations part of UPSC Civil Services GS2 (Polity · Governance · IR), written for the exam: why in news, background, prelims facts, a practice MCQ and a mains question. 3,293 notes so far, updated daily.
Syllabus topics covered: India's bilateral relations (2717) · Policies of other countries affecting India (205) · India & neighbourhood (171) · Regional & global groupings (QUAD, BRICS, SCO, G20...) (109) · International institutions & agencies (UN, WTO, IMF...) (86) · Indian diaspora (5)
Why in news: The US military conducted a series of air strikes and a naval blockade against Iran, escalating tensions in the Strait of Hormuz.
The US military conducted six consecutive nights of air strikes hitting Bandar Abbas, Ahvaz, and Qeshm Island. A naval blockade was established to target oil tankers heading for Kharg Island to control the Strait of Hormuz.
Prelims pointers (4)
PlaceStrait of Hormuz: A strategic choke point connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
PlaceBandar Abbas: A major port city in Iran located on the coast of the Persian Gulf.
FactThe US military conducted six consecutive nights of air strikes as of the current reporting period.
PlaceKharg Island: An Iranian island and major oil export hub located in the Persian Gulf.
Mains angle
Q. Analyze the geopolitical significance of the Strait of Hormuz and the implications of naval blockades on global energy security and maritime trade.
Energy security risk: Disruption of oil transit through the Strait of Hormuz impacting global crude supply chains.
Maritime law conflict: Legal implications of naval blockades versus freedom of navigation in international waters.
Regional escalation: Risk of a broader Middle Eastern conflict affecting global oil price volatility and shipping insurance.
Why in news: The DGMA issued an advisory on July 15, 2026, warning shipowners to avoid deploying Indian seafarers in the Strait of Hormuz due to escalating attacks on merchant vessels.
The Directorate General of Maritime Administration (DGMA) operates under the Ministry of Ports, Shipping and Waterways. The advisory follows specific attacks on merchant ships including the Mombasa B and Al Bahyah. Shipowners must coordinate with the Maritime Domain Awareness Centre (MMDAC) and the Information Fusion Centre–Indian Ocean Region (IFC-IOR).
Prelims pointers (4)
BodyDGMA: Directorate General of Maritime Administration operates under the Ministry of Ports, Shipping and Waterways
BodyIFC-IOR: Information Fusion Centre–Indian Ocean Region is a maritime security hub for the Indian Ocean
PlaceStrait of Hormuz: A strategic chokepoint connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea
FactAdvisory issued on July 15, 2026, regarding security risks to Indian seafarers
Mains angle
Q. Examine the challenges faced by Indian maritime interests in the Strait of Hormuz and discuss the role of maritime domain awareness in ensuring safe sea lines of communication.
Geopolitical vulnerability: High dependence on the Strait of Hormuz for energy imports and maritime trade routes
Security coordination: Necessity of real-time intelligence sharing between IFC-IOR and international maritime bodies
Human capital risk: Vulnerability of the Indian seafaring workforce to non-state and state-sponsored maritime aggression
Keywords: Maritime Domain Awareness · Sea Lines of Communication (SLOC) · Geopolitical Chokepoints · Maritime Security · Strategic Autonomy
Why in news: The India-UK Comprehensive Economic and Trade Agreement (CETA) became effective on July 15, aiming to reduce tariffs and boost bilateral trade in textiles, agriculture, and pharmaceuticals.
The CETA facilitates reduced tariffs on Indian textiles, spices, and marine products while encouraging UK firms to establish global capability centers in Hyderabad. It includes a special visa category for 1,800 annual visas for specific professionals like chefs and yoga teachers.
Prelims pointers (4)
Intl. orgCETA: India-UK Comprehensive Economic and Trade Agreement effective from July 15
FactSpecial visa category allows 1,800 annual visas for chefs, yoga teachers, and classical musicians
PlaceHyderabad: Targeted location for UK global capability centers
Q. Analyze how bilateral trade agreements like the India-UK CETA can catalyze industrial growth and R&D collaboration while addressing sectoral trade imbalances.
Sectoral synergy: Integration of Indian traditional textiles with UK fashion houses to enhance export value
R&D collaboration: Joint investment in precision engineering and pharmaceutical research to bolster indigenous manufacturing
Labor mobility: Balancing skilled migration via special visa categories with domestic employment dynamics
Why in news: The Indian Air Force (IAF) is scheduled to participate in Exercise Pitch Black 2026, a multilateral air exercise aimed at enhancing regional interoperability.
Exercise Pitch Black 2026 will take place from July 20 to August 7, 2026, at Darwin, Tindal, and Amberley bases. It involves up to 100 aircraft and over 2,500 personnel from 20 nations, including the debut of Japan's F-35 Lightning II and Indonesia's T-50I Golden Eagle.
Prelims pointers (4)
FactExercise Pitch Black 2026 involves up to 100 aircraft and over 2,500 personnel.
PlaceExercise locations include Darwin, Tindal, and Amberley bases in Australia.
S&TJapan's F-35 Lightning II and Indonesia's T-50I Golden Eagle aircraft will debut in the 2026 edition.
BodyThe exercise is hosted/led by the Royal Australian Air Force.
Mains angle
Q. Discuss how multilateral military exercises like Pitch Black contribute to regional security architecture and India's 'Act East' policy objectives.
Strategic signaling: Demonstrating interoperability with key Indo-Pacific partners to counter regional hegemony
Defense industrial synergy: Showcasing advanced platforms like F-35 and T-50I to foster joint technological standards
Geopolitical alignment: Strengthening maritime and aerial security cooperation within the ASEAN-Australia-India framework
Why in news: The widening climate finance gap is a critical issue as developed nations reduce funding despite developing nations requiring $2 trillion annually for climate adaptation.
Developing nations require a minimum of $2 trillion annually to adapt to extreme weather conditions. The World Bank has recently lowered its climate finance targets amidst a reduction in contributions from major donor nations.
BodyWorld Bank: Multilateral development bank that recently adjusted its climate finance targets
FactReport Date: July 16, 2026
Mains angle
Q. Discuss the ethical and economic implications of the widening climate finance gap between developed and developing nations in the context of global climate justice.
Historical responsibility: Disproportionate impact of fossil-fuel-led industrialization on global carbon budgets
Financial shortfall: Inadequate capital flow to meet the $2 trillion annual adaptation requirement for vulnerable nations
Institutional shift: Impact of reduced World Bank climate targets on multilateral climate finance mechanisms
Keywords: Climate Justice · Common but Differentiated Responsibilit… · Climate Adaptation · Multilateralism · Carbon Debt
Why in news: The UN reported a spike in maritime fatalities and disappearances of Rohingya refugees in the Andaman Sea and Bay of Bengal in 2025-2026.
In late June 2026, two boats carrying over 500 people from Myanmar's Rakhine State capsized off the coast. By 2025, nearly 900 Rohingya refugees were reported missing or dead in the Andaman Sea and Bay of Bengal.
Prelims pointers (4)
FactNearly 900 Rohingya refugees missing or dead in Andaman Sea/Bay of Bengal in 2025.
FactOver 500 passengers feared dead in two boat capsizings off Myanmar's coast in June 2026.
FactAt least 730,000 Rohingya sought shelter in Bangladesh following the 2017 Myanmar military offensive.
BodyUNHCR (UN Refugee Agency) and IOM (International Organization for Migration) are the primary bodies monitoring the crisis.
Mains angle
Q. Discuss the humanitarian and security implications of the Rohingya refugee crisis on the maritime security of the Bay of Bengal and the Andaman Sea.
Maritime security: Increased risk of human trafficking and unregulated migration in the Bay of Bengal.
Regional stability: Pressure on Bangladesh's infrastructure and resources due to the 730,000+ refugees since 2017.
Humanitarian gap: Lack of safe maritime corridors leading to high mortality rates in the world's deadliest migrant route.
Keywords: Rohingya crisis · Maritime security · Humanitarian intervention · Refugee crisis · Bay of Bengal · Rakhine State
Why in news: Russia is facing a severe gasoline shortage due to Ukraine-led strikes on refining infrastructure, leading to an unusual trade reversal where Indian refiners are supplying gasoline to Russia.
Russia's refining capacity is estimated to be down by nearly 40% due to Ukrainian strikes. Major Russian firms involved include Rosneft, Gazprom Neft, and Lukoil. India currently serves as Russia's largest buyer of seaborne crude.
Prelims pointers (3)
FactRussia's refining capacity loss: nearly 40% due to infrastructure damage.
PostRosneft, Gazprom Neft, and Lukoil: Major Russian state-controlled energy corporations.
FactIndia's role: Russia's largest buyer of seaborne crude as of the current period.
Mains angle
Q. Analyze how the disruption of global energy supply chains and infrastructure damage in conflict zones impact the energy security and trade dynamics of major emerging economies like India.
Supply chain volatility: Shift from crude imports to refined product exports due to infrastructure destruction.
Geopolitical leverage: India's strategic position as a primary energy partner amidst Western sanctions and Russian shortages.
Energy security trade-offs: Balancing domestic refining priorities against the demands of distressed international partners.
Why in news: Iran launched fresh attacks on US military bases in Jordan, Kuwait, and Bahrain, leading to a cycle of retaliatory strikes by the US.
The US targeted Iranian command centers, air defense sites, and coastal surveillance facilities in Bandar Abbas and Greater Tunb Island. The escalation follows six days of renewed hostilities between the two nations.
Prelims pointers (3)
PlaceBandar Abbas: A major port city in the Hormoz Strait, Iran
PlaceGreater Tunb Island: An island in the Gulf of Aden, historically significant in maritime security
FactThe conflict involved strikes on military bases in Jordan, Kuwait, and Bahrain
Mains angle
Q. Analyze the implications of escalating military tensions in the Persian Gulf on global energy security and regional maritime stability.
Energy security risk: Potential disruption of oil transit through the Strait of Hormuz affecting global supply chains
Regional power dynamics: Shift in balance of power between Iran and Western-aligned Gulf states
Diplomatic stalemate: Failure of de-escalation mechanisms leading to direct kinetic confrontation
Why in news: Former RBI Governor Raghuram Rajan was appointed to a US Federal Reserve task force to assess the institutional implications of the Fed's asset holdings.
The newly appointed US Federal Reserve Chairman, Kevin Warsh, formed five task forces to reshape monetary policymaking. Raghuram Rajan joins a balance sheet policy task force alongside Harvard economist Karen Dynan and Jeremy Stein.
Prelims pointers (4)
PostKevin Warsh: Chairman of the US Federal Reserve
PostRaghuram Rajan: Former Governor of the Reserve Bank of India (RBI)
BodyFederal Reserve: The central banking system of the United States
FactThe task force will specifically assess the costs, benefits, and institutional implications of the Fed's asset holdings
Mains angle
Q. Discuss how the monetary policy shifts of the US Federal Reserve influence global financial stability and the economic policies of emerging economies like India.
Monetary spillover: Impact of US interest rate fluctuations on capital flows and currency stability in emerging markets
Institutional transparency: Balancing central bank independence with the need for public accountability in asset management
Global liquidity: The role of Fed asset holdings in shaping international credit availability and inflation dynamics
Why in news: The European Commission President announced a drone production deal with Ukraine to leverage EU industrial capacity and Ukrainian battlefield expertise amidst escalating Russian missile strikes.
The EU-Ukraine drone deal aims to combine Ukrainian battlefield ingenuity with European industrial scale to rapidly scale up production. The agreement was announced during the visit of Ursula von der Leyen to Kyiv on Ukraine's Statehood Day.
Prelims pointers (3)
BodyEuropean Commission: The executive branch of the European Union responsible for proposing legislation and implementing EU policies.
PostUrsula von der Leyen: Serves as the President of the European Commission.
FactThe drone deal focuses on combining Ukrainian battlefield expertise with EU industrial capacity for rapid production scaling.
Mains angle
Q. Analyze the significance of the European Union's industrial and technological integration with Ukraine in the context of the ongoing Russia-Ukraine conflict.
Strategic Autonomy: Balancing EU industrial capacity with the urgent need for rapid military technology production.
Economic Integration: Leveraging EU industrial scale to sustain Ukraine's long-term defense infrastructure and manufacturing.
Geopolitical Signaling: Using industrial cooperation as a tool to deter further Russian aggression and solidify EU-Ukraine ties.
Why in news: The Union Cabinet approved the Ganga and Varuna Corridor projects to alleviate traffic congestion and boost tourism in Varanasi.
The Union Cabinet approved two elevated road projects: the 46-km Ganga Corridor and the 43.2-km Varuna Corridor. The total estimated cost for these infrastructure projects is Rs 25,000 crore.
Prelims pointers (4)
FactGanga Corridor length: 46 km
FactVaruna Corridor length: 43.2 km
FactTotal project cost: Rs 25,000 crore
PlaceVaranasi: Located in Uttar Pradesh, home to the Kashi Vishwanath Temple
Mains angle
Q. Discuss how integrated infrastructure projects like the Ganga and Varuna Corridors can balance urban mobility with heritage preservation in ancient Indian cities.
Heritage-Development Conflict: Balancing modern transit requirements with the preservation of Varanasi's historical and religious landscape
Urban Mobility Bottlenecks: Addressing the logistical challenges of high-density pilgrimage tourism and city-wide traffic congestion
Economic Multiplier: Leveraging infrastructure to stimulate local tourism and regional trade connectivity
Why in news: The UK-India Free Trade Agreement (FTA) has officially taken effect, providing 99% duty-free market access for Indian exporters to the United Kingdom.
The FTA provides duty-free access for 99% of Indian exports to the UK. Key beneficiary sectors include biotech, pharmaceuticals, textiles, marine products, engineering goods, and coffee. The agreement includes a phased reduction of tariffs over a period of five to six years.
Prelims pointers (3)
FactThe UK-India FTA provides duty-free access for 99% of Indian exports.
PlaceKarnataka (specifically Bengaluru) is a primary hub for the IT and MSME sectors benefiting from the deal.
FactTariff reductions under the FTA are scheduled to be phased in over a 5-6 year period.
Mains angle
Q. Analyze how the UK-India Free Trade Agreement can bolster India's manufacturing ambitions while addressing the challenges faced by MSMEs in global competition.
Trade imbalance risk: Potential for increased UK imports of high-value goods to outpace Indian export growth.
MSME integration: Challenges in scaling small-scale manufacturing units to meet stringent UK quality and certification standards.
Sectoral shift: Transition of the Indian economy towards high-value biotech and pharmaceutical exports over traditional commodities.
Why in news: Australia agreed to supply uranium to India during the 3rd India-Australia Annual Summit in July 2024, signaling a shift in its export policy towards non-NPT members.
The agreement was finalized during the 3rd India-Australia Annual Summit on July 9, 2024, in Melbourne. It aims to support India's nuclear energy expansion goal of reaching 100 GW capacity by 2047.
Prelims pointers (4)
FactIndia's nuclear energy expansion target: 100 GW capacity by 2047
BodyNPT: Non-Proliferation Treaty, which Australia previously used as a criterion for uranium exports
PlaceMelbourne: Venue of the 3rd India-Australia Annual Summit in July 2024
S&TUranium: Primary fuel source for nuclear fission in power generation
Mains angle
Q. Discuss how the expansion of nuclear energy cooperation between India and Australia strengthens the 'Comprehensive Strategic Partnership' and addresses India's energy security needs.
Strategic alignment: Strengthening the Quad-aligned security architecture through shared energy resources
Regulatory evolution: Transition from strict non-NPT export restrictions to pragmatic bilateral energy cooperation
Energy transition: Balancing base-load nuclear power requirements with India's 2047 decarbonization targets
Why in news: The Supreme Court cleared the Uttar Pradesh government’s Kukrail night safari and zoological park project following approvals from the Central Zoo Authority and Central Empowered Committee.
The project is located in the Kukrail Reserve Forest, Uttar Pradesh. The Supreme Court mandated that the Central Empowered Committee (CEC) must conduct periodic visits to ensure compliance with environmental conditions.
Prelims pointers (3)
BodyCentral Zoo Authority (CZA): Statutory body under the Ministry of Environment, Forest and Climate Change to regulate zoos and safari parks.
BodyCentral Empowered Committee (CEC): Body established to oversee environmental clearances and compliance in sensitive zones.
PlaceKukrail Reserve Forest: Located in the state of Uttar Pradesh.
Mains angle
Q. Discuss the balance between promoting eco-tourism and ensuring the conservation of biodiversity in protected forest areas in India.
Regulatory oversight: Ensuring the Central Zoo Authority maintains rigorous standards for animal welfare and habitat preservation.
Compliance monitoring: Addressing the gap between obtaining environmental clearances and long-term adherence to ecological safeguards.
Eco-tourism trade-offs: Balancing the economic benefits of night safaris with the potential disruption of nocturnal wildlife behavior.
Why in news: Union Minister Piyush Goyal hailed 2026 as a 'historical year' for India-EU relations following the third India-EU Trade and Technology Council meeting in Brussels.
The India-EU Free Trade Agreement (FTA) aims to expedite investment flows and reduce dependencies on single sources. A forward-looking action plan for 2026-27 focuses on strategic technologies and tangible benefits for citizens.
Prelims pointers (3)
BodyIndia-EU Trade and Technology Council: A bilateral forum to coordinate on trade and technology cooperation.
FactThe India-EU FTA is expected to be signed in late 2024.
FactThe action plan for strategic technologies covers the period 2026-2027.
Mains angle
Q. Discuss how the India-EU Free Trade Agreement can help India achieve its goal of diversifying supply chains and reducing import dependencies on single sources.
Supply chain resilience: Reducing over-dependence on single-source origins for critical minerals and components.
Strategic technology alignment: Harmonizing standards for emerging technologies to facilitate cross-border investment.
Trade-off dynamics: Balancing domestic manufacturing protections with the liberalization of EU market access.
Why in news: SEBI introduced stricter code of conduct provisions requiring officials to recuse themselves from matters involving family or material financial interests exceeding ₹2 million to prevent conflicts of interest.
The Securities and Exchange Board of India (SEBI) mandated recusal for officials if a conflict involves relatives, close friends, or associates from the previous three years. The threshold for material financial interest is set at ₹2 million or 5% of total investments.
Prelims pointers (3)
BodySEBI: Statutory body established under the SEBI Act, 1992, to regulate the securities market.
FactRecusal threshold: Material financial interests exceeding ₹2 million or 5% of total investments.
FactLook-back period: Officials must recuse from matters involving associates from the previous three years.
Mains angle
Q. Discuss the importance of robust conflict-of-interest frameworks in ensuring the integrity of independent regulatory bodies like SEBI.
Institutional integrity: Preventing 'regulatory capture' where private interests of officials influence public policy decisions.
Transparency mechanism: Use of digital records and annual public disclosure to ensure accountability of high-ranking officials.
Ethical oversight: Balancing the personal rights of officials with the necessity of impartial adjudication in capital markets.
Keywords: Conflict of Interest · Regulatory Capture · Institutional Integrity · Transparency · Code of Conduct · Accountability
Why in news: A Pew Research Center study revealed a significant shift in global public perception where China is viewed more favorably than the US in 25 out of 36 surveyed countries.
The study conducted by Pew Research Center between February and May 2024 surveyed 36 countries. It found that favorable views of Xi Jinping exceeded those of Donald Trump in most polled nations, with notable shifts in Spain, Indonesia, Italy, Greece, and Canada.
Prelims pointers (3)
BodyPew Research Center: A non-profit 'fact tank' that conducts opinion polling and demographic research.
FactChina was viewed more positively than the US in 25 out of 36 surveyed countries.
FactThe study tracked public perception shifts from the baseline year of 2002.
Mains angle
Q. Analyze the factors contributing to the shifting global perception of China's leadership and its implications for the existing US-led liberal international order.
Soft power asymmetry: China's infrastructure-led diplomacy (BRI) vs. US focus on democratic values and human rights.
Geopolitical realignment: Growing 'Global South' preference for non-interventionist economic models over Western-led security architectures.
Information warfare: Impact of state-sponsored media and digital diplomacy on shaping public opinion in Western and developing nations.
Keywords: Soft Power · Geopolitical Realignment · Public Perception · Liberal International Order · Global South
Why in news: Iran threatened to expand maritime disruptions to the Red Sea and Bab el-Mandeb strait in response to US actions, impacting global oil supply chains.
Saudi Arabia increased crude exports via the Yanbu port to average 4 million barrels per day. The Bab el-Mandeb strait and the Strait of Hormuz are the primary maritime chokepoints for Gulf oil exports.
Prelims pointers (3)
PlaceBab el-Mandeb Strait: Connects the Red Sea to the Gulf of Aden and the Arabian Sea.
PlaceStrait of Hormuz: A critical maritime chokepoint between the Persian Gulf and the Gulf of Oman.
FactSaudi Arabia's Yanbu port exports averaged 4 million barrels per day in recent shipments.
Mains angle
Q. Analyze the geopolitical implications of maritime chokepoint disruptions in the Middle East on global energy security and international trade routes.
Energy security risk: Simultaneous closure of Hormuz and Bab el-Mandeb creates a global supply shock.
Geopolitical leverage: Iran's use of maritime 'chokepoints' as a tool of asymmetric warfare against Western interests.
Trade route diversification: Saudi Arabia's shift toward Yanbu highlights the need for alternative export corridors.
Why in news: The Cauvery Water Regulation Committee (CWRC) postponed issuing directions due to a severe drop in water storage levels in Karnataka's Cauvery catchment area.
The CWRC met in New Delhi to address the water crisis between Karnataka and Tamil Nadu. Current storage levels plummeted to 56.77 tmcft, a significant decrease from the 107.18 tmcft recorded in the previous year.
Prelims pointers (4)
BodyCWRC: Cauvery Water Regulation Committee is the body responsible for managing water sharing between Karnataka and Tamil Nadu.
FactCurrent storage level in Cauvery catchment area: 56.77 tmcft (as of July 2024).
FactPrevious year storage level: 107.18 tmcft.
PlaceCauvery River: Flows through Karnataka, Tamil Nadu, and Puducherry.
Mains angle
Q. Discuss the challenges of inter-state water sharing in India and the role of regulatory bodies in mitigating interstate water conflicts.
Federal friction: Conflict between state-specific agricultural needs and Supreme Court-mandated water sharing quotas.
Data asymmetry: Lack of real-time, transparent hydrological data sharing between riparian states.
Climate vulnerability: Impact of erratic monsoon patterns on the sustainability of existing water-sharing agreements.
Keywords: Inter-state water disputes · Riparian rights · Hydrological stress · Federalism · Water governance
Why in news: The India-U.K. Double Contributions Convention (DCC) was established to provide a 60-month social security exemption for workers moving between the two nations starting July 15, 2026.
The DCC allows temporary workers to avoid dual social security contributions for up to 60 months. It complements the India-U.K. Comprehensive Economic and Trade Agreement (CETA) and requires an EPFO certificate for eligibility.
BodyEPFO: Employees must obtain an EPFO certificate to claim the exemption under the DCC.
FactThe DCC becomes effective from July 15, 2026, and is not retroactive.
Intl. orgCETA: The DCC acts as a complementary framework to the India-U.K. Comprehensive Economic and Trade Agreement.
Mains angle
Q. Discuss how bilateral social security agreements like the India-U.K. DCC facilitate labor mobility and enhance the efficacy of comprehensive economic trade agreements.
Labor mobility: Reducing the financial burden of dual social security contributions for migrant workers.
Regulatory alignment: Harmonizing social security frameworks to facilitate seamless cross-border employment.
Economic integration: Strengthening the CETA framework by addressing worker-centric welfare and mobility issues.
Why in news: US President Donald Trump convened a high-level meeting to discuss expanding military operations against Iran following retaliatory strikes and threats to infrastructure.
US President Donald Trump, Vice President JD Vance, and Secretary of State Marco Rubio met in the situation room to discuss military expansion. The meeting followed four days of US strikes on Iranian air defenses and infrastructure near the Strait of Hormuz.
Prelims pointers (3)
PlaceStrait of Hormuz: A strategic maritime chokepoint in the Middle East connecting the Persian Gulf to the Gulf of Oman.
FactIran retaliated with missile and drone attacks on US bases located in Jordan, Kuwait, and Bahrain.
S&TThe US warned of intensifying attacks on Iranian power plants and bridges to pressure negotiations on the nuclear program.
Mains angle
Q. Analyze the geopolitical implications of escalating military tensions in the Strait of Hormuz on global energy security and maritime trade routes.
Energy security risk: Potential disruption of oil and LNG transit through the Strait of Hormuz affecting global markets.
Regional instability: Risk of a broader Middle Eastern conflict involving neighboring states and international maritime security.
Nuclear non-proliferation: The use of kinetic military pressure as a tool to enforce international nuclear agreements.
Why in news: India secured an 85% steel exemption in the India-UK Free Trade Agreement (FTA) scheduled to commence on July 15, 2024, amidst rising global protectionism.
The India-UK FTA provides 99% tariff-free access for Indian exports. India secured an 85% exemption for baseline steel trade with the UK, while facing potential hurdles from the UK's Carbon Border Adjustment Mechanism (CBAM).
Prelims pointers (4)
Intl. orgCBAM: A carbon pricing mechanism by the UK/EU to put a fair price on carbon emissions embedded in imports.
FactIndia secured an 85% exemption for baseline steel trade under the India-UK FTA.
FactThe India-UK FTA aims to provide 99% tariff-free access for Indian exports.
PlaceUK: United Kingdom
Mains angle
Q. Examine how the shift towards 'transactional' Free Trade Agreements and carbon-based trade barriers like CBAM impact India's export competitiveness in the global steel market.
Trade-environment nexus: Balancing export growth with compliance costs of the UK's Carbon Border Adjustment Mechanism (CBAM)
Protectionist friction: Navigating EU steel import limits while seeking preferential market access in the UK
Strategic trade-offs: Balancing immediate tariff exemptions with long-term sustainability requirements in bilateral trade deals