NEWS:Philippines President Ferdinand Marcos Jrs state visit to India concluded with the signing of a Strategic Partnership Agreement

GS-2 international relation

signalling a deepening of bilateral ties amidst growing tensions in the Indo-Pacific and China’s assertiveness.

• India and the Philippines signed a Strategic Partnership Agreement, reinforcing historical and security ties.
• First-ever joint naval exercises between Indian and Philippine Navies were conducted in the South China Sea, drawing criticism from China.
• India reiterated support for the 2016 UNCLOS arbitration ruling, which upheld the Philippines’ maritime claims.
• The Philippines became India’s fifth strategic partner in East Asia, after Japan, Vietnam, Australia, and South Korea.
• Discussions included defence hardware acquisition, notably expanding on the BrahMos missile export.
• Bilateral agreements covered military coordination (across all services), visa liberalisation, and direct flight connectivity.
• Talks on a Preferential Trade Agreement (PTA) and revision of the ASEAN-India Trade in Goods Agreement (AITIGA) are underway.

ASEAN-India Trade in Goods Agreement (AITIGA)

ASEAN-India Trade in Goods Agreement was signed at the 7th ASEAN Economic Ministers-India Consultations in Bangkok, Thailand, in 2009

It is a trade deal between the ten member states of ASEAN and India.

It was signed at the 7th ASEAN Economic Ministers-India Consultations in Bangkok, Thailand, in 2009. The agreement entered into force on 1 January 2010.

The agreement originated out of the Framework Agreement on Comprehensive Economic Cooperation between India and ASEAN created in 2003. 

This framework agreement set the basis for India and ASEAN to conclude further agreements.

AITIGA covers trade in physical goods and products; it does not apply to trade in services. 

ASEAN and India signed a separate ASEAN-India Trade in Services Agreement in 2014. 

Along with the ASEAN-India Investment Agreement, the three agreements collectively form the ASEAN-India Free Trade Area

NEWS:The Reserve Bank of India (RBI) has decided to pause its cycle of interest rate cuts amidst rising global trade uncertainties

GS-3 economy

particularly due to fresh U.S. tariffs on Indian goods, and signs of weakening domestic credit demand.

• RBI’s Monetary Policy Committee paused further rate cuts after implementing 100 bps reduction since February 2025.
• Governor Sanjay Malhotra cited global trade uncertainties, including U.S. tariff hikes, for the pause.
• U.S. imposed an additional 25% tariff on Indian imports; more countries could face similar actions.
• Loan growth across sectors has significantly slowed: consumer durables (–3%), housing (9.6% vs 36%), vehicles (5 percentage points drop).
• Corporate borrowing declined, with industrial loan growth at 5.5% in June 2025 (down from 8.1% in June 2024).
• RBI stressed the need for broader reforms—monetary policy alone cannot revive economic growth.
• Calls made for GST rate rationalization, fuel price reductions, and strategic fiscal interventions.

Monetary Policy Committee (MPC):

The MPC was setup after a Memorandum of Understanding between the government and the RBI about the conduct of the new inflation-targeting monetary policy framework.

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016 to provide for a statutory and institutionalized framework for an MPC.

Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member MPC.

Function: The MPC is entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. 

The MPC replaced the previous arrangement of Technical Advisory Committee.

Composition:

MPC will have six members: the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board, and the remaining three members would represent the Government of India.

The external members hold office for a period of four years

NEWS:The 2024 Annual Groundwater Quality Report by the Central Ground Water Board (CGWB) reveals that India is facing a severe groundwater contamination crisis, affecting millions across rural and urban regions

GS-3 environment and ecology

• Over 85% of rural drinking water and 65% of irrigation water in India come from groundwater.
• The 2024 CGWB report shows nitrate contamination in 20% of samples from 440 districts.
• Excess fluoride found in 9% of samples, causing widespread skeletal and dental fluorosis.
• Arsenic and uranium levels in Punjab, Bihar, and Rajasthan far exceed WHO limits.
• 13% of groundwater samples exceed safe iron limits; heavy metals like lead and mercury also prevalent.
• 56% of Indian districts have unsafe nitrate levels — a major risk for infants.
• Lack of legal authority, fragmented institutions, and poor monitoring are key challenges.

Central Ground Water Authority (CGWA): Established in 1997 under the Environmental Protection Act, 1986.

• Responsible for issuing guidelines, granting permits, and regulating groundwater extraction in notified areas.
• Monitors overexploited zones and mandates rainwater harvesting in industries, housing, and urban projects.
• Central Ground Water Board (CGWB): Conducts groundwater assessments, mapping, and artificial recharge projects.
  • Implements the Master Plan for Artificial Recharge to Groundwater (2020), aiming for 1.42 crore recharge structures.
• State-Level Regulation
  • State Groundwater Acts: Several states, such as Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh, have enacted specific groundwater acts to regulate extraction and conservation.
    • These laws generally empower local authorities to monitor and manage groundwater.
  • Model Groundwater Bill: A 2017 framework for states to adopt sustainable groundwater practices, focusing on participatory and equitable use.

NEWS:The International Court of Justice (ICJ) has issued a historic advisory opinion on the climate obligations of states

GS-3 environment

reinforcing legal responsibilities under international law and supporting the global climate justice movement, especially for vulnerable nations.

• ICJ unanimously ruled that states have legal obligations to protect the climate, citing duties from treaties and customary international law.
• The court emphasized 1.5°C as the binding target, raising ambition beyond the Paris Agreement’s “well below 2°C” threshold.
• It declared that Nationally Determined Contributions (NDCs) must reflect each country’s highest possible ambition and be implemented with due diligence.
• Developed countries have a legal obligation to provide finance and technology transfer to developing nations for climate mitigation and adaptation.
• The court acknowledged the adverse effects of climate change on human rights, especially for vulnerable populations, and called for a just transition.
• Causation is scientifically provable, allowing countries to be held responsible for their proportional contributions to global emissions.
• The opinion is expected to strengthen global climate litigation and help Global South countries hold major emitters accountable.

International Court of Justice (ICJ)

The International Court of Justice (ICJ), also known as the World Court, is the principal judicial organ of the United Nations (UN)

It was established in June 1945 by the Charter of the UN and began work in April 1946.

The seat of the Court is at the Peace Palace in The Hague (Netherlands).

Of the six principal organs of the UN, it is the only one not located in New York, United States.

The hearings of the ICJ are always public.

Official Languages: French and English

MAINS MOCK QUESTION

The ASEAN–India Trade in Goods Agreement (AITIGA) has been under review to address structural imbalances. Critically examine the significance of this review in the context of India’s trade relations with ASEAN, and suggest measures to make the agreement more equitable and future-ready