1. India Faces Tariff Threat Amid Global Trade Wars
Background
The U.S. has implemented reciprocal tariffs, leading to a global economic slowdown and price drops, especially in oil.
Developing economies, particularly in Asia, are affected due to their export dependency on the U.S.
The Situation Now
Countries like Vietnam and Cambodia face high tariffs (up to 49%) threatening industries like garments.
India’s exports to the U.S. are also under threat with potential losses projected at $7.76 billion.
Smaller nations cannot retaliate and are left to negotiate under pressure.
Way Forward
India must:
Secure a balanced trade deal with the U.S.
Fast-track pacts with the EU, UK, Canada
Deepen ties with Russia, ASEAN, and Japan
Convert this threat into an opportunity by reforming domestic trade policies
2. WTO’s Relevance Under Scrutiny Amid Global Trade Shifts
Background
WTO, once a central pillar of global trade governance, is now weakened by lack of consensus and U.S. obstruction of its appellate body.
Only one multilateral deal (fisheries) concluded since Doha Round in 2001.
The Situation Now
WTO is unable to handle current trade complexities.
U.S. has sidelined WTO, enforcing tariffs independently, especially on China and steel.
India and others express concerns over agricultural protections and subsidies.
Way Forward
A complete reform of WTO processes, including:
Revising consensus-based decision-making
Strengthening transparency and monitoring
Addressing global challenges like China’s market practices collaboratively
3. India Considers Radical Reforms Under Indus Waters Treaty
Background
The Indus Waters Treaty, a 1960 pact between India and Pakistan, regulates water sharing from rivers originating in India.
Tensions escalated post-Pahalgam attack and earlier strikes.
The Situation Now
India announced holding the treaty "in abeyance." (Holding something in abeyance means to stop it from happening or being used at present. It can also mean to stall or postpone something.)
Communications and data-sharing with Pakistan suspended.
India may explore drawdown flushing and design changes to hydro projects.
Way Forward
India may:
Revisit dispute resolution frameworks
Assert upper riparian rights under global norms (The term "upper riparian" refers to a situation where the upper riparian controls the river flows. According to the global doctrines, an upper riparian state may use the part of the waters of any river lying wholly within that state, even if it reduces the volume of water entering the lower riparian state.)
Balance strategic assertiveness with feasibility, ensuring agricultural and ecological stability
4. Patent Boom in India Signals Innovation Rise
Background
Patent filings in India were limited a decade ago with relatively low innovation documentation from startups and MSMEs.
The Situation Now
92,172 patent applications were filed in 2023-24 — a 116% surge since 2014-15.
Startups and MSMEs drove this rise with a 310% increase in 5 years.
