The Declining Investor Sentiment Towards India: High Growth Amidst Capital Outflows

India has retained its position as the fastest-growing major economy in the world, registering an average GDP growth rate of 8.2% between 2021 and 2024. This pace has outstripped the performance of other prominent economies, including Vietnam and China. The upward trajectory continued into 2025, with the economy expanding by 7.4% in the first quarter and 7.8% in the second. However, this strong economic performance has not translated into consistent foreign portfolio investment (FPI) inflows. With the exception of 2023–24, which saw FPIs invest $25.3 billion, the broader trend across recent years has been dominated by net outflows—$18.5 billion in 2021–22, $5.1 billion in 2022–23, $14.6 billion in 2024–25, and $2.9 billion during 2025–26 up to September. This persistent dissonance between robust GDP growth and capital flight highlights ongoing investor caution and skepticism regarding India’s medium-term outlook.

The Role of Foreign Capital in India''s Economic Development

·       Foreign capital, comprising both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI), has played a pivotal role in India’s development since the liberalization of the economy in 1991. This external capital has helped fill financial gaps that domestic savings alone could not bridge, acting as a critical enabler of economic expansion. It has financed key investments, supported capital-scarce sectors, and supplemented domestic resources.

·       FDI, in particular, has modernized several industrial sectors, introduced advanced technologies, improved infrastructure, generated employment, and furthered India’s integration into global supply chains. It has also significantly bolstered India’s global competitiveness. Meanwhile, FPI has added depth to India’s capital markets and improved liquidity, albeit with the associated risks of volatility. Beyond capital inflows, foreign investments have driven innovation, enhanced digital services such as IT and e-commerce, and helped maintain balance of payments stability by financing current account deficits.

The Paradox of Foreign Capital: Growth Without Inflows

·       Despite the impressive 7.8% GDP growth in early 2025, India has faced declining foreign capital inflows. Net capital flows dropped to $18.3 billion in 2024–25, marking the lowest level since the global financial crisis of 2008–09. Furthermore, capital inflows in the April–June 2025 quarter were more than 40% lower compared to the same period the previous year. Net capital flows encompass foreign investment, external borrowings, foreign aid, and deposits from non-resident Indians. According to Balance of Payments (BoP) data, net foreign investment has plunged dramatically—from a peak of $80.1 billion in 2020–21 to just $4.5 billion in 2024–25. This total includes only $959 million in FDI and $3.6 billion in FPI, with most of the latter flowing into debt markets. BoP, which tracks financial transactions between India and the rest of the world, provides a comprehensive picture of money flows stemming from trade, investments, and loans involving individuals, corporations, and governments.

·       Equity markets, however, experienced substantial sell-offs. Meanwhile, external commercial borrowings, which had declined in previous years, rebounded sharply to $15.8 billion in 2024–25. The persistent gap between India’s strong GDP growth and weak foreign capital inflows underscores the broader unease among investors regarding India’s economic prospects and future stability.

Underlying Factors Behind the Decline in Capital Flows

·       One of the key drivers of the current decline in capital flows lies in the nature of past investments. A significant portion of the FDI inflows in the last decade—particularly during the peak year of 2020–21—came from private equity (PE) and venture capital (VC) funds targeting sectors such as retail, e-commerce, financial services, green energy, healthcare, and real estate. These investments are now reaching maturity, prompting many investors to exit and monetize their holdings, leading to diminished net inflows.

·       Industry analysts report that PE and VC exits were valued at $24 billion in 2022, $29 billion in 2023, and $33 billion in 2024. In 2024, approximately 59% of these exits occurred via public markets, buoyed by strong stock valuations. FPIs have also been selling their holdings, but these exits have been largely offset by the sustained participation of domestic investors. This domestic support has helped maintain attractive market valuations, facilitating profitable exits for both FPIs and PE/VC players.

Mounting Balance of Payments Pressures

·       India’s merchandise trade deficit has surged significantly, reaching $287.2 billion in 2024–25—more than three times the level recorded in 2007–08. So far, strong surpluses in services exports and remittances have helped keep current account deficits below $50 billion in most years. These deficits have been financed by steady capital inflows, which have also contributed to the accumulation of foreign exchange reserves. However, new risks are emerging. The recent imposition of 50% tariffs on Indian exports by U.S. President Trump now threatens India''s access to an $86.5 billion export market. Compounding this, capital inflows remain fragile, increasingly driven by investor confidence in corporate earnings and market valuations rather than headline GDP figures.

·       As a result of recent capital outflows and heightened trade concerns, the Indian rupee has depreciated to a historic low of 88.37 against the U.S. dollar. In response to these pressures, the government has implemented a series of measures. These include reductions in the Goods and Services Tax (GST) rates to spur domestic consumption and corporate earnings, as well as the formation of a task force to push forward next-generation reforms aimed at improving the ease of doing business.

·       Despite impressive economic growth, the weakening momentum of foreign capital inflows and mounting external vulnerabilities have raised significant concerns about the sustainability of India’s current growth trajectory. The country now faces the dual challenge of maintaining investor confidence while navigating an increasingly complex global economic environment.

Indo-China Border Dispute: Persistent Challenges in Defining the Line of Actual Control (LAC)

Despite over three decades of diplomatic efforts and multiple bilateral agreements since 1993, India and China have been unable to formally define the Line of Actual Control (LAC), keeping their border dispute unresolved and prone to recurring tensions. The failure to achieve a mutually accepted understanding of the LAC has allowed both countries to maintain overlapping territorial claims, leading to frequent stand-offs and military confrontations.

Introduction

The India-China border dispute remains one of Asia''s most entrenched and complex territorial conflicts, deeply rooted in historical claims, evolving geopolitical interests, and sensitive national security considerations. Although both countries have engaged in long-standing diplomatic dialogues and confidence-building initiatives since the late 1980s, the lack of clarity around the LAC continues to fuel instability. Each side patrols up to what it considers the LAC, creating repeated flashpoints for military friction. This ongoing ambiguity has kept the dispute alive, despite formal mechanisms meant to preserve peace along the frontier.

Early Diplomatic Engagements and Initiatives

·       The diplomatic thaw began with Prime Minister Rajiv Gandhi’s 1988 visit to Beijing, which marked a significant shift in bilateral relations. However, subsequent political transitions in India caused delays in the negotiation process. By the early 1990s, both India and China acknowledged the need for peaceful engagement and resumed structured talks. Between 1988 and 1993, six rounds of the Joint Working Group (JWG) meetings laid the foundation for resuming border trade and initiating military-to-military dialogues.

·       Further momentum was achieved in 1992 when India’s Defence Minister Sharad Pawar visited China, leading to greater cooperation in academic, scientific, and military exchanges. These early years set the stage for the first formal agreement aimed at maintaining peace along the disputed border.

The 1993 Border Peace and Tranquillity Agreement (BPTA)

·       A major milestone was reached in September 1993, when Prime Minister P.V. Narasimha Rao’s visit to Beijing resulted in the signing of the Border Peace and Tranquillity Agreement (BPTA). This agreement, structured into nine articles, marked the first official reference to the LAC and committed both nations to non-aggression and peaceful consultation.

·       Key provisions of the BPTA included mutual commitments to refrain from crossing the LAC, the withdrawal of troops if a violation was reported, and the maintenance of minimal troop deployment along the frontier. The agreement also introduced the principle of reducing forces based on “mutual and equal security.” Its overarching goal was to freeze the existing status quo, reduce military presence, and facilitate the expansion of cooperation in other spheres of the bilateral relationship.

Further Expansion Through the 1996 Agreement

·       In 1996, during the visit of Chinese President Jiang Zemin to India, both sides signed another significant agreement that expanded upon the BPTA by incorporating more concrete military confidence-building measures (CBMs). This agreement imposed specific restrictions on the deployment of heavy weaponry and large-scale military exercises near the LAC, especially those directed toward the other side. It also included mutually agreed limits on troop presence in sensitive sectors along the frontier.

·       Despite these efforts, the 1996 agreement acknowledged a critical limitation—the successful implementation of its provisions depended on a shared understanding of the LAC’s alignment. However, both India and China continued to hold fundamentally different interpretations of the LAC, and this lack of consensus limited the agreement''s effectiveness in preventing future tensions.

Attempts to Clarify the LAC and the Breakdown of Map Exchange

·       Between 2000 and 2002, the two countries attempted to clarify the boundary by exchanging maps of the central and western sectors. However, these efforts quickly collapsed as both sides presented maximalist claims, refusing to compromise on key contested areas. This led to the rejection of each other’s maps and brought the mapping initiative to an abrupt end.

·       Disagreements remained unresolved in critical zones such as Depsang, Pangong Tso, Demchok, and Chumar. By 2005, the map exchange process was officially abandoned, institutionalising ambiguity over the LAC. This lack of clarity has contributed to repeated confrontations in the same disputed regions, including the deadly Galwan Valley clash in 2020.

Structural Barriers to Defining the LAC

·       At the heart of the unresolved border issue lies a deeper structural problem—neither side is willing to cede ground in strategically vital areas. China''s extensive infrastructure development in Tibet, including roads and logistics networks, gives it a tactical edge over India, which faces harsher terrain in Ladakh and Arunachal Pradesh. This disparity in infrastructure and mobility complicates any negotiation over realignment or definition of the LAC.

·       The absence of a mutually recognised boundary leads both armies to patrol up to their own perceptions of the LAC. This practice significantly increases the risk of accidental encounters that can quickly escalate into physical clashes or broader military standoffs. The lack of clear demarcation serves as a structural trigger for persistent tensions.

Contemporary Implications and the Way Forward

·       While the 1993 and 1996 agreements succeeded in temporarily easing tensions and introduced mechanisms for confidence-building, they failed to address the fundamental issue of defining the LAC. As a result, the border remains volatile. Although both sides have developed protocols to avoid escalation, such as flag meetings and hotline communications, these measures often prove inadequate in preventing skirmishes.

·       The recurring standoffs underline the pressing need to either formally clarify the LAC through diplomatic means or to develop more robust, binding mechanisms to prevent confrontations from spiralling into full-scale conflict. The continued ambiguity around the LAC not only undermines peace-building efforts but also keeps India-China relations trapped in a cycle of tension, mistrust, and strategic competition.

Building Climate-Resilient Cities in India

Context

India’s cities are projected to host nearly a billion people by 2070. With this rapid urban expansion comes heightened exposure to climate-related hazards such as flooding, heatwaves, cyclones, and earthquakes. These growing threats underscore the urgent need for cities to embed resilience into their core planning and infrastructure development.

Current State of Urban Climate Vulnerabilities

Urban centres across India are already facing the compounded effects of climate change due to unplanned growth, weak infrastructure, and fragile ecosystems:

• Flooding: Unregulated construction, encroachment on natural drainage systems, and insufficient stormwater infrastructure have rendered two-thirds of city dwellers vulnerable to floods. Economic damages from urban flooding could exceed $30 billion by 2070.
• Extreme Heat: The dominance of concrete structures and limited green spaces make urban areas 3–5°C hotter than their surroundings. This intensifies health risks, increases mortality rates, and lowers productivity across sectors.
• Urban Transport: Around 25% of urban roads are flood-prone. Even moderate waterlogging can cripple nearly half of a city’s transport system, disrupting mobility and emergency services.
• Housing: Over 50% of India’s future urban housing stock is yet to be constructed. If these developments follow poor design and location choices, they risk locking cities into decades of climate vulnerability.
• Municipal Services: Weak and outdated systems for waste management, drainage, and energy supply not only exacerbate pollution but also leave cities more exposed to the impacts of climate shocks.

Why Building Climate-Resilient Cities Is Essential

Cities lie at the heart of India’s economic and social transformation. Making them resilient is critical for multiple reasons:

• Safeguarding Lives: As floods, heatwaves, and other disasters intensify, resilient infrastructure and planning can significantly reduce mortality and displacement.
• Protecting Economic Growth: Cities account for over 70% of GDP and employment. Ensuring their infrastructure can withstand climate impacts is vital for continued economic activity and investor confidence.
• Promoting Social Inclusion: Vulnerable groups — particularly the urban poor — are disproportionately affected during climate disasters. Resilient urban design helps mitigate this inequity.
• Reducing Long-Term Losses: Proactive investment in resilience pays off by minimising future damages, reducing recovery costs, and attracting sustainable global capital.

Key Challenges Hindering Urban Resilience

Despite the urgency, several barriers continue to limit the effectiveness of climate-resilient urban planning in India:

• Weak Urban Local Bodies (ULBs): Most local governments lack adequate staffing, technical expertise, and financial autonomy to plan and implement climate-resilient projects effectively.
• Fragmented Governance: Multiple agencies with overlapping jurisdictions result in uncoordinated responses and delays in executing adaptation strategies.
• Financial Limitations: Urban bodies face chronic revenue shortfalls, and access to international climate finance remains slow and bureaucratic.
• Poor Urban Planning: Construction on wetlands, riverbeds, and floodplains has not only increased disaster risk but also degraded natural buffers and urban ecosystems.
• Inequity and Informality: Slums and informal settlements, often located in high-risk zones, lack adequate infrastructure and are excluded from most climate adaptation efforts.

Major Initiatives Undertaken in India

India has launched several programmes and policies aimed at mainstreaming climate resilience into urban development:

• The National Action Plan on Climate Change (NAPCC) and State Action Plans on Climate Change (SAPCCs) provide policy frameworks to integrate adaptation into state and city-level governance.
• The Sustainable Habitat Mission focuses on promoting energy-efficient buildings, sustainable transport systems, and resilient waste management.
• The Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) incorporate resilience into the design of core urban infrastructure.
• Heat Action Plans, first implemented in Ahmedabad, have introduced measures like early warning systems, cooling shelters, and public awareness campaigns, which are now being replicated in other states.
• Pradhan Mantri Awas Yojana (PMAY-Urban) has the potential to deliver climate-resilient housing for millions if adaptation elements are meaningfully integrated.

Strategies to Build Climate-Resilient Cities

India’s pathway to resilient urbanisation lies in multi-dimensional strategies that cut across infrastructure, governance, and community participation:

• Urban Planning: Cities must adopt compact development patterns, avoid construction in ecologically sensitive areas, and enforce updated, disaster-resistant building codes.
• Flood Management: Investments should prioritise modern drainage systems, the restoration of natural wetlands and floodplains, and the use of predictive flood forecasting tools.
• Heat Resilience: Expanding urban tree cover, implementing cool roofs, building shaded corridors, and regulating outdoor work during peak heat hours are crucial interventions.
• Transport Infrastructure: Elevated roads and metro lines, redundancy in transport networks, and resilient design can ensure continued mobility during extreme weather events.
• Municipal Services: Waste, water, and sanitation systems must be upgraded using climate-proof and circular economy principles to enhance efficiency and reduce vulnerability.
• Finance and Partnerships: Access to funding through public-private partnerships, green bonds, and global climate funds must be scaled up. Citizen engagement is essential for planning and accountability.
• Capacity Building: Training urban local bodies, deploying advanced tools like GIS and AI for risk mapping, and strengthening institutional resilience at the city level are foundational to long-term adaptation.

Conclusion

India''s urban future hinges on its ability to adapt to a rapidly changing climate. Building climate-resilient cities is not solely a matter of responding to disasters—it is about securing long-term economic prosperity, ensuring social equity, and preserving ecological balance. The window for action is rapidly narrowing. Integrating resilience into city planning must become an urgent national priority, shaping a sustainable and secure urban trajectory for decades to come.

India’s Defence Theaterisation Plan: Complexities and Diverging Views

At the Ran Samvad 2025 defence dialogue, differing perspectives emerged over India''s ambitious theaterisation proposal, highlighting both the transformative potential and the contentious challenges of reshaping the country’s military command structure. The plan is regarded as one of the most significant military reforms in post-Independence India, yet its implementation continues to spark debate across strategic, operational, and institutional dimensions.

Understanding Theaterisation

·       Theaterisation refers to the reorganisation of India’s armed forces by integrating the operational resources of the Army, Navy, and Air Force under unified, geographically defined theatre commands. Rather than operating through the current 17 service-specific commands, the proposal seeks to establish joint commands for specific theatres, each led by a single commander who would exercise control over all three services in that region.

·       This unified command structure aims to enhance inter-service synergy, reduce duplication of effort, and ensure more agile and coordinated responses during military operations. The reform is being spearheaded by the Chief of Defence Staff (CDS), who heads the Department of Military Affairs (DMA) and is mandated to drive the transition toward joint or theatre commands.

Challenges and Concerns Surrounding Theaterisation

Despite the intended strategic benefits, several challenges and reservations have been raised by defence experts and stakeholders within the armed forces:

• The Indian Air Force (IAF) has voiced significant concerns, arguing that dividing its limited combat assets among multiple theatre commands may compromise its doctrinal emphasis on flexibility and centralised air power deployment. The IAF fears that rigid geographical allocation could impair its capacity for rapid and decisive operations across diverse fronts.
• Critics have warned against replicating foreign models—particularly the United States’ theatre command system—without adapting them to India''s unique geopolitical context and security challenges. India’s threat matrix, terrain, and political realities require a customised approach rather than a one-size-fits-all template.
• The dismantling of long-standing single-service command structures is also seen as potentially disruptive to current combat readiness. The transition phase could introduce delays, miscommunication, or operational confusion, especially in times of crisis or conflict.
• Questions have been raised about the domain expertise of theatre commanders, especially when individuals from one service are expected to command joint assets from other branches. For instance, whether an Army officer can fully understand and utilise Air Force assets—or vice versa—remains a point of contention, particularly concerning the complexity and precision of air operations.
• Financial implications add another layer of concern. Critics argue that the costs associated with restructuring, establishing new infrastructure, and re-training personnel may be substantial, with uncertain returns on investment. These worries are exacerbated by India’s relatively underdeveloped domestic military-industrial base, which limits self-reliance in defence manufacturing and technology.
• Despite these challenges, the government maintains that theaterisation is essential for transforming India’s armed forces into a modern, integrated force capable of responding to 21st-century threats. However, successful implementation will require careful navigation of institutional resistance, operational gaps, and inter-service disagreements.

India Reaffirms Commitment to WTO-Centric Fair Trade System

In a separate but equally significant international development, India reiterated its commitment to a fair, open, inclusive, and rules-based multilateral trading system anchored by the World Trade Organization (WTO). This reaffirmation was made during the Shanghai Cooperation Organisation (SCO) Trade Ministers’ Meeting, where India called for preserving the integrity and centrality of the WTO amid rising protectionism and geopolitical disruptions.

Overview of the WTO

• Headquartered in Geneva, Switzerland, the World Trade Organization was established in 1995 through the Marrakesh Agreement, succeeding the earlier General Agreement on Tariffs and Trade (GATT).
• With 166 member nations, the WTO plays a pivotal role in regulating international trade, ensuring trade flows as smoothly and predictably as possible.
• The foundational principles of the WTO include non-discrimination, promotion of free trade through negotiation, and ensuring fair competition among nations.

Major Issues Affecting the WTO’s Functioning

• A longstanding issue is Public Stockholding (PSH) for food security. Programs like India’s Minimum Support Price (MSP) regime are viewed by some members as trade-distorting, especially when governments procure food at fixed prices for distribution or buffer stocks. While India defends PSH as essential for food security, especially in developing economies, others argue it distorts global agricultural markets.
• The principle of Special and Differential Treatment (S&DT), which grants developing and least-developed countries (LDCs) preferential treatment in trade negotiations and obligations, is under pressure. Developed countries are pushing for its gradual removal, asserting that some nations have become globally competitive and no longer require such exemptions.
• The Dispute Settlement System, once a hallmark of WTO legitimacy, has been paralysed since 2019 due to the United States blocking the appointment and reappointment of judges to the WTO’s Appellate Body. This deadlock has significantly weakened the organisation’s capacity to enforce trade rules and resolve disputes between member states.
• Geopolitical tensions, such as U.S. tariff measures, the Russia-Ukraine conflict, and retaliatory sanctions, have further complicated global trade dynamics, weakening the role of the WTO as a neutral arbiter.
• Emerging concerns around data privacy, cross-border data flows, digital services taxation, and climate-related trade measures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) are increasingly influencing the WTO agenda, even though consensus remains elusive.
• India’s support for a WTO-centred trade system reflects its commitment to multilateralism and inclusive development. However, navigating the evolving global trade environment will require balancing domestic policy priorities—such as food security and digital sovereignty—with global expectations for liberalisation and rule-based governance.

Conclusion

India''s internal military restructuring and external trade diplomacy reflect its dual imperative: to modernise its national defence architecture while actively shaping a fair and equitable global order. The theaterisation debate underscores the complexity of balancing tradition with transformation in a sensitive security domain. Simultaneously, India’s WTO advocacy signals a desire to uphold multilateralism amid rising economic nationalism. Both trajectories—military and trade—will play a critical role in shaping India''s strategic future.

Indian Generics as a Global Public Good: Pharma Diplomacy and Trade Strategy

Context

India’s pharmaceutical export sector, particularly its generics industry, is under mounting pressure due to rising trade tensions with the United States. The imposition of tariffs and increasingly stringent intellectual property (IP) demands from the U.S.—India''s largest pharma export market—poses a threat to the long-term sustainability of Indian generic medicines. However, despite these challenges, Indian generics continue to form the cornerstone of affordable global healthcare, saving billions of dollars annually and playing a vital role in public health systems worldwide.

Current Status of the Indian Pharmaceutical Sector

·       India has firmly established itself as the largest global supplier of generic medicines, exporting to over 200 countries and earning the title “Pharmacy of the World.” The United States alone accounts for more than 31% of India’s pharmaceutical exports and sources approximately 47% of its generics from India. In 2022, Indian generics saved the U.S. healthcare system an estimated USD 219 billion.

·       The global generic pharmaceuticals market is expected to reach USD 614 billion by 2030, with India remaining a major contributor. Nonetheless, the industry faces serious headwinds, including protectionist U.S. trade policies, overreliance on China for Active Pharmaceutical Ingredients (APIs), and intensifying competition from emerging generic producers such as Brazil, China, and Eastern Europe.

Strategic Importance of Indian Generics

Indian generics have far-reaching implications across economic, public health, and diplomatic spheres:

• Affordability and Access: Indian generics are typically priced 20–25% lower than branded alternatives, making critical treatments for diseases like cancer, diabetes, and HIV accessible to millions worldwide.
• Public Health Contribution: In countries such as the U.S., generics constitute over 90% of all prescriptions. They are equally indispensable in low- and middle-income countries, where healthcare affordability is a persistent challenge.
• Economic Impact: Pharmaceutical exports from India contribute approximately USD 25 billion annually to the economy and support millions of jobs across the supply chain.
• Strategic Diplomacy: India''s role in pharma extends to its soft power initiatives, exemplified by the “Vaccine Maitri” program during the COVID-19 pandemic, which distributed vaccines and medical supplies globally.
• Innovation Leadership: The country is increasingly investing in biosimilars, low-cost vaccine development, and affordable research-based pharmaceutical solutions, signaling its transition from a volume-based to a value-based industry.

Need for a Strategic Realignment

India must evolve its pharma trade approach from reactive concessions to proactive, long-term strategies. This includes:

• Challenging TRIPS-plus provisions that seek to extend monopolies and delay the entry of affordable generics.
• Reducing overdependence on the U.S. market by expanding outreach to Africa, Latin America, ASEAN nations, and Central Asia.
• Leveraging trade negotiations to secure technology transfers and promote joint R&D, particularly in exchange for pricing flexibility.
• Framing Indian generics as a global public good aligned with Sustainable Development Goal 3 (SDG-3): "Ensure healthy lives and promote well-being for all at all ages."

Key Challenges to Indian Pharma Diplomacy

India’s pharmaceutical sector is contending with a range of domestic and international obstacles:

• Trade Barriers: The U.S. has imposed a 26% tariff along with an additional 25% penalty on certain imports. Bilateral trade talks often push for zero-tariff regimes without ensuring reciprocal benefits.
• IPR and Regulatory Pressures: There is growing international advocacy for patent protections beyond what is mandated by TRIPS (Trade-Related Aspects of Intellectual Property Rights). Measures like data exclusivity and patent term extensions threaten to delay the availability of generics, escalating drug prices globally.
• Domestic Vulnerabilities: Continued dependency on China for APIs exposes India to supply chain risks. Fragmented research ecosystems and regulatory inefficiencies hamper innovation and timely drug approvals.
• Global Competition: Alternative manufacturing and R&D hubs are emerging, particularly in China, Brazil, and Eastern Europe, reducing India’s competitive edge.
• Public Health Implications: Strengthening IP regimes globally, as demanded by some Western nations, could limit access to affordable medicines and exacerbate global health inequities.

Current Policy Initiatives and International Engagements

India has already taken several steps to reinforce its pharmaceutical sector and enhance its diplomatic footprint:

• Continued use of TRIPS flexibilities, including compulsory licensing, to protect public health and ensure access to essential medicines.
• The India–US TRUST Initiative, aimed at deepening cooperation in biotechnology, pharmaceuticals, and health technologies.
• The Production Linked Incentive (PLI) Scheme under the Make in India initiative, which seeks to reduce dependence on imported APIs and encourage local manufacturing.
• Enhanced South–South cooperation, with joint ventures and capacity-building in Africa, Latin America, and ASEAN countries.
• Advancement of Health-Tech Diplomacy by sharing vaccine platforms and generic drug technologies with developing nations.

Strategic Roadmap for the Future

To maintain and expand its global leadership in generics, India must adopt a comprehensive and forward-looking strategy:

• Maximize Negotiation Leverage: Push for a systemic review of TRIPS to align it more closely with global health needs. Actively oppose TRIPS-plus measures and advocate for generics as essential to global health security, especially in a post-COVID context.
• Diversify Export Destinations: Reduce exposure to U.S. market fluctuations by expanding exports to emerging markets across Africa, ASEAN, Latin America, and Central Asia.
• Foster Global Joint Ventures: Collaborate with Global South nations and with firms in the U.S. and EU on co-manufacturing, research, and technology development.
• Build Domestic Capabilities: Invest in self-sufficiency for APIs, strengthen R&D infrastructure, and implement regulatory reforms for faster and safer drug approvals.
• Deploy Public Health Diplomacy: Frame pharmaceutical exports as instruments of soft power, following the model of Vaccine Maitri. Engage in coalition-building at international forums such as the WTO, WHO, and BRICS to counterbalance the influence of Big Pharma.
• Ensure Technology Transfer in Trade Deals: Any pricing concessions or trade flexibility must be reciprocated through commitments to share technology and invest in local pharma ecosystems.

Conclusion

Indian generics are not merely commercial products—they are lifelines for millions across the globe, enabling access to essential medicines at a fraction of the cost. As the world’s largest supplier of affordable pharmaceuticals, India must position its generics industry as a global public good. This requires resisting inequitable IP regimes, diversifying global partnerships, and using pharma diplomacy to shape a more inclusive and equitable global health order. Cementing its role as the “Pharmacy of the Global South,” India can protect both its economic interests and its moral responsibility to global public health.

Papua New Guinea: Cultural Diplomacy and Geographic Overview

·       In a notable gesture of cultural and diplomatic engagement, the Indian Navy Band recently participated in the grand Military Tattoo held in Port Moresby, the capital of Papua New Guinea, marking the country’s 50th Independence Day celebrations.

·       Papua New Guinea is an island nation situated in the Oceania region, lying in the southwestern part of the Pacific Ocean. It shares its western border with Indonesia, lies to the north of Australia, and is located northwest of the Solomon Islands. The country is surrounded by several important water bodies, including the Pacific Ocean, the Bismarck Sea, the Solomon Sea, the Coral Sea, the Torres Strait, and the Gulf of Papua.

·       Port Moresby, the nation''s capital, serves as the administrative and economic hub. Geographically, Papua New Guinea is characterized by its rugged terrain, with much of its landscape dominated by mountainous regions cloaked in dense tropical rainforests. The country is seismically active, hosting numerous volcanoes and frequently experiencing earthquakes and tsunamis. Mount Wilhelm stands as its highest peak, reaching an elevation of 14,793 feet (4,509 meters). Among its significant rivers are the Sepik and the Fly, which flow through large swathes of the island. One of the most active volcanic sites is the Rabaul Caldera, known for its history of eruptions.

·       Papua New Guinea’s natural environment supports remarkable biodiversity, especially within its rainforest ecosystems. These habitats are home to unique and often endemic species such as birds of paradise, tree kangaroos, and the Queen Alexandra’s birdwing butterfly, one of the largest butterflies in the world.

·       The country operates as a constitutional monarchy within the Commonwealth. The British monarch is the ceremonial head of state and is represented by a governor-general in Papua New Guinea. The Prime Minister, however, holds executive powers and leads the government.

Missile Technology Control Regime (MTCR): Strategic Export Controls and U.S. Shifts

·       According to recent reports, the U.S. administration under President Donald Trump is expected to unilaterally reinterpret its commitments under the Missile Technology Control Regime (MTCR) to allow the export of sophisticated unmanned aerial vehicles (UAVs), including “Reaper”-style drones, to foreign buyers. This move represents a significant shift in U.S. export policy and may impact global arms control efforts.

·       The MTCR is an intergovernmental association formed to curtail the spread of missile technology that could be used to deliver nuclear, chemical, or biological weapons. The regime was established in 1987 by founding members Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Initially focused on nuclear-capable delivery systems, the MTCR expanded its scope in 1993 to include missiles that can deliver chemical and biological weapons.

·       As of now, the MTCR has 35 member states, with India joining as the 35th partner on June 27, 2016. Member nations agree to impose export restrictions on missile systems and UAVs, along with the technologies, software, and components essential for their manufacture.

·       The MTCR categorizes restricted items into two groups. Category I includes missiles capable of delivering payloads of at least 500 kilograms to distances greater than 300 kilometers, along with their critical subsystems such as engines and re-entry vehicles. These items are subject to strict controls. Category II includes less sensitive components like propulsion units and missile launchers, which, while still restricted, are governed with more discretion.

·       Despite being a widely observed framework, the MTCR is not a legally binding treaty and lacks formal enforcement mechanisms. In case of violations or disagreements, member states are expected to resolve issues through bilateral consultations or raise them during the annual plenary sessions. While the MTCR itself imposes no penalties, the U.S. has enacted domestic legislation authorizing sanctions against countries that violate the regime’s export guidelines.

·       Joining the MTCR provides countries with international credibility in the nonproliferation arena. Membership also reinforces the responsible use of long-range ballistic missile capabilities and opens doors to defense collaboration, technology transfer, and global acceptance of indigenous missile programs.

Operation Guddar: Counter-Terror Mission in South Kashmir

·       An armed encounter erupted in the Guddar forest area of Kulgam district, Jammu and Kashmir, after terrorists opened fire on security personnel during an ongoing search operation. This incident unfolded under the ambit of Operation Guddar, a coordinated anti-terror initiative launched by the Jammu & Kashmir Police, the Indian Army, and the Central Reserve Police Force (CRPF).

·       Named after the dense Guddar forest, where militants were believed to be hiding, Operation Guddar was specifically designed to target active terrorist elements operating in South Kashmir. The operation aims to dismantle militant infrastructure hidden in forested areas and nearby villages, which have long served as strategic hideouts for insurgents. A key objective of the operation is to deepen coordination among the security forces through intelligence-driven tactics that emphasize both precision and minimal collateral damage.

·       The operation is a joint effort involving the Indian Army’s Chinar Corps, CRPF units, and the Special Operations Group (SOG) of the Jammu & Kashmir Police. The action was triggered by concrete intelligence regarding terrorist presence in the forested terrain. Given the high-risk nature of the operation, conducted in difficult topography, significant care was taken to avoid civilian casualties while decisively targeting terrorist threats.

Red Sea: Disrupted Connectivity and Strategic Tensions

·       Recent damage to undersea internet cables in the Red Sea has disrupted internet connectivity across Asia and the Middle East, affecting key international systems like SMW4 and IMEWE and causing service slowdowns in India and surrounding countries.

·       The Red Sea is a narrow inland waterway separating the northeastern African and Arabian peninsulas. It stretches over 1,930 kilometers from Suez in Egypt to the Bab el-Mandeb Strait in Yemen, where it connects to the Arabian Sea. Nations with coastlines along the Red Sea include Egypt, Sudan, Eritrea, Djibouti, Saudi Arabia, and Yemen, while Jordan and Israel lie along its northeastern extension, the Gulf of Aqaba.

·       Geologically, the Red Sea is part of a rift valley and remains active with ongoing volcanic and seismic activity. Its waters are among the world’s warmest and saltiest, supporting diverse coral reef ecosystems. Economically, the Red Sea is a crucial maritime corridor linking Europe, Asia, and Africa through the Suez Canal, making it one of the most trafficked sea routes globally.

·       Undersea cables, which were affected in this incident, are critical infrastructure. These fiber-optic cables, laid across ocean beds, carry approximately 95% of the world’s internet traffic. Composed of glass fibers protected by multiple layers, they transmit data through pulses of light, offering high-speed and low-latency communication. However, they are vulnerable to various threats such as anchor drags, natural disasters, and sabotage, highlighting the fragility of global connectivity.

Yedshi Ramling Ghat Wildlife Sanctuary: A New Home for Tigers

·       In a rare event highlighting wildlife movement in Maharashtra, a young male tiger recently traversed approximately 450 kilometers from Vidarbha to settle in the Yedshi Ramling Ghat Wildlife Sanctuary. This event is particularly noteworthy as it marks the first time in decades that a big cat has taken residence in this sanctuary.

·       Located in the Osmanabad District, Yedshi Ramling Ghat Wildlife Sanctuary was officially established on May 23, 1997, and spans an area of around 22.38 square kilometers. It lies within the Balaghat mountain range, which forms part of the larger Sahyadri hill system.

·       A key attraction within the sanctuary is the ancient Ramling Temple, dedicated to Lord Shiva, drawing both devotees and nature lovers. The surrounding area features a waterfall and a cave steeped in local folklore, said to be associated with characters from the Ramayana, including Ravana and Jatayu.

·       The sanctuary''s vegetation is defined by the South Deccan Plateau’s dry deciduous forests and thorn scrublands. Among the prominent tree species found here are teak (Tectona grandis), sandalwood (Santalum album), neem (Azadirachta indica), and various Acacia species. The shrub layer includes species such as Lantana camara and Carissa carandas.

·       Yedshi Ramling Ghat Wildlife Sanctuary also supports a rich variety of fauna. Commonly observed species include leopards, sloth bears, blackbucks, jackals, wolves, foxes, monitor lizards, porcupines, barking deer, and hares, contributing to the region’s ecological diversity.

Pavagadh Kalika Mata Temple: Sacred Heritage and Tragedy

·       A tragic incident occurred at the Kalika Mata temple in Gujarat’s Panchmahal district, where six people lost their lives after the cable wire of a ropeway—primarily used for transporting materials—snapped. This resulted in the cable car crashing to the ground in the Pavagadh region, drawing attention to safety concerns around temple infrastructure.

·       Located at the summit of Pavagadh Hill, the Kalika Mata Temple is a prominent Hindu pilgrimage site in Gujarat’s Panchmahal district. The temple is dedicated to Maa Kali, a fierce form of Goddess Durga or Shakti, and is one of the 51 revered Shakti Peethas scattered across India. It sits at an elevation of 762 meters above sea level, perched dramatically on a cliff surrounded by thick forests, enhancing both its spiritual aura and natural allure.

·       Believed to be over a thousand years old, the temple''s origins are traced back to the 10th or 11th century. The idol of Mahakali was established in the 12th century, during a period marked by architectural and spiritual growth. The Solanki Rajput dynasty, which controlled large portions of Gujarat, offered significant patronage to the temple and supported its renovation over the years.

·       Under Sultan Mahmud Begada’s rule, Pavagadh and nearby Champaner rose to prominence as influential centers of religion and culture. Today, the Kalika Mata Temple forms an integral part of the Champaner-Pavagadh Archaeological Park, a UNESCO World Heritage Site since 2004, signifying its historical and architectural value.

·       The temple, constructed from stone, showcases typical features of medieval Hindu architecture, including intricate carvings, stone domes, and a sanctum (garbhagriha). The idol of Mahakali inside the sanctum is carved from black stone. Interestingly, only the upper portion of the idol is visible to devotees, while the lower half remains underground, symbolizing divine mysticism and spiritual depth. In recent years, the temple has undergone refurbishments, including improved ropeway access and upgraded amenities, all while preserving its sacred atmosphere.

Himalayan Brown Bear: A Rare Glimpse in Uttarakhand

·       Excitement has been sparked in Uttarakhand’s Gangotri National Park following a rare sighting of a Himalayan brown bear, reportedly accompanied by its family, in the remote Nelong and Jadung Valleys.

·       The Himalayan brown bear, scientifically named Ursus arctos isabellinus, is the largest mammal inhabiting the high-altitude zones of the Himalayas. Often referred to as the “Himalayan Red Bear” or “Isabelline Bear,” it is known locally as Denmo in Ladakhi. This bear is among the oldest surviving brown bear lineages. Some folklore even attributes the origin of the Yeti or “Abominable Snowman” legends to sightings of this bear walking upright.

·       This species is distributed across the northwestern and central Himalayas, including parts of Pakistan, India, Nepal, Bhutan, and the Tibetan Autonomous Region of China. Typically, it resides above the timberline, inhabiting alpine and subalpine zones between 3,000 and 5,500 meters in elevation. In India, the bear exists in fragmented populations found in the high-altitude regions of Jammu and Kashmir, Himachal Pradesh, and Uttarakhand.

·       Males are noticeably larger than females, with average lengths of around 1.9 meters and weights reaching up to 135 kilograms, while females generally measure 1.6 meters and weigh about 70 kilograms. Their fur is dense and often appears sandy or reddish-brown. As omnivores, their diet includes vegetation such as grasses, roots, and bulbs, as well as insects and small mammals like marmots, pikas, and voles. Solitary in nature, these bears interact only during mating seasons or in conflicts over mates—except in the case of mothers tending to their cubs. During winter, they hibernate in dens, and in the wild, they typically live between 20 and 30 years.

·       Conservation-wise, the Himalayan brown bear is in a precarious position. It is listed as Critically Endangered on the IUCN Red List, protected under Schedule I of the Wildlife Protection Act of 1972, and included in Appendix I of CITES, underscoring its need for urgent conservation efforts.

Notifiable Diseases: Monitoring Cancer in India

·       A prominent oncologist based in New York has welcomed the recent recommendation made by an Indian parliamentary committee to declare cancer as a notifiable disease, a move that could significantly improve national disease surveillance and response.

·       A notifiable disease is one which, by law, must be reported to public health authorities. Such reporting ensures the timely monitoring of individual cases and enables early detection of potential outbreaks. Making a disease notifiable typically implies that consistent and up-to-date information is required for effective prevention and control.

·       Several criteria can influence whether a disease is classified as notifiable. These include the disease’s alignment with national or international public health concerns, its incidence rate at national or subnational levels, its potential for severe outcomes or rapid mortality, ease of transmission, risk of international spread, socioeconomic impact, ability to be prevented, and any changing patterns in prevalence.

·       Diseases considered major public health threats are typically included on a notifiable list, which varies not only between countries but also within them, depending on regional urban-rural dynamics and specific state-level needs.

·       In India, both medical professionals and diagnostic laboratories are legally obliged to report cases of notifiable diseases to local health departments. The state governments determine which diseases are to be reported to the medical officer in each area. This list, maintained by governmental and regional health bodies, is flexible and may be revised as necessary to include emerging health concerns or remove less relevant conditions.

·       Some of the diseases currently on India’s notifiable list include cholera, tuberculosis, HIV/AIDS, dengue, hepatitis, leprosy, meningitis, plague, and measles. The World Health Organization’s International Health Regulations (1969) also require countries to report specific diseases for global monitoring and international advisories.

Ratle Hydroelectric Project: Development Amid Natural Hazards

·       A recent landslide at the Ratle Hydroelectric Project in the Kishtwar district of Jammu and Kashmir led to injuries for five individuals, raising concerns about the vulnerability of infrastructure in geologically sensitive zones.

·       The Ratle Hydroelectric Project is an 850-megawatt run-of-the-river scheme currently under development on the Chenab River in Kishtwar. The project is being executed by the Ratle Hydroelectric Power Corporation (RHPCL), a joint venture formed between the Jammu & Kashmir State Power Development Corporation (JKSPDC) and India’s public-sector power company, the National Hydroelectric Power Corporation (NHPC). In terms of equity distribution, NHPC holds a 51% stake, while JKSPDC retains 49%.

·       The project features a 133-meter-tall and 194.8-meter-long concrete gravity dam, along with a diversion dam and an underground powerhouse on the river’s right bank. The underground powerhouse is a substantial structure, measuring 168 meters in length, 24.5 meters in width, and 49 meters in height. It will house four generating units of 205 MW each using Francis turbines, in addition to a 30 MW auxiliary turbine.

·       The total electricity generation expected from the Ratle project is estimated at 3,137 gigawatt-hours (GWh) annually. However, the project has also been a point of diplomatic tension. Pakistan has repeatedly claimed that the Ratle project violates the terms of the Indus Waters Treaty of 1960, which governs water-sharing between India and Pakistan. India maintains that the project complies with the treaty provisions.

Nilgiri Tea: A Heritage Brew Struggling to Survive

·       Tea growers in the Nilgiris region of Tamil Nadu are grappling with a long-standing crisis, driven by plummeting green tea leaf (GTL) prices, overproduction, and dysfunctional auction systems. These issues now threaten the viability of small-scale producers in one of India’s most iconic tea regions.

·       Nilgiri tea, derived from Camellia sinensis var. sinensis, is renowned for its aromatic, brisk, and full-bodied flavour. It is cultivated predominantly in the Nilgiris district, with smaller plantations in adjoining parts of Kerala and Karnataka. This tea, known for its bright liquor and floral notes, is often blended into masala chai, iced tea, and global tea products. It received

Geographical Indication (GI) status in 2008.

·       The region’s unique geography contributes to its distinctive tea quality. Located at elevations between 1,000 to 2,500 meters in the Western Ghats, the Nilgiris receive both Southwest and Northeast monsoons, along with alternating spells of mist and sunshine. The soil—rich, well-drained lateritic loam—further enhances crop quality. The cultivation cycle involves frequent plucking, around 32 times a year, with the first winter harvest or “frost tea” being particularly prized.

·       Despite its potential, the industry faces serious challenges. Green tea leaf prices often fall below the cost of production, and too many processing units compete for limited crops, leading to quality degradation. Historical over-reliance on Russian markets has left the sector vulnerable, and auction mechanisms are plagued by manipulation and weak price discovery. Adulteration, rising labour and input costs, and lack of standardization also undermine profitability for small growers, threatening the survival of the Nilgiri tea legacy.

Yoga and Sudarshan Kriya for Prisoners: Reforming Inmates through Inner Peace

·       In a significant move towards prison reform, the Chhattisgarh government has implemented a wellness initiative that introduces Yoga and Sudarshan Kriya practices in all district jails. This reform seeks to help inmates experience psychological healing, instil self-discipline, and promote a positive mindset during incarceration.

·       Yoga, an ancient Indian practice, combines physical postures (asanas), breathing techniques (pranayama), and meditation to bring about holistic health and spiritual balance. Sudarshan Kriya, developed by spiritual leader Sri Sri Ravi Shankar and propagated by the Art of Living Foundation, is a specific form of rhythmic breathing intended to harmonize the mind, body, and emotions. This initiative is implemented under the foundation’s “Prison Course” program, which aims to bring emotional stability and mental clarity to inmates.

·       The program is not merely symbolic; it aims to transform prisons from punitive spaces into reformative institutions. Many inmates, having been exposed to violence and trauma, benefit from practices that encourage peace and self-reflection. The approach helps reinforce traits like self-control, optimism, and social reintegration. Moreover, it reduces the administrative burden on prison staff by lowering incidents of indiscipline and aggression. Beyond individual transformation, the program also sends a broader message of peace and rehabilitation, particularly relevant in regions affected by conflict and unrest.

State Emblem of India: A Symbol of Sovereignty and Justice

·       The State Emblem of India came into national focus after nearly 50 individuals were detained in Srinagar following the vandalism and removal of a plaque bearing the emblem inside the Hazratbal shrine.

·       India’s State Emblem is an official adaptation of the Lion Capital of Ashoka, originally erected at Sarnath by Emperor Ashoka in the 3rd century BCE. The emblem was formally adopted on 26 January 1950, coinciding with India’s transition into a Republic. Symbolizing the authority of the state, it stands for the foundational values of truth, justice, and sovereignty.

·       The Lion Capital, discovered in 1905 and preserved at the Sarnath Museum in Uttar Pradesh, was initially constructed to commemorate Buddha’s first sermon and propagate the message of Dhamma (righteousness). The emblem features four Asiatic lions standing back-to-back, representing power, courage, pride, and confidence. Below them is a frieze (abacus) adorned with high-relief carvings of an elephant, bull, lion, and horse, all separated by Dharma Chakras (wheels of law). The original structure includes a bell-shaped lotus base, which was excluded from the official state emblem.

·       India’s adopted emblem showcases three visible lions, with the Dharma Chakra prominently placed in the center. A bull is positioned to the right, and a galloping horse to the left, with outlines of wheels at each end of the abacus. The national motto, “Satyameva Jayate” (Truth Alone Triumphs), is inscribed in Devanagari script below the emblem.

CoWIN Portal: Technical Glitch Halts Access to Vaccination Records

·       Since early August 2025, the CoWIN portal—India’s primary digital platform for managing COVID-19 vaccination—has remained inaccessible, leaving users unable to download vaccination certificates or verify immunization records.

·       Launched in January 2021 by the Union Ministry of Health and Family Welfare, CoWIN, or the COVID Vaccine Intelligence Network, was introduced to streamline the national vaccination effort. It functions as an integrated platform for scheduling appointments, tracking vaccination progress, managing vaccine logistics, and issuing digital certificates. It plays a critical role from the highest administrative level down to individual vaccinators.

·       The portal comprises five key modules: orchestration for overall program management, cold-chain logistics to monitor vaccine storage and distribution, citizen registration for self or group entries, session management for vaccinators, and a feedback/reporting module for certificates and adverse events. CoWIN is accessible through its website, the Aarogya Setu app, UMANG, and DigiLocker.

·       It supports multiple authentication methods, including OTP-based, biometric, and demographic verification. The system allows real-time tracking of vaccine coverage, wastage, and beneficiary data at national, state, district, and sub-district levels.

·       CoWIN played a vital role in the administration of over 2 billion vaccine doses, offering verifiable proof of immunization that served not only public health but also travel and employment needs. Its success led to international recognition and digital export as a model for other countries.

Mpox (Monkeypox): End of Global Emergency, Not the End of Risk

·       The World Health Organization (WHO) recently declared that Mpox—formerly known as monkeypox—is no longer a Public Health Emergency of International Concern (PHEIC), following a steady decline in global case numbers and fatalities.

·       Mpox is a viral zoonotic disease caused by the monkeypox virus (MPXV), which belongs to the Orthopoxvirus genus of the Poxviridae family. This group also includes the viruses responsible for smallpox, cowpox, and vaccinia. First identified in laboratory monkeys in Denmark in 1958, the first human case was recorded in 1970 in the Democratic Republic of Congo. Though the precise natural reservoir is unknown, it is believed that small mammals such as squirrels, rodents, and monkeys are likely hosts.

·       Transmission of the disease typically occurs from animals to humans through bites, scratches, hunting, or consumption of infected meat. It is endemic in Central and West Africa, with periodic outbreaks reported globally. Human-to-human transmission primarily occurs via close skin contact, respiratory droplets, or sexual contact, and also through shared items such as bedding or clothing. Pregnant women may transmit the virus to their unborn child.

·       After an incubation period of 5 to 21 days, symptoms begin with fever, headaches, muscle and back pain, fatigue, and swollen lymph nodes. A distinctive rash then develops, often beginning on the face or genital area and spreading to other parts of the body, including the palms and soles. Lesions evolve through stages from flat spots to blisters and eventually scabs. Vulnerable groups such as children, pregnant women, and immunocompromised individuals, especially those with HIV, are at greater risk of severe illness.

·       There is no specific antiviral treatment for mpox; supportive care remains the cornerstone of management. This includes adequate hydration, nutritional support, pain relief, skin care, and infection control to prevent complications.

Sree Narayana Guru: Saint, Philosopher, and Social Reformer

·       The birth anniversary of Sree Narayana Guru (1856–1928) was recently celebrated, paying homage to his profound impact as a spiritual leader and social reformer, particularly in Kerala.

·       Sree Narayana Guru championed the radical idea of “One Caste, One Religion, One God for Mankind”, challenging the caste system and advocating for human equality. He founded the Sree Narayana Dharma Paripalana Yogam (SNDP), an organization aimed at the upliftment and education of the Ezhava community, historically marginalized under the rigid caste hierarchy.

·       One of his early contributions was the Aruvipuram movement, where he consecrated a temple open to all castes—one of the earliest assertions of equal rights to temple access. He also supported the Vaikom Satyagraha (1924–25) in Travancore, which sought temple entry rights for lower-caste Hindus.

·       Sree Narayana Guru founded ashrams grounded in the principle “Om Sahodaryam Sarvatra” (all human beings are equal in the eyes of God). His teachings continue to inspire values of equality, non-violence, compassion, integrity, and courage, standing as a beacon for social reform in modern India.