Category: Geography
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About Chattergala Pass:
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Category: Miscellaneous
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About Jeevan Raksha Padak Awards:
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Category: Science and Technology
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About Bacillus Subtilis:
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Category: Environment and Ecology
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About Pygmy Hog:
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Category: International Organisations
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About Indian Ocean Naval Symposium (IONS):
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GS-II: India and its relations with other countries; international institutions, global groupings and agreements involving India and/or affecting India’s interests.
Context (Introduction)
India has witnessed a sharp depreciation of the rupee since April 2025 (~6%), despite strong macroeconomic fundamentals
This disconnect suggests that the rupee’s fall is not primarily economic, but geopolitical and diplomatic in origin.
Core Idea
The recent rupee depreciation is driven less by trade fundamentals and more by geopolitically induced capital outflows, especially due to U.S. tariff actions and strategic uncertainty. Hence, diplomacy not devaluation or monetary intervention—is the primary solution. The exchange rate problem has shifted from economics to geopolitics.
Key Drivers of Rupee Weakness
Why Devaluation Is Not the Remedy
Export Gains Are Limited
Inflation Risks Are High
REER, Not Nominal Rate, Matters
Why This Matters
This marks a shift from globalisation-driven economics to geopolitics-driven markets.
Way Forward
Conclusion
The rupee’s recent fall is not a verdict on India’s economic fundamentals, but a reflection of geopolitical stress transmitted through capital markets. In an era where tariffs and finance are tools of strategic contestation, currency stability requires diplomatic solutions, not devaluation.
When geopolitics drives markets, diplomacy becomes macroeconomic policy.
Mains Question
In an era where trade policy, sanctions, and capital flows are increasingly shaped by geopolitical contestation, exchange-rate movements can no longer be analysed purely through macroeconomic fundamentals. Critically examine. (250 words)
GS-II: “India and its relations with other countries; effect of policies and politics of developed and developing countries on India’s interests.”
GS-III: “Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.”
Context (Introduction)
India–EU relations have entered a phase of strategic convergence amid a turbulent global order marked by U.S. unpredictability, China’s assertiveness, supply-chain shocks, and fragmentation of multilateralism.
The January 2026 visit of the EU’s top leadership to Delhi signalled political momentum, but the real test lies in translating breakthroughs into delivery—especially in trade, technology, defence cooperation, and economic resilience.
Core Idea
India–EU relations have matured politically, but now face a delivery deficit. While strategic intent is aligned, outcomes depend on institutional capacity, economic reforms, regulatory coordination, and sustained bureaucratic follow-through, not summit diplomacy alone.
India must move from episodic engagement to deep, operational partnerships, while the EU must treat India as a strategic equal, not merely a market or values partner.
Key Areas of Convergence
Structural and Institutional Challenges
Why This Matters for India
Way Forward
Conclusion
India–EU relations have reached a strategic inflection point. The challenge is no longer vision, but execution.
If Delhi and Brussels succeed in converting political alignment into economic and technological delivery, the partnership can become a pillar of a new multipolar order. Failure, however, would relegate it to yet another high-potential but under-performing strategic relationship.
In a fractured world, partnerships that deliver rather than merely declare will shape the future order.
Mains Question