1) US Farm Support & Its Impact on India-US Trade Negotiations

GS 2: International Relations: U.S. – India trade relations

Why is it in the news?

• The US had only 1.82 million family farms in 2023, compared to India’s 93.09 million agricultural households, as per the National Statistical Office’s 2019 report. Despite their smaller numbers, American farmers receive significant government support.
• The median household income for US farm families was $97,984, higher than the $80,610 for all American households. This support is crucial in ongoing trade negotiations where the US wants agriculture included in market access and tariff reduction talks.
• US Commerce Secretary has emphasized that India’s farm sector must “open up” for American produce.

Forms of Assistance

• Unlike India, the US does not subsidize fertilizers, electricity, or water to lower farming input costs. Nor does the government intervene heavily in procurement and stockpiling. Instead, US farmers receive direct financial assistance through programs such as Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC).
• These schemes protect farmers against price drops and revenue shortfalls for 22 crops, including wheat, corn, barley, rice, lentils, peas, cotton, and soybeans.
• PLC payments compensate farmers when market prices fall below the “effective reference price” (ERP), similar to India’s minimum support price (MSP). For instance, the ERP for wheat is $5.56 per bushel, equivalent to Rs 1,780 per quintal, lower than India’s MSP of Rs 2,425.
• However, unlike India, where the government buys at MSP, US farmers receive direct compensation for the price difference. Similarly, ARC payments are triggered when actual revenue falls below a guaranteed benchmark based on historical market prices and yields.
• The Dairy Margin Coverage (DMC) program provides financial assistance to dairy farmers when the gap between milk prices and feed costs falls below a set threshold. This ensures stable income by cushioning against price declines and cost surges.

Magnitude of Financial Support

• Government payments to US farmers have varied from $9.3 billion to $45.6 billion annually. In 2020, federal payments reached $45.6 billion, nearly 38% of net farm income, due to pandemic-related aid. For 2025, direct payments are expected to be $42.4 billion, including supplemental disaster assistance under the American Relief Act of 2025.
• Between 2019 and 2023, total US farm financial assistance stood at $161 billion, covering 27 programs managed by the US Department of Agriculture. This included $53.6 billion in crop insurance, $30.9 billion in COVID-19 relief, $22.6 billion for trade disruptions, $16.8 billion for PLC/ARC/DMC, and $16.2 billion for environmental conservation.
• The distribution of this aid has been highly skewed. Of the $161 billion, 63% ($20.3 billion) went to just 74,655 producers, while the remaining $11.9 billion was split among 968,778 producers.
• The average federal payment per farmer was $30,782 (Rs 26.8 lakh), but for the top 10%, it was $271,408, while the top 100 and top 10 producers received $5.93 million and $17.79 million, respectively.

Lessons for India & Trade Implications

• India’s direct income support scheme, Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), has a 2024-25 outlay of Rs 63,500 crore. Additional farm subsidies include Rs 1.71 lakh crore for fertilizers, Rs 22,600 crore for crop loans, and Rs 15,864 crore for insurance.
• Factoring in MSP procurement and state-level subsidies, total Indian farm support could be Rs 5 lakh crore ($57.5 billion). While this exceeds the $32.2 billion the US provides annually, India’s aid is spread across a far larger number of farmers—PM-Kisan alone benefits over 111 million farmers, each receiving just Rs 6,000 ($69) per year.
• Opening India’s agricultural market to US produce would create an uneven playing field, as American farmers receive far greater financial assistance per capita.
• The World Trade Organization (WTO) recognizes this disparity and allows developing countries special treatment in tariff policies to protect domestic producers. Whether this principle of “non-reciprocity” will be upheld in the current India-US trade negotiations remains uncertain.

2) The Economics of Donald Trump

GS 2: International Relations: Economic policies of Trump

Context

• It is widely debated whether anyone, including policy experts, fully understands US President Donald Trump’s economic objectives. His policy choices often seem contrary to US interests, yet he remains steadfast in implementing them.
• This article examines six key aspects of his economic policies and their potential consequences for the US economy.

Threatening and Imposing Import Tariffs

• Trump has consistently threatened import tariffs, particularly targeting the US’s closest trading partners. While aimed at protecting domestic industries, tariffs tend to raise consumer prices, fuelling inflation and reducing affordability—an issue exacerbated post-pandemic.
• Higher import costs also burden US firms, disrupting global supply chains. Additionally, retaliatory tariffs from Canada, the European Union, and China weaken demand for US goods, ultimately harming American producers.

Expansionist Rhetoric and Its Consequences

• Trump has made controversial statements about expanding US territory, citing Canada and Greenland as potential acquisitions. Such rhetoric paints the US as an imperialist power, damaging international cooperation and trust.
• This contradicts America’s longstanding image as a defender of national sovereignty and democratic values, leading to diplomatic friction.

Undermining Security Alliances

• Trump’s withdrawal from security commitments, particularly regarding NATO, has unsettled allies. His approach toward Ukraine, including withholding military intelligence during its conflict with Russia, has been unprecedented.
• This disregard for alliances weakens decades-old partnerships, prompting global allies to reconsider their reliance on the US for security and stability.

Cutting Government Spending: A Misstep?

• Trump advocates shrinking the federal government by reducing workforce size and eliminating departments like the Department of Education. However, US economic resilience post-2008 financial crisis and COVID-19 pandemic was fuelled by high government spending.
• Cutting expenditure abruptly could stifle demand and economic growth. The US dollar’s global trust allowed unprecedented money printing, which financed welfare programs—something Trump’s policies could undermine.

Crackdown on Illegal Immigration and Its Economic Impact

• Trump has intensified deportation efforts, removing thousands of illegal immigrants within weeks. While illegal immigration is contentious, a sudden reduction in the workforce strains labour markets, raising wage costs. Additionally, Trump’s administration is wary of legal immigrants’ success over native-born Americans.
• Recent claims that “all net job growth under Biden went to foreign-born Americans” highlight these concerns, potentially shaping future immigration policies.

Tax Cuts and Deregulation: Boon or Bane?

• Trump supports tax cuts for individuals and corporations, alongside massive deregulation. While such measures often boost economic activity, their feasibility depends on reducing existing government spending to avoid escalating deficits.
• Deregulation raises concerns about conflicts of interest, particularly with influential business figures like Elon Musk shaping regulatory frameworks. Historically, US regulations have safeguarded consumers and prevented monopolistic practices—dismantling these protections could have unintended negative consequences.

Market Reactions: Stock Market Crash and Investor Sentiment

• Initial optimism surrounding Trump’s economic policies led to stock market gains. Investors anticipated economic revival through tax cuts and deregulation, dismissing tariffs as short-term bargaining tactics.
• However, the market downturn following his inauguration suggests a reassessment of Trump’s long-term economic strategy. Financial institutions like Citi and HSBC have downgraded US stocks, with investors increasingly favouring European and Chinese markets over American assets.

Economic Strategies in the EU and China

• In response to Trump’s policies, the European Union is expanding government spending, particularly in infrastructure and defense, to regain economic self-sufficiency. With a GDP close to China’s, the EU aims to reverse its growth stagnation.
• Meanwhile, China, facing deflation and an excessive trade surplus, is pivoting toward boosting domestic consumption. These shifts present alternative investment opportunities, diverting capital away from US markets.

Trump’s Perspective: Rebuilding American Industry

• Trump views the US as having been exploited economically. He blames globalization for job losses and the decline of industries like manufacturing. His administration aims to revitalize domestic production through tariffs, incentives, and tax breaks.
• Trump believes these measures will either generate government revenue to support tax relief or encourage companies to establish operations within the US, creating new jobs.

Risks: Recession and Stagflation

• Trump’s economic strategy carries significant risks, including recession—marked by declining economic output and job losses—and stagflation, where growth stagnates while inflation persists. Even if his policies eventually succeed, the transition period could be economically turbulent.
• Trump remains unconcerned about short-term setbacks, asserting that his approach will ultimately restore US economic dominance. However, the impact on stock markets and investor confidence cannot be ignored.

The Wealth Effect and Economic Stability

• A declining stock market directly affects consumer behavior through the “wealth effect.” Rising stock values encourage spending, driving economic growth, while market declines lead to reduced consumer expenditure, slowing the economy.
• The US stock market capitalization once exceeded 200% of GDP, meaning recent declines equate to significant wealth loss, dampening economic momentum.

Conclusion

• Trump’s economic policies seek to reshape the US economy but pose substantial risks. His focus on tariffs, deregulation, immigration control, and reduced government spending aims to restore American manufacturing and jobs.
• However, these measures could disrupt financial stability, strain international alliances, and trigger economic downturns. The coming years will determine whether Trump’s strategy revitalizes the US economy or exacerbates existing challenges.

3) Powering India’s Future: Meeting Rising Demand with Clean Energy

GS 3: Economy: Tackling India’s energy demand

Why is it in the news?

• India’s electricity demand is surging due to economic growth, urbanization, and climate change-induced heat stress. Since FY21, electricity consumption has grown at approximately 9% annually, surpassing earlier projections of 6% CAGR between 2022 and 2030.
• With record-breaking heatwaves and rising industrial activity, demand is expected to remain high, raising concerns about reliability and affordability. The challenge is to balance this rapid growth with the country’s clean energy transition.

Rising Electricity Demand: Key Drivers

• Economic expansion, increasing urbanization, and extreme weather events are the primary drivers of India’s growing electricity demand. Households, industries, and agriculture account for 28%, 33%, and 19% of total electricity consumption, respectively, with household demand rising the fastest.
• The summer of 2024 saw a 40-50% surge in air conditioner sales due to rising incomes and record temperatures. On May 30, 2024, India’s peak power demand crossed 250 GW, exceeding projections by 6.3%.
• As the country braces for further heatwaves, peak demand is expected to grow by 9-10% in 2025, making electricity consumption more uncertain.

India’s Efforts to Meet Demand

• India’s power generation capacity has quadrupled since the early 2000s, reaching 460 GW, making it the world’s third-largest electricity producer. The government has prioritized renewable energy (RE) expansion, increasing the initial 20 GW RE target in 2010 to 175 GW by 2022 and further to 500 GW of non-fossil fuel capacity by 2030.
• To address recent power shortages, India increased coal allocation, optimized railway transport, and mandated full-capacity operation of imported coal-based plants. States with significant solar capacity have used surplus power to meet daytime peaks, but night-time demand remains a challenge.
• In 2024, India added a record 28 GW of RE capacity, pushing its RE share to 13.5%. Coal’s share in installed capacity fell below 50% but still provides 75% of actual electricity generation. With RE capacity reaching 165 GW and another 32 GW expected in 2025, India needs to add 50 GW annually to meet its 2030 target.

The Need to Raise Clean Energy Ambitions

• Recent power shortages highlight the urgency of reliable and cost-effective energy planning. A study by the Council on Energy, Environment and Water (CEEW) warns that failing to achieve the 500 GW RE target by 2030 will lead to power deficits and higher costs.
• If RE capacity reaches only 400 GW, 0.26% of demand would go unmet, impacting nearly 1 million households for 2.5 hours daily. Northern states would be particularly vulnerable due to network constraints.
• If demand grows at a 6.4% CAGR (higher than the projected 5.8%), even achieving the 500 GW RE target would not be enough. India would then need to choose between adding 6 GW of new coal power or 100 GW of additional RE capacity.
• While coal can meet demand, increased plant stress and maintenance issues could lead to unexpected shortages and cost hikes. Adding 100 GW of RE, distributed across states, is a more sustainable and cost-effective solution.

Targeting 600 GW of Clean Energy by 2030

• India must scale up its clean energy ambitions to 600 GW by 2030 to ensure stable and affordable power supply. This would save ₹42,400 crore ($5 billion) in procurement costs in 2030 alone while creating 1,00,000 jobs and reducing air pollution by 23%. However, achieving this would require an accelerated RE addition of 70 GW annually, which faces significant challenges.
• Land acquisition delays, transmission infrastructure shortages, unclear incentives for inter-state RE plants, and grid balancing issues have slowed RE deployment. While coal power might seem a fallback option, it is neither affordable nor reliable.
• Coal projects take over seven years to commission, whereas modular RE plants can be deployed faster and provide cheaper electricity.

Accelerating Renewable Energy Expansion

Scaling up to 600 GW is achievable with the right policies and market interventions. Three key strategies can help:

Expanding RE Deployment Across States

• Currently, five states host 75% of India’s RE capacity due to concentrated investment. State-agnostic reverse bidding and inter-state transmission system (ISTS) waivers have attracted projects to a few regions, putting pressure on land and infrastructure.
• The government must collaborate with states like Odisha, Madhya Pradesh, Bihar, Punjab, and Kerala to create RE-friendly environments. The ISTS waiver should not be extended beyond June 2025, except for storage-linked projects, to encourage more decentralized RE development.

Integrating Wind and Energy Storage with Solar Projects

• Co-locating wind and battery energy storage systems (BESS) with existing and new solar plants will optimize land use and enhance grid stability. By 2030, India will require 280 GWh of BESS and 100 GWh of pumped hydro storage to support 600 GW of RE.
• Battery storage, which can be deployed within six months, should be prioritized due to its increasing affordability.

Innovating Bidding and Contract Mechanisms

• Large RE tenders floated in FY24 failed to attract buyers due to concerns over pricing and supply consistency. The central government must work with states to increase RE procurement demand, simplify bidding mechanisms, and resolve market bottlenecks.
• Additionally, improving RE availability on power exchanges through a Contract-for-Difference mechanism can mitigate risks for investors and boost RE adoption.

Conclusion

• India’s renewable energy transition has made significant progress over the past decade, but more ambitious action is needed. By aiming for 600 GW of RE by 2030, India can secure reliable and affordable electricity, reduce emissions, and drive economic growth.
• Achieving this goal will require strategic policy interventions, faster deployment, and strong collaboration between the central and state governments. If executed effectively, India could double its clean energy share from 25% to 50%, setting a global benchmark in sustainable energy transition.

4) The Neurobiological Basis of Addiction: Understanding the Brain’s Role in Substance Abuse

GS 2: Society: Understanding addiction

Why is it in the news?

• The human brain, with its approximately 86-100 billion neurons, is one of the most intricate structures in existence. Recent research highlights that addiction is not confined to specific brain regions but involves an interconnected circuit affecting craving, emotional regulation, and decision-making.
• As Brain Awareness Week (March 10-16) emphasizes neuroscience, understanding addiction as a chronic brain condition rather than a moral failure becomes crucial for developing effective treatment and intervention strategies.

Groundbreaking Study on Addiction

• A multi-centre study analyzed data from 144 imaging studies involving over 9,000 participants. It revealed that addiction affects a unified circuit rather than isolated brain regions. This paradigm shift calls for a holistic approach that considers the interconnected nature of neural pathways involved in substance use disorders.
• Three key brain regions play a crucial role in addiction: the basal ganglia, the extended amygdala, and the prefrontal cortex. These regions are associated with the three-stage cycle of addiction: binge/intoxication, withdrawal, and preoccupation/anticipation.
• The basal ganglia, particularly the nucleus accumbens (NAc), reinforces behaviors that produce pleasure, making addiction a hijacking of the brain’s reward system.
• The extended amygdala regulates stress and negative emotional states during withdrawal, driving continued substance use despite harmful consequences.
• The prefrontal cortex, responsible for executive functions like decision-making and impulse control, becomes impaired in addiction, explaining why individuals persist in substance use despite knowing its dangers.

Adolescent Brain Vulnerability

• Adolescence is a critical period for addiction risk, as the prefrontal cortex, responsible for rational decision-making and impulse control, is among the last brain regions to mature. This delayed development makes adolescents particularly vulnerable to substance use disorders.
• Long-term substance use lead to neuroadaptations that impair brain function and accelerate the transition from controlled to compulsive use. These changes may persist even after substance use ceases, increasing the risk of relapse.

Beyond Simplistic Narratives: The Multifactorial Nature of Addiction

• Addiction is influenced by genetic predisposition, psychological history, environmental factors, and the age of first use. Understanding these complexities challenges simplistic narratives and highlights the need for nuanced prevention and treatment approaches.
• Animal models have helped researchers study the impact of genes and environmental factors on addiction, while human brain imaging studies have revealed biochemical, functional, and structural changes caused by substance use.
• However, more research is needed to understand the brain’s recovery process and the factors that support long-term sobriety.

The Path to Effective Treatment

• One of the most significant contributions of neuroscience to addiction research is its role in reducing stigma. By recognizing addiction as a chronic brain disorder, treatment approaches have been integrated into mainstream healthcare.
• Clinical trials continue to explore medications for various substance use disorders, with promising developments in opioid addiction treatment. Advancements in neuroscience could lead to targeted interventions that address specific neural circuits disrupted by addiction.

Moving Toward a Compassionate Approach

• As Brain Awareness Week encourages a deeper understanding of neuroscience, it is essential to integrate these insights into public policy, treatment programs, and societal attitudes.
• The brain’s remarkable plasticity—the ability to reorganize and adapt—offers hope for addiction recovery. With ongoing research, improved public awareness, and evidence-based interventions, substance use disorders can be effectively prevented and treated.
• Behind every statistic and brain scan is a human being—someone whose neural circuitry has been altered but whose capacity for recovery remains. Recognizing this is fundamental to guiding scientific research, clinical practice, and public discourse on addiction.

5) ISRO Successfully Undocks SpaDeX Satellites in First Attempt

GS 3: Science and Technology: SpaDeX Mission

Why is it in the news?

• Nearly two months after the successful docking of two satellites under the Space Docking Experiment (SpaDeX) mission, ISRO has achieved yet another milestone by completing their undocking in its very first attempt.
• The operation was carried out on March 14 at 9:20 a.m. in a 460 km circular orbit with a 45-degree inclination. The space agency confirmed that the satellites are now orbiting independently and remain in normal health.

Major Achievement in Space Technology

• With this successful undocking, ISRO has now demonstrated all essential capabilities for spacecraft rendezvous, docking, and undocking in orbit. The in-orbit performance of the docked satellites was extensively analyzed, and an immediate window from March 10 to 25 was identified as feasible for the operation.
• Ground stations in Bengaluru, Lucknow, and Mauritius monitored the entire process. ISRO has also planned further experiments with the satellites in the coming days to advance space docking technology.

India Joins Elite Club in Space Docking

• On January 16, ISRO successfully performed the SpaDeX docking experiment, making India the fourth country—after the U.S., Russia, and China—to achieve this historic feat.
• The two satellites, SDX01 (Chaser) and SDX02 (Target), were launched aboard PSLV C60 on December 30, and their docking was completed on January 16. Following this achievement, ISRO had indicated that undocking would be carried out soon, leading to this latest breakthrough.

Significance of the SpaDeX Mission

• The SpaDeX mission is a crucial initiative aimed at developing and demonstrating technologies necessary for spacecraft rendezvous, docking, and undocking.
• These capabilities are fundamental for future space missions, including sending an Indian astronaut to the Moon, conducting lunar sample return missions, and establishing an Indian Space Station.

6) Hantavirus and Its Impact

GS 3: Science and Technology: Understanding Hantavirus

Why is it in the news?

• Hantaviruses are a family of viruses that can cause severe, potentially fatal illnesses such as Hantavirus Pulmonary Syndrome (HPS) and Hemorrhagic Fever with Renal Syndrome (HFRS). These diseases are characterized by severe respiratory distress, internal bleeding, and potential kidney failure.
• The recent death of Betsy Hackman, wife of actor Gene Hackman, has brought attention to this rare but deadly virus. While cases are uncommon, the high fatality rate underscores the importance of understanding its spread, symptoms, and prevention.

How Does Hantavirus Spread?

• Hantavirus is primarily transmitted through contact with infected rodent waste. Rodents such as deer mice, white-footed mice, rice rats, and cotton rats carry the virus.
• According to the U.S. Centres for Disease Control and Prevention (CDC), humans can contract the virus through aerosolized particles when disturbing contaminated materials, such as cleaning rodent-infested areas.
• The World Health Organization (WHO) notes that various hantavirus strains exhibit different severity levels, with some causing more lethal infections.

Symptoms and Risk Factors

• The infection initially presents flu-like symptoms, including fever, muscle aches, and fatigue, within 1-8 weeks of exposure. As the illness progresses, patients may experience severe respiratory distress, coughing, chest tightness, and, in critical cases, acute respiratory failure.
• Those at higher risk include farmers, construction workers, campers, and individuals living in rodent-infested areas. The CDC also warns that children under five, pregnant women, and immunocompromised individuals should avoid handling pet rodents due to increased vulnerability.

Treatment and Prevention

• Currently, there is no specific antiviral cure for hantavirus. Treatment focuses on managing symptoms, with oxygen therapy used to ease respiratory distress. Severe cases may require intensive care, including mechanical ventilation for lung support.
• Early detection and immediate medical attention are critical in preventing fatal complications. Prevention remains the best strategy, involving effective rodent control, proper sanitation, and avoiding direct contact with rodent-infested environments.

7) Thalassemia

GS 3: Science and Technology: Understanding Thalassemia

Context

• The Andhra Pradesh government is planning to increase the monthly pension for thalassemia patients and extend it to those above the poverty line, considering the high cost of treatment. Currently, patients below the poverty line receive treatment under the NTR Vaidya Seva scheme.

What is Thalassemia?

• Thalassemia is a hereditary blood disorder where the body produces inadequate haemoglobin, the protein in red blood cells responsible for carrying oxygen.
• Each RBC contains around 240–300 million haemoglobin molecules, and its deficiency leads to severe anaemia, necessitating blood transfusions every 2–3 weeks for survival.

Key Symptoms

• Anaemia and persistent fatigue
• Weak bones and slow growth
• Iron overload from frequent transfusions
• Loss of appetite and pale skin
• Enlarged spleen or liver

Some key points

• India has the highest number of thalassemia cases, with over 1,00,000 patients dying before the age of 20 due to lack of treatment.
• The first reported case in India was in 1938.
• Thalassemia, along with Haemophilia and Sickle Cell Disease, is recognized as a benchmark disability under the Rights of Persons with Disabilities Act, 2016.
• World Thalassemia Day is observed on May 8 to raise awareness and promote policy interventions.

8) Mission Amrit Sarovar

GS 3: Environment and Biodiversity: Water conservation initiative

Why is it in the news?

• Indian Railways has joined the Union government’s Mission Amrit Sarovar by excavating ponds to help combat water scarcity across the country.

Overview of Mission Amrit Sarovar

• Introduced on April 24, 2022, the mission focuses on water conservation and rejuvenation of water bodies.
• It aims to create or restore 75 ponds (Amrit Sarovars) in each district, leading to around 50,000 water bodies nationwide.

Key Features

• Multi-Ministry Initiative: Implemented through a collaborative approach involving ministries such as Rural Development, Jal Shakti, Culture, Panchayati Raj, and Environment.
• Implementation Strategy: Projects are executed at the state and district levels, utilizing funds from multiple government schemes, including:

1) MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme)

2) 15th Finance Commission Grants

3) Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) – Watershed Development and Har Khet Ko Pani.

• Public Participation: Crowdfunding and CSR contributions are encouraged to enhance resources and community involvement.

Significance of the Initiative

• Boosts Livelihoods: The ponds will support agriculture, fisheries, duck farming, and water tourism, creating economic opportunities.
• Enhances Social Infrastructure: The restored water bodies will serve as community gathering spaces and venues for Independence Day flag hoisting.
• Strengthens Water Resources: Improves surface and groundwater levels, helping combat water shortages and fostering climate resilience.

Current Progress and Future Plans

• By January 2025, over 68,000 water bodies have been developed, significantly improving water availability in many regions.
• Phase Two has been launched, focusing on enhancing water sustainability, increasing public participation (Jan Bhagidaari), and promoting ecological balance for long-term benefits.

9) PM’s Visit to Mauritius

Context

• The Prime Minister visited Mauritius for the second time since 2015 and attended the country’s National Day celebrations on March 12 as the Chief Guest.

Key Outcomes of the Visit

Agreements and Collaborations

• Several Memorandums of Understanding (MoUs) were signed, covering areas such as training for civil servants, boosting small and medium enterprises, blue economy initiatives, financial crime prevention, and trade settlement in local currencies.
• Credit Line in INR: India extended a credit line of ₹487.6 crore for upgrading Mauritius’ water pipelines, marking the first-ever INR-based credit line.
• Maritime Cooperation: A White-Shipping Agreement was signed to enhance maritime security and information exchange.

Recognition and Strategic Vision

• Honorary Award: The PM was honoured with the Grand Commander of the Order of the Star and Key of the Indian Ocean, making him the first Indian recipient.
• Vision MAHASAGAR: Introduced as an expansion of Vision SAGAR, focusing on holistic regional security and economic growth.

Overview of Mauritius

• Geographical Importance: An island nation in the western Indian Ocean, Mauritius is strategically located near India.
• Demographics: Nearly 70% of its 1.2 million population is of Indian descent, strengthening cultural and diplomatic ties.
• Colonial Past: Originally a French colony, later becoming a British possession before gaining independence.
• National Day: Celebrated on March 12 to commemorate Mahatma Gandhi’s Dandi March.

India-Mauritius Bilateral Relations

Political and Economic Ties

• Diplomatic Relations: Established in 1948, both nations have evolved into significant trade and investment partners.
• Trade Statistics (2022-23): India exported goods worth $462.69 million to Mauritius, while Mauritius exported $91.50 million to India, with total trade amounting to $554.19 million.
• Double Taxation Agreement: Signed in 1982 to prevent non-resident investors from facing double taxation.
• CECPA Agreement: The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) was signed in 2021, marking India’s first trade agreement with an African nation.
• FDI Contributions: Mauritius ranked as India’s second-largest source of Foreign Direct Investment (FDI) in 2023-24, following Singapore.

Defense and Strategic Cooperation

• Defense Partnership: India is Mauritius’ preferred partner for defense equipment, capacity building, and joint maritime patrols.

Key Defense Agreements:

• Transfer of a Dornier aircraft and an Advanced Light Helicopter (Dhruv) on lease to Mauritius.
• A $100 million Line of Credit (LoC) to procure additional defense assets.
• Space Collaboration: In November 2023, both nations signed an MoU to jointly develop a satellite.

Historical Migration and Development Cooperation

• French Era (1700s): Indians from Puducherry arrived as artisans and masons.
• British Era (1834-1900s): Nearly half a million Indian indentured laborers were brought to Mauritius, many of whom settled permanently.
• Infrastructure Development: India has supported projects such as Metro Express, new hospitals, and infrastructure in Agaléga Island.
• Humanitarian Aid: India provided assistance to Mauritius during Cyclone Chido in 2023, reinforcing its role as a ‘First Responder.’

Strategic Significance of Mauritius for India

• Maritime Security and Trade: Its location in the Indian Ocean is vital for India’s trade and naval operations.
• Agaléga Island: Situated 1,100 km north of Mauritius, it holds strategic importance for India’s security. In 2024, both countries inaugurated an airstrip and jetty, further strengthening defense ties.
• Countering China’s Expansion: Deepening relations with Mauritius is crucial for India to curb China’s growing presence in the Indian Ocean region.
• Geopolitical Dynamics: Various global powers, including European nations, Gulf countries, Russia, Iran, and Turkey, are expanding their influence in the Indian Ocean, necessitating strong Indo-Mauritian ties.
• Blue Economy Potential: Mauritius plays a key role in India’s maritime economy, particularly in fisheries, offshore energy, and marine resource exploration.
• Indian Ocean Cooperation: Mauritius is an active participant in regional organizations like the Indian Ocean Rim Association (IORA), contributing to economic and security frameworks.

Challenges in Bilateral Relations

• Misuse of Tax Treaties: The Double Taxation Avoidance Agreement (DTAA) has raised concerns over its potential exploitation for money laundering and round-tripping of funds.
• Security Challenges: Mauritius’ pivotal role in the Indo-Pacific makes security cooperation vital, but evolving regional threats pose risks.
• Economic Imbalances: Despite strong trade ties, the imbalance in trade volumes necessitates diversification of economic engagement.
• China’s Influence: China’s Free Trade Agreement (FTA) with Mauritius, enacted in 2021, aligns with its Belt and Road Initiative, potentially shifting regional economic dynamics.

Way Forward

• The India-Mauritius relationship continues to evolve with deep-rooted cultural ties and growing strategic interests. Strengthening defense and security cooperation, enhancing trade opportunities, and countering geopolitical challenges will be key to sustaining this partnership.
• Joint efforts in maritime security, economic collaboration, and cultural exchange will further cement this robust bilateral relationship, fostering regional stability and mutual growth.