DAILY NEWS ANALYSIS

India’s aspiration to become a global power is a compelling journey marked by both significant challenges and substantial opportunities. As one of the fastest-growing economies in the world, India faces unique constraints that limit its global influence, but it also holds key foundations that provide a strong foundation for global leadership.

Key Constraints Hindering India’s Global Power Aspirations

1. Ambition vs. Strategic Capacity:

   • Strategic Clarity and Institutional Capacity: While India has ambitious goals, critics argue that it lacks the strategic clarity and institutional mechanisms to translate this ambition into sustained global influence. For instance, its military expenditure is far behind China and the US, which weakens its power projection capabilities. India’s military expenditure for 2024 was USD 86 billion, significantly less than China's USD 314 billion.

   • Dependency on Arms Imports: India is one of the largest arms importers globally (9.5% of the global arms imports between 2016-2020), which reflects its underdeveloped indigenous defense capabilities and reliance on external suppliers.

2. Strategic Ambiguity in Global Alliances:

   • India’s strategic autonomy has helped it avoid being overly aligned with any one global power, notably balancing its relations with the Quad, Russia, and China. However, critics argue that this “non-aligned” approach could hinder India’s reliability as a partner in times of crisis. India’s cautious stance on the Russia-Ukraine conflict has sometimes been seen as undermining its standing in Western capitals.

3. Human Development Constraints:

   • Human Development Index (HDI): India ranks 130th out of 193 countries on the HDI in 2023, highlighting significant deficits in areas like health, education, and income distribution. The Inequality-Adjusted HDI (IHDI) is even lower, revealing persistent social and regional inequalities that hinder holistic national development.

   • Poverty and Inequality: With widespread inequality, India struggles to build a cohesive society. Inequality in wealth and opportunity undermines India’s global image as a rising power and limits its soft power potential.

4. Economic Power vs. Per Capita Strength:

   • India is the 4th largest economy by nominal GDP, but its per capita GDP remains low at USD 2,711, placing it among lower middle-income nations. This makes it less influential in economic diplomacy and limits its ability to project soft power on a global scale. India’s rank of 144th in per capita GDP reflects a stark contrast to the economic might of the US or China.

5. Technological Gaps and Innovation Challenges:

   • India lags behind in cutting-edge technologies. For example, it ranks 39th on the Global Innovation Index, far behind China (11th) and the US (3rd). While India has made strides in digital technology (e.g., UPI and Aadhaar), challenges remain in sectors like semiconductors, quantum computing, and biotechnology.

6. Internal Social Fault Lines:

   • Press Freedom: India ranks 159th out of 180 in the World Press Freedom Index, which impacts its democratic credibility. Moreover, vast development gaps between states like Goa (HDI ~0.75) and Uttar Pradesh (~0.60) highlight significant regional inequalities, further hindering national cohesion and the ability to project a unified front globally.

Key Foundations Supporting India’s Aspiration to Become a Global Power

1. Economic Growth and Demographic Advantage:

   • India’s economy is poised for growth at a rate of 6-7% per year, making it a major economic power in the coming decades. By 2030, India is expected to be the third-largest economy globally.

   • India’s young population (median age of 28.2 years) provides a substantial labor force, boosting innovation, industrial growth, and consumption, making it an attractive market and driving global influence.

2. Geopolitical Significance:

   • Strategically located at the crossroads of Asia, India controls vital maritime chokepoints in the Indian Ocean, essential for global trade and security.

   • India’s participation in forums like the Quad, SCO, and BRICS enhances its geopolitical leverage, especially in the Indo-Pacific, shaping the future of regional security and global governance.

3. Technological and Defence Strength:

   • Digital Leadership: India has become a digital powerhouse, leading in mobile payment systems like UPI and having over 100 unicorns in tech startups. Additionally, its space missions (e.g., Chandrayaan 3 and Mangalyaan) and growing defense capabilities (e.g., Tejas aircraft and INS Arihant submarine) reinforce its technological and military potential.

   • India’s military personnel ranks second globally, and its defense strength is growing, underscoring its military significance in Asia.

4. Strategic Autonomy and Soft Power:

   • India’s strategic autonomy allows it to navigate great power rivalries and engage in diverse multilateral forums. India is increasingly seen as a leader in the Global South and a counterbalance to China's rise in Asia.

   • India's soft power—exemplified by its vibrant diaspora, Bollywood, yoga, and global influence on climate change—is central to its growing global profile. With over 30 million people in the diaspora, India has an established network in key economies that amplifies its diplomatic efforts.

How Should India Navigate Evolving Global Power Dynamics?

1. Strengthen Domestic Foundations for Global Reach:

   • India must focus on health, education, skilling, and infrastructure to convert its demographic advantage into economic growth. Institutional reforms in governance, the judiciary, and policing are also critical to building rule-based development.

2. Strategic Communication of India’s Vision:

   • India should clearly articulate its unique path of democracy with diversity, inclusive growth, and sustainable development. By proactively promoting its civilisational story, India can counter Western misperceptions and showcase its distinctive model of governance.

3. Balanced Partnerships with Competing Powers:

   • India should continue balancing assertiveness with pragmatism. Strengthening ties with the US while engaging constructively with China and Russia will enhance India’s leverage in global forums. India should focus on issue-based coalitions rather than bloc politics, positioning itself as an important but independent voice in a multipolar world.

4. Leverage Soft Power and Technological Leadership:

   • India should invest further in tech diplomacy, particularly in areas like Data Governance, AI ethics, and digital public goods. By promoting its leadership in global regulatory frameworks (tech, environment, global health), India can shape global norms and enhance its soft power.

Conclusion: India’s Path to Global Power

India’s trajectory from food scarcity to food security, from Non-Alignment to strategic engagement with great powers, and from industrial laggard to digital innovator is a remarkable story of resilience and evolution. While there are constraints—such as strategic ambiguity, military and technological gaps, and domestic inequalities—India’s foundations in economic growth, geopolitical significance, and technological and defense strength position it as an emerging global power. By focusing on domestic reforms, strategic partnerships, and soft power, India can become not just a follower of global trends but a shaper of the future world order

The NITI Aayog report “Unlocking a 200 Billion Dollar Opportunity: Electric Vehicles (EVs) in India” and the launch of the India Electric Mobility Index (IEMI) highlight both the potential and the challenges facing the country in transitioning to electric mobility. As India moves forward, addressing these challenges will be key to unlocking the growth and environmental benefits of EV adoption.

India Electric Mobility Index (IEMI)

The IEMI is the first-ever tool to track and benchmark India's progress in e-mobility at the state level. Launched in partnership with the World Resources Institute India, it evaluates the readiness and progress of states in the transition to electric vehicles. The index tracks 16 performance indicators across three categories:

1. Transport Electrification Progress – Measuring the adoption of electric vehicles on the demand side.

2. Charging Infrastructure Readiness – Assessing the development of a charging network.

3. EV Research & Innovation – Evaluating the supply-side R&D efforts.

The states are categorized into four levels:

• Achievers (100 points)

• Front Runners (65–99 points)

• Performers (50–64 points)

• Aspirants (0–49 points)

For 2024, Delhi emerged as the leader with a score of 77, followed by Maharashtra (68), Chandigarh, and Karnataka.

Electric Vehicle (EV) Overview

Types of Electric Vehicles (EVs):

• Battery Electric Vehicles (BEVs) – Fully electric vehicles powered by rechargeable batteries.

• Hybrid Electric Vehicles (HEVs) – Combine an electric motor and an internal combustion engine (ICE).

• Fuel Cell Electric Vehicles (FCEVs) – Use fuel cell technology to generate electricity for propulsion.

• Plug-in Hybrid Electric Vehicles (PHEVs) – Have both an engine and a rechargeable battery.

Status of EVs in India:

• India witnessed a significant increase in EV sales, reaching 2.08 million units in 2024, a sharp rise from 50,000 in 2016.

• However, EV penetration remains at 7.6% in 2024, far from the target of 30% by 2030.

Key Challenges Highlighted in the Report

1. Financing Challenges (for e-Buses & e-Trucks):

   • High capital cost: Electric buses and trucks are 2–3 times more expensive than their internal combustion engine counterparts.

   • Financial institutions are skeptical about the repayment capacity of smaller operators.

2. Vehicle-Centric Challenges:

   • EV batteries are heavy and costly, reducing truck load capacity.

   • The 15-year scrappage rule decreases the resale value of EVs.

3. Charging Infrastructure Challenges:

   • Public charging costs four times more than home charging due to GST (18%) and operator margins.

   • Issues with obtaining upstream power supply connections from DISCOMs.

   • Land constraints in cities and highways hinder the establishment of charging stations.

   • Resident Welfare Associations (RWAs) have concerns about safety regarding charging stations.

   • Lack of a unified app for locating, booking, and paying for charging stations.

4. Awareness and Perception Challenges:

   • Confusion over incentives offered by different states.

   • Misconceptions related to fire safety, battery degradation, range anxiety, and resale value.

   • Weak and fragmented awareness campaigns.

5. Inadequate Data and Regulatory Gaps:

   • Inaccurate data on EV categories in the VAHAN database.

   • Lack of unique battery IDs, making it difficult to track and recycle batteries.

   • The Inverted GST structure on EVs (input GST at 18% and output GST at 5%) is problematic for manufacturers.

Steps Taken by India to Boost EV Adoption

1. PM E-DRIVE Scheme:

   • Supports electric two-wheelers, three-wheelers, e-trucks, e-buses, and charging infrastructure.

   • Provides demand-side incentives to consumers.

2. EV Manufacturing Promotion:

   • The Scheme to Promote Manufacturing of Electric Passenger Cars aims to attract global EV manufacturers and make India a key EV manufacturing hub.

3. PM e-Bus Sewa Scheme:

   • Aims for the deployment of 38,000+ e-buses, ensuring payment security for operators.

4. PLI Scheme for Automotive & Auto Components:

   • To boost domestic production of EV-related technologies and components.

5. PLI – Advanced Chemistry Cells:

   • Aims to produce 50 GWh of domestic battery capacity, reducing dependence on imports.

6. GST Reduction:

   • GST on EVs reduced from 12% to 5%.

7. EVolutionS Program:

   • Launched by Department of Science & Technology (DST) to support EV startups.

Way Forward

1. Moving from Incentives to Mandates:

   • Set production targets for Zero Emission Vehicles (ZEVs) and impose higher registration fees/taxes on ICE vehicles to create demand for EVs.

2. Saturation Approach:

   • Target 100% EV adoption in 5 key cities within 5 years, supported by infrastructure and fleet electrification mandates.

3. Financing e-Buses and e-Trucks:

   • Create a pooled fund for low-interest loans to support the procurement of electric buses and trucks.

4. Battery Research:

   • Promote industry-academia-government partnerships for R&D on next-gen EV batteries.

5. Strategic Charging Infrastructure:

   • Develop 20 key corridors and establish nodal agencies for mapping and setting up charging hubs.

6. Unified National EV App:

   • Develop a centralized app for locating charging stations, booking slots, payments, and explore dedicated EV power lines.

7. Lowering Upfront Costs:

   • Encourage leasing models for buses and trucks and battery-as-a-service (BaaS) to reduce capital costs for small operators.

8. Awareness and Information:

   • Launch a national EV awareness program, assess stakeholder data needs, and create a robust information system to guide decisions.

Best Practices for EV Adoption

• China: The “10 Cities, 1000 Vehicles” program, where each city deployed at least 1,000 NEVs in public fleets, is a notable example.

• Singapore: Established EVElectric Charging to coordinate charging station deployment, working with relevant agencies.

• Europe: The ChargeMap app provides real-time data and user reviews of charging stations.

• UK: The Faraday Battery Challenge created the UK Battery Industrialisation Centre to scale lab prototypes to production.

Conclusion

India is on the verge of unlocking a significant 200 billion dollar opportunity in the EV sector, but the path forward requires addressing several structural and market challenges. The India Electric Mobility Index (IEMI) will play a crucial role in tracking progress and identifying gaps. By focusing on enhancing charging infrastructure, improving awareness, and addressing financial and regulatory issues, India can accelerate its transition to electric mobility, making it a global leader in the sector. Through sustained government support, strategic partnerships, and innovation, India has the potential to become a powerhouse in the EV space.

Adani Power has signed a strategic agreement with Bhutan's state-owned utility, Druk Green Power Corporation Ltd. (DGPC), to establish the Wangchu Hydroelectric Project in Bhutan. This project, which is a significant step in the India-Bhutan energy partnership, will have a total capacity of 570 MW and will involve an investment of ?6,000 crore.

About the Wangchu Hydroelectric Project

1. Project Capacity and Features:

   • The Wangchu Hydroelectric Project will have a total installed capacity of 570 MW.

   • The project will consist of four turbines, each with a 142.5 MW nameplate capacity.

   • It is designed to be a run-of-river project, meaning it will use the natural flow of the river without needing a large reservoir.

2. Location:

   • The project will be situated on the Wangchu River (also known as the Raid?k River in India) in Chukha District, Bhutan. The Wangchu River is a major tributary of the Brahmaputra River, which flows through India and Bangladesh.

3. Investment and Timeline:

   • The project entails a ?6,000 crore investment.

   • It is expected to begin operations in 2026, with completion slated within five years.

   • Once operational, the project will produce 2,478.93 GWh of electricity annually.

4. Power Generation and Export:

   • The power generated by the Wangchu Hydroelectric Project will meet Bhutan’s electricity demand during the winter months.

   • During the summer season, excess power will be exported to India, contributing to energy supply in the region.

Strategic Importance and Partnership

This project is part of a broader collaboration between Adani Group and DGPC, stemming from a Memorandum of Understanding (MoU) signed in May 2025. The MoU aims to jointly develop 5,000 MW of hydropower in Bhutan over the coming years.

This collaboration aligns with India's ongoing efforts to secure clean and sustainable energy from neighboring countries, particularly Bhutan, which has significant hydropower potential. The Wangchu Hydroelectric Project marks the first of several such projects planned under this MoU.

Environmental and Regional Implications

1. Clean Energy:

   • The project will contribute to clean, renewable energy production and will help reduce the carbon footprint of the region.

2. Economic Impact:

   • The project will create jobs and stimulate economic growth in Bhutan, particularly in Chukha District, while also boosting bilateral trade relations with India.

3. Energy Security for India:

   • The ability to import surplus electricity from Bhutan, especially during the summer months, will contribute to India's energy security, particularly in the northeastern region, which faces frequent energy shortages.

4. Sustainability:

   • Given Bhutan's focus on sustainable development, the project is expected to be environmentally responsible, with minimal impact on the local ecosystem. Bhutan is known for its commitment to carbon neutrality, and hydropower projects like Wangchu are integral to maintaining this status.

Recent News:
Due to heavy rainfall in the catchment area of the Vishwamitri River, the Vadodara Municipal Corporation (VMC) has opened all 62 gates of the Ajwa Reservoir to release 6,600 cusecs of water downstream..

About the Vishwamitri River

1. Geographical Overview:

   • The Vishwamitri River is a small, non-perennial river approximately 200 km long, located in Gujarat.

   • Source: It originates from the western and southern slopes of the Pavagadh Hills in eastern Gujarat.

   • Course: The river flows westward, passing through the city of Vadodara before meeting its tributaries, Dhadar and Jambuva, and ultimately draining into the Arabian Sea through the Gulf of Khambhat.

2. Ecological Significance:

   • The river is known for its highly meandering and sinuous course, which has given rise to unique ecosystems and ravines along its banks.

   • It supports a variety of wildlife species, including porcupines, Indian civet cats, jungle cats, cobras, pythons, and Bengal monitors.

   • The river is home to the vulnerable mugger crocodile (Crocodylus palustris), a species protected in India. These crocodiles have been observed to thrive in the river, particularly within the Vadodara region.

3. Conservation Efforts:

   • A survey conducted by the Gujarat Forest Department in 2020 estimated that there were around 300 mugger crocodiles in the Vishwamitri River within the limits of Vadodara.

   • The mugger crocodile is listed as vulnerable by the International Union for Conservation of Nature (IUCN) and is also included in CITES Appendix I (the highest level of protection).

Mugger Crocodile

1. Species Information:

   • The mugger crocodile is one of the 24 extant species of crocodilians globally.

   • It is often referred to as the “water monster” (or magar) in Hindi and Urdu.

2. Distribution and Habitat:

   • The mugger is found in 15 Indian states, with the largest populations in the middle Ganges (Bihar-Jharkhand) and Chambal (Madhya Pradesh, Gujarat, and Rajasthan) basins.

   • It thrives in freshwater environments, including marshes, lakes, rivers, and artificial ponds.

3. Conservation Status:

   • IUCN Status: Vulnerable

   • CITES Status: Appendix I (indicating a high level of protection)

Importance of Vishwamitri River to Vadodara

• The Vishwamitri River has played a critical role in the development of Vadodara. Human settlements have existed along its banks since 1000 B.C., marking the river as historically significant for both its ecological and cultural contributions.

• The Ajwa Reservoir, located on this river, is vital for water supply and irrigation for the region. With the recent opening of its gates, the VMC is ensuring the safety of the city by preventing potential flooding, particularly during the heavy monsoon season.

Conclusion

The Vishwamitri River is not only an important watercourse for Vadodara's urban development but also a crucial ecological habitat, especially for the vulnerable mugger crocodile. The recent management of water levels at the Ajwa Reservoir illustrates how local authorities are addressing the challenges posed by seasonal rainfall while also preserving the delicate ecosystem along the river. As the river continues to provide water and habitat, its conservation and sustainable management remain central to the city's future growth and ecological health

Recent News:
Ukraine recently unveiled its new long-range cruise missile named Flamingo.

About the Flamingo Missile

• The FP-5 “Flamingo” is a long-range cruise missile developed by Ukraine's Fire Point defense company.

• It is notable for being one of the largest and longest-range ground-launched cruise missile systems in the world.

Key Features of the Flamingo Missile

1. Range and Payload:

   • Range: The missile has an impressive range of 3,000 kilometers, making it capable of striking distant targets.

   • Warhead: It carries a 1,150 kg warhead, ensuring substantial destructive power upon impact.

2. Size and Weight:

   • Takeoff Weight: The missile has a maximum takeoff weight of 6,000 kg, placing it in the category of heavy missile systems.

   • Wingspan: It features a wingspan of about six meters, which contributes to its stability and long-range capability.

3. Engine and Speed:

   • The Flamingo missile is powered by a turbofan engine.

   • Speed: It can achieve a speed of up to 900 km/h, allowing it to cover large distances at a relatively fast pace.

4. Navigation and Targeting:

   • The missile is equipped with an inertial navigation system and GPS, ensuring precision and accuracy.

   • The high terminal velocity, combined with the heavy warhead, allows the missile to penetrate deeper into its target before detonation, significantly increasing its destructive effect.

5. Electronic Warfare Resistance:

   • The Flamingo missile is designed to be resistant to electronic warfare systems. It likely utilizes a secure GPS module equipped with Controlled Reception Pattern Antennas (CRPA), which make it harder to jam or interfere with during flight.

Recent News:
China’s military recently reported that it had followed and warned a Canadian and an Australian warship that were sailing through the sensitive Taiwan Strait.

About the Taiwan Strait

• Location and Geography:

  • The Taiwan Strait, also known as the Formosa Strait, separates mainland China from the island of Taiwan.

  • It extends from the South China Sea in the southwest to the East China Sea in the northeast.

  • The strait runs between the coast of Fujian Province in China and the island of Taiwan.

• Dimensions:

  • Average Width: About 180 km.

  • Narrowest Point: Approximately 130 km wide.

  • Depth: The strait is relatively shallow, with an average depth of about 490 ft (150 meters) and a minimum depth of 82 ft (25 meters).

• Strategic Importance:

  • The Taiwan Strait sits on Asia's continental shelf, which stretches across its entire length, making it crucial for both economic and military activities.

  • It serves as a major navigational waterway, handling millions of tons of cargo annually, and is one of the most important fishing grounds in China, home to over 100 economically significant fish species.

Key Features of the Taiwan Strait

1. Strategic Waterway:

   • The strait is vital for global shipping routes, and its waters are often used for military maneuvers by various nations.

   • It is also a critical military flashpoint, particularly due to the ongoing tensions between China and Taiwan.

2. Islands in the Strait:

   • The Kinmen and Matsu Islands are located on the Fujian coast (administered by China), while the Penghu (or Pescadores), Xiamen, and Pingtan Islands lie on the Taiwan side.

   • Penghu is the largest and most populous island in the Taiwan Strait.

3. Political and Military Tensions:

   • The Taiwan Strait is often a site of military confrontations or maneuvers, especially with the involvement of China and Taiwan, and occasionally the United States, as well as regional allies like Canada and Australia.

   • China claims Taiwan as a part of its territory, despite Taiwan’s democratic governance and separate political system, which continues to fuel tensions in the region.

4. Environmental and Economic Importance:

   • The strait is a key fishing ground, home to numerous fish species, some of which are economically important to the region.

   • The waterway also facilitates trade, with major ports such as Amoy (mainland China) and Kao-hsiung (Taiwan) being vital to regional economies.

Significance of the Taiwan Strait in Global Politics

1. U.S. and Allied Presence:

   • The U.S. regularly conducts freedom-of-navigation operations (FONOPs) in the Taiwan Strait, asserting that it is an international waterway. Canada and Australia have also participated in such operations, much to the ire of China.

   • The strait is frequently a flashpoint for international tensions, particularly when military vessels or aircraft pass through it.

2. China-Taiwan Relations:

   • China views any foreign military activity in the strait, especially near Taiwan, as interference in its internal affairs, seeing it as a challenge to its sovereignty over Taiwan.

   • Taiwan, on the other hand, views such military passages as a sign of international support for its democratic system and a counterbalance to China’s growing assertiveness.

3. China's Military Activities:

   • China frequently conducts military drills near the Taiwan Strait, sending a signal to both Taiwan and the international community of its military dominance and its ongoing push to assert control over the region.

4. Potential for Conflict:

   • The Taiwan Strait is one of the most vulnerable flashpoints for potential military conflict in Asia. Tensions are high due to the sensitive political situation surrounding Taiwan and China’s territorial claims.

The 15th India-Japan Annual Summit marked a significant step in the strengthening strategic partnership between the two countries, reflecting their shared goals in the face of global geopolitical uncertainties. The recent summit resulted in various high-level agreements and initiatives that broadened the bilateral cooperation across multiple sectors.

Key Outcomes of the India-Japan 15th Annual Summit:

1. Joint Vision for the Next Decade

• A comprehensive vision was adopted, focusing on eight pillars:

  • Economy

  • Technology

  • Mobility

  • Health

  • Environment

  • People-to-people ties

  • Defence and Security

  • Digital Innovation

2. Defence & Security Ties

• A new Joint Declaration on Defence and Security Cooperation was established.

• Major military exercises like Veer Guardian, MILAN, and Tarang Shakti were highlighted, marking growing military cooperation between the two nations.

3. Economic Security Initiative

• The Economic Security Initiative was launched to strengthen critical supply chains, including cooperation in critical minerals, semiconductors, clean energy, and telecommunications.

4. Investment Target Doubled

• A new target of 10 trillion Yen was set for private investment in India, focusing on Japan Industrial Townships and MSMEs (Micro, Small, and Medium Enterprises).

5. Digital Partnership 2.0 & AI Initiative

• The Digital Partnership 2.0 was unveiled, covering:

  • Large language models (LLMs)

  • Data centres

  • Startups

  • Research collaboration in AI and digital technologies.

6. Clean Energy Partnership

• The Clean Energy Partnership was expanded with Memorandums of Understanding (MoUs) focused on:

  • Hydrogen

  • Ammonia

  • Joint Crediting Mechanism

  • These initiatives aim to advance net-zero pathways for both countries.

7. Human Resource Exchange Plan

• A major initiative was launched with a target of 500,000 exchanges over the next five years, including the sending of 50,000 skilled Indian professionals to Japan.

Significance of India-Japan Relations:

Historical & Cultural Ties:

• India and Japan share a deep-rooted cultural connection, dating back to Bodhisena’s consecration of the Great Buddha statue at Todaiji Temple in 752 AD. This symbolizes their historical and spiritual bonds.

• Notable figures like Swami Vivekananda, Rabindranath Tagore, and Netaji Subhash Chandra Bose have played key roles in fostering goodwill between the two nations.

Geopolitical & Geostrategic Dimensions:

• India’s Act East Policy, SAGAR (Security and Growth for All in the Region), and Indo-Pacific Oceans Initiative align with Japan’s Free and Open Indo-Pacific (FOIP), enhancing their shared regional role in maintaining a rules-based international order.

• Both countries are key players in the Quad (Quadrilateral Security Dialogue) and the Supply Chain Resilience Initiative (SCRI), which work towards promoting regional security and economic stability.

Geo-Economic Ties:

1. Comprehensive Economic Partnership Agreement (CEPA)

• Since its establishment in 2011, the CEPA has been a cornerstone of bilateral trade, with tariffs on 94% of traded items removed, leading to trade worth $21.96 billion in 2022–23.

• However, there remains a trade imbalance, with India’s exports standing at $5.46 billion, while imports were much higher at $16.49 billion.

2. Official Development Assistance (ODA) & FDI:

• Japan remains India’s largest ODA donor since 1958, with a contribution of JPY 580 billion (approx. USD 4.5 billion) for 2023–24.

• With a cumulative FDI of $40 billion till 2023, Japan is also India’s 5th-largest FDI source, with major infrastructure projects like the Mumbai–Ahmedabad High-Speed Rail symbolizing growing cooperation.

Defence & Security Cooperation:

• The Joint Declaration on Security Cooperation (2008) and subsequent agreements on equipment transfer, intelligence sharing, and logistics (2020) form the backbone of defence relations.

• Regular military exercises such as Malabar (naval), Veer Guardian (air force), Dharma Guardian (army), and JIMEX (naval) showcase operational synergy.

• Institutions like the 2+2 Ministerial Dialogue ensure sustained dialogue on regional security concerns.

Technological & Sectoral Cooperation:

• The India-Japan Digital Partnership (2018) led to the creation of start-up hubs in Bengaluru, while exploring initiatives like the UPI deployment in Japan.

• Skill-building initiatives have set up numerous Japan-India Institutes of Manufacturing, contributing to talent development aligned with Japanese standards.

• Space cooperation between ISRO and JAXA spans areas like lunar exploration, satellite navigation, and space situational awareness.

People-to-People Exchanges:

• Over 665 academic and research partnerships and student exchanges have been instrumental in strengthening educational cooperation.

• The Samvad Conference (since 2015) has served as a key platform for promoting shared civilizational values like democracy and non-violence.

• The Indian diaspora in Japan (over 40,000 people), especially IT professionals and academics, continues to act as a bridge between the two nations.

Challenges in India-Japan Relations:

1. China Factor in Indo-Pacific:

• Both countries face challenges from China’s assertiveness in the East and South China Seas. While India has been openly critical post-Galwan, Japan’s approach is more restrained due to its economic dependence on China.

2. Supply Chain Vulnerabilities:

• Both countries remain heavily dependent on China for semiconductors and rare earths, making diversification a critical goal.

3. Strategic Balancing:

• Tensions in Quad coordination due to tariff policies and India’s engagement in organizations like BRICS and AIIB present challenges in aligning with Japan’s strong US alliance.

4. Economic Constraints:

• Bilateral trade remains significantly lower compared to India-China trade, which stood at USD 136 billion in 2022, and there are barriers such as language issues and stringent Japanese quality standards that hinder the trade flow.

Way Forward:

1. Diversify Trade & Reduce Imbalance:

   • Strengthen CEPA and diversify India’s exports, particularly in pharmaceuticals, textiles, and agro-processing sectors.

   • Align standards to access Japan’s high-value markets, supporting initiatives like Make in India and Atmanirbhar Bharat Abhiyan.

2. Strengthen Supply Chain Resilience:

   • Focus on deepening cooperation in semiconductors, critical minerals, and clean energy technologies to reduce dependence on China.

   • Encourage joint investments in critical minerals for enhanced strategic autonomy.

3. Accelerate Infrastructure & Defence Projects:

   • Fast-track projects like the Mumbai-Ahmedabad High-Speed Rail and enhance connectivity in Northeast India.

   • Promote joint production and tackle bureaucratic bottlenecks in defence technology transfer.

4. Expand Skill & Mobility Frameworks:

   • Integrate Indian workers into Japan’s Specified Skilled Worker (SSW) scheme to address Japan’s ageing society and India’s demographic dividend.

   • Strengthen migration frameworks and social security coordination.

5. Enhance People-to-People Connect:

   • Promote tourism, language training, and academic exchanges.

   • Deepen cultural diplomacy to complement the synergies between the Free and Open Indo-Pacific (FOIP) and Indo-Pacific Oceans Initiative (IPOI).

Conclusion:

The India-Japan 15th Annual Summit reflects an era of deepened bilateral ties, with a shared commitment to security, economic resilience, and sustainable development. Both nations are poised to enhance cooperation across diverse sectors, from defence to digital innovation, laying a robust foundation for future collaboration in an increasingly uncertain geopolitical landscape

The Startup India initiative, launched in 2016, has significantly reshaped India’s innovation landscape. By facilitating a conducive environment for startups, India has transitioned from a job-seeker economy to a job-creator economy, spurring growth across various sectors, from FinTech to SpaceTech.

Key Contributions of Startup India to India's Innovation Ecosystem:

1. Building the Innovation Stack:

• Digital India, Aadhaar, UPI, and BharatNet have laid the foundation for a robust digital public infrastructure. This has made it easier for startups to enter the market by lowering barriers, enhancing access to services, cutting costs, and creating an inclusive innovation ecosystem.

• Critical infrastructure like UPI has established India as a global leader in digital payments, allowing FinTech startups to flourish.

• BharatNet has expanded connectivity in rural areas, enabling startups in underrepresented regions to thrive.

2. Capital Support for Early-Stage Startups:

• The Fund of Funds for Startups and credit guarantee schemes have provided critical capital to early-stage startups, making financing more accessible and less risky for investors.

• Startups like Fashinza, which streamline supply chains in sectors like fashion, have benefitted from these initiatives.

3. Ease of Doing Business Reforms:

• Startup India has introduced single-window clearances and online systems, greatly reducing bureaucratic red tape, thus enabling quicker and cheaper business setup.

• These reforms have contributed to the creation of an innovation stack, allowing startups to scale quickly and access essential resources without excessive delays or costs.

4. Unicorn Surge:

• By mid-2025, India had 118 unicorns (compared to just 4 in 2014), including Zomato, PhonePe, Razorpay, Ola, Meesho, and Delhivery—companies that have not only solved local challenges but have also successfully expanded globally.

• India has emerged as one of the world's top startup ecosystems, with unicorns spanning diverse sectors.

Diverse Startup Ecosystem in India:

India’s startup ecosystem has become highly diversified, spanning several high-impact sectors:

1. FinTech:

• UPI has positioned India as a global leader in digital payments, with FinTech startups leveraging this infrastructure to offer innovative solutions in payments, lending, and insurance.

2. SpaceTech:

• Thanks to reforms after 2020, private players like Skyroot Aerospace and Agnikul Cosmos have emerged in SpaceTech. India now has more than 300 startups in the space sector, contributing to both innovation and job creation.

3. DefenceTech:

• The iDEX (Innovations for Defence Excellence) initiative has catalyzed DefenceTech startups. More than 600 startups are contributing to the indigenization of defence manufacturing, reducing dependence on imports and boosting the domestic defense sector.

Key Achievements of the Startup India Initiative:

1. Growth in Startups:

• From 500 DPIIT-recognized startups in 2016, the number has surged to 1.59 lakh in 2025, showing the initiative’s success in nurturing India’s startup culture.

2. Job Creation:

• Startups have created over 16.6 lakh direct jobs by 2024, with many more indirect roles. These jobs span across diverse sectors, providing employment opportunities in tech, finance, manufacturing, and more.

3. Women Empowerment:

• The startup ecosystem has seen increasing gender inclusivity, with 73,151 startups having at least one woman director, signifying the growing participation of women in leadership roles.

Challenges Facing India’s Startup Ecosystem:

While the Startup India initiative has catalyzed remarkable growth, there are still several challenges that startups face:

1. Funding Constraints:

• Startups in Tier-II and Tier-III cities struggle with access to funding. Investment in such regions dropped significantly from Rs 2,202 crore in July 2024 to Rs 630 crore in August 2024, showing regional disparities in funding.

2. Regulatory Complexity:

• India's complex regulatory environment poses significant challenges. For instance, debates over app-based cab classification under the Motor Vehicles Act (1988) and compliance under the Digital Personal Data Protection Act (2023) are raising legal hurdles that add administrative burdens on startups.

3. Growth Challenges:

• Around 90% of startups fail within five years due to scaling difficulties, operational inefficiencies, and challenges in market entry.

• Sectors like edtech are facing market saturation, leading to reduced profit margins, unsustainable cash burns, and consolidation risks.

Measures Needed to Strengthen India’s Startup Ecosystem:

To address these challenges and further boost India’s startup ecosystem, the following measures could be considered:

1. Enhanced Tax Benefits:

• Extend tax incentives from 3 to 5 years, especially for deep-tech startups and startups addressing national priorities (e.g., healthcare, energy, defense).

• Drawing inspiration from Israel, which offers 12% corporate tax for tech firms, India can provide a more favorable tax structure for innovation.

2. Boosting Market Access:

• The government should mandate a fixed percentage of procurement to come from startups. This would create guaranteed market opportunities for startups in public procurement, enhancing their growth prospects.

3. Decentralized Startup Ecosystem:

• To reduce the concentration of startups in metro cities, India can focus on developing Tier-II and Tier-III cities as startup hubs.

• A hub-and-spoke model, where major cities support surrounding smaller cities, can be developed, helping smaller towns scale up while benefiting from urban infrastructure and resources.

4. Skill Development:

• Skill India should expand sector-specific programs focused on emerging technologies like AI, blockchain, and IoT. These programs will help create a future-ready workforce for startups, ensuring that the talent pool remains competitive and capable.

Conclusion:

The Startup India initiative has been a game-changer in reshaping India’s innovation ecosystem. From the creation of a thriving unicorn club to fostering innovation in FinTech, SpaceTech, and DefenceTech, it has propelled India towards becoming a global startup leader. However, challenges like funding constraints, regulatory complexities, and market saturation need to be addressed through strategic policy reforms and skill-building initiatives. By continuing to focus on inclusivity, decentralization, and innovation, India can ensure the long-term sustainability and success of its startup ecosystem.

Why in the News?

The Ministry of Tribal Affairs has launched the Adi Karmayogi Abhiyan, a groundbreaking initiative aimed at empowering tribal communities, fostering grassroots leadership, and enhancing governance across tribal areas in India.

About the Adi Karmayogi Abhiyan

The Adi Karmayogi Abhiyan is a leadership program designed to strengthen governance in tribal regions by building local leadership capacities. Its primary objective is to empower tribal communities and ensure inclusive, responsive governance at the grassroots level. Here are the key aspects of the initiative:

Target and Reach:

• Cadre Development: Aims to build a cadre of 20 lakh leaders across over 1 lakh tribal-dominated villages, spanning 30 States/UTs, 550+ districts, and 3,000 blocks.

• Reach: The program is expected to uplift over 10.5 crore tribal citizens across India.

Vision:

The vision of the program is to create a Tribal Seva Path that is driven by the values of Seva (Service), Samarpan (Dedication), and Sankalp (Resolve). The goal is to ensure responsive governance and ensure last-mile service delivery in tribal areas.

Key Objectives:

• Responsive Governance: Ensure governance that is transparent, accountable, and inclusive.

• Bottom-Up Planning: Foster participatory planning and local involvement in decision-making processes.

• Proactive Grievance Redressal: Institutionalize grievance redressal and feedback systems to improve service delivery.

• Last-Mile Delivery: Ensure the convergence of various flagship tribal initiatives to reach all tribal households and provide essential services.

Link to Janjatiya Gaurav Varsh:

The Adi Karmayogi Abhiyan is also a key initiative under the Janjatiya Gaurav Varsh, which runs from 15 November 2024 to 15 November 2025 to commemorate the 150th birthday of Bhagwan Birsa Munda, a tribal leader and freedom fighter.

Key Features of the Scheme

1. Multi-Tiered Leadership Structure:

   • The leadership structure spans from habitation level to state level, ensuring that leadership and governance are rooted in the communities.

2. Multi-Department Convergence:

   • The scheme involves convergence of various departments including:

     • Tribal Welfare

     • Rural Development

     • Women & Child Development

     • Jal Shakti (Water)

     • School Education

     • Forests

3. Implementation Strategy:

   • Governance Learning Workshops: Regional Process Labs (RPLs) will be rolled out across key centres (e.g., Bengaluru, Bhopal, Bhubaneswar, Guwahati, Dehradun, Ranchi) to train leaders.

   • Village Visioning and Development Action Plans: Villages will co-create their Village Vision 2030 and Development Action Plans with government officials and villagers.

   • Mentorship Ecosystem: Retired civil servants, tribal elders, and Padma awardees will act as mentors, guiding and empowering the leaders in the tribal communities.

   • Aadi Karmayogi Digital Platform: A digital platform will be created for ongoing training, data-driven tools, knowledge sharing, and impact dashboards.

Anticipated Benefits and Outcomes

1. Saturation of Government Services:

   • The program aims to ensure 100% coverage of government services such as road connectivity, pucca housing, piped drinking water, household electrification, and Ayushman Bharat insurance enrolment, ensuring no tribal household is left behind.

2. Adi Sewa Kendras:

   • Establishment of 1 lakh Adi Sewa Kendras as One-Stop Service Centres to provide essential services to tribal communities.

3. Tribal Youth Leadership:

   • 100+ Adi Karmayogi Student Chapters will be set up at premier institutions like IITs, NITs, and IIMs to foster leadership among tribal youth.

4. Single Window Responsive Governance Centres:

   • A Single Window Governance Centre will be established in every tribal village to serve as a hub for information dissemination, grievance redressal, and community interaction.

Importance of Developing a Tribal Cadre for Tribal Development

1. Bridging Delivery Gaps:

   • Over the past decade, the Scheduled Tribe welfare budget has grown significantly, but outcomes have been weak due to challenges in effective service delivery. The tribal cadre aims to bridge these gaps by empowering local leadership for better implementation.

2. Combating Poverty:

   • The poverty rate among Scheduled Tribes (STs) is significantly higher compared to the non-tribal population. About 40.6% of STs live below the poverty line, compared to 20.5% of the non-tribal population. The program seeks to reduce poverty through better governance and service delivery.

3. Preserving Tribal Culture:

   • Tribal communities have rich cultural traditions, including languages, art, dance, and festivals, which are at risk due to assimilation pressures. The program aims to preserve these cultural expressions, and initiatives like TRIFED are working to get GI Tagging for tribal products.

4. Harnessing Ecological Wisdom:

   • Tribal communities have traditional practices, such as shifting cultivation, sacred groves, and community forestry, that contribute to climate resilience. The Adi Karmayogi Abhiyan will help harness this ecological wisdom to benefit sustainable development.

5. Democratizing Development:

   • The selection of Adi Karmayogis will be carried out in consultation with Gram Sabhas, ensuring cultural sensitivity and fostering a sense of ownership and trust in the process.

Conclusion

The Adi Karmayogi Abhiyan is a visionary program aimed at transforming the governance and development landscape for tribal communities. By creating a dedicated tribal leadership cadre, it seeks to bridge service delivery gaps, reduce poverty, and empower Gram Sabhas, all while preserving the cultural and ecological wisdom of tribal communities. This initiative represents a significant step in inclusive development and nation-building by ensuring that the tribal population is not left behind in India's growth trajectory.

The Kakori Train Action, which took place on August 9, 1925, marks one of the most iconic acts of resistance against British rule in India. It was a daring revolutionary act orchestrated by the Hindustan Republican Association (HRA), aimed at striking a blow at the British colonial system. The action involved the seizing of a train carrying government treasury funds from Shahjahanpur to Lucknow at the Kakori station, near Lucknow, Uttar Pradesh.

Key Features of the Kakori Train Action:

1. The Planning & Execution:

   • The Hindustan Republican Association (HRA), a revolutionary group, orchestrated the action to seize British treasury funds.

   • The 8-down train carrying treasury funds was stopped by the revolutionaries near Kakori, who aimed to secure the funds to further their activities against the British.

2. Prominent Leaders Involved:

   • Ram Prasad Bismil, Ashfaqullah Khan, Chandrashekhar Azad, Thakur Roshan Singh, and Rajendra Lahiri were key figures in the planning and execution of the mission.

   • Among them, Chandrashekhar Azad would go on to play a crucial role in subsequent revolutionary activities across India until his death in 1931.

Aftermath and British Reaction:

• Manhunt & Arrests:

  • Following the Kakori Train Action, the British launched a massive manhunt, arresting over two dozen individuals within a month.

  • A total of 40+ individuals, including sympathizers, were accused, leading to widespread crackdowns on revolutionaries.

• Kakori Conspiracy Case:

  • The British authorities charged 28 HRA members with robbery, conspiracy, manslaughter, and waging war against the Crown.

  • The severity of the case was heightened by the fact that it was a direct challenge to the colonial authorities.

• Death Sentences:

  • Ram Prasad Bismil, Ashfaqullah Khan, Rajendra Lahiri, and Thakur Roshan Singh were sentenced to death by hanging.

  • This event sparked widespread outrage and support for the revolutionary cause across the country.

• Prisoner Protests:

  • As many of the revolutionaries were transferred to different jails, they engaged in hunger strikes to protest against their poor jail conditions and demand political prisoner status.

Impact on India’s Independence Movement:

1. Inspiration for Future Revolutionaries:

   • The sacrifice and courage of the Kakori revolutionaries inspired a new generation of revolutionaries, including Bhagat Singh, Sukhdev, and Rajguru.

   • The action embodied the spirit of defiance and was an example of armed struggle against colonialism.

2. Symbol of National Unity:

   • The incident illustrated the unity among revolutionaries from diverse backgrounds, religious and regional, as demonstrated by the collaboration between Ram Prasad Bismil (a Hindu) and Ashfaqullah Khan (a Muslim), symbolizing the secular nature of the Indian freedom struggle.

3. Public Awareness & Solidarity:

   • The high-profile trial and subsequent executions attracted national attention and played a crucial role in galvanizing public opinion against British colonial rule.

   • The public outrage over the harshness of the British legal system contributed to a growing sense of urgency for Indian independence.

4. Shift Toward Direct Action:

   • The Kakori action marked a significant shift in the Indian freedom struggle towards direct action. It was a clear departure from the purely non-violent protests championed by leaders like Mahatma Gandhi, showing that revolutionary movements could also be effective in challenging British authority.

5. Revolutionary Legacy:

   • The Kakori Train Action demonstrated the bravery and ingenuity of the revolutionaries. It embodied the spirit of sacrifice and resilience that would define the struggle for Indian independence in the years to come.

   • This event inspired several subsequent revolutionary organizations, including the Hindustan Socialist Republican Association (HSRA).

Hindustan Republican Association (HRA) and HSRA:

• Hindustan Republican Association (HRA):

  • Founded in 1924, the HRA was a key revolutionary group that sought to establish a federal republic of India.

  • It criticized Mahatma Gandhi's non-violent methods and advocated for armed revolution to overthrow British rule.

  • The HRA produced a Yellow Paper and published a manifesto urging the youth to join the armed struggle for independence.

• Hindustan Socialist Republican Association (HSRA):

  • The HSRA was formed in 1928, emerging from the HRA after the group’s ideology shifted towards socialism and Marxism.

  • Key leaders of the HSRA included Chandrashekhar Azad, Bhagat Singh, Sukhdev, and Rajguru, who became instrumental in the struggle for independence.

  • The HSRA adopted socialist principles and continued the fight for Indian independence, focusing on the use of revolutionary violence.

Conclusion:

The Kakori Train Action is a defining event in the history of India’s freedom movement. It not only challenged British colonial rule but also demonstrated the growing resolve and unity of the Indian revolutionaries in their fight for self-determination. The sacrifices made by the Kakori martyrs inspired future generations and played a crucial role in shaping the trajectory of India's armed struggle for independence. The event marked the emergence of direct action as a parallel force alongside nonviolent resistance, eventually leading to the creation of revolutionary organizations like the HSRA that played a significant role in the final years of British colonial rule in India