Export-led Growth Promoted at Conclave
Subject: Economic and Social Development
Topic: Trade and Export Growth

The article discusses a significant event, the Exim Bank's Trade Conclave held on June 24, 2025, where Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, outlined key policy measures aimed at promoting export-led growth in India. The confluence highlighted several initiatives and performance metrics to strengthen the country's positioning in global trade amidst ongoing uncertainties.

Key Highlights:

  • Event Overview: The Trade Conclave 2025, organized by the Export Import Bank of India (Exim Bank), emphasized building export-led growth towards Viksit Bharat (Developed India).

  • Export Performance: Despite global economic challenges, Indian exports have shown resilience and strong performance, which Smt. Sitharaman acknowledged.

  • Trade Assistance Programme (TAP):

    • Introduced in 2022, TAP facilitates Indian exporters' access to high-risk international markets by addressing financing gaps.
    • Exim Bank has partnered with over 100 overseas banks, facilitating 1,100 export transactions in 51 countries.
  • MSME Support Initiatives: Specific measures to empower Micro, Small, and Medium Enterprises (MSMEs) include:

    • Revision of the MSME definition and Udyam registration for easier compliance.
    • Revamping the Credit Guarantee Schemes.
    • TReDS platforms for smooth receivables financing.
    • Exim Bank’s Ubharte Sitaare Programme aimed at supporting high-potential SMEs.
  • Infrastructure Investments: Enhanced investments in transport and logistics sectors are being made to improve supply chain efficiency, thus augmenting global competitiveness.

  • Trade Finance Enhancements:

    • Platforms like ITFS are being enhanced to facilitate better access to trade finance.
    • Exim Finserve, situated in GIFT City, offers export factoring services.
  • Localized Export Strategies: Initiatives like Districts as Export Hubs support localized trade by enabling exporters to operate directly from their districts rather than solely within Special Economic Zones (SEZs).

  • Free Trade Agreements (FTAs): India is pursuing FTAs with multiple regions, with ongoing discussions close to finalization with the European Union and the USA.

  • Production-Linked Incentive Scheme: Exports facilitated through this scheme have surpassed ₹5.3 lakh crore, showcasing a significant impact on boosting competitiveness in various sectors.

  • Institutional Developments:

    • Smt. Nirmala Sitharaman inaugurated new Exim Bank offices in Lucknow, Indore, and São Paulo, Brazil, to bolster support to exporters and entry into new markets.
    • Exim Bank's initiatives have been pivotal for enhancing companies' export capacity.
  • Knowledge Sharing: The event featured the release of relevant publications on critical minerals, the defense equipment industry, and textile trade dynamics to bolster strategy insights for improving export competitiveness.

  • Participation: The conclave attracted over 200 participants, including industry representatives, financial institution leaders, exporters, and academic partners, indicating a collaborative approach towards enhancing India's export strategies.

The initiatives encapsulated during the Trade Conclave align with the broader government aims for economic growth and fortifying India's position in the global market, particularly in the face of evolving international trade challenges.

Bullet Points:

  • Smt. Nirmala Sitharaman highlighted the Trade Conclave on June 24, 2025, promoting export-led growth.
  • Indian exports displayed strong performance amid global uncertainties.
  • The Trade Assistance Programme (TAP) facilitates access for exporters to high-risk markets.
  • Over 100 international bank partnerships established under TAP.
  • Support measures for MSMEs include revised definitions, Udyam registration, and financial schemes.
  • Investments in transport and logistics enhance supply chain efficiency.
  • Localized initiatives like Districts as Export Hubs enable localized operations.
  • Ongoing FTAs negotiations with the EU and USA.
  • Production-Linked Incentive Scheme has catalyzed exports exceeding ₹5.3 lakh crore.
  • New Exim Bank offices inaugurated to support exporter services.
  • Publications released on critical sectors to strategize export competitiveness.
  • The conclave saw participation from 200 stakeholders in the industry.
Key Terms, Keywords and Fact Used in the Article:
  • Exim Bank - Facilitator of export financing
  • Ubharte Sitaare Programme - Supporting SMEs in exports
  • Trade Assistance Programme (TAP) - Trade facilitation initiative
  • European Union - Potential FTA partner
  • USA - Potential FTA partner
  • Production-linked incentive scheme - Boosting exports
  • IIT Kanpur - Partner for technical support
  • GIFT City - Location for Exim Finserve
  • Export-led Growth Promoted at Conclave
    Export-led Growth Promoted at Conclave
    Subject: Economic and Social Development
    Topic: Trade and Export Growth

    The article discusses a significant event, the Exim Bank's Trade Conclave held on June 24, 2025, where Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, outlined key policy measures aimed at promoting export-led growth in India. The confluence highlighted several initiatives and performance metrics to strengthen the country's positioning in global trade amidst ongoing uncertainties.

    Key Highlights:

    • Event Overview: The Trade Conclave 2025, organized by the Export Import Bank of India (Exim Bank), emphasized building export-led growth towards Viksit Bharat (Developed India).

    • Export Performance: Despite global economic challenges, Indian exports have shown resilience and strong performance, which Smt. Sitharaman acknowledged.

    • Trade Assistance Programme (TAP):

      • Introduced in 2022, TAP facilitates Indian exporters' access to high-risk international markets by addressing financing gaps.
      • Exim Bank has partnered with over 100 overseas banks, facilitating 1,100 export transactions in 51 countries.
    • MSME Support Initiatives: Specific measures to empower Micro, Small, and Medium Enterprises (MSMEs) include:

      • Revision of the MSME definition and Udyam registration for easier compliance.
      • Revamping the Credit Guarantee Schemes.
      • TReDS platforms for smooth receivables financing.
      • Exim Bank’s Ubharte Sitaare Programme aimed at supporting high-potential SMEs.
    • Infrastructure Investments: Enhanced investments in transport and logistics sectors are being made to improve supply chain efficiency, thus augmenting global competitiveness.

    • Trade Finance Enhancements:

      • Platforms like ITFS are being enhanced to facilitate better access to trade finance.
      • Exim Finserve, situated in GIFT City, offers export factoring services.
    • Localized Export Strategies: Initiatives like Districts as Export Hubs support localized trade by enabling exporters to operate directly from their districts rather than solely within Special Economic Zones (SEZs).

    • Free Trade Agreements (FTAs): India is pursuing FTAs with multiple regions, with ongoing discussions close to finalization with the European Union and the USA.

    • Production-Linked Incentive Scheme: Exports facilitated through this scheme have surpassed ₹5.3 lakh crore, showcasing a significant impact on boosting competitiveness in various sectors.

    • Institutional Developments:

      • Smt. Nirmala Sitharaman inaugurated new Exim Bank offices in Lucknow, Indore, and São Paulo, Brazil, to bolster support to exporters and entry into new markets.
      • Exim Bank's initiatives have been pivotal for enhancing companies' export capacity.
    • Knowledge Sharing: The event featured the release of relevant publications on critical minerals, the defense equipment industry, and textile trade dynamics to bolster strategy insights for improving export competitiveness.

    • Participation: The conclave attracted over 200 participants, including industry representatives, financial institution leaders, exporters, and academic partners, indicating a collaborative approach towards enhancing India's export strategies.

    The initiatives encapsulated during the Trade Conclave align with the broader government aims for economic growth and fortifying India's position in the global market, particularly in the face of evolving international trade challenges.

    Bullet Points:

    • Smt. Nirmala Sitharaman highlighted the Trade Conclave on June 24, 2025, promoting export-led growth.
    • Indian exports displayed strong performance amid global uncertainties.
    • The Trade Assistance Programme (TAP) facilitates access for exporters to high-risk markets.
    • Over 100 international bank partnerships established under TAP.
    • Support measures for MSMEs include revised definitions, Udyam registration, and financial schemes.
    • Investments in transport and logistics enhance supply chain efficiency.
    • Localized initiatives like Districts as Export Hubs enable localized operations.
    • Ongoing FTAs negotiations with the EU and USA.
    • Production-Linked Incentive Scheme has catalyzed exports exceeding ₹5.3 lakh crore.
    • New Exim Bank offices inaugurated to support exporter services.
    • Publications released on critical sectors to strategize export competitiveness.
    • The conclave saw participation from 200 stakeholders in the industry.
    Share this article:
    img

    Quality Issues in Global Chemotherapy Drugs

    The Bureau of Investigative Journalism (TBIJ) has unveiled alarming revelations regarding the quality of vital chemotherapy drugs used globally, endangering cancer patients across more than 100 countries. The affected medications, essential for treating common cancers such as breast and ovarian cancer, have failed quality tests, leading pharmacists to assert that administering these drugs may be tantamount to providing no treatment at all.

    Key Findings:

    • Quality Control Failures: Significant discrepancies in the active ingredient levels of chemotherapy drugs were identified. Some drugs did not contain sufficient active ingredients, while others contained dangerously high amounts, putting patients at risk of severe side effects or fatality.
    • Global Impact: Cancer is a major health concern globally, causing nearly 10 million deaths annually, particularly escalating in low- and middle-income countries. Over the last three decades, cancer incidence in sub-Saharan Africa has reportedly doubled.

    Drug Background:

    • The drugs in question are generic versions of well-established chemotherapy agents, created once original patents expire. They are more affordable but crucially dependent on strict quality control, especially in low-resource settings where they are widely prescribed.

    Study Insights:

    • A thorough study conducted by researchers from the University of Notre Dame examined 189 samples of chemotherapy drugs in Cameroon, Ethiopia, Kenya, and Malawi. Approximately 20% of these samples failed quality standards, including those from 17 manufacturers.
    • The drugs assessed included major agents like cisplatin and doxorubicin, all classified as essential by the World Health Organization (WHO).

    Specific Issues:

    • The Indian manufacturer Venus Remedies' cyclophosphamide was notably highlighted, failing all samples tested. The study, however, faced claims by the manufacturer regarding the scientific validity of the findings, asserting adherence to quality control protocols.
    • Disturbingly, a similar pattern of ineffective treatment responses was reported by oncologists, leading to treatment failures and dire consequences for patients, highlighting gaps in quality assurance culturally and globally.

    Regulatory Challenges:

    • Countries vary significantly in their drug regulation systems, with approximately 70% lacking robust methods to ensure quality. The FDA in the USA has emphasized its struggle with maintaining effective inspections overseas, particularly in India and China.
    • Nepal, identified as a significant importer of these failing drugs, has a troubling record of inadequate drug testing, limiting the scrutiny of chemotherapy medications despite having a plethora of medications in the market.

    Socioeconomic Implications:

    • The consequences of ineffective cancer treatments in economically disadvantaged regions are dire, with many patients bearing the financial burden of acquiring potentially faulty drugs. There are reported instances where families spend substantial amounts on cancer treatments without assurance of efficacy.

    WHO Standards & Recommendations:

    • The WHO's initiatives provide frameworks for drug quality assurance. However, criticisms arose regarding its slow response to including more cancer medications in its essential medicines list and the perceived ineffectiveness of existing regulations to prevent substandard drugs from entering the supply chain.

    Conclusion:

    The investigative findings raise serious concerns about the integrity of the global pharmaceutical supply chain for cancer treatment. Despite efforts by numerous global health organizations, the interplay of economic factors and regulatory inefficiencies continues to threaten patient safety, particularly in vulnerable populations. Robust international oversight, heightened regulatory standards, and an expansion of essential medicines recognized by WHO are urgently needed to address these widespread discrepancies.

    Important Points:

    • Chemotherapy Drug Failures: Vital drugs' quality discrepancies endanger patients' lives globally.
    • Growing Cancer Crisis: Escalating cancer rates, especially in low-income regions.
    • Study Findings: One-fifth of tested drugs failed quality checks.
    • Venus Remedies Controversy: Major manufacturer disputes study results.
    • Regulatory Ineffectiveness: Global regulatory standards vary, with many countries lacking proper mechanisms.
    • Socioeconomic Burden: Patients in low-income settings face significant financial and health risks.
    • WHO's Role: Calls for expansion of essential medicines list to address cancer treatments before their efficacy is flawed.

    Health

    img

    EPFO Increases Auto Settlement Limit

    The Employees’ Provident Fund Organisation (EPFO) has announced a significant increase in the limit for the auto settlement of claims from Rs 1 lakh to Rs 5 lakh, as stated by the Minister for Labour and Employment, Mansukh Mandaviya. This new limit allows over 7.4 crore EPFO subscribers to withdraw funds up to Rs 5 lakh for various purposes such as education, illness, marriage, and housing without requiring further intervention, streamlining the claim process.

    Key Highlights:

    • Increase in Auto Settlement Limit:

      • The limit for auto settlement of EPFO claims has increased from Rs 1 lakh to Rs 5 lakh.
    • Eligible Subscribers:

      • Over 7.4 crore subscribers can now avail themselves of this enhanced facility.
    • Claim Processing Time:

      • Auto claims will be cleared within three days, maintaining efficiency in the process.
    • Automation Focus:

      • The Minister emphasized the EPFO's commitment to automation and efficient service delivery to members.
    • Historical Context of Auto-Claim Settlement:

      • The auto-claim settlement mechanism was initiated in April 2020 during the Covid-19 pandemic to assist in processing advances for illnesses.
      • The program expanded over time to include claims for education, marriage, and housing.
    • Previous Limits and Adjustments:

      • In May 2024, the ceiling for auto-mode settlement of advance claims for these categories was raised from Rs 50,000 to Rs 1 lakh.
    • Increase in Claims Processed:

      • For the financial year 2024-25, EPFO processed approximately 2.34 crore advance claims via auto-settlement, representing a 161% increase from the 89.52 lakh claims processed in the financial year 2023-24.
      • Approximately 59% of all advance claims during FY 2024-25 were settled through auto mode, compared to 31% in FY 2023-24.
    • Current Financial Performance:

      • In the initial 2.5 months of the financial year 2025-26, EPFO has auto-settled 76.52 lakh claims, which accounts for 70% of all advance claims settled so far.

    This enhancement to the auto settlement facility is indicative of the government’s broader efforts to improve access to funds for Indian workers, while also aiming to strengthen the infrastructures of social security and retirement benefits.

    Summary of Important Sentences:

    • EPFO has increased the auto settlement limit for claims from Rs 1 lakh to Rs 5 lakh.
    • More than 7.4 crore EPFO subscribers are eligible for the new auto claim facility.
    • Claims will be processed within three days without requiring further intervention.
    • The auto-claim settlement process was first introduced in April 2020 during the Covid-19 pandemic.
    • There has been a 161% increase in auto-settled claims in FY 2024-25 as compared to FY 2023-24.
    • The auto-settlement accounted for 59% of all advance claims in FY 2024-25.
    • So far in FY 2025-26, 70% of claims have been auto-settled, demonstrating increased efficiency.

    Economic and Social Development

    img

    EPFO Increases Auto Settlement Limit

    The Employees’ Provident Fund Organisation (EPFO) has made a significant update to its auto-settlement claim process, increasing the limit from Rs 1 lakh to Rs 5 lakh. This expansion allows over 7.4 crore subscribers to withdraw their funds seamlessly for various essential purposes such as education, illness, marriage, and housing without requiring further intervention.

    Key Highlights:

    • New Auto-Settlement Limit: The auto settlement limit has been raised to Rs 5 lakh, effective from Tuesday, as announced by the Labour and Employment Minister Mansukh Mandaviya.
    • Efficiency and Speed: Claims processed under this auto-settlement system will continue to be cleared within three days, maintaining the efficiency of service.
    • Historical Context: The auto-claim settlement process was first introduced in April 2020 amid the Covid-19 pandemic and initially targeted claims related to illness. Over time, the categories expanded to include education, marriage, and housing.
    • Previous Increases: In May 2024, the EPFO had previously increased the ceiling for auto-settlement of advance claims for education, marriage, and housing from Rs 50,000 to Rs 1 lakh.
    • Growing Usage: In the financial year 2024-25, EPFO recorded a significant surge in auto-settled claims, processing 2.34 crore advance claims—reflecting a 161% increase from the 89.52 lakh claims processed in the previous fiscal year.
    • Proportion of Auto-Settled Claims: About 59% of all advance claims in 2024-25 were processed through the auto mode compared to 31% in 2023-24.
    • Current Trends: Within the first 2.5 months of the ongoing financial year 2025-26, EPFO auto-settled 76.52 lakh claims, accounting for 70% of all advance claims settled so far.

    This enhancement in the claim settlement limit signifies EPFO’s commitment to automating processes and improving service delivery to its members. The increased efficiency and quicker settlement times are particularly crucial for members seeking timely financial support for significant life events.

    In conclusion, these developments within the EPFO reflect ongoing efforts to streamline processes and enhance member services, thereby reinforcing the organisation's role in the social security framework of the country.

    Economic and Social Development

    img

    India's Urban Transformation and Gender Equity

    India is undergoing significant urban transformation, with projections indicating that by 2050, over 800 million people—approximately half the nation's population—will reside in cities. This urban expansion will position India as a central player in global urbanization trends, necessitating a reevaluation of its social contract and the dynamics of democracy and development.

    Key Constitutional Provisions:

    • The 73rd and 74th Amendments to the Constitution of India mandate a reservation of at least 33% for women in Panchayati Raj Institutions (PRIs) and Urban Local Governments (ULGs).
    • Seventeen states and one Union Territory have increased this reservation to 50%.

    Current Representation & Challenges:

    • Women now account for over 46% of local elected representatives as of 2024. However, their representation in bureaucratic structures remains disproportionately low, particularly in urban administrative roles.
    • In 2022, women constituted only 20% of the Indian Administrative Service, with even lower numbers in urban planning and engineering. Women in policing represent a meager 11.7%, often relegated to less impactful roles.
    • The underrepresentation of women in governance negatively impacts urban planning and decision-making, notably in addressing issues pertinent to women’s safety and mobility.

    Gender-sensitive Urban Planning:

    • Studies show that women in cities have unique transportation needs, relying heavily on public transit for multi-stop journeys, unlike their male counterparts.
    • Urban infrastructure planning currently emphasizes large-scale projects over essential neighborhood-level facilities, leading to unsafe public spaces. A 2019 survey indicated that over 60% of public areas in 50 cities lacked sufficient lighting.
    • Women officials typically prioritize critical matters such as public safety, healthcare, and accessible water, helping to cultivate trust in public agencies. Thus, gender-diverse leadership is vital for effective responses to urban needs.

    Gender-responsive Budgeting (GRB):

    • GRB is a fiscal strategy aimed at integrating the gender perspective into public finance. Though India adopted the Gender Budget Statement in 2005-06, effective implementation remains limited, particularly at the local level.
    • Progressive examples include Delhi's funding of women-only transport and Tamil Nadu's application of GRB across administrative departments.
    • Many ULGs view GRB as a formality, often neglecting the practical concerns like pedestrian safety and childcare.
    • Conversely, countries like the Philippines, Rwanda, and South Africa have successfully incorporated robust gender budgeting protocols that effectively address women's needs in urban policy.

    Recommendations for Inclusive Urban Governance:

    • There is a critical need to go beyond political quotas to enhance women's representation across all bureaucratic and technical roles in urban governance.
    • Systemic reforms including affirmative action, scholarships, and targeted recruitment strategies are needed to dismantle existing barriers.
    • Global precedents illustrate that gender-balanced governance leads to substantive public health and safety improvements.
    • For India to evolve into a $5 trillion economy, its cities must prioritize inclusivity and equity alongside economic growth, necessitating mandatory audits and participatory budgeting.

    Conclusion: To ensure that urban governance reflects women’s experiences and needs, it is essential that women not only participate in leadership roles but also influence urban planning and management. Building truly inclusive cities entails a collaborative effort to foster women's active engagement in creating urban environments that benefit the entire population.

    Important Points:

    • By 2050, 800 million people in India are expected to live in cities.
    • Women currently make up over 46% of local elected representatives.
    • Bureaucratic roles, particularly in urban planning and policing, remain male-dominated.
    • 84% of women in Delhi and Mumbai rely on public/shared transport.
    • GRB, introduced in India in 2005-06, is underutilized in urban governance.
    • Successful global practices in gender budgeting showcase the necessity for representation.
    • Affirmative action and systemic reforms are vital for building gender-balanced urban governance.

    Economic and Social Development

    img

    Air India Dreamliner Crash Compensation Overview

    The tragic crash of Air India’s Boeing 787-8 Dreamliner in Ahmedabad on June 12 has prompted significant scrutiny regarding the available compensation for the victims' families. Several key points pertaining to compensation frameworks and insurance claims have surfaced, reflecting the complexities involved in such tragic events.

    Key Points of Compensation:

    • Airline's Mandatory Compensation: Air India is mandated to provide compensation through its insurance coverage for the families of the deceased.
    • Tata Group's Ex-Gratia Payment: The Tata Group announced an ex-gratia payment of Rs 1 crore (approximately $120,000) to the next of kin of each victim.
    • Estimated Claims: Total claims from the crash are expected to be around Rs 4,000 crore (about $470 million), positioning it among the largest aviation insurance claims in history.
    • Hull and Engine Costs: The loss of the aircraft is estimated to cost insurance companies around $80 million for the hull and $45 million for the engine.

    Compensation Process:

    • Montreal Convention: Under the Montreal Convention treaty, which India ratified in 2009, victims' families are entitled to a minimum compensation of Rs 1.50 crore per victim. This convention governs aviation liability and ensures fair compensation for passengers.
    • Calculation of Claims: Compensation amounts will be calculated using Special Drawing Rights (SDRs) from the International Monetary Fund, with current rates estimated at 128,821 SDRs (approximately $1.33 each) as of October 2024.
    • Jurisdiction for Claims: Families can file claims in jurisdictions favorable to them, such as Air India's domicile, ticket purchasing location, or victims' place of residence. Variations in payout may arise based on local laws and the specifics of the cases.

    Types of Insurance Coverage:

    1. Life Insurance: If passengers held life insurance policies, their families could claim benefits from those policies. Companies, including LIC and ICICI Prudential, are expediting claims for the crash victims.
    2. Travel Insurance: Those with travel insurance policies can claim compensation for accidental death. Benefits may include reimbursement for expenses for delays or cancellations linked to the crash.
    3. Debit Card Insurance: Eligible debit cardholders may receive insurance benefits if they held personal accident coverage tied to their cards. The coverage can depend on the card's category and specific usage conditions.

    Additional Context:

    • Ground Victims: Families of individuals who died or were injured on the ground during the aircraft's crash will also receive compensation from Tata Group.
    • Affected Demographics: The crash affected various individuals, including doctors, students, hospital staff, and residents near the airport.

    Implications:

    The comprehensive nature of compensation avenues indicates the multi-faceted approach necessary in dealing with the aftermath of such catastrophic events. The intricate web of insurance policies, international treaties, and corporate responsibilities underscores the legal and financial obligations in aviation disasters.

    In summary, the Air India Dreamliner crash highlights the mechanisms through which victims' families may seek justice and financial aid, emphasizing the intersection of aviation law, insurance practices, and corporate duty. The unfolding claims will serve as a significant case study in international aviation safety and compensation protocols.

    Important Sentences:

    • Air India must provide mandatory compensation under its insurance coverage in light of the crash.
    • Tata Group is offering Rs 1 crore to the next of kin of each victim.
    • Total claims from the Air India crash could amount to approximately $470 million.
    • The hull and engine loss is estimated at $125 million from insurance companies.
    • Under the Montreal Convention, minimum compensation is set at Rs 1.50 crore per victim.
    • Families can claim in favorable jurisdictions which may affect payout amounts.
    • Life, travel, and debit card insurances provide additional compensation avenues for affected families.
    • The accident's repercussions extend to impacted ground victims as well, enhancing the scope of corporate responsibility and insurance claims.

    Economic and Social Development

    img

    South Asia's Economic and Security Challenges

    Summary of Economic and Security Landscape in South Asia

    In early 2025, two significant incidents that impacted India's economic and national security emerged: the reciprocal tariffs enforced by the Trump administration and a terror attack in Pahalgam. Although these incidents may appear unrelated, they underscore the critical connection between economic stability and national security in the South Asian context.

    Key Points:

    • Interlinked Nature of Economics and Security:

      • Economic instability exacerbates insecurity, while security threats impede trade and investment.
      • Nations cannot achieve lasting security without simultaneous economic prosperity.
    • Underintegration of South Asia:

      • South Asia ranks as one of the least economically integrated regions globally, with intraregional trade under the South Asian Free Trade Area (SAFTA) constituting only 5%-7% of total international trade.
      • This is in stark contrast to higher rates in regions like the European Union (EU) (approximately 45%), ASEAN (22%), and NAFTA (25%).
    • Trade Potential:

      • Current trade among SAARC countries totals just $23 billion, significantly below an estimated potential of $67 billion and the $172 billion projected by a UNESCAP study by 2020.
      • Despite the optimism, it is evident that over 86% of trade potential remains unrealized across South Asia.
      • South Asia, representing 25% of the world's population, has a combined GDP of about $5 trillion, far less than other regions (EU - $18 trillion; NAFTA - $24.8 trillion).
    • Trade Declines:

      • Bilateral trade between India and Pakistan has severely decreased, from $2.41 billion in 2018 to $1.2 billion by 2024, with Pakistan's exports to India plummeting from $547.5 million in 2019 to $480,000 in 2024.
    • Economic Indicators:

      • The trade-to-GDP ratio in South Asia reduced from 47.30% in 2022 to 42.94% in 2024, indicating diminished economic engagement.
      • The World Bank projects a growth forecast of 5.8% for 2025, down from 6% in 2024.
      • The trade deficit in the region widened significantly from $204.1 billion in 2015 to $339 billion in 2022, despite rising overall trade volumes to $1,335 billion.
    • Challenges in Trade Mechanism:

      • Inefficiencies in trade and governance and a politically unfavorable climate have led to high transaction costs in intraregional trade, inhibiting competition.
      • The cost of trading within South Asia is 114% of export value, while it is only 109% for trade with the U.S. Despite greater distances, trade with distant partners is less costly than with neighboring countries.
    • Comparison with ASEAN:

      • Intraregional trade costs in ASEAN are about 40% lower than those in South Asia, fostering regional interdependence while South Asian trade remains constrained.
    • Need for Regional Cooperation:

      • Existing agreements like SAFTA have potential but are undermined by distrust, ongoing regional conflicts, and political diversity.
      • Over two-thirds of the capacity for trade in goods and services and investments remains untapped, warranting a comprehensive approach to reduce trade barriers and foster cooperation.

    In conclusion, to realize the South Asian region's full economic potential, member countries must prioritize strengthening intra-regional trade and collaborative efforts, placing aside bilateral disputes and fostering a conducive environment for economic interdependence.

    Economic and Social Development

    img

    India's Medical Students Abroad Trends

    The Iran-Israel conflict has highlighted the situation of Indian students, particularly medical students, studying abroad, especially in Iran. The Ministry of External Affairs (MEA) estimates that in 2022, around 2,050 Indian students were enrolled in Iranian medical institutions, predominantly from Kashmir. The urgency for evacuating these students due to geopolitical tensions recalls a similar scenario during the Russia-Ukraine war in 2022 when the Indian government conducted ‘Operation Ganga’ to bring students home.

    Key Points:

    • Rising Trend of Medical Education Abroad: Despite an increase in medical seats in India—from about 51,000 MBBS seats in 2014 to approximately 118,000 in 2024—many students still opt to study medicine overseas.

    • FMGE Statistics: The number of candidates appearing for the Foreign Medical Graduate Examination (FMGE), essential for practicing in India after studying abroad, reflects this trend, increasing from over 52,000 in 2022 to about 79,000 in 2024. This indicates a growing reliance on foreign medical education.

    • Teeth of Competition and Inflation: The intense competition for limited seats in Indian medical colleges, with 22.7 lakh candidates vying for more than 1 lakh MBBS seats (with only about half in government institutions), drives many towards pursuing medical degrees abroad. The cost of private colleges often becomes unaffordable for many families.

    • Iran's Special Appeal for Kashmiri Students: Cultural and historical ties between Kashmir and Iran explain the preference of many Kashmiri students for medical studies in Iran, alongside issues of affordability. Iranian educational institutions offer easier admission pathways and concessions for Kashmiri students due to religious and cultural connections.

    • Concerns Over Medical Education Abroad: Critics warn about the lack of stringent eligibility requirements in foreign medical schools which can enroll students primarily based on their ability to pay. The National Medical Commission (NMC) emphasizes the necessity for Indian students to study at recognized institutions, and mandates that medical courses overseas be at least 54 months long, accompanied by a one-year internship.

    • Challenges After Graduation: Even with a degree from abroad, Indian graduates face hurdles, including recognition issues concerning course duration and low pass rates on the FMGE, which have historically been around 25.8% in 2024. Issues regarding inadequate practical training and limited patient exposure further complicate their prospects.

    • Recommendations for Regulatory Clarity: Experts, including Dr. Pawanindra Lal, have suggested the need for better transparency and a potential list of accredited foreign medical schools to assist students in making informed educational choices.

    In conclusion, the trend of Indian students pursuing medical education abroad, particularly in Iran, poses both opportunities and challenges. Cultural connections influence many decisions, while systemic issues in India’s educational framework and subsequent professional pathways highlight the complexities faced by these students.

    Important Sentences:

    • The Iran-Israel conflict has increased focus on Indian students, especially medical students, studying abroad.
    • In 2022, there were approximately 2,050 Indian medical students in Iran, predominantly from Kashmir.
    • The number of candidates for the FMGE rose to about 79,000 in 2024 reflecting the growing trend of studying abroad.
    • Intense competition for limited seats in Indian medical colleges drives students towards foreign education.
    • Cultural and historical ties make Iran appealing for Kashmiri students.
    • The NMC stipulates that overseas medical degrees must be recognized in the host country to practice in India.
    • Graduates from foreign medical schools face challenges in course recognition and low FMGE pass rates.

    Economic and Social Development

    img

    Iran's Potential Actions on Hormuz

    The news article discusses the implications of Iran's Parliament approving the potential closure of the Strait of Hormuz, a vital global shipping lane, especially for oil transportation. This decision follows increased tensions after the United States conducted strikes on Iranian military sites. The final decision regarding the closure is pending from Iran's Supreme National Security Council.

    Key Highlights:

    • Iran's Position: Iran's foreign minister has stated that the country has various options available in response to US actions, including potentially blocking the Strait of Hormuz, despite previous beliefs that this would not be pursued.
    • US Response: US Secretary of State Marco Rubio urged China to influence Iran against closing the Strait, emphasizing the severe economic repercussions such an action would entail, particularly for oil-dependent economies.
    • Importance of the Strait of Hormuz:
      • Connects the Persian Gulf and the Gulf of Oman, playing a crucial role in global oil transport.
      • Responsible for over 25% of total global seaborne oil trade and a substantial portion of liquefied natural gas (LNG) trade as of 2024.
      • The strait is narrow (33 km at its narrowest point), making it susceptible to blockades.
    • Impacts on Global Trade: Disruptions in the Strait of Hormuz would have significant implications for oil prices globally, affecting numerous economies. Alternatives exist, but they are less feasible; pipelines to the Red Sea or Gulf of Oman could mitigate some issues but do not replace the strategic importance of the strait.
    • Iran's Historical Context: Historically, Iran has not blocked the Strait, even during the Iran-Iraq war, as it would harm its own trade and relationships in the region. However, Iran's increasing military engagements and the presence of the US 5th Fleet in Bahrain have shifted the balance of deterrence.
    • India's Economic Considerations:
      • Approximately 84% of India's crude oil and 83% of its LNG passes through the Strait of Hormuz.
      • A disruption could influence oil prices, even though India sources oil from other nations like Russia and the US.
      • India's oil imports, significantly reliant on the strait, could lead to price volatility and uncertainty in the energy market.

    Conclusion:

    The potential closure of the Strait of Hormuz represents a critical geopolitical and economic flashpoint that could have far-reaching consequences on global oil trade, price stability, and regional diplomacy. Stakeholders globally, particularly in Asia, look to navigate this complex situation with keen attention to Iran's next moves and international reactions.

    Bullet Points:

    • Iran's Parliament approved the potential closure of the Strait of Hormuz due to escalating US-Iran tensions.
    • Final decision rests with Iran's Supreme National Security Council.
    • The Strait of Hormuz is critical, accounting for over 25% of global oil trade and significant LNG trade.
    • The region's geopolitical dynamics, including US military presence, may deter Iran from closing the strait.
    • India relies on the Strait for a substantial portion of its oil imports; disruptions could affect pricing and supply.
    • China's oil dependence exacerbates the implications of potential actions taken by Iran regarding the Strait.

    International Relation

    img

    India-US Trade Deal Concerns Rise

    India and the United States are negotiating a bilateral trade deal before the July 9 deadline, which could lead to the reimposition of tariffs by the US. Various domestic agricultural industries, notably the sugar and soybean processing sectors, are expressing reservations about the concessions that the deal may require.

    Key Concerns of the Agricultural Industries:

    • Sugar Industry Concerns:

      • The sugar sector is resistant to the potential imports of ethanol and genetically modified (GM) maize for ethanol production.
      • India has seen significant growth in its ethanol-blended petrol program, particularly under the Modi government, with blending rates increasing from 1.5% in 2013-14 to 14.6% in 2023-24. The aim is to reach a 20% blending ratio by the year 2025-26.
      • The sugar industry fears that allowing maize imports would marginalize sugarcane as a feedstock, especially since maize has begun to dominate the production of ethanol over sugarcane molasses.
      • In the 2024-25 supply year, 68% of the contracted ethanol is projected to come from grain-based feedstock, with maize as the primary source.
      • Concerns also extend to the "fuel versus food and feed" dilemma, wherein maize diversion for ethanol could affect livestock and poultry feed supplies.
    • Soybean Industry Concerns:

      • The Soybean Processors Association of India (SOPA) is opposing potential soybean imports, emphasizing that these would disrupt the domestic industry and livelihoods of over 7 million soybean farmers in India.
      • There's concern that importing soybeans for processing would not be economically viable due to transportation costs and logistics.
      • SOPA also critiques the recent reduction in effective import tariffs on soybean and other edible oils, asserting that lower-priced imports would further threaten domestic processors and their profitability.

    Economic Context and Government Initiatives:

    • The US ranks as the largest producer and exporter of both corn and ethanol, which raises geopolitical pressures for India to reduce import restrictions, especially as both nations seek to establish new economic partnerships in the wake of tensions with China.
    • In 2024, the US exported 1,914 million gallons of ethanol, of which India was a significant market.
    • A recent working paper by NITI Aayog has suggested importing GM maize and soybeans, indicating that US corn could meet India’s biofuel targets without impacting local food and feed markets.

    Domestic Impact and Trade Negotiations:

    • Both industrial sectors express that an influx of US agricultural products could severely impact their operations, with the sugar industry warning of stagnant domestic sugar consumption and shifting futures towards ethanol production.
    • As trade talks with the US advance, the dialogue on agricultural imports is likely to intensify, with domestic stakeholders advocating for protective measures for local production against influxes of foreign, cheaper agricultural products.

    Summary of Key Data:

    • Current Ethanol Blending:
      • 14.6% in 2023-24, aiming for 20% by 2025-26.
    • Ethanol Sourcing:
      • 68% from grain (primarily maize), 32% from sugarcane.
    • Soybean Production:
      • Indian processors crush 11-12 million tonnes annually, with 7-7.5 million tonnes used domestically.
    • Market Price:
      • Soybean trading at Rs 4,300-4,350 per quintal, below the minimum support price of Rs 5,328.

    Conclusion:

    The India-US trade negotiations highlight critical concerns from the domestic agricultural sector, particularly around the implications of imports on local industries. As both nations work towards finalizing the trade deal, the balance between international cooperation and domestic agricultural stability remains a pivotal point of discussion. The outcome of these negotiations could significantly influence India's agricultural landscape and the economic security of its farming communities.

    Economic and Social Development

    img

    Seventh Helicopter & Aircraft Summit Held

    The 7th Helicopter & Small Aircraft Summit was held in Pune on June 24, 2025, organized by the Ministry of Civil Aviation in collaboration with the Maharashtra State Government, Pawan Hans, and FICCI. The event gathered various stakeholders from the aviation sector to discuss the future of helicopters and small aircraft within India's aviation ecosystem.

    Key Highlights:

    • Leadership and Inauguration:

      • The inaugural session was presided over by the Union Minister of Civil Aviation, Rammohan Naidu Kinjarapu, with Murlidhar Mohol, Minister of State for Civil Aviation, as the Guest of Honor.
    • Vision for Aviation:

      • The Minister emphasized the importance of helicopters and small aircraft in democratizing air travel and enhancing regional connectivity.
      • He announced the establishment of a dedicated Helicopter Directorate under the Directorate General of Civil Aviation (DGCA) aimed at addressing safety and certification issues specific to helicopters.
    • Digital Initiatives:

      • The introduction of the Heli Sewa Portal, aimed at streamlining operations, route approvals, and slot allocations, was highlighted as a significant advancement in operational efficiency and transparency.
    • Safety Culture:

      • Emphasizing safety as a priority, Rammohan Naidu stated that building a robust safety culture is a shared responsibility among the Centre, States, and operators.
    • Commitment to ‘Viksit Bharat 2047’:

      • The Government's commitment to achieving a developed India by 2047 was reiterated, with a focus on helicopters and small aircraft bolstering regional air connectivity and inclusive growth.
    • Modernization Initiatives:

      • Minister of State Murlidhar Mohol highlighted initiatives such as the modernization of air traffic systems, promotion of green fuels, and the integration of futuristic technologies like electric Vertical Take-Off and Landing (eVTOL) aircraft into aviation policy priorities.
    • Self-Reliance in Aviation:

      • A strong emphasis was placed on self-reliance (Atma-Nirbhar Bharat) with investments in training programs for pilots, maintenance staff, and technicians, which aims to foster domestic talent in the aviation sector.
    • Helicopter Emergency Medical Services (HEMS):

      • Plans to strengthen HEMS were announced, aiming to provide essential air ambulance services in hilly and remote regions, thus incorporating air transportation into the nation's healthcare framework.
    • Participation and Engagement:

      • The summit saw participation from 20 State Governments, industry leaders, and various authorities, including the National Disaster Management Authority (NDMA) and senior officials from the Ministry of Civil Aviation and DGCA.
    • Technical Sessions:

      • The summit included technical sessions addressing DGCA safety regulations, financing, leasing opportunities, and the operational challenges faced by Original Equipment Manufacturers (OEMs) and operators.
    • Policy Initiatives:

      • Recent policy initiatives were discussed, including the launch of UDAN 5.1 for helicopters, revised DGCA regulations for aircraft certification and pilot training, and guidelines for seaplane operations under RCS-UDAN 5.5.

    Conclusion:

    The 7th Helicopter & Small Aircraft Summit was a pivotal event in shaping India's aviation landscape, particularly in enhancing safety standards, promoting regional connectivity, and integrating innovative technologies. The active collaboration among government bodies, state governments, and industry stakeholders indicates a concerted effort towards building a sustainable and modern aviation ecosystem in India.

    Important Points:

    • Event held on June 24, 2025, in Pune.
    • Focus on helicopters and small aircraft to democratize air travel.
    • Establishment of a Helicopter Directorate under DGCA for regulatory oversight.
    • Introduction of Heli Sewa Portal to streamline operations.
    • Emphasis on safety as a shared responsibility.
    • Commitment to ‘Viksit Bharat 2047’ as a target for regional development.
    • Modernization of air traffic management and promotion of green fuels.
    • Investment in training programs for aviation personnel.
    • Strengthening Helicopter Emergency Medical Services (HEMS).
    • Participation from multiple state governments and aviation authorities.
    • Relevant discussions on policy initiatives and operational challenges faced by the aviation industry.

    Economic and Social Development

    WhatsApp