India is navigating a complex landscape of international relations and domestic priorities, from finalizing key trade agreements and resetting diplomatic ties to addressing historical legacies and environmental concerns, alongside monitoring regional conflicts.
India-UK Free Trade Agreement: A Gold Standard for Trade?
Commerce and Industry Minister Piyush Goyal recently stated that the India-UK Free Trade Agreement (FTA) could serve as a benchmark for India’s future trade negotiations. This deal is designed to open up business opportunities while carefully protecting India’s sensitive sectors like dairy, rice, and sugar.
A significant point of contention remains the UK’s Carbon Border Adjustment Mechanism (CBAM), set to be implemented in 2027. Goyal warned that India would “react and retaliate” if this carbon tax negatively impacts India’s export interests. CBAM is an import duty on goods produced with higher carbon emissions than allowed within Europe, aiming to prevent “carbon leakage.”
Beyond trade tariffs, India and the UK are also strengthening cooperation on critical minerals. This joint effort aims to diversify supply chains and foster collaboration in advanced technologies like artificial intelligence and semiconductors, as part of the India-UK Vision 2035. The FTA is anticipated to boost Indian exports in labor-intensive sectors such as textiles, footwear, and gems and jewelry, even as India faces stiff competition from countries already enjoying zero-duty access to the UK market.
Resetting India-Maldives Relations
Bilateral ties between India and the Maldives are seeing a significant reset, highlighted by Prime Minister Narendra Modi’s attendance at the island nation’s Independence Day celebrations as a guest of honor. Maldivian President Mohamed Muizzu described Modi’s visit as a “defining” moment for future relations.
This visit marks a crucial turning point, as relations had been strained in recent months, partly due to the “India-out” campaign. India’s sustained diplomatic efforts and economic assistance have been instrumental in bringing the relationship back on track.
The Maldives holds immense strategic importance for India due to its critical location in the Indian Ocean, serving as a vital point for maritime security and trade routes. India continues to invest in the Maldives’ defense capabilities and remains vigilant about the expanding influence of other global powers in the region.
Chola Emperor Rajendra I: A Millennium-Old Legacy in Focus
A thousand-year-old legacy of Chola emperor Rajendra I has emerged as a point of shared interest for both Tamil Nadu Chief Minister M.K. Stalin and Prime Minister Narendra Modi. Both leaders are making separate efforts to honor this powerful maritime monarch of the Chola dynasty.
Rajendra Chola I (1014–1044 CE) inherited a strong kingdom from his father, Rajaraja I, and expanded it into a vast pan-Asian maritime empire through bold campaigns from the Ganga river to Southeast Asia. To commemorate his successful northern expedition, he established Gangaikonda Cholapuram and created the massive Cholagangam tank.
While his birth anniversary is now an official state celebration in Tamil Nadu, PM Modi is set to visit Gangaikonda Cholapuram to unveil a commemorative coin and an exhibition showcasing Rajendra Chola’s northern conquest. The Cholagangam tank, once an engineering marvel, is unfortunately now in disrepair, highlighting the need for preservation of these historical sites.
India’s Stance on Genetically Modified Agricultural Products
During ongoing trade negotiations, India is unlikely to concede to US demands to import genetically modified (GM) agricultural products such as corn and soya. The Indian government views this as a matter of principle, resisting the import of these products.
While the United States Trade Representative (USTR) has previously criticized India’s restrictions on GM products as discriminatory, India maintains stringent regulations. Currently, only Bt cotton is approved for cultivation in the country, and no GM food crop is commercially grown, though imports of certain GM oils like soybean and canola are permitted.
Significant resistance to GM crops in India stems from concerns about potential pest resistance, risks to non-target species, and the possibility of GM and non-GM crops intermingling in the supply chain. Such intermingling could pose risks to food safety, environmental integrity, and India’s reputation in GM-sensitive export markets like the EU.
India Monitors Thailand-Cambodia Border Clashes
India is closely observing the escalating border clashes between Thailand and Cambodia, urging both nations to de-escalate tensions and cease hostilities immediately. The Ministry of External Affairs has also issued a travel advisory, urging Indian travelers in the region to contact embassies for any assistance.
The conflict has led to casualties and displaced nearly 150,000 people. The United Nations Security Council has called for de-escalation and urged ASEAN (Association of Southeast Asian Nations) to mediate a peaceful resolution to the dispute.
While Cambodian Prime Minister Samdech Thipadei Hun Manet announced an “immediate and unconditional ceasefire” after a phone call with US President Donald Trump, Thailand has agreed in principle but emphasized the need for “sincere intention” from Cambodia. These ongoing tensions underscore the complex nature of border disputes in Southeast Asia.
