CURRENT-AFFAIRS

General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations

Introduction: Shift in Diplomatic Paradigms

The year 2026 is a milestone year for Indian diplomacy. Inviting the institutional leadership of the European Union (EU) as the Chief Guest at 'Kartavya Path' on January 26 is a proclamation that India is now ready to break traditional bilateral boundaries and fill 'Diplomatic White Spaces' (diplomatic voids). This is a strategy where India is strengthening its position in a divided world through 'Multi-alignment'.

From Cooperation to Hegemony: Changing Global Landscape

The 'rules-based order' established after World War II is now on the verge of collapse. Global politics has shifted away from 'cooperation' and turned back toward 'hegemony' and 'protectionism'.

• USA's Tariff Diplomacy: America is now using economic power as a weapon. Threats of 'tariffs' on countries seeking alternatives to the dollar and harsh sanctions on nations like Venezuela and Iran have disrupted the global supply chain.
• China's Expansionism: China's 'Wolf Warrior' diplomacy and debt-trap diplomacy through the Belt and Road Initiative (BRI) have created a threat to the sovereignty of small nations.

Crisis of Multilateral Platforms

Huge platforms like the United Nations (UN) and the World Trade Organization (WTO) currently seem to be losing their relevance:

• The failure of the UN Security Council in the Ukraine and Gaza crises has proved that these platforms are hostages to the 'veto' politics of superpowers.
• When large platforms fail, the potential for India's success lies in 'Small Tables'.

'Diplomatic White Spaces' and the Strategy of Small Tables

'White Spaces' are those areas where no rules are clear (e.g., AI ethics, data sovereignty, space diplomacy). India is using 'Small Tables' to fill these voids:

• I2U2, Quad, and India-European Union: These platforms provide India with autonomy and speed in decision-making.
• Chabahar and IMEC: Through the Chabahar port in Iran and the 'India-Middle East-Europe Economic Corridor' (IMEC), India is carving its own independent trade route amidst the US-China rivalry, even if it has to face the challenges of American sanctions (CAATSA).

Balancing Equation with China and Russia

India's foreign policy is not a 'zero-sum game':

• RIC (Russia-India-China) vs Quad: India maintains its 'special and privileged' partnership with Russia on one hand, while on the other, it is active in the 'Quad' with America to counterbalance China in the Indian Ocean.
• Arctic and Greenland: Amidst the focus of the US and China on the resources of Greenland, India is ensuring its future energy security through its 'Arctic Policy'.

India Amidst Hegemony: 'Vishwa Mitra' and 'Bridging Power'

India is presenting itself as a 'Solution Provider':

• Balancing in BRICS: Russia and China want to make BRICS 'anti-West', but India is keeping it 'non-West' while making it the voice of the Global South.
• Economic Sovereignty: To avoid American tariffs and the dominance of the dollar, India is promoting its digital currency and 'Local Currency Trade' (LCT).

Way Forward

The coming time will be a rigorous test of 'strategic autonomy' for India:

• Institutional Capacity: For effective leadership on small tables, India must increase the number of its diplomatic corps and technical experts.
• Economic Self-reliance: In this era of tariff wars, 'Atmanirbhar Bharat' is not just a slogan but a shield of security.
• Outcome-based Diplomacy: India must not remain limited to discussions but must derive concrete results from projects like Chabahar and the AI Impact Summit.

Conclusion

The India of 2026 has abandoned the old patterns of diplomacy. For a world caught in the grind of hegemony, India has emerged as a 'Bridging Power'. The welcome of the European Union at 'Kartavya Path' is a symbol that India is no longer just a participant at the global table, but is moving toward becoming a maker of those rules that will build a just and multi-polar world order.

General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations

Introduction

The visit of the President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan, to New Delhi in January 2026 has provided a new momentum to India's 'West Asia Policy'. On one hand, where the impact of 'protectionism' and 'tariff wars' is increasing in global trade relations, on the other hand, India and the UAE have set an ambitious target to double their bilateral trade to $200 billion by the year 2032.

Energy Security: LNG Agreement and ADNOC-HPCL Partnership

The most significant outcome of this visit is the $3 billion 'Liquefied Natural Gas' (LNG) supply agreement:

• Long-term Stability: A 10-year agreement has been signed between Abu Dhabi's state oil company (ADNOC) and India's Hindustan Petroleum Corporation (HPCL), which will be effective from 2028.
• India's Dominance: With this deal, India will become the largest global customer of UAE's LNG, accounting for 20% of the UAE's total LNG sales by 2029.
• Strategic Importance: This agreement is in line with the goal of diversifying India's energy basket and transitioning from fossil fuels to clean energy.

Trade Diversification: USA vs. Alternative Routes

This shift in India's diplomacy is part of a well-thought-out strategy:

• Impact of US Tariffs: Punitive tariffs imposed by the US on Indian exports and the uncertainty of a comprehensive trade deal have prompted India to explore alternative markets.
• Multi-dimensional Partnership: India has attempted to secure its global supply chain through trade agreements (FTAs/CEPA) not only with the UAE but also with the UK, Oman, and New Zealand.

Geopolitical Analysis

This agreement is not limited to economic benefits for India alone; it has several strategic dimensions:

• Strategic Autonomy: Amidst increasing tension between superpowers (US-China), India is strengthening its diplomatic autonomy by establishing direct and robust relations with Middle-Eastern powers.
• Minilateral Diplomacy: Strong India-UAE ties are fundamental pillars for the success of groups like I2U2 (India, Israel, USA, UAE) and the India-Middle East-Europe Corridor (IMEC).
• Diaspora Interests and Remittances: This stability is essential for the economic interests of the 3.5 million Indians living in the UAE and for India's foreign exchange receipts.

Challenges and Limitations

• Regional Instability: Issues such as the Yemen crisis and tension in the Red Sea remain challenges for the security of trade routes.
• Competition: Other Gulf countries (such as Saudi Arabia) are also striving for large investments in the energy sector with India, requiring India to maintain a complex balance.

Conclusion

'Regular high-level dialogue' between India and the UAE has now become a 'new normal'. This indicates that India's foreign policy is no longer just 'reactive' but 'proactive' and 'outcome-oriented'. To achieve the $200 billion trade target, both countries will have to further deepen cooperation in sectors such as non-oil trade, digital payments, and defense manufacturing.

General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations

Context

Historically, the global trade has been dominated by the 'Bretton Woods' system and the US dollar since World War II. However, in recent years, the need for 'De-dollarization' has been felt in developing countries due to geopolitical instability, the use of sanctions as a weapon (such as the removal of Russia from ‘SWIFT’ after the Russia-Ukraine war), and the monetary policies of the US Federal Reserve. Against this backdrop, the Reserve Bank of India (RBI) has proposed connecting the digital currencies (CBDCs) among BRICS nations, which is not only a technological advancement but also a strategic move.

What is BRICS?

BRICS is a group of the world's leading emerging economies.

• Establishment: 2009 (South Africa joined in 2010).
• Core Members: Brazil, Russia, India, China, and South Africa.
• Expansion (BRICS+): Recently, countries like the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia have been included, while countries like Indonesia are also close to it.
• Significance: It represents approximately 45% of the global population and more than 28% of the global Gross Domestic Product (GDP).

Why in Discussion?

• According to recent reports, the Reserve Bank of India (RBI) has recommended to the Government of India that a proposal to interlink the 'Central Bank Digital Currencies' (CBDCs) of member countries be included in the agenda for the 2026 BRICS Summit.
• This is the first time India has officially suggested such a multilateral digital payment mechanism, aimed at facilitating cross-border trade and tourism.

Why is it Needed?

• Reduction in Transaction Costs: Currently, cross-border payments involve many intermediary banks, increasing both cost and time. CBDC will make it direct and cheaper.
• Reducing Reliance on the Dollar: Fluctuations in the dollar's exchange rate destabilize the economies of developing countries. Local currency linkage will provide protection against this.
• Financial Sovereignty: Developing an independent payment mechanism without the fear of sanctions.
• Boosting Tourism: Eliminating the complexity of currency exchange for tourists.

Impact

• Economic Impact: If successful, it will create a "parallel global payment system." Trade settlements can take place in real-time.
• Strategic Impact: India's 'Digital Rupee' will gain global acceptance, strengthening India's 'Soft Power' and financial diplomacy.
• Market Dynamics: It can reduce the risks of stablecoins and unregulated cryptocurrencies, as it will be backed by central banks.

Key Challenges and the Stance of America

• American Response: The US views this as a threat to its economic hegemony. President Donald Trump has termed it "anti-American" and warned of imposing heavy tariffs on countries that attempt to abandon the dollar.
• Technical Barriers: The technology of CBDC platforms in different countries is different. Bringing them onto a shared network is difficult.
• Lack of Trust: Trade imbalance between China and India or Russia and India is a major hurdle. The example of Indian Rupee balances accumulated by Russia shows that managing currency surplus is complex.

BRICS 2026

• India is going to host the 2026 BRICS Summit. This summit will be held at the end of this year.
• This is a major opportunity for India to emerge as a leader of the Global South and present its successful model of Digital Public Infrastructure (DPI) to the world.

BRICS Currency and Pilot Project

Currently, no shared "BRICS Currency" exists, but all five core members are running pilot projects of their respective CBDCs.

• India's e-Rupee, China's e-CNY, and Russia's Digital Ruble are in advanced stages of testing.
• The discussion now is not about creating a new currency, but about connecting these existing digital currencies through a 'bridge.'

Global Analysis

• Globally, initiatives like 'Project mBridge' are already underway between China, UAE, and Thailand.
• Europe and America are also working on their own digital currencies.
• This step by BRICS is an effort toward the "democratization" of global finance, which could challenge the Western-dominated SWIFT system.

Analysis

This proposal is an indicator of India's balanced foreign policy. On one hand, India is with the US through 'QUAD,' while on the other hand, through BRICS, it is posing a rational challenge to the dominance of the dollar. However, India has clarified that its objective is not 'De-dollarization,' but the 'Internationalization of the Rupee.'

Way Forward

• Technical Standards: Member countries will have to agree on a common 'protocol' and data security standards.
• Bilateral Swap Arrangements: To address trade imbalances, 'Currency Swap' agreements between central banks must be strengthened.
• Gradual Implementation: It should start with tourism and small trade, gradually moving toward large-scale trade settlements.

Conclusion

The Reserve Bank of India’s proposal for CBDC linkage could prove to be a revolutionary step in the global financial structure. It will not only make trade easier but also provide a safety shield against future economic shocks. The 2026 India Summit will prove decisive in this direction, provided the member countries set aside political differences and prioritize technical and economic cooperation.

General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations

Introduction

Yemen, which was historically called the 'Happy Land of Arabia' (Arabia Felix), has today turned into the most tragic chapter of global politics. The decade-long civil war has not only devastated Yemen but has also surfaced the strategic differences between the two major powers of the Persian Gulf—Saudi Arabia and the United Arab Emirates (UAE). The military and diplomatic developments in early 2026 have given this crisis a new and more complex turn.

Epicenter of Events: Military Conflict in South Yemen

In late December 2025, a new internal front opened in Yemen when the UAE-backed Southern Transitional Council (STC) rebelled against the internationally recognized government:

• Control over Strategic Areas: The STC took control of the oil and resource-rich provinces of 'Hadhramaut' and 'Al-Mahrah'.
• Saudi Military Intervention: Riyadh viewed this as an attack on Yemen's integrity. Following Saudi Air Force intervention and diplomatic pressure, government forces re-entered Aden by January 7, 2026, and controlled the rebellion.

Saudi Arabia vs UAE: Diplomatic Stalemate

The allies from the early stages of the Yemen war now stand at opposite poles:

• Contradictory Strategic Goals: Saudi Arabia favors a unified Yemen so that its southern border remains secure from Iran-backed Houthi rebels. In contrast, the UAE's inclination has been toward the separatists of South Yemen to secure its influence over the Bab-al-Mandeb strait and major maritime routes.
• Arms Dispute: Saudi Arabia's targeting of arms shipments at Mukalla port and accusing the UAE of supplying weapons to rebels reflects a "Trust Deficit" between the two countries.

Riyadh Declaration and the Future of STC

A significant change occurred following high-level talks held in Riyadh in the first week of January 2026:

• Dissolution and Flight: Under Saudi pressure, the STC announced its dissolution, and the flight of its prominent leader Aidarus al-Zoubaidi to Abu Dhabi has weakened this rebellion. However, resentment among local groups still persists.

Yemen Crisis and India: Strategic and Economic Interests

The stability of Yemen directly affects India's national interests:

• Energy Security: Most of India's crude oil and LNG imports pass through the maritime routes of this region. Insecurity in the Red Sea means an increase in freight costs and an energy crisis.
• Security of Diaspora: Nearly 90 lakh (9 million) Indians are working in neighboring countries like Saudi Arabia and the UAE. Rising tension in this region is sensitive for India in terms of remittances and the security of the diaspora.
• Terrorism and Piracy: Yemen's instability provides an opportunity for Al-Qaeda (AQAP) and other militant groups to flourish, posing a threat to India's security in the Indian Ocean Region (IOR).

India's Diplomatic Position

India has always adopted a balanced and "Principled" stand:

• India fully supports the regional integrity and sovereignty of Yemen.
• India has a 'Strategic Partnership' with both Saudi Arabia and the UAE; therefore, India prioritizes regional stability rather than taking any one side.
• India believes that the solution is only possible through a 'Yemen-led' and 'inclusive political process'.

Humanitarian Crisis: A Grim Reality

Amidst the political chess, the people of Yemen are the biggest victims:

• Humanitarian Statistics: 80% of the country's population (approximately 2.4 crore people) depends on humanitarian aid.
• Economic Collapse: Infrastructure has collapsed and severe inflation has put food out of reach for the common people.

Analysis: Challenges and Opportunities for India

This crisis is a test of India's 'West Asia Policy'. India is working on ambitious projects like the India-Middle East-Europe Economic Corridor (IMEC), for whose successful implementation peace in this region is essential. The Saudi-UAE rivalry can make maintaining a diplomatic balance difficult for India.

Way Forward

• Maritime Security: India should increase multilateral cooperation to ensure safe movement in the Red Sea through 'Naval Diplomacy'.
• Humanitarian Leadership: India, as a leader of the 'Global South', should send large-scale medical and food aid to Yemen.
• Role of BRICS: Since Saudi Arabia and the UAE are now members of BRICS, India should use this platform during its 2026 hosting to try and reduce differences between the two countries.

Conclusion

The Yemen crisis is no longer just an internal conflict, but has become a laboratory for geopolitical supremacy in West Asia. For India, peace in this region means secure citizens and a stable economy. While hosting BRICS in 2026, India must use its diplomatic capability to prevent Yemen from becoming a "Failed State" and act as a bridge between regional powers.

General Studies Paper – II: Governance, Constitution, Polity, Social Justice, and International Relations

General Studies Paper – IV: Ethics, Integrity, and Aptitude

Introduction

The stay granted by the Supreme Court in January 2026 on the Rajasthan High Court's order, which directed the removal of 1,102 liquor shops within 500 metres of highways, has brought back to the center stage the old dilemma between 'Public Safety' and the 'Economic Realism of the State' in India. This case is not only an example of judicial activism but also underlines the practical limitations of the executive and policy complexities.

Historical and Legal Perspective

The constitutional and judicial framework regarding the regulation of alcohol in India has always leaned toward 'Public Welfare':

• Constitutional Mandate (Article 47): Under the Directive Principles of State Policy (DPSP), it is the duty of the State to endeavor to bring about prohibition of the consumption of intoxicating drinks and of drugs which are injurious to health, for the improvement of public health.
• Judicial Precedent (The State of Tamil Nadu v. K. Balu, 2016): The Supreme Court had imposed a ban on the sale of liquor within 500 metres along highways to reduce the mortality rate caused by 'Drunk Driving'. However, in the 2017 clarification, an exemption was provided to municipal areas, which is the main center of the current dispute.
• Right to Trade: The Court has clarified several times that trading in liquor is not a fundamental right but a privilege granted by the State.

Multidimensional Socio-Economic Analysis

• Social and Ethical Dimensions
  • Domestic Violence and Women’s Safety: NFHS-5 data confirms that alcohol consumption is directly linked to domestic violence and gender-based crimes. It destroys the economic security of families and adversely affects the nutrition and education of children.
  • Ethical Dilemma: For a 'Welfare State', it is a debatable ethical question whether it should earn revenue from the addiction of its citizens. Gandhian philosophy supports total prohibition, while the modern liberal perspective emphasizes 'Individual Liberty' (Article 21) and 'Responsible Consumption'.
• Economic Realism and Revenue
  • Inevitability of Revenue: Alcohol is outside the ambit of GST, due to which it remains the largest source of income (15-25%) for states through 'State Excise Duty'.
  • Practical Hurdles: In states like Rajasthan, where urban planning is parallel to highways, a 500-metre restriction can turn entire commercial areas into 'Dry Zones', which adversely affects tourism and employment.

Criminology and Safety-Related Facts

• NCRB and Road Safety: The proportion of 'Drunk Driving' in deaths occurring in road accidents in India may appear statistically low (2-3%), but the fatality rate of these accidents is 40% higher than other causes.
• Failure of Enforcement (Indian Ingenuity): Despite the ban on direct advertisements, rules are bypassed through 'Symbolic Signs' (such as arrow marks) and 'Surrogate Advertising' (branding in the name of soda, water, etc.).

Review of Prohibitionist States

The experiences of states like Bihar, Gujarat, and Nagaland have been mixed:

• Success: Strengthening of the rural economy and an increase in social consciousness.
• Failure: Rise of 'Underground Economy', deaths from spurious liquor (Hooch), smuggling from bordering states, and an increase in administrative corruption.

Way Forward

There is a need for the Judiciary and the Executive to adopt a 'Middle Path':

• Revenue Diversification: States should reduce their financial dependence on alcohol and increase it on the service sector and other tax sources.
• Technical Intervention: Encouraging vehicles equipped with 'Alcohol Interlocks' on highways and digital monitoring.
• Behavioral Change: Developing prohibition as a social movement rather than just a law, where the role of de-addiction centers is prominent.
• Judicial Balance: Like the Rajasthan case, courts should listen to the practical problems of all stakeholders before issuing sweeping orders.

Conclusion

The issue of liquor stands at the intersection of economics, ethics, and public health. The current legal case of Rajasthan clarifies that the goal of 'Zero Accident' can be achieved not just by displacing shops, but through strict enforcement, responsible consumption, and restructuring the state's economic policies. When the idealism of the judiciary and the realism of the executive work in one direction, only then will the achievement of the actual goals of Article 47 be possible.

 The exercise conducted in January 2026 is the first major multilateral military event following the expansion of the BRICS group. This exercise symbolizes the growing military power and strategic autonomy of the 'Global South' in global geopolitics.

Key Points

• Name: Resolve for Peace 2026.
• Time: 9 January to 16 January 2026.
• Location: South Africa's territorial waters, specifically Simon's Town Naval Base near Cape Town and False Bay.
• Leadership: This exercise was led by China.
• Hosting: South Africa was the host country for this exercise.

Participating and Observer Countries

This exercise was conducted in the BRICS Plus format, which featured different levels of participation:

Main Objectives of the Exercise

• Maritime Security: Ensuring the safety of shipping routes and maritime economic activities.
• Interoperability: Increasing technical and operational coordination among the navies of different countries.
• Anti-Piracy: Practicing anti-piracy operations and Search and Rescue (SAR) tasks.
• Technical Exchange: Exchange of naval systems and Standard Operating Procedures (SOPs).

Global Impact and Importance

This exercise is not just a military drill but a major diplomatic message:

• Towards a Multipolar World: This exercise demonstrates a 'non-Western' security framework as an alternative to the maritime dominance of the US and NATO.
• Growing Influence of China and Russia: For China, this is an opportunity to normalize the reach of its navy (PLAN) in the Indian Ocean and South Atlantic. Meanwhile, Russia has shown that it remains globally active despite sanctions.
• Strategic Autonomy: Hosting this exercise by South Africa is a demonstration of its independent foreign policy despite Western pressure.
• Security of the Indian Ocean: The Cape Route is a major corridor for global trade. The presence of BRICS Plus here increases their influence over trade routes.

Challenges and Controversies

• Tension with the US: Washington has described this exercise as "anti-American" and escalatory, especially due to the participation of Russia and Iran.
• India's Stand: India has attempted to maintain a balance by not participating in this exercise. India views 'BRICS' as an economic platform rather than a military alliance.
• Internal Differences: The absence or limited participation of countries like India and Brazil within the group shows that there is no full consensus on security cooperation within BRICS.