1. Budget 2025-26: Removal of 7 Customs Duties for Industrial Goods

Why in News?

• The Union Budget 2025-26 has proposed the removal of 7 customs tariff rates for industrial goods.
• This reduces the total number of customs tariff rates to just 8, including one zero rate, ensuring a simpler, more transparent, and predictable customs duty system.
• The move follows similar tariff simplifications from previous budgets (notably Budget 2023-24).

What is Customs Duty?

• Customs Duty is a tax imposed on goods when they cross international borders. It serves several purposes:
• Regulates trade by controlling imports and exports.
• Protects domestic industries from unfair competition.
• Prevents illegal trade (e.g., smuggling, counterfeit goods).
• Generates government revenue for public services.
• Supports environmental & social policies by discouraging harmful products.

Legal Framework for Customs Duty in India

• The Customs Act, 1962: Governs customs duties, procedures, and enforcement.
• Central Board of Indirect Taxes and Customs (CBIC): Administers customs duties under the Ministry of Finance.

Types of Customs Duties in India

1. Basic Customs Duty (BCD) – Imposed on imports (ranges from 0-100%).
2. Countervailing Duty (CVD) – Levied to offset foreign subsidies (0-12%).
3. Social Welfare Surcharge (SWS) – A 10% surcharge used for welfare projects.
4. Anti-Dumping Duty – Prevents foreign goods from being sold below market price to protect domestic industries.
5. Compensation Cess – Applied on tobacco, coal, pollution-causing products, etc.
6. Integrated GST (IGST) – Tax on imports at 5%, 12%, 18%, or 28%.
7. Safeguard Duty – Imposed when excessive imports harm domestic industries.
8. Customs Handling Fee – A 1% charge for customs processing.

Customs Duty Calculation

Customs duty is determined by:
🔹 Product value (assessed price of goods).
🔹 Origin & composition (country of manufacture & material).
🔹 International trade agreements (duty reductions or exemptions).

Key Changes Announced in Customs Tariffs

How India is Protecting Its Economy from Trade War Impacts

Rupee-Based Trade – Reducing reliance on the U.S. dollar by settling trade with Russia, UAE, Sri Lanka in rupees.
Stockpiling Essential Goods – Building reserves of semiconductors, rare earth metals, and crude oil to counter global supply chain disruptions.
Manufacturing Incentives – Encouraging foreign companies to move factories to India through Production Linked Incentives (PLI).
Technology & AI in Trade – Implementing paperless customs clearance, AI-driven trade monitoring, and blockchain for documentation.
Strengthening Trade Alliances – Expanding partnerships via:

• Indo-Pacific Economic Framework (IPEF) – Strengthening regional trade ties.
• Supply Chain Resilience Initiative (SCRI) – Collaboration with Japan & Australia to secure global supply chains.

Conclusion

The Budget 2025-26 continues the trend of simplifying India’s customs duty structure, making trade more transparent and predictable. The removal of 7 tariff rates and exemptions on key industries (EVs, shipbuilding, medicine, and exports) will boost industrial growth, support Make in India, and enhance global trade competitiveness.

2. Gyan Bharatam Mission: Preserving India’s Manuscript Heritage

Why in News?

• The Union Budget 2025-26 has introduced the Gyan Bharatam Mission, a nationwide initiative aimed at surveying, documenting, and conserving India’s manuscript heritage.
• The mission seeks to revive and expand the National Manuscripts Mission (NMM), which was originally launched in 2003 but faced challenges such as inadequate funding and structural issues.
• It aligns with India’s broader cultural conservation goals, ensuring that ancient texts are systematically preserved for future generations.

Objectives of the Gyan Bharatam Mission

• Survey & Documentation – Identifying and cataloging over one crore manuscripts from institutions and private collections.
• Digitization – Converting rare texts into digital formats for accessibility and long-term preservation.
• Conservation Techniques – Restoring and preserving fragile manuscripts using modern preservation methods.
• Centralized Repository – Establishing a national archive for India’s textual and intellectual heritage.
• AI-Driven Archiving & Translation – Utilizing AI, metadata tagging, and digital tools to enhance access and usability of manuscripts.

Budget Allocation & Implementation

Funding Increase – The budget for the National Manuscripts Mission (NMM) has been raised from ₹3.5 crore to ₹60 crore to support digitization, conservation, and documentation efforts.
Use of Modern Technology –

• AI-powered archival systems for efficient storage and retrieval.
• Metadata tagging to categorize and index manuscripts systematically.
• Translation tools to make texts accessible in multiple languages.

Significance of the Gyan Bharatam Mission

🔹 Preserves India’s Cultural Heritage – Safeguards ancient knowledge found in Sanskrit, Pali, Prakrit, Persian, and regional language manuscripts.
🔹 Supports Academic Research – Facilitates access to historical texts for scholars and researchers.
🔹 Promotes Global Recognition – Strengthens India’s role in world heritage conservation.
🔹 Empowers Digital India Vision – Encourages the use of technology in cultural preservation.

Conclusion

The Gyan Bharatam Mission represents a major step in preserving India’s manuscript heritage by combining modern technology with traditional conservation efforts. By ensuring systematic documentation, digitization, and restoration, the initiative will help future generations access and appreciate India’s rich textual and intellectual legacy.

3. Revitalizing India’s Nuclear Energy Sector: The Need for Reform

Why in News?

• Finance Minister Nirmala Sitharaman has announced amendments to two key atomic laws:
  1. Atomic Energy Act, 1962
  2. Civil Liability for Nuclear Damage Act (CLNDA), 2010
• These reforms aim to revitalize India’s nuclear energy sector, aligning with the global resurgence in nuclear energy as a clean power source.
• India’s current nuclear power capacity is stagnant at 8,200 MW, far behind countries like China and South Korea that have aggressively expanded their nuclear infrastructure.
• The government has set a target of 1,00,000 MW nuclear power capacity by 2047, necessitating legal and regulatory changes to attract investment and improve efficiency.

Key Challenges in India’s Nuclear Energy Sector

1. Historical Constraints

• Nuclear Non-Proliferation Treaty (NPT) (1970):
  • Restricted technology transfers, limiting India’s nuclear advancements.
  • India, as a non-signatory, was barred from accessing global nuclear technology and fuel markets until the Indo-US Civil Nuclear Deal (2008).

2. Impact of the CLNDA, 2010

• The Civil Liability for Nuclear Damage Act (CLNDA), 2010)discouraged foreign and private investment by:
  • Making nuclear suppliers liable for accidents instead of only the plant operator (which is the global norm).
  • This deviation from international liability frameworks discouraged major global players like Westinghouse and Areva from investing in India’s nuclear sector.

3. Structural Issues in the Atomic Energy Act, 1962

• This Act established a government monopoly over nuclear energy, preventing private sector participation.
• Limited innovation, funding constraints, and bureaucratic hurdles slowed India’s nuclear expansion.

4. Lack of Private Sector Participation

• Global examples (e.g., China, the US, and France) show that involving private firms enhances nuclear technology development.
• In India, companies like Tata, L&T, and Godrej have contributed to nuclear projects but lack the legal authority to develop and operate reactors independently.

Proposed Reforms & Their Impact

Lessons from the Space Sector

• India’s space sector reforms (e.g., privatization of ISRO-linked projects) have led to:
  ✅ Increased investments
  ✅ Enhanced innovation
  ✅ Faster project execution
• Similar reforms in the nuclear sector could lead to:
  ✅ Greater efficiency in nuclear power generation
  ✅ Advanced indigenous technology development
  ✅ Stronger energy security

Why Nuclear Energy is Critical for India’s Future?

1. Energy Security & Demand Growth

• India’s energy demand is projected to double by 2040.
• Nuclear power provides a stable, large-scale energy source, unlike solar and wind, which are intermittent.

2. Climate Goals & Green Transition

• Nuclear energy is a low-carbon alternative to coal and gas-based power.
• India aims to reduce carbon emissions under the Paris Agreement & Net Zero targets (2070).

3. Reducing Dependence on Coal

• Currently, ~55% of India’s electricity comes from coal.
• Expanding nuclear power can help diversify India’s energy mix and cut reliance on fossil fuels.

Conclusion

🔹 Amending the Atomic Energy Act & CLNDA, 2010 is crucial to unlocking India’s nuclear potential.
🔹 Private sector participation can accelerate nuclear expansion, similar to space sector reforms.
🔹 Investment-friendly liability laws will attract foreign technology and funding.
🔹 Achieving 100,000 MW nuclear capacity by 2047 will strengthen India’s energy security and support its green transition.

A modernized nuclear sector can play a pivotal role in India’s sustainable energy future.

4. India-US Immigration Tensions: Deportations, Diplomacy, and Challenges

Why in the News?

• Days before Prime Minister Narendra Modi’s visit to the U.S., the Donald Trump administration has intensified deportations of undocumented Indian immigrants, raising concerns over:
  • Bilateral relations between India and the U.S.
  • The welfare of Indian nationals in the U.S.
• The U.S. has strengthened immigration enforcement policies, particularly targeting illegal Indian migrants.
• India has agreed to accept deported individuals, but only after verifying their nationality.

Key Issues in the Immigration Tensions

1. Mass Deportations of Indian Nationals

Current Statistics:

• 20,407 undocumented Indians are under scrutiny in the U.S.
• 17,940 individuals have received final removal orders from U.S. immigration courts.
• Deportations have significantly increased in recent months.

Use of Military Aircraft for Deportations:

• Recently, C-17 military aircraft were used to deport 205 Indians from Texas, mainly from Gujarat and Punjab.
• The move highlights the U.S.’s aggressive stance on immigration enforcement.

2. Immigration Policy Changes Under the Trump Administration

🔹 The Trump administration has declared illegal immigration a “national emergency”, leading to:
✅ Stricter deportation measures for undocumented immigrants.
✅ Tightening of asylum policies to restrict immigration pathways.
✅ Closure of legal protections that were in place under previous administrations.

🔹 Impact on Indian Migrants:

• Harsher visa scrutiny for students and professionals.
• Increased border security, affecting undocumented Indian immigrants entering via Mexico.
• Stricter H-1B visa policies, impacting skilled Indian workers in the U.S. tech sector.

3. India’s Diplomatic Response

India’s Position on Deportations:

• India has emphasized the need for nationality verification before accepting deported individuals.
• Concerns have been raised over:
  • Fair treatment of Indian immigrants under U.S. laws.
  • Potential impact on legal migration pathways for Indian students and skilled workers.

Diplomatic Talks During Modi’s Visit:

• Immigration is expected to be a key agenda during Modi’s discussions with U.S. officials.
• India seeks greater clarity and fairness in U.S. immigration policies to protect its diaspora.

Broader Implications of Immigration Tensions

1. Strained India-US Relations?

Balancing Trade & Strategic Ties – While both countries collaborate on defense, trade, and technology, immigration disputes could create diplomatic friction.
Domestic Political Impact – With U.S. elections approaching, stricter immigration policies may be politically motivated, affecting Indian migrants.

2. Impact on the Indian Diaspora

H-1B Visa Holders & Skilled Workers – Uncertainty over work visas and green card policies may discourage professionals from seeking opportunities in the U.S.
Indian Students – Stricter visa rules could reduce the number of Indian students enrolling in U.S. universities.

3. Shift in Immigration Patterns?

• More Indian migrants are seeking alternative destinations like Canada, Australia, and the UK, which offer:
  ✅ Easier work permits
  ✅ Faster PR pathways
  ✅ More favorable student visa policies

Conclusion

The ongoing India-US immigration tensions highlight the complex balance between national security, legal migration, and diplomacy. While the U.S. is enforcing stricter immigration laws, India is working to protect the rights of its diaspora and ensure fair treatment for deported individuals.

With Prime Minister Modi’s visit, discussions on immigration reforms, visa policies, and deportation protocols will be crucial in shaping the future of India-U.S. relations.

5. US-China Trade Tension Escalates: Implications & Global Impact

Why in News?

• US-China trade tensions have intensified, with China retaliating against US tariffs by:
  • Investigating Google for antitrust violations
  • Imposing new tariffs on US coal, LNG, oil, and agricultural equipment
• US President Donald Trump has postponed 25% tariffs on Mexico and Canada, temporarily easing tensions in North America.
• Trump has also hinted at tariffs on the EU, citing trade imbalances, raising concerns about a wider global trade war.
• India stands to benefit from trade diversions caused by US tariffs on China, particularly in electronics exports.

Key Developments in US-China Trade War

1. Trump’s Trade War with China

Background:

• Began in Trump’s first term, leading to retaliatory tariffs and economic disruptions.
• Resulted in the Phase One Trade Deal (January 15, 2020), aimed at:
  ✅ Structural reforms in China’s trade policies
  ✅ Increased Chinese purchases of US goods
• However, China failed to meet its purchase commitments, keeping tensions high.

Recent Escalations:

• The US reimposed tariffs on several Chinese goods.
• China retaliated by:
  ✅ Investigating Google for antitrust violations
  ✅ Imposing new tariffs on US coal, LNG, oil, and agricultural equipment

2. Impact on India

🔹 Opportunities in Trade Diversion

• With US tariffs making Chinese goods costlier, India has increased its exports to the US.
• Electronics exports have surged—India’s share of US electronics imports has grown tenfold since 2017.

🔹 Challenges & Risks

• India may face US scrutiny if its trade surplus with the US rises significantly.
• If the trade war escalates globally, India’s exports to China may suffer due to reduced global demand.

3. Impact on the US Economy

A. Rising Costs for US Consumers

• Tariffs on Chinese goods are expected to raise household expenses by over $1,200 annually.
• Prices of everyday goods, including electronics, textiles, and automobiles, may rise.

B. Automotive Industry Disruptions

Tariffs on parts from Mexico and Canada are increasing production costs for US carmakers.
Consumers may shift towards cheaper, foreign-made vehicles, prompting:
✅ Potential new US tariffs on imported cars
✅ Further escalation of the global trade war

C. Inflation & Competitiveness Concerns

• Tariffs increase production costs for US manufacturers, making their goods less competitive globally.
• Rising costs may contribute to higher inflation, affecting consumer spending and economic growth.

4. Risk of a Global Trade War

If Trump extends tariffs to the EU, it could lead to:
✅ European retaliation, affecting US exports.
✅ Supply chain disruptions for global businesses.
✅ Uncertainty in global markets, impacting investment and economic stability.

Conclusion

The US-China trade tensions continue to reshape global trade dynamics, with far-reaching economic consequences.

🔹 For the US – Rising consumer prices, inflation risks, and potential economic slowdowns.
🔹 For China – Increased economic pressure but continued retaliation through regulatory measures.
🔹 For India – A mixed impact:
✅ Gains in US market share due to trade diversions.
❌ Risk of being caught in future US tariffs if trade imbalances grow.

As tensions persist, global markets, businesses, and policymakers must navigate trade uncertainties carefully, balancing economic interests with geopolitical realities.