Short notes on Current Affairs 27.01.2026

India–European Union Free Trade Agreement (India–EU FTA)

Context & Announcement

  • The India–EU Free Trade Agreement (FTA) was jointly announced by Prime Minister Shri Narendra Modi and European Commission President H.E. Ms. Ursula von der Leyen.
  • Announcement was made at the 16th India–EU Summit, held during the visit of European leaders to India.
  • The conclusion of the FTA marks a historic milestone in India–EU economic and trade relations.
  • It positions India and the EU as trusted partners committed to open markets, predictability, and inclusive growth.

Negotiation Background

  • FTA negotiations were re-launched in 2022 after a prolonged pause.
  • The agreement is the culmination of years of sustained dialogue, political will, and cooperation.
  • The FTA is designed as a balanced, modern, and rules-based economic partnership.

Economic Significance of India–EU Relationship

  • The European Union is one of India’s largest trading partners.
  • Trade figures (2024–25):
    • Goods trade: INR 11.5 lakh crore (USD 136.54 billion)
      • Indian exports: INR 6.4 lakh crore (USD 75.85 billion)
      • Imports from EU: INR 5.1 lakh crore (USD 60.68 billion)
    • Services trade: INR 7.2 lakh crore (USD 83.10 billion)
  • India and the EU are the 4th and 2nd largest economies globally.
  • Together they account for 25% of global GDP and one-third of global trade.
  • Integration of the two economies is expected to generate unprecedented trade and investment opportunities.

Key Political & Strategic Statements

  • Union Commerce and Industry Minister Shri Piyush Goyal described the FTA as:
    • One of the most consequential FTAs in India’s trade history.
    • A strategic partnership, not merely a conventional trade deal.
  • The agreement aligns with India’s strategy of securing trusted, mutually beneficial, and balanced partnerships.
  • Strongly supports Make in India, job creation, innovation, and global competitiveness.

Market Access & Trade in Goods

  • India secured unprecedented market access for over 99% of its exports (by trade value) to the EU.
  • Tariffs up to 10% eliminated on nearly USD 33 billion worth of Indian exports upon entry into force.
  • Major beneficiary sectors:
    • Textiles and apparel
    • Leather and footwear
    • Marine products
    • Gems and jewellery
    • Handicrafts
    • Engineering goods
    • Automobiles
  • The agreement strengthens labour-intensive sectors, benefiting workers, artisans, MSMEs, women, and youth.
  • Indian businesses gain deeper integration into global value chains.

Automobile Sector Provisions

  • Includes a calibrated, quota-based auto liberalisation package.
  • Allows EU automakers to introduce higher-end models in India.
  • Encourages Make in India, future exports from India, and technology transfer.
  • Indian consumers benefit from high-tech vehicles and greater competition.
  • Reciprocal access opens EU markets for India-made automobiles.

Agriculture & Processed Food

  • Provides a transformative boost to India’s agricultural and food-processing sectors.
  • Enhanced competitiveness for:
    • Tea, coffee, spices
    • Fresh fruits and vegetables
    • Processed foods
  • Strengthens rural livelihoods and inclusive growth.
  • Sensitive sectors such as dairy, cereals, poultry, soymeal, and select fruits/vegetables are safeguarded.

Services Trade & Market Access

  • Services are a dominant and fast-growing component of both economies.
  • FTA ensures:
    • Certainty of market access
    • Non-discriminatory treatment
    • Promotion of digitally delivered services
  • EU offers access to 144 services subsectors, including:
    • IT and IT-enabled services
    • Professional services
    • Education
    • Other business services
  • India offers access to 102 services subsectors to the EU.
  • Expected to boost Indian service providers’ global competitiveness and attract high-tech EU investments.

Mobility & Movement of Professionals

  • Establishes a predictable and facilitative mobility framework.
  • Covers:
    • Short-term and temporary business travel
    • Intra-Corporate Transferees (ICTs)
    • Business Visitors
  • Provides entry and working rights for dependents and families of ICTs.
  • EU commitments include:
    • 37 sectors for Contractual Service Suppliers (CSS)
    • 17 sectors for Independent Professionals (IP)
  • Framework for:
    • Student mobility
    • Post-study work opportunities
    • Engagement on Social Security Agreements over five years
  • Secures access for practitioners of Indian Traditional Medicine in EU member states where unregulated.

Non-Tariff Barriers & Trade Facilitation

  • Strengthens mechanisms to address non-tariff barriers.
  • Enhances:
    • Regulatory cooperation
    • Transparency
    • Customs procedures
    • Sanitary and Phytosanitary (SPS) measures
    • Technical Barriers to Trade (TBT)

Climate, CBAM & Sustainability

  • Includes commitments related to the EU’s Carbon Border Adjustment Mechanism (CBAM).
  • Secures:
    • Most-Favoured Nation (MFN) assurances
    • Flexibilities extended to India if granted to third countries
    • Technical cooperation on carbon pricing
    • Recognition of verifiers
    • Financial and technical assistance to reduce emissions
  • Supports India’s transition towards low-carbon and sustainable growth.

Financial Services & Digital Trade

  • Promotes cooperation in:
    • Financial innovation
    • Cross-border electronic payments
  • Provides enhanced market access for Indian financial services in major EU economies.
  • Expected to deepen financial integration and services trade.

Intellectual Property & Knowledge Protection

  • Reinforces TRIPS-compliant intellectual property protections.
  • Covers:
    • Copyrights, trademarks, designs, trade secrets
    • Plant varieties and IPR enforcement
  • Affirms the Doha Declaration.
  • Recognises and supports Traditional Knowledge Digital Library (TKDL) to protect indigenous knowledge.

Technology & Future Cooperation

  • Facilitates cooperation in:
    • Artificial Intelligence
    • Clean technologies
    • Semiconductors
  • Supports India’s technological advancement and innovation ecosystem.

Strategic Impact & Future Outlook

  • Expected to:
    • Substantially scale up bilateral trade
    • Enhance export competitiveness
    • Integrate Indian firms into European and global value chains
  • Embeds review, consultation, and response mechanisms to address evolving trade and regulatory challenges.
  • Strengthens economic and strategic cooperation with the 27-member EU bloc.

FTA Landscape & Broader Implications

  • EU becomes India’s 22nd FTA partner.
  • Since 2014, India has signed FTAs with:
    • Mauritius, UAE, Australia, EFTA, Oman, UK
    • Announced trade deal with New Zealand
  • India–EU FTA, along with FTAs with UK and EFTA, effectively opens the entire European market to Indian exporters.
  • Aligns with India’s long-term vision of “Viksit Bharat 2047”.
  • Positions India as a dynamic, reliable, and forward-looking global trade partner, fostering inclusive and resilient growth.

Department of Posts – Stock Holding Services Limited Agreement

Background & Context

  • The Department of Posts (DoP) under the Ministry of Communications, Government of India, signed an agreement with Stock Holding Services Limited (SSL).
  • The agreement was signed on 27 January 2026 at Dak Bhawan, New Delhi.
  • The objective is to promote citizen access to regulated capital market services across India.

Rationale for the Agreement

  • India Post has a vast nationwide network of over 1.65 lakh post offices, with deep penetration in rural, remote, and underserved areas.
  • India Post enjoys high public trust, making it an effective channel for financial outreach.
  • The partnership aims to bridge the gap between citizens and organized capital markets, especially for first-time investors.

Key Objectives of the Collaboration

  • Encourage wider participation in regulated capital markets.
  • Promote financial inclusion and investor awareness.
  • Leverage India Post’s digital transformation to deliver citizen-centric financial services.
  • Align with the national vision of “Viksit Bharat 2047.”

Services Offered Under the Agreement

  • Citizens can access SSL services through:
    • Digital onboarding links
    • QR codes
    • Official digital platforms
    • Selected post office locations
  • Services include:
    • Opening of demat accounts
    • Opening of trading accounts
    • Mutual fund investments
    • Participation in Initial Public Offerings (IPOs)
    • Other permitted investment products

Role of Stock Holding Services Limited (SSL)

  • Provide transparent, regulated, and secure capital market services.
  • Conduct investor education and financial literacy programmes.
  • Focus on first-time investors and citizens from rural and semi-urban areas.
  • Enhance awareness of capital market participation and risks.

Role of the Department of Posts

  • Facilitate citizen access to SSL’s services using its:
    • Physical post office infrastructure
    • Digital platforms
  • Support financial literacy and investor education initiatives.
  • Act as a trusted interface between citizens and capital market institutions.

Significance of the Partnership

  • Strengthens investor awareness and financial literacy.
  • Empowers citizens to participate safely in capital markets.
  • Contributes to economic growth by expanding the investor base.
  • Supports India Post’s transformation into a digitally enabled, citizen-centric service delivery institution.
  • Reinforces the government’s broader agenda of inclusive economic development.

Overall Impact

  • The agreement represents a strategic convergence of public infrastructure and financial market expertise.
  • It is expected to significantly enhance financial inclusion, citizen empowerment, and trust-based access to capital markets, particularly in rural and remote regions.

Development of Smart and Integrated Fishing Harbour at Mayabunder

Project Approval & Funding

  • Project: Smart and Integrated Fishing Harbour at Mayabunder, Andaman & Nicobar Islands.
  • Approval: By the Department of Fisheries, Ministry of Fisheries, Animal Husbandry & Dairying, Government of India.
  • Estimated Cost: ₹199.24 crore, with 100% Central Financial Assistance under Pradhan Mantri Matsya Sampada Yojana (PMMSY).
  • Alignment: Project aligns with Blue Port Initiative principles.

Key Features of the Harbour

  • Safe landing and berthing facilities for 430 fishing vessels.
  • Annual fish landing capacity: 9,900 tonnes.
  • Incorporates latest technology and IoT-enabled systems for operational efficiency.
  • Focus on sustainable fisheries management, fish-handling capacity, energy-efficient systems, digital traceability, and operational safety.
  • Expected to combat Illegal, Unreported, and Unregulated (IUU) fishing.
  • Employment generation across the fisheries value chain and enhanced stakeholder incomes.

Fisheries Potential in Andaman & Nicobar Islands

  • Marine Resource Base: 6 lakh sq. km of Exclusive Economic Zone (EEZ).
  • Tuna Potential: ~60,000 MT of tuna and tuna-like species; includes 24,000 MT Yellowfin tuna and 2,000 MT Skipjack tuna.
  • Investment Catalysis: Investors’ meet held on 14 November 2024 at Swaraj Dweep for tuna fishing, seaweed, and allied infrastructure.
  • Tuna Cluster Notification: Under PMMSY to strengthen infrastructure, training, investor partnerships, and global competitiveness.

India’s Fisheries Sector Overview

  • Public Investment: Over ₹39,000 crore in production, infrastructure, technology, fisher welfare, and post-harvest value chains.
  • Fish Production: More than doubled from 96 lakh tonnes (2013–14) to 197.75 lakh tonnes (2024–25).
  • Seafood Exports: Doubled in value to ₹62,408 crore, with over 350 product varieties exported to ~130 countries.
  • Target: Achieve One Lakh crore seafood exports by 2030–31.

PMMSY Interventions in Andaman & Nicobar Islands

  • Total Investment: ₹5,573.02 lakh in fisheries infrastructure and livelihood support.
  • Infrastructure Development:
    • 5 freshwater finfish hatcheries.
    • 7 backyard ornamental rearing units.
    • 23.2 ha new brackishwater ponds, 17.9 ha freshwater grow-out ponds.
    • Fish feed production units, insulated vehicles, refrigerated transport.
    • Fish kiosks and bio-toilets for mechanised vessels.
  • Fisher Welfare: Livelihood and nutritional support to 1,000 traditional fisher families.
  • IT-Enabled Services: 280 Sagar Mitras deployed; 300 communication/tracking devices for fishing vessels.
  • Cold Chain & Value Addition: Modernised and expanded cold storage facilities (10–20 ton), ice plants, e-rickshaws with ice boxes, and fish value-add units.

Expected Outcomes

  • Employment Generation: Across the fisheries value chain.
  • Enhanced Livelihoods: Better incomes for fishers and stakeholders.
  • Sustainability: Promotes environmentally friendly and traceable fishing practices.
  • Export Readiness: Strengthens infrastructure for export-oriented fisheries growth.
  • Resilience: Coastal communities become more resilient with sustainable and diversified fisheries.

Strategic Importance

  • Unlocks fisheries potential of the Andaman & Nicobar Islands.
  • Contributes to SDGs, particularly sustainable livelihoods and responsible consumption/production.
  • Advances India’s goal of modern, technologically enabled, and globally competitive fisheries sector.

Symposium on International Automotive Technology (SIAT) 2026

Event Overview

  • Union Minister for Heavy Industries and Steel Shri H. D. Kumaraswamy inaugurated the three-day Symposium on International Automotive Technology (SIAT) 2026 in Pune.
  • The event is organised by Automotive Research Association of India (ARAI) in association with Society of Automotive Engineers (SAE International) and SAEINDIA.
  • SIAT 2026 coincides with ARAI’s Diamond Jubilee Year, marking 60 years of contribution to India’s automotive research, testing and certification ecosystem.

Strategic Importance of ARAI

  • The Minister praised ARAI’s role in strengthening vehicle safety, emissions compliance and innovation.
  • ARAI was described as a transformative institution in India’s automotive and mobility landscape.
  • New facilities inaugurated at ARAI’s Mobility Research Centre (MRC), Takwe, aim to enhance safety, security and advanced R&D capabilities.

India’s Economic & Industrial Context

  • India has become the world’s 4th-largest economy, with a GDP of USD 4.18 trillion.
  • India is on track to become the 3rd-largest economy, with projected GDP of USD 7.3 trillion by 2030.
  • Automotive manufacturing is positioned as a key pillar of India’s industrial growth.

Vision for Sustainable Mobility

  • India has committed to achieving net-zero emissions by 2070 under the leadership of Prime Minister Narendra Modi.
  • The Government is aligning automotive growth with Make in India and Aatmanirbhar Bharat initiatives.
  • Electric mobility is identified as central to reducing fossil fuel imports, lowering emissions and creating jobs.

Government Policy Initiatives for EV Adoption

  • FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles)-II Scheme
    • Outlay: ₹11,500 crore
    • Supported adoption of 16.71 lakh electric vehicles
    • Enabled sanctioning of 9,000+ public charging stations
  • PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) Scheme
    • Outlay: ₹10,900 crore
    • Enabled sale of over 20 lakh electric vehicles
    • Includes ₹2,000 crore for installing 70,000+ charging stations, with focus on commercial vehicles
  • PLI (Production Linked Incentive) Auto Scheme
    • Outlay: ₹25,938 crore
    • Promotes domestic manufacturing, value addition and global competitiveness
  • PLI-ACC Battery Scheme
    • Target: 50 GWh Advanced Chemistry Cell manufacturing capacity
    • Aims to strengthen energy security and supply chain resilience
  • Rare Earth Permanent Magnet (REPM) Scheme
    • Outlay: ₹7,280 crore
    • Focus on indigenous production for EVs, wind energy, defence and electronics

Focus on Commercial Vehicle Electrification

  • Commercial vehicles account for over 40% of transport-related pollution.
  • Electrification of this segment is identified as a priority area for emissions reduction.

Automotive Industry Performance

  • Vehicle production
    • Increased from 28.4 million units (FY 2023–24) to 31 million units (FY 2024–25)
  • Vehicle exports
    • Increased from 4.5 million units to 5.36 million units
  • Growth reflects success of policy support, manufacturing expansion and global competitiveness.

Innovation, Startups & MSMEs

  • Strong participation from MSMEs and startups at SIAT 2026.
  • ARAI’s outreach and incubation initiatives are nurturing innovation and entrepreneurship.
  • Exhibition showcased advances in vehicle safety, electrification, testing, connected mobility and efficiency.

Overall Significance

  • SIAT 2026 is positioned as a global knowledge-sharing platform for researchers, industry leaders and policymakers.
  • The symposium supports India’s vision of Viksit Bharat, clean mobility, and a resilient, innovation-driven automotive ecosystem.
  • Reinforces India’s ambition to become a global hub for future-ready automotive technologies.

WaSH Warriors

Event Overview

  • The Ministry of Jal Shakti organised a ‘Samvad Samaroh’ and recognition programme for WaSH Warriors at PSOI, New Delhi.
  • The event aimed to honour grassroots leaders who have demonstrated exemplary work in water conservation, sanitation, and hygiene (WaSH).
  • It highlighted the Ministry’s emphasis on community-led development and Jan Bhagidari as central to national water and sanitation initiatives.

National Recognition & Republic Day Participation

  • 58 WaSH Warriors nominated by States and Union Territories under the Jal Jeevan Mission (JJM) participated in the programme.
  • They were invited as Special Guests to the Republic Day Parade at Kartavya Path on 26 January 2026.
  • The recognition symbolised the Government’s acknowledgement of rural and community contributions to nation-building.

Profile of Selected WaSH Warriors

  • The honourees were drawn from Swachh Sujal Gaon villages, representing:
    • Rural households
    • Poor and marginalised communities
    • Scheduled Caste (SC) and Scheduled Tribe (ST) majority villages
    • Vulnerable tribal groups
  • Their work showcased inclusive, equitable, and community-owned solutions to water and sanitation challenges.

Swachh Sujal Gaon Concept

  • A Swachh Sujal Gaon is:
    • Har Ghar Jal certified under the Jal Jeevan Mission
    • ODF Plus Model verified under the Swachh Bharat Mission (Grameen)
  • The concept integrates safe drinking water, sanitation, and hygiene into a unified rural development framework.

Grassroots Experiences Shared

  • Chhattisgarh: Access to household tap water reduced time spent fetching water, improved health outcomes, and empowered women.
  • Gujarat: Community-led systems such as model wells ensured sustainable water supply and received district-level recognition.
  • Nagaland: Availability of tap water improved women’s daily lives and reduced waterborne diseases like diarrhoea among children.
  • Assam: Improved water quality led to better health and enabled sustained hygiene and conservation practices among children and adults.

Impact of Jal Jeevan Mission (JJM)

  • JJM has benefited over 9.5 crore women by reducing the drudgery of fetching water.
  • It has saved an estimated 4.5 crore hours of women’s time, improving well-being and safety.
  • Functional household tap connections have led to:
    • Improved public health
    • Enhanced dignity and safety for women
    • Greater community ownership of water assets

Focus on Behaviour Change & Youth Engagement

  • The Minister stressed that Swachhata is a way of life, not just a slogan.
  • Youth engagement initiatives such as Youth for Ganga – Youth for Yamuna aim to build water conservation awareness among students.
  • Emphasis was placed on Jal Sanchay (water conservation) and responsible water use through collective action.

Knowledge Dissemination & Documentation

  • A JJM publication titled “Peyjal: Jan Shakti Ki Abhivyakti – Volume II” was released.
  • The booklet documents inspiring stories of WaSH Warriors and their grassroots leadership.

Overall Significance

  • The programme reinforced the role of community participation as a cornerstone of India’s water and sanitation success.
  • It highlighted the transition from infrastructure-driven schemes to people-centric, sustainable solutions.
  • The initiative aligns with broader national goals of inclusive development, women empowerment, public health improvement, and sustainable water management.

India–Canada Joint Statement on Energy Cooperation

Context & High-Level Engagement

  • The Joint Statement was issued during India Energy Week 2026 (IEW’26) held in Goa.
  • Canadian Energy and Natural Resources Minister H.E. Timothy Hodgson participated at IEW for the first time at Cabinet level, marking a milestone in bilateral engagement.
  • A bilateral meeting was held with India’s Minister of Petroleum and Natural Gas, H.E. Shri Hardeep Singh Puri.
  • The meeting led to the launch of the renewed India–Canada Ministerial Energy Dialogue.

Strategic Background

  • The engagement follows directions from the Prime Ministers of India and Canada during the G7 Summit (June 2025, Kananaskis, Canada).
  • Both leaders had emphasised the need to restart senior ministerial and working-level engagements, especially in strategic sectors like energy.

Shared Strategic Vision

  • Both countries reaffirmed the critical role of energy security and diversity of supply for:
    • Economic growth
    • National safety
    • Public wellbeing
  • The Ministers acknowledged the complementary nature of the Indian and Canadian energy sectors.

India–Canada Energy Complementarity

  • Canada’s strengths:
    • Aspires to become an energy superpower in both clean and conventional energy.
    • Focus on export diversification, especially to Asia.
    • Expanding LNG projects, crude oil exports via the Trans Mountain Expansion (TMX) Pipeline, and LPG exports through its west coast.
  • India’s position:
    • World’s 3rd largest oil consumer
    • 4th largest LNG importer
    • 3rd largest LPG consumer
    • 4th largest refining capacity
    • Expected to contribute over one-third of global energy demand growth over the next two decades.
  • This creates a natural, symbiotic partnership based on scale, stability, and long-term demand.

Energy Trade & Fuel Cooperation

  • Ministers agreed to deepen bilateral energy trade, including:
    • Supply of Canadian LNG, LPG, and crude oil to India
    • Supply of refined petroleum products from India to Canada
  • Both sides recognised strong potential for collaboration across conventional energy fuels.

Investment & Commercial Partnerships

  • Canada’s initiatives:
    • Launched a Major Projects Office (2025) to fast-track energy and resource projects.
    • Announced acceleration of projects worth over USD 116 billion.
  • India’s initiatives:
    • Highlighted major policy reforms and a USD 500 billion investment opportunity across the energy value chain.
  • Both Ministers agreed to promote long-term, reciprocal investments in each other’s energy sectors.

Climate & Energy Transition Cooperation

  • Both sides recognised the need to align energy growth with climate objectives.
  • Focus areas include:
    • Emission reduction in conventional energy via Carbon Capture, Utilization and Storage (CCUS).
    • Deployment of cleaner technologies as energy demand grows.
  • Identified high potential for cooperation in:
    • Renewable energy
    • Hydrogen
    • Biofuels and Sustainable Aviation Fuel (SAF)
    • Battery storage
    • Critical minerals
    • Clean technologies
    • Electricity systems
    • Energy supply chain resilience
    • Artificial Intelligence applications in the energy sector

Multilateral & Global Cooperation

  • Both Ministers noted ongoing collaboration under the Global Biofuels Alliance (GBA).
  • Canada currently participates in the GBA as an observer.
  • Emphasis on contributing to the global energy transition through shared platforms.

Key Affirmations by Both Sides

  • Reaffirmed the importance of diversified and secure energy supply chains, with:
    • India as a major consumer
    • Canada as a reliable and secure supplier
  • Commitment to:
    • Strengthen energy trade, including services
    • Continue Government-to-Government dialogue, especially through the Ministerial Energy Dialogue
    • Enable Business-to-Business (B2B) and Business-to-Government (B2G) collaboration
    • Support climate objectives through bilateral, multilateral, and industry partnerships

India Energy Week 2026

Overview of India Energy Week

  • India Energy Week (IEW) is India’s flagship global energy platform, convening:
    • Government leaders
    • Industry executives
    • Innovators and investors
  • Purpose: Accelerate progress toward secure, sustainable, and affordable energy globally.
  • IEW acts as a neutral international forum to drive:
    • Investment
    • Policy alignment
    • Technological collaboration
  • IEW 2026 hosted in Goa with 75,000+ energy professionals, 700+ companies, and participants from 120+ countries.

Thematic Zones

  • 11 strategically curated thematic zones, each focusing on priority energy areas:
    1. Hydrogen Zone
    2. Renewable Energy
    3. Digitalisation & AI
    4. Biofuels
    5. LNG Ecosystem
    6. City Gas Distribution
    7. Petrochemicals
    8. Make in India
    9. India Net-Zero Zone
      (Two other zones focused on emerging clean technologies and energy innovation)

Hydrogen Zone

  • Inaugurated by Union Minister Shri Hardeep Singh Puri.
  • Hosted by Oil India, showcasing cutting-edge hydrogen technologies:
    • Production, storage, and utilisation.
  • Highlights the role of hydrogen in decarbonising “hard-to-abate” sectors:
    • Refining
    • Fertilisers
    • Steel
    • Mobility
  • Positions India as a competitive global player in emerging hydrogen markets.
  • Facilitates direct engagement between policymakers, investors, and technology providers.

Ministerial Panel – Day 1

  • Theme: “Charting a Course through Uncertainty: Securing Affordable, Accessible and Sustainable Energy in a Turbulent World”
  • Panelists:
    • Shri Hardeep Singh Puri, India
    • HE Tim Hodgson, Canada
    • HE Jassim Al Shirawi, Secretary General, IEF
  • Key discussion points:
    • Global energy uncertainty due to:
      • Geopolitical tensions
      • Shifting trade dynamics
    • Rising demand from emerging economies
    • Accelerating energy transition
  • Agreed that no single transition pathway fits all countries.

India’s Perspective

  • Energy availability is central to economic growth and national resilience.
  • India has navigated global turbulence successfully via:
    • Diversifying energy sources
    • Expanding supplier geographies
    • Implementing energy sector reforms
  • Ambitions:
    • Increase the share of natural gas in the energy mix.
    • Promote realistic, collaborative transition pathways.
  • Emphasis on energy addition vs abrupt replacement to maintain stable, predictable markets.

Canada’s Perspective

  • Canada stressed the importance of trusted partnerships and diversified supply chains amid a fragmented global energy market.
  • Canada’s capabilities:
    • Major producer of oil, gas, and critical minerals
  • Areas of potential collaboration with India:
    • LNG supply
    • Oil exports
    • Critical minerals
    • Long-term energy trade
  • Advocated for free trade, reliability, and non-coercive energy relationships among middle powers.

Global Perspective – IEF

  • Rising global energy demand driven by:
    • Population growth
    • Urbanisation and industrialisation
    • Digitalisation and improving living standards
  • Oil and gas remain critical feedstocks even as renewables expand.
  • Risks to energy security:
    • Underinvestment
    • Grid constraints
    • Supply chain concentration and fragmentation
  • Emphasis on balanced dialogue between producers and consumers to ensure a smooth transition.

Key Takeaways / Strategic Insights

  1. IEW 2026 reinforces India’s role as a global energy hub and facilitator of international dialogue.
  2. Hydrogen and emerging technologies are core to India’s clean energy ambitions.
  3. Global energy uncertainty requires:
    • Realistic policy frameworks
    • Sustained investments
    • Diversified supply chains
  4. India–Canada energy partnership is strategically important for:
    • LNG and oil supply security
    • Critical minerals collaboration
    • Long-term energy trade
  5. Energy transition strategy:
    • Inclusive, resilient, and affordable
    • Combines fossil fuels, gas, renewables, and emerging technologies
  6. IEW serves as a platform for technology, investment, and policy convergence, connecting global stakeholders.

National Household Income Survey (NHIS) & Annual Survey of Incorporated Service Sector Enterprises (ASISSE)

1. Organizing Authority and Workshop

  • Organizer: National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), Government of India.
  • Event: All-India Workshop of Trainers (AIWOT) in Chennai.
  • Dates: 28th–29th January 2026.
  • Purpose: Preparatory training for field personnel before the digital-mode nationwide survey launch in April 2026.
  • Participants:
    • Senior officers from various NSO divisions.
    • Field functionaries from Zonal, Regional, and Sub-Regional Offices.
    • Master Trainers for subsequent zonal/regional trainings.

2. National Household Income Survey (NHIS)

  • Scope: Pan-India, first-ever household income survey.
  • Objective: Collect comprehensive information on:
    • People’s living conditions.
    • Income distribution.
    • Socio-economic disparities.
  • Uses of Data:
    • Analysis of relationship between income patterns and economic activity.
    • Assessment of returns to labour, capital, and land.
    • Policy formulation for universal and targeted interventions.
    • Inter-household and inter-regional income comparisons.
    • Evaluation of household well-being and access to essential goods/services.
  • Significance: Addresses long-standing data gaps in household income and economic wellbeing.

3. Annual Survey of Incorporated Service Sector Enterprises (ASISSE)

  • Scope: Nationwide survey of corporate service sector enterprises.
  • Coverage: Corporate entities in services; enterprise-based approach using GSTN framework.
  • Objective: Develop a comprehensive database for the corporate services sector.
  • Key Data Captured:
    • Gross Value Added (GVA)
    • Fixed capital and capital formation
    • Employment and emoluments
    • State-wise and industry-level estimates
  • Significance: Provides critical inputs for policy decisions, economic planning, and sectoral analysis.

4. Coverage

  • Entire Indian Union, except for villages in Andaman and Nicobar Islands (logistical challenges).

5. Implementation Timeline

  • Surveys to be conducted for one year, starting April 2026.
  • AIWOT is a training and capacity-building initiative ensuring smooth digital implementation across the country.

6. Strategic Importance

  • NHIS: Fills critical gaps in household income and wellbeing data, supports socioeconomic policy interventions.
  • ASISSE: Strengthens data-driven understanding of the corporate services sector, informing economic planning and reforms.
  • Both surveys together represent a major step toward comprehensive and reliable statistical governance in India.

India–EU Free Trade Agreement – Textile & Apparel Trade

1. Strategic Importance

  • Marks a major milestone in India–EU economic partnership.
  • Modern, rules-based trade agreement designed to address contemporary global challenges.
  • Deepens market integration between the 4th largest economy (India) and the 2nd largest economy (EU).

2. India–EU Textile & Apparel Trade

  • EU: 2nd largest destination for India’s textiles & apparel after the USA.
  • EU textile & apparel imports: USD 263.5 billion in 2024.
  • India’s exports to EU (2024–25): USD 7.2 billion (INR 62.7k crore).
  • Export composition:
    • RMG (Ready-Made Garments): 60%
    • Cotton textiles: 17%
    • Man-made fibre (MMF) textiles: 12%
    • Handicrafts: 4%
    • Carpets: 4%
    • Jute: 1.5%
    • Woollen & Handloom: 0.6% each
    • Silk products: 0.2%

3. Tariff Benefits & Market Access

  • Zero-duty access for textiles and clothing across all tariff lines.
  • Tariff reduction: up to 12% in select items.
  • Expands the EU’s USD 263.5 billion import market for India.
  • Enhances price competitiveness, correcting disadvantages relative to Bangladesh, Pakistan, and Turkey.

4. Economic & Employment Impact

  • Textile sector in India employs ~45 million people directly.
  • Expected benefits:
    • Increased production and capacity utilisation.
    • Boost to employment, especially in labour-intensive MSME clusters.
    • Encourages investment, technology transfer, and sustainability upgrades, especially in MMF, technical textiles, and green manufacturing.

5. Beyond Textiles – Home Décor, Wooden Crafts, Furniture

  • Duty reductions of up to 10.5% improve competitiveness in:
    • Wooden, bamboo, and handcrafted furniture.
    • High-value, design-oriented segments.
  • Supports India’s integration into global furniture supply chains.

6. Regional & Cluster-Level Impact

  • Textile exports are geographically dispersed: 342 districts across India.
  • Cluster-based ecosystem examples:
    • RMG: Tiruppur, Bengaluru, Gurugram–Faridabad (women employment focus).
    • Cotton textiles & home furnishings: Karur, Panipat, Ahmedabad.
    • MMF & synthetic textiles: Surat, Dadra & Nagar Haveli, Mumbai.
    • Traditional/value-added: Handicrafts (Moradabad, Jaipur, Jodhpur), Handlooms (Kanchipuram, Karur, Kolkata), Carpets (Bhadohi, Mirzapur, Varanasi), Jute (Howrah, North & South 24 Parganas), Silk/Woollen (Bengaluru, Mysuru, Bhagalpur).

7. Non-Tariff Measures

  • FTA also addresses non-tariff barriers:
    • Regulatory cooperation
    • Customs facilitation
    • Transparency
    • Predictable trade rules

8. Complementarity with Other FTAs

  • Alongside FTAs with UK and EFTA, the EU FTA opens European markets for Indian exporters, MSMEs, and entrepreneurs.
  • Supports export diversification efforts of the Ministry of Textiles.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top