GS Paper 2

India–EU FTA: opportunities, challenges and strategic significance

The India - EU Free Trade Agreement is a landmark trade pact between India and the European Union that aims to deepen economic ties through extensive tariff reductions, expanded services access, and improved investment flows. The EU will provide preferential access covering nearly all of India’s export value, benefiting labour-intensive sectors such as textiles, leather, and marine products, while also opening opportunities in IT and professional services. At the same time, India will gradually lower tariffs on a large share of EU goods with safeguards for sensitive sectors. However, strict EU regulatory standards, sustainability norms, and carbon-related measures remain key challenges that could limit gains unless Indian industries upgrade compliance capacity. Overall, the agreement strengthens India’s integration with a major global market while requiring domestic reforms to fully realize its benefits.

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France is Banning Social Media for Kids Under 15 Years

France’s National Assembly has cleared a bill banning social media for under-15s, mandating age verification by platforms like TikTok and Instagram under Arcom’s oversight. Aligned with the Digital Services Act, it tackles youth mental health risks but highlights privacy and tech challenges, offering lessons for India.

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CARBON BORDER ADJUSTMENT MECHANISM (CBAM) IMPACT ON INDIA: CHALLENGES & OPPORTUNITIES

The EU’s CBAM from January 2026 will tax carbon-intensive Indian exports, citing carbon leakage. India sees it as protectionist and against CBDR, hurting MSMEs. India plans a WTO challenge while building a domestic carbon market to retain revenue and drive its green transition.

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LAW ON SUSPENSION OF SENTENCE EXPLAINED

The Supreme Court stayed Kuldeep Sengar’s sentence suspension, rejecting a narrow Indian Penal Code reading by the Delhi High Court that weakened POCSO Act protections. Favoring interpretation and victim safety, the ruling exposes gaps and urges unified “public servant” definitions.

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THAILAND - CAMBODIA CONFLICT EXPLAINED

Recent armed clashes between Thailand and Cambodia over the Preah Vihear temple revive a colonial-era border dispute despite ICJ rulings affirming Cambodian sovereignty. Nationalism fuels tensions, testing ASEAN’s conflict-resolution role, destabilizing the region. De-escalation and respect for law are essential.

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DHRUV FRAMEWORK EXPLAINED: ONE NATION, ONE ADDRESS SYSTEM

India Post’s Dhruva framework will assign a Digital Address Code to every location using ISRO’s Bhuvan platform to fix vague addressing. It can boost logistics, governance, and planning, but faces hurdles of massive data collection, privacy under Puttaswamy, digital divide, and inter-agency coordination.

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GLOBAL MULTIDIMENSIONAL POVERTY INDEX(MPI) 2025 REPORT

The 2025 Global Multidimensional Poverty Index highlights a “double burden” as 1.1 billion poor people face rising climate shocks. Nearly 80%—mostly in South Asia and Sub-Saharan Africa—endure floods, droughts, or heat. Despite India’s progress, gains remain fragile, demanding urgent integration of climate resilience into poverty strategies.

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DOWRY SYSTEM IN INDIA: LAW, CHALLENGES, WAY FORWARD

Dowry results in violence against women, leading to deaths and severe harassment, particularly among vulnerable socioeconomic groups. Despite stringent laws, including the new Bharatiya Nyaya Sanhita (BNS), its practice persists due to social sanction, patriarchy, and low conviction rates, highlighting a wide gap between law and implementation.

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H-1B VISA CHALLENGES FOR INDIA

The H-1B visa program facing challenges due to the shift from a lottery-based system to a wage-based model, driven by "America First" sentiments. This could accelerate India's brain drain but also spur domestic innovation and localized business models. The debate calls for strategic policy responses to protect the diaspora and leverage skilled workforce for national development.

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TARIFFS AND THE US ECONOMY: IMPACT ON INDIA AND WAY FORWARD

The US's "Trumponomics" strategy, which includes tariffs, has significantly impacted the global economy, triggering trade wars and disrupting supply chains. India faces both challenges like potential export losses and currency devaluation, and opportunities to reposition itself in the global market. A strategic response focusing on diversification and competitiveness is crucial.

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ONLINE GAMING REGULATION: CHALLENGES AND WAY FORWARD

The Promotion and Regulation of Online Gaming Bill, 2025, proposes a ban on online money games, including skill-based ones like fantasy sports, to combat addiction, financial losses, and illicit activities. However, it also raises concerns about job losses and the rise of the illegal betting market, highlighting constitutional ambiguities.

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INDIA-ASEAN RELATIONS: BACKGROUND, CHALLENGES, WAY FORWARD

India-ASEAN ties, rooted in economic, cultural, and strategic convergence, are vital for regional stability and prosperity. Tackling trade imbalances and connectivity delays, while enhancing defence, digital, and energy cooperation, will deepen this Comprehensive Strategic Partnership, counterbalance China’s influence and advance India’s Act East Policy for an inclusive Indo-Pacific.

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