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Current Affairs 31 October 2025

  1. What Will Power AI Data Centres?
  2. Sardar Patel’s Vision and Meaning of National Unity Today
  3. Building a Sustainable and Inclusive Future with Indian PSUs
  4. In U-turn, US Gives 6-Month Sanction Relief to Chabahar
  5. After ASEAN Summit: Group’s Importance for India amid US–China Tussle
  6. Land beneath India’s five largest cities is sinking due to over-extraction of groundwater: Study


 Why in News ?

  • India’s electricity demand, stagnant at around 5% annual growth for two decades, is now rising rapidly due to new high-energy sectors.
  • Key demand drivers: AI & Data Centres, Electric Vehicles (EVs), 5G/IoT, green hydrogen, and digital economy expansion.
  • The US, China, and Big Tech firms are already witnessing 25%+ annual power demand surges from AI data centres.
  • India is planning GW-scale AI data centres (Google at Visakhapatnam, Reliance at Jamnagar) and exploring Small Modular Reactors (SMRs) as clean, reliable energy sources for them.
  • The Union Budget 2025 launched a ₹20,000 crore Nuclear Energy Mission to add 100 GW nuclear capacity by 2047, including SMRs.

Relevance:

  • GS 3 – Energy, Infrastructure, and Technology: AI-driven electricity demand, sustainable energy mix, nuclear innovation through Small Modular Reactors (SMRs), and linkage with the IndiaAI Mission.
  • GS 2 – Governance and Policy: Inter-ministerial coordination between MeitY, MoP, and DAE for energy–technology convergence; clean energy policies under Budget 2025; regulatory reforms for private participation in nuclear energy.
  • GS 3 – Environment: Low-carbon power strategy, Net Zero 2070 alignment, and sustainable infrastructure for digital economy expansion.

Background: India’s Power Demand Trends

  • Past 20 years: Electricity demand grew at ~5% annually — relatively stable due to efficient grids, low industrial expansion, and moderated population growth.
  • Shift (post-2023): Rise in data traffic, EV charging, AI computation, and green hydrogen manufacturing expected to double electricity demand by 2030.
  • India’s per capita electricity consumption (2025): ~1,350 kWh — 1/3rd of global average (~4,000 kWh), but projected to rise steeply.
  • Planning challenge: Aligning digital economy growth with sustainable, low-carbon electricity expansion.

Why India Needs Data Centres

  • Digital India Mission, data localisation laws, and explosive data usage demand domestic storage and processing capacity.
  • Current capacity: 1.4 GW
    • vs. Europe: 10 GW
    • India has 2× more internet users than Europe, yet 1/7th capacity.
  • Expected growth:
    • By 2027: 2–3× increase (to ~4 GW).
    • By 2030: >5× increase (to ~7–8 GW) with AI and LLM infrastructure.
  • Drivers:
    • Data privacy & localisation mandates.
    • 5G and IoT ecosystem.
    • Cloud computing, fintech, and generative AI expansion.

Power Demand from AI Data Centres

  • Traditional server racks: 15–20 kW.
  • AI/LLM GPU racks: 80–150 kW (≈6× higher load).
  • Global data centre electricity usage:
    • 2024: ~460 TWh
    • 2030 (projection): ~1,000 TWh
    • 2035: ~1,300 TWh (~6% of global generation).
  • Case studies:
    • China:
      • Data centre electricity use to reach 400+ billion kWh by 2025 (~4% of total power).
      • CAGR ~18% (2023–2030).
    • US (Dominion, Virginia):
      • Electricity and peak demand projected to rise >25% in 5 years due to data centres.

Data Centre Hubs: Global and Indian

Global

  • US: 51% of global capacity — hubs in Texas, Virginia, Ohio, Phoenix, Wisconsin, Pennsylvania.
  • Other nations: China, Norway, UK, Germany, Japan, Malaysia investing in AI-grade infrastructure.

India

  • Emerging AI data centre clusters:
    • Visakhapatnam (Google) – GW-scale, AI-optimised.
    • Jamnagar (Reliance Industries) – part of IndiaAI Mission.
    • Mumbai, Chennai, Bengaluru, Hyderabad – existing hyperscale hubs (Yotta, AdaniConneX, Sify, CtrlS).
  • IndiaAI Mission (2024):
    • Focus on indigenous AI models, large-scale compute infrastructure, and clean energy linkages.

Powering the AI Era: Energy Mix Options

Renewables

  • Solar, wind, and hydro as clean options but intermittent and storage-dependent.
  • Storage (battery, pumped hydro) still developing — costly for 24/7 AI operations.

Natural Gas & Green Hydrogen

  • Used as backup for renewables ensuring grid reliability.
  • Hydrogen blending and onsite generation emerging in industrial clusters.

Emerging Alternatives

  • Geothermal energy (pilot projects in Ladakh & Gujarat).
  • Nuclear fusion research under ITER collaboration (long-term).

Small Modular Reactors (SMRs) – The Key Innovation

  • SMRs emerging as reliable, low-carbon baseload solution for AI data centres.
  • Range: 1–300+ MW capacity.
  • Advantages:
    • Modular, factory-built → faster deployment.
    • Passive safety systems → no human/manual intervention needed.
    • Can be located near consumption hubs → no transmission losses.
    • Flexible for remote/industrial sites.

Global Investment & Regulation in SMRs

Investment Landscape

  • Total global SMR investment: $15.4 billion
    • $10 billion – public funding
    • $5.4 billion – private capital (tech & energy companies)
  • Big Tech (Google, Microsoft, Amazon) exploring SMR power purchase deals for AI facilities.

Regulatory Reforms (Global Trends)

Six key areas of SMR regulation evolving internationally:

  1. Technology-neutral frameworks (beyond large LWR models).
  2. Streamlined licensing – combined construction-operating licences.
  3. Fleet-wide approvals – enabling standardised mass deployment.
  4. Factory certification – for modular manufacturing.
  5. Risk-informed requirements – proportional safety zones.
  6. International harmonisation – via IAEA standards & mutual recognition.

Leading Regulatory Models

  • U.S. ADVANCE Act (2024) – accelerates SMR licensing.
  • Canada – Vendor Design Review (pre-licensing pathway).
  • UK – Regulatory sandbox approach.
  • IAEA – Nuclear Harmonization and Standardization Initiative (NHSI).

India’s SMR Push

Budget 2025 Initiatives

  • ₹20,000 crore outlay under Nuclear Energy Mission.
  • Target: 100 GW nuclear capacity by 2047.
  • IndiaAI–Nuclear synergy: Aligns AI infrastructure growth with clean baseload energy.

Key Developments

  • BARC’s BSMR-200 – 200 MW Pressurised Heavy Water Reactor (PHWR) variant.
  • 55 MW SMR for remote areas in isolated grid mode.
  • Holtec–India partnership for technology transfer.
  • Private participation reforms:
    • Planned amendments to Atomic Energy Act (1962) & Civil Liability Act (2010).
    • Aims to attract $26 billion private investment.

State-level Role

  • Pre-approval of coal plant sites for SMR conversion.
  • Land facilitation, safety training, and workforce reskilling.
  • Demonstration projects integrated with green hydrogen hubs.

SMR Safety and Environmental Aspects

  • Passive safety features:
    • Natural convection cooling.
    • Automated shutdown systems.
    • Accident-tolerant fuels withstand higher temperatures.
  • Waste & transport regulation:
    • Need for new frameworks addressing factory fabrication, transport risks, and spent fuel disposal.
    • HALEU fuel (high-assay low-enriched uranium) requires specific waste management protocols.
  • IAEA support:
    • SMR Regulators’ Forum.
    • Safeguards by Design Programme – balancing safety, economics, and security.

Opportunities for India

  1. Energy Security – 24/7 baseload for AI infrastructure.
  2. Climate Goals – Low-carbon transition aligned with India’s Net Zero 2070 target.
  3. Export Potential – India can become SMR exporter to Global South via cost-effective indigenous tech.
  4. Industrial Repurposing – Utilize decommissioned coal plant sites.
  5. Employment & Skill Creation – Reskill coal workforce for nuclear operations.

Challenges Ahead

  • Regulatory delays – outdated laws not suited for SMRs.
  • Public perception & safety concerns.
  • Financing barriers – high upfront capital cost despite modularity.
  • Waste disposal & liability – still unresolved.
  • Grid integration – ensuring SMR–renewable hybrid stability.

Core Takeaway

India’s next energy transition will be driven not just by renewables, but by AI-driven demand.
Data centres and SMRs together define the digital–nuclear nexus of the future — where clean, constant power meets the data economy, enabling India’s journey from Digital India to Energy-Secure India by 2047.



 Why in News ?

  • October 31 marks Rashtriya Ekta Diwas (National Unity Day) — commemorating Sardar Vallabhbhai Patel’s birth anniversary (born in 1875).
  • 2025 marks his 150th birth anniversary, celebrated through national events at Ekta Nagar, Gujarat — home to the 182-metre Statue of Unity, the world’s tallest statue.
  • The theme underscores Patel’s nation-building legacy and the renewal of unity in India’s 21st-century diversity.

Relevance:

  • GS 1 – Modern Indian History: Role of Sardar Patel in integrating princely states, building the Indian Union, and shaping post-Independence federal consolidation.
  • GS 2 – Governance and Polity: Federalism, administrative unity through All India Services, and civic nationalism within constitutional democracy.

Background: Sardar Patel’s Historical Role

  • Post-Independence Integration (1947–49):
    • Unified 562+ princely states into the Indian Union through diplomacy, persuasion, and firmness.
    • Handled key accessions — Junagarh, Hyderabad, Jammu & Kashmir — preventing potential fragmentation post-Partition.
    • As Deputy PM & Home Minister, implemented a federal integration model balancing central authority with regional diversity.
  • Vision of Unity:
    • Not “uniformity” but a federation of minds and hearts, bound by shared civilizational ethos.
    • Saw administrative unity as a foundation for political stability and national security.

Evolution of Rashtriya Ekta Diwas

  • Institutionalized in 2014 by the Government of India.
  • Objective: Reinforce that national unity is an ongoing project, not a historical achievement.
  • Celebrated annually through:
    • Run for Unity (public participation campaign).
    • Integrity Pledge by citizens, civil servants, and students.
    • Cultural and patriotic events nationwide promoting solidarity.

Patel’s Vision of Unity: Key Dimensions

Political Unity

  • Integration of princely states ensured India’s territorial and constitutional integrity.
    • Prevented Balkanization, enabling democratic consolidation.

Administrative Unity

  • Advocated All India Services (IAS, IPS) for continuity and national cohesion.
    • Believed a strong Centre was essential for India’s survival amid diversity.

Cultural Unity

  • Emphasized India’s shared civilizational identity — plural yet unified.
    • Saw culture as the emotional and moral fabric sustaining political unity.

Spiritual Unity

  • Rooted in India’s ethos of “Sarva Dharma Sambhava” (equal respect for all faiths).
    • Nationalism grounded in dharma and collective duty, not religious homogeneity.

Contemporary Meaning of National Unity (2025 Context)

Cultural Integration

  • Programmes under Ministry of Culture:
    • Ek Bharat Shreshtha Bharat (EBSB) – State/UT pairing for exchange of language, cuisine, festivals, and arts.
    • Zonal Cultural Centres & National Museums – Promote regional art forms across India.
    • Example: Maharashtra–Assam exchange (Lavani–Bihu) fosters mutual understanding.

Tourism as an Integrator

  • ‘Dekho Apna Desh’ Campaign & ‘Incredible India’ Digital Revamp promote domestic cultural tourism.
  • 2024 Data: Over 294 crore domestic visits, indicating rising citizen engagement with national heritage.
  • Schemes:
    • Swadesh Darshan – Theme-based tourism circuits linking heritage & livelihood.
    • PRASHAD – Pilgrimage rejuvenation linking faith, tourism, and unity.
    • Local livelihood impact: Homestays, handicrafts, and intercultural exchanges (e.g., Nagaland–Gujarat crafts).

Institutional and Policy Unity

  • Panch Pran of Amrit Kaal (2022–2047) reinforce unity as national purpose:
    • Goal of developed India by 2047.
    • Eradication of colonial mindset.
    • Pride in heritage.
    • Strengthening unity and solidarity.
    • Duty of citizens towards nation-building.

Unity through Culture and Connectivity

  • Cultural diplomacy strengthens internal cohesion by celebrating regional contributions.
  • Digital platforms (National Mission on Cultural Mapping, Indian Heritage App) integrate citizens with shared narratives.
  • Inter-state festivals, student exchanges, and tourism circuits convert diversity into experiential unity.

Challenges to Unity Today

  • Regionalism and linguistic chauvinism challenging federal balance.
  • Socio-economic inequalities creating internal divides.
  • Misinformation and polarization fragmenting social cohesion.
  • Neglect of cultural literacy leading to loss of shared heritage consciousness.

Way Forward

  1. Strengthen Cultural Federalism – Recognize diversity as an instrument of national cohesion.
  2. Inclusive Development – Balance between regional aspirations and national priorities.
  3. Civic Nationalism – Move beyond identity politics toward constitutional patriotism.
  4. Cultural Education – Embed civilizational understanding in school curricula.
  5. Digital Integration – Use technology to connect youth across states through shared platforms.

Core Takeaway

Sardar Patel’s unity was not just geographical consolidation — it was emotional, cultural, and civic integration.
In 2025, his legacy endures as Indias moral compass — reminding that national unity is a continuous collective effort, renewed through participation, inclusivity, and pride in diversity.



Why in News ?

  • FY 2023–24 CSR data shows Public Sector Undertakings (PSUs) have emerged as the largest contributors to India’s CSR spending.
  • Total CSR expenditure rose to ₹29,987 crore (up from ₹26,209 crore in FY 2022–23).
  • PSU contribution: ₹5,000 crore, a 19% increase year-on-year — reflecting the integration of sustainability and inclusion into corporate strategy.

Relevance:

  • GS Paper 2 – Governance: CSR as a tool for inclusive governance, policy–corporate convergence, and role of PSUs in social transformation.
  • GS Paper 3 – Economy and Sustainable Development: ESG integration, CSR-linked financing, and green industrial transition under Amrit Kaal Vision 2047.
  • GS Paper 2 – Social Justice: CSR-driven empowerment in health, education, and livelihoods, especially in NE and tribal regions.

Basics: What is CSR ?

  • Definition: Corporate Social Responsibility (CSR) is the ethical obligation of companies to contribute to societal and environmental well-being.
  • Legal Mandate:
    • Introduced under Companies Act, 2013 (Section 135).
    • Mandates companies with net worth500 crore, or turnover ≥ 1,000 crore, or net profit ≥ 5 crore to spend 2% of average net profits (past 3 years) on CSR.
  • CSR Areas: Health, education, environment, rural development, gender empowerment, skill development, and poverty alleviation.

India’s CSR Ecosystem

  • Global Leadership: India is the first country to legally mandate CSR expenditure.
  • CSR as Strategy (Not Charity):
    • Earlier: Philanthropy-driven goodwill.
    • Now: Strategic integration into business models aligned with SDGs and ESG (Environmental, Social, Governance) norms.
  • Regulatory Oversight: Ministry of Corporate Affairs (MCA) monitors through National CSR Data Portal.

CSR Spending Trends (FY 2023–24)

  • Total CSR spending: ₹29,987 crore (↑15% YoY).
  • PSUs’ share: ₹5,000 crore (↑19%).
  • Sectoral Priorities:
    • Healthcare: 25%
    • Environment & Sustainability: 20%
    • Education & Rural Development: 15%
    • Skill Development & Livelihoods: 10–15%
  • Shift in Focus: From short-term charity to long-term sustainability, climate resilience, and inclusive livelihoods.

PSUs as CSR Catalysts

  • PSUs combine economic reach, technical expertise, and public accountability — creating scale and credibility for CSR implementation.
  • Their CSR activities directly contribute to national missions like:
    • Atmanirbhar Bharat (self-reliance)
    • Skill India
    • Swachh Bharat
    • Jal Jeevan Mission
    • Beti Bachao Beti Padhao
    • National Hydrogen Mission

Major PSU-led CSR Initiatives (FY 2023–24)

a) Indian Oil Corporation (IOC)

  • CSR Expenditure (11 years): ₹3,912.33 crore.
  • Focus areas: Rural electrification, renewable energy, women’s empowerment, and health outreach.

b) Oil India Limited (OIL)

  • Flagship Projects:
    • Project Vasundhara: Biodiversity conservation; reforestation & afforestation in Dibrugarh, Assam (Lakhipathar Range).
    • Project KAVACH: Safety, disaster preparedness, and community resilience.
    • Mobile Medical Units: Last-mile healthcare delivery in Assam & NE.

c) GAIL (India) Limited

  • CSR Spend: ₹175.71 crore.
  • Programmes:
    • ELITE: Empowerment through Education, Livelihood, and Technology — builds water systems, sanitation, and micro-enterprises.
    • Sashakt: Women’s economic empowerment through skill-based training & entrepreneurship ecosystems.
    • Focus: Climate action, renewable energy, and education support.

d) Rail Vikas Nigam Limited (RVNL)

  • Skill Development Project: ₹300 crore for local youth near project sites — aligned with “Viksit Bharat 2047”.
  • Digital Literacy Drives & environmental awareness campaigns in collaboration with state governments.

Thematic Focus of PSU CSR

Theme Examples Developmental Link
Health & Nutrition Mobile clinics, sanitation, maternal health SDG 3 (Good Health)
Education & Skilling Oil Swabalamban, RVNL Training SDG 4 (Quality Education), SDG 8 (Decent Work)
Environment & Climate Project Vasundhara, GAIL green projects SDG 13 (Climate Action), SDG 15 (Life on Land)
Gender Inclusion Sashakt, women-led microenterprises SDG 5 (Gender Equality)
Infrastructure & Connectivity Electrification, water systems SDG 9 (Industry, Innovation, Infrastructure)

Regional Impact

  • Backward & Border Regions: CSR focus on North-East, Central India, and tribal belts.
  • Urban Development: Support for smart city components, green mobility, and waste management systems.
  • Bridging Urban–Rural Divide: Integrated CSR for education, healthcare, and livelihoods across geography.

Policy–Corporate Synergy

  • Government’s National Guidelines on Responsible Business Conduct (NGRBC, 2019) align PSUs’ CSR with SDG frameworks.
  • Sustainable Finance & ESG Reporting: CSR data increasingly linked to BRSR (Business Responsibility and Sustainability Reporting).
  • PSUs support flagship missions:
    • Net Zero by 2070
    • Amrit Kaal Vision 2047
    • Make in India + Green Growth

Challenges

  • Inequitable CSR Distribution: Concentration in developed states (Maharashtra, Gujarat, TN) vs. low-spending in NE and hill states.
  • Outcome Measurement Issues: Lack of standardized impact evaluation metrics.
  • Duplication of Efforts: Limited coordination among PSUs, ministries, and NGOs.
  • Short-term Visibility Bias: Some projects remain event-driven, not outcome-oriented.

Way Forward

  • Shift to Outcome-Based CSR: Measure long-term social impact, not mere financial outlays.
  • Cluster Approach: Collaborative CSR among PSUs in the same geography.
  • Integrate CSR with ESG: Build sustainability-linked reporting frameworks.
  • Technology Integration: Use AI, GIS, and digital dashboards for real-time monitoring.
  • Public–Private–Community Partnerships: Co-design projects with local institutions.
  • Focus on Resilient Livelihoods: Green skilling, renewable energy, circular economy.

Conclusion

  • PSUs are transforming CSR from compliance to commitment, blending economic strength with social consciousness.
  • Their initiatives align with SDGs, Amrit Kaal Vision 2047, and Viksit Bharat goals.
  • A sustainable and inclusive future hinges on strengthening CSR–governance convergence, ensuring that growth is both green and equitable.


 In News

  • The U.S. reinstated a 6-month sanctions waiver (effective October 29, 2025) for India’s participation in the Chabahar Port Project in Iran.
  • This marks a policy reversal from the September 18, 2025 decision to withdraw the waiver, which had briefly subjected Indian operations to American sanctions.

Relevance:

  • GS Paper 2 – International Relations: India–Iran–US triangular diplomacy, regional connectivity, and Chabahar Port’s strategic relevance for Afghanistan and Central Asia.
  • GS Paper 3 – Economy: Trade logistics, maritime connectivity, and integration with INSTC for Eurasian access.

Background

  • Chabahar Port: Located in Sistan–Baluchestan Province, Iran, it is the closest Iranian port to India and outside the Persian Gulf, offering direct access to the Indian Ocean.
  • Strategic Location: ~170 km west of Pakistan’s Gwadar Port (developed by China under CPEC).
  • Historical Engagement:
    • 2003–05: Initial Indo-Iran talks for port development.
    • 2015: MoU between India and Iran to jointly develop Shahid Beheshti Terminal at Chabahar.
    • 2016: India–Iran–Afghanistan Trilateral Agreement on the Chabahar International Transport and Transit Corridor during PM Modi’s Iran visit.
    • 2018: U.S. (under Trump) granted sanctions waiver recognizing Chabahar’s importance for Afghanistan’s connectivity and humanitarian supplies.
    • Dec 24, 2018: Indian firm India Ports Global Ltd (IPGL) took over port operations.

Recent Timeline

Date Development
Sep 18, 2025 U.S. revoked waiver citing Iran-related sanctions (IFCPA Act).
Sep 29, 2025 Sanctions regime took effect, impacting Indian participation.
Oct 29, 2025 U.S. reinstated 6-month waiver, citing humanitarian and regional connectivity grounds.

India’s Role and Achievements at Chabahar

  • Investment: ~$25 million (equipment & cranes).
  • Handled: > 90,000 TEUs and 8.4 million metric tons of cargo since 2018.
  • Humanitarian Role:
    • 2.5 million tons of wheat and 2,000 tons of pulses sent to Afghanistan.
    • 40,000 litres of bio-pesticide supplied to Iran (2021).
    • Key supply route during COVID-19 pandemic.

Strategic & Economic Significance

Regional Connectivity

  • Forms a key link in the International North-South Transport Corridor (INSTC) connecting India–Iran–Afghanistan–Central Asia–Russia.
  • Bypasses Pakistan, countering its blockade of Indian access to Afghanistan.
  • Provides India with direct sea-land connectivity to Eurasia.

Strategic Balancing

  • Counters China’s Gwadar Port under CPEC — maintains India’s strategic presence in the region.
  • Strengthens India–Iran cooperation amidst Sino–Pakistani maritime expansion.

Economic Opportunities

  • Facilitates Indian exports to Central Asia and Russia through reduced transit costs and time.
  • Potential future link with INSTC multimodal network via Bandar Abbas and Caspian Sea.

Geopolitical Leverage

  • Demonstrates India’s strategic autonomy — balancing ties with U.S. and Iran simultaneously.
  • Acts as a stabilizing channel for humanitarian trade to Afghanistan, aligning with U.S. humanitarian interests despite sanctions.

U.S. Concerns and Policy Dynamics

  • Sanctions Legal Basis: Iran Freedom and Counter-Proliferation Act (IFCPA), 2012.
  • Waivers are conditional — allowed for non-military, humanitarian, and regional development purposes.
  • September withdrawal reflected Washington’s pressure on Tehran amid renewed tensions (nuclear and regional issues).
  • October reinstatement indicates:
    • Recognition of India’s stabilizing role in Afghanistan.
    • Need for regional connectivity to curb Chinese influence.
    • Tactical move before the U.S. election cycle to avoid alienating India.

Challenges Ahead

  • Short-term waiver (6 months) creates policy uncertainty for long-term planning.
  • Sanctions compliance risks for Indian companies and banks.
  • Iran’s internal instability and shifting U.S.–Iran relations may disrupt continuity.
  • Competition from Gwadar and China’s Belt and Road Initiative remains strong.

Way Forward for India

  • Diplomatic Engagement: Continue strategic dialogue with U.S. to secure longer-term exemptions.
  • Multilateral Coordination: Integrate Chabahar more deeply into INSTC and SCO connectivity frameworks.
  • Operational Expansion: Upgrade infrastructure and enhance throughput capacity beyond the current 8.4 MMT.
  • Financial Shielding: Explore rupee–rial trade and sovereign-backed financial mechanisms to bypass sanction exposure.


 Why in News ?

  • 47th ASEAN Summit and Related Summits concluded in Kuala Lumpur (2025) under Malaysia’s chairmanship.
  • The summit occurred amid rising US–China rivalry and ongoing review of the ASEAN–India FTA (AITIGA).
  • India’s engagement with ASEAN gains renewed significance under Act East Policy and Indo-Pacific Vision.

Relevance:

  • GS Paper 2 – International Relations: India’s Act East and Indo-Pacific strategy, ASEAN centrality, and balancing amid US–China rivalry.
  • GS Paper 3 – Economy: Trade integration, AITIGA review, and supply chain resilience in ASEAN-led frameworks.

Basics: What is ASEAN ?

  • Full Form: Association of Southeast Asian Nations.
  • Founded: 8 August 1967 (Bangkok Declaration).
  • Members (10): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
  • Objectives: Promote regional peace, stability, economic growth, and cultural development.
  • Secretariat: Jakarta, Indonesia.

ASEAN’s Evolution

  • 1967–1976: Political bloc to contain communism.
  • 1976–1990s: Regional stability and dialogue mechanisms (Treaty of Amity and Cooperation 1976).
  • 2000s onward: Economic integration – ASEAN Free Trade Area (AFTA), ASEAN Economic Community (AEC 2015).
  • Present: Second most integrated trade bloc after the EU with 25–30% intra-ASEAN trade.

ASEAN’s Global Role

  • Economic Hub: Combined GDP ≈ $3.9 trillion (2024); 5th largest economy globally.
  • Demographics: 650+ million population; major manufacturing base and logistics corridor.
  • Geostrategic Pivot: Lies at the heart of the Indo-Pacific, central to South China Sea (SCS) security and global supply chains.

US–China Rivalry and ASEAN’s Balancing Act

  • Security–Economy Dichotomy:
    • US: Traditional security provider (military presence, alliances, AUKUS, Quad).
    • China: Largest trading partner for most ASEAN nations.
  • Pressure Points:
    • South China Sea disputes – esp. with Philippines, Vietnam, Malaysia.
    • China’s assertiveness vs. ASEANs neutrality principle (“ASEAN centrality”).
  • ASEAN’s Strategy: Avoid choosing sides; promote “ASEAN-led” platforms (EAS, ARF, ADMM+).

India–ASEAN Relations: Evolution

  • Pre-1990s: Limited engagement due to Cold War alignments.
  • 1992: Look East Policy initiated – political & economic outreach.
  • 2014: Upgraded to Act East Policy – focus on connectivity, commerce, culture, and capacity-building.
  • 2022: 30th Anniversary of Dialogue Relations celebrated as ASEAN–India Friendship Year.

Key Pillars of ASEAN–India Cooperation

a) Connectivity

  • India–Myanmar–Thailand Trilateral Highway (IMT): Connects Manipur to Mae Sot (Thailand) via Myanmar.
  • Kaladan Multimodal Transit Project: Links Kolkata–Sittwe Port–Mizoram.
  • ASEAN–India Connectivity Master Plan 2025: Integrates digital, physical, and people-to-people links.

b) Trade and Investment

  • ASEAN–India Trade in Goods Agreement (AITIGA) – signed 2009, review began 2022 (to conclude 2025).
  • Trade Volume (2024): ~$131 billion; ASEAN = India’s 4th largest trading partner.
  • Challenge: India’s trade deficit >$40 billion with ASEAN (notably with Indonesia, Malaysia, Thailand).
  • Reason: Low tariff advantage, Rules of Origin misuse, non-tariff barriers.

c) Strategic & Security Cooperation

  • Defence dialogues: ADMM-Plus, East Asia Summit, Indian Navy exercises with Singapore, Vietnam, Indonesia, Philippines.
  • Maritime Security: Cooperation on freedom of navigation, anti-piracy, and SCS norms.
  • Counterterrorism & Cybersecurity: ASEAN-India Centre, ASEAN Regional Forum collaboration.

d) Cultural & Civilizational Links

  • Shared Buddhist heritage, linguistic ties, and diaspora networks.
  • Initiatives like ASEAN–India Network of Think Tanks and Scholarship Programs deepen soft power ties.

India’s Strategic Stakes in ASEAN

  • Economic Diversification: Reduces overdependence on China.
  • Indo-Pacific Strategy: Ensures open, inclusive maritime commons.
  • North-East Integration: Enhances regional development and connectivity.
  • Geoeconomic Leverage: Platforms like BIMSTEC, BBIN, IORA complement ASEAN linkages.
  • Supply Chain Resilience: Alternative to China-led networks (aligns with Indo-Pacific Economic Framework – IPEF).

Comparison: ASEAN vs Other Regional Blocs

Group Members Nature India’s Engagement
ASEAN 10 SE Asian states Economic & security integration Sectoral & strategic partner
SAARC 8 South Asian states Political, stagnant due to India–Pakistan issues Non-functional
BIMSTEC 7 Bay of Bengal states Compact, functional Key focus post-SAARC
BBIN 4 (Bangladesh, Bhutan, India, Nepal) Connectivity & trade Sub-regional cooperation
CPTPP 11 Pacific economies High-standard FTA Potential future option for India

Lessons from ASEAN for India

  • Consensus-based gradualism works – incremental trust-building over decades.
  • Economic integration precedes political unity – unlike SAARC’s security-first failure.
  • Institutional continuity and centrality sustain credibility.
  • Compact regional frameworks (BIMSTEC/BBIN) may yield faster results than large blocs.
  • Balance of power diplomacy – ASEAN’s neutrality offers model amid US–China competition.

Way Forward for India

  • Complete AITIGA Review to correct trade asymmetry.
  • Deepen Supply Chain Integration via digital trade, logistics, and fintech cooperation.
  • Strengthen Defence Ties through joint maritime patrols and technology transfers.
  • Accelerate Connectivity Projects in NE region with timelines.
  • Pursue Multi-Alignment: Engage ASEAN-led forums while maintaining strategic autonomy.
  • Explore CPTPP Accession after domestic readiness.
  • Champion ASEAN Centrality within the Indo-Pacific architecture.

Conclusion

  • ASEAN remains pivotal for India’s Act East and Indo-Pacific vision.
  • Amid US–China contestation, ASEAN is both arena and actor shaping Asian geopolitics.
  • For India, sustained engagement with ASEAN through economic pragmatism, strategic partnerships, and connectivity will be crucial to emerge as a regional leader in a multipolar Asia.


Why in News ?

  • A new Nature Sustainability (2025) study revealed that India’s five megacities — Delhi, Mumbai, Kolkata, Bengaluru, and Chennai — are sinking due to excessive groundwater extraction.
  • The study used satellite radar data (2015–2023) to map urban land subsidence, impacting over 13 million buildings and 80 million residents.

Relevance

  • GS 1: Urbanisation, geomorphological processes (subsidence).
  • GS 3: Environmental degradation, water resource management, disaster risk reduction.
  • GS 2: Governance — institutional response through CGWA, Jal Shakti Mission, and Smart Cities.

Key Findings

  • Total subsiding area: 878 sq. km of urban land.
  • Population exposed: 1.9 million people at >4 mm/year subsidence rate.
  • Max subsidence rates:
    • Delhi – 51.0 mm/yr
    • Chennai – 31.7 mm/yr
    • Mumbai – 26.1 mm/yr
    • Kolkata – 16.4 mm/yr
    • Bengaluru – 6.7 mm/yr

City-wise Analysis

Delhi (NCT)

  • Hotspots: Bijwasan, Faridabad, Ghaziabad.
  • Cause: Compaction of alluvial deposits due to unregulated groundwater withdrawal.
  • Local uplift: Detected near Dwarka (+15.1 mm/yr) due to rainwater harvesting and aquifer recharge policies post-2011.

Chennai

  • Hotspots: Adyar floodplains (K K Nagar, Tondiarpet, Valasaravakkam, Kodambakkam).
  • Cause: Compaction of Holocene alluvium (sandy clay, silt, sand) and intensive groundwater extraction.
  • Impact: Highest projected structural risk among cities by 2075.

Mumbai

  • Subsidence low overall, except in high-density informal settlements (e.g., Dharavi).
  • Cause: Uneven land compaction due to localized extraction and structural load.

Kolkata

  • Cause: Compaction of Pleistocene–Holocene sediments; subsidence along riverine and deltaic areas.
  • Risk: Increasing vulnerability due to soft sediment structure.

Bengaluru

  • Lowest subsidence due to igneous and metamorphic rock base (gneiss, granite).
  • Warning: Recent surge in groundwater extraction (2022–2023) may increase risk.

Structural Risk Projections

Year Delhi Chennai Mumbai Bengaluru Kolkata Total (very high risk buildings)
2025 2,264 32 110
2055 3,169 958 255
2075 11,457 8,284 3,477 112 199 23,529

Underlying Causes

  • Over-extraction of groundwater via millions of unregulated borewells.
  • Urban load stress from vertical construction increasing soil compaction.
  • Lack of recharge infrastructure and inefficient stormwater management.
  • Climate variability: Declining rainfall recharge and increasing urban heat.

Broader Implications

  • Infrastructure risk: Cracking foundations, damaged pipelines, and transport networks.
  • Hydrological risk: Land sinking worsens flooding, especially during monsoons.
  • Seismic risk: Uneven compaction increases earthquake vulnerability.
  • Economic cost: Rising insurance risk and maintenance expenditure in megacities.

Positive Example

  • Dwarka (Delhi):
    • Local uplift due to aquifer recharge and rainwater harvesting between 2012–2015.
    • Demonstrates success of policy-driven groundwater restoration.

Way Forward – Mitigation & Adaptation

  1. Regulatory measures:
    1. Enforce groundwater extraction caps under CGWA guidelines.
    1. Mandate recharge pits and rainwater harvesting for large buildings.
  2. Urban hydrology reform:
    1. Integrate surface water management with stormwater networks.
    1. Develop artificial recharge zones near floodplains.
  3. Nature-based solutions:
    1. Promote re-vegetation and soil conservation to stabilise land.
  4. Monitoring & Technology:
    1. Expand InSAR satellite surveillance for urban subsidence tracking.
  5. Public awareness:
    1. Integrate groundwater literacy in urban planning and civic education.

 

October 2025
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