Why in the News?

• The Netherlands recently returned the 11th-century Chola-era copper plates to India during Prime Minister Narendra Modi’s visit, marking a major cultural repatriation after a 14-year diplomatic effort.

What’s in Today’s Article?

• India-Netherlands Bilateral Relations (History, Trade, Multilateral Cooperation, Cultural Ties, etc.)
• News Summary

India-Netherlands Bilateral Relations

• India and the Netherlands share strong ties based on trade, investment, technology, water management, and cultural cooperation.
• Their partnership has gained momentum in recent years, especially in areas such as climate resilience, renewable energy, and semiconductors.
• History of Bilateral Relations
  • Relations between India and the Netherlands date back to the 17th century, when the Dutch East India Company established trading links with India.
  • After India’s independence, diplomatic ties were formalised in 1947. Over time, relations evolved from traditional trade to broader cooperation in agriculture, science, technology, water management, and climate action.
• In recent decades, the relationship has acquired a strategic dimension through high-level political engagement and growing economic interdependence.

Strategic and Diplomatic Engagement

• India and the Netherlands maintain regular high-level political dialogue through visits by Prime Ministers, Foreign Ministers, and business delegations.
• The two countries have strengthened cooperation in sectors such as:

• Water management and river rejuvenation, particularly through Dutch expertise in flood control
• Renewable energy and green hydrogen
• Semiconductor and high-technology manufacturing
• Agriculture and food processing

• The Netherlands is also an important partner in India’s efforts to modernise ports and logistics infrastructure.

Economic and Trade Relations

• Economic engagement forms one of the strongest pillars of bilateral relations.
• According to recent official data:

• The Netherlands is among the largest export destinations for India in Europe.
• Bilateral trade exceeded USD 27 billion in 2023-24.
• Out of this, India exported USD 22.367 billion worth of goods to the Netherlands. The merchandise exports to the Netherlands account for 5.12% of India’s total merchandise exports.
• India’s major exports include petroleum products, pharmaceuticals, chemicals, machinery, and textiles.
• Imports from the Netherlands include machinery, chemicals, medical equipment, and technology products.

• The Netherlands is also among the top foreign investors in India, particularly in sectors like logistics, technology, renewable energy, and manufacturing.

Cultural and Educational Cooperation

• People-to-people ties have strengthened cultural relations between the two countries.

• The Netherlands hosts the 2nd largest Indian Diaspora (after the UK) in Europe and the largest on mainland Europe, totalling around 2,60,000 comprising 60,000 Indians and 2,00,000 strong Surinami-Hindustani community of Indian origin.
• The Netherlands is a popular education destination for Indian students, particularly in the field of science & technology.
• The number of Indian students has been growing over the years and more than 3500 Indian students are studying in the Netherlands presently.

Multilateral Cooperation

• India and the Netherlands cooperate closely in multilateral forums on issues such as:

• Climate change and sustainable development.
• Maritime security and international trade routes.
• Rules-based international order.

• The Netherlands has supported stronger India-European Union engagement, including trade and technological partnerships.

News Summary

• During Prime Minister Narendra Modi’s recent visit, the Netherlands formally returned the 11th-century Chola-era copper plates, an important cultural artefact linked to Tamil heritage.
• The return followed a 14-year diplomatic effort involving Indian authorities, historians, and Dutch institutions.
• The plates were brought to the Netherlands around 1712 by Florentius Camper, who was in India as part of a Christian missionary in the period when Nagapattinam was under Dutch control.
• Dating to the reign of Emperor Rajaraja Chola I (985-1014 AD) regarded as one of the greatest rulers in Indian history, one of the objects comprises 21 copper plates, weighing ~30 kilograms.
• The plates are divided into two sections: one in Sanskrit and one in Tamil. The other object being restituted comprises three copper plates containing a Tamil inscription. Both are bound together by bronze rings that bear the royal seal of the Chola dynasty.
• Such inscriptions are historically important because they contain details related to land grants, governance, taxation, and socio-economic conditions of the period.
• Prime Minister Modi described the return as a “joyous moment for every Indian”, highlighting the significance of preserving India’s civilisational heritage.
• The development also reflects India’s growing diplomatic efforts to repatriate stolen or illegally exported antiquities from foreign countries.
• In recent years, several nations, including the United States, Australia, and European countries, have returned ancient artefacts to India.

Why in News?

• India has categorically rejected the recent “award” issued by the “illegally constituted” Court of Arbitration (CoA) concerning disputes with Pakistan under the Indus Waters Treaty (IWT).
• The development comes amid worsening India-Pakistan relations following the Pahalgam terror attack, after which India placed the Indus Waters Treaty in abeyance.

What’s in Today’s Article?

• Official Position of India
• Indus Waters Treaty (IWT)
• Grievance Redressal Mechanism under the IWT
• Three-Tier Grievance Mechanism
• Current Diplomatic Reality
• India’s Recent Actions on the IWT
• Key Legal and Diplomatic Issues
• Way Ahead
• Conclusion

Official Position of India:

• Ministry of External Affairs (MEA) spokesperson stated that:
  • The Court of Arbitration (CoA) was “illegally constituted”.
  • India has never recognised its jurisdiction.
  • Any award or decision issued by the CoA is “null and void”.
  • India’s decision to keep the IWT in abeyance continues to remain in force.
• The arbitration award reportedly concerns “maximum pondage” issues, and supplemental interpretations related to the treaty.

Indus Waters Treaty (IWT):

• Historical background: The treaty was signed on September 19, 1960 between India and Pakistan after nearly nine years of negotiations, with mediation by the World Bank (WB).
• Key features:
  • The treaty, which contains 12 Articles, 8 Annexures (A to H), provides for allocation of river water between India and Pakistan.
  • Eastern rivers – Allocated to India: Sutlej, Beas, and Ravi. India enjoys “unrestricted use” of waters from these rivers.
  • Western rivers – Allocated to Pakistan: Indus, Jhelum, and Chenab. Pakistan receives the majority share of waters from these rivers, though India retains limited rights for -
    • Hydropower generation,
    • Non-consumptive use, and
    • Irrigation under specified conditions.

Grievance Redressal Mechanism under the IWT:

• The treaty utilizes a structured, graded, three-tier mechanism to resolve all grievances, differences, and disputes concerning the interpretation or application of the treaty.
• When an issue arises (such as Pakistan objecting to the technical designs of Indian hydropower projects like Kishenganga or Ratle), the IWT provides a graded escalation process outlined in Article IX.

Three-Tier Grievance Mechanism:

• Permanent Indus Commission (PIC) - The foundational tier:
  • The process: The PIC consists of one Commissioner appointed by each country. They meet regularly, conduct field inspections, and endeavor to resolve minor technical queries or operational disputes through mutual consensus.
  • Status: If the PIC successfully resolves an issue, it is settled. If no agreement is reached, the matter is escalated and deemed a "difference".
• Neutral Expert (NE):
  • The process: For technical differences that the PIC cannot resolve, either party can approach the WB to appoint an independent Neutral Expert.
  • Status: The NE is strictly limited to reviewing factual and technical engineering questions. The NE’s decision is binding on both parties.
• CoA:
  • The process: If the issues involve broader legal or treaty interpretations, or if a NE determines the matter, which is beyond their technical purview, the difference elevates to a dispute.
  • Members: At this stage, a 7-member ad hoc arbitral tribunal is formed (the CoA) at The Hague.
  • Status: This is the highest legal authority in the treaty.

Current Diplomatic Reality:

• The treaty's grievance mechanism has recently faced a massive diplomatic and legal deadlock.
• India has consistently maintained that Pakistan's approach to the CoA violates the IWT, arguing that a nation cannot simultaneously pursue proceedings before both a NE and a CoA.
• Consequently, India has boycotted the CoA proceedings, reiterating that the historic treaty has effectively been suspended until mutual foundational premises (including cross-border security) are respected.

India’s Recent Actions on the IWT:

• 2023: India issued its first-ever notice seeking “modification” of the treaty, citing Pakistan’s obstructionist approach, and procedural disagreements regarding dispute resolution.
• 2024: India escalated its position by seeking “review and modification” of the treaty. The inclusion of the word “review” signalled India’s intent to renegotiate, and possible reconsideration of the treaty framework itself.
• 2026: Following the Pahalgam terror attack, India decided to keep the treaty in abeyance, marking an unprecedented shift in bilateral water diplomacy.

Key Legal and Diplomatic Issues:

• India argues that:
  • Pakistan unilaterally approached the CoA.
  • The process violated the graded dispute-resolution mechanism under the treaty.
  • It instead prefers resolution through a NE mechanism.
• Question of treaty continuity: The current standoff raises larger questions regarding:
  • Whether a bilateral treaty can be kept “in abeyance” unilaterally,
  • The role of international arbitration in bilateral treaties,
  • The balance between treaty obligations and national security concerns.

Way Forward:

• Modernisation of the treaty: Possible areas for future renegotiation include climate resilience, data-sharing, hydrological changes, and modern dispute-resolution mechanisms.
• Regional water diplomacy: South Asia requires cooperative river basin management, confidence-building measures, and sustainable utilisation of shared water resources.

Conclusion:

• India’s rejection of the arbitration award and its decision to keep the IWT in abeyance highlights that the dispute goes beyond water-sharing and reflects deeper tensions involving terrorism, sovereignty, international law, and strategic security.
• While India seeks greater flexibility and accountability within the treaty framework, the long-term stability of the Indus basin ultimately depends on sustained diplomacy, institutional dialogue, and cooperative water governance.

Why in news?

The government placed silver imports for domestic consumption under the restricted category, requiring prior government approval from the Directorate General of Foreign Trade (DGFT).

This is the latest in a series of steps taken to discourage precious metal imports amid the ongoing West Asia war and mounting pressure on India's current account and foreign exchange reserves.

What’s in Today’s Article?

• Key Policy Measures Taken Recently
• What the Silver Restriction Covers and What It Exempts?
• Rationale Behind These Steps
• The Broader External Sector Crisis
• Prioritising Essential Imports

Key Policy Measures Taken Recently

• The government has taken a rapid succession of steps within days to manage external sector stress:
  • Raised customs duty on gold and silver from 6% to 15%, and on platinum from 6.4% to 15.4%, to moderate non-essential imports amid the West Asia crisis.
  • Imposed a quantitative limit of 100 kg on gold imports under a key export scheme to curb misuse of duty-free import facility meant for value-added exports.
  • Placed silver bars (up to 99% purity) imported for domestic consumption under the restricted category, requiring prior government approval through DGFT.

What the Silver Restriction Covers and What It Exempts?

• The restriction applies specifically to silver imported for domestic consumption.
• However, several categories remain exempt from the restriction:
  • Silver imported for processing and value-added exports as jewellery — continues to be unrestricted.
  • Imports by 100% Export-Oriented Units (EOUs) — exempt from restrictions.
  • Imports by units in Special Economic Zones (SEZs) — exempt, provided imported goods are not sold in the Domestic Tariff Area (DTA).
    • DTA — The area within India outside of SEZs and EOUs where normal customs duties apply. Sales from SEZs into the DTA are treated as imports and attract duties.
  • This design ensures that India's export competitiveness in gems and jewellery is not affected while curbing purely consumption-driven forex outflows.

Rationale Behind These Steps

• Silver Imports
  • Silver imports surged 150% to $12.05 billion in 2025-26.
  • In volume terms, the increase was 42%, reaching 7,334 tonnes.
  • International silver prices rose 74% during the year.
  • Even in April 2026, silver imports jumped 157% year-on-year to $411 million.
• Gold Imports
  • Gold imports rose 24% to $71.98 billion in 2025-26.
  • This occurred despite a 4.7% drop in import volume to 721 tonnes — reflecting how sharply gold prices rose (30% during the year).
  • In April 2026 alone, gold imports surged 81.7% year-on-year to $5.6 billion.
• These figures illustrate that price-driven import inflation — not just volume increases — is a major driver of forex outflows in precious metals.

The Broader External Sector Crisis

• Pressure from West Asia War - Since the onset of the West Asia war on February 28, India's external sector has come under severe stress.
  • Forex reserves have plummeted by $32 billion in just 10 weeks.
  • Crude oil prices continue to hover above $100 a barrel — directly inflating India's import bill as a major oil-importing nation.
  • Supply-side disruptions are adding to inflationary pressures and widening the Current Account Deficit (CAD).
• Rupee Depreciation Adding to the Burden - A depreciating rupee is compounding the problem — making all imports more expensive in rupee terms, further straining the external account.
• Liberalised Remittance Scheme (LRS) Outflows - Over recent years, India has also seen significant forex outflows through overseas travel spending under the LRS — adding another layer of pressure on foreign exchange resources.
  • LRS - RBI's scheme allowing Indian residents to remit up to $250,000 per year abroad for permissible transactions including travel, education, and investments.

Prioritising Essential Imports

• The government's logic is clear and well-articulated.
• Precious metals, while culturally and financially significant, are "predominantly consumption and investment driven" — meaning they do not directly contribute to productive capacity or export competitiveness.
• In contrast, India's limited foreign exchange must be prioritised for essential imports including crude oil, fertilisers, industrial raw materials, defence requirements, critical technologies, and capital goods.
• In such circumstances, prudent management of the country's external sector becomes essential.

Why in news?

Air India has announced major cuts to its international flight schedule from June to August, including an almost 40% reduction in North American operations and substantial reductions in flights to SAARC and Southeast Asian destinations.

What’s in Today’s Article?

• International Routes Affected by Air India’s Flight Cuts
• Why Air India Has Cut International Flights?
• Wider Impact on Indian Airlines
• Global Aviation Faces Disruptions and Cost Pressures

International Routes Affected by Air India’s Flight Cuts

• Air India has removed 145 weekly international flights, resulting in an overall 27% reduction in international operations across multiple regions.
• North America Hit Hardest
  • North America, Air India’s most important international market, has seen a major impact: Weekly flights reduced from 51 to 33 (39% decline).
  • Temporary suspension of routes such as:
    • Delhi–Chicago
    • Delhi–Newark
    • Mumbai–New York
  • However, Mumbai–Newark has received four additional flights, taking the route to seven weekly services
• Europe Sees Moderate Cuts
  • Air India has withdrawn about 34% of flights on several European routes, including: Paris, Copenhagen, Milan, Vienna, Zurich, Rome.
  • Unaffected routes: London, Manchester, Amsterdam.
• Sharp Cuts in Asia-Pacific Routes
  • The steepest reductions have been in Southeast Asia, SAARC, and the Far East, with about 57% of flights withdrawn to destinations such as: Kathmandu, Dhaka, Colombo, Bangkok, Shanghai, Singapore, Kuala Lumpur, Ho Chi Minh City.
• Singapore Services Significantly Reduced
  • A total of 21 weekly flights from Delhi, Mumbai, and Chennai to Singapore have been withdrawn.
• Australia Routes Also Affected
  • Flights from Delhi to:
    • Melbourne reduced from 7 to 4 per week
    • Sydney reduced from 7 to 4 per week

Why Air India Has Cut International Flights?

• Air India’s flight reductions are mainly due to the West Asia conflict, which has forced airlines to avoid affected airspace for safety reasons, leading to significantly longer routes.
• Travel times to North America have increased by five to six hours, requiring refuelling stops in cities such as Vienna and Copenhagen.
• The situation has worsened for Indian carriers because Pakistan has barred Indian airlines from using its airspace since April 2025, following Operation Sindoor, placing them at a competitive disadvantage compared to foreign airlines such as Lufthansa.

Wider Impact on Indian Airlines

• The disruption is not limited to Air India. Other Indian airlines have also reduced international operations:
  • IndiGo: 21% reduction in international flights in April
  • SpiceJet, Akasa Air, Air India Express: Over 50% cuts, though on smaller international networks
• Why Air India Has Been Hit the Hardest
  • Air India has faced the biggest impact because it is the only Indian airline operating North American routes and has a strong presence across several European destinations, unlike IndiGo, which is still expanding internationally.
  • By April, jet fuel prices had risen by 130% due to tensions in the Gulf.
  • Since fuel accounts for nearly 40% of airline operating costs, this has sharply increased financial pressure.
  • Airlines have responded by imposing fuel surcharges and increasing ticket prices, but there are concerns that excessively high fares may reduce passenger demand.
  • Air India’s network rationalisation is aimed at limiting mounting losses amid operational disruptions.
  • The airline reported a ₹26,700 crore loss in FY 2025-26, driven by the Pakistan airspace ban, rising costs, and reputational setbacks after the Ahmedabad crash.

Global Aviation Faces Disruptions and Cost Pressures

• The aviation disruption is part of a broader global trend triggered by regional conflict and soaring fuel prices.
• Gulf carriers have been hit the hardest, with the International Air Transport Association reporting a 61% decline in international passenger traffic in March.
• Beyond the Gulf, airlines are cutting operations to manage costs and improve efficiency.
• The Lufthansa Group has cancelled 20,000 short-haul flights until October to save jet fuel and streamline long-haul connectivity.
• Qantas has also reduced capacity, cutting domestic flights by 5% and international services by 2%, while withdrawing some routes such as the Bengaluru–Sydney service despite expanding select Europe operations.

About Chaprala Wildlife Sanctuary:

• It is located in the Gadchiroli district of Maharashtra.
• It is located on the bank of the confluence of the Wardha and Wainganga rivers.
• The Pranhita River flows along its western boundary.
• During the monsoons, river water swells and enters the sanctuary.
• Additionally, several water bodies, including the Murgikunta, Raikonta, and Komatkunta tanks, further contribute to the sanctuary’s biodiversity.
• It is also home to the indigenous Gond tribal community.
• Vegetation: It is dominated by southern tropical dry deciduous forests interspersed with grasslands.
• Flora: The dominant tree species include teak, arjun, salai, mahua, bel, dhawada, tendu, sissoo, and semal.
• Fauna:
  • It is inhabited by Tiger, Leopard, Wild boar, Sloth bear, Wild dogs, Langurs, Blackbuck, Spotted Deer, Sambar, Jackal, Mongoose, etc.
  • The sanctuary also features a distinctive riparian ecosystem that supports a diverse aquatic fauna, including fish, prawns, and turtles.

Key Facts about Pranahita River:

• It is a significant tributary of the Godavari River, formed by the confluence of the Wardha and Wainganga rivers.
• It flows through the states of Maharashtra and Telangana.
• The river course is principally through the dense forests, which are rich in Sagwan or timber trees.
• By virtue of its extensive network of tributaries, the river drains all of the Vidharba region as well as the southern slopes of the Satpura Ranges.
• The river is known for its vast catchment area and plays a key role in irrigation and local agriculture.
• In recent years, the Pranahita-Chevella Lift Irrigation Project was proposed to utilize the river’s water for irrigation and drinking water supply to drought-prone areas in Telangana.

About Common Bronzeback:

• It is a non-venomous species of tree snake found in South and Southeast Asia.
• Scientific Name: Dendrelaphis tristis
• Other Names: Indian Bronzeback Tree Snake and Daudin's Bronzeback
• Habitat and Distribution:
  • They are found in Sri Lanka, India, Bangladesh, Pakistan, Nepal, Myanmar, and Bhutan.
  • They inhabit dry forests, wet montane forests, and the Himalayan foothills.
  • They can also occur in rural and urban areas, in gardens and parks.
  • They are arboreal and prefer the treetops to life on the ground.
• Conservation Status:
  • IUCN Red List: Least Concern

About Ebola:

• It is a severe and often deadly viral disease caused by a group of viruses known as orthoebolaviruses (formerly ebolavirus).
• It is a severe contagious disease affecting humans and non-human primates.
• Ebola, first identified in 1976 in southern Sudan and the Democratic Republic of Congo, primarily affects remote villages in Central and West Africa.
• It is known as a hemorrhagic fever virus because it can cause problems with the clotting system of the body and lead to internal bleeding as blood leaks from small blood vessels.
• Transmission:
  • The virus is transmitted to people from wild animals (such as fruit bats, porcupines, and non-human primates).
  • It then spreads in the human population through direct contact with the blood, secretions, organs, or other bodily fluids of infected people and with surfaces and materials contaminated with these fluids.
  • Ebola cannot be transmitted by air.
• Infectious period:
  • Infected individuals are not contagious during the incubation period and become infectious once they begin to develop symptoms.
  • They remain infectious as long as the virus is present in the blood.
• Treatment:
  • There is no known cure for Ebola.
  • There are no approved drugs or vaccines available to treat EVD, although experimental vaccines and therapeutics are being tested.
  • Recovery seems to depend in part on how much virus a person was initially exposed to, how early treatment is started, and on the patient's age and immune response.
  • Chances of survival can be improved with early supportive care.
  • Current therapy consists of maintenance of fluid and electrolyte balance and the administration of blood and plasma to control bleeding.

About ABHAY System:

• ABHAY (AI-Based Helpbot for Authentication of Your Notice) is an AI-powered notice verification system launched by the Central Bureau of Investigation (CBI).
• Purpose: It is designed to help citizens identify fake CBI notices and protect themselves from rising “digital arrest” scams.
• It is India’s first real-time notice verification system developed specifically to combat cyber-enabled fraud and impersonation scams.
• The platform was created as fraudsters increasingly use fake law enforcement notices, AI-generated content, and deepfake technology to intimidate victims.
• How does the System Work?
  • Users receiving notices in the name of the CBI can upload scanned copies of the documents on the platform after completing OTP verification.
  • The AI-based system then checks the authenticity of the notice and flags it as either genuine or potentially fraudulent.
• The ABHAY system is available round-the-clock through the official CBI website and the dedicated verification portal, the ABHAY Verification Platform.

About Research and Analysis Wing (RAW):

• It is India’s external intelligence agency.
• It plays a crucial role in counter-terrorism, counter-proliferation, cybersecurity, and monitoring threats from outside the country.
• It is headquartered in New Delhi.
• Formation:
  • Until 1968, the Intelligence Bureau (IB), which is responsible for India’s internal intelligence, also handled external intelligence.
  • However, after the 1962 China-India war and the Indo-Pakistani war in 1965, India established a separate and distinct external intelligence organization–the R&AW.
  • Rameshwar Nath Kao was the first chief of R&AW.
  • Since its inception, RAW is credited with providing intelligence support to many significant operations on foreign soil.
• Working mechanism:
  • It collects military, economic, scientific, and political intelligence through covert and overt operations.
  • The agency is also charged with monitoring terrorist elements and smuggling rings that transport weapons and ammunition into India.
  • Indian officials rely on the intelligence collected by RAW to shift national security policy, revise foreign policy, and to influence international public opinion.
• Authority:
  • It directly comes under the prime ministerial office of India.
  • The Agency reports directly to the prime minister of India and not to anyone other than the PMO.
  • Because R&AW is a necessarily secretive organization, many of its activities remain classified.
  • The agency is not liable to answer any questions in the Parliament and the parliamentarians do not have the authority to raise questions on the funds which are allocated to the agency.

About Netherlands:

• Location: It is a country located in Northwestern Europe.
• Bordering Countries: It is bordered by Germany in the east; and Belgium in the south.
• Water Bodies: It is bounded by the North Sea in the north and west.
• Capital City: Amsterdam
• Geographical Features of Netherlands:
  • Climate: The climate of the Netherlands is temperate, with gentle winters, cool summers, and rainfall in every season.
  • Three primary geographic regions of the Netherlands are the Lowlands, the Veluwe and Utrecht Hill Ridge, and The Limburg Hills.
  • Lakes: Ijsselmeer (largest freshwater)
  • Rivers: Major rivers flow through the Netherlands are Rhine, Meuse (Maas), and Scheldt
  • Highest Point: Vaalserberg is the highest point (1,058 feet) of Netherlands.
  • Natural Resources: It has one of the world's largest natural gas fields. Other resources are zinc, and magnesium.