1.In Major Setback to AAP, Seven of its 10 Rajya Sabha MPs Cross Over to BJPSource: Indian Express

Why in News?

• Seven out of ten Rajya Sabha MPs of the Aam Aadmi Party (AAP) announced their decision to join the Bharatiya Janata Party (BJP), creating a major constitutional and political controversy.

• This includes senior leader Raghav Chadha and six other MPs, reducing AAP’s strength in the Rajya Sabha from 10 to 3.

• Since seven members constitute exactly two-thirds of AAP’s strength in the Rajya Sabha, the issue has triggered debate over whether this qualifies as a valid “merger” under the Tenth Schedule or whether the MPs should face disqualification under the Anti-Defection Law.

• The final decision will be taken by the Chairman of the Rajya Sabha.

What Happened in the Rajya Sabha

• The seven MPs publicly announced that they were merging with the BJP and claimed protection under the merger provision of the Anti-Defection Law.

• Under the Tenth Schedule, if at least two-thirds of the members of a legislature party agree to merge with another political party, they are protected from disqualification.

• Since seven out of ten MPs satisfy the two-thirds requirement, legal experts suggest that the Rajya Sabha Chairman may accept the merger claim, similar to the precedent seen in the Telugu Desam Party (TDP) Rajya Sabha case.

• However, opposition parties may file a disqualification petition challenging whether this reflects a genuine party merger or only strategic defections.

• Until the Chairman gives a final decision, the defecting MPs technically remain AAP members.

Anti-Defection Law: Constitutional Basis

• The Anti-Defection Law was introduced through the 52nd Constitutional Amendment Act, 1985, which added the Tenth Schedule to the Constitution.

• Its main objective is to prevent political defections motivated by personal gain and to ensure legislative stability.

• It applies to both Parliament and State Legislatures.

• It was further strengthened by the 91st Constitutional Amendment Act, 2003, which removed the earlier “split” provision of one-third members and retained only the merger provision.

Grounds for Disqualification

• If an elected member voluntarily gives up membership of the political party on whose ticket they were elected, disqualification can occur.

• Formal resignation is not necessary; conduct indicating disloyalty may be sufficient.

• If a member votes or abstains against the party whip without prior permission and the action is not condoned within 15 days, disqualification may follow.

• An independent member joining any political party after election is disqualified.

• A nominated member may join a political party only within six months of taking the seat; after that, joining a party attracts disqualification.

Merger Exception under Tenth Schedule

• The most important exception under the Anti-Defection Law is the merger provision.

• If not less than two-thirds of the members of a legislature party agree to merge with another political party, they are protected from disqualification.

• In this case, seven out of ten AAP MPs constitute exactly two-thirds, giving them a legal basis to claim merger protection.

• The main controversy lies in deciding whether this is a genuine political merger or merely individual defections for political convenience.

Important Supreme Court Judgments

• Kihoto Hollohan v. Zachillhu (1992) – Speaker’s decision under the Tenth Schedule is subject to judicial review.

• Ravi S. Naik v. Union of India (1994) – Defection can be inferred from conduct; formal resignation is not necessary.

• Keisham Meghachandra Singh v. Speaker, Manipur Assembly (2020) – The Speaker should decide defection cases within three months and suggested an independent tribunal.

• Padi Kaushik Reddy v. State of Telangana (2025) – The Supreme Court emphasized timely and impartial decisions in defection matters.

Role of Rajya Sabha Chairman

• The Vice-President of India acts as the ex-officio Chairman of the Rajya Sabha under Articles 64 and 89.

• The Chairman presides over proceedings, maintains order, interprets rules, and decides points of order.

• In anti-defection cases, the Chairman acts as the deciding authority under the Tenth Schedule.

• His decision is subject to judicial review.

• He has only a casting vote and no ordinary voting power.

Political and Constitutional Significance

• This case tests whether the Anti-Defection Law prevents opportunistic politics or allows legal loopholes through the merger clause.

• It raises concerns regarding parliamentary ethics and constitutional morality.

• Frequent defections weaken party discipline and voter trust in representative democracy.

• The decision may shape future interpretation of the merger provision in Parliament.

Way Forward

• The Anti-Defection Law should be limited mainly to votes affecting government stability such as no-confidence motions, money bills, and confidence votes.

• The power to decide disqualification should be shifted from the Speaker or Chairman to an independent tribunal or the Election Commission.

• A strict constitutional timeline must be introduced for deciding defection petitions.

• The merger provision should be reviewed so that it protects genuine political restructuring rather than strategic defections.

Conclusion

• The defection of seven AAP Rajya Sabha MPs to BJP is not merely a party issue but a major constitutional test for the Anti-Defection Law.

• Whether the Chairman treats this as a legitimate merger or an unlawful defection will shape the future interpretation of the Tenth Schedule.

• Parliamentary democracy depends not only on legal provisions but also on political morality and constitutional ethics.

Prelims MCQ

Q. With reference to the Anti-Defection Law, consider the following statements:

1. It was introduced through the 52nd Constitutional Amendment Act, 1985.
2. The merger provision protects members from disqualification if one-third members agree to merge with another party.
3. The Chairman of the Rajya Sabha decides disqualification of Rajya Sabha members under the Tenth Schedule.

Which of the statements given above is/are correct?

(a) 1 and 3 only(b) 2 and 3 only(c) 1, 2 and 3(d) 1 only

Answer: (a) 1 and 3 only

Explanation:

• Statement 1 is correct.

• Statement 2 is incorrect because after the 91st Amendment, only the two-thirds merger provision remains valid.

• Statement 3 is correct because the Rajya Sabha Chairman decides disqualification for Rajya Sabha MPs.

Mains Question

Q. The Anti-Defection Law was enacted to ensure political stability, yet it often creates controversy regarding legislative freedom and Speaker neutrality. Critically examine in the context of recent Rajya Sabha defections. [250 words]

2.Industry Body Flags Concern Over Proposed Pesticides BillSource: The Hindu

Why in News?

• CropLife India, representing major crop protection companies, has urged the Union Agriculture Ministry to make targeted changes in the draft Pesticides Management Bill before its introduction in Parliament.

• The industry argues that the current draft does not adequately address the innovation gap in India’s pesticide sector and may delay farmers’ access to safer and more effective crop protection technologies.

• Union Agriculture Minister Shivraj Singh Chouhan has announced that an amended Seeds and Pesticide Management Bill will be introduced in the upcoming parliamentary session.

What is the Pesticides Management Bill?

• The Pesticides Management Bill, 2025 is proposed to replace the Insecticides Act, 1968 and the Insecticides Rules, 1971, which currently regulate pesticides in India.

• Its objective is to create a modern legal framework for regulating pesticides from manufacture to final disposal and to address issues such as fake pesticides, weak monitoring, and lack of digital traceability.

• The Bill covers manufacture, import, export, transport, storage, sale, distribution, use, and disposal of pesticides.

• No pesticide can be manufactured, imported, or sold unless it is registered under the law.

• It proposes a Central Pesticides Board as the apex scientific and advisory body and a Registration Committee for approval, review, suspension, and cancellation of pesticides.

Why the Existing Law Needs Replacement

• The Insecticides Act, 1968 was framed when India’s agricultural and technological realities were very different.

• It mainly focused on insecticides and did not fully account for modern crop protection chemicals, digital traceability, environmental concerns, and export-linked food safety standards.

• Agriculture today faces climate change, pest resistance, changing cropping patterns, and stricter global residue standards.

• Farmers now need faster access to newer molecules that are low-dose, targeted, and environmentally safer.

• Therefore, replacing the old law is necessary for both agricultural productivity and sustainable farming.

Industry Concerns Regarding the Draft Bill

• CropLife India states that although the Bill is a positive reform, major policy gaps still discourage innovation.

• New crop protection technologies take too long to reach Indian farmers, creating a serious innovation lag.

• This forces farmers to depend on older pesticides that are less efficient and often more harmful.

• Lack of clear incentives discourages companies from introducing advanced molecules quickly.

• This affects pest resistance management, residue control for exports, environmental sustainability, and long-term crop resilience.

Protection of Regulatory Data (PRD) Debate

• The most important demand raised by the industry is Protection of Regulatory Data (PRD), also called Data Exclusivity.

• When a company develops a new pesticide molecule, it spends heavily on toxicity studies, field trials, and environmental safety assessments.

• PRD prevents competitors from immediately using that same data for approval of generic versions for a limited period.

• The industry has proposed a five-year PRD period from the date of first registration.

• Without PRD, companies fear “free-riding,” where competitors benefit from costly research without making similar investments.

PRD vs Patent

• A patent protects the invention itself, such as the chemical compound or manufacturing process, usually for 20 years.

• PRD protects only the regulatory test data submitted for approval, generally for 5–10 years.

• Even after patent expiry, PRD may still provide temporary market exclusivity.

• Thus, PRD acts as a second layer of innovation protection in agrochemicals and pharmaceuticals.

Key Features of the Draft Bill

• Establishment of a Central Pesticides Board for scientific guidance.

• Registration Committee for approving, suspending, or cancelling registrations.

• Digital licensing and a national registry to reduce fake pesticide sales.

• Registration decisions proposed within 12–18 months.

• Stronger penalties for spurious and unregistered pesticides.

• Better standards for labeling, packaging, worker safety, and training.

Challenges in India’s Pesticide Regulation

• Spurious and counterfeit pesticides remain a major issue.

• Regulatory approvals are often slow and unpredictable.

• Farmer awareness regarding safe pesticide use and protective gear remains low.

• Overuse of chemicals causes soil degradation, water contamination, and biodiversity loss.

• Balancing innovation incentives with affordability for farmers remains a major policy challenge.

Way Forward

• India needs a balanced Pesticides Management Bill that protects both farmers and innovation.

• A limited and time-bound PRD framework should be considered.

• Regulatory approvals must be faster, transparent, and science-based.

• Integrated Pest Management (IPM) should be promoted for efficient and sustainable pesticide use.

• Farmer education on dosage, safety gear, and resistance management must be strengthened.

Conclusion

• The debate over the Pesticides Management Bill is not only about industry interests but also about the future of Indian agriculture.

• Farmers need access to safer and more effective technologies, but affordability, public health, and environmental sustainability must also be protected.

• A well-designed law replacing the outdated Insecticides Act, 1968 can strengthen food security, export competitiveness, and sustainable agricultural growth.

Prelims MCQ

Q. With reference to the Pesticides Management Bill, consider the following statements:

1. It seeks to replace the Insecticides Act, 1968.
2. Protection of Regulatory Data (PRD) protects only the invention itself like a patent.
3. The Bill proposes the creation of a Central Pesticides Board.

Which of the statements given above is/are correct?

(a) 1 and 3 only(b) 2 and 3 only(c) 1, 2 and 3(d) 1 only

Answer: (a) 1 and 3 only

Explanation:

• Statement 1 is correct.

• Statement 2 is incorrect because PRD protects regulatory test data, not the invention itself.

• Statement 3 is correct because the Bill proposes a Central Pesticides Board.

Mains Question

Q. The proposed Pesticides Management Bill seeks to modernize India’s pesticide regulation framework. Discuss the major concerns raised by the industry regarding innovation protection and explain how India can balance farmer welfare with sustainable agricultural growth.

3.India’s Post-LWE TransformationSource: The Hindu

Why in News?

• On 31 March 2026, Union Home Minister Amit Shah announced that India is now free from Maoist insurgency, marking a major shift from the 2009–10 period when Left Wing Extremism (LWE) was considered India’s most serious internal security threat.

• The focus is now shifting from counter-insurgency operations to inclusive governance, tribal empowerment, and long-term development in former LWE-affected areas.

What is Left Wing Extremism (LWE)?

• Left Wing Extremism refers to the Maoist insurgency inspired by Marxist-Leninist-Maoist ideology aimed at overthrowing the Indian state through armed struggle.

• It is mainly concentrated in the “Red Corridor” covering parts of Chhattisgarh, Jharkhand, Odisha, Maharashtra, Andhra Pradesh, Telangana, and Bihar.

• Maoists historically established parallel governments called Janatana Sarkars in remote tribal regions.

• In 2009–10, LWE was officially termed the “single biggest internal security challenge” by the Government of India.

Significance of India’s Transition from LWE to Relative Peace

Strategic and Internal Security Impact

• Restoration of the state’s monopoly over the use of force and dismantling of Maoist “liberated zones.”

• Constitutional governance is restored, allowing implementation of the Fifth Schedule and Sixth Schedule protections.

• More than 100 battalions of Central Armed Police Forces (CAPFs), earlier locked in counter-insurgency duties, can now be redeployed to border security and other strategic needs.

Economic Unlocking

• Mineral-rich regions like Bastar and Saranda hold major reserves of iron ore, coal, and bauxite.

• Peace improves investment, infrastructure development, and industrial integration.

• Formal procurement of Minor Forest Produce (MFP) at MSP helps tribal households and reduces dependence on Maoist levy networks.

Socio-Political Impact

• Democracy deepens as voter turnout rises in previously hyper-sensitive polling booths.

• Genuine implementation of the Forest Rights Act (FRA), 2006 becomes possible.

• Eklavya Model Residential Schools (EMRS) and tribal upskilling schemes like Roshni gain operational space.

Major Challenges in the Post-LWE Phase

Administrative Vacuum

• Civil servants, doctors, and teachers remain reluctant to serve in remote tribal districts.

• Weak implementation of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) limits real self-governance.

The “De-risking” Paradox

• Peace encourages rapid entry of mining and extractive industries into tribal belts.

• This may lead to fresh displacement of Adivasi communities and recreate the same alienation that originally fueled Maoism.

Weak FRA Implementation

• Bureaucratic rejection of Community Forest Rights (CFR) claims remains high.

• Forests are still treated more as state revenue assets than community-owned resources.

Criminalization of the Vacuum

• With Maoist leadership weakened, illegal timber mafias, organized crime syndicates, and local cartels may capture the grey economy.

Judicial Bottlenecks

• Thousands of tribal youth remain jailed under laws like the Unlawful Activities (Prevention) Act without timely trials.

• This creates long-term resentment and future radicalization risks.

Measures for Successful Post-LWE Transformation

AIEEEE Framework

• Accountability, Innovation, Evidence, Equity, Empathy, and Efficiency must guide region-specific governance.

• Centre-State convergence should focus on outcomes, not just fund allocation.

Strict Adherence to PESA and FRA

• Gram Sabha must become the foundational unit of governance.

• As recommended by the Virginius Xaxa Committee (2014), ownership of Minor Forest Produce should be strengthened.

Development-Security Synergy

• Aspirational Districts Programme (ADP), PM-JANMAN, DAJUGA, and Adi Karmayogi should be integrated.

• Infrastructure must be followed immediately by welfare delivery and institutional presence.

Transition to SMART Policing

• Shift from heavy CAPF deployment to specialized, locally recruited state police.

• Fast-track undertrial cases and improve legal aid for SC/ST communities.

• Police stations should become centers of grievance redressal and welfare facilitation.

Important Case Studies

Dantewada (Chhattisgarh)

• District Mineral Foundation (DMF) funds and Aspirational District Programme funds were pooled.

• Real-time mobile data improved healthcare delivery and CFR implementation.

• Education Hubs replaced the image of military occupation with trust-based governance.

Bastar Procurement Model

• MSP for tendu leaves and mahua was increased.

• Van Dhan Vikas Kendras empowered SHGs and Gram Sabhas.

• This reduced tribal dependence on Maoist levy systems.

Malkangiri (Odisha) – SETU Framework

• After the Gurupriya Bridge, the SETU initiative rapidly introduced mobile towers, PHCs, and transport.

• Infrastructure became the strongest anti-insurgency tool.

Andhra Pradesh–Telangana Greyhounds Model

• Locally recruited Greyhounds and State Intelligence Branch proved more effective than prolonged CAPF deployment.

• It enabled a seamless shift from armed response to civil policing.

Conclusion

• India’s post-LWE phase is not merely the end of insurgency but the beginning of a deeper governance challenge.

• Sustainable peace depends on trust-building, tribal dignity, constitutional rights, and inclusive development.

• The real victory lies not in defeating Maoism militarily, but in ensuring that the conditions which created it never return.

Prelims MCQ

Q. With reference to Left Wing Extremism (LWE) in India, consider the following statements:

1. The Panchayats (Extension to Scheduled Areas) Act, 1996 aims to strengthen self-governance in tribal areas.
2. The Forest Rights Act, 2006 recognizes rights of forest-dwelling Scheduled Tribes and other traditional forest dwellers.
3. The Greyhounds force is a Central Armed Police Force under the Ministry of Home Affairs.

Which of the statements given above are correct?

(a) 1 and 2 only(b) 2 and 3 only(c) 1, 2 and 3(d) 1 only

Answer: (a) 1 and 2 only

Explanation:

• Statement 1 is correct. PESA strengthens Gram Sabha-based governance in Scheduled Areas.

• Statement 2 is correct. FRA, 2006 grants forest rights to tribal and traditional forest dwellers.

• Statement 3 is incorrect. Greyhounds is a specialized state police force of Andhra Pradesh and Telangana, not a CAPF.

Mains Question

Q. India’s success against Left Wing Extremism marks a transition from counter-insurgency to governance-led stabilization. Examine the major challenges in the post-LWE phase and suggest measures for ensuring sustainable peace in tribal regions.[250 words]

4.Rajnath Singh to Attend 2026 SCO Defence Ministers’ MeetSource: The Hindu

Why in News?

• Defence Minister Rajnath Singh will attend the Shanghai Cooperation Organisation (SCO) Defence Ministers’ Meeting in Bishkek, Kyrgyzstan, on April 27–28, 2026.

• The meeting will focus on terrorism, extremism, and regional security challenges.

• India’s participation highlights its strategic role in Eurasian security cooperation and regional diplomacy.

About Shanghai Cooperation Organisation (SCO)

• The SCO is a permanent intergovernmental international organization focused on political, economic, and security cooperation in Eurasia.

• It was established on 15 June 2001 in Shanghai.

• It evolved from the “Shanghai Five” formed in 1996 for border security cooperation.

• It is considered one of the world’s largest regional organizations by geographic reach and population coverage.

Member Countries of SCO

Founding Members

• China• Russia• Kazakhstan• Kyrgyzstan• Tajikistan• Uzbekistan

Expanded Members

• India (2017)• Pakistan (2017)• Iran (2023)• Belarus (2024)

Observer States

• Afghanistan• Mongolia

Main Objectives of SCO

Security Cooperation

• Combating the “three evils” — terrorism, separatism, and extremism.

• Strengthening intelligence sharing and joint anti-terror operations.

• Addressing regional instability in Central Asia and Afghanistan.

Economic Cooperation

• Promoting trade, transport corridors, and regional connectivity.

• Discussions on an SCO Development Bank and financial cooperation.

• Encouraging use of national currencies in trade settlements.

Political Cooperation

• Promoting a multipolar world order.

• Supporting sovereignty, territorial integrity, and non-interference.

• Building strategic trust among member nations.

Regional Anti-Terrorist Structure (RATS)

• RATS is the permanent anti-terror body of the SCO.

• Headquarters: Tashkent

• It coordinates intelligence sharing, anti-terror operations, and joint military exercises.

• It plays a major role in tackling cross-border terrorism and extremist networks.

Importance of the 2026 Defence Ministers’ Meeting

• The meeting comes amid rising concerns over terrorism, extremism, and instability in the Eurasian region.

• Discussions are expected on Afghanistan, cross-border terrorism, and evolving geopolitical tensions.

• India is likely to highlight its consistent stand against terrorism and the need for zero tolerance toward terror infrastructure.

• Bilateral meetings may strengthen India’s defence cooperation with Central Asian countries and Russia.

Significance for India

• Strengthens India’s engagement in Eurasian strategic affairs.

• Provides a platform to raise concerns regarding terrorism and regional security.

• Enhances defence diplomacy with Central Asian countries.

• Supports India’s policy of strategic autonomy and multipolar global engagement.

• Balances regional influence amid China-Pakistan strategic cooperation within the SCO.

Challenges for India in SCO

• Presence of both China and Pakistan creates diplomatic complexities.

• SCO often reflects strong Russia-China influence in decision-making.

• India’s concerns on terrorism may face resistance due to differing member priorities.

• Limited progress on connectivity because of Pakistan-related transit restrictions.

Way Forward

• India should continue using the SCO platform to push for stronger counter-terror commitments.

• Defence cooperation with Central Asian republics should be expanded through bilateral engagement.

• India must strengthen connectivity alternatives like INSTC and Chabahar for strategic access.

• Balanced engagement with all major powers should remain central to India’s SCO approach.

Conclusion

• The SCO Defence Ministers’ Meeting in Bishkek is important for India’s regional security strategy.

• It provides a key platform to strengthen defence diplomacy and reinforce India’s position against terrorism.

• India’s active participation reflects its broader commitment to regional stability, strategic autonomy, and a multipolar world order.

Prelims MCQ

Q. With reference to the Shanghai Cooperation Organisation (SCO), consider the following statements:

1. India became a full member of SCO in 2017.
2. The Regional Anti-Terrorist Structure (RATS) is headquartered in Beijing.
3. The SCO was established in 2001.

Which of the statements given above are correct?

(a) 1 and 3 only(b) 2 and 3 only(c) 1, 2 and 3(d) 1 only

Answer: (a) 1 and 3 only

Explanation:

• Statement 1 is correct — India became a full member in 2017.

• Statement 2 is incorrect — RATS is headquartered in Tashkent, not Beijing.

• Statement 3 is correct — SCO was established in 2001.

Mains Question

Q. Discuss the significance of the Shanghai Cooperation Organisation (SCO) for India’s strategic and security interests. How does India balance cooperation and challenges within the SCO framework? [250 words]

5.Govt. Clears ₹30 Billion Withdrawal for MaldivesSource: The Hindu

Why in News?

• India has approved a ₹30 billion withdrawal for Maldives under the SAARC Currency Swap Framework.

• This is the first drawdown under the renewed 2024–2027 framework.

• The move reflects India’s continued economic support to Maldives amid evolving bilateral relations and strategic competition in the Indian Ocean Region (IOR).

About SAARC Currency Swap Framework

• The SAARC Currency Swap Framework is a regional financial arrangement designed to provide short-term foreign exchange liquidity support to SAARC member countries.

• It acts as a backstop funding mechanism during Balance of Payments (BoP) crises or short-term foreign exchange shortages.

• It helps member nations maintain macroeconomic stability and exchange rate stability.

• It is operated by the Reserve Bank of India (RBI) with the concurrence of the Government of India.

• It was launched on 15 November 2012.

Member Countries Covered

• Afghanistan• Bangladesh• Bhutan• India• Maldives• Nepal• Pakistan• Sri Lanka

Key Features of the 2024–2027 Framework

1. Dual Swap Windows

(a) INR Swap Window

• New addition in the revised framework.

• Total corpus: ₹250 billion

• Supports trade settlement and liquidity support in Indian Rupee.

• Strengthens rupee internationalisation and regional trade integration.

(b) US Dollar / Euro Window

• Existing facility continued.

• Total corpus: US$ 2 billion

• Supports major global currency requirements.

2. Central Bank-to-Central Bank Arrangement

• Eligible countries enter bilateral swap agreements directly with RBI.

• It functions as emergency liquidity support.

• Usually valid for 3 months with rollover options.

Why Maldives Needed It

• Maldives faces high external debt and recurring foreign exchange pressure.

• Tourism-dependent economies are highly vulnerable to external shocks.

• Import dependence creates pressure on forex reserves.

• Currency swap support helps stabilize short-term payment obligations.

• A previous $400 million facility matured recently and was successfully repaid.

Importance for India

Neighbourhood First Policy: Demonstrates India’s commitment to regional stability and trusted partnerships.

Strategic Presence in Indian Ocean

• Maldives is located in a highly strategic maritime zone of the Indian Ocean Region.

• It lies close to major Sea Lines of Communication (SLOCs).

Counterbalance to China: Economic engagement helps India maintain strategic influence amid growing Chinese presence.

Financial Diplomacy

• Provides support without harsh conditionalities unlike some multilateral lending systems.

India–Maldives Relations: Strategic Reset

• Relations faced strain after President Mohamed Muizzu came to power in 2023 with “India Out” rhetoric.

• Relations improved significantly after Prime Minister Narendra Modi visited Maldives in 2025.

• Cooperation continues in:

• Defence• Maritime security• Infrastructure• UPI and RuPay integration• Greater Malé Connectivity Project• Debt restructuring• Humanitarian assistance

Challenges

• Political instability in Maldives affects long-term policy continuity.

• Chinese strategic investments create regional competition.

• Debt vulnerability of Maldives creates repeated financial risks.

• Domestic nationalism sometimes creates anti-India sentiment.

Way Forward

• India should deepen institutional economic partnerships beyond emergency support.

• Maritime security cooperation should remain strong.

• Development projects must be completed quickly to maintain trust.

• Financial diplomacy should be linked with sustainable capacity-building.

• Regional platforms like SAARC should be revived for stronger South Asian cooperation.

Conclusion

• The ₹30 billion withdrawal approval reflects India’s strategic use of economic diplomacy.

• The SAARC Currency Swap Framework is not merely a financial tool but also an instrument of regional stability and geopolitical trust.

• Supporting Maldives strengthens both India’s Neighbourhood First policy and its long-term Indian Ocean strategy.

Prelims MCQ

Q. With reference to the SAARC Currency Swap Framework, consider the following statements:

1. It was launched by the Reserve Bank of India in 2012.
2. It provides long-term development loans for infrastructure projects.
3. It aims to help member countries manage short-term foreign exchange shortages.

Which of the statements given above is/are correct?

(a) 1 and 3 only(b) 2 only(c) 1, 2 and 3(d) 3 only

Answer: (a) 1 and 3 only

Explanation:

• Statement 1 is correct — It was launched in 2012 by RBI.

• Statement 2 is incorrect — It is not for long-term development loans; it is a short-term liquidity support mechanism.

• Statement 3 is correct — It helps during short-term forex shortages and BoP stress.

Mains Question

Q. Discuss the strategic importance of the SAARC Currency Swap Framework for India’s Neighbourhood First policy. How does financial diplomacy strengthen India’s regional influence in South Asia?[250 words]