UPSC Current Affairs — Monday, 27 July 2026

What You Need to Know

The Indus Waters Treaty (IWT) is a 1960 water-sharing agreement between India and Pakistan, brokered by the World Bank, dividing the Indus river system into eastern rivers (India) and western rivers (Pakistan). It has survived wars but is now under strain due to Indian hydroelectric projects and Pakistan's protests.

Why It Matters for UPSC

For governance, the treaty is a model of transboundary water management but faces challenges from climate change and political tensions. For UPSC, it tests understanding of international water law, bilateral dispute resolution, and the role of third-party mediation.

Background

Signed in 1960 after years of negotiations, the IWT allocates eastern rivers (Sutlej, Beas, Ravi) to India and western rivers (Indus, Chenab, Jhelum) to Pakistan. It established a Permanent Indus Commission and a dispute resolution mechanism involving the World Bank. Key turning points include India's 2016 suspension of the treaty after the Uri attack and recent abeyance in 2025.

Current Relevance

In April 2025, India placed the IWT in abeyance, citing Pakistan's support for cross-border terrorism. Pakistan has protested at international forums, accusing India of violating treaty provisions through hydroelectric projects like Kishanganga and Ratle. This raises questions about treaty viability and water security in South Asia.

Key Points for Revision

• •Indus Waters Treaty signed in 1960, brokered by World Bank, divides Indus system into eastern (India) and western (Pakistan) rivers.
• •Eastern rivers: Sutlej, Beas, Ravi – allocated to India; western rivers: Indus, Chenab, Jhelum – allocated to Pakistan.
• •India placed IWT in abeyance in April 2025, citing Pakistan's terrorism links; Pakistan protests as lower riparian.
• •Dispute resolution involves Permanent Indus Commission, neutral expert, and Court of Arbitration; India has used Article XII(3) to amend/terminate.
• •Key Indian projects disputed: Kishanganga (330 MW) and Ratle (850 MW) hydroelectric plants on western rivers.

Prelims Practice MCQs

Mains Practice Questions

• Discuss the strategic and legal implications of India placing the Indus Waters Treaty in abeyance in 2025. How does this impact India-Pakistan relations and regional water security? (250 words)

  Discuss

• Examine the role of international treaties in resolving transboundary water disputes with reference to the Indus Waters Treaty. What lessons can India learn for future water diplomacy? (250 words)

  Examine

What You Need to Know

The Saudi-US defense deal is a bilateral security agreement that enhances military cooperation, including arms sales and joint operations, reflecting a strategic realignment in the Middle East. It underscores the US's continued influence despite global multipolarity.

Why It Matters for UPSC

For UPSC, it tests understanding of how major power competition shapes regional alliances, India's energy security (as Saudi is a key oil supplier), and implications for India's ties with both nations. It also highlights contradictions in US foreign policy between democracy promotion and realpolitik.

Background

The US-Saudi relationship has been based on oil-for-security since 1945. The 1973 oil embargo and 9/11 attacks strained ties, but the 2022 OPEC+ production cut and Biden's visit to Jeddah marked a reset. The deal comes amid China's growing influence in the Gulf and Russia's war in Ukraine.

Current Relevance

The deal was signed in September 2023, amid US efforts to counter China's Belt and Road Initiative and Russia's influence. It includes provisions for Saudi nuclear energy, raising non-proliferation concerns. For India, it necessitates careful diplomacy to avoid alienating Iran or Russia while securing energy and diaspora interests.

Key Points for Revision

• •The Saudi-US deal signals a shift from US-led unipolarity to a multipolar world where middle powers like Saudi Arabia leverage competition.
• •The deal includes potential nuclear cooperation, which could trigger a regional arms race involving Iran and Israel, impacting India's security.
• •India imports about 18% of its crude oil from Saudi Arabia; any disruption could affect India's energy security and inflation.
• •The deal contradicts US stated values of democracy and human rights, as Saudi Arabia has a poor record, highlighting realist foreign policy.
• •It challenges China's growing influence in the Gulf, as Saudi had earlier deepened ties with Beijing (e.g., joining BRICS, oil deals).

Prelims Practice MCQs

Mains Practice Questions

• Discuss the implications of the Saudi-US defense deal for India's strategic interests in the Middle East. (250 words)

  Discuss

• Critically analyse the contradictions in the new world order as highlighted by the Saudi-US defense deal. (150 words)

  Critically analyse

What You Need to Know

The US, under Trump, threatens tariffs on generic drugs, targeting Indian pharma firms that supply ~40% of generic medicines to the US market. This could raise prices and reduce competitiveness.

Why It Matters for UPSC

For India, pharma exports to US are worth ~$8 billion annually, supporting jobs and trade balance. For UPSC, it tests understanding of trade protectionism, global supply chains, and India's export vulnerabilities.

Background

Indian pharma gained US market share due to low-cost generics post-1984 Hatch-Waxman Act. Trump's 'America First' policy previously targeted Chinese goods; now pharma is in focus. No tariffs yet, but threats create uncertainty.

Current Relevance

Trump administration signals potential tariffs on pharma imports, including generics. Indian firms like Sun Pharma and Lupin face stock volatility. India may negotiate or diversify exports to EU/Asia.

Key Points for Revision

• •Indian pharma supplies ~40% of US generic drug market, worth ~$8 billion annually.
• •Proposed US tariffs could raise drug prices, hurting US patients and Indian firms' margins.
• •Key Indian players: Sun Pharma, Lupin, Aurobindo, Dr. Reddy's, Cipla have major US operations.
• •Tariff threats create uncertainty, impacting investment and R&D decisions in India's pharma sector.
• •India may need to diversify export markets to reduce dependence on US.

Prelims Practice MCQs

Mains Practice Questions

• Discuss the potential impact of US tariff threats on Indian generic pharmaceutical exports and suggest measures to mitigate the risks. (250 words)

  Discuss

• Examine the role of Indian pharmaceutical companies in the global generic drug market and the challenges they face from protectionist trade policies. (250 words)

  Examine