UPSC Mains Current Affairs for 9 March 2025

What’s in Today’s Article?

• India U.S. oil imports Latest News
• India's Commitment to U.S. Energy Imports
• Expanding U.S. Energy Supply to India
• India’s Growing Oil and Gas Demand
• India’s Diversified Energy Strategy
• India’s Growing LNG Demand
• Conclusion
• India U.S. oil imports FAQ’s

India U.S. oil imports Latest News

• India plans to increase its oil and natural gas imports from the U.S., following Prime Minister Modi’s meeting with President Trump in February. Indian officials stated that energy purchases could rise from $15 billion to $25 billion. 
• A Reuters report showed that U.S. crude exports to India reached 3,57,000 barrels per day in February, up from 2,21,000 bpd last year.

India's Commitment to U.S. Energy Imports

• India, the world's third-largest oil importer, has agreed to increase its oil and gas purchases from the U.S. 
• This is to strengthen energy ties and secure hydrocarbon supplies, crucial for meeting its 85% import-dependent crude oil needs.

Boost to Bilateral Trade

• This move aligns with efforts to double U.S.-India bilateral trade to $500 billion over the next five years. 
• Currently, trade favors India, with a $45.7 billion goods trade surplus in 2024, a 5.4% rise from 2023.

Diversifying Energy Sources

• According experts, increasing U.S. energy imports will enhance India’s supply diversity and strengthen long-term energy security.

Expanding U.S. Energy Supply to India

• India aims to establish the U.S. as a key supplier of crude oil, petroleum products, and liquefied natural gas (LNG) to diversify its energy sources and enhance security.

Strengthening Hydrocarbon Trade and Investments

• Both countries have agreed to increase trade in hydrocarbons, including ethane and petroleum products, while boosting investments in oil and gas infrastructure and fostering collaboration between energy companies.

Broader Energy Cooperation

• Discussions also covered strengthening civil nuclear energy ties and U.S. support for India's full membership in the International Energy Agency (IEA).

India’s Growing Oil and Gas Demand

• In 2023-24, India imported 234.26 million tonnes of crude oil, with import dependence rising to 87.8%. 
• Domestic production remained stagnant at 29.36 million tonnes, covering less than 13% of total demand. 
• Despite similar import volumes, the import bill fell to $133.37 billion due to lower global prices, compared to $157.53 billion in 2022-23.

Petroleum and LNG Imports

• India spent $22.93 billion importing 48.69 million tonnes of petroleum products like LPG and fuel oil while exporting 62.59 million tonnes worth $47.72 billion. 
• The country also imported 31.80 billion cubic metres (bcm) of LNG for $13.405 billion in 2023-24, up from 26.30 bcm in the previous fiscal.

Strategic Focus on Clean Energy and U.S. LNG

• India aims to increase natural gas consumption from 6% to 15% of its energy mix, strengthening ties with the U.S. as a key LNG supplier. 
• If sanctions on Russia are lifted, Europe may resume Russian gas imports, prompting the U.S. to expand its customer base and secure new markets.

India’s Diversified Energy Strategy

• While strengthening energy ties with the U.S., India continues to engage with multiple suppliers, including Brazil, Argentina, Suriname, Canada, and Guyana, to ensure supply security and price stability.

Russia’s Growing Role in India’s Oil Imports

• Since the Ukraine war, Russia has become a key crude oil supplier to India, offering discounted prices amid G7-imposed sanctions. 
• India purchased Russian crude worth €49 billion in the third year of the conflict.

Shift in India's Oil Sourcing

• Traditionally reliant on West Asia, India’s imports from Russia surged from less than 1% to 40% of its total crude oil imports within a short period, making Russia a dominant supplier.

India’s Growing LNG Demand

• India’s natural gas consumption is projected to reach 103 billion cubic meters (bcm) annually by 2030. 
• After a decade of slow growth, demand surged by over 10% in both 2023 and 2024, signaling a turning point.

Domestic Production and Supply Challenges

• Domestic gas production, which met 50% of demand in 2023, is expected to rise to nearly 38 bcm by 2030. 
• However, India will still rely heavily on LNG imports to meet its growing energy needs.

Key Drivers of Growth

• Three major factors—rapid infrastructure expansion, recovering domestic production, and an expected easing of global gas market conditions—are driving India’s gas market transformation.

Strategic Planning for Energy Security

• With a wave of new global LNG supply expected, India must ensure supply security through strategic planning and market coordination to maintain competitiveness in its price-sensitive energy market.

Conclusion

• The government is implementing a multi-pronged approach to reduce import dependency by promoting alternative energy sources and domestic production. 
• India is expanding the use of ethanol, compressed biogas, and biodiesel to substitute crude oil demand and enhance energy security.
• The country is actively developing EV charging infrastructure to support the transition to cleaner mobility and reduce reliance on fossil fuels.

India U.S. oil imports FAQs

Q1. Why is India increasing oil imports from the U.S.?

Ans. India aims to diversify energy sources, enhance supply security, and strengthen trade ties with the U.S.

Q2. How much U.S. crude oil does India currently import?

Ans. In February, U.S. crude exports to India reached 3,57,000 barrels per day, up from 2,21,000 bpd last year.

Q3. What role does LNG play in India’s energy mix?

Ans. India plans to increase natural gas consumption from 6% to 15% of its energy mix to boost clean energy use.

Q4. How has Russia impacted India’s oil imports?

Ans. Russia became India's top crude supplier post-Ukraine war, now contributing 40% of total imports due to discounted pricing.

Q5. What is India’s long-term energy strategy?

Ans. India is focusing on LNG, biofuels, and EV infrastructure to reduce oil dependency and ensure long-term energy security.

Source: TH | ET | IE

What’s in Today’s Article?

• India-Mauritius Relations Latest News
• The Chagos Archipelago
• Negotiations Over the Chagos Archipelago’s Sovereignty
• India-Mauritius Relations - A Brief Overview
• Significance of Indian PM’s Visit to Mauritius
• Conclusion
• India-Mauritius Relations (FAQs)

India-Mauritius Relations Latest News

• Prime Minister Narendra Modi is set to visit Mauritius from March 11-12, 2025, where he will be the chief guest at the country’s national day celebrations. 
• Amid this visit, Foreign Secretary Vikram Misri reaffirmed India’s support for Mauritius’ claims over Chagos Archipelago, emphasizing India’s commitment to decolonization.

The Chagos Archipelago

• It is a group of seven atolls comprising over 60 islands in the Indian Ocean about 500 kilometres (310 mi) south of the Maldives archipelago. 
• This chain of islands is the southernmost archipelago of the Chagos-Laccadive Ridge, a long submarine mountain range in the Indian Ocean.
• From 1715 to 1810, the Chagos Islands were part of France's Indian Ocean possessions. Under the Treaty of Paris (1814), France ceded the Islands to the United Kingdom.
• Mauritius became the British Empire's main sugar-producing colony and remained a primarily sugar-dominated plantation-based colony until independence(in 1968).
• In 1965, three years before Mauritius became independent, the UK split off the Chagos Archipelago from Mauritian territory,, to form the British Indian Ocean Territory (BIOT).
• Diego Garcia - the largest island of the Chagos Archipelago, has been used as a joint UK–U.S. military base since the 1970s.

Negotiations Over the Chagos Archipelago’s Sovereignty

• The UK and Mauritius have been engaged in prolonged negotiations over the archipelago’s sovereignty.
• The UK and the US have reached a political agreement to retain a strategic military base on Diego Garcia while restoring Mauritius' sovereignty over the rest of Chagos.
• On October 3, 2024, the UK announced that a treaty was being formalized to solidify the agreement.

India-Mauritius Relations - A Brief Overview

• India has close and long standing relations with Mauritius, anchored in shared history, demography and culture. 
• A key reason for the special ties is the fact that Indian origin people comprise nearly 70% of the island’s population of 1.2 million.
• Mauritius was one of the handful of important countries with which independent India established diplomatic relations in 1948, even before the independence of Mauritius.
• Both share uniquely close cooperation in maritime security, development partnership, capacity-building, cooperation in international fora, vibrant cultural exchanges, etc.
• India has traditionally been the ‘First Responder’ for Mauritius in times of crisis, including during the recent Covid-19 and Wakashio oil-spill crises. 
• Cumulative FDI worth USD 175 billion has come from Mauritius to India since 2000 (25% of total FDI inflows into India), thanks largely to the bilateral Double Taxation Avoidance Convention (DTAC). 
• Mauritius and India signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). After coming into force (1 April 2021), this became the first trade agreement signed by India with an African country.

Significance of Indian PM’s Visit to Mauritius

• Foreign Secretary Misri described Mauritius as a close maritime partner of India.
• Indian Air Force contingents and an Indian Navy ship will participate in Mauritius' national day celebrations.
• This visit marks PM Modi’s return to Mauritius after his last visit in 2015.
• Several agreements are expected to be signed during the visit, strengthening bilateral cooperation.

Conclusion

• PM Modi’s visit to Mauritius underscores India’s commitment to deepening strategic, economic, and diplomatic ties with the island nation. 
• The Chagos issue remains a critical aspect of India’s foreign policy, reflecting its broader stance on decolonization and regional stability.

India-Mauritius Relations FAQs

Q1. Discuss the significance of India's support for Mauritius’ claim over the Chagos Archipelago in the context of its foreign policy.

Ans. India’s support aligns with its long-standing commitment to decolonization, strengthening diplomatic ties and reinforcing its role as a key player in the Indian Ocean Region (IOR).

Q2. Examine the geopolitical implications of the UK-Mauritius agreement on the Chagos Archipelago.

Ans. The agreement impacts regional security, Indo-Pacific dynamics, and U.S.-UK relations, particularly concerning the military base at Diego Garcia.

Q3. What role does Mauritius play in India’s maritime strategy in the Indian Ocean Region (IOR)?

Ans. Mauritius is a vital maritime partner, aiding India’s regional outreach, security cooperation, and economic interests in the Indian Ocean.

Q4. Highlight the key areas of India-Mauritius bilateral cooperation.

Ans. India and Mauritius collaborate in defense, trade, economic assistance, maritime security, and infrastructure development.

Q5. Why is PM Modi’s visit to Mauritius in 2025 significant for bilateral relations?

Ans. The visit strengthens diplomatic ties, reaffirms India’s support for Mauritius on global issues, and is expected to result in new agreements enhancing cooperation.

Source: TH | IE

What’s in Today’s Article?

• New Income Tax Bill Latest News
• Introduction
• Key Provisions of the New Income Tax Bill
• Reasons for Introducing These Changes
• Potential Concerns and Controversies
• Impact of the New Bill
• Conclusion
• New Income Tax Bill Frequently Asked Questions (FAQs)

New Income Tax Bill Latest News

• The New Income Tax Bill which was introduced in the Lok Sabha last month, is expected to come into effect from April 1, 2026.

Introduction

• The Indian government has introduced the new Income Tax Bill, 2025, which aims to modernize the country’s six-decade-old tax framework by streamlining tax provisions, removing outdated references, and incorporating new regulations.
• A key highlight of this bill is the explicit inclusion of virtual digital spaces within the ambit of tax searches and seizures.
• This means that tax officers will now have the power to access digital assets, including social media, email accounts, online investments, and trading platforms, as part of their investigations into tax evasion.
• The bill, introduced in Lok Sabha last month, is currently under review by the Parliamentary Select Committee and is expected to come into effect on April 1, 2026 once passed.

Key Provisions of the New Income Tax Bill

• The Income Tax Bill, 2025, expands the definition of assets subject to search and seizure. Some of the crucial provisions include:
• Defining Virtual Digital Space:
  • The bill introduces a legal definition of virtual digital space, encompassing all digital realms where users interact, communicate, and conduct activities via computers or digital platforms.
• Power to Override Access Codes:
  • Tax authorities will have the power to override access codes to enter virtual digital spaces, such as social media accounts, email servers, and digital trading platforms, if required during tax investigations.
• Expansion of Search & Seizure Under Section 247:
  • While Section 132 of the existing Income Tax Act, 1961, already allows authorities to inspect and seize electronic records, the new bill specifically includes digital spaces as assets that can be accessed for tax audits.
• Inclusion of Digital Documents as Taxable Assets:
  • The bill explicitly recognizes digital documents, computer systems, and encrypted financial records as assets liable for taxation scrutiny, alongside traditional assets like money, bullion, and real estate.
• Mandated Cooperation from Account Holders:
  • Under Section 132(1)(iib), individuals in possession of electronic records, accounts, or documents must facilitate access to tax authorities by providing necessary credentials for audits.

Reasons for Introducing These Changes

• The expansion of tax authorities’ powers into virtual digital spaces stems from the increasing digitization of financial transactions and the rise of digital tax evasion methods.
• Addressing Tax Evasion in Digital Spaces:
  • Authorities often face challenges in detecting concealed income and undisclosed transactions occurring through online wallets, crypto assets, or offshore accounts.
  • The new bill closes this loophole by ensuring that digital records can be investigated similarly to physical records.
• Enhancing India’s Direct Tax Framework:
  • The bill aims to simplify India’s tax structure while making provisions more transparent and effective in addressing emerging financial fraud techniques.
• Aligning with Global Standards:
  • Many developed economies already have provisions that allow tax authorities to inspect digital transactions and encrypted financial accounts.
  • The new law brings India’s tax regime in line with global best practices.

Potential Concerns and Controversies

• While the bill is intended to modernize taxation, several concerns have been raised regarding:
• Privacy & Data Protection:
  • Critics argue that overriding digital access codes could compromise user privacy, leading to potential misuse of personal data by tax authorities.
• Increased Compliance Burden on Businesses:
  • Companies and individuals may face additional scrutiny, requiring them to maintain and disclose digital records for audits, increasing compliance costs.
• Potential Misuse of Power:
  • Some fear that tax authorities might misuse search and seizure powers, leading to harassment of individuals or businesses without adequate justification.

Impact of the New Bill

• For Individuals:
  • Digital financial transactions will be more closely monitored by tax authorities.
  • Individuals using offshore accounts, cryptocurrency platforms, or social media trading should be prepared for increased scrutiny.
• For Businesses:
  • Companies will need to ensure complete digital compliance in financial reporting.
  • The cost of legal and digital record-keeping may increase.
• For Tax Authorities:
  • The bill provides enhanced power to tax officers in investigating undisclosed digital transactions.
  • It aligns Indian tax laws with the global digital economy.

Conclusion

• The New Income Tax Bill, 2025, represents a significant step toward modernizing India's tax system by including digital assets under the purview of tax investigations.
• While the law seeks to curb tax evasion and streamline direct taxation, it has also raised concerns about privacy and compliance burdens.
• As the bill moves forward in Parliament, discussions around balancing tax enforcement with privacy rights will be crucial in ensuring fair and transparent implementation.

New Income Tax Bill Frequently Asked Questions (FAQs)

Q1. What is the key change introduced in the New Income Tax Bill, 2025?

Ans. The bill explicitly includes virtual digital spaces under tax searches and seizures, allowing authorities to access digital assets.

Q2. What does "virtual digital space" mean under the new tax law?

Ans. It refers to any digital realm where users interact, communicate, or perform activities through computer technology, including email, social media, and online trading platforms.

Q3. How does this bill impact businesses and individuals?

Ans. Both individuals and businesses will face stricter digital financial scrutiny, requiring them to maintain accurate records of their online transactions.

Q4. Why was the provision to override digital access codes introduced?

Ans. This measure aims to prevent tax evasion by allowing authorities to access hidden or encrypted financial records stored in digital spaces.

Q5. When will the New Income Tax Bill come into effect?

Ans. Once passed by Parliament, the bill is expected to take effect from April 1, 2026.

Source : IE

What’s in Today’s Article?

• IndiaAI Mission Latest News
• IndiaAI Mission: Driving AI Innovation in India
• Key Pillars of the IndiaAI Mission
• AI Kosha: India’s National AI Dataset Platform
• IndiaAI Mission FAQ’s

IndiaAI Mission Latest News

• Recently, the IndiaAI Mission launched AI Kosha, a national dataset platform for collecting non-personal data to develop AI models. 
• It also introduced the Common Compute portal, providing startups and academia access to shared GPUs for AI development.

IndiaAI Mission: Driving AI Innovation in India

• The IndiaAI Mission was initially launched as a joint initiative between the Ministry of Electronics and Information Technology and Nasscom in 2023. 
• It has since evolved into a government-led initiative with an outlay of ₹10,371.92 crore. 
• The mission's key goals are:
  • "Making AI in India" – Encouraging domestic AI development.
  • "Making AI Work for India" – Ensuring AI benefits various sectors in the country.
• This initiative aims to bolster India’s AI ecosystem by making high-end computing resources accessible to startups and researchers.

Common Compute Facility & GPU Access

• A major initiative under the mission is the Common Compute facility, which provides startups and researchers access to Graphics Processing Units (GPUs)—essential for training and running AI models. 
• Since GPUs are expensive and in high demand globally, IndiaAI is empaneling data centers with GPU resources.

Current GPU Deployment

• 14,000 GPUs have already been acquired and commissioned.
• More GPUs will be added quarterly to expand computing resources.
• The mission will allocate GPU access to selected entities based on need and availability.

Key Pillars of the IndiaAI Mission

• The IndiaAI Mission comprises seven pillars, with a focus on building India’s AI capabilities across various domains.

Common Compute Facility

• Provides GPU access to startups and researchers.
• Aims to reduce dependency on costly foreign computing resources.

AI Kosha (IndiaAI Datasets Platform)

• Develops India-specific datasets to improve AI models.
• Reduces bias from Western-trained AI models by incorporating local language and cultural data.

AI Safety Institute of India (Upcoming)

• Focuses on AI risk assessment and safety guidelines.
• Ensures AI tools are reliable and secure, preventing misuse.

IndiaAI Innovation Centre

• Develops domain-specific foundation models for various industries.

AI Application Development Initiative

• Supports AI-based solutions for commercial and societal applications.

Future Skills Initiative

• Establishes AI labs in smaller cities to foster skill development.

Startup Financing

• Provides financial support to AI startups to boost innovation.

Building India’s Own Foundation Model

• The IndiaAI Mission has invited proposals to develop an indigenous AI foundation model.
• 67 applications have been received, and the government aims to fast-track the process within months.

AI Kosha: India’s National AI Dataset Platform

• AI Kosha is part of the IndiaAI Datasets Platform, aimed at addressing a key challenge in AI development—the dominance of Western-trained models. 
• Many AI models rely heavily on English-language data from developed countries, making them less effective for India’s diverse linguistic and cultural landscape.

Building India-Specific AI Models

• AI Kosha seeks to make India-centric data more accessible for researchers and AI developers.
• It includes datasets such as translation models for Indian languages, helping reduce bias in AI training.

Impact on AI Development

• Open-source AI models provide a foundation, but local datasets are essential to ensure AI tools are relevant and effective for Indian users.
• AI Kosha aims to empower Indian firms to build indigenous generative AI models, reducing reliance on foreign AI tools like OpenAI and Google’s models.

IndiaAI Mission FAQs

Q1. What is the IndiaAI Mission?

Ans. The IndiaAI Mission is a ₹10,371.92 crore government initiative to boost AI development and innovation in India.

Q2. What is AI Kosha?

Ans. AI Kosha is India's national dataset platform, enabling AI models trained on diverse Indian languages and cultural data.

Q3. How does the Common Compute Facility support AI development?

Ans. It provides GPU access to startups and researchers, reducing reliance on costly foreign computing resources.

Q4. Why is IndiaAI building its own foundation model?

Ans. To create indigenous AI models tailored for India's needs, reducing dependency on foreign AI technologies.

Q5. How does AI Kosha reduce AI bias?

Ans. By training AI models on Indian-language datasets, ensuring better cultural and linguistic representation in AI systems.

Source: TH | Forbes