INTERNATIONAL RELATIONS | MARCH 2026
Prelims: India-US trade tariffs, New START treaty timeline, Exercise KHANJAR, CTF 154, India-Seychelles/Greece/Malaysia bilateral facts
Mains: GS-II (International Relations — Bilateral/Multilateral Agreements, India’s Foreign Policy, Nuclear Disarmament), GS-III (Security — Defence Exercises)
February 2026 witnessed a dense calendar of India’s international engagements spanning trade negotiations, nuclear arms control milestones, defence exercises, and bilateral partnerships across multiple continents. This comprehensive analysis maps each development to its UPSC significance, connecting individual events to broader patterns of India’s evolving foreign policy architecture.
India-US Interim Trade Deal: Tariff Restructuring and Strategic Commerce
The most consequential trade development of February 2026 was the India-US Interim Trade Agreement, which restructured the tariff architecture between the world’s largest and fifth-largest economies. The deal reduced effective tariffs from 50% to 18% — the 50% comprising reciprocal tariffs of 25% plus an additional penal 25% imposed on India for its continued procurement of Russian arms and crude oil.
- Tariff reduction: From 50% to 18% (across multiple product categories)
- Indian concessions: Eliminate/reduce tariffs on US industrial goods, food products, and agricultural commodities including DDGs (Dried Distillers Grains), sorghum, tree nuts, soybean oil, and wine
- Section 232: Applied on aircraft parts, maintaining US leverage on defence-industrial supply chains
- Trade target: USD 500 billion over 5 years
- Strategic linkage: Penal tariff component linked to India-Russia defence and energy trade
The deal represents a pragmatic compromise. India gains predictable market access for its IT services and pharmaceutical exports, while the US secures agricultural market opening — a long-standing demand of the American farm lobby. The Section 232 provision on aircraft parts maintains American leverage over India’s defence modernisation, effectively creating a dual-use technology chokepoint.
For UPSC Mains, this deal illustrates the intersection of trade policy, strategic autonomy (India’s Russia relationship), and the mechanics of reciprocal tariff negotiations in a multipolar trade order.
New START Treaty Expiry: The End of Nuclear Arms Control
On February 5, 2026, the New START (Strategic Arms Reduction Treaty) expired — ending the last remaining nuclear arms control agreement between the United States and Russia. This marks a watershed moment in global security architecture.
- START-I (1991): First Strategic Arms Reduction Treaty — signed by Bush Sr. and Gorbachev, reduced deployed warheads to 6,000 each
- SORT / Treaty of Moscow (2002): Reduced deployed warheads to 1,700-2,200
- New START (2010): Signed by Obama and Medvedev, limited deployed warheads to 1,550, deployed delivery vehicles to 700. Extended in 2021 by Biden for 5 years
- February 5, 2026: New START expires. No successor treaty negotiated
The expiry without a successor agreement means there is now no legally binding framework limiting US or Russian nuclear arsenals — for the first time since the early 1970s (when SALT-I was signed). This has profound implications for global nuclear order, the NPT (Non-Proliferation Treaty) regime, and India’s own nuclear doctrine, which is premised on credible minimum deterrence in a world where the superpowers maintain numerical superiority but within negotiated limits.
Exercise KHANJAR: India-Kyrgyzstan Special Forces
Exercise KHANJAR — the 13th edition of the India-Kyrgyzstan bilateral military exercise — was conducted at Misamari, Assam, over a 14-day duration. The exercise focuses on Special Forces operations, urban warfare, and counter-terrorism under a UN mandate framework.
Key features:
- Initiated: 2011 (annual exercise)
- Focus areas: Close Quarter Battle (CQB), room intervention, hostage rescue, IED detection, joint CT operations
- Significance: Kyrgyzstan is a key Central Asian partner — exercises in India’s Northeast terrain prepare both forces for mountainous and semi-urban operational environments
BCIC-UNIDO: BRICS MSME and Industry 4.0 Partnership
The BRICS Council for Industry and Commerce (BCIC) and UNIDO announced a joint initiative to support MSME development across BRICS nations, with a focus on Industry 4.0 adoption — digital manufacturing, IoT-enabled supply chains, and AI-driven quality control. For India, where MSMEs contribute approximately 30% of GDP and 45% of exports, this initiative offers technology transfer pathways and market access within the BRICS framework.
India-Malaysia: Comprehensive Strategic Partnership
The Prime Minister’s third visit to Malaysia built upon the Comprehensive Strategic Partnership (CSP) established in August 2024. Key outcomes included:
- CBI-Anti-Corruption Commission MoU: Cooperation on cross-border financial crimes and fugitive tracking
- Diaspora engagement: Malaysia hosts 2.9 million Indian-origin residents — the largest Indian diaspora in Southeast Asia
- Defence exercises: Three bilateral exercises — Harimau Shakti (Army), Samudra Laksamana (Navy), Udara Shakti (Air Force)
India-Seychelles: Maritime Security Partnership
President Dr Patrick Herminie of Seychelles visited India, resulting in a comprehensive USD 175 million development package comprising USD 125 million Line of Credit and grants. Seven MoUs were signed covering maritime security, blue economy, renewable energy, and capacity building.
Seychelles occupies a pivotal position in India’s Indian Ocean security architecture — alongside Mauritius, Maldives, and Sri Lanka, it forms the “necklace of friendly states” that counters strategic encirclement concerns in the Indo-Pacific.
India-Greece: Defence Cooperation Joint Declaration
India and Greece signed a Joint Declaration of Intent on Defence Cooperation with a 5-year roadmap. The signing took place at Manekshaw Centre, New Delhi, between Defence Minister Rajnath Singh and Greek Defence Minister Nikos Dendias.
- Geographical bridge: Greece is NATO’s southeastern flank; India’s engagement with Greece provides a European Mediterranean partnership alternative to the UK and France
- Naval cooperation: Both navies operate in critical chokepoints — India in the Straits of Malacca and Hormuz, Greece in the Aegean and Eastern Mediterranean
- Defence industry: Potential for co-production in shipbuilding and land systems
- Historical ties: Alexander’s campaigns created ancient links; modern ties are being rebuilt through strategic convergence
CTF 154: Indian Navy’s Maritime Leadership
The Indian Navy assumed command of Combined Task Force 154 (CTF 154) under Commodore Mokashi. CTF 154 operates under the Combined Maritime Forces (CMF), headquartered in Bahrain, with 46 member nations. India joined CMF in May 2023.
CTF 154 operates on five pillars:
- Maritime Domain Awareness (MDA): Intelligence sharing and surveillance
- Law of the Sea: Upholding UNCLOS and freedom of navigation
- Interdiction: Counter-piracy, counter-narcotics, and anti-smuggling operations
- Search and Rescue: Humanitarian assistance at sea
- Leadership development: Capacity building for smaller navies
India commanding a CTF within a 46-nation framework underscores its growing acceptance as a net security provider in the Indian Ocean Region — a role articulated in the SAGAR (Security and Growth for All in the Region) doctrine.
Source: UPSC Essentials — Current Affairs Pointers (International Cooperation), The Indian Express — March 2026
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