Why in News?

Weeks before the Ganga Water Treaty with Bangladesh expires on 12 December 2026, the External Affairs Ministry said the two countries have a “structured mechanism”, the Joint Rivers Commission, to deal with its requirements. There is no update on renewal.

About the Ganga Water Treaty (1996)

• Signed: 12 December 1996, for 30 years, to end a long dispute over dry-season flows of the Ganga at the Farakka Barrage in West Bengal.
• When it applies: The lean season, 1 January to 31 May, in 10-day periods.
• Safeguard: From 11 March to 10 May, each country is guaranteed 35,000 cusecs during three alternating 10-day periods.
• Monitoring: Joint monitoring of flows at Farakka, with disputes going to the Joint Rivers Commission and then the two governments.
• Review: Either country can seek a review after two years. Renewal needs mutual consent.

Sharing formula (flow at Farakka)

Background

• Joint Rivers Commission: Set up in 1972 as a bilateral body on common and border rivers. India and Bangladesh share 54 rivers.
• Other water arrangements: The Kushiyara agreement (2022) and the Feni MoU (2019). The Teesta agreement has not been signed.
• Why renewal is complicated: Indian officials have indicated they want a new accord that reflects higher dry-season demand in the Ganga basin states. Bangladesh has said the treaty has not fully ended its downstream water-security concerns.
• Context: India’s water-sharing arrangements with its neighbours are under strain, and the Indus Waters Treaty with Pakistan has been in abeyance since April 2025.

Why in News?

Ahead of COP31 in Antalya, Türkiye (Nov 2026), the Union Environment Minister set out India’s priorities: predictable climate finance, party-driven mitigation and adaptation, technology transfer and a just transition.

India is yet to decide on a proposed global “35 by 35” electrification target.

Key Points: India’s Priorities at COP31

• Equity first: The principles of equity and CBDR-RC must be fully respected. Global targets must respect national circumstances, sovereignty and poverty eradication.
• Climate finance: India wants a decision to begin Climate Finance Work Programme. Finance under Article 9.1 of the Paris Agreement is a developed-country obligation, and must be predictable, largely public and concessional, without adding to debt.
• Mitigation: The mitigation outcome and the Global Stocktake should stay party-driven and non-punitive, with no new top-down targets.
• Fossil fuels: An immediate phase-out is not feasible, as energy access is the top priority. India is already raising renewables, forest cover and energy efficiency.
• Adaptation: Global Goal on Adaptation indicators should be voluntary and must not condition finance. Adaptation finance must be scaled up.
• Just transition: India supports continuing the Just Transition Work Programme, seen through climate justice and the right to development.
• Technology & carbon markets: Technology transfer is a developed-country obligation, and carbon markets should remain voluntary.
• Presidency initiatives: Voluntary initiatives under the Presidency Action Agenda should stay separate from negotiations.
• Coalitions and side events: India will work with the G-77 and China, LMDC and BASIC, and hold events on LeadIT 3.0, coastal resilience, IBCA and forests.

The Presidency’s Proposals

• 35 by 35: Raise electricity’s share of final energy use to 35% by 2035.
• Waste: Halve the growth in global waste by 2035.
• Buildings: Cut energy intensity in the building sector by at least 25%.
• India’s position: It has not yet decided on the electrification pledge, which is a voluntary presidency target and not an agreed COP decision.

Other Outcomes Highlighted

• CBD COP17 (Yerevan, Armenia): India backed the Kunming-Montreal Global Biodiversity Framework with fair benefit-sharing and adequate, predictable finance. It insisted on developed countries’ obligations under Article 20(2) of the Convention, opposed shifting financial responsibility to developing countries, and backed benefit-sharing from Digital Sequence Information through the multilateral mechanism, including the Cali Fund.
• UNCCD COP17 (Ulaanbaatar, Mongolia): India, elected Chair of the Asia-Pacific Regional Group, reaffirmed its pledge to restore over 26 million hectares by 2030, called for finance for restoration and drought resilience, and launched its first Guide to Grasslands and Other Open Natural Ecosystems of India.

Background

• COP31 structure: Türkiye is the host and holds the presidency, while Australia is President of Negotiations, an arrangement agreed at COP30 in Belém.
• CBDR-RC: The principle in the UNFCCC that all countries share responsibility, but developed countries have more because of historical emissions and capabilities.
• Article 9.1 (Paris Agreement): Developed countries shall provide finance to developing countries.
• GGA: The global framework to track progress on adaptation. Just Transition Work Programme: A UNFCCC process on fair, inclusive energy transitions.
• G-77 and China: The largest group of developing countries. LMDC: Like-Minded Developing Countries. BASIC: Brazil, South Africa, India and China.

Why in News?

Foreign portfolio investors have pulled about $51 billion out of Indian equities since 2024-25, and there are calls to review the long-term capital gains (LTCG) tax. The Finance Minister has cautioned against seeing tax concessions as the main driver of markets.

Key Points

• Why capital is leaving: Global money is moving to the AI ecosystem (Nvidia, Google, Samsung, SK Hynix, TSMC), where India has little presence. Yields in developed markets are rising, with the 10-year US bond yield at about 4.9%, and earnings and valuations also matter.
• Tax is not the whole answer: A special tax structure for foreign investors would raise questions of discrimination against domestic investors.
• What the government has done: In June 2026, it exempted foreign investors from tax on interest income and capital gains from government bonds.
• Needed: A competitive regulatory and tax framework to become a global financial centre.
• Outward flows: Remittances under the Liberalised Remittance Scheme (LRS) crossed $20 billion in the first eight months of 2026. Curbs on such outflows would be a step backwards.

Background

• FPI versus FDI: FPIs buy shares and bonds without control over companies and can leave quickly, while FDI is long-term investment with management control. SEBI regulates FPIs.
• Capital gains tax: LTCG on listed shares held over 12 months is taxed at 12.5%, raised from 10% in the 2024 Budget.
• June 2026 measure: The Income-tax (Amendment) Ordinance, 2026 removed the 20% withholding tax on interest and the 12.5% LTCG tax on government securities for eligible foreign investors, from 1 April 2026.
• Fully Accessible Route (FAR): The RBI route that lets foreign investors buy specified government bonds without limits.
• LRS: Lets resident individuals remit up to $250,000 a year abroad.

Why in News?

Ahead of the Hornbill Festival (1 to 10 December 2026, Kohima), the Nagaland government has asked the Centre to completely withdraw the Protected Area Permit (PAP) regime from the State, saying it hurts investment, growth and tourist flow.

Key Points

• The demand: Nagaland’s Chief Minister wrote to the Union Home Ministry in September, saying a regulation “conceived in a very different historical and security environment” should not hold back a peaceful State.
• Why the festival matters: The Hornbill Festival draws over one lakh visitors, including foreign tourists.
• Tourism impact: A convoluted application process has led to a drastic fall in international visitors, who have limited days.
• Centre’s response so far: The Home Minister has said he will study the matter, but there is no concrete reply. The Centre relaxed the rules before the 2025 festival, but the State says last-minute relaxations do not give foreign visitors the certainty to plan months ahead.

About the Protected Area Permit

• What it is: A permit issued by the Government of India that lets foreigners visit areas between the “Inner Line” and the international border that are declared Protected Areas.
• Legal basis: The Foreigners (Protected Areas) Order, 1958, issued under the Foreigners Act, 1946, which has been replaced by the Immigration and Foreigners Act, 2025. Foreigners need a special permit for protected areas. The permit specifies the place of entry, place of stay and duration.
• Coverage: Parts of Arunachal Pradesh, Manipur, Mizoram, Nagaland, Sikkim, Himachal Pradesh, Jammu and Kashmir, Rajasthan and Uttarakhand.
• Timeline: The regime was relaxed for Manipur, Mizoram and Nagaland in 2010-11 to boost tourism, and the relaxation was extended repeatedly. The Centre reimposed it on 17 December 2024, citing security concerns over the influx of people from neighbouring countries.

PAP and ILP

• PAP (Protected Area Permit): For foreigners visiting border areas.
• ILP (Inner Line Permit): For Indian citizens from other parts of India who visit certain tribal areas.
• Why ILP exists: The British introduced it under the Bengal Eastern Frontier Regulation, 1873, to keep tribal hill areas separate from the plains and protect local cultures.
• ILP States: Arunachal Pradesh, Nagaland, Mizoram and Manipur.

Legal Framework

• Legal basis: The Foreigners (Protected Areas) Order, 1958 was issued under the Foreigners Act, 1946, which has been replaced by the Immigration and Foreigners Act, 2025 (in force 1 September 2025). The new Act requires a special permit for protected, restricted or prohibited areas.
• Union subject: Entries 17 and 19 of the Union List cover citizenship, aliens and admission into India, so the entry rules for foreigners are decided by the Centre.
• Article 19(1)(d) and 19(5): Citizens can move freely, but the State can impose reasonable restrictions to protect Scheduled Tribes. This is the basis for the Inner Line Permit.
• Article 371A (Nagaland): Parliament’s laws on Naga customary law, religious or social practices and land ownership do not apply unless the State Assembly decides.
• CAA 2019: Does not apply to Sixth Schedule areas and ILP States.
• Manipur: Brought under the ILP system in December 2019.

Why in News?

Protest economy: While hearing Delhi traders’ plea against protests in the festive season, the Supreme Court said there is also a “protest economy” that benefits hawkers and vendors at protest sites.

NCLT infrastructure: The NCLT Bar Association told the Supreme Court that four Delhi benches share two courtrooms and sit in half-day shifts, because the building is “dilapidated”.

Part 1: Protests and the “Protest Economy”

• The plea: Delhi traders say protests “bleed” them during the festive season, and asked for a two-month ban on protests. The designated site, Ramlila Maidan, is about a mile from Connaught Place.
• The Court’s view: The Chief Justice-led bench sympathised with the livelihood of small traders and vendors, but noted it competes with the protesters’ right to expression. It observed that hawkers and vendors also earn from protest sites, a “mela economy”.
• Order: The Court issued notice but gave no interim order without hearing the protest organisers.

Background: Protests

• Rights involved: Article 19(1)(a) (speech and expression), Article 19(1)(b) (peaceful assembly without arms) and Article 19(1)(g) (profession, trade or business). Articles 19(2), (3) and (6) allow reasonable restrictions.
• Earlier rulings: The Court has held that peaceful protest is a fundamental right but not absolute. It struck down a blanket ban on protests at Jantar Mantar (2018) and held that public roads cannot be occupied indefinitely (Shaheen Bagh, 2020).

Part 2: NCLT Infrastructure Gaps

• Delhi benches: Four benches share two courtrooms in half-day shifts.
• Nationwide: Of 31 courts, only 13 work full-day.
• Unsafe building: A CSIR-CBRI report found severely deteriorated roof slabs and corroded reinforcement, so the seventh floor was vacated and two more courtrooms were lost.
• The Bar’s ask: A purpose-built building, with the NCLT and NCLAT together near the Delhi High Court and Supreme Court.
• Source of details: An affidavit in a suo motu Supreme Court case on NCLT appointments and infrastructure.

Background: NCLT

• NCLT: A quasi-judicial body set up under Section 408 of the Companies Act, 2013 (in force from 1 June 2016), which replaced the Company Law Board. It hears company law matters and is the adjudicating authority for corporate insolvency under the Insolvency and Bankruptcy Code, 2016.
• NCLAT: Hears appeals against NCLT orders (Section 410), and the Supreme Court hears appeals from NCLAT.
• Tribunals: Article 323B allows Parliament to set up tribunals for matters such as taxation, industrial disputes and company matters. The NCLT has 15 benches, with its Principal Bench in Delhi.