1. India Re-elected to ICAO Council (2025–2028 Term)
On 27th September 2025, India was re-elected to Part II of the Council of the International Civil Aviation Organization (ICAO) during the 42nd ICAO Assembly Session held in Montreal, Canada. India secured a stronger mandate compared to the 2022 elections, reflecting growing global confidence in its leadership and commitment to international civil aviation.
Key Points
- Part II Representation: Comprises States making the largest contribution to facilities for international civil air navigation.
- Founding Member: India has been a founding member of ICAO since 1944 and has maintained an uninterrupted presence on the Council for 81 years.
- Commitments for 2025–2028: Strengthening aviation safety, security, and sustainability; promoting equitable global connectivity; advancing innovation; and supporting ICAO’s No Country Left Behind initiative.
- ICAO Council Structure: The ICAO Assembly, comprising all 193 signatory States to the Chicago Convention, elects the 36-member Council every three years as its governing body.
2. RBI Announces New Steps to Boost Rupee Trade
On 1st October, 2025, the Reserve Bank of India (RBI) unveiled a set of new measures aimed at expanding the use of the Indian Rupee (INR) and other local currencies in international trade, lending, and settlement.
- The RBI has stated that Authorized Dealer (AD) banks in India, along with their overseas branches, will soon be permitted to extend loans in Indian Rupees to residents of Bhutan, Nepal, and Sri Lanka, including banks in these countries, in order to promote smoother cross-border trade flows.
- The central bank emphasized that necessary amendments to regulations will be notified shortly, providing a legal framework for Indian banks to facilitate INR-denominated credit lines to neighbouring countries.
- To encourage wider acceptance of the rupee in cross-border settlements, the RBI announced plans to expand the publication of reference rates by Financial Benchmarks India Limited (FBIL) beyond the current set of four currencies—USD, EUR, GBP, and JPY—so as to include select currencies of India’s major trading partners.
- The RBI clarified that the publication of additional currency pairs will allow banks to quote directly in more currencies against INR, thereby minimizing the need for multiple foreign exchange conversions and enhancing efficiency in trade settlements.
3. India-EFTA TEPA Comes into Effect
On 1st October 2025, the landmark India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into force.
- Signed on March 10, 2024, in New Delhi, TEPA is being hailed as India’s most ambitious free trade deal, combining market access with binding commitments on investment and job creation.
Key Points
- Historic First: For the first time in any Indian FTA, TEPA includes a binding commitment of $100 billion in foreign direct investment over 15 years, creating 1 million direct jobs.
- Investment Focus: Investments exclude foreign portfolio flows, prioritizing long-term capital for technology transfer, capacity building, and innovation.
- Goods Market Access: EFTA offers duty concessions on 92.2% of tariff lines, covering nearly all Indian exports (textiles, marine products, chemicals, machinery, gems & jewellery). India opens 82.7% of tariff lines, though sensitive sectors like dairy, coal, and medical devices are protected.
- Gold Exception: Gold imports, which form over 80% of EFTA’s exports to India, remain unaffected by tariff cuts.
- Services Liberalization: India secures improved access across 128 sub-sectors from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein, including IT, business services, education, and cultural sectors.
- Professional Mobility: Pathways for Mutual Recognition Agreements (MRAs) in professions like nursing, chartered accountancy, and architecture expand opportunities for Indian professionals.
- Export Boost: Concessions on basmati rice, guar gum, fruits, mangoes, nuts, coffee, tea, and marine products (tariff elimination up to 55%) are expected to significantly enhance India’s competitiveness.
4. India, Bhutan to Build First-Ever Cross-Border Railway Links
On 27th September 2025, India announced plans to construct two cross-border railway links with Bhutan — the first such connectivity projects between the two countries. Valued at over ₹4,000 crore, the initiative seeks to deepen trade ties and boost economic engagement.
Key Points
- Railway Links: Projects will connect Bhutan’s Gelephu with Kokrajhar in Assam, and Samtse with Banarhat in West Bengal.
- Diplomatic Engagement: Announcement followed consultations between Indian Foreign Secretary Vikram Misri and Bhutanese Foreign Secretary Aum Pema Choden in New Delhi.
- Energy Partnership: Both sides highlighted the commissioning of all six units of the 1,020 MW Punatsangchhu-II hydropower project under the India-Bhutan Joint Vision on Energy Partnership.
- Development Support: India has committed ₹10,000 crore for Bhutan’s 13th Five-Year Plan (2024–2029), doubling its allocation from the previous plan.
- Economic Significance: Railway Minister Ashwini Vaishnaw stressed the importance of seamless connectivity, noting that most of Bhutan’s EXIM trade passes through Indian ports.
- Strategic Importance: Projects hold developmental and security value amid increasing Chinese interest in Bhutan.
5. IISc Develops Siphon-Powered Thermal Desalination System
In September 2025, researchers at the Indian Institute of Science (IISc) developed a siphon-powered thermal desalination system that converts seawater into potable water faster, cheaper, and more efficiently than conventional methods.
Key Points
- Innovation in Desalination: Overcomes challenges of salt buildup and scaling limits that restrict conventional solar stills to shallow water depths.
- Siphon Mechanism: Uses a composite siphon made of fabric wick and grooved metal surface to ensure continuous water flow while preventing salt crystallization.
- Ultra-Narrow Air-Gap Design: Produces over six liters of drinking water per square meter per hour under sunlight — several times higher than standard systems.
- Heat Recycling: Stacked evaporator–condenser pairs recycle heat repeatedly, boosting productivity.
- Low-Cost and Sustainable: Built with materials like aluminum and fabric; powered entirely by solar energy or waste heat.
- Resilient to High Salinity: Can process water with salt concentrations up to 20%, making it effective for brine treatment.
- Applications: Suitable for off-grid villages, coastal communities, and disaster-hit regions where freshwater is scarce.