UPSC Key: Bharat Maritime Insurance Pool, Delimitation and PMGSY-III extended

Key Points to Ponder:

— What is the Bharat Maritime Insurance Pool (BMIP)? 

— What are the objectives of BMIP?

— How have the West Asia conflict and the closure of the Strait of Hormuz impacted India? 

— How do regional conflicts and instability affect maritime trade? 

— What are Protection and Indemnity (P&I) risks in maritime trade? 

— What is the significance of domestic maritime risk covering pools?

— What maritime laws and conventions protect the international waters?

— What is the United Nations Convention on the Law of the Sea (UNCLOS)?

Key Takeaways:

— Briefing reporters after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said, “A big factor of insurance, which the world understood during the West Asia conflict, is that insurers and reinsurers were not ready to insure the ships going to West Asia… In view of this, a decision has been taken to create a sovereign guarantee fund of Rs 12,980 crore to facilitate maritime insurance. It will cover all maritime risks including hull, machinery, cargo, P&I and war. Vessels with the India flag will be covered under this.”

— An official statement issued after the Cabinet meeting stated: “The pool ensures that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice-versa, even when transiting volatile maritime corridors.”

— “With increased global volatility and geopolitical instability, maritime trade has been impacted with increased risk of losses for cargo and vessels resulting in increased insurance costs and uncertainty in continuous availability of insurance,” it stated.

— “Further, there is high dependence of Indian vessels on the International Group of Protection and Indemnity (IGP&I) Club for P&I insurance covering third-party liabilities like oil pollution liability, wreck removal, cargo damage, crew injury and repatriation, collision liabilities and so on. Accordingly, there was a need for a domestic maritime risk covering pool to maintain sovereignty and continuity of trade in face of withdrawal of coverage due to sanctions or due to geopolitical tensions,” it said.

— The “Government has approved formation of ‘Bharat Maritime Insurance Pool’ (BMI pool) for Indian flagged or controlled vessels or vessels destined to or starting from India, backed by a sovereign guarantee. The pool would cover all maritime risks like hull and machinery, cargo, P&I and war risk,” the statement said.

— “The policies will be issued by insurers that are Pool members, using the combined underwriting capacity of the Pool, which would be around Rs 950 crore. The Pool will help to manage liability insurance locally, tailored to Indian shipping conditions and regulatory requirements, develop specialized marine underwriting, claims management and legal expertise within India,” it said.

— “A Governing Body constituted for this pool would oversee the formation and functioning of the pool. The rationale for providing a sovereign guarantee to the proposed domestic insurance entity is rooted in the objectives of strengthening self-reliance, sanctions resilience and ensuring greater sovereign control,” the statement said.

Do You Know:

— UNCLOS is a comprehensive international law that lays down the broad frameworks for legitimate behaviour on, and use of, seas and oceans everywhere. It defines the rights and duties of nations regarding activities in the oceans and also addresses issues such as sovereignty, passage rights, and rights of exclusive economic usage. 

Other Important Articles Covering the same topic:

📍Insurers rush to cancel war risk covers amid halt in Hormuz ship transits

📍India calls for unimpeded, safe maritime transport 

UPSC Prelims Practice Question Covering similar theme:

(1) Consider the following statements with reference to the Bharat Maritime Insurance Pool (BMIP):

1. It is backed by a sovereign guarantee.

2. It covers only cargo-related risks in maritime trade.

3. It aims to reduce India’s dependence on foreign insurers and reinsurers.

4. It is applicable only to foreign-flagged vessels operating in Indian waters.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1, 2 and 3 only 

(c) 1 and 3 only

(d) 1, 3 and 4 only

Iran shuts Hormuz again, fires at two Indian carriers; Delhi summons envoy

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-I, II, III: Geography, Effect of policies and politics of developed and developing countries on India’s interests, Indian Economy and issues relating to planning, mobilisation of resources, growth, development.

What’s the ongoing story: Deepening the crisis over the Strait of Hormuz, Iran Saturday reversed its stand on reopening the key waterway and its navy fired on passing vessels, two of them India-flagged carriers, according to maritime tracking data. 

Key Points to Ponder:

— Read about the US-Iran war in detail.

— Know the history of the Iran-Israel relations.

— What is India’s Middle East policy?

— How is the West Asia war affecting India and shaping its policy?

— Why is the Strait of Hormuz strategically important for India? 

— What is the difference between “territorial waters” and “international waters”? 

— What diplomatic challenges India face in balancing its ties with Israel, the US and Iran?

— What are the international legal frameworks that govern maritime passage and maritime combat? 

— Map work: Locate Iran, Israel, Oman, the UAE, the Strait of Hormuz, Israel, the Suez Canal, nuclear facilities in Iran (Isfahan, Fordow, Haifa, Natanz, etc.) and other places in the news related to the US-Iran war on the map.

Key Takeaways:

— In New Delhi, the Ministry of External Affairs summoned the Iranian envoy to lodge a protest over the targeting of Indian vessels, and conveyed “deep concern”.

— “The Ambassador of the Islamic Republic of Iran in New Delhi was called in by the Ministry of External Affairs for a meeting with Foreign Secretary this evening. During the meeting, Foreign Secretary conveyed India’s deep concern at the shooting incident earlier today involving two Indian-flagged ships in the Strait of Hormuz. He noted the importance that India attached to the safety of merchant shipping and mariners and recalled that Iran had earlier facilitated the safe passage of several ships bound for India,” Randhir Jaiswal, spokesperson for the Ministry of External Affairs, said.

— “Reiterating his concern at this serious incident of firing on merchant ships, Foreign Secretary urged the Ambassador to convey India’s views to the authorities in Iran and resume at the earliest the process of facilitating India-bound ships across the Strait. The Ambassador of Iran undertook to convey these views to the Iranian authorities,” he said.

Strait of Hormuz. (Express Photo)

— With the naval arm of the Revolutionary Guards announcing the closure of the strait again – this was in retaliation over the US refusal to lift its blockade of the strait until Iran agreed to its terms a peace deal – there was confusion all around.

— A day earlier, Iran’s Foreign Minister Seyed Abbas Araghchi, citing the temporary truce between Israel and Tehran-backed Hezbollah, announced that the “passage of all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire”.

— A few vessels, including an Indian oil tanker Desh Garima, appeared to have successfully crossed the strait Saturday, the data shows. Shipping Corporation of India (SCI)-owned Desh Garima is the tenth India-flagged vessel to have crossed the strait since early March. 

— With its transit through the strait, there are now 14 India-flagged vessels in the Persian Gulf. At least four India-flagged vessels – oil tankers Sanmar Herald, Desh Vaibhav, and Desh Vibhor, and bulk carrier Jag Arnav – were among the ships attempting to cross the strait but appeared to have turned back after Iran said the chokepoint was closed again.  

— Scores of commercial vessels with thousands of seafarers have been stuck in the Persian Gulf since the West Asia war began on February 28 as vessel movements through the Strait of Hormuz ground to a halt after warnings from Iran; a few ships had also come under attack.

Do You Know:

— International maritime law falls under the purview of the United Nations Convention on the Law of the Sea (UNCLOS). The territorial sea (TS) as per UNCLOS, is an area extending up to 12 nautical miles from the base of a country’s coastline. A state has full sovereignty over the waters encompassed within the TS.

— According to the UNCLOS, the Exclusive Economic Zone (EEZ) of a country extends from the baseline of its coast to 200 nautical miles (about 370 km) into the sea. A nation has exclusive rights to living and non-living resources in the waters and on the seabed within its EEZ.

— UNCLOS does not contain explicit provisions regulating the conduct of belligerent parties during armed conflict, as its primary focus is on peacetime governance. The law of naval warfare operates in parallel with UNCLOS during conflicts. 

— Strait of Hormuz is a critical artery for global energy supply. The strait lies between Oman and Iran. It links the Persian Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 21 miles (33 km) wide at its narrowest point, with the shipping lane just two miles (three km) wide in either direction. 

— It is a key passage through which 20–25 per cent of global oil supply transits, as well as a critical corridor for LNG shipments from Qatar and the UAE. 

Other Important Articles Covering the same topic:

📍‘India-Iran ties strong’: Tehran representative after firing on Indian tankers in Strait of Hormuz

📍The legal framework that governs maritime conflict

📍Knowledge Nugget | International Maritime Laws: From UNCLOS, SOLAS to MARPOL and what they mean

📍Knowledge Nugget | US-Israel war on Iran: 10 must-know tidbits for UPSC Exam 

Previous year UPSC Prelims Questions Covering similar theme:

(2) With reference to the United Nations Convention on the Law of Sea, consider the following statements: (UPSC CSE 2022)

1. A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from baseline determined in accordance with the convention.

2. Ships of all states, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea.

3. The Exclusive Economic Zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea is measured.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

(3) What is the importance of developing Chabahar Port by India? (UPSC CSE 2017)

(a) India’s trade with African countries will increase enormously.

(b) India’s relations with oil-producing Arab countries will be strengthened.

(c) India will not depend on Pakistan for access to Afghanistan and Central Asia.

(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.

Previous year UPSC Mains Question Covering similar theme:

Discuss the strategic significance of the Indian Ocean for India’s security and economic interests. (UPSC CSE 2023)

POLITICS

Rural roads scheme extended, outlay increased by Rs 3,727cr

Syllabus:

Preliminary Examination: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies-II, III: Government policies and interventions, Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: The Centre on Saturday decided to extend the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) beyond March 2025 till 2028-29, with an increase in the outlay by Rs 3,727 crore to Rs 83,977 crore. A decision to this effect was taken during the meeting of the Union Cabinet, which was chaired by Prime Minister Narendra Modi.

Key Points to Ponder:

— Know about the Pradhan Mantri Gram Sadak Yojana (PMGSY) in detail. 

— What are the objectives of PMGSY-III?

— What is the importance of road infrastructure in development? 

— Why has the government extended PMGSY-III till 2028–29?

— How does PMGSY contribute to connectivity and economic development?

— What is the role of infrastructure development in reducing regional disparities?

— What are the challenges of road infrastructure in India? 

Key Takeaways:

— Briefing the media on Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said that the government has decided to extend the PMGSY-III till March 2028 for the completion of roads and bridges in plain areas and roads in hilly areas and extension of timeline till March 2029 for completion of bridges in hilly areas.

— As per an official statement, the outlay of the scheme has been revised to Rs 83,977 crore from the original outlay of Rs 80,250 crore.

The new approval also involves consolidation of through routes and major rural links connecting habitations to Gramin Agricultural Markets (GrAMs), higher secondary schools and hospitals. (File photo)

— The first phase of the PMGSY was launched on December 25, 2000, by the then NDA government headed by Prime Minister Atal Bihari Vajpayee. The second phase was launched in 2013.

— After these two phases, another component of the PMGSY—Road Connectivity Project for Left Wing Extremism Affected Areas (RCPLWEA)—was launched in 2016 for constructing rural roads in the LWE areas. The third phase was launched in 2019, with a sanctioned road length of 1,15,446 km.

— In September 2024, the Centre had approved the implementation of the PMGSY-IV during the financial year 2024-25 to 2028-29, with an outlay of Rs 70,125 crore.

Do You Know:

— Last year, the Union Ministry of Rural Development (MoRD) asked states to attach QR codes on all maintenance information display boards for roads built under the Prime Minister Gram Sadak Yojana.

— On September 11, 2024, the Central government approved PMGSY-IV to provide all-weather road connectivity to 25,000 unconnected habitations of population size 500+ in plains, 250+ in northeastern and hill states/UTs, special category areas (Tribal Schedule V, Aspirational Districts/Blocks, Desert areas) and 100+ in LWE-affected areas (notified by the Ministry of Home Affairs in nine states), as per Census 2011.

— Starting as a totally Centrally Sponsored Scheme, the funding pattern was modified from 2015-16 to 60:40 between the Centre and states (except for northeastern and Himalayan states). 

Other Important Articles Covering the same topic:

📍Why the Centre wants QR codes on roads built under PM Gram Sadak Yojana

Previous year UPSC Mains Question Covering similar theme:

“Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. (UPSC CSE 2021) 

PARLIAMENT

Why delimitation row is not over

Syllabus:

Preliminary Examination: Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues. 

Mains Examination: General Studies-II: Constitution of India —historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

What’s the ongoing story: The defeat of the Constitution (One Hundred And Thirty-First Amendment) Bill, 2026, in the Lok Sabha on Friday — and the consequent lapse of the accompanying Delimitation and Union Territory Bills — is not the end of the delimitation controversy. It has just been delayed by one year. The three Bills were brought in to advance the implementation of the women’s reservation law and operationalise it in an expanded House.

Key Points to Ponder:

— What were the main points of the Constitution (One Hundred and Thirty-First Amendment) Bill, 2026?

— What is delimitation? How is it related to the Census?

— How do Articles 82 and 170 shape the process of redrawing parliamentary and assembly constituencies?

— What is the constitutional amendment? What is the process of constitutional amendment in the constitution?

— What is the purpose of the delimitation commission?

— Who constitutes the Delimitation commission?

— What are the different types of amendment provided in Article 368?

— What is the Nari Shakti Vandan Act?

— What is the rationale for increasing the seats in the Parliament?

Key Takeaways:

— When delimitation was last frozen for 25 years by the Atal Bihari Vajpayee government in 2001, Article 81 was amended to extend the freeze on delimitation for 25 years to keep the inter-state distribution of seats at the 1971 Census levels.

— Article 81 (3) says, “In this article, the expression ‘population’ means the population as ascertained at the last preceding census of which the relevant figures have been published: Provided that the reference in this clause to the last preceding census of which the relevant figures have been published shall, until the relevant figures for the first census taken after the year 2026 have been published, be construed — (i) for the purposes of sub-clause (a) of clause (2) and the proviso to that clause, as a reference to the 1971 census; and (ii) for the purposes of sub-clause (b) of clause (2) as a reference to the 2001 census.”

— Clause 2 sub-clause (a) of Article 81 pertains to the distribution of Lok Sabha seats among states, and says, “There shall be allotted to each State a number of seats in the House of the People in such manner that the ratio between that number and the population of the State is, so far as practicable, the same for all States.” This was frozen at 1971 Census levels.

— Sub-clause (b) of Clause 2 of Article 81 pertains to delimitation of seats within states, and says, “Each State shall be divided into territorial constituencies in such manner that the ratio between the population of each constituency and the number of seats allotted to it is, so far as practicable, the same throughout the State.” This was frozen at 2001 levels.

— So, as per the present Article 81, unless the freeze on delimitation as per 1971 levels where distribution of seats between states is concerned is extended again by amending Article 81 before the data of the ongoing Census are released, the freeze will automatically lapse and the next delimitation will have to reflect the population figures of the ongoing Census, meaning that the share of the states will change drastically to the detriment of states such as Kerala and Tamil Nadu and the advantage of states such as UP, Bihar, Rajasthan, Gujarat and Maharashtra. 

— The reason: the constitutional principle enshrined in Article 81 is one person, one vote, one value. And the ratio of the populations of the above-mentioned states has changed drastically since 1971.

— Announcing the Census exercise, the press release of the Cabinet on December 12, 2025, said, “The Census of India would be conducted in two phases: (i) Houselisting and Housing Census – April to September, 2026 and (ii) Population Enumeration (PE) – February 2027 (For the UT of Ladakh and snow bound non-synchronous areas of UT of Jammu & Kashmir and states of Himachal Pradesh and Uttarakhand, PE shall be conducted in September, 2026).” The timeline shows that this will be the first Census after 2026 whose figures may be available in late 2027.

— Senior Supreme Court advocate Vikas Singh and former Lok Sabha Secretary General P D T Achary told The Indian Express that unless the freeze is extended, it will automatically lapse when the figures of the ongoing Census become available.

Do You Know:

— Delimitation is the process of fixing or redrawing the boundaries of territorial constituencies of elected bodies based on the population as determined by the most recent Census. The main objective of delimitation is to provide equal representation to equal segments of a population.

— There is a clear link between delimitation and census. As the Article 82 of the Constitution of India calls for re-adjustment of boundaries after each Census.

— “Upon the completion of each census, the allocation of seats in the House of the People to the States and the division of each State into territorial constituencies shall be readjusted by such authority and in such manner as Parliament may by law determine,” the provision states.

— Delimitation is carried out by an independent Delimitation Commission under the provisions of the Delimitation Commission Act. 

— The Delimitation Commission is appointed by the President of India and works in collaboration with the Election Commission of India. It is composed of the following: a retired Supreme Court judge, the Chief Election Commissioner of India and respective State Election Commissioners. The Constitution mandates that the Commission’s orders are final and cannot be questioned before any court as it would hold up an election indefinitely.

— Though the decadal Census has been conducted seven times since Independence (1951 to 2011), the delimitation exercise has been carried out only four times (in 1952, 1963, 1973, and 2002). The last delimitation, however, only readjusted the boundaries of constituencies based on population, and did not lead to an increase in the number of seats, which have remained constant since 1976. 

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | Census and Delimitation: 4 Key Questions You Must Know for Prelims and Mains

📍Explained: How government’s delimitation push will reshape states’ representation in Lok Sabha 

Previous year UPSC Prelims Questions Covering similar theme:

(4) How many Delimitation Commissions have been constituted by the Government of India till December 2023? (UPSC CSE 2024)

(a) One

(b) Two

(c) Three

(d) Four

 (5) With reference to the Delimitation Commission consider the following statements: (UPSC CSE 2012)

1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.

2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot effect any modification in the orders.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

(6) Consider the following statements: (UPSC CSE, 2013)

1. An amendment to the Constitution of India can be initiated by an introduction of a bill in the Lok Sabha only.

2. If such an amendment seeks to make changes in the federal character of the Constitution, the amendment also requires to be ratified by the legislature of all the States of India.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ECONOMY

Atomic energy body OKs nuclear power FDI policy, consultation next

Syllabus:

Preliminary Examination: Current events of national importance.

Mains Examination: General Studies-II, III: Government Policies and interventions, Infrastructure: Energy, Ports, Roads, Airports, Railways etc. 

What’s the ongoing story: The dilution of the liability clause under the proposed SHANTI Act is expected to boost Foreign Direct Investment (FDI) in India’s nuclear power sector as it opens up to private participation. 

Key Points to Ponder:

— The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act-know the key highlights and features. 

— What does achieving criticality in Fast Breeder Reactor (FBR) technology mean?

— What is the difference between PHWR, FBR, and LWR technologies?

— What is India’s three-stage nuclear power programme?

— What is the significance of private sector participation in India’s nuclear power programme?

— Why is the indigenisation of LWR important for India?

— What are the challenges associated with the commercialisation of nuclear energy? 

Key Takeaways:

— Speaking at a high-level workshop on the Act, Seema Jain, Member (Finance), Department of Atomic Energy (DAE), said the Atomic Energy Commission has approved an FDI policy, which has now been sent for inter-ministerial consultation.

— Jain said that achieving the target of 100 gigawatt (GW) of nuclear power capacity by 2047 would require investments of at least Rs 20 lakh crore, assuming a baseline cost of Rs 22 crore per megawatt (MW).

— As India has mastered Pressurised Heavy Water Reactor (PHWR) technology and achieved criticality in Fast Breeder Reactor (FBR) technology, Jain said the next challenge is the indigenisation of Light Water Reactor (LWR) technology, which dominates the global nuclear fleet.

— “….the next challenge for us would be to indigenize that (LWR) technology, not just the design part but also the fuel processing and the other associated elements, the components, the equipment and all of those things so that India emerges as a very, very reliable partner, not just domestically for the Indian industries but also for exporting this technology in the neighborhood,” Jain said.

— Delivering the keynote address, CEA Chairperson Ghanshyam Prasad said nuclear power remains the only viable alternative to coal for baseload generation, given its ability to provide stable and clean energy.However, he flagged concerns over higher tariffs for new nuclear power plants compared to older ones.

— He said the challenge is going to come from the new plants which are coming up as the tariff of these plants range somewhere around 5.50 to 6.50 paisa per unit. “We will have to take steps to reduce this tariff by way of some measures,” he added.

Do You Know:

— India’s nuclear energy programme has three stages. In the ongoing first stage, India is using the uranium fuelled Pressurized Heavy Water Reactor (PHWR). However, India has much less access to uranium than to thorium. Hence, the subsequent stages are designed to transition to using plutonium and thorium. 

— In the second stage, India will use plutonium-based mixed oxide as fuel for the Prototype Fast Breeder Reactor (PFBR). It will also utilise the spent fuel of Pressurised Heavy Water Reactors.

— In the third stage, it seeks to make use of thorium-based Advanced Heavy Water Reactors (AHWR), which utilise thorium to breed uranium. This stage is focused on attaining self-sufficiency. 

Other Important Articles Covering the same topic:

📍SHANTI Bill: How India is overhauling its nuclear power sector

Previous year UPSC Mains Question Covering similar theme:

With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (UPSC CSE 2018)

US extends sanctions waiver on Russian oil, India set to benefit

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Barely two days after US Treasury Secretary Scott Bessent said that the sanctions waiver for buying sanctioned Russian crude at sea won’t be renewed, Washington has now made a U-turn and extended the waiver by nearly a month 

Key Points to Ponder:

— Why did the US extend sanctions waiver on Russian oil?

— Know about the portfolio of India’s crude oil imports. 

— What is the status of India’s import of oil from Russia? 

— What is India’s dependence on the international market for crude oil? 

— What is the status of strategic petroleum reserves in India? 

Key Takeaways:

— This decision by Washington is expected to help India continue buying Russian crude in large quantities amid the squeeze on supplies from West Asia. According to industry experts, the decision to extend the waiver likely came after pressure from countries buying Russian crude to partly offset the loss of Gulf barrels. 

— There is some hope that the disruption in West Asian energy supplies might ease a bit in the coming days amid a fragile peace between the US and Iran and indications that vessel movements through the Strait of Hormuz could rise going forward. But even then, it would take weeks and possibly months for energy cargo movements through the maritime chokepoint to pick up significantly and on a sustained basis. 

— Moreover, the damage to energy infrastructure in the region due to the war could keep production and supplies capped for much longer. For major oil importers, the hunt for more non-West Asian barrels is expected to continue for the foreseeable future.

— Had the Russian oil waiver not been extended, some adjustments and downward pressure on India’s oil imports from Russia were likely, even as Moscow was still expected to remain New Delhi’s largest source of crude oil in the coming months, according to industry insiders and experts. 

— Without the waiver, Indian refiners wouldn’t have been able to take deliveries of Russian crude on sanctioned tankers or deal with Russian oil suppliers sanctioned by Washington, as that would have exposed them to the risk of attracting secondary sanctions from the US. India is the world’s third-largest consumer of crude oil and depends on imports to meet over 88% of its requirement.

— According to a General License issued by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, Russian oil and petroleum products loaded on tankers, including sanctioned vessels, on or before 12:01 eastern daylight time (9:31 am India time) on April 17 can be purchased and received by most countries till May 16. The earlier waiver—issued in March—had expired on April 11.

— The sanctions waiver for Russian crude was first issued specifically for India in the first week of March, and was later extended to all other countries. 

— With the sanctions waiver for Russian crude now extended, India—one of the top two destinations for Russian crude—is a clear beneficiary. The earlier waiver had facilitated a rapid ramp-up of import of Moscow’s oil by Indian refiners amid the major disruption in supplies from West Asia. Indian refiners were also able to secure some cargoes of Iranian oil, marking the first deliveries of Tehran’s crude to India in nearly seven years, although the volumes were insignificant when compared to imports of Russian crude. 

— Around 2.5–2.7 million barrels per day (bpd) of India’s crude imports—accounting for around half of the country’s total oil imports—have transited the Strait of Hormuz in recent months; the longer-term average is around 40%. Most of that supply is effectively offline due to the war.

— While government sources maintained that India didn’t require a waiver from the US for buying oil from Russia, industry experts said that the waiver indeed helped. That is because Indian refiners were now able to take deliveries of Russian oil even on tankers sanctioned or blocked by the US, and could deal directly with sanctioned Russian companies like Rosneft and Lukoil. Moreover, it temporarily removed any friction between Washington and New Delhi over the latter’s hefty purchases of Moscow’s crude.

Previous year UPSC Prelims Question Covering similar theme:

(7) The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of (UPSC CSE 2020)

(a) Crude oil

(b) Bullion

(c) Rare earth elements

(d) Uranium

Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.

🚨 Click Here to read the UPSC Essentials magazine for April 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨