Current Affairs - International

India extended financial support to the Maldives by offering a $50 million Government Treasury Bill to help the island nation with its fiscal reforms and move toward greater economic stability. This gesture reflects the strong diplomatic and strategic relationship between the two countries. The Maldives is a vital maritime neighbour to India and plays a significant role in India’s ‘Neighbourhood First’ policy and its broader maritime initiative, Vision ‘MAHASAGAR’. The financial support is not only economic in nature but also underlines India’s commitment to strengthening ties with key regional partners.

In the 2025 Human Development Report (HDR) titled "A Matter of Choice: People and Possibilities in the Age of AI," India has been placed at the 130th position out of 193 countries and territories. This ranking reflects India's continued progress in human development despite persistent inequality challenges. The report provides insights into global trends in human development, the growing impact of AI on work and society, and increasing disparities between high- and low-ranking nations. India's position highlights both its advancements and the need for inclusive policy interventions to ensure sustained human development.

The International Monetary Fund (IMF) reviewed and approved financial assistance to Pakistan, including a $1 billion Extended Fund Facility and a $1.3 billion Resilience and Sustainability Facility. India abstained from the vote on this bailout package, raising concerns about the potential misuse of the funds and questioning the effectiveness of IMF-supported programs based on Pakistan’s history of implementation challenges. The decision underscores India's cautious stance on international financial aid to countries with inconsistent reform records, particularly in politically sensitive regions.

Bhutan recently signed a Memorandum of Understanding (MoU) with the Adani Group to jointly develop hydropower projects with a total capacity of 5,000 MW. This agreement marks a significant step in strengthening Bhutan-India energy cooperation and builds upon the earlier Wangchhu Project, in which Bhutan’s Druk Green Power Corporation holds a majority stake. The initiative aligns with Bhutan’s long-term Renewable Energy Roadmap, which aims for 20,000 MW capacity by 2040. The deal is also expected to boost Bhutan’s green energy exports to India, contributing to regional clean energy goals.

On May 8, 2025, India and Chile officially signed the Terms of Reference to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant upgrade from their existing Preferential Trade Agreement (PTA). This agreement aims to deepen bilateral economic ties by expanding into new areas such as digital services, MSME cooperation, critical minerals, and investment facilitation. The CEPA seeks to ensure sustainable and inclusive growth while enhancing access to strategic resources. By engaging with Chile—a key Latin American economy—India is strengthening South-South cooperation and diversifying its trade and investment relationships in a rapidly evolving global economic landscape.