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World Bank fails to reach agreement with Pakistan on Indus Waters dispute

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World Bank fails to reach agreement with Pakistan on Indus Waters dispute

kishangangaThe World Bank on Tuesday failed to reach a consensus with the Pakistani delegation on the future of the Indus Waters Treaty and the way forward and said that its role in the matter was limited and procedural.

The Indus Waters Treaty, inked in 1960 with World Bank mediation, governs the share of waters of six rivers between India and Pakistan. According to the pact, India controls Beas, Ravi and Sutlej while Pakistan holds reign over Indus, Chenab and Jhelum.

“The World Bank will continue to work with both countries to resolve the issues in an amicable manner and in line with the Treaty provisions,” a statement said.

On May 21, state-run Radio Pakistan had reported that Islamabad would approach the World Bank after Prime Minister Narendra Modi inaugurated the Kishanganga hydroelectric power station on May 19 during his visit to Jammu and Kashmir. Pakistan alleged that the construction of the dam violates the treaty, claiming that the project on a river flowing into Pakistan will disrupt water supplies.

A high-powered Pakistani delegation led by Attorney General Ashtar Ausaf Ali met with World Bank Chief Executive Officer Kristalina Georgieva and other senior officials on Monday and Tuesday.

During the meetings, held at Pakistan’s request to discuss issues regarding the Indus Waters Treaty and opportunities within the treaty to seek an amicable resolution, “several procedural options” for resolving the disagreement over the interpretation of the treaty’s provisions were discussed, the Bank said.

“While an agreement on the way forward was not reached at the conclusion of the meetings, the World Bank will continue to work with both countries to resolve the issues in an amicable manner and in line with the treaty provisions,” the Bank said in a statement at the end of the talks.

“The delegation of the Government of Pakistan also shared with the Bank their concerns about the recent inauguration of the Kishanganga hydroelectric plant,” the statement said.

The project, located at Bandipore in North Kashmir, envisages diversion of water of Kishan Ganga river to underground power house through a 23.25-km-long head race tunnel to generate 1713 million units per annum.

The Kishanganga project was started in 2007 but on May 17, 2010, Pakistan moved for international arbitration against India under the provisions of the Indus Waters Treaty.

The Hague-based International Court of Arbitration allowed India in 2013 to go ahead with construction of the project in North Kashmir and upheld India’s right under the bilateral Indus Waters Treaty to divert waters from the Kishanganga for power generation in Jammu and Kashmir.

The international court, however, decided that India shall release a minimum flow of nine cubic metres per second into the Kishanganga river (known as Neelam in Pakistan) at all times to maintain environmental flows.

Islamabad had been raising objections over the design of the 330 MW Kishanganga hydroelectric project, saying it is not in line with the criteria laid down under the Indus Waters Treaty between the two countries. But, India says the project design was well within parameters of the treaty.

In January 2017, Pakistan had asked India to suspend the ongoing construction of the Kishanganga and Ratle hydro-power projects. It asked the World Bank to set up a court of arbitration to mediate the dispute over the Indus Waters Treaty.

In August, the World Bank said India was allowed to construct hydroelectric power plants on the tributaries of the Jhelum and Chenab rivers under the treaty, but with certain restrictions.

India and Pakistan, however, disagree about which features of the hydroelectric power plants could violate the provisions of the treaty.

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US lawmakers move resolution to roll back Trump’s 50% tariffs on Indian imports

Three US lawmakers have moved a resolution to end Trump’s emergency declaration that imposed 50% tariffs on Indian goods, calling the move illegal and harmful to trade ties.

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Three members of the US House of Representatives have introduced a resolution seeking to end former President Donald Trump’s national emergency declaration that led to steep tariffs on imports from India. The lawmakers termed the duties illegal and warned that they have hurt American consumers, workers and long-standing India-US economic ties.

The resolution has been moved by Representatives Deborah Ross, Marc Veasey and Raja Krishnamoorthi. It aims to terminate the emergency powers used to impose import duties that cumulatively raised tariffs on several Indian-origin goods to 50 per cent.

What the resolution seeks to change

According to details shared by media, the proposal specifically seeks to rescind an additional 25 per cent “secondary” tariff imposed on August 27, 2025. This was levied over and above earlier reciprocal tariffs, taking the total duty to 50 per cent under the International Emergency Economic Powers Act.

The House move follows a separate bipartisan effort in the US Senate that targeted similar tariffs imposed on Brazil, signalling growing resistance in Congress to the use of emergency powers for trade actions.

Lawmakers flag impact on US economy and consumers

Congresswoman Deborah Ross highlighted the deep economic links between India and her home state of North Carolina, noting that Indian companies have invested over a billion dollars there, creating thousands of jobs in sectors such as technology and life sciences. She also pointed out that manufacturers from the state export hundreds of millions of dollars’ worth of goods to India each year.

Congressman Marc Veasey said the tariffs amount to a tax on American households already facing high costs, stressing that India remains an important cultural, economic and strategic partner for the United States.

Indian-American Congressman Raja Krishnamoorthi described the duties as counterproductive, saying they disrupt supply chains, harm American workers and push up prices for consumers. He added that rolling back the tariffs would help strengthen economic and security cooperation between the two countries.

Background of the tariff hike

Earlier in August 2025, the Trump administration imposed a 25 per cent tariff on Indian goods, which came into effect from August 1. This was followed days later by another 25 per cent increase, citing India’s continued purchase of Russian oil. The combined duties were justified by the administration as a measure linked to Moscow’s war efforts in Ukraine.

Wider push against unilateral trade actions

The latest resolution is part of a broader push by congressional Democrats to challenge unilateral trade measures and reassert Congress’ constitutional authority over trade policy. In October, the same lawmakers, along with several other members of Congress, had urged the President to reverse the tariff decisions and work towards repairing strained bilateral relations with India.

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Mexico imposes 50% tariff on Indian imports, auto exports maybe hit

Mexico’s approval of 50% import duties on select goods from India and other Asian countries threatens nearly $1 billion worth of Indian exports, especially in the automobile sector.

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Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

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Luthra brothers detained in Thailand after Goa nightclub fire tragedy

Delhi restaurateurs Saurabh and Gaurav Luthra, accused in the Goa nightclub fire that killed 25 people, have been detained in Thailand as India moves to secure their deportation.

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Delhi-based restaurateurs Saurabh and Gaurav Luthra, wanted in connection with the Goa nightclub fire that claimed 25 lives, have been detained in Thailand. Images circulating online show the brothers with their hands tied, holding their passports, as they stand beside Thai police officials.

Brothers held in Phuket as India seeks deportation

The Luthra brothers, who run the Romeo Lane chain across multiple cities and countries, left for Phuket just hours after a massive blaze gutted their ‘Birch by Romeo Lane’ nightclub in north Goa’s Arpora. They are facing charges including culpable homicide not amounting to murder and negligence. Indian agencies are now preparing to push for their deportation so they can be tried in Goa.

Deadly fire triggered by flammable decor and safety lapses

The late-night blaze erupted during a musical event attended by around 100 people, most of them tourists. The use of electric firecrackers during a performance is suspected to have triggered the fire. The venue’s heavy use of flammable décor and absence of functional fire extinguishers or alarms turned it into a death trap.

A narrow access road further delayed fire engines, forcing responders to park nearly 400 metres away, significantly hindering rescue operations. By the time the blaze was doused, 25 people — including five tourists and 20 staff members — had died, most due to toxic smoke inhalation in the basement.

Police pursuit and legal battle

Following the incident, four staff members were arrested and a search began for the Luthras. Investigators from Goa and Delhi discovered the brothers had booked their tickets soon after the fire and left the country within hours. Their business partner, Ajay Gupta, has already been arrested in Delhi.

The brothers have moved a Delhi court seeking anticipatory bail, arguing they were licensees, not owners, of the building. They claimed they were not present at the nightclub when the fire occurred and said their travel to Thailand was for a business meeting, not to evade investigation. Their plea seeks four weeks of protection from arrest upon their return to India.

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