1. Market vs. Welfare: The Supreme Court’s Flag on “Exploitative” Airfares
- Relevant Syllabus: GS Paper II: Judiciary; GS Paper III: Infrastructure (Aviation); Liberalization.
The Context: On January 22, 2026, the Supreme Court described the 300% surge in airfares during festivals (like Kumbh or Diwali) as “exploitation” and signaled a potential return to price regulation.
The Regulatory Tug-of-War: Since the 1994 deregulation, Indian aviation has thrived on a “Dynamic Pricing” model. This model allows airlines to offer cheap seats early to fill planes, while charging a premium to last-minute travelers.
The Judiciary’s Concern: The Court argues that in a country where rail connectivity is often overstretched, air travel has become an “Essential Service,” not a luxury. Predatory pricing during festivals or emergencies violates the “Right to Mobility” for the middle and lower-middle classes.
The Airline Perspective: Airlines argue that hard price caps will lead to financial ruin. With high fuel taxes (ATF) and dollar-denominated leases, peak-season profits are what sustain them through lean months. A “Cap” could lead to another “Jet Airways” or “GoFirst” style collapse, reducing competition and raising prices further.
The Balanced Solution: Instead of a hard cap, India needs a “Surge Ceiling”—a percentage-based limit on how much a fare can deviate from the average price of the last 365 days.
2. The India-UAE Strategic Defence Arc: A New Security Architecture for the Global South
- Relevant Syllabus: GS Paper II: India and its neighborhood; Bilateral and regional groupings.
The Context: The signing of a “Letter of Intent” for a Strategic Defence Partnership between India and the UAE on January 22, 2026, marks the end of the “Transactional Era” (Oil-for-Labour) and the beginning of a “Security Era.”
The Transformation: The UAE is no longer just a source of remittances; it is becoming a co-developer of Indian defense technology.
- Drone Co-production: The partnership focuses on autonomous systems and AI-led surveillance, utilizing the UAE’s capital and India’s software talent.
- The “Global South” Buffer: As the US and China polarize the world, the India-UAE axis offers a “Neutral Corridor.” This is evident in the joint efforts to secure the Red Sea from piracy without joining Western-led task forces.
Strategic Depth: For India, the UAE provides “strategic depth” in the Persian Gulf. For the UAE, India is a reliable defense supplier that doesn’t impose the political conditions often attached to Western weapons.
Future Outlook: The next phase will be Civil Nuclear Cooperation (SMRs). By linking India’s nuclear manufacturing with the UAE’s energy funding, the two can lead the “Green Hydrogen” revolution for the entire Middle East.
