FOREIGN RELATION

India has been taking an increasingly pragmatic stance in the conduct of its foreign affairs in recent times.
This shows a gradual shift from conventional foreign policy that india had adopted.
What is foreign policy:

 Foreign policy refers to the general guidelines that a country follows in establishing and
conducting relations with other countries. It brings in predictability in foreign relations and builds
trust between two nations.
Determinants of India’s Foreign Policy:
1)Geographic location:

 India is located between Middle-east, South-East Asia and far East.

 It is present close to one of the busiest trade routes in the world.
 It shares most of its land boundaries with hostile neighbours.
 The increasing presence of China in the Indian Ocean is a source of major concern.
2)Population

 India has a huge population who need to be provided with basic amenities and employment
opportunities.
 India also ensure the well being of its Non Resident Indians abroad.
3)Economic Concerns

 India is in dire need of foreign investments. Over the years it has liberalised its economy to
incentivise foreign investments.
4)Political

 India aims to become a major global player in the future.

 It has been trying to join the UNSC as a permanent member.
5)Security and Defence

 Terrorism from hostile neighbours has been a major concern.

 Home grown terrorists use neighbouring countries as a hide out.
 India has signed land boundary agreements to strengthen border defence .
6)Ideology

 Since ancient times India’s Foreign Policy has been guided by values like peace and non
violence.
 This was the basis for India’s Non Aligned Movement.
India’s Foreign Policy – dynamics

 India’s foreign policy since ancient times have had elements of both continuity and change. The
elements of continuity include quest for securing peace in the neighbourhood, increasing trade,
attracting foreign investments, playing a major role in the global arena.
 As per foreign policy analysts, presently India’s foreign policy has become more pragmatic.
Rise of Realpolitik in India’s Foreign Policy in recent times:
1)What is Realpolitik:
  In Realpolitiks, Foreign policy is conducted on the basis of practical and material concerns rather than
ideological or ethical principles.
2)Changing dynamics of Foreign Policy  to realpolitik
   1.Indian foreign policy for centuries has been guided by  civilizational values like non violence,
tolerance, Sarva Dharma Sambhava etc which prompted India to take a leadership role in the Non
Aligned Movement ( NAM).
   2.Later the Gujral doctrine talked about non-reciprocal accommodation of India’s neighbours and stated
that India must help its neighbours without expecting anything in return.

3. According to foreign policy experts like Happymon Jacob, Harsh V Pant, Kanti Bajpai, etc under
the present regime India is showing more Realpolitik viz
1.Multi alignment rather than Non- alignment
2.Increasing cooperation with USA,
3.Dehyphenation of Israel-Palestine etc.
4.Focus on BIMSTEC rather than SAARC
5.Look East to Act East policy
6.Wooing foreign investments
7.Neighbourhood first policy etc
8.Offensive -defensive strategy against Pakistan
4.However Kanti Bajpai, a political analyst has observed that the present government has been following
a “cooperation-defection” cycle. The government cooperates with other countries but on its own terms
and defects when it is not able to do so
3)Instances where Realpolitiks dominated concerns:

1. India’s stance against the Rohingya refugees reflects a shift from its traditional stance of
welcoming refugees though India is not a party to UN convention on refugees
2. India is taking a dehyphenation stance on Israel and Palestine. That means India’s relationship
with Israel would stand on its own merit and will be independent from her relationship with
Palestine. PM Modi also became the first Indian PM to visit Israel
3. India’s offensive defensive strategy against Pakistan was visible when it conducted a surgical
strike which was a departure from the past.
4. In the recent past,India is not showing importance to Non Aligned Movement ( NAM) and even
Indian PM skipped a meeting of NAM.

1. Simultaneously growing India-US ties is evident in the defence relationship between the two
countries.
2. India began pursuing the neighbourhood first policy with increased vigour in 2014. But it has hit a
roadblock. India is now selectively engaging with these countries with one big agenda-countering
the presence of China
3. SAARC has hit a roadblock with the recent summit being cancelled after Pakistan’s aggression
towards India. India has now shifted its focus to sub regional groupings like BIMSTEC
4. India also showed diplomatic maturity during the Doklam standoff and prevented it from
escalating into a full scale war
5. PM Modi himself is leading the high level political visits across the world. Political considerations
took a backstage while economic considerations were given priority.
4)Consequences of increasing reliance on Realpolitik:

1. India would no longer be considered as a “soft state”.(Soft state is a concept given by Gunnar
Myrdal which says that the State is unable to implement its policies.)
2. Concerns of a two – front war from China Pakistan alliances

1. Though India is successful in the diplomatic isolation of Pakistan in the international arena, it is
pushing Pakistan to forge new alliances with countries like Russia
2. India would be projected as a country which can take initiative thus helping its case for a
permanent seat at UNSC.
3. Increasing closeness with countries like USA and Israel is pushing our traditional allies like
Russia to realign its relationship with China and Pakistan.
Criticism of rise of Realpolitiks in India’s Foreign Policy
 1. India’s focus on hard power(military power) for foreign policy outcomes sidelines our rich soft
power(ideological power, goodwill) attributes.
2. The concerns among the small neighbouring countries like Nepal against India’s ‘big brother’
attitude
3. Even though countries like China have the military might to use hard power, there is an increased
focus on soft power. The BRI is an important part of China’s Soft power. It seeks to make the
countries economically dependant on it.
4. Basing a foreign policy on immediate practical concerns is not advisable in a dynamic global
scenario.
5. It would reduce the element of trust in bilateral ties.For example, USA’s reversal of many of the
commitment’s given by the previous government has reduced the trust on US.
Way forward:

1. For India to become a global power, it must first become a regional power.
2. Domestic capacity has to be built in order to sustain India’s global ambitions.
3. Sustained economic growth is very important to become a major player in the world
4. The government must pursue Neighbourhood First policy with the same thrust as before.
5. In the changing geopolitical order India must build a strong foundation based on both India’s
civilizational values as well as new considerations.

INDO-RUSSIA RELATION
India’s Concerns With Russia 
Once “special and privileged strategic partnership” – present tilt towards China which has border disputes with India
& close ties with Pakistan. Russia is also growing relations with Pakistan as it held its its first ever military exercises
with Pakistan
 Divergences between New Delhi and Moscow on terrorism emanating from Pakistan and Afghanistan
 Russia did not back India’s demand to name two Pakistan-based terror groups as perpetrators of terrorism
against India last year at the Goa BRICS summit
 Russia favouring a role for the rebel Taliban in a future Afghanistan
On the other hand, Russia has been concerned at the rapidly warming ties between India and the US including the
recent signing of a military logistics agreement.
 

Importance of India for Russia 

 A market for its goods to bypass Western sanctions imposed after its power push in Ukraine.
 India is a natural partner for Russia & have been tried & tested in tough situation like Ukraine Crisis
 India still remains the biggest importer of defence equipment from Russia
 India is still a vast market for Russian energy resources & hydrocarbons
 Despite its renewed friendship with China, Russia will soon find itself in competition with it as Beijing
regards itself as the new G2 along with the US. India can help provide the multi-polarity that Russia fiercely
seeks
Importance of Russia for India
 It can meet its abundant energy requirements at a cost-effective price
 India still needs to collaborate with Russia to master future technology in defence & space
 India needs support of Russia to pursue nanotechnology on grand scale; an expertise of Russia worldwide
 It improves India’s bargaining power when it negotiates arms sales with the West
 Geopolitically, Russia continues to be a balancing force against China & Pakistan in our region.
 Russia can be a major market for Indian industry such as pharmaceuticals, manufactured goods, dairy
products, bovine meat and frozen seafood
 Joint projects on exploration and exploitation of hydrocarbons in the Arctic shelf of Russia
 Support for India’s bid for permanent membership in UNSCl and NSG
Russia- Pakistan Relations
Pakistan after independence joined western military block by signing SEATO & CENTO, thus making Pakistan and
Russia Cold War rivals. However, only recently in 2014 Russia lifted its self-imposed arms embargo on Pakistan
and signed a landmark military cooperation agreement.

 Both the countries share a common threat i.e. Islamic State of Iraq and Levant
 Increased coordination on combating Narcotic Trade
 Handing over of Chechen Terrorist by Pakistan to Russia
 Pakistan has offered Russia to use the new Gwadar port.
 Russia which currently faces several sanctions after its aggression in Ukraine, is set to find new market for
its defence equipment in Pakistan
 Russia understands Pakistan’s crucial role in establishing resolving civil war in Afghanistan through
dialogue with Taliban
 

Russia’s change in stance is evident of its re-energised role in Afghanistan. It can be seen as a positive step towards
establishing peace in the neighbourhood. However, India should explore other sector of cooperation with Russia
such as pharmaceuticals, agriculture, food processing etc. to improve its trade prospects. The General Framework
Agreement for Kundankulam is still pending, India should move fast to safeguard its energy needs. Changing Geo-
Political situation across Asia makes it important for India to balance its ties between US and Russia well, to
maintain its leadership role in South-Asia.

India and Russia are celebrating 70 years of establishment of diplomatic relations between them.
 
Background:
 India-Russia cooperation is based on the solid foundations of
 1971 Treaty of Peace, Friendship and Cooperation between the Republic of India and the USSR,
 1993 Treaty of Friendship and Cooperation between the Republic of India and the Russian
Federation,
 2000 Declaration on Strategic Partnership between the Republic of India and the Russian
Federation and
 2010 Joint Statement elevating the Partnership to a Special and Privileged Strategic Partnership.
 Cooperation between India and Russia spans across the whole gamut of sectors and rests on the
fundamental pillars of political and strategic cooperation, military and security cooperation, cooperation in
the spheres of economy, energy, industry, science and technology, and cultural and humanitarian cooperation.
 
 
Delhi Annual Bilateral Summit 2018:
Both sides reaffirmed their commitment to the Special and Privileged Strategic Partnership between India and
Russia.
 Economic Aspect:
 Goal to increase two-way investment to USD 30 billion by the year 2025
 In 2017 bilateral trade increased by more than 20%
 Focus on International North-South Transport Corridor (INSTC)
 Technology Aspect:
 Synergy in outer space missions; Synergy in IRNSS and GLONASS
 Cooperation in Arctic
 Energy Aspect:
 Long-term LNG supply contract between Gazrpom Group and GAIL India Ltd.
 Civil nuclear cooperation between India and Russia is an important component of
strategic partnership contributing to India’s energy-security
 Defence Aspect:
 India participated in Army Games 2018, Army 2018 and Moscow Conference on
International Security.
 India and Russia commended the successful completion of the first ever Tri-Services
Exercise INDRA 2017 and committed to continue their Joint Military Exercises – INDRA
Navy, INDRA Army and Avia INDRA – in 2018.
 Conclusion of the contract for the supply of the S-400 Long Range Surface to Air Missile
System to India.
 
Existing Collaborations:
 Pakistan-Russia gas pipeline.
 Fifth Generation fighter jet
 S400 missile system
 Naval coproduction
 Helicopter
 Russia will help India in setting up 25 integrated infrastructure Agro irradiation centre
 Roseneft led consortium buys India’s Essar oil; Biggest foreign investment by Russia
 
Agreements signed in India-Russia annual summit 2017:
 Agreement on cooperation in International Information Security.
 MoU for expansion of bilateral trade and economic cooperation.
 Shareholder agreement for establishing a Joint Venture to manufacture Ka-226T helicopter in
India.
 MoU for developing smart cities in Andhra Pradesh and Haryana and for developing transport
logistics systems for such cities.
 MoU between Gazprom and Engineers India Limited (EIL) for the joint study of a gas pipeline to
India from Russia and other areas of cooperation.
 Cooperation Agreement between Rosneft Oil Company and ONGC Videsh Limited (OVL) in the
area of Education and Training.
 MoU for setting up an investment fund of $1 billion by the National Investment and
Infrastructure Fund (NIIF) and the Russian Direct Investment Fund (RDIF).
 MoU for Cooperation between Russian and Indian Railways in increasing the speed of trains
between Nagpur- Hyderabad/ Secundrabad.
 MoU between ROSCOSMOS and ISRO on Mutual Allocation of Ground Measurement Gathering
Stations for NAvIC and GLONASS.
 Inter-governmental agreements (IGAs) for the procurement of S-400 Air Defence System and
construction of 1135.6 series of frigates.
 MoU between India’s Department of Science and Technology and Russia’s Federal Agency for
Scientific Organisations
  
Defence Relations:
 India’s latest cooperation with Russia was a bit uneven due to delay and steep rise in price of
Admiral Gorshkov, and due to problems with Russian spare parts. But now, the Russian military-
industrial complex is in a better shape and can work with India effectively.
 Russia has shared sensitive technology for India’s nuclear submarine Arihant and deserve the title
for “tested and tried partner”
 Recent S-400 deal further deepens India-Russia defence relation
 
India-Russia collaboration in S&T:
 Both countries are celebrating 10 years of partnership in S&T.
 Joint cooperation in science and technology was one of the important pillars of the bilateral
relationship between both the countries. 
 Discussions were held to enhance their cooperation in the fields of big data and cyber physical
systems.
 It was also agreed to work for start-up companies and entrepreneurs in order to establish Indo-
Russian Bridge for Innovation.
India-Russia Relations
 Introduction

Relations with Russia are a key pillar of India’s foreign policy, and Russia has been a longstanding time-
tested partner of India.  Both countries signed “Declaration on the India-Russia Strategic Partnership” in
October 2000

Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics,
defence, civil nuclear energy, anti-terrorism co-operation and space.

Historical Background

 A cordial relationship with India that began in the 1950s represented the most successful of the
Soviet attempts to foster closer relations with Third World countries. The relationship began with a visit by
Indian Prime Minister Jawaharlal Nehru to the Soviet Union in June 1955 and Khrushchev’s return trip to
India in the fall of 1955. While in India, Khrushchev announced that the Soviet Union supported Indian
sovereignty over the disputed territory of the Kashmir region and over Portuguese coastal enclaves such
as Goa.
 The Soviet Union’s strong relations with India had a negative impact upon both Soviet relations
with the People’s Republic of China, including Indian relations with the PRC, during the Khrushchev
period.
 The Soviet Union declared its neutrality during the 1959 border dispute and the Sino-Indian
war of October 1962, although the Chinese strongly objected.
 The Soviet Union gave India substantial economic and military assistance during the Khrushchev
period, and by 1960 India had received more Soviet assistance than China had. This disparity became
another point of contention in Sino-Soviet relations. In 1962 the Soviet Union agreed to transfer
technology to co-produce the Mikoyan-Gurevich MiG-21 jet fighter in India, which the Soviet Union had
earlier denied to China.
 In 1965 the Soviet Union served successfully as peace broker between India and Pakistan after
an Indian-Pakistani border war. The Soviet Chairman of the Council of Ministers, literally Premier of the
Soviet Union, Alexei Kosygin, met with representatives of India and Pakistan and helped them negotiate
an end to the military conflict over Kashmir.
 In 1971 the former East Pakistan region initiated an effort to secede from its political union
with West Pakistan. India supported the secession and, as a guarantee against possible Chinese
entrance into the conflict on the side of West Pakistan, it signed with the Soviet Union the Indo-Soviet
Treaty of Friendship and Cooperation in August 1971. In December, India entered the conflict and
ensured the victory of the secessionists and the establishment of the new state of Bangladesh.
 Relations between the Soviet Union and India did not suffer much during the rightist Janata
Party‘s coalition government in the late 1970s, although India did move to establish better economic and
military relations with Western countries. To counter these efforts by India to diversify its relations, the
Soviet Union proffered additional weaponry and economic assistance.
 During the 1980s, despite the 1984 assassination by Sikh separatists of Prime Minister Indira
Gandhi, the mainstay of cordial Indian-Soviet relations, India maintained a close relationship with the
Soviet Union. Indicating the high priority of relations with the Soviet Union in Indian foreign policy, the new
Indian prime minister, Rajiv Gandhi, visited the Soviet Union on his first state visit abroad in May 1985
and signed two long-term economic agreements with the Soviet Union. In turn, Gorbachev’s first visit to a
Third World state was his meeting with Prime Minister Rajiv Gandhi in New Delhi in late 1986. 
 Mikhail Gorbachev unsuccessfully urged Gandhi to help the Soviet Union set up an Asian
collective security system. Gorbachev’s advocacy of this proposal, which had also been made by Leonid
Brezhnev, was an indication of continuing Soviet interest in using close relations with India as a means of
containing China. With the improvement of Sino-Soviet relations in the late 1980s, containing China had
less of a priority, but close relations with India remained important as an example of Gorbachev’s new
Third World policy.

Russia needs India as:

 A market for its goods to bypass Western sanctions imposed after its power push in Ukraine.
 The forthcoming Transatlantic Trade and Investment partnership driven by the US will also force
Russia to eye markets beyond Europe. India is a natural partner.
 Despite its renewed friendship with China, Russia will soon find itself in competition with it as
Beijing regards itself as the new G2 along with the US.
 India can help provide the multi-polarity that Russia fiercely seeks.

India needs Russia because

 It can meet its abundant energy requirements at a cost-effective price.

 Despite expanding its defence purchases from the US, Israel and Europe, India still needs to
collaborate with Russia to master future technology including for space.
 It improves India’s bargaining power when it negotiates arms sales with the West.
 Russia can be a major market for Indian industry such as pharmaceuticals, manufactured goods,
dairy
 Products, bovine meat and frozen seafood.
 Geopolitically, Russia continues to be a balancing force against any designs China and Pakistan
may have in our region.

Strain in the relationship  

 The first concerns the rapidly expanding ties between India and USA, which started with the India
US nuclear deal in 2008.  
 The second concerns the growing defence relationship between India and USA.
 Russia’s decision to supply Pakistan with the Mi-35 Hind attack helicopters has alarmed the
Indian defense establishment.  The Russia-Pakistan joint exercises raise many questions
 India having its own military exercises with the U.S. and has signed logistics agreements which
can eventually give the U.S. access to Indian naval bases.
 Russia had proposed a Russia-India-China (RIC) forum. India is hesitant about this because of
the∙ unresolved issues with China.

Economic ties

 Russia-India trade has not grown to great heights despite the encouragement of both states.
 Recently India and Russia decided to institutionalize the CEO’s Forum and agreed to liberalize
business travel which will help boost bilateral trade  Russia sees India – one of the fastest growing
economies in the world – as a country that could alleviate Russia’s economic problems.  
 Make in India initiative would welcome Russian companies from the public and private sectors
Russian firms have shown a willingness to invest in India in construction, major infrastructure projects
such as dedicated freight corridors and industrial clusters, smart cities, and engineering services, sharing
technologies and skills.
 Indian companies are exploring major investment options in Russia, especially in natural
resources∙ such as coal, fertilizers, hydrocarbons, minerals, and rare earth metals Trade and investment
relations are not up to the mark and this needs improvements.

Energy ties

According to the International Energy Agency, India will cross Japan as the world’s third largest oil user
this year, and is expected to have the highest rate of growth of crude demand globally through 2040.

The sale of a 98% stake in Essar Oil to a consortium led by Russian state-owned oil giant Rosneft is
significant step in the process of deleveraging the balance sheets of Indian corporate.  

The Russia-India investments in the oil and gas sector and exports to third countries need to be
energised.  Russia is an important partner in peaceful uses of nuclear energy and it recognizes India as a
country with advanced nuclear technology with an impeccable non-proliferation record.
Kudankulam Nuclear Power Plant (KKNPP) is being built in India with Russian cooperation.
Political ties

 New Delhi needs Moscow’s support in the former’s bid for a permanent seat on the UN Security
Council
 The Russians have backed the Indian position on Kashmir.
  India and Russia are engaged in several multilateral efforts that are greatly favoured by Russia
such as the BRICS and the Shanghai Cooperation Organisation.  
 Annual Summit meeting is the highest institutionalized dialogue mechanism under the Strategic
Partnership
Defence ties

 India has longstanding and wide-ranging cooperation with Russia in the field of defence.  India-
Russia military technical cooperation has evolved from a simple buyer-seller framework to one involving
joint research, development and production of advanced defence technologies and systems.
 BrahMos Missile System, Joint development of the Fifth-Generation Fighter Aircraft and the Multi
Transport Aircraft, as well as the licensed production in India of SU-30 aircraft and T-90 tanks, are 3
examples of such flagship cooperation.
 Last year in June, the Prime Minister dedicated to the nation the Russian-built aircraft carrier  INS
Vikramaditya at a special ceremony off the coast of Goa.∙  
 The two countries also hold exchanges and training exercises between their armed forces
annually.
 An Indian contingent participated in the military parade in Moscow on 9 May 2015 during the 70th
anniversary of the victory in the World War II.  India-Russia defence ties reached a new high recently,
when the countries unveiled a big- ticket joint.
Production project  

 The announcement of joint production of helicopters in India dispelled fears that the bilateral
defence relations are in a quagmire.  The timing of the announcement particularly after the visit of Indian
Prime Minister Narendra Modi to Russia, and his meeting with Russian President, Vladimir Putin, is no
less significant.  
 Modi has already declared that Russia is the primary defence supplier of India, and, in this
context, it will not be a surprise if more defence deals are announced in coming months.  
 Indian Ambassador to Russia displayed substantiated optimism when he averred that the recent
deal about joint production of 200 Kamov-226 helicopters is no less than a big bang.  A regular watcher of
India-Russia relations would find it difficult to disagree with the ambassador.
 The recent announcement dispelled much of pessimism generated by the Rafale deal.  Also,
particularly after the agreement on the BrahMos missile about a decade ago, not much progress has
been made about joint development and production.  
 The announcement of joint production of the light transport vehicle, which can be used for rescue,
police and military operations, would be another landmark after BrahMos.  Any other pair of countries
seldom enjoys this type of relationship. The likely transfer of technology in building the helicopter will be
advantageous for India.
Significance for India:  

 India’s indigenous defence industry is at an infant stage, and Russia’s transfer of technology
would boost the indigenous industry.  The transfer coupled with a possible license would boost India’s
production capability.
 It will also enable India, along with Russia, to market the helicopter in third countries for profit.
During the visit of Putin last December, both countries had deliberated on the Kamov-226 deal.
 The deal will be India’s first such defence deal after Prime Minister Modi’s hyped ‘Make in India’
initiative was announced last year.  In the area of defence, India can hardly afford to ignore Russia, a
strong and reliable partner.
 A strong India-Russia defence partnership is not only desirable but also necessary.
 
Nuclear Cooperation

 Russia is an important partner in peaceful uses of nuclear energy and it recognizes India as a
country with advanced nuclear technology with an impeccable non-proliferation record.
 In December 2014, Department of Atomic Energy (DAE) and Russia’s Rosatom signed the
Strategic Vision for strengthening cooperation in peaceful uses of atomic energy between India and
Russia.  Russia has proposed a plan to involve India in building Russian-designed nuclear power stations
in third countries.
 The cooperation is to be extended to the area of joint extraction of natural uranium and the
production of nuclear fuel and atomic waste elimination. Russia has also offered to build over 20 nuclear
power units in India, up from the 12 offered earlier.  
 The Russian proposal to jointly build nuclear power plants is significant, considering that
Rosatom-the State-owned Russian nuclear utility-has 29 nuclear reactors in various stages of planning
and construction in more than a dozen countries (the largest internationally).
 These include in Jordan, Hungary, Egypt, Iran, Finland, Turkey and Argentina.  
 The new proposals, offered by the Russians as a plank to build on their head-start in the Indian
nuclear market, are expected to lay the foundation for what is being termed by Moscow as “long-term,
mutually beneficial cooperation in the nuclear sector.  
 The Russian proposal builds on a package of inter-governmental and inter-departmental
documents signed on the sidelines of President Vladimir Putin’s visit to India late last year, as part of a
‘strategic vision for strengthening Indian-Russian cooperation in the peaceful use of nuclear power’.  
 The nuclear cooperation includes building on negotiations to sign an advance contract for the
design of the third and fourth reactor units to come up at the Kudankulam site in Tamil Nadu.  
 Russia, in accordance with an inter-governmental agreement of 1988 and a supplement to it
signed in 1998, is building the Kudankulam nuclear power project, the first 1,000 MWe (megawatt electric)
unit of which was connected to the national grid in 2013.
 It is now operating under the one-year warranty maintenance period, which will last until the end
of 2015.
Space Cooperation  
 India-Russia cooperation in the field of peaceful uses of outer space dates back to about four
decades.This year marks the 40th anniversary of the launch of India’s first satellite “Aryabhatt” on a
Russian (then∙ USSR) launch vehicle ‘Soyuz.’  
 In 2007, India and Russia signed a framework agreement on cooperation in the peaceful uses of
outer space, including satellite launches, Glonass navigation, remote sensing and other societal
applications of outer space.  In June 2015, the space agencies have signed a MoU on expansion of
cooperation in the field of the exploration and use of outer space for peaceful purposes.
Issues of terrorism  

 Counterterrorism is another area where both countries find a convergence of interest. Both
countries strongly condemned terrorism in all its forms, stressing the need for an effective∙ global effort in
dealing with the terrorist menace.  
 They also called for the elimination, once and for all, of all terrorist “safe havens,” presumably
referring to Pakistan.  India and Russia also share concerns about the aggravation of the security
situation in Afghanistan, including along its borders.  India openly shared Russia’s concerns over
developments in Syria.
 India’s stance on Syria will certainly help cement its ties with Russia countering the earlier feeling
that India was not coming forward to support Russia in difficult times.
Cultural Cooperation  
There is a strong tradition of Indian studies in Russia. Apart from Hindi, languages such as Tamil,
Marathi, Gujarati, Bengali, Urdu, Sanskrit and Pali are taught in Russian Institutions.  
There is general interest among Russian people in Indian dance, music, yoga and ayurveda.  There are
regular cultural initiatives to promote people-to-people contacts between India and Russia  The President
of India inaugurated the Year of Indian Culture ‘Namaste Russia’ in Moscow on 10 May 2015.
 17th India-Russia annual summit  

 Altogether 16 Agreements / MoUs are signed and more emphasis is on defence procurement.
 India and Russia also signed an Inter-Governmental Agreement for 4 additional Krivak or Talwar
Class Stealth Frigates.  Hindustan Aeronautics Limited (HAL) and Rostec State Corporation signed a
Pact worth $ 1 bn to set up a Joint Venture that will make at least 200 Kamov-226T Utility Helicopters in
India.  
 Signed an agreement on “Information Security” aimed at countering terrorism, drug trafficking
and∙ other illegal cross border activities.  
 A Science and Technology Commission to facilitate development and sharing of cutting-edge
technologies.  
 Both the Leaders dedicated to the Nation, 2nd Unit of the Kudankulam Atomic Power Plant. They
also laid the foundation stone for two more Units at Kudankulam Nuclear Power Plant.  
 Russian Direct Investment Fund (RDIF) will work with an Indian fund to invest $ 1 bn.
Tri-lateral relation between Russia-China-Pakistan and its impact on India

 Russia’s growing affinity with Pakistan is bound to give rise to some ruffles between India and
Russia. The rivalry between Pakistan and India only gets worse as the latter accuses the former of
breaching international border norms.  
 Pakistan’s relationship with Moscow deteriorated during 1980s, when the former allied with the
West to fight the Soviet in Afghanistan.
 The reason of their rivalry has yet again brought the two countries together, binding them with
defence agreements.  
 The reason of their rivalry (Afghanistan) has yet again brought the two countries together, binding
them with defence agreements.
 In June 2014, Russia announced the lifting of its long-standing embargo on arms sales to
Pakistan.
 In November, Russia and Pakistan signed their first ever military cooperation agreement. The
Russians argue that if India can buy defence equipment from the U.S., why they (Russia) couldn’t sell to
Pakistan. The problem for India, of course, is the strategic import of such moves by Russia.
 Then again, we must realise that our growing proximity to the U.S. reduces our leverage over
Russia. As does Russia’s increasing tilt towards China. As always, a bit of history can be useful.  Russia
leaning towards China to combat the pressure of the West might bring about certain changes in the power
pattern in the South Asian region.  
 The common apprehension that India and Russia shared with regards to the long borders they
shared∙ with China seems to have lost its significance for Russia, as Russia expands its economic,
political, and security ties with China.
 It would be overrated to call Russia’s shift towards Pakistan a move taken by the country to bring
India on track. The combination of secure Pakistan and China backed by Russia would mean a huge
challenge to India’s position in the South Asian region.
 The allegation however, cannot be ignored either.  Russian Defense Minister Gen Sergey Shoigu
recently visited Islamabad to sign an unprecedented Russia Pakistan defence cooperation agreement.  In
a joint statement issued at the conclusion of the third meeting of Pak-Russia Inter-Governmental∙
Commission on Trade, Economic, Scientific and Technical Cooperation in Moscow, both, Pakistan and
Russia, hoped to collaborate in trade, economy, science, technology, agriculture, education, and culture.
The growing closeness between Russia and Pakistan is seen as a threat to India’s strategic defence
moves.
Decline in Indo-Russia cooperation in present context  

 Russia downgrading its military-technical relationship with India from that of an exclusive partner
to a preferred partner.  
 Such pragmatism should come as no surprise given that India has diversified its own military
import portfolio and no longer considers Russia as its exclusive trading partner.  Russian military export
overtures towards Pakistan are now perceptible.
 In a noteworthy development, Russia recently decided to supply Mi-35 Hind attack helicopters to
Pakistan. Prior to this, Moscow had refrained from supplying lethal military equipment to Pakistan on
account of New Delhi’s strained relationship with Islamabad-the legacy of this Indo-Russian military
exclusivity can be traced all the way back to the Indo-Soviet Treaty of Friendship, Cooperation and Peace
of 1971.
 Consequently, the Pakistan deal caught many geo-political commentators by surprise; some, like
Pavel Felgenhauer, have even gone so far as to call it an “important, key change in Russian policy in the
region.”  Conscious of Indian sensitivities, Russian diplomats have been quick-perhaps too quick-to point
out that the negotiations are part of an “ongoing cooperation with Pakistan in the field of defense and
counterterrorism.”
 But the 123 Agreement that India signed with the U.S and Russia’s share of military sales to India
is now in steady decline. In consonance with India’s enhanced geopolitical status and strategic
rapprochement with the U.S., New Delhi has found new partners in the West.  Russia’s increasing bond
with China also to some extent brings strain in Indo-Russia relaions.
 India conducts more military exercises with U.S than any other country. The Chinese arms
industry is known for reverse engineering foreign-origin military hardware and has already burned Russia
in the past when it acquired a small number of Russian Su-27 Flanker jets and then reverse-engineered
the J-11B aircraft.
 In comparison, Indo-Russian military transfers do not have such a checkered past. If China’s
questionable reverse engineering practices and its already developed industrial base were factored into
Russia’s decision-making calculus, India would emerge as a far superior long-term partner for the
Russian arms trade. Going forward, a period of dissonance is to be expected, before India and Russia
can adjust to the realpolitik of the present
 Need of the Hour

 India has to rebuild on its strengths and common concerns with the Russians.
 Both have to revitalize their earlier agreement on sharing intelligence for a joint strategy on
terrorism. Indian and Russian anxieties on terrorism need to converge and bring about some positive
outcome.  
 India needs to deepen its scientific and technological relations with Russia since a base for this
already exists.  
 India can use some creative means to build a Russia-India-China (RIC) alliance.
 Needs focus is increasing trade and investment ties between India and Russia.
Recent Development
In October 2016 The Russian President visited India for the 17th bilateral summit between India and
Russia.
PM Modi highlighted the “special and privileged strategic partnership” between India and Russia by
quoting that, “An old friend is better than two new friends.”
Key Highlights of the Bilateral Summit
Cross Border Terrorism- Condemned unequivocally and sealed a deal on ‘information security’ to
counter terrorism, drug trafficking and other illegal cross-border activities.
Defence Sector- Agreement to buy Russia’s most advanced S-400 ‘Triumf’ anti-missile defence system,
to manufacture Kamov-226T utility helicopters and four improved Krivak or Talwar class stealth.
Regional Integration and Trade- Emphasize on implementation of the International North-South
Transport Corridor (INSTC).
Infrastructure and Technology- Russian Direct Investment Fund (RDIF) to invest in a sub-fund under
the National Infrastructure Investment Fund (NIIF) of India.
Nuclear Power Project- Modi and Putin both jointed declared the second unit of Kudankulam Nuclear
Power Plant (Units 5 and 6).
Russian Largest FDI in India- Russian oil firm Rosneft and United Capital Partners signed an
agreement to acquire Essar Energy Holdings Ltd’s refining and retail assets at $10.9 billion, making it
Russia’s largest foreign direct investment in India.
Conclusion  
A sharp rise in Russia-China defense ties, the assertive foreign policy of a rising China in the IndoPacific,
and the China-Pakistan nexus will all encourage India to continue to strengthen ties with Russia.  It is
clear that India-Russia relations remain vital for both countries amid a changing regional and global
security environment.
More will need to be done if the relationship is to play the role both countries clearly expect.∙  With more
emphasis on defence deals as well as energy ties in recent times, India tried to ward off the impression
that it is tilting towards the United States of America.

India-US Relations
Eliminating the hesitations of history, India and the United States have built a strong and strategic bilateral
relationship and continues to contribute the stability and prosperity of the world. The first Prime Minister of
India Jawaharlal Nehru likened American Imperialism to that of British. He propounded and propagated
the Non-Alignment Principle whereby India refused to join either the capitalistic US or the communist
Soviet Union.
India’s socialistic economic principles and deep scepticism to the US hegemony resulted in its
predilections towards USSR much to the ire of the West. As the ideological Cold War ended after a
myriad of international convergences and divergences, India was forced to look West given the paradigm
shift in the geopolitics of the world and in Francis Fukuyama’s words “End of History”. Today both India
and US are among the most vibrant foreign cohorts and strategic partners.

India-USA: History of Relations

 The birth of Indian Republic was accompanied by Pakistan’s occupation of Kashmir. Nehru’s
efforts to garner support from the international community was fruitless.
 India declined the American offer to accept a seat at the United Nations Security Council and
rather pushed for the membership of the People’s Republic of China which it has immediately
recognized as a sovereign nation. (Reference – TheHindu)
 In the year 1950, India abstained from a US-sponsored resolution calling for UN’s military
involvement in the Korean War. India even voted against UN forces crossing the 38 th Parallel and
naming China as an aggressor.
 1955: Pakistan officially aligned with the United States via the South East Asian Treaty
Organization (SEATO) and Central Treaty Organization (CEATO) also known as Baghdad Pact.
Meanwhile, India, being the chief proponent of Non-Alignment Movement (NAM), held the first
Afro-Asian Conference at Bandung, Indonesia.
 The rogue state of Pakistan became an important ally to the US in the containment of the Soviet
Union, giving rise to strategic complications with India.
 In the Sino-Indian war of 1962, the US extended help to India against China’s belligerence by
sending an American carrier- The Enterprise- to the Bay of Bengal. China, however, had declared
unilateral ceasefire the next day. Indian leaders and public welcomed American intervention.
 1966: In response to India’s criticism of the US intervention in Vietnam, President Lyndon B.
Johnson restricted the supply of grain shipments to India under Public Law 480 programme.
 1967: A predominantly Anti-American worldview led India to reject a founding membership in the
Association of Southeast Asian Nations (ASEAN).
 1968: India rejected the Non-Proliferation Treaty (NPT) proposed by the world’s leading nuclear
powers.
 1971: The USA had maintained a studious silence on Pakistan’s repressive policies in East
Pakistan. The then Secretary of State Henry Kissinger visited Delhi to make India comply to not
support liberation movements in East Pakistan. Indira Gandhi’s intransigence was met with
diplomatic muscle-flexing. Next month, India signed a Treaty of Friendship, Peace and
Cooperation with the Soviet Union, seen as a blatant shift from India’s Non-Alignment policies. US
President Richard Nixon in a retaliatory move chose to explicitly tilt American policy in favour of
Pakistan and suspended $87 million worth of economic aid to India. American naval fleet USS
Enterprise traversed the Bay of Bengal, issuing mild threats. India won the Bangladesh Liberation
War as the Pakistani Army embarrassingly surrendered more than 90,000 troops.
 1974: India conducted its first nuclear weapon test at Pokhran, and it came as a major jolt to the
USA who made plans to upgrade its presence at Diego Garcia, a British-controlled island in the
Indian ocean.
 1975: India faced considerable domestic turmoil and entered into a state of Emergency.
 1977: The Emergency ended and the US immediately eased restrictions it has placed on World
Bank loans to India and approved direct economic assistance of $60 million.
 1978: US President Jimmy Carter and Indian Prime Minister Desai exchanged visits to each
other’s nations.
 The 1980s: Large amounts of military aid was pumped into Pakistan by the USA in order to fight
a proxy against the Soviet Union in Afghanistan. This created significant repercussions in the
internal security of India as the Pakistani mujahedeen fighters infiltrated into Kashmir as militants.
 1988: Prime Minister Rajiv Gandhi made a historic visit to China which led to normalization of
relations between India and China.
 1990: India hesitatingly provided a brief logistical support for American military operations in the
Gulf War.
 Post-1991: The Soviet Union disintegrated into independent nations and the United States
emerged as the single largest hegemon, making the world unipolar. It coincided with India
opening doors to foreign private capital in its historic Liberalization, Privatization, and
Globalization move.
 Trade between India and the US grew dramatically and is flourishing today.
Why India Matters to the USA?

 India is an indispensable partner for the United States. Geographically, it sits between the two
most immediate problematic regions for U.S. national interests. The arc of instability that begins in
North Africa goes through the Middle East, and proceeds to Pakistan and Afghanistan ends at
India’s western border.
 The Indian landmass juts into the ocean that bears its name. With the rise of Asian economies,
the Indian Ocean is home to critical global lines of communication, with perhaps 50 percent of
world container products and up to 70 percent of ship-borne oil and petroleum traffic transiting
through its waters.
 India’s growing national capabilities give it ever greater tools to pursue its national interests to the
benefit of the United States. India has the world’s third-largest Army, fourth-largest Air Force, and
fifth largest Navy. All three of these services are modernizing, and the Indian Air Force and Indian
Navy have world-class technical resources, and its Army is seeking more of them.
 India is an important U.S. partner in international efforts to prevent the further spread of weapons
of mass destruction.
 India’s broad diplomatic ties globally (most importantly in the Middle East), its aspirations for
United Nations (UN) Security Council permanent membership, and its role in international
organizations such as the International Atomic Energy Agency makes New Delhi an especially
effective voice in calls to halt proliferation.
 India’s position against radicalism and terrorism corresponds with that of the United States.
 India’s English-speaking and Western-oriented elite and middle classes comfortably partner with
their counterparts in U.S. firms and institutions, including more than 2.8 million Indian Americans.
The U.S. higher education system is an incubator of future collaboration, with more than 100,000
Indian students in American universities.
 As India modernizes and grows it will spend trillions of dollars on infrastructure, transportation,
energy production and distribution, and defence hardware. U.S. firms can benefit immensely by
providing expertise and technology that India will need to carry out this sweeping transformation.
 India-USA cooperation is critical to global action against climate change.
 India is genuinely committed to a world order based on multilateral institutions and cooperation
and the evolution of accepted international norms leading to accepted international law.
 Indian culture and diplomacy have generated goodwill in its extended neighbourhood. New Delhi
has positive relations with critical states in the Middle East, in Central Asia, in Southeast Asia, and
with important middle powers such as Brazil, South Africa, and Japan—all of the strategic value to
the United States. India’s soft power is manifest in wide swaths of the world where its civil society
has made a growing and positive impression.
 Indian democracy has prospered despite endemic poverty; extraordinary ethnic, religious, and
linguistic diversity; and foreign and internal conflicts.

Why the United States matters to India?

 America remains the critical stabilizing force in Asia through its military and diplomatic power
projection and commitments to the region.
 The twentieth century bore witness to a multigeneration U.S. efforts to prevent the emergence of
any hostile hegemon on the Eurasian landmass, a function that the United States continues to
fulfil today with the help of its Asian partners.
 China has chosen episodically to ignore global nonproliferation norms, a pattern of behaviour that
the United States has assiduously sought to curtail. Though no nation can a priori prevent future
Chinese proliferation activities, only a U.S.-led international effort has any chance of success.
 India will be better able to protect its national interests in Pakistan and Afghanistan in
coordination with the United States.
  The United States will continue to be important for India’s economic success. India’s economy
has been built around unleashing domestic consumption rather than relying on exports.
 The United States has also remained one of the top sources of foreign direct investment in India,
bringing important managerial expertise, capital, and technology with it to the dynamic Indian
market.
 The United States has a long-term commitment to maintain security and freedom of navigation on
the high seas, something critical to India as a net energy importer.
 Washington retains unparalleled power and influence in global governance institutions.
 As India seeks a larger role in the UN Security Council and international monetary institutions,
U.S. support for India will be critical to reforms that benefit New Delhi’s national interests.
 The United States retains a sizable technological edge on many commercials, aerospace, and
defence technologies, the access to which benefits Indian national interests as well as Indian
firms and customers.

India-USA: Five Pillars of Strategic Partnership

1. Strategic Issues
2. Energy and Climate Change
3. Science and Technology
4. Health and Innovation
5. Education and Development

India-US Civil Nuclear Deal

The deal is seen as a watershed in India-USA relations and introduces a new aspect to international
nonproliferation efforts. Since July 18, 2005, the deal lifts a three-decade U.S. moratorium on nuclear
trade with India. It provides U.S. assistance to India’s civilian nuclear energy program and expands India-
USA cooperation in energy and satellite technology.

Terms of the deal:

1. India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the
United Nations’ nuclear watchdog group, access to its civilian nuclear program. By March 2006,
India promised to place fourteen of its twenty-two power reactors under IAEA safeguards
permanently.
2. India commits to signing an Additional Protocol (PDF)-which allows more intrusive IAEA
inspections of its civilian facilities.
3. India agrees to continue its moratorium on nuclear weapons testing.
4. India commits to strengthening the security of its nuclear arsenals.
5. India works toward negotiating a Fissile Material Cutoff Treaty (FMCT) with the United States
banning the production of fissile material for weapons purposes. India agrees to prevent the
spread of enrichment and reprocessing technologies to states that don’t possess them and to
support international nonproliferation efforts.
6. US companies will be allowed to build nuclear reactors in India and provide nuclear fuel for its
civilian energy program.
An approval by the Nuclear Suppliers Group lifting the ban on India has also cleared the way for other
countries to make nuclear fuel and technology sales to India. India would be eligible to buy U.S. dual-use
nuclear technology, including materials and equipment that could be used to enrich uranium or reprocess
plutonium, potentially creating the material for nuclear bombs. It would also receive imported fuel for its
nuclear reactors.
Ashley Tellis of the Carnegie Endowment for International Peace-who was intimately involved in
negotiating the civil nuclear agreement with India as a senior adviser to the U.S. undersecretary of state
for political affairs–said in congressional testimony in 2005 that the deal recognizes this growing
relationship by engaging India, which has proven it is not a nuclear proliferation risk. (Reference: Council
on Foreign Relations)

Five developments in the India-US relations since the deal:

1. The US has removed many high technology sanctions imposed on India since 1974. If Delhi was
prevented by law from importing anything for its nuclear programme over the last few decades, it
is boosting atomic power generation in India through imported uranium and is negotiating with
multiple vendors for the purchase of new reactors.
2. The US has become India’s largest trading partner in goods and services, and the two sides have
set an ambitious goal of half a trillion dollars for future trade. The growing commercial
engagement has been reinforced by an intensification of people-to-people contact and the
presence of the 3 million strong Indian diasporas in America.
3. Cooperation on counter-terrorism and intelligence-sharing have expanded rapidly over the last
decade. The US has become one of India’s major suppliers of arms, and the two sides are
discussing ideas that would once have been dismissed as inconceivable — for example, US
support in the development of India’s next-generation aircraft carrier.
4. In refusing to extend the civil nuclear initiative to Islamabad, Washington removed the hyphen in
its relations with Delhi and Islamabad. Since 2005, America has also discarded the idea of
mediating between India and Pakistan, especially on the Kashmir question.
5. While traditional differences between Delhi and Washington on global issues have endured, the
two sides are now avoiding confrontation in multilateral fora dealing with trade and climate
change.

Controversial issues with the deal:

In March 2006, the U.S. Congress also took up the agreement and formally made it into legislation (Hyde
Act) after the committee level deliberations and conciliations in terms of words by both the House and the
Senate.
On 1 August 2007, U.S. and Indian negotiators concluded a separate technical agreement under section
123 of the U.S. Atomic Energy Act, which spells out the precise terms, conditions, responsibilities,
obligations and promises that each party undertakes.
As the Hyde Act had imposed restrictions on how India could utilize U.S. nuclear supplies, the
implementation of the agreement has received a setback because of the opposition by the Communist
parties that supported India’s UPA government from outside. Leaders of almost all the political parties of
India had categorically expressed their dislike and apprehensions for provisions that provided for cutting
off aid if India conducts any future nuclear tests and the return of the all nuclear material or equipment
provided by U.S. suppliers.
Section 17b in the Civil Liability for Nuclear Damage Bill, 2010 according to which the Operator cannot
seek recourse in case of nuclear accidents because of patent or latent defects in the material, equipment
and even in the services provided. The US defies it to be against international norms whereas India says
that it is according to Convention on Supplementary Compensation.

The Civil Liability for Nuclear Damage Bill, 2010

 The Civil Liability for Nuclear Damage (CLND) Bill, 2010 fixes liability for nuclear damage and
specifies procedures for compensating victims.
 The Bill fixes no-fault liability on operators and gives them a right of recourse against certain
persons. It caps the liability of the operator at Rs 500 crore.  For damage exceeding this amount,
and up to 300 million SDR, the central government will be liable.
 All operators (except the central government) need to take insurance or provide financial security
to cover their liability.
  For facilities owned by the government, the entire liability up to 300 million SDR will be borne by
the government.
 The Bill specifies who can claim compensation and the authorities who will assess and award
compensation for nuclear damage.
 Those not complying with the provisions of the Bill can be penalized.
Analysis of the Bill and further issues:

 The liability cap on the operator:

(a) may be inadequate to compensate victims in the event of a major nuclear disaster;
(b) may block India’s access to an international pool of funds;
(c) is low compared to some other countries.

 The cap on the operator’s liability is not required if all plants are owned by the government. It is
not clear if the government intends to allow private operators to operate nuclear power plants.
 The extent of environmental damage and consequent economic loss will be notified by the
government. This might create a conflict of interest in cases where the government is also the
party liable to pay compensation.
 The right of recourse against the supplier provided in the Bill is not compliant with international
agreements India may wish to sign.
 The time-limit of ten years for claiming compensation may be inadequate for those suffering from
nuclear damage.
 Though the Bill allows operators and suppliers to be liable under other laws, it is not clear which
other laws will be applicable. Different interpretations by courts may constrict or unduly expand
the scope of such a provision.
The understanding reached with the United States on January 25, 2015, during the visit of
President Obama to India:
India and the United States have reached an understanding on the issues related to civil nuclear liability
and finalized the text of the Administrative Arrangement to implement the September 2008 bilateral 123
Agreement. This will allow us to move towards commercial negotiations on setting up reactors with
international collaboration in India and realize the significant economic and clean energy potential of the
civil nuclear understanding of 2005-2008.
There is no proposal to amend the Civil Liability for Nuclear Damage Act of 2010 Act or the Rules.

How have U.S. concerns over the CLND Act then been resolved?
During the course of the discussions in the Contact Group, using case law and legislative history, the
Indian side presented its position concerning the compatibility of the Civil Liability for Nuclear Damage
(CLND) Act and the Convention on Supplementary Compensation for Nuclear Damage (CSC). The idea
of the India Nuclear Insurance Pool as a part of the overall risk-management scheme for liability was also
presented to the U.S. side. Based on the presentations by the Indian side, and the discussion thereon,
there is a general understanding that India’s CLND law is compatible with the CSC, which India has
signed and intends to ratify.

India-US Trade Relations

 There are more than 50 bilateral dialogue mechanisms between the two governments.
 India-USA bilateral trade in goods and services increased from $104 billion in 2014 to $114 billion
in 2016.
 Both countries have made a commitment to facilitate actions necessary for increasing the
bilateral trade to $500 billion.
 In June 2016, Prime Minister Modi and President Obama pledged to explore new opportunities to
break down barriers to the movement of goods and services, and support deeper integration into
global supply chains, thereby creating jobs and generating prosperity in both economies.
  The U.S. is the fifth largest source of foreign direct investments into India.
 Among large Indian corporations having investments in the U.S. include Reliance Industries
Limited, Tata Consultancy Services, Wipro, Essar America, Piramal, Mahindra, Lupin, Sun
Pharma, etc.
 There are several dialogue mechanisms to strengthen bilateral engagement on economic and
trade issues, including a Ministerial Level Economic and Financial Partnership and a Ministerial
Trade Policy Forum. For greater involvement of private sector in the discussions on issues
involving trade and investment, there is a bilateral India-USA CEO’s Forum.
 India and the US have set up a bilateral Investment Initiative in 2014, with a special focus on
facilitating FDI, portfolio investment, capital market development and financing of infrastructure.
 US firms will be lead partners in developing Allahabad, Ajmer and Vishakhapatnam as Smart
Cities.

India-US Defence Cooperation

 Defence relationship has emerged as a major pillar of India-USA strategic partnership with the
signing of ‘New Framework for India-U.S. Defense Relations’ in 2005 and the resulting
intensification in defence trade, joint exercises, personnel exchanges, collaboration and
cooperation in maritime security and counter-piracy, and exchanges between each of the three
services.
 India participated in Rim of the Pacific (RIMPAC) exercise in July-August 2016.
 The agreements signed during the past one year include:

1. Logistics Exchange Memorandum of Association (LEMOA)

2. Fuel Exchange Agreement
3. Technical Agreement (TA) on information sharing on White (merchant) Shipping
4. Information Exchange Annexe (IEA) on Aircraft Carrier Technologies
Pending agreements are:

 Communication and Information Security Memorandum of Agreement (CISMOA)

 Basic Exchange and Cooperation Agreement (BECA)

India-US: Cooperation in Energy and Climate Change

 The India-USA Energy Dialogue was launched in May 2005 to promote trade and investment in
the energy sector.
 There are six working groups in oil and gas, coal, power and energy efficiency, new technologies
and renewable energy, civil nuclear co-operation and sustainable development under the Energy
Dialogue.
 As a priority initiative under the PACE (Partnership to Advance Clean Energy), the U.S.
Department of Energy (DOE) and the Government of India have established the Joint Clean
Energy Research and Development Center (JCERDC) designed to promote clean energy
innovations by teams of scientists from India and the United States, with a total joint committed
funding from both Governments of US$ 50 million.

India-US: Cooperation in Education

India is learning from the U.S. experience in community colleges in order to meet our demands for skill-
development. It has been agreed to collaborate with U.S. institutions in the area of Technology Enabled
Learning and Massive Open Online Courses (MOOCs) to extend the reach of education in India. Under
the Global Initiative of Academic Networks (GIAN) launched by India, up to 1000 American academics will
be invited and hosted each year to teach in Indian universities at their convenience. The two sides are
also collaborating to establish a new Indian Institute of Technology in Ahmedabad.

India-US: People to People Contacts

The 3.5-million-plus strong Indian American community is an important ethnic group in the U.S.,
accounting for about 1% of the total population in the country. Indian American community includes a
large number of professionals, business entrepreneurs and educationalists with increasing influence in
the society. The two countries have been working together to facilitate travel of their respective citizens,
and to this end, an MOU has been signed in June 2016 to facilitate India’s joining of the Global Entry
Programme for expedited immigration for eligible Indian citizens at U.S. airports.
It appears highly likely that in strategic, political, security, defence and economic terms, relations between
India and the USA will continue their upward trajectory under President Trump. Impact of USA’s relations
with Pakistan over India is likely to be beneficial and positive. Geopolitical manoeuvres can have
significant impact on India-USA relations, however, it would remain to be multi-faceted and an
“indispensable partnership”

Context- Significance of 2+2 Dialogue:

The first round of the India-U.S. 2+2 talks at the level of External Affairs Minister and Defence
Minister and their counterparts is scheduled for September 6 in Delhi.
The dialogue is an indication of the deepening strategic partnership between our two countries,
and India’s emergence as a net security provider in the region.
It is a significant development but one that appears perfectly logical when seen against the two-
decade-old trend line of India-U.S. relations.
The trend line between two countries has not been smooth but the trajectory definitively reflects
a growing strategic engagement. From estranged democracies, India and U.S. can worst be
described today as prickly partners.
 
Strategic convergence between India & the US:
Three factors have contributed to the emerging strategic convergence between India and US.
First, the end of the Cold War provided an opportunity to both countries to review their
relationship in the light of changing global and regional realities.
Second, with the opening of the Indian economy, the American private sector began to look at
India with greater interest.
Trade grew and today stands at more than $120 billion a year with an ambitious target of
touching $500 billion in five years.
If U.S. foreign direct investment in India is more than $20 billion, Indian companies too have
invested $15 billion in the U.S., reflecting a sustained mutual interest.
The third factor is the political coming of age of the three-million-strong Indian diaspora. Its
influence can be seen in the bipartisan composition of the India Caucus in the U.S. Congress and the
Senate Friends of India group.
The U.S. is used to dealing with allies and adversaries. India is neither, and is also determined
to safeguard its strategic autonomy.
Developing a habit of talking to each other as equal partners has been a learning experience for
India and the U.S.
Both countries also consider themselves to be ‘exceptional’, the U.S. as among the oldest
democracies and India as the largest democracy.
Indians become wary of the U.S.’s attempts to drive unequal bargains, and Americans find
the Indian approach rigid and sanctimonious.
Despite this, significant progress has been registered over the years resulting in the 60-plus
bilateral dialogues, to which the 2+2 Dialogue is now being added.
 
How Defence Cooperation has been evolved over a period of time:
Two parallel tracks of dialogue began in the 1990s. The strategic dialogue covering nuclear issues
shifted gears following the nuclear tests of 1998 and imposition of sanctions by the U.S.
The over a dozen rounds of talks between both the countries during 1998-2000 marked the most
intense dialogue between the two countries. It helped change perceptions leading to the gradual
lifting of sanctions.
The next phase was the Next Steps in Strategic Partnership steered by the then National Security
Advisers, Brajesh Mishra and Condoleezza Rice.
The momentum received a new impulse, eventually leading to the conclusion of the India-U.S.
bilateral civil nuclear cooperation agreement in 2008.
The defence dialogue began in 1995 with the setting up of the Defence Policy Group  at the level
of the Defence Secretary and his Pentagon counterpart and three Steering Groups to develop
exchanges between the Services.
A decade later, this was formalised and enlarged into the India-U.S. Defence Framework
Agreement which was renewed for 10 years in 2015.
Today, the U.S. is the country with which India undertakes the largest number of military
exercises which have gradually evolved in scale and complexity.
During the Cold War, more than three-fourths of India’s defence equipment was of Soviet origin.
This gradually began to change, and in recent years, the U.S. and Israel emerged as major
suppliers.
 
Engaging with Indian Air Force, Indian Navy and the Indian Army:
The Indian Air Force went in for C-130J Hercules and the C-17 Globemaster aircraft, along
with Apache attack helicopters and Chinook heavy lift helicopters.
The Indian Navy acquired a troop carrier ship and the P-8I long-range maritime
reconnaissance aircraft. An agreement for 24 multi-role helicopters for the Indian Navy is expected
soon.
The Indian Army went in for the M-777 howitzers and artillery radars. From a total of less than
$400 million of defence acquisitions during 1947-2005, the U.S. has signed defence contracts of over
$15 billion since.
During the Obama administration, the US understood that a defence supply relationship needed to
be backed by technology sharing and joint development and came up with the Defence Technology
and Trade Initiative (DTII).
To get around export control licensing and other bureaucratic hurdles, an India Rapid Reaction
Cell in the Pentagon was set up. In 2016, India was designated as a ‘Major Defence
Partner’ country.
Another step forward in the middle of this year was the inclusion of India in the Strategic Trade
Authorisation-1 (STA-1) category, putting it on a par with allies in terms of technology access.
The U.S. proposed its standard logistics support agreement text in 2003 which was finally
concluded in 2016, after it was made into an India-specific text.
It facilitates logistics supplies during port visits and joint exercises and does not contain any
obligations for joint activity or any basing arrangements.
The India-specific Communications Compatibility and Security Agreement (COMCASA), is likely
to be signed.
With the possibility of acquiring armed Sea Guardian drones, COMCASA was necessary to ensure
optimal use.
 
Way Forward to solve issues in 2+2 Dialogue:
Two difficult issues loom large and the 2+2 offers an opportunity for addressing these.
The first is the Countering America’s Adversaries Through Sanctions Act (CAATSA) enacted last
year which enables the U.S. government to sanction countries that engage in ‘significant
transactions’ with Russian military and intelligence entities.
 

 The proposed purchase of the S-400 missile defence system would attract CAATSA

sanctions.
 A waiver provision has now been introduced to cover India, Indonesia and Vietnam.
 

 It requires certification by the U.S. that the country concerned is gradually reducing its
dependency on Russian equipment and cooperating with the U.S. on critical security
issues. Indian concerns on this need to be addressed.
The second relates to U.S. sanctions on Iran after its unilateral withdrawal from the nuclear
deal.
 

 Iranian crude imports have grown significantly in recent years and India also stepped up its
involvement in developing Chabahar port.
 

 The port provides connectivity to Afghanistan and Central Asia. The Iran Freedom and
Counter-Proliferation Act (2012) contains a waiver provision in case of activities
for reconstruction assistance and economic development for Afghanistan, which is a
U.S. priority too.
 
Conclusion:
Creative thinking will be needed in the 2+2 dialogue to overcome these challenges, which should
also ensure that difficult issues are settled through quiet diplomacy.
In order to realise the Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region
(2015), both countries will have to nurture the habit of talking and working together to diminish
some of the prickliness in the partnership.
 

INDO-ASEAN RELATION
 HQ at Jakarta (Indonesia); Established in 1967 in Bangkok via Bangkok Declaration
 Founding Fathers of ASEAN → Indonesia, Malaysia, Philippines, Singapore and Thailand
 Since then, membership has expanded to include Brunei, Cambodia, Laos, Myanmar (Burma) and Vietnam

ASEAN follows the principle of “ASEAN way” viz.

 Musyawarah And Mufakat [Consultation and Agreement]
 Don’t use force / confrontation
 Don’t interfere in the internal matters of states
 Informal discussion
 Minimal institutionalization
 
To achieve “ASEAN way”, Treaty of Amity and Cooperation in Southeast Asia (TAC) was signed, to which India
also acceded in 2003 viz.
 
 They’ll not interfere in the internal affairs of one another,
 They’ll not use threat or use of force to settle differences / disputes
 They’ll settle of differences or disputes by peaceful means,
 They’ll effectively cooperate among themselves.
 They’ll mutually respect each other’s’ independence, sovereignty, equality, territorial integrity and national
identity
 Every State has right lead its national existence free from external interference, subversion or coercion
 
Evolution of ASEAN

1967 Establishment of ASEAN

1994 ASEAN regional forum (ARF) (India became its member in 1996)
 1997 ASEAN + 3 is formed (China + Japan + South Korea) to increase regional cooperation

Chiang Mai Initiative (CMI) – a currency swap agreement among ASEAN + 3

2010 Provides emergency liquidity to economies during crises

ASEAN Community Plan- Similar to European Union, which will have three pillars viz.
ASEAN Political Security Community
ASEAN Economic Community
2015 ASEAN Socio-Cultural Community

Timeline of India – ASEAN Relations

1990 India starts engaging with ASEAN, part of Look East Policy.

1992 India becomes a sectoral dialogue partner of ASEAN

1996 India becomes full dialogue partner of ASEAN

2002 India starts having annual summits with ASEAN

2003 India accedes to the Treaty of Amity and Cooperation in Southeast Asia (TAC) India signs counter-terrorism decl

FTA in goods signed

2009 This established Free Trade Area established between India-ASEAN.

2010 FTA in goods becomes effective

20thAnniversary of ASEAN-India Dialogue.

ASEAN – India Commemorative Summit is held.
Now India becomes a strategic partner of ASEAN
2012 FTA in services and investment- talks concluded

2014 FTA in services and investment signed- by all ASEAN nations with India except Philippines.

ASEAN Regional Forum (ARF) – 1994

Dialogue platform between the Foreign Ministers of ASEAN and its full dialogue partners
To provide diplomatic solutions to regional problems.
 

ARF has total 27 member states

ASEAN Countries (10) Dialogue Other nations (7)

Partners
 (10)

Australia
Canada
Brunei Darussalam China
Cambodia EU
Indonesia India
Laos Japan Bangladesh
Malaysia ROK DPRK
Myanmar New Mongolia
Philippines Zealand Pakistan
Singapore Russia Papua New Guinea
Thailand United Timor Leste
Vietnam States Sri Lanka
 
ARF Procedure
 Annual ARF meeting at the level of Ministers
 Track-1 Diplomacy – ARF Senior Officials’ Meeting discussing security measures
 Track-2 Diplomacy – Seminars of scholars and officials from member states
 Annual inter-sessional meetings on Confidence Building Measures and Preventive Diplomacy
 
ARF Vision 2020
 Regional security challenges & measures
 Confidence building and cooperation
 
Hanoi Plan of Action (POA) to implement Vision 2020 involving concrete and practical actions in the fields of:
 Disaster relief
 Maritime security
 Non-proliferation and Disarmament
 Counter-terrorism
 Peacekeeping
 

India and ARF

 Member of the ARF since 1996
 Our participation is consistent with our “Look East” policy, and development of closer links with the
ASEAN as a full-dialogue partner.
 We’ve co-chaired ARF Inter-sessional Support Group (ARF-ISG) on CBMs  and Preventive Diplomacy
 We’ve organized several seminars, workshops and training programmes for ARF Members viz.
 
 UN Peacekeeping course at Delhi
 Maritime security training course at Chennai
 Anti-piracy training at Mumbai by Coast Guard
 Cyber security
On the 8th of August 1967, the Association of Southeast Asian Nations or ASEAN was established in
Bangkok by the five original Member Countries, namely, Thailand, Malaysia, Singapore, Indonesia and
Philippines.
On 8 January 1984 Brunei Darussalam joined
On 28 July 1995 Vietnam joined
On 23 July 1997 Laos and Myanmar joined
On 30th of April 1999, Cambodia joined
OBJECTIVES OF ASEAN
The ASEAN Declaration states that the aims and purposes of the Association are:
i) to accelerate the economic growth, social progress and cultural development in the region through joint
endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous
and peaceful community of Southeast Asian nations, and
ii) to promote regional peace and stability through abiding respect for justice and the rule of law in the
relationship among countries in the region and adherence to the principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government re-affirmed that “Cooperative peace and shared
prosperity shall be the fundamental goals of ASEAN.”

FUNDAMENTAL PRINCIPLES OF ASEAN

The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24
February 1976, declared that in their relations with one another, the High Contracting Parties should be
guided by the following fundamental principles:

 Mutual respect for the independence, sovereignty, equality, territorial integrity, and national
identity of all nations;
 The right of every State to lead its national existence free from external interference, subversion
or coercion;
 Non-interference in the internal affairs of one another;
 Settlement of differences or disputes by peaceful manner;
 Renunciation of the threat or use of force; and
 Effective cooperation among themselves.

ASEAN Regional Forum – ARF

In July 1993 the meeting of ASEAN ministers of foreign affairs sanctioned the establishment of a forum to
discuss and promote co-operation on security issues within the region, and, in particular, to ensure the
involvement of the People’s Republic of China in regional dialogue. The ARF was informally initiated
during that year’s PMC, comprising the ASEAN countries, its dialogue partners (at that time Australia,
Canada, the EC, Japan, the Republic of Korea, New Zealand and the USA), and the People’s Republic of
China, Laos, Papua New Guinea, Russia and Viet Nam. The first formal meeting of the ARF was
conducted in July 1994, following the ministerial Meeting held in Bangkok, Thailand, and it was agreed
that the ARF would be convened on an annual basis.
POLITICAL COOPERATION
The Treaty of Amity and Cooperation (TAC) stated that ASEAN political and security dialogue and
cooperation should aim to promote regional peace and stability by enhancing regional resilience.
Regional resilience shall be achieved by cooperating in all fields based on the principles of self-
confidence, self-reliance, mutual respect, cooperation, and solidarity, which shall constitute the foundation
for a strong and viable community of nations in Southeast Asia. Some of the major political accords of
ASEAN are as follows:

 ASEAN Declaration, Bangkok, 8 August 1967;

 Zone of Peace, Freedom and Neutrality Declaration, Kuala Lumpur, 27 November 1971;
 Declaration of ASEAN Concord, Bali, 24 February 1976;
 Treaty of Amity and Cooperation in Southeast Asia, Bali, 24 February 1976;
 ASEAN Declaration on the South China Sea, Manila, 22 July 1992;
 Treaty on the Southeast Asia Nuclear Weapon-Free Zone, Bangkok, 15 December 1997; and
 ASEAN Vision 2020, Kuala Lumpur, 15 December 1997
 Declaration of ASEAN Concord II, Bali, 7 October 2003
The ASEAN Security Community is envisaged to bring ASEAN’s political and security cooperation to a
higher plane to ensure that countries in the region live at peace with one another and with the world at
large in a just, democratic and harmonious environment. Through political dialogue and confidence
building, no tension has escalated into armed confrontation among ASEAN members since its
establishment more than three decades ago.
India-ASEAN Relations and Recent Summit
ASEAN-India Commemorative Summit was held in New Delhi to celebrate the 25th anniversary of the
establishment of sectoral dialogue between two sides under the theme of “Shared Values, Common
Destiny”. It issued joint statement titled Delhi Declaration after the plenary session. The session also
assumes importance as for the first time there was explicit mention of close cooperation to handle “cross-
border movement of terrorists”.

About ASEAN It stands for Association of Southeast Asian Nations formed in 1967 by five countries namely
Indonesia, Malaysia, the Philippines, Singapore and Thailand under ASEAN or Bangkok declaration. Today the
membership has extended to include a total of 10 members-along with 5 above members- Cambodia, Brunei, Laos,
Myanmar and Vietnam are other five. It was formed with the objective of accelerating the development and
progress of the region by promoting cooperation among the member nations. The members have achieved strong
regional integration through initiatives like ASEAN Free Trade Agreement (AFTA), the ASEAN Framework
Agreement on Services (AFAS) and the ASEAN Investment Area (AIA) etc.

Evolution of India ASEAN relations

India and ASEAN nations share common colonial, historical and cultural linkages. India even supported some
nations like Indonesia in their struggle for independence. During Nehru’s era in India, various initiatives were taken
to build closer ties with the countries of Southeast Asia. But the efforts did not materialized into developing full
fledges economic, political or strategic partnership between India and ASEAN. This was partly due to China’s
dominance in south East Asian region, recognition of Kampuchea regime in Vietnam contrary to ASEAN interests,
inclination of India towards Soviet Union etc. However, the launch of India’s ‘Look East Policy’ in 1992 was a
turning point in India-ASEAN relations. By then ASEAN countries too realized the importance of India as the fastest
growing economy in Asia and an emerging regional power. The realization of growing complementaries led to the
establishment of sectoral dialogue partnership between two sides in 1992. This was elevated to a full-fledged
dialogue partnership in 1996, and eventually in 2002 India started annual summits with ASEAN. Endeavors were
made to establish robust economic relations by signing FTA in goods with ASEAN in 2009 and in services in 2014.
Currently, the growing synergies between two sides can be gauged from the fact that there are about 30 platforms
for engagement, including an annual leaders’ summit and ministerial dialogues. The engagement has evolved not
only at economic but also at political, strategic, security and defence level ties.

Complementariness between India and ASEAN Following are the arenas where two sided share common interests:
Trade relations
Today ASEAN is India’s 4th largest trading partner, and India is the 7th largest trading partner of the bloc. Both
sides enjoy trade complementarities in various domains such as agriculture, minerals fuels, oils and bituminous
etc. which have continued to grow in the past years. Among all Southeast Asian countries; Singapore, Malaysia and
Thailand emerged as major exporters to India. Further, services trade grew twice that of merchandise trade.

Foreign Direct Investment

India received nearly US$ 13.8 billion as foreign direct investment (FDI) from ASEAN economies in 2015-16.Among
all major economies of ASEAN, Singapore invests the most in India which has gain further impetus with signing of
India-Singapore Comprehensive Economic Cooperation Agreement.

Strategic reasons
China’s rise in the last few decades in an offensive manner with incursions in South China sea leading to disputes
with almost every ASEAN nation has made these nations to look towards India as a balancing force. India’s
historical track record and a stature as a soft power with willingness to accede to the Treaty of Amity and
Cooperation in Southeast Asia and its endorsement of the Southeast Asia Nuclear Weapons Free Zone (SEANWFZ)
has gone a long way in assuring the region of India’s intent as a friendly nation deprived of any hegemonic designs.
Moreover, protection of vital sea lanes of communication like Taiwan, Malacca and Sunda straits etc are essential
for all the nations including India to ensure that its sea-bound trade continues uninterrupted. Thus, apart from
economic benefits, geopolitical compulsions have also made India’s engagement with ASEAN very important.
Terrorism
ASEAN countries have, in the past few years, been victims of terrorist attacks; Indonesia and Thailand in particular.
Other non-traditional challenges such as human trafficking, cybercrime and piracy are rife in India as well as
neighboring ASEAN regions. Thus the complete elimination of such issues demands regional cooperation

. People-to-people connectivity

India has a long history of people-to-people connectivity with Southeast Asian countries, particularly with
Singapore, Malaysia and Indonesia, which are home to large populations of the Indian diaspora. Indians comprise
nine percent of Singapore’s population and seven percent of Malaysia’s. India and the member countries of ASEAN
jointly organize regular exchange programmes for students, farming communities, diplomats, and business and
media personnel, among others.

Areas of Concern
However, things are not all rosy in the equation. There a quite a few loose ends that needs to be tied. They are as
discussed below:

Imbalance in trade and investment

Although the trade between both regions have increased substantially however it is skewed against India. This is
primarily attributed to Free trade agreement (FTA) with ASEAN resulting into flooding of cheap imported products
into India. Whereas India’s exports are not rising on the same pace. Apart from unfavorable balance of trade,
India’s domestic producers are also suffering. For example- Cheaper palm oil from ASEAN is hurting local producers
in Kerala. On the investment front too, India is at back foot. In 2015, India accounted for only 1.3 percent of total
net inflows into ASEAN and was largely in the financial, insurance and real estate segment. Also the investment by
India FDI into ASEAN nations accounts for 22% of its total outbound FDI; far less in comparison to the US, the EU
and Japan.

China’s increasing presence

Despite problems between China and ASEAN members on the issue of South China Sea, china is trying to increase
it presence in the area through its one belt one road initiative which is opposed by India. Under OBOR, China is
ramping up its infrastructure investments in rail and road connectivity. For example-investments have been made
to connect Laos, Thailand with southern china through high speed rail links. Among ASEAN; Malaysia, Thailand,
Laos and Indonesia have already joined OBOR.

Physical connectivity
Better transport connectivity is critical to India-ASEAN relations. But on this front too both sides lag behind. There
are no railway links, poor road connectivity and, inadequate maritime and port facilities. Delay in completing
infrastructure projects— India-Myanmar-Thailand trilateral highway, the Kaladan Multimodal Transit and
Transport Project, and the Moreh-Mandalay Bus Services -due to various political and financial constraints, has
impeded the progress of economic cooperation. Moreover, the India’s north east connectivity has also been
hampered. Given that Myanmar shares such a long border with NE states and can act as a bridge between India
and South East Asian markets so there is a need to speed up the stalled projects.

Tourism Industry
It is another area that has not lived up to its potential. Although the number of outbound tourists from India to
ASEAN countries has increased, India only accounts for 3 percent of tourist arrivals to the ASEAN region. The
number of tourists from ASEAN countries to India is nothing to brag about either.

Comment
 With increasing assertiveness of china and its soft power diplomacy through OBOR in the South East Asian Region
it has become imperative for India to engage effectively in the region. Besides making efforts for favourable
economic relations, the two sides should also explore the unexplored domains in the relationship especially energy
security. ASEAN countries, particularly Myanmar, Vietnam and Malaysia can potentially contribute to India’s
energy security. Also oil and natural gas deposits in the South China Sea region should be explored through
regional cooperation. Similarly, India with huge demographic dividend can provide a human resource base to
ASEAN who is going to experience a burden of lower share of working age population and a higher median age of
workers. Thus, there is a long way to go for both sides and enhance regional cooperation.

INDO-CHINA RELATION
India & China, both the countries started off on cordial note post independence with signing of Panchsheel.
However the relations turned cold post 1962 war which created mistrust between the two countries since then. Both
the countries have similar attributes and problems including large population, huge rural-urban divide, rising
economy and conflict with neighbours.

Major irritants
 Border Disputes – Share about 3,488-km long border which is yet to be fully delineated.
 India supports a Tibetan gov. in exile formed by Dalai Lama, unacceptable to china. China recently
opposed to the Dalai Lama’s visit to Arunachal Pradesh, particularly Tawang, which it considers as Southern
Tibet.
 China began the practice of issuing stapled visa to residents of AP and J & K, though it stopped it for J & K
but continues for AP.
 China has an undeclared policy of String of Pearls to encircle India, which involves building of ports and
naval bases around India’s maritime reaches. While India has been trying to develop closer arrangements with
the countries surrounding China viz. Japan, South Korea & Vietnam
 China has been building dams in Tibet part of Brahmaputra. India has objected to it but there has been no
formal treaty over sharing of the Brahmaputra water.
 China has been blocking India’s attempt to entry to NSG & has also blocked India’s attempt at the UN for
sanctions against Jash-e-Mohammad chief Masood Azhar.
 India considers building of the CPEC as China’s interference in India’s sovereignty and territorial integrity.
 Trade imbalance with the imbalance skewed in China’s favour viz. $46.56 billion in 2016
 

Border Dispute India China

Western Border Dispute – Johnson’s line shows Aksai Chin to be under Indian control whereas the McDonald
Line places it under Chinese control. Line of Actual Control separates Indian-administered areas of J & K from
Aksai Chin & is concurrent with the Chinese Aksai Chin claim line. China and India went to war in 1962 over
disputed territory of Aksai Chin. India claimed this was a part of Kashmir, while China claimed it was a part of
Xinjiang.
Eastern Border Dispute: China considers the McMahon Line illegal and unacceptable claiming that Tibet had no
right to sign the 1914 Convention held in Shimla which delineated the Mc Mahon line on the map –  Thus claims
parts of Arunachal Pradesh – India and China have held 19 rounds of Special Representative Talks on the border and
there has yet to be an exchange of maps.

China Pak Axis

 Higher than the mountains, deeper than the oceans, sweeter than honey
 China is Pakistan’s great economic hope and its most trusted military partner
 Pakistan lies at the heart of China’s geostrategic ambitions i.e. New silk road connecting the energy fields
of the Middle East and the markets of Europe to China
 China opposed India’s admission into permanent seat of UNSC, & insisted for Pakistan
 CPEC – will connect Kashgar in China’s Xinjiang province with the port of Gwadar
 Military and nuclear arms support by China in the past besides economic support
 China‘s has been shielding Pakistan’s terrorist outfit chief, Massod Azhar from being listed as a ‘Global
Terrorist’ by the UN.
 

OBOR – Will Connect Asia, Africa, Middle East & Europe

 Three main goals of China are:
 Economic diversification
 Political stability and the
 Development of a multipolar global order
 All of India’s neighbours, except Bhutan, sent highlevel delegations for the summit.

India’s Objection to OBOR 

 Projects in the Gilgit-Baltistan region, ignoring India’s “sovereignty and territorial integrity”.
 Lack of transparency in China’s agenda, New Delhi believes that it is not just an economic project but one
that China is promoting for political control
 Smacks of Chinese neo-colonialism – Could push smaller countries on the road into a crushing debt cycle,
destroy the ecology and disrupt local communities.
 India fears that CPEC, passing through the Pakistan controlled Kashmir, would serve the purpose of
granting legitimacy to Pakistan’s control over the region, and by promoting the construction of the corridor,
China intends to meddle in the Kashmir dispute.
 Indian security experts also fear that after gaining access to Gwadar port, the Chinese will find it easy to
sail into the Indian Ocean.
 

India’s decision to skip the meeting came after a year of bilateral discord over China’s stubborn opposition to
India’s entry into the NSG and a UN ban against Pakistan-based terrorist group Jaish-e-Muhammad leader Masood
Azhar. The decision to not attend even as an observer, however, effectively closes the door for diplomacy. Expert
believe that by boycotting the Beijing meet, India was denying itself unending benefits of something as big as
OBOR for ex. infrastructural shortcoming that it is facing currently. Meanwhile India & Japan have come up with
Asia Africa Growth Corridor to counter China’s OBOR.

The Baloch Angle 

Gwadar is located in Baluchistan, & Baloch are against CPEC because they claim that the CPEC’s benefits will not
flow to them. They further state that CPEC is not an economic project. Pakistan and China together are building a
military infrastructure in Balochistan’s coastal areas. The purpose is to strengthen their military supremacy in the
region which will undermine the stability of the region. A fear of a massive inflow of migrants from different areas
of Pakistan which will change the demography of Balochistan and reduce the Baloch people to a permanent minority
in their historic homeland.

South China Sea Dispute

New islands were constructed by dredging sand onto reefs, an effort by China to boost its claim to all of the Spratly
Islands in the South China Sea. It has also built ports, Runaways and radar facilities on the manmade islands.
satellite images of the islands, show that China now appears to have installed large antiaircraft guns and weapons
systems as well – Paracel and Spratly islands

 China rejected an international ruling on the South China Sea as “null and void” and devoid of any
“binding force”.
 China’s development in the region is seen as threatening to other nations Taiwan, Brunei, Philippines and
Malaysia.
 About half of the world’s annual merchant fleet tonnage—passed through the South China Sea in 2010.
Any tension in the region may immensely affect the international trade and economy
 China has demonstrated a desire to control all of the passage through what it considers its sphere of naval
power. This predilection is in direct opposition to the U.S.-backed global standard of free passage through the
high seas.
 
India has made it clear that it recognised that the tribunal had been set up within the jurisdiction of the UN’s
Convention on the Law of the Sea (UNCLOS) that must be given the “utmost respect”. As part of a soft-diplomacy
effort, India is looking to have South China Sea countries such as Vietnam, Malaysia and Philippines use the
tsunami early warning-system developed by India.

Doklam Plateau Face-off 

Indian troops intervened to block the path of Chinese People’s Liberation Army soldiers engaged in building road-
works on the Doklam plateau, a strategically vital 269 sq. km. patch of Bhutan’s territory that Beijing laid claim to.

 This is the first time that India used troops to protect Bhutan’s territorial interests.
 Earlier China have made Bhutan a “package deal” under which the Chinese agreed to renounce their claim
over the 495-sq.-km disputed land in the Northern Bhutan, in exchange for disputed land of Doklam plateau.
 

India’s concern 
 The construction of a new road through the Chumbi valley would further endanger the “Chicken’s Neck” –
the narrow Siliguri corridor links the north-east with the rest of India
 India has conveyed to the Chinese government that the latter’s construction of road in the disputed Doklam
area ‘would represent a significant change of status quo with serious security implications for India.’
 India is vulnerable in this corridor as it is the only access point to the northeast. The Corridor is about 500
km from the Chumbi Valley.
 

Chinese reaction
 Following the tensions, Chinese authorities have closed the Nathu La pass to Kailash Mansarovar pilgrims.
 China served notice on India to withdraw its forces, as a precondition for a “meaningful dialogue” –
unacceptable to India, unless the PLA also withdraws its troops and road-building teams.
 China has long desired an independent Bhutanese stand without Indian advocacy and interference on the
boundary issue. Chinese academia often dubbed India’s interference as hegemony in South Asia.
 By challenging Bhutanese security, Beijing hoped to put a strain on the India-Bhutan “special relationship”.
 

India & China Mutually Disengaged Their Troops

 The end of Dokalam standoff is a huge political, diplomatic & moral victory for India. It will contribute to
raising the stature of the country. The fact that the Indian government stayed steadfast and resolute in the face of
extreme provocation, speaks volumes of the determined and decisive approach of the present government.
 The episode has significantly established the image of India as a responsible, decisive and reliable actor on
the global scene.
 The episode has contributed to further strengthen relations between India and Bhutan. The message to
India’s neighbourhood is also positive and reassuring.
 However India and China should not see Doklam in terms of point-scoring but rather as a warning of the
need for extending their border management framework across other borders as well.
 Stronger economic and commercial partnership between the two countries can be a win -win scenario for
both the countries if China removes its non-tariff barriers against Indian products and services.
 India must necessarily “hope for the best, and prepare for the worst”, when it comes to tensions with its
northern neighbour.
 
 Deterioration of India-China relation
 Delhi has expressed disappointment over China’s rejection of its concerns on sovereignty issues, and
refusal to corner Pakistan on cross-border terrorism or help India’s bid for NSG membership.
 In turn, India’s spurning of the OBOR Initiative and cooperation with U.S. on maritime issues has not
played well in China
 Dalai Lama visit to Tawang was strongly protested by China – it accused India for fuelling secessionist in
Tibet.
 India is also working with Japan, South Korea and the US to contain China’s power in the Indian Ocean
provoking China
 

Cooperation between India and China 

 Both members of BRICS, which is now establishing a formal lending arm, the New Development Bank.
 India, a founding member of the China-backed Asian Infrastructure Investment Bank.
 China welcomed India’s full membership of Shanghai Cooperation Organization.
 Both countries have advocated democratization of international institutions such as World Bank, IMF
 China and India have similar stand during WTO negotiations.
 China and India, being the main targets of criticism by the US and its friends, have so far successfully
coordinated their strategies in the environmental summits
 

Way forward for India 

 Necessary to build up economic and security capabilities and begin to close the power gap with China.
 India’s foreign policy formulations on China and Pakistan need no longer be considered as separate instead
one hyphenated strategic entity.
 Time for India to join hands with Japan, US and EU to promote alternatives to Chinese economic
exploitation.
 India should aggressively pursue ‘Cotton Route’, Project Mausam and Spice Route to strengthen economic
ties between countries in the Indian Ocean rim.
 Bring into action planned strategic Asia Africa Growth Corridor with the help of Japan.
 

Most of its neighbours have been adept at playing the “China card” against India’s alleged “hegemony”, and China
has been quick to exploit this to its advantage. Its strategy has been to bottle up India in the subcontinent, but India
can defeat this strategy of China by mending fences with the neighbours and by convincing them that it has no
hegemonic ambition.
 The rise of India and China as two major economic and political actors in both regional and global politics has
caught global attention. The two emerging and enduring powers representing two modes of civilization signify a
complex and dynamic relationship in world politics. The Wuhan meeting (April 2018, “informal summit”) between
Prime Minister Narendra Modi and Chinese President Xi Jinping is being hailed as a ‘new chapter’ in relations as
the two countries engage in the wake of post-Doklam rhetoric.

India-China Relationship: Evolution

 For thousands of years, Tibet was the buffer that kept India and China geographically apart and at peace. It
is only after China invaded and occupied Tibet in 1950, the two countries are sharing a common border.
 The extensive mutual historical experience was not there between the two nations and each country had a
poor understanding of the psyche and system of the other.
 Before the mid-20th century, India-China relations were minimal and confined to some trade and exchange
of pilgrims and scholars. Interactions began after India’s independence (1947) and the Communist revolution in
China (1949).
 Nehru’s views supporting an independent Tibet gave rise to Chinese mistrust. Nehru accepted China’s
suzerainty over Tibet but wanted Tibet to remain autonomous. 
Tibetan regard for India (where Buddhism originated) as their spiritual mentor and the holy land was a concern
for China.
 China showed no concern for McMohan Line (1914 Simla Convention signed between the British and the
Tibetan representatives) which it said was imposed by “imperialists.”
 Nehru and Zhou signed the Panchsheel treaty on 29 April 1954 to lay the roadmap for stability in a region
(Hindi-Chini Bhai-Bhai) as India acknowledged Chinese rule in 
Tibet: Mutual respect for each other's territorial integrity and sovereignty; Mutual non-aggression; Mutual non-
interference; Equality and mutual benefit; and, Peaceful co-existence.
 As China tightened its grip on Tibet, India gave asylum to the Dalai Lama (1959).
 In 1962, China's People's Liberation Army invaded India in Ladakh, and across the McMahon Line in the
then North-East Frontier Agency. After the conflict, relations were in a freeze.
 Prime Minister Rajiv Gandhi’s landmark visit in 1988 began a phase of improvement in bilateral relations.
India-China relations normalized through the regular exchange of high-level visits.
India-China Competition, Cooperation, Discord

India-China relationship is dotted with competition, cooperation, and discord. In 2017 these played out in India’s
critique of China’s Belt and Road Initiative (BRI), India’s entry into the Shanghai Cooperation Organisation (SCO),
the dramatic crisis in Doklam, the acceleration of multilateral cooperation in the BRICS and attempts to foster
economic engagement.

External Balancing

External balancing is the forging of military cooperation with one state to deter or defeat a threat posed
by another, is one of the principal means by which states cause and enhance security for themselves. It
emerged as a component in India’s foreign policy during the last stages of the 1962 War with China and
persisted until the collapse of the Soviet Union in 1991. During these years, India sought or concluded
three agreements with other states to deal with the threat perceived from China. India-China relations
have continued to be subject to an underlying security dilemma.

India-China Relations: Reset Needed in 2018

 There is a systematic buildup of negative images of how each side viewed the other’s foreign policies along
with a collapse in geopolitical trust.
 China’s attempt to raise its economic and political profile in the subcontinent was seen as a challenge to
India’s authority in the region. India’s military engagements with the U.S. and Japan (China’s main strategic
rivals) was seen as a serious challenge to Chinese security.
 Both Delhi and Beijing seemed to be convinced that only an assertive policy will work and for past few
years, they have been exploiting leverages and pressures particularly with respect to India’s US tilt and China’s
Pak tilt.
 PM Modi with his visit to China attempted a course correction. It is being called a ‘reset’.
India’s Policy Towards China: An Analysis

 India has adopted a two-pronged policy for dealing with China. The first prong involves continued
engagement, both bilaterally and in multilateral forums such as BRICS, SCO and the Russia-India-China
trilateral, in order to maintain overall stability, deepen economic ties, and foster diplomatic cooperation on
regional and international issues. Thus, during the Doklam crisis, India not only insisted on a diplomatic
settlement based on a return to the status quo ante but did not let the crisis come in the way of scheduled bilateral
visits and meetings despite China’s state-controlled media warning India of a repeat of the 1962 war and more
troubles. 
India has also sustained efforts to enhance its military and deterrent capabilities as the second prong of policy.
 There is an emerging third prong in India’s China policy in the form of new external balancing effort. The
evolution of India-US relations in particular but also of India’s relationships with Japan and Australia as well as
the quadrilateral cooperation among them indicates a growing convergence in their views regarding stability in
the Indo-Pacific region particularly with respect to China’s intentions in laying territorial claims to more than 80
per cent of the South China Sea as well as to the sovereign territories of India and Japan.
Tension or conflict between the two countries takes away from the prospects of the Asian century that their leaders
speak of. A regular pattern of more informal summits between the leaders of the two countries is needed.

Other issues between India and China

The recent standoff is seen as a culmination of a number of disagreements between India and China and the relations
between the two sides has soured in the last 2-3 years. Few of them are:

 1. India’s entry into the UNSC and the NSG

China has been opposing India’s entry into the United Nations Security Council (UNSC) and in the Nuclear
Supplier’s Group (NSG).

 2. India’s opposition to the OBOR

India has been opposing China’s flagship ‘One Belt One Road’ (OBOR) initiative‘, as the ‘China Pakistan
Economic Corridor (CPEC)‘, a part of OBOR, passes through the Pakistan Occupied Kashmir (POK) and acceding
to OBOR would mean undermining India’s sovereignty.

 3. Strengthening of India-USA relations

China is critical of India-USA relations and it is not merely a coincidence that the escalation at the tri-junction
coincided with the Indian Prime Minister’s visit to the United States. India supports the US and other countries in
reaffirming the freedom of navigation in international waters, which includes the South China Sea. Along with this,
the ‘MALABAR Naval exercise’ between India, Japan and USA is also a matter to worry for China.

 4. Issue of Tibet and Dalai Lama

The fact that Tibet’s spiritual leader Dalai Lama lives in India is a tension area in India-China relations. The recent
visit of Dalai Lama to Arunachal Pradesh has been a matter of conflict between the two sides.

 5. Issue of Masood Azhar

India’s bid to get Jaish-e-Mohammad chief Masood Azhar be declared as a UN- designated terrorist has been
blocked by China again and again. In fact, China is the only country in the 15 members UNSC to have opposed to
the ban. China is of the view that India is trying to pursue political gains in the name of counter-terrorism.

Way forward
From the recent incidents, although the possibility of an India-China armed conflict cannot be ruled out, any kind of
military conflict is not in the interest of any country. The need of the hour is realising that our ‘strategic partnership’
could serve us both and help see Asia emerge as the core of world economy. This dream of ‘India-China Millennium
of Exceptional Synergies’ that our Prime Minister envisions, however, needs magnanimity and willingness on part
of both the nations.

India-Pakistan Relations
The India-Pakistan relationship, since the creation of both the nations in 1947 has been rocky,
where the nations have been involved in four wars.
Kashmir has been the bedrock issue between both the nations and has been an unresolved
boundary dispute.
Terrorism, particularly targeting India which is bred on Pakistani soil is yet another major issue
which has mired the relationship.
Despite many positive initiatives taken, the India-Pakistan relationship in recent times has
reached an all-time low with some sore issues sticking out. Here we are analysing the core issues
in the India-Pakistan relationship.

Present Context and the Issues in India-Pakistan Relationship

 With the regime change in India, there was a perception that a hard line and staunch policy
towards Pakistan would be followed. However, the current Prime Minister (PM) of India put
forward the idea of ‘Neighborhood First’, which was particularly aimed at improving relationships
within the Indian Subcontinent.
  There were initiatives taken by the government, for example, inviting the Prime Minister of
Pakistan for the swearing-in ceremony of the new PM of India, an unscheduled visit to Lahore by
the Indian PM to the residence of the PM of Pakistan, which showed some signs of positive
development.
 However, with the attack on the Indian Air Force Base in 2016 (Pathankot)January, just a few
days after Indian PM visited the Pakistani counterpart, events thereafter haven’t been really
encouraging. There has been a complete stoppage of talks at all levels in between the nations.
Speculations, however, run that back-channel talks exist.
 With rising discontent and a volatile situation once again in Kashmir from mid-2016, India has
accused Pakistan of adding fuel to the unrest and glorifying terrorists by declaring them, martyrs.
 Terrorist attacks on security forces since have increased and the attack on the Uri Army base
camp in September 2016, where 19 Indian soldiers were killed, was also carried by an
organization, which has its roots in Pakistan. (Lashkar-e-Toiba, also responsible for 26/11 attacks)
 The case of Kulbushan Jadhav, a retired Indian Naval officer arrested nears the Iran-Pakistan
border in Baluchistan region by the Pakistani establishment and accused of espionage by Pakistan.
 On 14 February 2019, a convoy of vehicles carrying security personnel on the Jammu Srinagar
National Highway was attacked by a vehicle-borne suicide bomber in the Pulwama district of
Jammu and Kashmir. The attack resulted in the deaths of 40 Central Reserve Police Force (CRPF)
personnel and the attacker.

Changing Political Scenario in Pakistan

 For quite a while, the Panama Papers issue was being raked up in Pakistan and the then PM
Nawaz Sharif of Pakistan was alleged to have received unaccounted money from abroad. The
Supreme Court of Pakistan recently disqualified the PM from office, making him the second PM
in the history of Pakistan to be disqualified from office.
 This backdrop comes at a time when the already existing India-Pakistan relations are at a low and
with the disqualified PM being perceived as someone who has always wanted to improve the
relationship with India, it is not good news for India in a way.
 In the ouster, surprisingly, the Pakistani Army has remained silent publicly on the issue.
However, in the Joint Investigation Team created by the Supreme Court of Pakistan, there was the
presence of a Military Intelligence Official and an Inter Services Intelligence (ISI) Official, which
shows that the influence the military establishment still continues to have a stronghold in Pakistan.
 Some people perceive the judgment of the Supreme Court of Pakistan, as being politically
motivated, with some saying there was a judicial overreach by the Court. Also, the court has
directed the National Accountability Bureau to further investigate into cases related to Panama
papers.
 However, there are also reports that the developments are a sort of deepening the roots of
democracy in Pakistan because the due process of law was followed.

Pakistan Politics and the Impact on India-Pakistan relationship

 The disqualified PM was seen as someone who tried to pursue a better relationship with India.
Thus, his ouster can have implications with the incoming new PM of Pakistan.
 This can be a cause of concern because of the background scenario with the relationship between
both countries already fraught and the Pakistan Army indirectly flexing its muscle in the process
of the ouster of the PM. The future thus remains uncertain.
Terrorism and Kashmir – The never-ending issues

 Cross border terrorism has always been an issue.

 Some analysts go to the extent of saying that both nations are always in a perpetual state of war.
 Despite the fact the after the Kargil conflict, there was a Ceasefire Agreement signed in 2003,
there have been regular cross border ceasefire violations from the Pakistan side of the border with
the trend being as such that since 2009 onwards, there has been a rise in the violations (with the
exception of 2014). It has killed and injured security forces as well as civilians on both sides.

 With the regime change in India, there has been a different approach to the violations. With
the hardline policy of the new government, there has been massive retaliation to the unprovoked
firing.
 Thus, out of desperation, there has been a rise in the number of infiltrations of terrorists from
across the Line of Control (LOC), which has been routine for quite a while now.
 With the void in between the Kashmiri people and the establishment increasing after
the devastating floods of 2014, there was rising discontent again in the valley. The trigger to the
events was the killing of the militant commander of the terrorist organization Hizb-ul-
Mujahideen Burhan Wani, which led to widespread protests in the valley and the situation has
been highly volatile ever since with almost daily scenes of protests and stone pelting in the valley.
 Pakistan has taken advantage of the situation and has fuelled the protests by providing the
elements fighting against the Indian establishment and Forces in the state with all sorts of possible
support. The PM of Pakistan, in fact, went a step ahead and during the United Nations General
Assembly meeting of 2016, declared Wani as a martyr and the struggle of the people of
Kashmir as an Intifada.
 This is in sync with the stand Pakistan holds on Kashmir i.e., to internationalize the issue of
Kashmir and asking for holding a plebiscite in Kashmir under Indian administration to decide the
fate of Kashmiri people. The stand has been rejected by India as it says it is in direct violation of
the Shimla Agreement of 1972, which clearly mentions that peaceful resolution to all issues will
be through bilateral approach.
 After the attack at the Pathankot base in 2016 January, there was again a thaw in the relationship,
especially when seen in the context that the Indian PM paid an unscheduled visit to Pakistan to
meet his Pakistani counterpart. With Kashmir already on the boil and Pakistan adding fuel to fire
to the situation, the attack on Uri Army camp in September 2016 in which 19 Indian soldiers were
killed made the Indian PM declare the statement that ‘talks and terrorism’ cannot go hand in
hand.
 This was followed by surgical strikes carried out by the Indian Army across the LOC targeting
the terror infrastructure in Pakistan occupied Kashmir (PoK). They were carried out at the end of
September.
 In a first, India tinkered with the Indus Water Treaty, a Treaty which has stood the test of time
and the bitter sour relationship for more than 55 years and was pondering with the fact to fully
exploit the water potential of the West flowing rivers over which Pakistan has control.
 Thus, the fact trickles down to the point that India has its stand that until Pakistan doesn’t do
enough to tackle the terrorism menace, there can be no talks held in between the nations.
 On the other hand, Pakistan is ready for a dialogue with India but it wants the inclusion and
discussion of the Kashmir issue which it keeps raking up every time.
The Curious Case of Kulbushan Jadhav

 The case of Kulbushan Jadhav, a retired Naval officer arrested nears the Iran-Pakistan border in
Baluchistan region by the Pakistani establishment.
 He has been accused by Pakistan of espionage and spying and has been sentenced to death by a
military court in Pakistan.
 India, on many previous occasions, demanded consular access of Jadhav, a demand consistently
rejected by Pakistan citing national security issues.
 India says that Jadhav was a retired Naval officer who was a businessman working in Iran and
has been falsely framed by the Pakistani establishment.
 As there were repeated denials of the Consular Access, India approached the International
Court of Justice (ICJ) at Hague where it put forward the argument that Vienna Convention was
being violated as the Consular Access was denied.
 The ICJ has asked Pakistan to stay the execution of Jadhav and the matter is sub judice.

Future of India-Pakistan relationship

 India and Pakistan are neighbours. Neighbours can’t be changed. Thus, it is in the better of
interest of both the nations that they bring all the issues on the drawing board and resolve them
amicably.
 India wants Pakistan to act more strongly on the terrorism being sponsored from its soil.
 Also, India wants Pakistan to conclude the trial of 26/11 sooner so that the victims are brought
to justice and the conspirers meted out proper punishment.
 India has genuine concerns, as there are internationally declared terrorists roaming freely in
Pakistan and preaching hate sermons as well as instigating terror attacks.
 With the international community accusing Pakistan of breeding terrorism on its soil, Pakistan
cannot remain in denial state and thus, needs to act tougher on terrorism-related issues.
 In 2018, Imran Khan became the 22nd Prime Minister of Pakistan. PM Imran Khan received a lot
of praise for releasing the IAF pilot Abhinandan who was captured in Pakistan during the counter-
terrorism operations (after the Pulwama attack) in 2019.

India-Pakistan Relations: Positive initiatives which were taken in the past

 Composite Dialogue Framework, which was started from 2004 onwards, excluded, some of the
contentious issues between the two sides had resulted in good progress on a number of issues.
 Delhi-Lahore Bus service was successful in de-escalating tensions for some time.
 Recently, the ‘Ufa ‘Agreement’ was made during the meeting of the National Security Advisors
of both nations at Ufa, Russia.
A couple of important points agreed upon in Ufa were:

1. Early meetings of DG BSF and DG Pakistan Rangers followed by the DGMOs.

2. Discussing ways and means to expedite the Mumbai case trial, including additional information
needed to supplement the trial.
Ufa Agreement has now become a new starting point of any future India-Pakistan dialogue,
which is a major gain for India.
However, despite all the initiatives, there is always a breakdown in talks. Thus, more needs to be
done for developing peaceful relations. With India and Pakistan both being two Nuclear States,
any conflict can lead to a question mark on the existence of the subcontinent as well as the entire
planet, especially with the border being ‘live’ almost all the time.

Benefits, which can be accrued from a good India-Pakistan Relationship

 If there is peace at the border and a solution of Kashmir is arrived upon, then the China Pakistan
Economic Corridor, which is passing through Pakistan Occupied Kashmir (PoK) can certainly
benefit Kashmir, its people and the economy. Kashmir can act as a gateway to Central Asia.
 Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline which originates in Turkmenistan
and passes through Afghanistan, Pakistan before reaching and terminating in India can also get
huge benefits as it can help secure the National Energy needs of both Pakistan and India, which
are potentially growing nations with increasing needs of energy.
 Iran-Pakistan-India pipeline is another project, which is currently stalled. If relations are
cordial, then this pipeline can also supply the energy needs of both nations.
 A stable Afghanistan is in the best interest of both Pakistan as well as India. Terrorism is
affecting both India as well as Pakistan and the porous boundary between Afghanistan and
Pakistan provides a safe haven for terrorists. Also, a better relationship with Pakistan can
give direct road access to Afghanistan. Currently, India has to go via Iran to Afghanistan to
send any trade goods and vice versa.
 South Asian Association for Regional Cooperation (SAARC) and the initiatives taken by the
association will start to hold more relevance as the same hasn’t lived up to its expected potential
as the elephant in the room during any summit is sour in the India-Pakistan relationship.
Hindu ruler Hari Singh tried to negotiate with India & Pak to have an independent status for his state. Since majority
population of the state was Muslim, the Pakistan thought Kashmir ‘belonged‘ to them.
On 15th August Harisingh offered standstill agreement with both countries which allowed the free movement of
people & goods. Pakistan signed the agreement but India didn’t. Pakistan became impatient & started violating
standstill agreement.  24th October Hari Singh demanded military assistance from India. Mountbatten pointed out
that under international law India can send its troops only after state signs a formal instrument of accession – on
26thOct Maharaja signed instrument of accession – ratified in 1954.
On 27th Oct. morning nearly 100 planes airlifted men and weapons to Srinagar. Pakistan army left the main valley
region but continue to occupy a large chunk of territory of Gilgit, Baltistan region – Pak occupied Kashmir.

At the same time India lodged complaint against Pakistan for their illegal actions in UN. Instead of getting justice at
UN, Western powers backed Pakistan. India also accepted UN resolution on ceasefire in spite of its advantageous
position and agreed for plebiscite in Kashmir, which laid down two conditions for holding plebiscite –

 Pak should withdraw its forces from the state of J&K

 The authority of the Srinagar administration should be restored over the whole state
 Above mentioned first conditions was never fulfilled, so there was no plebiscite there.
 Meanwhile J&K participated in India’s general elections and then the talk of plebiscite remained irrelevant.

Kashmir conflict didn’t prevent cooperation between governments of India & Pak. Both the governments worked
together to restore the abducted women to their original families, a long term dispute of river water sharing was
resolved – with world Bank’s mediation and India-Pakistan Indus Water Treaty was signed by Nehru and General
Ayub Khan in 1960.

India Pakistan Wars

1965 India Pakistan War 
 Pakistan launched armed attacks in the Rann of Kutch area of Gujarat, later it launched bigger offensive in
J & K in 1965.
 Pakistan thought that this time the local population would support the cause of Pakistan, but nothing of this
sort happened.
 Meanwhile, in order to ease the pressure from Kashmir front, Shastri ordered Indian troops to launch
counter offensive on the Punjab border.
 War was won by India, and the hostilities came to an end with UN intervention.
 

Due to the mediation of Soviet Union, Both the countries signed the Tashkent Agreement [Shastri from India &
General Ayub Khan from Pak] in January 1966. Although India won the war, this war added India the economic
difficulties.

1971  India Pakistan War 

The internal crisis of Pakistan after the verdict of their general elections turned violent. Ruling party of Zulfikar
Bhutto emerged as winner in West Pakistan while in Eastern Part Rahman’s Awani League won with great margins.
However, strong and powerful western establishment ignored the democratic verdict and didn’t accept the League’s
demand for federation. Instead of responding to their demands and verdict positively, Pak army arrested Rahman
and unleashed brutal terror activities and suppressed their voices.

 To end this menace permanently, people of Eastern Pak started liberation struggle of Bangladesh from Pak.
 Due to the huge influence of refugees from Eastern Pak, India deliberated much and later extended its
support to people’s cause materially and morally, which was frowned by Western Pak as Indian conspiracy to
break of Pakistan.
 The support to Western Pak came from the USA & China to quash the people’s movement.
 To ensure its safety from the attacks of American and Chinese backed Pak, India signed 20 year Treaty of
Peace and Friendship with the Soviet Union.
 Even after much diplomatic deliberations no concrete results could be achieved, and full scale war broke
out in 1971 on both the western and Eastern front.
 With the support of local population in the form of “Mukti Bahini” Indian army made rapid progress and
compelled the Pakistani troops to surrender in 10 days only.
 

With emergence of Bangladesh as an independent country, India declared a unilateral ceasefire. Later Shimla
Agreement of 1972 between Indira Gandhi & Zulfikar Bhutto brought back the peace between two nations.

Kargil War 
After the debacle of 1971 war, Pak army never tried to fight with Indian army directly & started the proxy war by
sending the terrorists trained by their secret agencies to create havoc and panic in J & K and India.

 In 1999, so called Mujahideens occupied several points on the Indian side of LOC in the Mashkoh, Dras,
Kaksar, Batalik.
 Suspecting Pak’s hand behind such activities, Indian forces immediately started retaliating to such proxy
war which is known as “Kargil conflict”.
 This conflict got worldwide attention because of the nuclear capabilities attained by these countries in
1998, which could be used by either side, however nuclear weapons were not used in war, and Indian troops
regained their points.
 
There was huge controversy surrounding this Kargil conflict, that, the then PM of Pak was kept in the dark of such
move. Later, the then Pak army Chief General Parvez Musharraf took over as its President.

International Court of Justice stayed the execution of Kulbhushan Jadhav, who was sentenced to death by a Pakistan
military court on the charge of spying. The Court said that India should have been granted consular access to
Kulbhushan Jadhav as per the Vienna Convention.

India accused Pakistan of violating the Vienna Convention and conducting a “farcical trial” for convicting Jadhav
without a “shred of evidence.

Sir Creek Dispute

 Sir Creek is a 96 km tidal estuary on the border of India and Pakistan which opens up into the Arabian Sea,
& divides Gujarat state of India from Sindh province of Pakistan.
 Pakistan claims the entire Sir Creek, with its eastern bank defined by a “green line” and represented on a
1914 map belongs to it.  Accepting Pakistan’s premise on the “green line” would mean loss of about 250 square
miles of EEZ for India.
 India supports its stance by citing the Thalweg doctrine in international law. The law states that river
boundaries between two states may be, if the two states agree, divided by the mid-channel, also shown on a map
dated 1925.
 Though Pakistan does not dispute the 1925 map, it maintains that the doctrine is not applicable in this case
as it most commonly applies to non-tidal rivers, and Sir Creek is a tidal estuary.

Sir Creek itself has little value. It is a marshy wasteland. But where the boundary line runs through it will determine
how much Exclusive Economic Zone (EEZ) one country will lose or gain. Much of the region is rich in oil and gas
below the sea bed, and control over the creek would have a huge bearing on the energy potential of each nation.

Challenges due to non- resolution of Sir Creek Issue 

 Due to lack of proper maritime boundary, inadvertent crossing over of fishermen of both nations
 Main route to smuggle drugs, arms and petroleum product to India – exploited by drug syndicate
 Terrorists are using disputed area to cross over Indian side. In 26/11 terror attack, terrorists captured an
Indian fishing vessel, Kuber, off Sir Creek, and used it to attack Mumbai.
Way Forward – Designating the non-delineated area-Sir Creek and its approaches-as a zone of disengagement or a
jointly administered maritime park

Siachen Dispute
Siachen is a triangular bit of land between Pakistan occupied Kashmir and the part ceded by Pakistan to the Chinese,
which has the dubious distinction of being the world’s highest battlefield.

 The Siachen dispute is a direct result of the ambiguity that exists in the Karachi ceasefire agreement of July
1949. The agreement, which established the ceasefire line, the positions of the two militaries at the end of the
1947-1948 war, did not delineate beyond grid reference NJ 9842, which falls south of the Siachen glacier, to the
Chinese border but left it as “Chalunka (on the Shyok River), Khor, thence North to the glaciers”.
 Indian and Pakistani sides have since interpreted the phrase “thence North to the glaciers” very differently.
 Pakistan argues that this means that the  line should go from NJ 9842 straight to the Karakoram pass on the
Sino-Indian border.
 India, however, insists that the line should proceed north from NJ 9842 along the Saltoro range to the
border with China.

 Siachen sits at a very strategic location with Pakistan on the left and China on the right. So Pakistan re-
interpreted it as North-Eastwards to claim the area beyond the Saltoro Ridge and beyond Siachen as its own.
 This would give Pakistan direct connectivity to China as well as a strategic oversight over the Ladakh
region and on to the crucial Leh-Srinagar highway posing a serious threat to India.
 In 1983, Pakistani generals decided to stake their claim through troop deployments to the Siachen glacier.
To pre-empt Pakistan, India launched Operation Meghdoot in April 1984 and occupied the high points of the
glacier.
Cost of military deployment in such inhospitable territory
 According to reliable estimates, over 2,000 soldiers from both sides have died on the Siachen glacier since
1984, when India beat Pakistan by a few days to occupy many of the strategic locations on the glacier.
 It is not just avalanches; the challenging terrain of the glacier and its surroundings as a whole have been
regularly claiming lives.
 Ever since the two militaries began a costly engagement on the glacier, there have been numerous efforts
by both countries to find a way to demilitarise the glacier, but a result has yet to be seen in actual.
 

Indus Waters Treaty

The Indus Waters Treaty, brokered by World Bank, was signed by the then-Indian Prime Minister Jawaharlal Nehru
and Pakistani President Ayub Khan in 1960.

 It administers how Indus River and its tributaries would be utilized.

 India governs Beas, Ravi, and Sutlej; Pakistan governs Indus, Chenab, and Jhelum.
 However, India is allowed to use 20% of Indus water for irrigation, power-generation, and transportation.
 Exchange of information about the rivers through Permanent Indus Commission – comprising of
representatives from bothIndia and Pakistan
 Disputes have to be referred to seven member arbitral tribunal called “Court of Arbitration”.
 

Drawbacks of Indus Water Treaty 

 Division of water during the shortage of river water flow
 The impact of storage of water on the Chenab river on Pakistan
 Treaty is criticised being highly technical which leads to far ranging interpretations
 The political situation between India and Pakistan is affecting the performance of treaty.
 

Way forward
 To resolve the water dispute political will from both the countries is important.
 The Technical aspects of the treaty should be answered through bilateral meetings and discussion involving
experts from both the countries.
 The global warming and climate change is melting the glaciers Tibetan Plateau which will impact Indus
river water system in future. Therefore both the countries should aim to reduce water wastage and develop
sustainable river development plans.
 

Kulbhusan Jhadav Case

Kulbushan Jadhav was allegedly arrested in the Chaman area of Balochistan on the Pakistan- Afghanistan border.
India denied that he had any links to its government but said that he was running a business in the Iranian port city
of Chabahar after a “premature retirement” from the Navy.

India believed that Kulbhushan Jadhav was kidnapped from Iran and his subsequent presence in Pakistan has never
been explained credibly. Kulbhushan Jadhav was sentenced to death in a Field General Court Martial after he was
found guilty on charges of espionage.

India had dragged Pakistan to the International Court of Justice (ICJ) for refusing consular access to Jadhav and for
violating the Vienna Convention on consular relations. India accused Pakistan of violating the Vienna Convention
and conducting a “farcical trial” for convicting Jadhav without a “shred of evidence”.

India’s argument at ICJ 

 Kulbhushan Jadhav has not got the right to get proper legal assistance and the right to consular access.
 The execution of the death sentence cannot be done while this court is hearing the appeal. Else, it will be a
violation of the Vienna Convention.
 Jadhav was kidnapped from Iran where he was involved in business activities after retiring from the Indian
Navy.
 

Pakistan’s argument at the ICJ

 There is no “urgency” in this case as the date on which Jadhav will be executed has not yet been fixed;
 Pakistan argued that Vienna Convention provisions not intended to apply to a ‘spy’ involved in terror
activities.
 

India has achieved its immediate objective in approaching the ICJ i.e. to ensure that Mr. Jadhav is not executed
pending adjudication of the matter. As an immediate consequence, Pakistan is now under an obligation to grant
consular access to Mr. Jadhav. However, this is a preliminary ruling and all issues are open for adjudication at the
final stage.

INDIA-SAARC RELATION
 An economic & geopolitical organization of 8 countries that are primarily located in South Asia
 Established in 1985; Secretariat – Kathmandu, Nepal; Official language – English
 Members – India, Pakistan, Bangladesh, Nepal, Bhutan, Srilanka, Maldives, Afghanistan
 1st summit at Dhaka, only 1 new member added since birth i.e. Afghanistan
 

 19th SAARC submit → Pakistan + Cultural Capital → Bamyan (Afganistan)

Evolutuion of SAARC
 The idea of regional political and economic cooperation in South Asia was first raised in 1980 and the first
summit was held in Dhakaon 8 December 1985, when the organization was established by the governments
of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
 Since then organization has expanded by accepting one new full member, Afghanistan, and several
observer members.
 The official meetings of the leaders of each nation are held annually whilst the foreign ministers meet twice
annually.
 

SAARC Objectives
 SAARC policies aim to promote welfare economics, collective self-reliance among the countries of South
Asia, and to accelerate socio-cultural development in the region
 To promote the welfare of the people of South Asia and to improve their quality of life
 To cooperate with international and regional organizations with similar aims and purposes
 To promote active collaboration and mutual assistance in the economic, social, cultural, technical and
scientific fields
 To contribute to mutual trust, understanding and appreciation of one another’s problems; & to maintain
peace in the region
 

Developments in SAARC 
 South Asian Free Trade Area (SAFTA) – to reduce customs duties of all traded goods to zero by the year
2016
 Visa Exemption Scheme – certain categories of dignitaries should be entitled to a Special Travel document,
which would exempt them from visas within the region
 Regional Railways Agreement
 Motor Vehicles Agreement
 Framework Agreement for Energy Cooperation (Electricity)
 SAARC Region Satellite launch plan

South Asian Free Trade Area (SAFTA)

The Agreement on SAARC Preferential trading Arrangement (SAPTA) was signed on 11 April 1993 and entered
into force on 7 December 1995, with the desire of the Member States of SAARC (India, Pakistan, Nepal, Sri
Lanka, Bangladesh, Bhutan and the Maldives) to promote and sustain mutual trade and economic cooperation within
the SAARC region through the exchange of concessions.
 The South Asian Free Trade Area (SAFTA) is an agreement reached on 6 January 2004 at the 12th SAARC
summit in Islamabad, Pakistan.
 It created a free trade area of 1.8 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan and Sri Lanka
 The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs
duties of all traded goods to zero by the year 2016.
 The SAFTA agreement came into force on 1 January 2006 and is operational following the ratification of
the agreement by the seven governments.
 

SAARC Visa Exemption Scheme

 SAARC Visa Exemption Scheme was launched in 1992 to allow certain categories of dignitaries to a
Special Travel document, which would exempt them from visas within the region.
 Currently the list included 24 categories of entitled persons, which include Dignitaries, Judges of higher
courts, Parliamentarians, Senior Officials, Businessmen, Journalists, Sportsmen etc.
 The Visa Stickers are issued by the respective Member States to the entitled categories of that particular
country.
 The validity of the Visa Sticker is generally for one year.
 The implementation is reviewed regularly by the Immigration Authorities of SAARC Member States.
 

The development potential of SAARC has been hindered by various factors viz.
 India Pakistan bilateral issue
 India’s bilateral issue with other countries like Sri Lanka, Bangladesh
 Trust deficit between India and its neighboring countries
 Cross border Terrorism
 Political instability in the Pakistan, Afghanistan and Maldives
 Low Human development Index and resource problems in the region
 Persistent problems of population, poverty, illiteracy, climate change, health, terrorism, flood and droughts

The idea of regional cooperation in South Asia was first mooted in May 1980. The Foreign Secretaries of
the seven countries met for the first time in Colombo in April 1981. The Committee of the Whole, which
met in Colombo in August 1981, identified five broad areas for regional cooperation. New areas of
cooperation were added in the following years. The South Asian Association for Regional Cooperation
was set up when its Charter was formally adopted on 8 December 1985 by the Heads of State or
Government of India, Bangladesh, Maldives, Bhutan, Nepal, Sri Lanka and Pakistan. The organisation
offers an arena for the peoples of South Asia to work with one another in a spirit of friendship, trust and
understanding. Its objective is to advance the welfare of the people of the region, to enhance the quality
of life via faster economic growth, cultural development and social progress. In SAARC, cooperation is
based on respect for the principles of sovereign equality, political independence, territorial integrity,
mutual benefit and non-interference in the internal affairs of the member states. Regional cooperation is
seen as a complement to the bilateral and multilateral relations of SAARC Member States. 
Decisions are taken on the basis of unanimity. Disputable and bilateral issues are not taken up for
discussions in SAARC. Before the first summit was held at Dhaka, Bangladesh, preparatory meetings
were conducted. In 1981, Colombo, the foreign secretaries of the nations met. The foreign ministers met
in New Delhi in 1983 and identified areas for cooperation.

Objectives of SAARC
The areas of cooperation under the reconstituted Regional Integrated Programme of Action which is
pursued through the Technical Committees now cover the following:

1. Agriculture and Rural Development

2. Women, Youth and Children
3. Health and Population Activities
4. Science and Technology and Meteorology
5. Environment and Forestry
6. Human Resource Development, and
7. Transport
Working Groups have also been established in the following areas:

1. Biotechnology
2. Information and Communications Technology
3. Intellectual Property Rights
4. Energy
5. Tourism
The highest authority in the SAARC are the summits and they are held yearly once. The Chair of the
Association would be the host country where the summit is held in a particular year. The Council of
Ministers comprises of the foreign ministers and they meet generally two times annually. 
Functions of the Council of Ministers

1. Policy formulation
2. Reviewing the progress of regional cooperation
3. Identifying newer areas of cooperation, and
4. Setting up additional mechanisms as required
The Standing Committee is composed of the foreign secretaries. It monitors and coordinates the
programmes of cooperation, approves various projects including their funds, and gathers regional as well
as external resources. This committee meets as and when required and reports to the Council of
Ministers. SAARC also calls for meetings at the ministerial level on special issues or themes. There is
also a Committee on Economic Cooperation which comprises of the Secretaries of Commerce. This
Committee supervises regional cooperation in the economic domain.
 
SAARC Regional Centres
The SAARC Secretariat is supported by Regional Centres established in Member Countries to promote
regional cooperation. These Centres are managed by Governing Boards comprising representatives from
Member States, SAARC Secretary-General and the Ministry of Foreign/External Affairs of the host
government. The Director of the Centre acts as Member Secretary to the Governing Board which reports
to the Standing Committee.
Prime Minister Narendra Modi’s invitation of SAARC leaders for his swearing ceremony and bilateral
meetings with each of its leaders was unprecedented. The act not only highlighted the importance of
SAARC for regional co-operation, but also portrayed India as the Big Brother in the group. Having said
that, India is not devoid of bilateral issues with her neighbors. There are matters of conflict and mutual
interest between neighbors, and it is essential to know the major areas in bilateral relations. Though the
meetings on May 27, 2014 was more or less courtesy meetings after the swearing ceremony, we have
certain takeaways from them. Let’s have a quick look at the important areas discussed by our PM with the
SAARC leaders.
About SAARC
The South Asian Association for Regional Cooperation (SAARC) is an economic and geopolitical
cooperation among eight member nations that are primarily located in South Asia continent. Eight
member countries include Afghanistan,Bangladesh, Bhutan,India, Maldives, Nepal, Pakistan, and Sri
Lanka. Its secretariat is headquartered in Kathmandu, Nepal.

India – Afghanistan : Highlights

 In his meeting with President Karzai of Afghanistan, PM thanked Afghanistan for the assistance
provided by the Afghan National Security Forces in repelling the attack on our Consulate in Herat.
He said that the attack only strengthened our resolve to work together with Afghanistan.
 He reiterated India’s commitment to the development and reconstruction of Afghanistan and
India’s interest in seeing a prosperous, independent and sovereign Afghanistan where the
reconciliation process would be Afghan-led, Afghan-owned, and Afghan-controlled.

India – Bhutan : Highlights

 In his meeting with Prime Minister Tshering Tobgay of Bhutan, PM conveyed his warm greetings
and respects to His Majesty the King of Bhutan. He noted that India and Bhutan share a unique
and special relationship with longstanding historical and cultural linkages.
 He assured PM Tobgay of India’s unflinching support for Bhutan’s socioeconomic development.
 The two Prime Ministers agreed to commence four new joint venture hydroelectric projects with a
generating capacity of 2120 MW in Bhutan.
 They affirmed their mutual security interests and agreed to closely coordinate and cooperate on
issues relating to their national interest.

India – Maldives : Highlights

 Prime Minister conveyed to President Abdulla Yameen of Maldives the high importance attached
by India to its relations with the Maldives, and pledged to work towards further enhancing bilateral
cooperation.
 Prime Minister noted that the two countries had a shared recognition that the security interests of
both countries were interlinked, and agreed that each side would continue to be sensitive to the
concerns of the other on the issue, and that their respective territories would not be allowed to be
used by any quarter for any activity inimical to the other.
 It was agreed to take measures to further strengthen investment and trade cooperation as well as
cooperation in projects that would strengthen regional and sub-regional transport and connectivity
to mutual advantage.
 Prime Minister expressed government’s support to cooperation in the petroleum and natural gas
sector particularly in oil exploration as well as in the tourism and educational sectors.

India – Nepal : Highlights

 In his meeting with Prime Minister Sushil Koirala of Nepal, PM noted that Nepal was an old and
deeply valued friend with whom India shared history, geography and ancient civilisational ties, and
it was his earnest desire to visit Nepal this year.
 Prime Minister expressed his appreciation for the political progress achieved in Nepal and
conveyed his sincere hope that the Constitution would be adopted in the one-year timeframe that
Nepal had set for itself.
  He expressed his determination to further strengthen connectivity and economic inter-linkages
between India and Nepal, including through projects for rail and road connectivity. PM stressed
the importance of expediting implementation of these projects and particularly projects in the
hydropower and transmission sectors.
 He thanked Nepal for the ongoing security cooperation between law enforcement agencies on
both sides which both sides are resolved to strengthen even further.

India – Sri Lanka : Highlights

 In his meeting with President Mahinda Rajapaksa of Sri Lanka, PM noted that India valued its
relations with Sri Lanka.
 He requested the government of Sri Lanka to expedite the process of national reconciliation in a
manner that meets the aspirations of the Tamil community for a life of equality, justice, peace and
dignity in a united Sri Lanka. Early and full implementation of the Thirteenth Amendment and
going beyond would contribute to this process.
 They also discussed the fishermen’s issue, India’s development assistance programme, and
economic and commercial cooperation.
 In particular, PM expressed interest in early launch of the 500 MW Sampur Coal Power project
and greater connectivity between the two countries.
 Both leaders reiterated their desire to further strengthen bilateral relations.

India – Pakistan : Highlights

 In the meeting with Prime Minister Nawaz Sharif of Pakistan, PM underlined our concerns relating
to terrorism.
 It was conveyed that Pakistan must abide by its commitment to prevent its territory and territory
under its control from being used for terrorism against India.
 We also expect that necessary steps will be taken in the Mumbai terror attack trial underway in
Pakistan to ensure speedy progress of the case and the conviction of those responsible.
 The PMs agreed that the Foreign Secretaries will remain in touch and explore how to move
forward.
 PM said that the two countries could move immediately towards full trade normalisation on the
basis of the September 2012 roadmap.
 PM expressed his hope that India-Pakistan relations would progress in the economic, cultural and
political fields in the same manner that India’s relations with her other SAARC neighbours have
progressed in recent years.
 He shared his vision of a SAARC region built on partnerships for development and mutual
prosperity.

India – Bangladesh : Highlights

 Prime Minister requested Speaker of Bangladesh Parliament Dr. Shirin Sharmin Chaudhury to
convey his warm greetings and best wishes to Prime Minister Sheikh Hasina of Bangladesh, and
said that he looked forward to receiving her in India at an early date.
 He recalled our strong relations rooted in shared struggle, history, culture and language.
 He noted that we have shared stakes in each other’s progress and prosperity and Bangladesh
was India’s largest trading partner in SAARC.
 He appreciated the cooperation extended by Bangladesh to work together with India in all areas
of mutual interest including security, power, border management, rail and road transport.
  He expressed the commitment of Government of India in maintaining and building upon the
momentum that has characterised India-Bangladesh relations in recent years.

India – Mauritius : Highlights [Outside SAARC]

 Prime Minister has called the special and unique relationship between India and Mauritius in his
meeting with Prime Minister Dr. Navinchandra Ramgoolam of Mauritius.
 He noted that the two countries are bound together by history, common ancestry and kinship of
their people.
 Both leaders agreed to further strengthen the relationship, especially economic cooperation and
interactions in the field of maritime security, renewable energy, and the blue-economy, including
development of related infrastructure.
 They also agreed to work together with all other member countries in further strengthening the
Indian Ocean Rim Association.

Facts:
 India’s financial assistance to SAARC neighbours declined considerably in the past five years.
 The one exception was the Maldives, to which Indian assistance has been consistently increasing year on
year since 2013, despite the dip in bilateral ties.

Reason for decline in financial assistance:

 In Afghanistan, India has shifted to work on small development projects (SDPs) rather than the ambitious
highways, dams and big building projects that were started in 2008-09.
 In Bangladesh, the main grant for land acquisition for the Akhaura-Agartala rail “last link” project has now
been completed.
 In Bhutan, which has always received the largest share of Indian assistance, the assistance required for
major hydroelectric power plants like Punatsanghchu 1 and 2 and Mangdechu has been disbursed 75-90% while
Indian assistance to Bhutan’s 11th five-year plan (2013-2017) has been handed over nearly fully.
 In Sri Lanka, the decline was explained by delays in land acquisition for 15,000 homes to be built by India
in the plantation areas, though the work on 45,000 homes in the north and east of the island has been completed.
 India is still completing three main projects in Maldives: a police academy, a coastal radar project, and the
refit of MNDF ship Huravee.
 An offer to build a new Defence Ministry building is pending, which explains why the Maldives alone is
the outlier to an otherwise declining trend in neighbourhood aid.
 
Important development:
 India will not take part in SAARC summit in Islamabad due to continuous cross border terrorism
 Afghanistan, Bangladesh and Bhutan also declared their reluctance to attend the meeting
 Nepal blockage (Due to new constitution; By Madhesis) is not in the spirit of regional cooperation
 
Comparison of SAARC vis-a-vis NAFTA
 Level of development in both the regional groupings are very different.
 In 1990 – Per capita GDP of US was 10 times that of Mexico
 In South Asia difference is not that much
 NAFTA was created by Mexico looking to use USA as an anchor economy, India is not seen as that anchor
 In NAFTA, Mexico got certainty of access to the US markets in return of liberalising economy
considerably. Situation in south Asia is different
 There was no competition for USA in NAFTA to act as anchor. In South Asia  China is seen as an
alternative
 
Two Problems in South Asian economic Integration:
1. External Politics
2. Domestic political ramifications of opening markets to neighbours
  
 
SAARC without Pakistan
 Ever since it was launched in Dhaka with its first meeting  in 1985, the platform has been hijacked by the
India-Pakistan rivalry. 
 It was a multilateral platform with a bilateral agenda.
 Given Pakistan’s opposition of any Indian initiative, the grouping  never really achieved more than rhetoric
 Examples:
 Prime Minister  Narendra Modi offered to build a SAARC Satellite, a gift from India which would
serve all the countries of the group. Pakistan was the only country that declined.  Eventually, India decided to go
ahead with the project and declared it as a South Asia satellite instead.
 Attempts were made to sign a  treaty which would ease train and road transhipment among
member nations in 2014. Pakistan opposed it and BBIN was signed instead.
 Positives of SAARC – Pakistan
 Pakistan anyways didn’t cooperated in SAARC. It only created obstacles.
 Discussions can now become more multilateral rather than being focused on Indo-Pak rivalry
 Negatives of SAARC – Pakistan
 Victim card will be played by Pakistan. It will say that India is using its economic power and size
to isolate Pakistan in the region
 Afghanistan will be at a loss as all routes go through Pakistan
 SAARC may become defunct altogether as BIMSTEC will become more relevant. Work done for
decades in SAARC will become futile.
 
 
Analyse with suitable examples why maintaining friendly relationship with its South Asian neighbors will be
good for Indian economy. (200 Words)
 “One can choose friends but not neighbors”
 
India with its long history had problems with many of its South Asian neighbors. For any country to continue their
journey towards growth contentious relations and hatred from neighbors will be a thorn in their progress and India is
no exception.
 
1. Maintaining peaceful relation with Pakistan is utmost important in-order to focus on development,
otherwise India cannot fulfil its aspirations to be one of largest economies. Untapped economy of Pakistan can be a
resource for trade and commerce.
2. Shared porous border with Bhutan and Nepal are important for cultural ties, better economic integration,
exchange of benefits like power, growing together peacefully.
3. The ethnic ties is a parallel string of connection along with Palk strait with Sri Lanka, economic
development of Tamil fishermen contribution to country, exchange of Buddhist cultural values will promote peace
in India especially Southern State of Tamil Nadu which is important for country’s holistic development.
4. Development of Afghanistan is in the interest of India for peace in the region from problems of terrorism
and Afghanistan economy can be a better bet for Indian businesses to spread their presence.
5. The island nation of Maldives with Indian diaspora is a contribution in itself and growing ties will
encourage the trade, tourism of both.
 
South Asian neighbors are a valuable resource for economic integration of India and
they can benefit immensely with their growing population and needs. The problems of terrorism, border disputes,
tax issues if solved then these nations will add to Indian economy growth
 
 
Critically discuss the efforts made by SAARC countries to forge a strong social and economic integration
between their people and the challenges they are facing in this pursuit. (200 Words)
 
 SAARC(est 1985) is a regional grouping of 8 South Asian countries. They have inherent positives like similar
historical context, topographical and demo-graphical features, natural resource endowments and social cultural
ethos. SAARC has taken many initiatives for the economic and social integration of the region such as –
1. SAFTA, SAPTA and SATIS – These initiatives are aimed at regional economic integration in terms of
goods and services trade.
2. SAARC Motor Vehicle Pact – It will help enable seamless transit for the passenger and cargo vehicles
among BBIN member countries(as Pakistan has opposed it)
3. Concept of SAARC satellite and SAARC university for social and economic integration
4. Hydro power generation and power trade agreement between member nations like Bhutan, Nepal and India.
Proposal for a regional electricity grid.
5. Setting up SAARC development goals on line of MDGs to alleviate poverty
6. SAARC development fund, SAARC food bank
7. SAARC youth festivals and most important of all SAARC people’s meet.
8. Declaration of 2016 year as SAARC year of cultural heritage and decade 2010-2020 as year of
intraregional connectivity.
9. Besides, SAARC countries are engaged in various bilateral and sub-regional agreements to make-up for
lack of progress, if any, at the regional level.
10. Bangladesh, Bhutan, India and Nepal (BBIN) formed a South Asian Growth Quadrangle aimed at
boosting co-operation in energy and power, environment, trade and investment etc. This was later joined by
Maldives and Sri Lanka.
 
Having said that, this region has several issues like-
1. In built contradictions – They are w.r.t population size, military strength, GNP, area etc. of member
countries
2. Varied security/threat perception- Smaller countries look towards extra regional powers to offset it
3. Unscientific and illogical partition by colonial power- This has left the region suffering from many
boundary ,both land and maritime, issues
4. Diverse political culture- Different countries have varied political systems like democracy, military dictator
ship, presidential and monarchy form of govt., creating hurdles in aligning the ideology.
5. Indo -Pak conflict – Two of the biggest powers have fought 3 wars since 1947 and harbour utter distrust for
each-other and even led to nuclearization of the region.
6. Increased Chinese influence in the region
7. Widespread socio-economic problems- hunger, terrorism, ethnic rivalries, political turmoil, leadership
crisis.
8. Negative List on Import items de incentives trade and its growth.
 
SAARC countries would do well to build on their natural strengths and resolving issues mutually to help the region
prosper for the betterment of their people.
 
 
Examine how the South Asian Free Trade Area (SAFTA) Agreement has impacted India. (200 Words)
 
India is poised to become an economic powerhouse. This can’t be done in isolation from other economies. FTA is an
avenue where India can achieve economic and trade integration with her partners.
 
India currently has FTAs with ASEAN, Korea, Japan, Malaysia, Singapore, Sri Lanka and Thailand. FTAs can be
formulated to mutually benefit partner countries by abolishing tariffs on movement of goods and services.
 
Specific goods and services can be open for FTA and others might be kept out of its purview. SAFTA is an FTA
between all the South Asian countries.
 
Though it’s a FTA it keeps essential commodities like agricultural produce, automobiles etc. out of its scope. Thus
SAFTA is a weak FTA and hasn’t achieved economic integration at all. This is mostly due to India’s geographical
and economic size which might be intimidating to non-exporting countries.
 
A large negative list is maintained by countries like Pakistan to protect their domestic markets.
 
As a result south Asia is one of the weakest economically integrated regions of the world. Over 40% of EU trade
happens within EU while it is less than 5% for South Asia. SAFTA thus hasn’t affected India’s economy the way it
could.
 
But, it has enhanced the status of India of non-reciprocity in behaviour among neighbouring countries and has paved
the way for better regional integration among SAARC nation.  Further it has also provided boost to its Act East
policy, since it paves way for increasing economic growth of North-east region.