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Editor’s Desk India’s fast rising global prominence in recent times is a reflection of its successful foreign policy and economic performance in a changing world order in spite of so many challenges that it had to pass through. The new foreign secretary Ms. Nirupama Rao while assuming charge in the MEA described succinctly, “Today in a rapidly evolving world situation, the task is to further augment our diplomatic and professional capabilities as we are called upon to play an even more prominent role in world affairs. This will be an important area of focus in my new responsibilities. The foreign policy interests of our nation encompass a number of areas, which are both regional and global, and which concern relations with our neighbours and the world beyond.” A pragmatist Rao says, “Economic diplomacy and public diplomacy are also issues that demand increased attention.” As the early months of the new US president Barack Obama’s Administration grappled with the economic crisis, planned troops withdrawal from Iraq, implementation of a new strategy towards Afghanistan and Pakistan and the need for altering the image of the US in the Islamic world, Indian policymakers were anxiously awaiting to explore how the new US president would shape up the Indo-US relations. An academician in this issue says, “After months of near marginalization of India, the Obama Administration sprang a pleasant surprise by sending Secretary of State Hillary Clinton to India on a five days visit in July 2009.” The significance of Hillary visit was that never before a US Secretary of State came to our country for such a long duration of time and met with such vast cross sections of people. Besides, Hillary also dispelling anxieties in certain quarters regarding softpedalling of the 123 agreement said that the US was very much interested in timely implementation of the Indo-US nuclear deal. Another landmark of Indo-US relations under the new Obama Administration is the bilateral summit at Washington when our PM Dr. Manmohan Singh was invited by the US president Barack Obama, as the first State Guest of his Administration. India’s association with the SCO and BRIC initiatives augurs well for both India and China as China occupies a central role in both these organizations. Both India and China are engaged in common multilateral settings and despite occasional irritants, continue to co-operate multilaterally as the recent experiences go. An analyst in the following pages says that the major events in India-China bilateral ties exemplify the vacillation between ‘incremental engagement’ and threat perception that as come to characterize the relations between the two countries. As a confidence building masure, India and China also took a major decision to set up a hotline between PM Dr. Singh and Wen Jiabao. At the ministerial level, India now has a hotline only with Russia while China has a functional hotline with the US. Another significant event was that Indian the Commerce Minister Anand Sharma and his Korean counterpart Kim Jong-Hoon signed a deal with the South Korea’s Minister of Foreign Affairs and Trade after three years of negotiations. The deal will eliminate or reduce import duties on 85 per cent of Korean export and 90 per cent of India’s overseas sales by 2019. The agreement would help Indo-South Korean bilateral trade reach $ 20 billion in next five years. This year also witnessed a major step forward in strengthening Indo-Russia ties as both the countries sealed a breakthrough long-term pact for expanding civil nuclear co-operation without any restrictions or strings on India, guaranteeing it against any curb in the future. This nuclear pact with Russia goes far beyond the bounds of the 123 agreement with the US which stipulates for the termination of ongoing nuclear co-operation and for the return to the US of equipment and fuel already supplied to India in the case of nuclear agreement being terminated. India and Russia also signed an agreement on the price to be paid for refurbishing the aircraft carrier Admiral Gorshkov (renamed as INS Vikramaditya). There were some indications that a ‘comfortable’ price was arrived at by both the parties which could be between $ 2.2 billion and $ 2.9 billion, but the final price was not yet reported till we go to the press. This price was the bone of contention for nearly five years between both countries. New Delhi G. Kishore Babu Nov-Dec 2009 Editor

In search of a role: India in Global Affairs

Pinaki Bhattacharya

 

The current capitalist economic crisis is reshaping the world and its structures built after World War II. Not many can predict how the forces of change would act and what they would unleash. Gazing at the crystal ball has become a hazardous exercise.

But a few things are clear. The diminution in US power has ensured that the world will no longer be led unilaterally by a superpower. It in turn is causing fundamental realignment in the major power compact of the existing world. They are under intense pressure to democratise, to provide more liberty to less powerful states, and they are being made to listen to the greater world.

In this light these are times of opportunity for a country like India. As an advanced developing country, it is being accorded more strategic space in global terms. If India was an observer country at the high table of G-8 industrialised countries, in the changed new reality the G-8 itself has become ineffective. So with the birth of G-20 India has an expanded role to play.

As even the existing political institutions prove inept in managing the global transformation, there would be greater demands for change at institutions like the United Nations. India would have a prime place in leading role in that change.

 

Indo-US Relations under Obama Administration

Prof. Chintamani Mahapatra

While Condoleezza Rice characterized India as an emerging global power, Hillary Clinton engaged India as one of the major global powers. This recognition and the intention to engage India in a strategic dialogue make it evident that the bilateral relationship returned to the right track

It is noteworthy that one of the most remarkable developments in the relations between India and the United States from the very beginning of the 21st century is increasing defense and security cooperation.  For decades after independence, India was not able to forge security cooperation with the United States partly because of its nonalignment policy and partly because of Cold War considerations.

The disintegration of the Soviet Union, emergence of the US as the sole superpower, altered threat perceptions of nations around the world, new security challenges and India’s emergence as a militarily powerful country enabled both Washington and New Delhi to redefine their bilateral relations. One of the outcomes of this exercise has been rising defense and security ties between the two countries.

Some Aspects of India Africa Relations

Prof. Aparajita Biswas

Taking the general switchover of India’s relations with Africa as a starting point, this article reviews the radical shift in India’s development strategy in the 1990’s and its increasing economic engagement in Africa since then. India’s growing economic strength underpins the architecture of India-Africa relationship and has given a new resonance to South-South cooperation. It also offers great benefits for both sides. Africa is the emerging market for Indian products and enterprise and an alternative source of energy security for India. For Africa, India is a shining example how democracy and development can fuse harmoniously.

By 2009, Indian enterprises had a total of $750 million invested in 40 projects in Egypt alone in diverse areas like chemicals, petrochemicals, pharmaceuticals, cosmetics, garments etc. Indian companies are active in chemical ventures in Morocco and Tanzania, copper mining in Zambia, oil in Mauritius and Madagascar, and telecommunications and textiles in Malawi Vedanta Resources, a publicly traded metals conglomerate founded in Mumbai in 1976, has invested more than $750 million in Zambian copper mines, and recently the Liberian parliament ratified a 25-year deal allowing Arcelor Mittal to launch a $1 billion iron ore mining project that will eventually employ 20,000. In Uganda, India is now the third largest source of foreign direct investment, after the UK and Kenya. Indian firms are now setting up cotton mills in Chad, cement plants in the Congo and even remaking the home of the late African statesman, Kwame Nkrumah

Bangladesh: The Pangs of Proximity

Samir Kumar Das

There is no denying that India has a stake in the political stability and economic development of Bangladesh. On one hand, these are likely to keep her people within the territorial borders. Similarly a democratic and secular regime in Bangladesh is unlikely to provide safe havens to the insurgents and religious radicals working against India’s or for that matter the region’s interests. Besides, India has also much to benefit from any resource-sharing arrangement with Bangladesh. While being an upper riparian India has certain leverage vis-à-vis Bangladesh in respect of water resources, any hard line policy on India’s part is likely to toughen Bangladesh’s stand and reduce the probability of the supply of ‘excess’ gas to the neighbouring states of India. Much of Northeast’s connectivity with the Indian mainland depends on Bangladesh allowing a ‘freight corridor’ through her territory. The use of Chittagong port for the sates of the Northeast is bound to enhance the trade flow. On the other hand, the main obstacle to India’s much touted Look East policy is that she has no direct opening with the booming economies of South East Asia – a region that India seeks to connect to and from which she has much to gain through expanding bilateral trade and commerce. Besides Myanmar, Bangladesh is the only frontline state. The demand for transit facility across Bangladesh makes sense in the larger context of deepening India’s economic and security ties with South East Asia.

Security Dynamics in Central Asia and Implications for India

Brig. Vinod Anand

 

Both the United States and India have important interests in Central Asia because of its strategic location and its oil, gas and hydroelectric potential. Both share goals of preventing instability and insecurity in CAR and prevention of terrorism. For the United States, access to Afghanistan via Central Asia became crucial following 9/11; although the United States continues to want access to the region's energy and to seek the economic and political reforms necessary to insure long-term regional stability. It favours multiple routes, including west through Azerbaijan, Georgia, and Turkey, and south   through Pakistan to India, for energy and other exports from Central Asia as necessary to get those resources to world markets and to insure the real independence of the countries of the region. India considers Central Asia as its extended neighbourhood and attaches high importance for its geopolitical and geo-economic interests. More specifically, Central Asia's location next to Afghanistan makes it important not only in the India-Pakistan context as also India needs Central Asian energy resources. Therefore, the Greater Central Asia concept has positive connotation but then India would also like to take into account any Russian concerns arising out of this concept, if any.

India’s Look East Policy: Time for Stock-Taking

Prof. Tridib Chakraborti

 In the Indian foreign policy domain, New Delhi’s ‘Look East’ policy has been, no doubt, a major initiative taken by our policy-makers in the post-cold war years definitely towards a region with which it has past historical and cultural linkages. This policy officially started its course with the speech delivered by the then Indian Prime Minister, P.V. Narasimha Rao at Singapore in 1994. Presently, India’s ‘Look East’ policy has an experience of nearly two decades. During this span of time, India has gained many economic, strategic and political advantages in the Asia Pacific region by executing this policy. However, when compared to China, India’s position in the region has not been very prominent. There are certain obstacles, both within the formulation of India’s ‘Look East’ policy and certain major obstructions faced by New Delhi, emanating from regional and extra-regional powers, that have remained the main pitfalls in making the policy less effective. India’s soft power strategy can play a pertinent role in making this policy more effective in nature.

India-China Relations – The Year in Review

Rukmani Gupta

 A review of the major events in the economic, military and political relationship between India and China exemplify vacillation between ‘incremental engagement’ and threat perception that as come to characterize relations between the two states. Economic relations continue to be marred by numerous small issues and the larger question of achieving balanced trade with China remains unanswered. The ‘antagonistic hype’ created by the media in both countries was surprisingly effective in encouraging nationalistic indignation within both states and military measures taken by India to bolster overall national security were deciphered to imply an imminent China threat. Despite upheavals however, the political institutions constructed to facilitate cooperation have functioned well, injecting an amount of sanity in the otherwise frenzied discourse on bilateral relations.

India - Pakistan Relations: Clouds in the Horizon

Mohor Chakraborty

The history of bitter animosity between India and Pakistan reached its height with the terrorist attacks on Mumbai on 26 November 2008. While the issues of terrorism and Kashmir have remained persistent carbuncles in the saga of Indo-Pakistan relations, a series of recent events of the ilk of internal disturbances in the body politic of Pakistan, conflicts in the Pakistan-Afghanistan border, the diplomatic offensive between the Prime Ministers of India and Pakistan at Sharm-el-Sheikh and its repercussions on domestic politics in India, the low and asymmetrical level of bilateral trade between New Delhi and Islamabad and the involvement of external powers, particularly China, in South Asian affairs, have served to exacerbate the downturn in bilateral ties, have further complicated ties between the two sides. However, pragmatic diplomacy makes it imperative for the policy-makers of India and Pakistan to address problems facing development of the individual countries in general and South Asian regional politics in particular.

 

India and Turmoil in West Asia: Challenges and Emerging Responses

Prof. A K Pasha

As new threats emerge in the Gulf region which would destabilize the area it is imperative for India to further engage all the states in the region at a much broader level. It would be in the long term interest of India to have a balanced relationship with all the Gulf States. Any over-identification with one group of states is not in our long term interest. Of course there are bound to be pulls and pressures between US and GCC and Iran and India.  But an independent Indian approach has much greater chance to broaden and deepen our relationship with the Gulf States. In this connection India should quietly but forcefully urge the leaders in the Gulf region to move ahead with gradual but meaningful democratic reforms leading to political participation. At the same time India must also keep in touch with some of the civil groups advocating democratization in the GCC states. We must keep in mind EU’s example of allowing groups from the Gulf which propagate democratization of the GCC regimes. It is obvious that most GCC regimes are going through severe loss of sovereignty and some even threat of disintegration, civil war and identity crisis. Outside support to religious minorities, ethnic groups and to members of former ruling families is becoming sharper in the Gulf region. Should India be unaware of these momentous developments which have a direct bearing on its future interaction with this vital region? While continuing the fight against terror, and focusing on problems like ending Israeli occupation of Arab lands and US occupation of Iraq among many other local concerns, we need to constantly review our policies emerging from a strategic and volatile area and explore new ways of overcoming the mounting constraints which need to be addressed with a sense of urgency. Indian diplomacy needs to rise to the occasion as it has both challenges and opportunities in the energy rich but unstable Gulf region which is after all India’s extended neighborhood.

India–Afghanistan: Deepening Strategic Partnership

Dr Mondira Dutta

India has reached its ninth year of nation building process in Afghanistan. Working under severe threats and constraints what should be India’s strategy for the future. Given the vulnerable situation that US/NATO may withdraw from the scene sooner than expected, should India continue? The present paper attempts to reiterate the Indian efforts in Afghanistan within the broader perspective of Afghanistan’s recent elections. The study touches upon some of the stakes involved for India while assessing the way forward in the global context.

India’s Neighbours: The Saga of Sweet and Sour Experiences

Apala De

The history of South Asia since the Second World War was a history of turmoil and uncertainty. During the cold war years, this uncertain situation was mainly determined by cold war politics. The two major wars that took place between India and Pakistan in the region and India’s involvement in Sri Lankan issue as well as the blasting of nuclear bomb by India in 1974 exacerbated regional insecurity among the smaller neighbours. In the post-cold war years, this uncertainty was further escalated due to different political fluctuations, which evolved in the structure of the nation-states, owing to ethnic unrest, growth of terrorism, impact of globalization, economic disparity, involvement of extra-regional powers, etc.  This instability was spearheaded due to Kargil War in 1999 and the nuclear explosions by both India and Pakistan a year ago. In recent years, the 26/11 incident deeply generated severe tension between the two regional nuclear powers.  The ineffectiveness of SAARC to play the role as a successful regional organization remains a major drawback for better understanding among the nation-states in the region. How India perceives its neighbours in South Asia will be the focus of this article.

Changing Dynamics of India-Sri Lanka Relations

Col R Hariharan

In this global canvass, China has emerged as an important economic power aspiring for global recognition. The strategic clout of the Peoples Liberation Army (PLA) is being strengthened with rapid modernisation of its weapons, equipment and training methods. Its ever increasing naval strength is slowly being articulated in Indian Ocean and beyond.

So it was not surprising that China has fully used the opportunity offered by India’s self imposed constraint in developing its strategic relations with Sri Lanka. Diplomatically and in arms supply China rendered invaluable help to Sri Lanka in its war effort against the Tamil Tigers

Strategically, China perhaps wants to cultivate Sri Lanka as a friendly cockpit for its Indian Ocean defence as China's vital shipping lanes are dominated by Sri Lanka. Moreover, Sri Lanka by its geographic location is the southern vanguard of India's strategic defence. As India is the major competing power in the South Asian region, China would like to strengthen its presence in India's neighbourhood. She has been doing it in Pakistan, Nepal, Bangladesh and Myanmar. Even Maldives is now coming under increasing Chinese attention.

Ensuring India’s Energy Security

Dr. Bhupendra Kumar Singh

Our growing dependence on energy imports exposes us to external shocks. The most critical elements of our energy security remain augmenting the domestic energy resource base, reduce requirement and increase efficiency. Obtaining equity oil, coal and gas abroad enhance energy security to the extent that they diversify our import options. India is committed for the multifaceted global engagement in pursuit of energy security. India’s per capita CO2 emission is 1.1 tonnes against 20 tonnes of US and 10 tonnes of most OECD countries. In an effort to tackle climate change problem India is spending 2.6% of its GDP on climate change adaptation and the National Action Plan on Climate Change is underway.

Indo-Bangladesh – Changing Policies

Anil Kamboj

In the age of globalisation, Bangladesh must prioritise its economic agenda and see how the country can gain from the emerging economy of India. In view of India’s location and market potential, Bangladesh should look at India as a long term strategic and economic partner. India for its part should be magnanimous as possible in areas of trade and economic relations, in ways that allow the two economies to be closely interlinked. The look east policy of India and the emerging trends of sub-regional corporation involving Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand and also Asia Growth Quadrangle (SAGQ), have crossed border trade through the north eastern region as the core element. This is where a serious policy intervention is required, mainly with a view to harnessing the comparative advantages of all the eight north eastern states and prosperity of the region.

A peaceful, stable, democratic, secular and prosperous Bangladesh is in India’s own national interest. Our unique relations are based on shared history, culture, traditions and common language and literature. India attaches the utmost importance to strengthening our friendly and cooperative ties with Bangladesh. India fully respects Bangladesh’s independence and sovereignty. The people of Bangladesh and their political parties should resolve outstanding issues through discussions and dialogue among themselves, rather than through external intervention or pressure.

India- Japan Relations: Recent Phase

H.S. Prabhakar

Continued India-Japan maritime intelligence and multinational naval exercises will provide India with a symbolic forward presence in Northeast Asia, creating a counterbalance to China. India had invited Japan’s Maritime Self Defense Force to join the navies of India and the U.S. for the annual Malabar naval exercise, and as part of the Japan-India Joint Declaration on Security Cooperation signed in October 2008, the two countries pledged for greater cooperation between their coast guards. The next India-Japan summit which the Prime Minister, Mr. Yukio Hatoyama is due to attend in India in 2010, will give a clear indication on how Japan under his government views the relationship with India. 

In June 2008, Japanese pharmaceutical company Daiichi Sankyo bought a 34.8 percent controlling stake in India’s largest pharmaceutical firm, Ranbaxy Laboratories. A few months later, Japanese telecom giant NTT DoCoMo bought a 26 percent stake in Tata Teleservices Ltd. (TTSL). Honda, the Japanese auto major planning its foray into the compact car segment in India, will expand its dealership network across 90 cities in the country and its production capacity to 160,000 units. Canon, Japan’s digital imaging technology giant, is set to roll out its global flagship stores. Nissan, yet another Japanese auto major, is working on an 'entry car strategy' to build its mass presence in India and select overseas markets. The sectors that attract Japanese investment include transportation (28 percent); telecommunications (18%), fuel (13.5%), chemicals (12.17 percent) and trading (6 percent).

Indo-Nepal Relations in Contemporary Times

Dr Bharti Chhibber

Indo-Nepal relations in all fields be it political, economic or environmental are influenced by the geographical proximity, geo-political issues, historical trade relations, and similarity of culture. The political situation in Nepal has been in doldrums since May when the Maoist-led government stepped down and started a nationwide movement to restore ‘civilian supremacy’. Indo-Nepal political relations cannot remain unaffected by this internal political turmoil in Nepal as we have seen in recent times. Earlier India extended both moral and material support to the Nepalese authorities in their fight against the Maoist menace. Now with Maoists playing an important role in Nepal’s political life, it is time for the Indian government to forge a fresh alliance with the Himalayan Kingdom.  Today Nepal has diversified its foreign relations and contacts but is still dependent on India in a number of significant ways. As the larger neighbour, India has and should make some unilateral economic concessions.   But India must also make it very clear that it cannot and will not compromise on its core security concerns.  In fact the two historically bound members should realize that they ought to have shared security perspectives.

India-Iran Relations: Sustaining Ties amidst Challenges

Monish Tourangbam

In recent times, India-Iran ties have come under serious strain as a result of India’s increasing engagements with the United States and international suspicions over the Iranian nuclear programme. The India-US nuclear deal became the centerpiece of India-US relations at a time when questions were increasingly raised in the international community against the Iranian nuclear programme. As such the developments took its toll on India-Iran relations. But as pragmatic players of international relations, India and Iran have succeeded to a large extent in sustaining bilateral ties. It is normal in the international environment for inter-state relations to see their ups and downs but the challenge is to keep relations going amidst differences of opinion and strategy. This article attempts to look into the issues of convergences and divergences between the two countries. The writer tries to try and make sense of how two resourceful countries- India and Iran keep the boat float and rowing amidst occasional tides.