Dr.

RAM MANOHAR LOHIA NATIONAL

LAW UNIVERSITY LUCKNOW

POLITICAL SCIENCE

INDIAN FOREIGN RELATIONSHIP

Submitted to:-

Submitted by:-

Dr. Monica Sirvastava

Assistant Professor (pol. science)

Shivanshu Singh
Roll no. 141
B.A. LL.B. (Hons.)- Ist sem
BATCH 2016-21

Introduction Background
INDIA'S FOREIGN RELATIONS reflect a traditional policy of nonalignment, the
exigencies of domestic economic reform and development, and the changing post-Cold War
international environment. India's relations with the world have evolved considerably since
the British colonial period (1757-1947), when a foreign power monopolized external relations
and defense relations. On independence in 1947, few Indians had experience in making or
conducting foreign policy. However, the country's oldest political party, the Indian National
Congress, had established a small foreign department in 1925 to make overseas contacts and
to publicize its freedom struggle. From the late 1920s on, Jawaharlal Nehru, who had the
most long-standing interest in world affairs among independence leaders, formulated the
Congress stance on international issues. As a member of the interim government in 1946,
Nehru articulated India's approach to the world.
During Nehru's tenure as prime minister (1947-64), he achieved a domestic consensus on the
definition of Indian national interests and foreign policy goals--building a unified and
integrated nation-state based on secular, democratic principles; defending Indian territory and
protecting its security interests; guaranteeing India's independence internationally through
nonalignment; and promoting national economic development unencumbered by overreliance
on any country or group of countries. These objectives were closely related to the
determinants of India's foreign relations: the historical legacy of South Asia; India's
geopolitical position and security requirements; and India's economic needs as a large
developing nation. From 1947 until the late 1980s, New Delhi's foreign policy goals enabled
it to achieve some successes in carving out an independent international role. Regionally,
India was the predominant power because of its size, its population (the world's secondlargest after China), and its growing military strength. However, relations with its neighbours,
Pakistan in particular, were often tense and fraught with conflict. In addition, globally India's
nonaligned stance was not a viable substitute for the political and economic role it wished to
play.

Ministry of External Affairs

The Ministry of External Affairs is the governmental body most concerned with foreign
affairs, with responsibility for some aspects of foreign policy making, actual implementation
of policy, and daily conduct of international relations. The ministry's duties include providing
timely information and analysis to the prime minister and minister of external affairs,
recommending specific measures when necessary, planning policy for the future, and
maintaining communications with foreign missions in New Delhi. In 1994 the ministry
administered 149 diplomatic missions abroad, which were staffed largely by members of the
Indian Foreign Service. The ministry is headed by the minister of external affairs, who holds
cabinet rank and is assisted by a deputy minister and a foreign secretary, and secretaries of
state from the Indian Foreign Service.

Factors that Affect Indias Foreign Policy

Foreign policy of a country generally means its relations with other countries regarding all
issues of international relevance like peace, disarmament, climate change, development,
justice, decolonisation etc. It is the outline of a countrys policy in pursuing its national
interest in global affairs. A state tries to control the behaviour of other states through its
foreign policy states and for adjusting their own activities to the international environment.
However, globalisation has made it extremely difficult for countries to isolate ones national
interest from its geo-political location and international environment. Therefore, Indian
Foreign Policy is not only determined by domestic factors, but also by international factors.
Nevertheless there continues certain basic factors that make a more long term impact on
foreign policy. The basic factors which form Indias foreign policy may be identified as
(a) Geography India is situated at the centre of the Great Asian Arc stretching from Aden to
Tokyo and at the head of the Indian Ocean. Indias central and dominant location in the
Indian Ocean helps it to play a role of global importance. India is a sub continent where the
Peninsula is separated from mainland Asia by the Himalayas in the North, Bay of Bengal in
the East, the Arabian Sea in the West and the Indian Ocean in the South. Her location
influences global powers to programme India into their respective global strategies.
(b) Military Strength The military strength of a country enables it to successfully negogiate
with enemies. India has the fourth largest military establishment in the world. Indias nuclear
military strength acts as a deterrent against external threats. The role of military strength is to
serve the rational political goals like defence of the state, its sovereignty and territorial
integrity at one level and to support the countrys foreign policy and to safeguard and sustain
national interests through international relations at another.
(c) Indian Diaspora Countries with large overseas communities are engaging in developing
policy frameworks and mechanisms to leverage this important resource in pursuit of their
national interests, the phenomenon have been brought into prominence by the end of the Cold
War, the processes of globalisation and economic liberalisation.
It is concerned with the pursuit of unregulated markets almost every for almost everything.
The Indian Diaspora is a generic term to describe those, who migrated from India and their
descendents. The Diaspora is composed of Non - Resident Indians (NRIs), Persons of Indian
Origin (PIOs), who have acquired the citizenship of some other country and Stateless Persons
of Indian Origin (SPIOs). Presently, the Indian Diaspora spans the globe and stretches across
all the oceans and continents. It is estimated to be about 20 million people if Indian origin,
who live and work in foreign countries and constitute an important link with the motherland.
Indian Diasporas contribution reaches India in the form of annual remittances, NRI deposits
and NRI equity investments. Therefore, Indian Diaspora emerges as an important determinant
of Indian foreign policy.

(d) National Philosophy Indias commitment to world peace, anti-colonialism opposition to

racism, commitment to democracy, secularism and peaceful co-existence etc are certain
philosophical values that emerged during the freedom movement. During the British rule
India considerably developed relations with other countries to improve world peace and
freedom and condemned colonialism and racial discrimination.
(e) Political Organisation India is a democratic country and established institutions of
democratic political structure such as an elected Parliament, political parties and a free press
make their due impact on foreign policy. Negotiated treaties and international agreements
become legally binding on the state, but are not part of the domestic law unless passed by an
Act of Parliament. Interest groups concerned with foreign relations exist inside and outside of
Parliament.
(f) Economic Development In todays globalised world economic development oriented
foreign policy is a common phenomenon because many states look for Foreign Direct
Investment (FDI) and the expansion and diversification of foreign trade. Globalisation is
viewed as an opportunity to extend their reach and dominance. Thus, economic development
and trade become a focal point in foreign policy in the globalised era.

Indias foreign policy in reference to its neighbour.

Indias neighbourhood which the member-countries of the South Asian Association for
Regional Cooperation (SAARC) namely Afghanistan, Bangladesh, Bhutan, Nepal, Maldives,
Pakistan and Sri Lanka comprise, is a fairly complex geographical entity. This is to say the
least. In fact India can be said to be living in a dangerous neighbourhood. The constituent
countries-individually as well as collectively-represent a world of historical links, shared
legacies, commonalities as well as diversities which are so elaborately reflected in their
ethnic, linguistic, religious and political fabric. China and Myanmar, the other two
neighbours, are no less complex.
The South Asian region is also full of contradictions, disparities and paradoxes. In the postcolonial period, the South Asia has been a theatre of bloody inter-state as well as civil wars; it
has witnessed liberation movements, nuclear rivalry, military dictatorships and continues to
suffer from insurgencies, religious fundamentalism and terrorism, besides serious problems
associated with drugs and human trafficking.
The South Asian Association for Regional Cooperation (SAARC) has remained in existence
for over 27 years; yet South Asia is considered as the least integrated of the global regions;
this is despite the stipulation in its Charter that "bilateral and contentious issues shall be
excluded from its deliberations, thus making it possible to put the contentious issues on the
back burner and focus on areas of possible cooperation.
Where does India stand in this rather volatile region? Indias position is unique in more than
one sense. As a matter of an interesting geographic factor, India shares borders with all other
South Asian nations whereas no other South Asian nation (except Afghanistan and Pakistan)
shares borders with any other South Asian nation. Notwithstanding some shortcomings,

democracy and rule of law as instruments of political governance are well entrenched in
India. Transfer of power has been more or less peaceful and transparent. In relative terms
India can be arguably considered as the most stable country in the region, moving ahead on
the fast tracks of development, even though the growth has of late slowed down.
Further in terms of its population, territory, GDP, its image as an emerging world economy
and a responsible de-facto nuclear State, and as a country which is destined to play a larger
role on international arena, and also for several other reasons, India stands apart amongst the
bunch of other South Asian countries. In fact India can be said to dwarf others in the South
Asian region which in turn has created misperceptions about India and its intention.
In a scenario where we have incorrigible Pakistan at one end and genuinely friendly Bhutan
at the other end of the spectrum, and everyone else somewhere in between, it is perhaps
difficult to write one single foreign policy prescription for the entire region. Nevertheless,
there are some basic approaches which India has consistently endeavoured to adopt and
apply; these include for instance:
India advocates the policy of constructive engagement, despite such serious provocations as
have been in the past (attack on Parliament, Mumbai terrorist attacks etc). It believes that
violent retaliation and confrontation can only complicate the matters. This applies in
particular to Pakistan- the origin of State-sponsored terrorism targeted at India. The policy of
engagement is not be allowed, however, to be misunderstood as weakness. Strong and loud
messages must emanate from India each and every time our patience is tested.
India adheres to its benign and noble policy of non-interference into internal affairs of other
countries in the region. However, if an act - innocent or deliberate - by any country has the
potential of impinging upon Indias national interests, India does not hesitate in quick and
timely intervention. Mind it: intervention is qualitatively different from interference,
particularly when the intervention is made at the request of the country concerned.
Foreign policy in India by and large enjoys national consensus. At times, however, there are
instances when it appears that the foreign policy is being held hostage to domestic regional
politics. Bangladesh and Sri Lanka are the most glaring examples. Domestic sentiments and
genuine concerns of the segments of the society must be taken into consideration but not
allowed to determine countrys foreign policy which must be guided solely by the overriding
national interests and must be made in New Delhi.
India has endeavoured to deal with the government-of-the-day, be it a democracy, monarchy
or military dictatorship, insisting that the choice of the form of government is best left to the
people of the country concerned. India does not believe in exporting democracy but does not
hesitate in promoting democracy wherever potential exists; this is done by proactively
providing assistance in capacity building and strengthening the institutions of democracy;
In contemporary globalised world, the foreign policy and the foreign economic policy
objectives stand integrated and cannot be addressed divorced from each other. Creation of an
external environment which is conducive to all inclusive growth in the country is one of the

integral component of Indias foreign policy. All diplomatic skills and political leverages are
being put to use to impress upon the partners in the region that joint exploration of natural
resources can lead to win-win situations. Indias cooperation with Bhutan in hydropower
generation is an example to be cited and followed. In contrast, as a result of its reluctance to
collaborate with India in this field, Nepal remains a net importer of electricity despite its
enormous hydro resources.
India has skilfully used its policy of non-prescriptive development assistance as its soft power
since early 1950s. In return India has sought "good will and "friends of India. In a slight
departure India is gradually switching over from pure charity to a judicious mix of outright
grants and soft loans linked to project/commodity exports. Also India is judiciously working
to ensure that the "goodwill thus earned must get translated into concrete political and
economic dividends.

India and China:

When the Communists came to power in China, India had welcomed the change and was one
of the first countries to recognise her. She also advocated Chinas admission to the UN.
In 1954, Indian Prime Minister Jawaharlal Nehru and the Chinese Prime Minister, Chou- enlai, had signed the Panchsheel agreement.
They adopted five principles:
1. Mutual respect for each others territorial integrity and sovereignty.
2. Mutual non-aggression.
3. Mutual non-interference in each others internal affairs.
4. Equality and mutual benefit.
5. Peaceful coexistence.
In spite of this, in 1962, China attacked India in the North-East and occupied a part of Indian
Territory. The war ended soon but relations between India and China remained strained for a
long time to come.
The visits of the Indian Prime Ministers Rajiv Gandhi (in 1988) and Narasimha Rao (in 1993)
to China have improved the situation to some extent. Several trade agreements have also been
signed. But it is not an easy task to restore peace and mutual trust between the two countries.

India and South Asia:

South Asia comprises the countries lying to the south of the Himalayas and the Hindukush
mountains. India, Pakistan, Nepal, Bhutan, Bangladesh, Maldives and Sri Lanka are the
countries belonging to the region. Most of these countries were previously ruled by the
British. They have similar cultures, social habits and economic problems.
All these countries face problems arising out of overpopulation, poverty, malnutrition,
illiteracy etc. It is believed that these countries of South Asia could progress fast only through
cooperation with each other and by devising common plans for development. This concept
led to the formation of the South Asian Association for Regional Cooperation (SAARC) with
the objective of mutual economic and social development.
The South Asian Association:
The late President Zia-ur-Rehman of Bangladesh first proposed the setting up of a regional
body, countries, held discussions on the need for cooperation among them and identified
several areas where cooperation was urgently needed.
The Foreign Ministers of these seven South Asian countries studied these proposals. The first
South the SAARC Asian summit held in Dhaka in 1985 marked the formation of the SAARC.
Objectives:
The Dhaka Declaration states its objective as the making of the full use of all the human and
natural resources and accelerate the economic and social development of the region.
Broadly speaking, the objectives are:
1. Strengthening economic cooperation so as to improve the quality of life of the people of
South Asia;
2. Increasing the pace of economic growth;
3. Giving mutual assistance and cooperation in areas like agriculture, scientific development,
etc.; and
4. Promoting social progress and cultural development.
It was made clear from the very beginning that no member state would interfere in the
internal affairs of another. Only those matters would be discussed which concerned all the
member states.
After the formation of the SAARC, a number of summits were held. Each summit undertook
several specific programmes. The South Asian Preferable Trade Agreement (SAPTA) was
signed to inaugurate a new era of economic cooperation in South Asia. India hosted the first
festival of the SAARC countries in 1992. Artists, musicians and dancers from all the SAARC
countries participated in the festival.
The first SAARC Trade Fair was held in New Delhi in 1996. Bangladesh, Pakistan, Nepal,
Bhutan, Sri Lanka and India participated in the fair.

Achievements:
The progress of regional cooperation among the SAARC countries was slow. Yet a few
noteworthy developments took place.
1. It established a cultural link among the SAARC countries. The SAVE (SAARC AudioVisual Exchange programme) was launched in 1987 to make people aware of one anothers
cultures and make them conscious of the need for cultural exchange. Regular monthly
programmes on radio and television are contributed by each member country.
2. The SAARC Regional Convention on the Suppression of Terrorism came into force in
August 1988. The members also signed a SAARC Convention on Narcotic Drugs in 1990 to
combat the problem of drug trafficking and drug abuse.
3. A SAARC Trade Fair with the theme Cooperation for Growth was organized in New
Delhi.
4. The South Asian Federation (SAF) Games are held by turn in each of the member
countries.
It is difficult for the SAARC to achieve its objectives because of internal dissent. There are
differences between India and Pakistan on the Kashmir issue and cross-border terrorism.
India also has a dispute with Bangladesh over the sharing of river waters and strained
relations with Sri Lanka on Tamil militancy.
The South-East Asian countries of Malaysia, Myanmar (Burma), Thailand and Vietnam are
economically important countries. While Myanmar, Thailand and Vietnam are riceproducing countries, Malaysia produces rubber.
Possibly for fear of communist domination, the governments of Indonesia, Malaysia,
Thailand, Philippines and Singapore formed the Association of South-East Asian Nations
(ASEAN) in 1967. It was decided to make the region a Zone of Peace, Freedom and
Neutrality. Later on Brunei, Vietnam, Myanmar and Laos joined the ASEAN.
The ASEAN was founded with the objective of accelerating economic growth, social
progress and cultural development in the region. It sought dialogue with the powerful nations
of the world in order to attract investment. These nations were called Dialogue Partners.

India and Nepal:

India and Nepal enjoy a special and unique relationship rooted in shared heritage,
civilization, culture and extensive people-to-people relations. We attach the highest priority to
our relations with Nepal and the government is fully committed to further enhance and
expand this relationship. We believe that a peaceful, democratic, stable, strong and

prosperous Nepal is not just in Indias interest but would also contribute to the prosperity of
our region. It is for the Nepalese people through the elected political representatives to come
to an agreement on the nature of the constitution they want. We do feel India-Nepal relations
would be strengthened by establishment of a multi party democracy.
India continues to be a major trading partner of Nepal. Nearly 60% of Nepals foreign trade is
with India and 48% of its FDI comes from India. Around 40% of Nepals tourists come from
India and more than 5 million Nepalese find employment in India.
Our development cooperation, which covers a broad canvas, including physical
infrastructure, water resources, human resource development, health, power, civil aviation,
tourism, and agriculture, has now entered a new era. We will construct over 600 Kms of roads
in the terai region of Nepal, establish two integrated check-posts and two cross-border
railway links over the next three years. In the second phase, we will construct additional 800
Kms of roads, three cross-border railway links and two integrated check-posts. We believe
these will contribute substantially to Nepals development efforts and facilitate trade,
investments and people-to-people contacts between our two countries. The projects will go
ahead on the basis of Nepals felt needs. We are committed to continuing our engagement and
cooperation with utmost sensitivity and attention that it deserves.

Being a small landlocked country, Nepal depends on India for economic support and transit
facilities. Almost all of her imports pass through Indian ports. India has made a significant
contribution to economic and social developments of Nepal. She built the 204 km long
Mahendra Raj Marg to link Kathmandu and India. Agreements have been signed for greater
cooperation in trade, education, industrial development and cultural exchange programmes.
There are very few travel restrictions between India and Nepal. Nepalese workers are
employed in India and Nepalese students study in Indian universities.

India and Bhutan:

Bhutan, a small Himalayan kingdom, is one of the poorest countries of the world. India has
helped Bhutan in her telecommunication and hydroelectric projects and in the construction of
hospitals, roads and bridges. India is Bhutans largest trade and development partner, and
source of supplies of most of the essential commodities required by Bhutan. As a Bhutan
prepares its people for the information technology age, it is reaching out beyond its
traditional sectors of agriculture and hydropower to expansion in tourism, IT, and education,
and it offers considerable potential for mutually beneficial economic and business
partnership.
Development of hydropower in Bhutan has been the centre-piece of our bilateral cooperation.
It is an exemplary win-win partnership: surplus power generated from the hydroelectric
projects (HEPs) is exported to India providing Bhutan a steady stream of revenue and

providing Indian an assured supply of clean power. There is vast potential to be realised as
out of Bhutans estimated potential of 30,000 MW (20,000 MW is technically and
economically feasible), only about 1400 MW has been harnessed. Both governments have set
the target of 10,000 MW of hydropower capacity by 2020; and have identified 10
hydropower projects to meet this target.

India and Myanmar

Myanmar (Burma), which was a part of British India, became independent in 1948. Since
India and Myanmar share common boundaries, they have to face problems of smuggling and
illegal migration. Rajiv Gandhi visited Myanmar in 1987 and the two countries agreed to
solve these problems through greater vigilance.
India supports Aung-San Suu Kyi, the Nobel peace prize winner who is the leader of the
democratic movement in Myanmar.
The significant political and economic reforms instituted by the Government of Myanmar
over the past year have led to an increased international interest in Myanmar. As a part of our
efforts to promote the nascent democracy and its institutions in Myanmar, we have shared
Indias experience in parliamentary democracy and facilitate regular exchanges between
parliamentarians of the two countries. In this context, a parliamentary delegation led by the
Speaker of the Lower House of Myanmar Parliament H.E. Thura Shwe Mann visited India
from December 11-17, 2011; and now training programmes are being organised for
Parliamentarians and Parliamentary staff. I was happy to interact with the first team and to
learn that they found the course useful.
India remains committed to extending all possible assistance and support to the process of
national reconciliation and the further strengthening of democracy in Myanmar.
We are working closely with Myanmar on various infrastructure development and
cooperation projects, including in the field of roads, waterways, power, health, education and
industrial training, telecommunications, and others. The development projects have to move
in tandem with the progress of Manipur in these fields. By the end of this decade we expect
that direct road connectivity to South East Asia will become easy and will facilitate trade,
tourism and travel. We are deeply conscious of the need to have projects like the ImphalMandalay bus service as soon as infrastructure is ready and with approval of Myanmar
authorities. We would like to work together for development of border regions; including
essential infrastructure development

India and Pakistan:

In 1947, India was partitioned and the country of Pakistan was born. The two countries share
the same historical, linguistic and cultural heritage. Yet, ever since independence, relations
between the two countries are marked by hostilities.

The Kashmir Issue:

The Kashmir problem had begun from 1947, the year of our independence. The Mountbatten
Plan had given the Indians States the option of joining either India or Pakistan or remaining
independent. When the British left India, Pakistan attacked Kashmir and occupied a part of
the Kashmir Valley.
The Maharaja of Kashmir decided to join India and signed the instrument of accession.The
Indian army moved into Kashmir and pushed back the invaders. After UN intervention,
North-West Kashmir was controlled by Pakistan and the rest of the state was placed under
Indian control.
The Indo-Pak War (1965):
In August 1965, Pakistan made another attempt to seize Kashmir. A war started. After UN
intervention, a truce was declared and an agreement (the Tashkent Agreement) was signed in
1966. But cordiality and friendship were not established.
The Indo-Pak War (1971):
Hostilities between India and Pakistan again started in 1971 when India helped Bangladesh to
become independent. By the Simla Agreement (1972), Prime Minister Indira Gandhi of India
and Z.A. Bhutto of Pakistan agreed to settle all problems peacefully. However, relations
between India and Pakistan continue to remain strained.
Kargil War (1999):
War again broke out between the two countries when Pakistan occupied portions of Indian
Territory in the Kargil area. India defeated Pakistan. Relations between India and Pakistan
further worsened because of Pakistans involvement in terrorist activities in various parts of
India, especially in the Punjab and Kashmir. This cross- border terrorism instigated by
Pakistan is a grave threat to Indias security. Restraint, understanding and cooperation are
needed for the establishment of lasting peace in this region.

India and Bangladesh:

In 1971, a civil war broke out between the people of East Pakistan and West Pakistan. India
helped East Pakistan in her war of independence against West Pakistan. In 1971, East
Pakistan became independent with Indias support. A new nation, Bangladesh, was born
under Mujibur Rehman.
India and Bangladesh share a unique bond and a special relationship. We are bound by our
common cultural heritage, shared principles and values and hopes for a bright new future.
This relationship has been forged by our common aspirations and sacrifices. India wish to
carry forward the mission of strengthening the historic bonds between them and impart a
vision for the future that is durable and sustainable.

Exchanges of high level visits in recent times have added a new momentum to our bilateral
relations. Our relations have entered a new phase, based on a pragmatic and practical
approach which reaffirms our mutual commitment to sovereignty, equality, friendship, trust
and understanding. This commitment is for the mutual benefit of the people of India and
Bangladesh, and conducive for the collective prosperity of the region.
Bilateral relations between India and Bangladesh received a major boost through the
landmark state visit of the Prime Minister of Bangladesh to India in January 2010 that laid the
road-map for our interactions. The visit of Prime Minister, Dr Manmohan Singh, to
Bangladesh in September 2011 opened a new chapter in the bilateral relationship and further
cemented the active cooperation and engagement between the two nations.
Last year, India opened its market to all Bangladeshi products, except 25 sensitive tariff lines.
Bangladeshi goods now enjoy zero duty access to the Indian market. This is an initiative of
strategic significance. It has the potential of changing the economic landscape in Bangladesh.
Exports from Bangladesh have increased substantially over the last few months.
The Framework Agreement on Cooperation for Development signed between our two Prime
Ministers in September 2011 represents a new phase in our relations with Bangladesh and the
region. India has committed itself to discussing sub-regional cooperation with Bangladesh in
areas such as the power sector, water resources management, physical connectivity,
environment and sustainable development.
India has welcomed the participation of Bangladesh in power projects in India, including in
the North-Eastern states, wherever economic viability for such cooperation exists. At present
Bangladesh has reservations about the Tipaimukh project and we have agreed to set up a
JWG under the Joint Rivers Commission for discussions on the issue.

Relations with Bangladesh deteriorated over the sharing of the water of the River Ganges
and the refugee problem. In 1990 the two countries entered into an arrangement covering
various aspects of trade and sharing of water.

India and Sri Lanka:

India has cultural, historical and religious ties with Sri Lanka. Sri Lanka is facing a civil war
in her northern provinces. A predominantly Tamil Hindu population of northern Sri Lanka
started a movement demanding an independent state. This powerful separatist movement is
led by the Liberation Tigers of Tamil Eelam (LTTE).
India, on the request of the Government of Sri Lanka sent a peace-keeping force there to
restore normalcy. The Indian forces were withdrawn after three years (1990) without
restoring peace.

India wants Sri Lanka to find a solution to her conflict with the Tamils who are fighting for
independence. Rajiv Gandhi himself became a victim of this unresolved crisis when he was
assassinated in 1991. Cordial relations have been restored between the two countries. As
member states of the SAARC, both countries are working together on developmental issues.

India and the Maldives:

The republic of Maldives is a group of islands in the Indian Ocean. India shares a close and
cordial relationship with Maldives. Trade and tourism are being developed between the two
countries.
India has extended economic and technical assistance to Maldives including in the areas of
health, education, human resource development, infrastructure development, capacity
building. An Agreement extending a new Standby Credit Facility of US$ 100 million to
Maldives was signed during Prime Ministers visit. A line of Credit amounting to US$ 40
million for housing project has also been extended to Maldives.
Peace and stability in Maldives is of utmost importance to India and the region. Maldives is a
nascent democracy and requires support through technical assistance and capacity building.
In this context, we have remained actively engaged with all stakeholders in the reconciliation
process in the wake of recent developments, in order to ensure that they continue to take the
democratic process forward. India remains committed to assist the Government and people of
Maldives in their endeavours to build a stable, peaceful and prosperous country.
It will be evident from this account of Indias relations with her neighbours that the overall
objective of sustaining good relations has been significantly strengthened in recent months
through several major initiatives. Most of these initiatives have been taken in an asymmetric
manner. This asymmetry will have to continue simply because India has the largest economy.
These initiatives are driven by Indias vision of a prosperous and integrated region, in which
our citizens can interact with each other in various areas of socio-economic activity for our
mutual benefit. Ultimately we need to work towards an association of neighbouring countries
where our strengths are synergized and challenges overcome. There are examples from other
parts of the world including ASEAN. None of the models can be exactly repeated; it may also
not even be necessary to have elaborate structures; but I believe we will find our way to winwin arrangements in which we can all benefit.