What is Foreign Policy?

A foreign policy is a set of pre-established strategies designed and

implemented systematically to manage a country’s relationships with other
nations. They are structured guidelines that regulate international political
dealings.
Foreign policies are drafted by governments to deal with international
affairs adequately. These policies have different goals depending on the
country’s interests. 
The purpose of it is to regulate the way the country interacts with the rest of
the world, to guarantee that domestic affairs are properly safeguarded from
outsiders and foreign goals are achieved. Depending on a country’s main
agenda, which could be an economic, social or political agenda, the foreign
policy is shaped to promote that agenda, to gain supporters and to increase
international awareness and engagement.
There are many topics covered by a foreign policy such as immigration
policies, international trade, war and military conflicts, international
organizations and international law, among other subjects.

Principles and Objectives of Indian Foreign Policy

While keeping India’s interests in mind, its foreign policy must also ensure that hostile relations
are not fomented in the process. Foreign policy is not a static concept as it keeps on changing as
per domestic and international politics. Still, there are certain principles and objectives, which are
not amenable to fast changes. National security is an example of one of these core principles. No
country can compromise its national security regardless of circumstances. Thus, foreign policy is
the instrument to realize the national interest of a country.

Determinants of India’s Foreign Policy

(The first Indian Prime Minister, Jawaharlal Nehru, gave due consideration to these factors and
played a leading role in shaping the country’s foreign policy.)

Geographical factors: -

 Geographical factors are important in determining foreign policy, which is called geopolitics. India
occupies a central position in Asia and occupies the largest area in South Asia. In such a situation, any
big incident in the whole of Asia affects India. The Himalayas are like sentinels (gaurds/keepers) of
India which play an important role in determining relations with other Himalayan countries such as
Nepal, Bhutan, and Myanmar. But the desire of China to maintain its dominance in the region
continuously since 1962 has a clear impact on India's foreign policy, which has recently shown a
change in relations with Nepal.
 Along with this, India has a natural edge in the Indian Ocean. India's dominance over the Indian
Ocean is necessary to become an important power of the Indian-Pacific region. At present, the Indian
 Ocean region is an important route of trade and communication for the whole world. Hence, it also
plays an important role in determining the foreign policy of India.

Population: -

 India is currently the second most populous and youngest country in the world, so India is becoming a
consumption-oriented country, in such a situation it will fulfil the need of a big market for all the
producing nations, which is the determinant of foreign policy. But with such a large population, problems
like hunger, poverty are evident on India's foreign policy. Many times there has been a dispute in the
World Trade Union between India and America about the government's intervention in agricultural
subsidies.

Government System: -

 India has a democratic governance system that inspires many countries of the world to accept Indian
ideology, for example, ASEAN countries plagued (troubled/cursed) by China look towards India because
India's democracy follows the principle of peaceful coexistence. But many times in the parliamentary
system, the role of state governments is also important in determining foreign policy, it becomes more
important if there is a coalition government at the centre, as was shown in the Tamil issue in Sri Lanka and
the 2005 US Nuclear Deal.

Economic Development:-

 Economic sovereignty is of utmost importance in determining foreign policy. Like its policy, India had to
open its markets in 1991, but after that India has become very strong financially. India's economic growth
has attracted many countries. Today, India is an important energy consumer, with countries like
Turkmenistan, Iran Russia having economic alliances with India. But still the negative trade balance with
China remains India's main problem.

Culture :-

 History and culture can be seen as important in the formulation of India's foreign policy. Kautilya's theory
of a powerful kingdom with the ideals of Buddha and Gandhi shows the path of India. India's civil-civilian
religious relationship is well established from many countries of the world where there are Hindu, Islam,
Christian, Buddhist majorities. The basis of India-Israel relations is somewhere in the policy of all religions
of India. Principles like imperialism, colonialism, opposition to armaments have been derived from the
history of India which are seen in India's foreign policy today.

Regional Environment: -

 Regional events are also important in determining foreign policy. For example, in 1971, the alliance of
China, US and Pakistan brought a crisis situation for India, then India got inclined towards Russia. At
present, the increasing dominance of China is also a reason for intensification of India-US relations. India
has increased India's capacity and power with Look East to Act East policies and China's rise in ASEAN.

Global environment: -

 After globalization, when the whole world connected with each other, global factors also became
important in determining foreign policy. India may oppose the move to withdraw from the Paris
Agreement on environment issues, even if there is cooperation between India and America. And this is
also an example of India wants democratic government in Afghanistan for the suppression of terrorism.
 After the Second World War, the world order has changed in many ways, keeping in mind that India tries
to reform the UN Security Council.

Military power:-

 Today India is the third most powerful country in the Army, fourth in the Air Force and sixth in the Navy. At
the same time, India is rich in nuclear power. Everyone knows India dominance in space. In such a
situation, they play an important role in the foreign policy making of India.

Institutions of foreign policy making

 The Ministry of External Affairs is the nodal agency which is directly concerned with
foreign affairs. Formally, it is responsible for foreign policymaking, the actual
implementation of policy, and the daily conduct of international relations.
 The Secretariat staff of the Foreign Ministry provides information and analysis to the
Prime Minister and Minister of External Affairs, recommends specific measures when
necessary, plans policy for the future, and maintains regular communications with foreign
missions located in India and Indian missions located in other countries.
 The Ministry is headed by a Cabinet Minister and assisted by the Deputy Foreign
Minister.

Other Government Agencies:

Other Union Government agencies, also play important role in foreign policy-making. The
Ministries of Defence, Commerce, and Finance provide input to foreign policy decision-making.
In the present context, the input provided by them has an important bearing in the foreign policy.
However, it is the Prime Minister or his office, the PMO which coordinates the role of various
Union Government agencies in foreign policymaking. The debate in Parliament on foreign affairs
and issues also gives input to foreign Policymaking in India.

Political Parties and Interest Groups

Since India is a functioning democracy, the role of political parties, media, and other interest
groups is receiving attention in foreign policymaking. National political parties articulate their
foreign policy perspectives in their manifestoes released during the elections. The ideology of
parties affects their foreign policy perspective.

For example, Communist Parties do not support close strategic relations with the US and other
western countries. The Bharatiya Janata Party supports nuclear power and the policy of
liberalization. It appears that political parties in India have developed a broad consensus in
favour of globalization. 

The role of business groups like FICCI and others has become more pronounced. Invariably
these groups form the part of government delegations to foreign countries. There are certain
lobbies in media and academic circles supporting close relations with certain countries, but such
lobbies have a very limited impact on foreign policymaking in India.

What is meant by India’s foreign policy?

India’s foreign policy is fundamentally based on the principles of peaceful co-existence,
friendship and co-operation among all the countries of the world irrespective of their political
systems.
What are the main features of India’s foreign policy?
The main Five Principles of India’s Foreign Policy are: Mutual respect for each other’s
territorial integrity and sovereignty, ii. Mutual non-aggression, iii. Mutual non-interference,
iv. Equality and mutual benefit, and v. Peaceful co-existence.

What are the five goals of foreign policy?

The main goals of India’s Foreign Policy are maintaining national security, supporting
democracy, promoting world peace, providing aid, establishing open trade.
Challenges to Indian Foreign Policy
(Sir notes 1. Aggressive China 2. Compromising Non-Align Movement)

 A Stronger China: China is the only major country that had a

positive growth rate at the end of 2020, and its economy is poised
to grow even faster in 2021.
o Militarily, China has further strengthened itself and now seeks
to dominate the Indo-Pacific Ocean with its announcement of
its third aircraft carrier’s launch in 2021.
o In this context, any breakthrough in Sino-Indian relations is
unlikely to occur, and the confrontation between Indian and
Chinese armed forces is expected to continue.
 Growing Russia-China Axis: Russia is beginning to display
more significant interest in its periphery’s affairs. Moreover, the
sanctions imposed on Russia after Crimea's annexation in 2014
has pushed Russia towards a tighter embrace of China.
o This seems to signal reduced interest in countries such as
India.
o Also, India’s closeness to the U.S. has weakened its links with
traditional friends such as Russia and Iran.
 Self-Imposed Isolation of India: Currently, India remains
isolated from two important supranational bodies of which it used
to be a founding member, viz., the Non-Aligned Movement
(NAM) and the South Asian Association for Regional
Cooperation (SAARC).
(OPT-What is Indian foreign policy 2021?)

PHASES OF INDIA’S FOREIGN POLICY: -

There are six phases of India’s foreign policy which are given below: -
The first phase (1947-62): - Optimistic Non-Alignment
  In the era of Cold war and Bipolar world headed by USA and USSR India
chose to be non-aligned
 India’s objectives in this phase were to resist dilution of its sovereignty,
rebuild its economy and consolidate its integrity.
 India was the founding member of NAM in 1961
 India played a critical role in the establishment of the Non- Alignment
Movement (NAM) in 1961 which marked the peak of Third World solidarity.
 However, the 1962 conflict with China not only brought this period to an end
but in a manner that significantly damaged India’s standing on NAM.
 In this era India was just focused on economic development and not the
development of Military.
The second phase (1962-71): -Decade of Realism and Recovery
 After the war of 1962, India made pragmatic choices on security and
political challenges.
 It looked beyond non-alignment in the interest of national security,
concluding a now largely forgotten defence agreement with the US in 1964.
 India faced external pressures on Kashmir (Tashkent agreement 1965) from the
US and UK.

The third phase (1971-91): - Greater Indian Regional Assertion

 India showed remarkable use of hard power when it liberated Bangladesh in
the India Pakistan war in 1971.
 US-China-Pakistan axis threatened India’s prospect as a regional power.
 India also faced sanctions from US and its allies after conducting a Peaceful
nuclear explosion test in 1974 (Pokhran I).
 The collapse of the USSR, India’s close ally, and the economic crisis in 1991
compelled India to look again at the first principles of both domestic and foreign
policy. The combination of event.
 The combination of events as diverse as the Gulf War (1991-1992), the
disintegration of USSR in 1991, long standing economic stagnation and domestic
turbulence came together in 1991, creating a balance of payment crisis in India.

The fourth phase (1991-98): - Safeguarding Strategic Autonomy

 The emergence of a Unipolar World led by the USA, encouraged India to
change its approach to world affairs.
 LPG (Liberation, Privatization and Globalization) Reforms in India was
brought by P.V. Narsimha Rao with the help of Dr. Manmohan Singh.
 India opened its diplomatic relations and maintained the diplomatic
relations with several countries such as Israel, ASEAN Nations, Kazakhstan
etc.
 In 1998 India tested the second nuclear test in Pokhran and again India was
imposed economic sanctions by USA, UK, and other European powers.
 The fifth phase (1998-2013): - India, a Balancing Power
 In this period, India gradually acquired the attributes of a balancing power
against the rise of China
 It is reflected in the India-US nuclear deal (123 Agreement). It was a landmark
deal between USA and India done by then Prime Minister Dr. Manmohan
Singh.
 At the same time, India could also make common cause with China on climate
change and trade and consolidate further ties with Russia while helping to
fashion BRICS into a major global forum.

The sixth phase (2013-until now): -Energetic Engagement

 In this phase of transitional geopolitics, India’s policy of Non-Alignment has
turned into Multi Alignment.
 India is now more aware of its own capabilities and the expectations that the
world has of India.
  India is among the major economies of the world is one factor.
 The relevance of India’s talent in creating and sustaining global
technology, is also likely to grow in time.
 India’s willingness to shape key global negotiations such as
conference in Paris on climate change is equally significant.
 India has been able to assert itself beyond South Asia, through its
approach towards the Indian Ocean Region (SAGAR initiative) and
the extended neighborhood (Act East policy and Think West policy).

Non-Aligned Movement (NAM)

The NAM is an international forum of 120 developing countries that believe in the idea of non-
alignment with the major power blocs. It was established in 1961 in Belgrade, former
Yugoslavia under the leadership of the then Indian Prime Minister Pandit Jawaharlal Nehru,
President of Egypt Gamal Abdel Nasser and the President of Yugoslavia Josip Broz Tito.

 In the aftermath of the Second World War and the decolonisation process, many
countries in the developing world in Asia and Africa felt the need for a strong movement
towards securing peace and prosperity and establishing security for all countries.
 This was when the world was divided into two power blocs, that of the USA and the
Soviet Union, especially after the signing of the NATO and the Warsaw Pact.
 Most of these countries felt the need for mutual cooperation and coordination with
respect to not formally aligned with or against any of the power blocs.
 The collapse of colonialism and the cold war led to the need for improved coordination
among the Global South.
 It is interesting to note that the term ‘third world’ arose during the cold war era to denote
countries that were not aligned to either of the two power blocs.
NAM Functioning
NAM does not have a permanent secretariat or a formal hierarchy. 
  Its administration is rotational and non-hierarchy. 
 NAM takes decisions by consensus, which need not be universal, but only requires
substantial agreement.
 It has a Coordinating Bureau which is based at the UN in New York City.
 NAM meets every three years at the NAM Summit Conference of Heads of State.
 At the Summit, a chair is chosen, which is a post held for three years.
 In NAM, every member country has equal weight.
 The current chairperson of NAM is Ilham Aliyev, the President of Azerbaijan. He holds
the post till 2022.

NAM Objectives
One of the chief objectives of NAM was “to create an independent path in world politics that
would not result in member States becoming pawns in the struggles between the major powers.”

 The three elements that define the approach of the organisation are:

 Right of independent judgement

 Struggle against imperialism and neo-colonialism
 Use of moderation in relations with all big powers
 In the current times, an objective of the organisation is restructuring the international
economic order.
 NAM espouses ideals such as the right to self-determination, anti-apartheid, anti-
colonialism, national independence, territorial integrity and sovereignty of nations, anti-
imperialism in all forms, non-adherence to multilateral military pacts, disarmament,
against racism, against foreign occupation and domination, peaceful coexistence among
all countries, strengthening the UN, no use of threat of force in international relations,
socio-economic development, etc.

Principles
As J.L Nehru was founding members, the principles of NAM was largely
guided by Panchsheel principles, some of them are:

 Respect for the principles enshrined in the charter of the United

Nations and international law.
 Respect for sovereignty, sovereign equality and territorial integrity
of all States.
 Peaceful settlement of all international conflicts in accordance
with the charter of the United Nations.
 Respect for the political, economic, social and cultural diversity of
countries and peoples.
 Defence and promotion of shared interests, justice and
cooperation, regardless of the differences existing in the political,
 economic and social systems of the States, on the basis of mutual
respect and the equality of rights.
 Respect for the inherent right of individual or collective self-
defence, in accordance with the charter of the United Nations
 Non-interference in the internal affairs of States. No State or
group of States has the right to intervene either directly or
indirectly, whatever the motive, in the internal affairs of any other
State.
 Promotion and defence of multilateralism and multilateral
organisations as the appropriate frameworks to resolve, through
dialogue and cooperation, the problems affecting humankind.
Failures of Non-Aligned Movement:

 In principle, the responsibility of NAM is to ensure the neutrality of nations, but in

practice many NAM countries have not lived up to it. 
 The policy of NAM has failed to provide any security to the member countries.
 To get cooperation Non-Aligned countries have signed many contracts with both
super powers. 
 NAM has not also provided the economic security to its member states. 
 The founders of NAM India, Egypt and Yugoslavia could not make any change in the
hostile policies of the two leaders. 
 For example: China tightened its hold on Tibet.
 The Arabs and Israel fought four wars but no NAM country played any active role in
stalling them.
 In the freedom struggle of countries like Algeria, Angola and Mozambique, the role of
NAM countries has been negligible. 
 NAM was unsuccessful in ending the aggressive policy of superpowers.
 Failed to resolve regional tensions: In the era of cold war the
tension in South Asia escalated due to regional conflict
between India- China and India-Pakistan. NAM failed to avoid
tensions in the region, that further led to the the nuclearisation
of the region.
India’s Position
 India being a founder and largest member in NAM was an active
participant in NAM meetings till 1970s but India’s inclination
towards erstwhile USSR created confusions in smaller members.
It led to the weakening of NAM and small nations drifted towards
either US or USSR.
 Further disintegration of USSR led the unipolar world order
dominated by US. India’s New Economic Policy and inclination
 towards US raised questions over India’s seriousness over non
alignment.
 Prime Minister of India skipped the 17th Non Aligned Movement
(NAM) summit held in Venezuela in 2016, it was only second such
instance when Head of a state didn’t participate in NAM
conference.
 Moreover, NAM continued losing relevance for India in a unipolar
world, especially after the founding members failed to support
India during crisis. For instance, during 1962 War with China,
Ghana and Indonesia, adopted explicitly pro-China positions.
During 1965 and 1971 wars, Indonesia and Egypt took an anti
India stance and supported Pakistan.
 India in particular, but also most other NAM countries, have
integrated themselves to varying degrees within the liberal
economic order and have benefited from it.
 India is a member of the G20 (Group of 20 promotes global economic
growth, international trade, and regulation of financial markets).  and has
declared itself as a nuclear weapons power and has for all
practical purposes abandoned the call for global nuclear
disarmament.
 India has also engaged itself with new and old global powers.
India joining the Quadrilateral Security Dialogue (Quard), a
coalition seen by many as a counterforce to China’s rise in the
Indo-Pacific and Shanghai cooperation organisation led by
China shown India’s balancing approach in new world order.
 India is striving hard for a multipolar world order and asserting
itself as one of the player. Multi polar world order is very much
closed to NAM principles.
How India moved from NAM (Non-Align Movement) to all align.

India’s shift towards multi-Alignment:

1. Deepening India-U.S. ties: 
 Indian ties with USA has reached new heights despite of many issues.
 India signed a nuclear deal with US in 2008.
 India today is a signatory to 3 of 4 US foundational agreements that it signs with its
strategic defence partners that is LEMOA, COMACASA and GSOMIA.
 US changed the name of its Pacific command to Indo-Pacific command.

2. Reaffirming ties with Russia: 

  Russia is India’s long-term friend.
 The strong links that exist between the two nations still exist.
 Russia is regaining its position as India’s principal defence supplier.
 The list of agreements drawn up in Moscow covers nuclear, space, energy and
defence.
 Russia has committed to building additional nuclear reactors at Kudankulam (Tamil
Nadu) and in Andhra Pradesh.

3. Focus on Asia: 
 India is a member of QUAD which partners Japan, US, Australia, and India.
 It looks to further Indian interest in pacific region creating a major power bloc in the
region.
India is also member of major groupings such as BRICS, ASEAN and BIMSTEC etc.
Emphasizing Indian engagement in multiple global fronts.

4. Relations with China:

 India’s biggest border dispute is with China.
 Despite the 1962 war, serious localized fighting at the Nathu La and Cho La passes in
1967; and the Doklam stand-off in June 2017, China maintains good economic
relations with India.
 It was because of the maturity of political leadership on both sides, as well as a
commitment made by the two nations to non-violence three decades before.

5. Focus on middle east:

 Relations between India and Pakistan remain stagnant, but with other Islamic
countries like Saudi, Oman, Iran has deepened significantly.
 Significant investment has been made by Middle East countries in India.
 Middle East is one of major supplier of oil to India and relations with missile east
countries has reached new heights recently.

6. Change in attitude for Israel:

 India today has vibrant relations with Israel which were earlier marred with
Palestinian considerations.
 India’s traditional stance has always been of recognition of Arab rights of Palestine
and limited relations with Israel.

7. Relations with Japan:

 Japanese relations with India, is more than strategic, with defence, foreign policy, and
economic aspects all receiving attention.
 Japan’s willingness to cooperate on peaceful nuclear energy and willingness to
acknowledge India as a reliable and trustworthy nuclear power despite not being a
signatory to the Nuclear Non-Proliferation Treaty is again certain to have a positive
impact on nuclear establishments across the world.

Reason for shift towards multi-alignment:

 1. Economic needs of the fast-developing India had to be supported by opening of its
economy and getting more foreign assistance.
2. World that emerged post-soviet era saw the rise of US as both an economic and
strategic power. It was difficult to pursue India’s growth trajectory without engaging
with US.
3. Globalization, growing interdependence, and the emergence of transnational
challenges have pushed India to engage with multiple global partners.
4. Emergence of economic powerhouse in form of China has also posed a new challenge
in front of India.
5. Indian foreign policy is evolving to encompass the growing needs of its national
security and prosperity.

QUE. Do you think that the Non-Aligned Movement (NAM) has lost its sheen in today’s world? Give
reasons to support your opinion.

Ans. The Non-Aligned Movement is a Movement of countries representing the interests and priorities
of developing countries. The Movement has its origin in the Asia-Africa Conference held in Bandung,
Indonesia in 1955. Non-Aligned Movement was formed during the Cold War as an organization of
States that did not seek to formally align themselves with either the United States or the Soviet Union,
but sought to remain independent or neutral.

With the disintegration of the USSR and the end of the cold war in 1991, non-alignment, both as an
international movement and as the core of India’s Foreign Policy, lost some earlier relevance and
effectiveness. However, non-alignment retained some core values and enduring idea, after the end of
the cold war it started giving more importance to economic ideas.

NAM is still relevant today. This is because of the following reasons:

 NAM was based on the principle that decolonised countries share a historical affiliation and
can become powerful if they all come together. This affiliation is still relevant.
 NAM stressed on the idea that it is not necessary for small and poor countries in the world to
follow any powerful country if they are able to follow any independent foreign policy.
 NAM is also based on the value of democratizing the international system by thinking about
an alternative world order to address several issues such as poverty and existing inequalities.
 With the emergence of neo colonialism ( use of economic, political, cultural or other pressure
to influence former colonies), many newly independent nations were unable to take concrete
decisions in the economic fields due to the pressure exerted by the powerful nations and
organisations like the World Bank, WTO, IMF etc. Under such circumstances, NAM came
forward to help these countries in trying to assert their economic rights.
 USA off late has emerged as a powerful nation. NAM has immense potentialities and
experience to prevent the dominating of USA over countries like Iraq and Afghanistan.
Thus, NAM still remains an important and powerful force which aims at achieving international
peace, disarmament and economic development. Non-Alignment has not lost its relevance rather it
has stood the test of time. It has served the useful purpose of protecting and preserving the interest of
the Third World countries well in the past, so it is also expected to serve their interest well in the
future to come.

South Asian Association for Regional Cooperation

(SAARC)
The South Asian Association for Regional Cooperation (SAARC) was established with
the signing of the SAARC Charter in Dhaka on 8 December 1985.

 The idea of regional cooperation in South Asia was first raised in

November 1980. After consultations, the foreign secretaries of the
seven founding countries—Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan, and Sri Lanka—met for the first time in Colombo
in April 1981.

 Afghanistan became the newest member of SAARC at the

13th annual summit in 2005.
 The Headquarters and Secretariat of the Association are
at Kathmandu, Nepal.
Principles
 Cooperation within the framework of the SAARC shall be based
on:

o Respect for the principles of sovereign equality, territorial

integrity, political independence, non-interference in the
internal affairs of other States and mutual benefit.
o Such cooperation shall not be a substitute for bilateral and
multilateral cooperation but shall complement them.
o Such cooperation shall not be inconsistent with bilateral and
multilateral obligations.
Members of SAARC
SAARC Member States SAARC Observer States

1. Afghanistan 1. Australia
2. Bangladesh 2. China
3. Bhutan 3. European union
4. India 4. Iran
5. Maldives 5. Japan
6. Nepal 6. Mauritius
7. Pakistan 7. United States
8. Sri Lanka 8. Myanmar
9. Republic of Korea

Areas of Cooperation among SAARC Nations

  Agriculture and Rural Development
 Human Resource Development and Tourism
 Economic, Trade and Finance
 Social Affairs
 Environment, Natural Disasters and Biotechnology
 Education, Security and Culture and Others
 Information and Poverty Alleviation
 Energy, Transport, Science and Technology

The Objectives of the SAARC

 To promote the welfare of the people of South Asia and to
improve their quality of life.
 To accelerate economic growth, social progress and cultural
development in the region and to provide all individuals the
opportunity to live in dignity and to realize their full potentials.
 To promote and strengthen collective self-reliance among the
countries of South Asia.
 To contribute to mutual trust, understanding and appreciation of
one another’s problems.
 To promote active collaboration and mutual assistance in the
economic, social, cultural, technical and scientific fields.
 To strengthen cooperation with other developing countries.
 To strengthen cooperation among themselves in
international forums on matters of common interests; and
 To cooperate with international and regional organizations with
similar aims and purposes.

SAARC – Structure
SAARC has the following structure:

1. Council – It is the apex policy-making body. The council is represented by government

heads of the respective member countries.
2. Council of Ministers – The Council of Ministers comprises the foreign ministers and they
meet generally two times annually.

Council of Ministers – Functions

1. Policy formulation
2. Reviewing the progress of regional cooperation
3. Identifying newer areas of cooperation, and
4. Setting up additional mechanisms as required
Standing Committee of Foreign Secretaries

The Committee provides overall monitoring and coordination, determines priorities, mobilizes
resources, and approves projects and financing.
Secretariat
It is headed by the Secretary-general appointed by the Council of Ministers. The main functions
of the Secretariat are as follows:

1. Coordination and execution of activities conducted by SAARC

2. Monitoring the SAARC meetings
3. Work as a communication link between SAARC and other international summits and
forums.

SAARC and its Importance

 Creating synergies: It is the world’s most densely populated
region and one of the most fertile areas. SAARC countries have
common tradition, dress, food and culture and political aspects
thereby synergizing their actions.
 Common solutions: All the SAARC countries have common
problems and issues like poverty, illiteracy, malnutrition, natural
disasters, internal conflicts, industrial and technological
backwardness, low GDP and poor socio-economic condition and
uplift their living standards thereby creating common areas of
development and progress having common solutions.
SAARC Achievements
 Free Trade Area (FTA): SAARC is comparatively a new
organization in the global arena. The member countries have
established a Free Trade Area (FTA) which will increase their
internal trade and lessen the trade gap of some states
considerably.
 SAPTA: South Asia Preferential Trading Agreement for
promoting trade amongst the member countries came into effect
in 1995.
 SAFTA: A Free Trade Agreement confined to goods, but
excluding all services like information technology. Agreement was
signed to reduce customs duties of all traded goods to zero by the
year 2016.
 SAARC Agreement on Trade in Services (SATIS): SATIS is
following the GATS-plus 'positive list' approach for trade in
services liberalization.
 SAARC University: Establish a SAARC university in India, a food
bank and also an energy reserve in Pakistan.
Significance for India
 Neighbourhood first: Primacy to the country’s immediate
neighbours.
 Geostrategic significance: Can counter China (OBOR initiative)
through engaging Nepal, Bhutan, the Maldives and Sri Lanka in
development process and economic cooperation.
 Regional stability: SAARC can help in creation of mutual trust
and peace within the region.
 Global leadership role: It offers India a platform to showcase its
leadership in the region by taking up extra responsibilities.
 Game changer for India’s Act East Policy: by linking South
Asian economies with South East Asian will bring further
economic integration and prosperity to India mainly in the
Services Sector.
Challenges
 Low frequency of meetings: More engagement is required by
the member states and instead of meeting biennial meetings
should be held annually.
 Broad area of cooperation leads to diversion of energy and
resources.
 Limitation in SAFTA: The implementation of SAFTA has not
been satisfactory a Free Trade Agreement confined to goods,
excluding all services like information technology.
 Indo-Pak Relations: Escalated tension and conflict between
India and Pakistan have severely hampered the prospects of
SAARC.
Future SAARC
 In a region increasingly targeted by Chinese investment and
loans, SAARC could be a common platform to demand more
 sustainable alternatives for development, or to oppose trade tariffs
together, or to demand better terms for South Asian labour around
the world.
 A lot is needed to be done in the future to strengthen SAARC. Member countries need to
put joint efforts towards agricultural research as food security is a common problem with all
countries. The higher degree of cooperation is needed in the fields of infrastructure
development, higher education, energy cooperation etc.

What are the problems of SAARC?

 SAARC has faced problems in the past, mostly attributed to India-Pakistan hostilities.
India’s problems with Pakistan over Kashmir, terrorism, and nuclear issues have affected
the working of SAARC since its inception.

South Asian Free Trade Area (SAFTA)

The South Asian Free Trade Area was signed in 2004 and came in to effect on January 1st
2006. The members of SAARC signed the agreement in order to promote and sustain mutual
trade and economic cooperation within the region.
SAFTA required the developing countries in South Asia (India, Pakistan and Sri Lanka) to bring
their duties down to 20 per cent in the first phase of the two-year period ending in 2007.
While the least developing countries (LDC) consisting of Nepal, Bhutan, Bangladesh,
Afghanistan and the Maldives had an additional three years to reduce tariffs
The basic principles regarding SAFTA are as follows:

1. Reciprocity and mutuality of advantages in order to benefit equally by considering the

level of economic trade, industrial development and trade and tariff systems
2. Negotiation of tariff reform which will be implemented in successive stages through
periodic reviews.
3. Recognition of the special needs of the Least Developed countries  and agreement on
concrete preferential measures in their favour
4. Inclusion of all products, manufactures and commodities in their raw forms

The purpose of the SAFTA is to encourage and elevate common contract among countries such
as medium and long-term contracts. Contracts involving trade operated by states, supply and
import assurance in respect of specific products etc. 

The objective of the South Asian Free Trade Area

The primary objective of the agreement is to promote competition in the region while providing
proper benefits to the countries involved. The agreement will benefit the people of South Asia by
bringing transparency and integrity among the nations by reducing tariff and trade barriers.

Benefits and Concerns regarding SAFTA

The South Asian Free Trade Area agreement could boost foreign investment in SAARC Nations
provided such investments don’t harm the domestic industries of member-nations.
The World Bank in its reports has shown that nations who have been involved in Free Trade
Agreements have had higher instances of economic growth compared to countries that were not.

The underlying concern is that some items may be rerouted through

the nations involved in SAFTA. One example is the palm oil trade
where India restricted its imports from Malaysia. But Malaysia
apparently bridged this loophole by diverting its trade through other
SAARC member states.
Look East Policy
(Refer Class Notes)
Look East Policy of India was launched in 1991 by the Government of India led by the former
Prime Minister Narasimha Rao. The objective was to develop political, economic and security
co-operation with countries in Southeast Asia. After the cold war, India wanted to act as a
counterweight to China in Southeast Asia.

Important Facts about Look East Policy of India

1. The look east policy tends to connect to ASEAN and the East Asian nations with
an asianisation content.
2. India has made several multilateral agreements with East Asian nations that have
boosted India’s act east policy.
3. The significant bilateral relationships are mentioned below:

 India-China Relations
 India-Myanmar Relations
 India-Sri Lanka Relations
4. Other forums, regional groupings or platforms that have supported India’s look east
policy are mentioned below:
 BCIM – Bangladesh, China, India and Myanmar Economic Corridor
 BIMSTEC – Bay of Bengal Initiative of Multisectoral Technical and & Economic
Cooperation
 SAFTA – South Asian Free Trade Area
 ASEAN – Association of South Eastern Asian Nations
 EAS – East Asia Summit
 MGC – Mekong-Ganga Cooperation
5. Several governmental initiatives that boosted India’s Look East Policy are:
 Trans Asian highway starting from Singapore to Istanbul passing through India
 Trans Asian Railway from Delhi to Hanoi
 800 km long Trans-National Gas Pipe Line between Myanmar, Bangladesh and
India

Significance of India’s Look East Policy

1. The North-Eastern states of India were given a direct role under the Look East Policy.
2. Opening the doors for maritime (marine security) oriented look east policy by bringing in
pictures the coastal states of East India. This way it will help to build relations with south
eastern nations that are dominantly coastal.
3. The look east policy was seen as a step towards competing China’s presence in East
Asia.

Difference between Act East Policy (2014) and Look East Policy
(1991)
 Act East Policy
Act East Policy was launched in 2014
It was launched by the Current Prime Minister of
India – Narendra Modi
India was in a very favourable position from the
perspective of economic might when the Act East
Policy was launched in 2014.
Focus is more on boosting economic co-
operation, building infrastructure for greater
connectivity, importantly strategic & security ties
This was initiated to tackle the changing Geo-
political scenario due to dominance by China, in
the South China Sea and its increasing influence
in the Indian Ocean Region.
Act East Policy has a greater strategic and
political angle to the cooperation. Relationships
with Japan, South Korea, Vietnam, Malaysia, and
Australia have been upgraded to a strategic
partnership to counter the dominance of China in
the entire region.
Focusing more on historical, cultural, linguistic,
and religious ties through more people-to-people
exchanges.
Heavy focus is being given to the development of
the North East region. India believes that the
North East region of India can be the gateway to
East Asia and Southeast Asia. Japan is helping
India by providing funds for many infrastructure
projects.
India is collaborating with Japan in developing
infrastructure in Sri Lanka, Myanmar, and
Bangladesh
Greater focus on defence cooperation  Not much focus on defence cooperation
Some of the similarities between the Act East Policy of 2014 and the Look East Policy of 1991
are listed below.
1. Shared Economic Interests
2. Common Strategic Interests
Impediments to regional cooperation
Look East Policy
Look East Policy was launched in 1991
It was launched by former Prime Minister of India – PV
Narasimha Rao
India had a very fragile economy when Look East Policy
was launched, due to the 1991 Economic crisis. India was
in a transition phase to a liberalized economy.
Focus more on boosting economic co-operation.
The Indian economy was heavily dependent on the Soviet
Union, but the fall of the Soviet Bloc propelled India to
look at alternative regions, i.e. South East Asia to sustain
the economy. India realized there was immense scope for
growth in the region, as Japan and China had already
become major economic players in the region.
The focus was more on boosting trade and investment
relations with Southeast Asian countries. There was not
much focus on Quad – India, USA, Japan, and Australia
or up-gradation to the strategic partnership with other
nations in the region.
Historical ties between India and ASEAN were not given
much prominence and therefore not capitalized in its
Look East Policy.
North East of India was neglected in its plans of forging
deeper ties with East Asia.
India did not focus on developing infrastructure in other
countries.
River water disputes

Trans-Boundary Water Conflicts

 With about 4% of the water resources of the world, India should
have been a water-adequate nation. However, in 2011 India
turned into a water-stressed nation.
 It uses the largest amount of groundwater - 24% of the global
total, more than that of China and the US combined.
 This situation is further aggravated by the India’s water disputes
with its neighbours and inter-state river water disputes in India.
India’s Water Disputes with its Neighbours
 Water remains a politically contested issue in much of South
Asia. The region is facing water shortage and agrarian difficulties,
and it will continue to face increasing demands on energy and
water with rapid industrialisation.
 Over-extraction of groundwater is of particular concern, with an
estimated 23 million pumps in use across Bangladesh, India,
Nepal and Pakistan.
 Combine these factors with the impact of climate change that’s
reducing the amount of water in the Brahmaputra basin and
changing the patterns of water flow.
 Under such circumstances, the increasing need for power and
stable water levels could prompt reconsideration in bilateral
water-sharing treaties in future.
India-China Water Dispute
 Both Brahmaputra and the glaciers that feed Ganga originate in
China. China maintains an advantageous position and can build
infrastructure to intentionally prevent water from flowing
downstream.
 Owing to previous tendencies where the Chinese have been
reluctant to provide details of its hydro-power projects, there
is a trust deficit between the two neighbours.
 China’s dam-building and water division plans along the
Brahmaputra is a source of tension between the two
neighbours.
  India and Bangladesh rely on the Brahmaputra’s water for
agriculture.
 China has now plans to build four more dams on the
Brahmaputra in Tibet. Both India and Bangladesh worry that
these dams will give Beijing the ability to divert or store water in
times of political crisis.
 India, for its part, has built dams on the Teesta River, a
tributary of the Brahmaputra, to utilise the flow of the Teesta
during the dry season.
India–Bangladesh
 Sharing the waters of the Teesta River, which originates in the
Himalayas, is perhaps the most contentious issue between two
friendly neighbours, India and Bangladesh.

 Bangladesh has sought an “equitable” distribution of Teesta

waters from India, on the lines of the Ganga Water Treaty of
1996, but to no avail.

 In 2015, Prime Minister Narendra Modi’s visit to Dhaka has

generated some expectations to take forward the previous issues
on fair and equitable water sharing agreement.

 But Teesta remains an unfinished project, as in India

individual states have significant influence over transboundary
agreements. For example, one of the key stakeholders of the
Teesta agreement, West Bengal is yet to endorse the deal.
India–Nepal

 Water cooperation between Nepal and India have

been agreements signed on major rivers like Kosi, Gandaki,
Karnali or Mahakali, essentially for large hydroelectric and
irrigation projects by building dams or barrages.
 No project except the Kosi barrage has been completed
yet. Smaller rivers have also been ignored.
 Since 1954, when the Kosi Agreement was signed between
India and Nepal, there have been various disputes over this
agreement fuelled by floods in the Kosi region.
  The problem with the Kosi River is its high level of
sedimentation and embankments have proven to be
ineffective to tackle the sedimentation.
 The only available option in this case is storage tanks and
these cannot be set up without the cooperation of Nepal.
 The dispute between India and Nepal might seem minor but it
gains strategic importance, because the disputed area lies
near the Sino‐Indian border.
India–Pakistan Water Dispute
 Both India and Pakistan since partition have
experienced friction over various water conflicts.
 Both countries signed an accord called the Indus Waters
Treaty in 1960, which clearly determined how the region’s
rivers are to be divided.
 In this treaty, control over three eastern rivers of the Beas,
Ravi and Sutlej was given to India, while Pakistan got the
control over western rivers of the Indus, Chenab and Jhelum.
 However, the situation for Pakistan has changed significantly
from 1960s till the present moment, as it is now on the brink of
water scarcity.
 The source or flow of all of the Pakistan’s rivers pass through
India first, so this naturally provides India with an upper
hand in controlling the outflow of these rivers.
 The Indian Government has more than 40 projects that are
either already completed or in the proposal stage on the
western rivers. The carrying of such activities within the
western rivers has irked Pakistan.
 On the other hand, India keeps dismissing these accusations of
Pakistan as baseless and without any scientific backing.
 The latest dispute is over hydroelectric projects that India is
building along the Chenab River. According to Pakistan, these
projects violate the treaty and will impact its water supply.
India–Bhutan

 India and Bhutan hydro-electric power cooperation started

more than five decades ago.
  Bhutan has the potential to generate 30,000 MW of hydro-
power.
 In 2006, both countries inked a Power Purchase Agreement
for thirty five years that would allow India to generate and
import 5000 MW of hydro-power from Bhutan, the quantum of
which increased to 10,000 MW in 2008.
 On the other hand, the people of Bhutan raised objections to
such projects on their long run effects in the country.
Inter-State Water Disputes
Currently in India, water disputes resolution is governed by the Inter-State Water Disputes Act,
1956. As per this law, the state governments can approach the centre for a tribunal for the
resolution of a water dispute. The decision of the tribunal is final.
The very first inter-state water disputes tribunal was the Krishna Water Disputes Tribunal
formed in 1969. The states involved were Karnataka, Andhra Pradesh and
Maharashtra. Meanwhile, when Telangana was formed, it also became the fourth party to the
dispute. This case is pending in the Supreme Court.

 Inter-State Water Disputes (Amendment) Bill, 2017

This bill proposes that a single permanent tribunal be set up for the purpose of such disputes.
It proposes a transparent data collection system at the national level for each river basin and a
single agency to maintain data bank and information system. The government will also set up
a Dispute Resolution Committee comprising of experts from concerned fields. The committee
will try to resolve the dispute within one year. The tribunal will be approached only if the
committee fails to resolve the dispute.
Illegal Cross Border Migration

EXAMPLE- Rohingya

 The Rohingya people are a stateless, Indo-Aryan ethnic

group who reside in Rakhine State, Myanmar.
 They are described by the United Nations (UN) as one of
the most persecuted minorities in the world.
 The Rohingya refugee crisis is caused by the Rohingya
people having long faced violence and discrimination in
Myanmar.
 To escape discrimination and violence in Myanmar,
minority Rohingya Muslims have for decades fled from the
Buddhist-majority country to neighbouring Bangladesh and
other countries, including India.
 India has been witnessing immigration since independence. People who have faced
religious and political persecution, economic and social discrimination, cultural
repression and curbs on personal freedom have made India their home.
Many others have entered India to escape abject poverty and economic stagnation
in their country, and to build a better future for themselves. Of all kinds of
migration, illegal migration has become the most volatile and contentious issue.
Illegal migration comprises of people across national borders in a way that violates the
immigration laws of the destination country.
Despite such unabated illegal migration from Pakistan, Bangladesh, Myanmar and other
bordering countries, there are no authentic official statistics to ascertain the actual number of
illegal migrants in India. Currently, India is home to over two crore illegal migrants.
(Refugee- Refugees are persons who are outside their country of origin for reasons of
feared persecution, conflict, generalized violence, or other circumstances that have seriously
disturbed public order and, as a result, require international protection. Migrant-international
migrant is someone who changes his or her country of usual residence, irrespective of the
reason for migration or legal status. Generally, a distinction is made between short-term or
temporary migration, covering movements with a duration between three and 12 months,
and long-term or permanent migration, referring to a change of country of residence for a
duration of one year or more.)
Reasons for Illegal Migration in India
 Political Factors- Political factors have been one of the major reasons in forcing the
Bangladeshi Hindus out of the country and into India. The riots of 1964 and the
India–Pakistan War of 1965 yet again resulted in the out-migration of large numbers
of Hindus from East Pakistan.
 Religious Discrimination- Religion has a particular effect in the case of the
Rohingya Crisis. The so-called War on Terror—waged primarily against Muslims
around the world—has made it easier for Myanmar’s elites to label the Rohingya as
terrorists. The Rohingya Army’s attacks on government targets further validated
many citizens’ belief that Islam is inherently violent and poses an existential threat to
Buddhism, Myanmar’s majority religion.
 Growing Population- Growing population creates greater demands on resources
such as land, food, energy, water and forest products, and their consequent overuse
results in deterioration of quality. This process, in turn, encourages inequality in
resource distribution among the rich and poor as the rich corner them and deny the
poor their share.
 Stagnant Economic Growth and Lack of Employment- Industrialisation in India’s
neighbouring countries has not been able to keep pace with the growing labour force
 and as a result, the unemployment rate is declining. The working-age people who
are unable to find jobs in the country look outside for employment opportunities.
 Other Factors-
 Political patronage: Political parties have always exploited the vulnerability of the illegal
migrants for their own vested interests and benefits. The main reason that the political
parties protect the illegal migrants is that they consider the illegal migrants as potential vote
banks.
 Corruption by Security Personnel: The border-guarding personnel often collude with the
smugglers and touts for economic benefits.
Ethnicity: The ethnic composition of the people is similar on both sides of the
borders and it is quite difficult to differentiate between the citizens of India and other
countries.
 Impact of Illegal Migration in India
 Clashes due to Insecurity: Illegal migration has resulted in periodic clashes
between the citizens of India and migrants, leading to their loss of life and
property, and thereby violating their constitutional rights.
 Political Instability: Conflict over scarce resources, economic opportunities
and cultural dominance ensues between the locals and migrants, along with
the resultant political instability caused by the mobilisation of popular
perception against the migrants by the elites to grab political power.
 Disturbance in Law and Order: The rule of law and integrity of the country
are undermined by the illegal migrants who are engaged in illegal and anti-
national activities, such as entering the country clandestinely, fraudulently
acquiring identity cards, exercising voting rights in India and resorting to trans-
border smuggling and other crimes.
 Rise of Militancy: The persistent attacks against the Muslims perceived as
illegal migrants in Assam has given way to radicalisation within certain
sections of the Muslim community with the formation of militant organisations,
such as the Muslim United Liberation Tigers of Assam (MULTA).
 Human trafficking: In the recent decades, trafficking of women and human
smuggling have become quite rampant across the borders. Poverty and
hunger forces either the parents to sell the girls to traffickers or the girls
themselves leave home and fall prey to traffickers.
 Steps Taken by Government:
 Centre had issued instructions to the State governments and
Union Territory administrations, advising them to sensitise the
 law enforcement and intelligence agencies to take
appropriate steps for prompt identification of illegal migrants.
 Existing Legal Framework:
 The Passport (Entry into India) Act, 1920
 Foreigners Act, 1946
 The Registration of Foreigners Act, 1939
 The Citizenship Act, 1955:
 It provides for the acquisition and determination of
Indian citizenship.
 Moreover, the Constitution has also provided
citizenship rights for Overseas Citizens of
India, Non-Resident Indians, and Persons of Indian
Origin.
Ethnic Conflicts and Insurgencies

 North East India is the region situated in the eastern-most part of

India comprising of the eight states of Arunachal Pradesh, Assam,
Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
 The Northeast borders on four countries, namely, China and
Bhutan on its North; Myanmar on its East; and Bangladesh on its
South and West.
 It has 475 ethnic groups and 400 languages/ dialects are spoken
here.
History of conflicts in NE
The Northeast represents a state of stable anarchy where the rule of
law and other institutions of governance are subverted directly or
through collusive arrangements to serve personal or partisan ends of
the militants.
 Regional issues: The inter-tribal conflicts, the youth
unemployment and the inability to compete with non-tribal
businesses, illegal migration from neighbouring States and
countries leading to the competition of resources and land have
led to various conflicts and demands of secession/ autonomy.
 Gaps at national level: The broad racial differences between
India and its Northeast and the tenuous geographical link
contributed to a sense of alienation, a feeling of ‘otherness’ that
subsequently gave rise to a political culture of violent separatism.
 Ethnic tensions: Northeast India is home to more than 50 ethnic
rebel groups – a few demanding complete secession from India,
others fighting for ethnic identities and homelands and some
running the insurgency as an industry to spin easy money without
any political ideology.
 Militants in their formative years voiced genuine grievances of the
people such as poor governance, alienation, lack of development
and an apathetic attitude from the central government in New
Delhi. However, with time and opportunist motives, these have
taken forms of insurgencies across the region.
 The factors that led to the emergence of the different insurgent groups in the region
are:

Nagaland- Being a part of the larger state of Assam, it was the

first to experience militancy in pursuit of a grant of autonomy.

 Mizoram- It was a part of the state of Assam before it was

granted statehood in 1987, experienced militancy after the Union
government failed to respond positively to its demand for
assistance during the massive "Mautam famine". The Mizo
National Front (M.N.F.), demanded independence for Mizoram.
 Tripura- Migration of Hindus from the British-ruled East Bengal is
believed to have been responsible for reducing the indigenous
tribal people in the state to minority status; this development
sparked a violent backlash among the indigenous people. Militant
groups sprang up in the state demanding the restoration of the
tribal rights from the Bengali population.
 Assam- A movement that started demanding the deportation of
the illegal migrants also witnessed the birth of the militant outfit
the United Liberation Front of Assam (U.L.F.A.) and later on
other groups were also formed.
 Manipur- Militancy originated in protest against the forcible
merger of the former Manipur Kingdom with India. United
National Liberation Front formed in 1964, with an objective of
ending the discrimination against Manipur.
 Meghalaya-The Meghalaya state was carved out of the Assam
state, with an aim to address the unique needs of the major tribes
in the region: the Garos, the Jaintias and the Khasis. The rise
 of aspirations of tribal autonomy led to the emergence of several
insurgent groups in the state.
 Arunachal Pradesh- The state remains under peace more or
less in history but the proximity of state with Myanmar and
Nagaland border is gradually being afflicting insurgency in recent
time. The only case of indigenous insurgency movement in
Arunachal Pradesh was the rise of the Arunachal Dragon Force.
Military operations and AFSPA
 Special powers under AFSPA (Armed Forces Special Powers
Act) were bestowed on armed forces to deal with emergency
conditions. It is there in the whole of Assam, Nagaland, most of
Manipur, and some areas of Arunachal Pradesh.
 Military operations in Mizoram, where the army reportedly
launched air strikes to neutralize the M.N.F. cadres, resulted in
several fatalities and displacement among the civilian population.
 Assam rifle has been given the task to deal with insurgents in
Assam.
 The security scenario in the North East is constantly improving.
While there is almost no insurgency left in Tripura and Mizoram,
there has been a marked improvement in the security situation in
other States of the region.
Role of the Neighbours
 Neighbouring countries like China and Myanmar are accused of
promoting insurgency in the region.
 Pakistan, through its intelligence agency the I.S.I., is believed to
have assisted the militant groups in terms of training and finance.
 Militant camps in Nagaland, as well as Manipur, exist in the
bordering areas of Myanmar. 
 Bhutan remains the only country that successfully dislodged
several militant camps of the north-eastern groups through a
military operation launched in December 2003.
Current Situation
 There is absence of rule of law that these groups are still
operating. Chances of a political settlement are bleak because of
the kind of diversity it holds.
 While the government’s military options have achieved only
minimal results, lack of development continues to alienate the
people of the region further from the mainstream.
 The region has also received little attention from either the
national or the international media. Achievements by a separate
ministry created by the Indian government for the development of
the region remain minimal.
Suggestions
 Enhance communication and connectivity, infrastructure
improvement for better integration of the region with the mainland.
 Stringent law and fast criminal justice system for quick disposal of
insurgents attack cases.
 Greater coordination between central forces and state forces for
better tactical response.
 Greater cultural interaction with the rest of the country and socio-
economic development that includes a holistic inclusive
development.
 Decentralization with alertness, improving administrative
efficiency, pro-people governance and coping up with regional
aspirations.
Border Disputes of India
China
 4 states viz., Himachal Pradesh, Uttarakhand, Sikkim and
Arunachal Pradesh and a Union Territories of Ladakh (erstwhile
state of Jammu & Kashmir) share a border with China.
 Western Sector- t
is between Union Territory of Ladakh and Xinjiang
Province of China. In this sector, there is a territorial dispute
over Aksai Chin. India claims it as part of erstwhile Kashmir,
while China claims it is part of Xinjiang.
 Middle Sector- India
shares boundary with China which runs along
the watershed from Ladakh to Nepal.
 Himachal Pradesh and Uttarakhand touch this border with Tibet
(China) in this sector. Both sides do not have much disagreement
over the border in this area.
 Eastern Sector- India shares a long boundary with China.
 It runs from the eastern limit of Bhutan to a point near the Talu
Pass at the trijunction of Tibet, India and Myanmar.
 This boundary line is called McMahon Line.
 China considers the McMahon Line illegal and unacceptable
claiming that Tibetan representatives who had signed the 1914
Convention held in Shimla which delineated the McMahon line on
the map were not having rights to do so.
Pakistan
 Jammu and Kashmir, Pakistan-occupied Kashmir and Gilgit-
Baltistan.
 Siachen Glacier
o Saltoro Ridge- It is claimed as part of Jammu and Kashmir
Union Territory by India and as part of Gilgit-Baltistan by Pakistan.
India assumed military control of the main peaks and passes of
the range, with Pakistani forces into the glacial valleys just to the
west.
 Sir Creek- It is a 96 km long strip of water disputed between India
and Pakistan in the Rann of Kutch marshlands.
Nepal
Kalapani: Kalapani is a valley that is administered by India in
Uttarakhand. The latest political map of India reiterated the Indian
claims on the region that Nepal says belongs to its westernmost part.
India claims the historic region as part of Uttarakhand. The Kali
River in the Kalapani region demarcates the border between India
and Nepal.
Susta: Susta area is one of the disputed territories between India
(Uttar Pradesh) and Nepal.
 The change of course by the Gandak river is the main
reason for disputes in the Susta area.
Sri Lanka
 India and Sri Lanka have a maritime boundary. There were
tensions over the question of who owned Kachchatheevu Island
in the Palk Strait. It was given by India to Sri Lanka in 1974.
Bangladesh
There were some boundary disputes between India and
Bangladesh that were resolved by the implementation of the historic
“Land Boundary Agreement”.
Myanmar
 There is no border dispute between India and Myanmar.
However, certain sectors of the India-Myanmar boundary remain
to be demarcated.
Conclusion
 India’s unsettled boundaries pose major problems in its policy
towards its neighbours, especially China and Pakistan.
 It has not been possible for India to agree on the border with
China since China is laying unreasonable claims on territories that
have historically been India. There must be more constructive
diplomatic engagement between both countries to resolve their
decades-long border issues.
 Regarding Pakistan, both the countries should come on the table
sooner or later to discuss their contentious issues.
 India should engage constructively and generously with its smaller
neighbours like Nepal to deal the border issues.
NIEO

The New International Economic Order (NIEO) was a set of proposals put forward by
some of the developing countries in the 1970s. It was proposed by some of the countries
who refused to formally allign with the major power blocs led by US and USSR. These
proposals were put forward through the United Nations Conference on Trade and
Development (UNCTAD). It was intended to promote their interests by improving their
terms of trade, increasing development assistance, developed-country tariff reductions,
and other means. It was meant to be a revision of the international economic system in
favour of Third World countries, replacing the Bretton Woods system, which had
benefited the leading states that had created it – especially the United States.
NIEO is to be based on equity, sovereign equality, common
interest and co-operation among all States, irrespective of their
social and economic systems, which shall correct inequalities and
redress existing injustices, make it possible to eliminate the
widening gap between the developed and the developing countries
and ensure steadily accelerating economic and social development
and peace and justice for present and future generations.

Origin of NIEO:
The movement for the establishment of the NIEO is caused by the existing
deficiencies in the current international economic order and the gross failures of the
GATT and the UNCTAD in fulfillment of their vowed objectives.

The present international economic order is found to be a symmetrical in its working. It is

biased. It is favouring the rich-advanced countries.
Rich countries tend to have major control over vital decision making in the matter of
international trade, terms of trade, international finance, aids, and technological flows.
As a matter of fact, the basis for the NIEO is constituted by the U.N. Resolution in 1971, in
the seventh special session on “Development and International Economic Co-operation”
with various reforms in the area of international monetary system transfer of technology
and foreign investment, world agriculture and cooperation among the Third World
Countries.
It emphasises global interdependence. It seeks radical changes in allied social, economic,
political and institutional aspects of international relations.
New developing sovereign countries of the South have insisted on the NIEO. It has been
further supported by the non-aligned nations which vehemently criticised the
politicalisation of development and trade issues by the developed nations. The developing
nations are now asserting their right to participate in the decision making processes of the
international institutions like the IMF, World Bank, GATT, UNCTAD, etc.

Objectives of the NIEO:

The NIEO aims at social justice among the trading countries of the world. It seeks
restructuring of existing institutions and forming new organisations to regulate the flow of
trade, technology, capital funds in the common interest of the world’s global economy.

It suggests more equitable allocation of world’s resources through increased flow of

aid from the rich nations to the poor countries.

It seeks to overcome world mass misery and alarming disparities between the living
conditions of the rich and poor in the world as large.
Its aim is to provide poor nations increased participation and have their say in the
decision-making processes in international affairs.

The NIEO focus on the increased stabilisation of international floating exchange

system and the use of IMF funds as interest subsidy on loans to the poorest
developing countries.

The crucial aim of the NIEO is to promote economic development among the poor
countries through self- help and South-South co-operation.

The NIEO intends to deal with the major problems of the South, such as balance of
payments disequilibrium, debt crisis, exchange scarcity etc.

WTO
(Refer sir’s notes)
Why WTO replaced GATT?
While WTO came in existence in 1995.
There were certain limitations of GATT. Like –

1. It lacked institutional structure. GATT by itself was only the set of rules and
multilateral agreements.
2. It didn’t cover trade in services, Intellectual Property Rights etc. Its main
focus was on Textiles and agriculture sector.
3. A strong Dispute Resolution Mechanism was absent.
4. By developing countries it was seen as a body meant for promoting interests
of wests. This was because Geneva Treaty of 1946, where GATT was signed
had no representation from newly independent states and socialist states.

Accordingly WTO seeks to give more weightage to interests of global south in

framing of multilateral treaties.

WTO and India

 India is a founder member of the General Agreement on Tariffs
and Trade (GATT) 1947 and its successor, the WTO.
o India's participation in an increasingly rule based system in
the governance of international trade is to ensure more
stability and predictability, which ultimately would lead to more
trade and prosperity.
 Services exports account for 40% of India's total exports of
goods and services. The contribution of Services to India's
GDP is more than 55%.
o The sector (domestic and exports) provides employment to
around 142 million people, comprising 28% of the work-
force of the country.
o India's exports are mainly in the IT and IT enabled sectors,
Travel and Transport, and Financial sectors.
o The main destinations are the US (33%), the EU (15%) and
other developed countries.
o India has an obvious interest in the liberalisation of
services trade and wants commercially meaningful access to
be provided by the developed countries.
o Since the Uruguay Round, India has autonomously
liberalised its Services trade regime across the board.
 Ensuring food and livelihood security is critical, particularly for
a large agrarian economy like India.
o India is persistently demanding for a permanent solution on
public stockholding subsidies at WTO.
 At 2013 Ministerial Conference (MC9) in Bali, an interim
agreement (a peace clause) was made on “public
stockholding” continuing exceptions that allow developing
countries to stockpile agricultural products to protect
against food shortages.
 India strongly favours extension of higher levels of
protection to geographical indications for products like Basmati
rice, Darjeeling tea, and Alphonso mangoes at par with
that provided to wines and spirits under the Trade-related
Aspects of Intellectual Property Rights (TRIPS) agreement.
 Developed countries have been putting pressure on inclusion
of non-trade issues such as labour standards, environmental
protection, human rights, rules on investment, competition
policy in the WTO agreements.
o India is against any inclusion of non-trade issues that are
directed in the long run at enforcing protectionist
measures (based on non-trade issues, the developed
 countries like USA and European Union are trying to ban
the imports of some goods like textile, processed food etc.),
particularly against developing countries.

UN
(Refer sir’s notes)
Components
The main organs of the UN are

1. the General Assembly,

2. the Security Council,
3. the Economic and Social Council,
4. the Trusteeship Council,
5. the International Court of Justice,
6. the UN Secretariat

Demand for permanent seat in security council-

The UNSC is composed of 15 members, 5 permanent and 10 non-

permanent.
1. Five permanent members: China, France, the
Russian Federation, the United Kingdom, and the
United States.
2. Ten non-permanent members: Elected for two-
year terms by the General Assembly.
India’s Membership: India has served seven times in the UN
Security Council as a non-permanent member and in January 2021,
India entered the UNSC for the eighth time.
India has been advocating a permanent seat in
UNSC.
India’s Contribution:
India took active part in the formulation of the Universal
Declaration of Human Rights (UDHR) in 1947-48 and
 raised its voice passionately against racial discrimination
in South Africa.
India has played its part in formulating decisions on
several issues such as admitting former colonies to the
UN, addressing deadly conflicts in the Middle East and
maintaining peace in Africa.
It has contributed extensively to the UN, particularly
for the maintenance of international peace and security.
India has taken part in 43 Peacekeeping
missions with a total contribution exceeding
160,000 troops and a significant number of police
personnel.
As of August 2017, India is the third largest
troop contributor, with 7,860 personnel
deployed with 10 UN Peacekeeping Missions.
India's population, territorial size, GDP, economic
potential, civilisational legacy, cultural diversity, political
system and past and ongoing contributions to UN
activities make India’s demand for a permanent seat
in the UNSC completely rational.
India’s Geopolitical Footprint: India's acquired status of
a Nuclear Weapons State (NWS) in May 1998 also makes India a
natural claimant as a permanent member similar to the existing
permanent members who are all Nuclear Weapon States.
Representing the developing World: India is the undisputed leader
of the Third world countries, as reflected by its leadership role in
the Non-Aligned Movement.
Note

 In the past, India was offered to join the UNSC by both the

superpowers, the US and the then Soviet Union in 1950 and in
1955 respectively.

o However, India denied the offer due to Cold war politics in

that era.
 India is currently (in 2021 and 2022) a non-permanent member
of the UNSC and is president for the month of August.
 RoadBlocks in India’s Bid for Permanent Membership:

o It is argued by critics that India has still not signed

the Nuclear Non-Proliferation Treaty (NPT) and also
refused to sign the Comprehensive Nuclear-Test-Ban
Treaty in 1996.
o China, which has veto power in the UNSC being one of its
five permanent members, has been stonewalling India's
efforts to become a permanent member.
o Though India is a bright spot in the global economy and its
macroeconomic fundamentals are stable, it shows poor
performance in many socio-economic indicators like
the Human Development Index.
o India’s capacity to project its military power beyond the Indian
Ocean region is still to be tested. Further, India heavily relies
on weaponry imports from US and Russia for its military
requirements.

Describe any six criteria for the new membership of Security Council as suggested
after 1997.
Answer: A new member, as suggested after 1997, should be
(i ) A major economic power
(ii) A major military power.
(iii) A substantial contributor to the UN budget.
(iv) A big nation in terms of its populations.
(v) A nation that respects democracy and human rights
(vi) A country that would make the Council more representative of the world’s diversity in
terms of geography, economic system, and culture.

NPT
(Refer Sumit sir’s notes)
Introduction
Nuclear Proliferation Treaty is an international treaty, signed in 1968, which
envisages three objectives of non-proliferation, disarmament, and peaceful uses of
nuclear energy. However, India criticized this treaty for having structural flaws and
viewed it as an imbalanced instrument.

Body
India is one of the only five countries that either did not sign the NPT and due to the
following issues India considers the NPT as discriminatory and had refused to sign it.
 Failure of Disarmament Process: The NPT proposes no tangible disarmament
roadmap, no reference to testing ban or to the freezing of production of either fissile
materials or nuclear weapons, and omitted provisions for reductions and elimination.
 Nuclear ‘Haves’ and ‘Have-Nots’: India criticizes the treaty to be discriminatory as
it focuses on preventing only horizontal proliferation while there is no limit for vertical
proliferation.

o In this context, India demands that the Nuclear Weapon State (NWS) should
renounce its arsenals and further production in return for the commitment of Non-
NWS not to produce them.
 Discriminating Safeguards: Under International Atomic Energy Agency (IAEA)
protocols of nuclear safety, the NWS allowed maintaining ‘voluntary’ safeguards
while the rest were subjected to comprehensive safeguards, which seemed intrusive
and discriminatory to the NNWS.
 Emergence of Non-state Actors: The emergence of non-state actors with declared
intent to access weapons of mass destruction and the detection of a global nuclear
black-market, has raised concerns on the limitations of the NPT.

Conclusion
India has opposed the international treaties aimed at non-proliferation since they
were selectively applicable to the non-nuclear powers and legitimized the monopoly
of the five nuclear weapons powers. Thus, all nations should engage to carve out a
multilateral framework for the peaceful use of nuclear energy and global peace.

(Nuclear Arms Control Essay- https://byjus.com/free-ias-

prep/nuclear-arms-control/)

Nuclear Suppliers Group (NSG)

The Nuclear Suppliers Group (NSG) is a transnational body comprised of nuclear supplier
countries that aim to control the proliferation of nuclear weapons by curbing the export of
nuclear weapons development materials and related technology. It seeks to improve the
existing safeguards on existing nuclear materials.

NEW WORLD ORDER

Changing World Order

 Rise of Authoritarianism: Admittedly, the world has recently
seen the rise of authoritarian rulers in many countries. However,
this can hardly be viewed as a new phenomenon.
 o China has abandoned the ‘one country two
systems’ policy, stripping Hong Kong of its freedom and
inviting international opprobrium.
 Moreover, the human rights violation of Uighur
Muslims in Xinjiang and China’s aggressive posture
towards Taiwan could well become one of the flash
points of conflict.
o The other major risk of a war in 2022, stems from
the ongoing conflict between Russia and Ukraine — the
latter being backed by the U.S. and North Atlantic Treaty
Organisation (NATO) forces.
 The current unrest in Kazakhstan further bodes ill for a
world already wracked by a series of coups or
internecine strife as in Ethiopia, Libya and certain
regions of West Asia and North Africa.
o Taliban’s return to power in Afghanistan has led to
a material shift in the balance of power in an already
troubled region on India’s periphery.
 Developments in Afghanistan have fuelled the ambitions
of quite a few ‘anti-state militant groups’ across the
region.
o Adding to such concerns is new evidence that on India’s
eastern flank, viz. Indonesia, a resurgence of radical
Islamist activities is taking place.
 Expanding Chinese Dominance: The role of China is possibly
the most disrupting one, given the challenge it poses to the
existing international order.
o Militarily, China is openly challenging U.S. supremacy in
many areas, including ‘state-of-the-art weaponry’ such
as hyper-sonic technology.
o The dip in China’s economic profile in the past year and more
could also lead to new tensions in the Asia-Pacific region in
2022.
o Moreover, China’s expansionist policies via its Belt and
Road Initiative is also being seen as a threat by other global
powers such as the US, EU, the G7 Countries as well as by
India.
 India’s Border Issues: The persistent two-front threat from
Pakistan and China set the stage for a tough continental
dimension of India’s security. There has been
increased militarisation of the borders with Pakistan and
China.
o The transgressions across the Line of Actual Control in
different sectors in Ladakh could well be expanded in 2022.
o Hence, the year is unlikely to witness any reduction in
tensions across Ladakh or in any other conflicted areas.
 Challenges for India in West and Central Asia: In Central
Asia, India will be challenged on how best to manage its
traditional friendship with Russia with the pronounced tilt seen
more recently in India-U.S. relations.
o In West Asia, the challenge for India is how to manage its
membership of the Second Quad (India, Israel, the UAE
and the U.S.) with the conflicting interests of different players
in the region.
o Indian diplomacy will be under severe test to manage the
extant situation in both regions.

India-US Relations
Divergence In India-US relations
Trade Deal: Trade has been a major bone of contention between
India and the US. India has been referred by the US, as “tariff
king” that imposes “tremendously high” import duties. Donald
Trump formulated America First policy, on the economic dimension,
it means reducing the U.S.’s trade deficits with major trading partners,
including India.
 US-Pakistan Equation: US has softened its position on Pakistan,
due to the role Pakistan can play in the Afghan deal (between the
US and the Taliban). In return, Pakistan wants the US to engage
with India on the Kashmir issue (internationalising the Kashmir
issue). Whereas India maintains the view that Kashmir is a
bilateral issue between India and Pakistan and no third party can
be engaged in it.
  Internal Issues in India: India-US strong strategic partnership
is also based on an idea of “shared values” of democracy,
rule of law, religious freedom and protection of minorities.
However, the revocation of Article 370, the new citizenship law
and the NRC is testing this “shared values” principle. Though
the US president maintained that these matters are internal to
India, criticism from the US Congress and some parts of US
civil society is pushing the US administration to tell India to
bring Kashmir to normalcy and not go ahead with the new
citizenship law followed by the NRC.
Convergence in Indo-US relations
 A foundational military agreement that allows for the sharing of
encrypted communications and equipment (COMCASA-
Communications Compatibility and Security Agreement).
 A change in U.S. export control laws that places India in a
privileged category of NATO and non-NATO U.S. allies.
 The signing of an Industrial Security Annex that will allow for
greater collaboration among the two countries’ private defence
industries.
 A new ‘2+2’ foreign and defence ministers dialogue.
 The bilateral Strategic Energy Partnership was launched in April
2018 under which India has started importing crude and LNG from
the US. Now, the US is India’s sixth-largest source of crude oil
imports and hydrocarbons.
 Inauguration of the first India-US tri-service military exercise and
expansion of existing military exercises.
 Inclusion of India and South Asia in the US Maritime Security
Initiative.
 These intense engagement has helped achieve robust support
from the US against terrorism.

o This was evident after the Pulwama attack, leading to the

designation of Jaish-e-Mohammad chief Masood Azhar as a
global terrorist under UN Security Council Resolution 1267.
o Also, placing Pakistan on the grey-list of the Financial Action
Task Force.
 The US under its Pivot to Asia policy views India as an ideal
balancer to check the aggressive rise of China. Therefore, the US
has formulated the concept of Indo-Pacific to counter China in the
South China Sea and the Indian ocean.
 The US has designated India as an integral part of the Indo-
pacific narrative by the conception of Quad.

India-Russia Relations

 Diplomatic Ties: India and Russia are together in multiple forums

including BRICS and Shanghai Cooperation Organisation
(SCO).

o India helped the induction of Russia as a dialogue partner in

the Indian Ocean Rim Association which may give Russia a
major role in the Indian Ocean.
o Russia also helped Indian and Chinese Foreign Ministers
to meet and diffuse the stalemate in Ladakh on the
sidelines of the SCO Summit in Moscow.
o Also, in the UNSC conference on maritime security chaired
by India, Russia dilplayed its closeness.
India-Russia Annual Summit: It is the highest institutionalized
dialogue mechanism in the strategic partnership between India
and Russia.
 Recent Cooperation in Defence: Currently, 65% of Indian
armed forces equipment is of Russian origin and India
continues to rely on Russia for spares. Despite strong US
opposition, India procured the S-400 Triumf Missile from Russia.
For now, India has escaped the US sanctions on the purchase
of S-400 missiles, however, India’s deepening defence ties with
Russia will continue to trouble the USA as well as China.

 Economic Domain of Relations: India and Russia have greater

freedom in the economic domain but their failure to boost the
commercial relationship has been stark. India-Russia annual
trade is worth about only $10 billion whereas the latter’s annual
trade with China is a little more than $100 billion. India’s goods
trade with the US and China is at the level of $100 billion.
  Significance of India for Russia: Persistent conflict with the
US, Europe, and Japan have moved Moscow closest ever to
Beijing. However, Russia is well aware of the dangers of
relying solely on a neighbour like China. While resetting its
relations with the West still has a lot to cover, sustaining
the traditional partnership with India holds political value to
Moscow.

Importance of Russia for India

 Balancing China: The Chinese aggression in the border areas of
eastern Ladakh, brought India-China relations to an inflection
point, but also demonstrated that Russia is capable of contributing
to defusing tensions with China. Russia organized a trilateral
meeting among the foreign ministers of Russia, India, and China
following deadly clashes in the Galwan Valley in the disputed
territory of Ladakh.
 Emerging New Sectors of Economic Engagement: Apart from
traditional areas of cooperation such as weapons, hydrocarbons,
nuclear energy, and diamonds, new sectors of economic
engagement are likely to emerge — mining, agro-industrial, and
high technology, including robotics, nanotech, and biotech.
 Combating Terrorism: India and Russia are working to close the
gap on Afghanistan.
 Support at Multilateral Forums: Additionally, Russia supports
India’s candidacy for permanent membership of a reformed
United Nations Security Council and of the Nuclear Suppliers
Group.
India- Japan relationship
Why is Japan important to India?
Financial
Japan has invested in the $90 billion Delhi-Mumbai Industrial
Corridor (1,483 km high-speed rail and road line) which will see
the setting up of new cities, industrial parks, ports and airports.
It is also backing the Ahmedabad-Mumbai bullet train service.
o Japan is the third-largest source of FDI (Foreign Direct Investment)
investment into India after Mauritius and Singapore.
o Defence
o Japan is the most important partner in Indo-Pacific
region.  After the joint army (Dharma Guardian),
navy (Malabar), the two nations are looking to allow
their respective naval forces to use each other’s
facilities.
o Both countries have a rivalry with China and to counter
its behaviour in the Indo-Pacific region the two countries
formed the Quad.
The areas of concern between India and Japan
 Trade between the two countries
o Today, India-Japan trade weakens at around $15 billion, while
Japan-China trade is around $300 billion.
 Focused on countering China
o Both countries have border and hegemonic issues with China.
So their policy stance hinges generally on China, rather than
growing comprehensively.
 Security ties
o In matters of security realm, Indo-Japanese relationship has
remained below potential, and that Japan does not accord
due importance to India in its security calculus. Japan has
offered neither military hardware nor technology to India.
There seems to be a difference in perceptions about China.
Japan, while highlighting its own security concerns in the East
and South China Seas, is seen to play down the multiple
threats that India faces from China.
India-EU Relations
EU and India: Natural Partners
 EU’s Need to Pivot Away from China: EU recently signed a
Comprehensive Agreement on Investment with China, which has
drawn a lot of criticism and its ratification has now been
suspended because of diplomatic tensions. The European
 Parliament remains overwhelmingly opposed to this deal after
China imposed sanctions on some of its members, in response to
the EU imposing sanctions against China for its treatment of the
Uyghur Muslim minority in the Xinjiang region.
 Economic Logic: With the EU being India’s largest trading
partner and the second-largest export destination, the economic
logic of strong India-EU economic relations is self-evident.
 Cooperation in Global Health:

o EU member-states have rallied to support India by

sending critical medical supplies in the last few weeks in
recognition for the role India had played in helping
others over the last year. As the two sides commit
themselves to working together on global health, the
need to focus on resilient medical supply chains is all
the more evident.
 Convergence in Indo-Pacific Theatre: India is looking for
substantive partnerships with like-minded nations to bring
stability to the Indo-Pacific theatre. Further, India is looking
beyond the bipolar geopolitical competition between the US
and China and works towards the establishment of a Multi-
polar world.
 Combating Climate Change: India can learn from a new
industrial strategy called the Green Deal of EU to render its
carbon-emission neutral by 2050. The EU and India could
endeavour transforming into carbon-neutral economies by
2050 by investing in clean energies. In India’s efforts to
increase the use of renewable energy in India, the investment
and technology of Europe is of paramount importance.

India-Afghanistan Relations
Introduction
 India and Afghanistan have a strong relationship based on historical and cultural links.
 In the recent years, the pace of Indo-Afghan bilateral cooperation in the political, security,
development, and cultural areas has continued to accelerate, on the basis of the Afghanistan-
India strategic partnership agreement (SPA).
Why Afghanistan is important for India?
 Afghanistan serves India's security and economic interests
 Afghanistan is tied to India’s vision of being a regional leader and a great power, coupled with
its competition with China over resources and its need to counter Pakistani influence.
 The pipeline project TAPI (Turkmenistan-Afghanistan-Pakistan-India), which seeks to connect an
energy-rich Central to South Asia, will only see the light of the day if stability is established in
Afghanistan
 India’s interest in Afghanistan relates to its need to reduce Pakistani influence in the region.
 For access to the landlocked Central Asian countries that border Afghanistan.
 The country is home to resource deposits worth one trillion dollars, according to the US
Geological Survey.
Pakistan card in Afghanistan
 India should contain and balance Pakistan's influence, which may otherwise hamper Indian
interests.
 Afghanistan has been the battleground for an India-Pakistan proxy war since 2001.
 Mr. Ghani is turning to India because his relationship with Pakistan is breaking down.
 It is breaking down because Pakistan has neither reined in the insurgency nor compelled the
Taliban to negotiate.
Bilateral trade
Despite the lack of direct land access, India is the second-largest destination for Afghan exports.
Defence
India, according delivered three Russia-made Mi-25 attack helicopters to Afghanistan
India has also discussed potential sales of its Light Combat Helicopter and has ambitions to
export the much-maligned Tejas combat aircraft.
Parliament building
a) India has constructed the new building, as a sign of friendship.
b) The Afghan Parliament and the Salma dam are two of India's showpiece projects in
Afghanistan.
Positive impact
a) Increasing Capacity of Afghan forces resulting in better combat of militants.
b) Further strengthening of bilateral relations. It will be helpful in aligning Afghanistan towards
India, away from Pakistan.
c) Thrust to manufacturing of defence equipment to India.
d) Status of regional power requires active involvement in efforts to maintain peace and stability.
India also need to make its presence and influence felt in the peace talks
e) Afghanistan's stability is essential for India as it provides a gateway to central Asia
f) A number of India backed projects (Chabahar port project) are running there. And Stability can
be brought only when Afghan Army is equipped with modern weapons
g) Both India and Afghanistan are suffering from cross border terrorism. Military assistance to
Afghanistan will help it eliminating the cross border terrorism, which will in turn be beneficial for
regional peace and stability.
Negative impact
a) Leadership crisis is a fundamental problem in Afghanistan which arms cannot compensate for.
b) Conflict with Taliban and other state actors may increase.
c) India should first attain self-sufficiency before exporting the weapons to other nations.
Concerns
 Many believe that with Taliban gaining ground, India must be much more careful and choose
smaller projects with care.
 India's growing friendship with Afghanistan has always been a major worry for Pakistan.
India an important player in the peace process – it has been acknowledged by all including the US
and very recently by Pakistan that India is a key player in the peace process. The External Affairs
Ministers have reiterated that in India supports all efforts for peace and reconciliation in
Afghanistan which are inclusive and Afghan-led, Afghan-owned and Afghan-controlled.