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INTERNATIONAL RELATIONS
Contents
Defence/Strategic Relations................................18
UNIT - 1: INDIA’S FOREIGN POLICY
Economic Cooperation, Connectivity
CHAPTER-1: FOREIGN POLICY AND ITS Projects and Development Assistance................19
DETERMINANTS................................................................2
Energy Cooperation............................................20
About Foreign Policy.........................................................2
Cultural Relations................................................20
Size of State Territory............................................2
Issues and Challenges...................................................20
Geographical Factor.............................................2
It Pays to be Anti-India in Nepal..........................20
Historical Factors..................................................3
Nepal’s Political Instability and its bearing
National Interests..................................................3 on India...............................................................20
Ideological Factor.................................................3 Security and Border Dispute...............................21
National will...........................................................3 The Gulping Dragon............................................22
Social and Government Structure.....................................3 Way Forward...................................................................22
Religion.............................................................................4 CHAPTER-5: INDIA-BANGLADESH RELATIONS..........24
External Environment........................................................4 Introduction.....................................................................24
CHAPTER-2: PHASES OF INDIA’S FOREIGN POLICY... 6 Brief History and Recent Developments.............24
Pre-Independence............................................................6 Importance of Bangladesh to India.................................24
Independent Indian Foreign Policy...................................7 Shared History................................................................25
Era of Optimistic Non-Alignment (1946-62)......................7 Pillars of Cooperation......................................................25
Era of Realism and Discovery (1962-70)..........................8 Economic Relations and Investments.................25
Era of Regional Assertion (1971- 1991)............................8 Connectivity Projects and Transport Links..........26
Quest for Strategic Autonomy (1991- 1999).....................9 Energy Cooperation............................................26
Balancing Power (2000-2013)..........................................9 Defence/Strategic Relations................................27
Energetic Diplomacy (2014-Present)................................9 Cultural Relations................................................27
Recent Progress in Bangladesh.....................................28
UNIT - 2: INDIA AND ITS NEIGHBOURHOOD Irritants and Challenges..................................................28
CHAPTER-3: INDIA-BHUTAN RELATIONS.................... 13 Conclusion..........................................................28
Introduction.....................................................................13
CHAPTER-6: INDO-PAK RELATIONS............................ 30
Related Information.............................................13
Introduction.....................................................................30
Basis of Relationship......................................................13
History ...........................................................................30
Areas for Cooperation.....................................................14
Timeline up to the Creation of Pakistan...............31
Economic Cooperation and Development
Timeline from the Creation of Pakistan up
Assistance...........................................................14
to 2020................................................................33
Defence/Strategic Cooperation...........................15
What are the main issues between the Two Countries?.. 35
Jammu and Kashmir...........................................35
Changing Nature of Relations.........................................17
Siachen Dispute..................................................39
CHAPTER-4: INDIA-NEPAL RELATIONS....................... 18 River Water Disputes...........................................40
Introduction.....................................................................18 Sir Creek.............................................................41
Pillars of Cooperation......................................................18 Nuclear Challenge..............................................42
Sino-Pak Cooperation.........................................42
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What is the Real Issue?...................................................43 Strategic Importance of Myanmar to India..........66

How are they Cooperating and way Forward..................44 Defence Relations...............................................67
Conclusion..........................................................45 The ‘China’ Factor...............................................68
Connectivity Projects......................................................69
CHAPTER-7: INDIA-SRI LANKA RELATIONS................47
Kaladan Multi-Modal Corridor Project.................69
Introduction.....................................................................47
India-Myanmar-Thailand Trilateral Highway
Recent Developments.........................................47
Project.................................................................69
Shared History and Ethnic Issues in the Relationship.....47
Economic Ties/Developmental Assistance.....................70
Economic Cooperation and Development
Economic Ties.....................................................70
Assistance...........................................................48
Developmental Assistance..................................70
Defence/Strategic Relations................................50
Energy Cooperation........................................................71
Historical/Cultural Relations................................71
Other issues and Challenges..........................................51
Rohingya Issue...............................................................73
Way Forward.......................................................52
Who are the Rohingyas?.....................................73
Conclusion..........................................................53
Why did they flee Myanmar?...............................73
CHAPTER-8: INDIA-MALDIVES RELATIONS............... 54 India and the Rohingya Crisis.............................73
Introduction.....................................................................54 Conclusion..........................................................73
Political situation in Maldives and Indian Intervention.....54
Pillars of Cooperation......................................................55
UNIT-3: INDIA AND EXTENDED NEIGHBOURHOOD
Economic Relations and Development CHAPTER-11: INDIA-ASEAN RELATIONS......................76
Assistance...........................................................55 Introduction.....................................................................76
Defence/Strategic Relations................................56 ASEAN ...........................................................................76
Cultural Relations................................................57 Why is ASEAN Important to the World?...............76
Challenges......................................................................57 India-ASEAN Relations........................................77
Way Forward...................................................................58 Importance of ASEAN to India............................77
India-ASEAN Cooperation...................................77
CHAPTER-9: INDO-AFGHAN RELATIONS................... 59
Issues in the ASEAN.......................................................79
Introduction.........................................................59
Emerging Developments................................................79
Importance of Afghanistan to India.................................59
Culture Relations............................................................60 CHAPTER-12: ISSUES IN THE INDO-PACIFIC REGION... 81
Commercial Relations.....................................................60 Introduction.....................................................................81
Strategic Partnership......................................................60 Regional Comprehensive Economic
Defence Cooperation......................................................61 Partnership (RCEP).........................................................81
Sports Cooperation.........................................................61 Significance of RCEP..........................................82
High Impact Community Development Projects India and RCEP...................................................82

(HICDP)..........................................................................61 QUAD 83
Human Resource Development and Capacity Building.. 61 The South China Sea Dispute.........................................84
Humanitarian Assistance................................................62 India-Pacific Island Countries.........................................84
Indian Diaspora in Afghanistan.......................................62 Way Forward.......................................................84
Challenges......................................................................62
CHAPTER-13: INDIA-IRAN RELATIONS........................ 86
Conclusion......................................................................64
Introduction.....................................................................86
CHAPTER-10: INDIA-MYANMAR RELATIONS.............. 66 Historical Links...............................................................86
Introduction.....................................................................66 Pillars of Cooperation......................................................87
Defence and Security Ties..............................................66 Economic Links and Development Assistance...87
Connectivity Projects...........................................88 CHAPTER-17: INDIA AND GULF COOPERATION

Strategic/Defence Relations................................89 COUNCIL (GCC)............................................................ 110
The US Factor.................................................................90 Introduction...................................................................110
The Road Ahead.............................................................91 Gulf Cooperation Council (GCC)..................................110
Importance of GCC to the World.......................111
CHAPTER-14: INDIA-UAE RELATIONS...........................93
Challenges to GCC...........................................111
Introduction.....................................................................93
India and the GCC........................................................112
Bilateral Mechanism.......................................................94
Strategic/Defence Cooperation.........................112
Pillars of Cooperation......................................................95
Economic Relations...........................................113
Energy Cooperation............................................95
Diaspora Links..................................................113
Economic Cooperation........................................95
Concerns and Way Forward.........................................113
Strategic/Defence Ties........................................96
Diaspora..............................................................97 CHAPTER-18: INDIA-CENTRAL ASIA RELATIONS......115
Cultural Ties........................................................97 Introduction...................................................................115
Challenges......................................................................97 History and Importance of this Region to India.............115
The Road Ahead.............................................................97 Cooperation with Central Asia......................................116
Military Cooperation..........................................116
CHAPTER-15: INDIA-SAUDI ARABIA RELATIONS....... 99
Energy Cooperation..........................................116
Introduction.....................................................................99
Economic Cooperation......................................117
Importance of this Relationship......................................99
People-to-People Contact.................................118
Pillars of Cooperation....................................................100
Ways to Enhance India-Central Asia Bilateral
Energy Cooperation..........................................100
Cooperation..................................................................118
Economic Ties and Investments........................100
Strategic/Defence Relations..............................101 UNIT - 4: INDIA AND GLOBAL POWERS
Diaspora............................................................102 CHAPTER-19: INDO-US RELATIONS............................120
Cultural Dimension............................................102 Introduction...................................................................120
The Road Ahead...........................................................102 Historical Background..................................................120
CHAPTER-16: INDIA-ISRAEL RELATIONS...................104 Strategic Partnership....................................................121
Introduction...................................................................104 Points of Convergence......................................121
India and Israel are Natural Allies.................................105 CHAPTER-20: INDO-RUSSIAN RELATIONS.................131
Historical and Cultural Similarities.....................105 Introduction...................................................................131
Geographical Similarities..................................105 Historical Ties...............................................................131
Intellectual Similarities.......................................105 Political Relations..........................................................132
Geo-Political Similarities....................................106 Military and Strategic Relations....................................132
Pillars of Cooperation....................................................106 Economic Relations......................................................133
Defence/Strategic Relations..............................106 Energy/Nuclear Cooperation........................................134
Cooperation in Agriculture................................107 Outer Space.................................................................134
Science and Technology Cooperation..............107 Cultural Ties..................................................................134
Economic Cooperation......................................108 Tourism.........................................................................134
Cultural Relations..............................................108 Regional and International Cooperation.......................135
Education..........................................................108 Issues and Challenges.................................................135
Challenges....................................................................109 Way Forward.................................................................136
The Road Ahead...........................................................109
CHAPTER-21: INDIA-CHINA RELATIONS.................... 137 Note on EU...................................................................158

Introduction...................................................................137 History...............................................................158
Historical Relations.......................................................137 Institutions.........................................................158
Cultural Relations..........................................................137 BREXIT..............................................................159
Economic Relations......................................................138 Conclusion....................................................................160
Defence and Strategic Cooperation.............................138
CHAPTER-25: INDIA-FRANCE RELATIONS.................161
Scientific Cooperation...................................................138
Introduction...................................................................161
Education Relations......................................................138
Defence/Strategic Partnership......................................161
Indian Community.........................................................139
Defence/Strategic Ties......................................161
Significance of India- China Relationship.....................139
Maritime Cooperation........................................163
Challenges in Sino-Indian Relationship........................139
Space Sector Cooperation............................................163
Difficult for India to become Atmanirbhar
Economic Cooperation.................................................164
by boycotting Chinese goods?.........................140
Energy Cooperation......................................................165
Way Forward.................................................................141
Conclusion....................................................................165
CHAPTER-22: INDIA-GERMANY RELATIONS............. 142
CHAPTER-26: INDIA-JAPAN RELATIONSHIP.............166
Introduction...................................................................142
Introduction...................................................................166
Economic Relations......................................................142
Historical Relations.......................................................166
Technology/Sustainable Development Cooperation.....144
Cultural Ties..................................................................166
Defence/Strategic Cooperation....................................144
Cultural Relations..........................................................145
Development Cooperation............................................167
Conclusion........................................................146
Defence/Strategic Relations.........................................168
CHAPTER-23: INDIA-BRITAIN RELATIONS................. 147 Political Cooperation.....................................................169
Introduction...................................................................147 Energy / Nuclear Cooperation......................................169
History .........................................................................147 India-Japan Digital Partnership (IJDP) and Start-
Pillars of Cooperation....................................................148 up Hub 169
Diaspora............................................................148 People to People Contact.............................................169
Education..........................................................148 Challenges....................................................................169
Economic Relations...........................................149 Way Forward.................................................................170
Science and Innovation.....................................151
CHAPTER-27: INDIA-SOUTH KOREA RELATIONS......171
Strategic Cooperation/Defence Relations.........152
Cultural Relations..........................................................171
Issues and Challenges.................................................152
People to People Ties...................................................171
Conclusion....................................................................153
CHAPTER-24: INDIA AND EUROPEAN UNION (EU)... 154 Defence / Strategic partnership....................................173
Introduction...................................................................154 Political Cooperation.....................................................173
Pillars of Cooperation....................................................154 Challenges....................................................................173
Background......................................................154 Way Forward.................................................................174
Economic Partnership.......................................155 UNIT - 5: INDIA AND GLOBAL SOUTH
Scientific/Environmental Cooperation................156 CHAPTER-28: INDIA-AUSTRALIA RELATIONS........... 176
Strategic Cooperation.......................................157 Introduction...................................................................176
People to People Ties.......................................157 History of the Relationship............................................176
Issues and Challenges......................................158
Pillars of Cooperation....................................................176 Involvement of EU.............................................198

Economic Cooperation......................................177 India and Libya.................................................198
Defence/Strategic Relations..............................177 Sudan .........................................................................199
Science and Technology Cooperation..............178 Food Crisis in Sudan.........................................199
Diaspora............................................................178 Refugee Crisis...................................................199
The Road Ahead...........................................................180 Women Refugees..............................................199
Current Situation...............................................199
CHAPTER-29: INDIA-AFRICA RELATIONS...................181
India-Sudan Relations.......................................200
Introduction...................................................................181
Yemen Crisis.................................................................200
Why is the African Continent Important?.......................181
Humanitarian Impacts.......................................201
India’s Relations with Africa..........................................181
Prospects for a solution to the Crisis.................201
Extension of QUAD and Multilateral Cooperation
in Africa........................................................................183 Emerging Geo-Political Equations in the Region..........201
Kurds and the Issue of Kurdistan.................................202
CHAPTER-30: INDIA-LATIN AMERICA AND
Who are the Kurdish People and what is
CARIBBEAN RELATIONS.............................................. 186
the Kurdistan issue?..........................................202
Introduction...................................................................186
What is the Current Situation?...........................202
Brief Historical Background..........................................186
Cooperation..................................................................187 CHAPTER-33: INDIAN OCEAN REGION (IOR)
AND INDIA.................................................................... 204
Issues and Challenges.................................................188
Introduction...................................................................204
Way Forward.................................................................188
Indian Ocean Region (IOR)..........................................204
CHAPTER-31: INDIA-BRAZIL RELATIONS...................190 Significance of IOR.......................................................204
Introduction...................................................................190 Rich Resource Base..........................................204
Similarities between India and Brazil............................190 Maritime Trade..................................................205
Similar Levels of Economic Development.........190 Geostrategic Importance..................................205
Geographical Similarities..................................191 Issues in the IOR..........................................................205
Cultural Similarities............................................191 India and the IOR..........................................................206
Pillars of Cooperation....................................................191 Importance of IOR India’s Development...........206
Economic Cooperation......................................191 Role of Indian Ocean in improved
Political Cooperation.........................................192 Livelihoods, and Jobs.......................................207
Strategic/Defence Cooperation.........................192 What is India doing?..........................................207
Cultural Ties......................................................193 Way Forward.................................................................208
Challenges....................................................................193
CHAPTER-34: UN AND AFFILIATED
Future Potential.............................................................194 ORGANIZATIONS......................................................... 209
UNIT - 6: MISCELLANEOUS Introduction...................................................................209

History 209
CHAPTER-32: ISSUES IN WEST ASIA AND
NORTH AFRICA.............................................................196 Organs of the UN and their Functions..........................209
Introduction...................................................................196 UN General Assembly (UNGA).........................209
Libyan Crisis.................................................................196 United Nations Security Council (UNSC)..........210
Background......................................................197 UN Secretariat...................................................210
Who is Fighting whom in Libya?........................197 International Court of Justice (ICJ)....................210
What do the different countries want?...............197 UN Economic and Social Council

(UNECOSOC)....................................................210
Role of Libya’s Oil.............................................198
UN Trusteeship Council....................................210
Specialized Agencies and other UN Agencies.............210 Importance of BRICS for India..........................222

World Trade Organization (WTO)..................................211 South Asian Association for Regional Cooperation
Dispute Settlement System:..............................212 (SAARC).......................................................................223
Buenos Aires Declaration on Women and Background......................................................223

Trade.................................................................212 Objectives of SAARC........................................224
Why India voted against this declaration?.........212 Principles of SAARC..........................................224
Issues with the International Financial System..............212 Areas of cooperation includes..........................224
World Health Organization (WHO)................................212 SAARC Achievements.......................................224
US Withdrawal from Organizations and Pacts..............213 Why is SAARC important and how is it
What Ails the UN?.........................................................213 important for India?...........................................225
UNSC reforms and India...................................213 Challenges........................................................225

Policies and Recommendation..........................226
CHAPTER-35: IMPORTANT GLOBAL
Non-Alignment Movement.................................226
INSTITUTIONS AND ISSUES........................................ 215
Current Activities of NAM..................................227
Introduction...................................................................215
How India has benefitted from NAM?................227
G-20 215
Relevance of NAM in Today’s World.................229
History...............................................................215
Problems with NAM...........................................229
About G-20........................................................215
Conclusion....................................................................229
Significance......................................................216
Achievements of G-20.......................................216 CHAPTER-36: INDIAN DIASPORA.............................. 230
India and G-20..................................................217 Introduction...................................................................230
Financial Action Task Force (FATF)..............................217 Indian Diaspora............................................................230
What is the Financial Action Task Force Contributions of the Indian Diaspora............................231
(FATF)?..............................................................217 Issues and Challenges faced by the Diaspora.............232
FATF Recommendations, or FATF Standards...217 Government Initiatives..................................................233
How does the Listing Process Work?................218 Conclusion....................................................................233
Relevance.........................................................218
Glossary........................................................... 235
BRICS .........................................................................219
What has been India’s role in this forum?..........221 References...................................................... 238
Unit - 1
India’s Foreign Policy
1. Foreign Policy and Its Determinants
2. Phases of India’s Foreign Policy
of strength. A society characterised by

strong internal conflict and strife acts
EXTERNAL ENVIRONMENT
as a source of weakness for the foreign • Foreign Policy has to operate in the
policy. international environment but at the same
time it has always to adapt according to
• The shape of the foreign policy is also changing external environment. Ex: The
determined by the fact as to whether collapse of the USSR and the liquidation
the government agencies handling it are of socialist bloc acted a source of big
democratically constituted or not. The changes in the foreign policy of almost
democratization of the process of policy- every state.
making in recent times has increased
the importance of social structure as an • The issue of New International Economic
element of foreign policy. Order, the energy crisis, the problem of
distribution of international resources,
the issue of proliferation, protection of
RELIGION human rights, elimination of international
• Many experts often tend to dismiss this terrorism and others has been major
factor that influences foreign policy factors in the foreign policy decisions of
formulations, but it is important. India and other developing nations.
• Religion in many parts of the world • Every state should give special attention
plays a critical role in the foreign policy to the careful formulation and successful
of nations. Historically, the crusades in execution of its foreign policy. Because
Europe was a religious war that was a successful foreign policy enhances
fought between the Muslims and the a nation’s power and prestige in the
Christians. comity of nations. Foreign policy gains
also increase a government’s credibility
• India’s foreign policy decisions are majorly in the eyes of the public internally and
affected by the religious sentiments externally.
of its citizens. Despite the perpetual
tensions prevailing with Pakistan, the
government undertakes and supports an
annual pilgrimage trip across the border
to Nankana sahib gurudwara (the birth-
place of the founder of Sikhism, Guru
Nanak).
• The recent opening of the Kartarpur
corridor between India and Pakistan is
another example.
CHAPTER - 2
PHASES OF
INDIA’S FOREIGN POLICY
• As India's influence increases in the factors of Indian foreign policy through
international system, understanding its the following stages of its evolution.
foreign policy and its engagement with
the rest of the world is critical. Pre-Independence
• One important maxim dominates the • Before 1947, India’s position in
foreign policy of nations. This maxim international society was characterised
reads: “In International Relations, there by two distinct eras.
are neither permanent friends nor foes
but only permanent national interests”. • The first was its period of economic
and cultural dominance before British
• Here, national interest is permanent. It is colonisation. Throughout ancient
the concept that is permanent but the and medieval times, we had cordial
nature of it can change frequently. relationship with the people of the globe.
• Foreign policy of any country, unlike • Throughout precolonial history, India’s
domestic policy, is usually considered flourishing empires also made significant
to be staid and stable not subject to cultural and academic developments.
revolutionary change. Foreign policy is For example, the Mughal Empire featured
both static and dynamic. artistic and literary achievements
• What do we understand as ‘statism’ in including illustrated manuscripts of
foreign policy? Basically, maintenance Hindu epics including the Ramayana and
of the status quo, e,g., sending Indian the Mahabharata. Both of these works
troops for peace keeping operations in deeply influenced the “religious and
conflict zones, only under United Nations cultural life of the Indian subcontinent
resolution and command. Static foreign and much of the rest of Asia”.
policy elements reduce risks. • Also, during the Mughal Empire, India
• Changing dynamics in foreign policy functioned as a “bridge” between the
would mean the ability to change or Middle East and East Asia through
mould policy according to changes in which goods and ideas could pass. This
the country’s external environment or strategic location in the Indian Ocean
a revolutionary change in the country’s made India an economic powerhouse
domestic political scenario. A dynamic for centuries as it was hub for agriculture
foreign policy shows greater appetite for and foreign trade
risk taking. Foreign policy of any country, • The second era was its period of
including India, contains both static and subjugation during British colonisation.
dynamic features.
• With the establishment of British
• Let’s study the such static and dynamic colonialism in India, its external relation
particularly with neighbouring countries • Gandhian thought and principles

was mainly shaped by colonial motives. continued to inspire the people of
• The objectives of the colonial government Sri Lanka, Poland and other African
including the English East India Company nations who fought to throw the yolk of
were to safeguard the frontiers of India colonialism.
in the North-West Frontier Province • It was the nationalist movement
(Afghanistan border). During the period, that helped evolve the principles of
there were threats that emerged from foreign policy including disarmament,
Napoleonic invasion and later the soviet democracy, rule of law, peace and the
threats. policy against apartheid or discrimination
• It was also important to safeguard the based on colour.
frontiers with respect to Tibet and China. • These principles continue to guide Indian
Many efforts were taken in this regard foreign even till date.
and the British government and the
representatives from China met in 1913 Independent Indian Foreign
in Shimla and agreed to delineate the
Policy
border. This led to the Mcmohan line.
• Indian foreign policy from the time
• They started expansionist policy with
of independence can be categorized
regard to Burma Nepal, Afghanistan and
into six different period with different
Tibet, Nationalist leaders` of that time
strategic interests. These six phases of
condemned such “Policy” and demanded
Indian Foreign Policy have been given by
independent foreign policy based upon
the incumbent External Affairs Minister
respect for national sovereignty, territorial
Dr S. Jaishankar.
integrity and peaceful coexistence.
• According to him, the six different phases
• The colonial government also used
of foreign policy are the following:
Indian resources to invade Nepal, Sikkim,
Bhutan and Burma amongst other
nations. Its colonial appetite could never ERA OF OPTIMISTIC NON-
be satisfied.
• In all these objectives, it was the Indian ALIGNMENT (1946-62)
resources and the Indian armed forces • India began on the front foot just when it
who were used to executive these was about to achieve its independence.
objectives. In fact, it was one of the As a first initiative, the Asian Relations
earlier objectives of the moderates in Conference was organized in 1946. From
the Indian National Congress (INC) to the beginning, India emerged as a voice
prevent the Indian resources for being for the underdeveloped and developing
used for colonial expansions. nations of the global south.
• In the later period of the INC, Pandit • This soon metamorphized into the
Jawaharlal Nehru addressed the Congress creation of the Non-Aligned Movement
of Oppressed Nationalities in Belgium in (NAM) when the nations met in Belgrade
1928. We can see that supporting anti- in Serbia in 1961.
colonial struggles, elsewhere in the world
• Non-Alignment is not a policy of non-
became an important objective of the
intervention or neutrality as it is commonly
INC.
misunderstood to be. It was a policy of
not joining either of the cold war camps: Relations with Pakistan deteriorated to a
The Western World or the USSR led great extent.
Warsaw Pact. It meant providing issue- • The Pakistanis under Field Marshall Ayub
based support to these nations on which Khan wanted to take advantage of the
the nations belonging to the NAM could losses suffered by the Indian Army and it
benefit from. was this that led to the 1965 war between
• India’s scientific endeavours were the two nations.
achieved with the help of USSR whereas • Pakistan and China also united and
its agricultural needs were done with a further attempted to weaken India.
little bit of assistance provided by the US.
• The relations with the US too deteriorated
• During this period, India also pursued an after the tenure of President John F
active policy to solve some of the global Kennedy. The US insisted that India join
disputes under the aegis of the UN. India the US and become a part of the cold
played a key role in the Korean peninsula, war politics. India steadfastly refused
Congo, Indo-China region amongst and the US denied India food aid.
others.
• The economic situation too suffered with
• Shashi Tharoor also describes this phase a stagnant agriculture. It was under these
to be one that involved idealism in foreign circumstances that the Green Revolution
policy. was launched.
• This period soon ended when the Chinese • Massive inflation eroded the confidence
handed over a humiliating defeat to the in the Indian rupee and overall, these eight
Indians in the Sino-Indian war of 1962. years which saw three Prime Ministers
India was rudely shaken up after this was an era where realism returned and
event. India began to discover its friends and
foes.
ERA OF REALISM AND
DISCOVERY (1962-70) ERA OF REGIONAL
• The 1962 Sino-Indian war jolted the ASSERTION (1971- 1991)
nation out of its fetish of idealism. India • The next 20 years saw India emerging
during the next eight years began a as a regional power within South Asia. It
period of embracing realism and began began with the victory against Pakistan
to discover its strengths. in the 1971 war wherein Bangladesh was
• During this phase, it continued to lead created out of East Pakistan.
the NAM grouping and also embraced • India also asserted its regional influence
Afro-Asian solidarity. in the Tamil civil war in Sri Lanka.
• However, it woke up to the truth of China • Relations with Pakistan later began to
and the illusion of Sino-Indian friendship improve under the leadership of PM Rajiv
or the Hindi-Chini Bhai Bhai. Gandhi.
• China was an imperialist power and • The former PM also visited China and
it had to be tackled. Another major the US and worked out the modalities
headache that brough the focus back of a working relationship with both the
on the neighbourhood was Pakistan. nations.
7
• India emerged as a regional power in the improved relations with India.

conduct of its diplomacy. • The visit of the US President George W
Bush in 2006 which led to the signing of
QUEST FOR STRATEGIC the Indo-US Nuclear deal truly signalled
the beginning of a strategic partnership
AUTONOMY (1991- 1999) with the US.
• The collapse of the USSR in 1991 dealt a • During this era, India was seen negotiating
huge blow the aspirations of the Indian the mines of international politics and
foreign policy. The USSR acted as a deftly dealing with the super powers and
guiding force of India from the 1960’s carving out a place for itself in global
and their collapse, once again brought affairs.
forth the quest for strategic autonomy. • Relationship with China improved
• India did improve its relationship with whereas Japan, South Korea, ASEAN
the US with the visit of PM Rajiv Gandhi became closer to India.
but ties continued to remain frosty. • Considering its interests in the West Asian
• This also provided an opportunity for region, India deftly managed to maintain
India to improve its ties with the US allies its relationship with the GCC states, Iran
such as Japan, South Korea, Australia, and Israel.
EU, ASEAN and Israel. • It was important to bide for time when
• However, amidst all these developments, India built its economy and emerged as
it was important for India to maintain a power. During this phase, it successfully
its strategic autonomy. Despite massive managed to balance its equations with
international pressure, the government different world powers.
headed by Atal Bihari Vajpayee
conducted the Pokhran nuclear tests in
1998.
ENERGETIC DIPLOMACY
• Many nations such as Australia, Japan (2014-PRESENT)
and the US sanctioned India. It bravely • The contours of this policy are being
fought off these attempts to crush presently developed and it could be akin
its independence and successfully to putting the cart before the horse to
maintained its strategic autonomy. judge this policy. It is still being developed.
• It sought to build relations with all nations • It began with the victory of Prime Minister
on the basis of mutual respect. Narendra Modi in the 2014 General
Elections.
BALANCING POWER • If anything can be said, Indian foreign
policy is becoming assertive and India is
(2000-2013) no more a nation that is dependent on
• The 21st century began with the signing external powers for its development.
of the Indo-Russia Special and Privileged • This is an India that is Aatmanirbhar
Relationship Treaty 2000. but also at the same time, it embraces
• It was also around the same time when globalization and is standing up to bullies
US President Bill Clinton visited India and in the region (China), standing shoulder
to shoulder with the global powers and is
8
on the verge of ascendancy.

• These six phases reflect the maxim that in International Relations, there are neither
permanent friends nor foes but only national interests that are permanent.
Kautilya / Chanakya / Vishnugupta

• Kautilya was the wise minister and key political adviser of Chandragupta Maurya and
also of his son Bindusara in ancient India at about 300 B.C.E.
• Arthashastra: His book “Arthashastra” is one of the prototypical treatises on the political
science and ‘realpolitik’. It offers a very comprehensive and detailed account of foreign
policy in order to conquer the world.
• War Vs Diplomacy: Kautilya, a hard-nosed realist, regarded war not an extension of
diplomacy but regarded every aspect of diplomacy as "subtle war”. According to him,
diplomacy does not seek to avoid war, but to ensure victory in warfare, i.e., if victory
is assured then one should go to war, setting aside any agreement or treaty signed
previously.
• Kautilya advised that even during peacetime, a nation should constantly wage "hidden
war”, consisting of sowing discord among the enemy’s leadership.
• Power: According to Kautilya, “Power is the possession of strength” and it is in three
forms:
Mantrashakti: power of Knowledge i.e., power of counsel.
Prabhu shakti: Power of might i.e., power of treasury and army; and
Utsaha shakti: power of energy i.e., power of valor
• Mandala Theory: Kautilya’s most significant contribution to foreign policy making is his
famous ‘mandala theory’, wherein he postulates that neighbours are most likely to be
enemies, while states on the other side of one’s neighbours will be friends.
• Shadguna Sidhanta: Shadguna Sidhanta i.e., Six measures of foreign policy This
doctrine is about the six principles of foreign policy like a formula for attainment of
one’s national interests and goals at the level of international politics based on political
reality.
• Sandhi (making treaty containing terms and conditions): The general principal in
foreign policy is that, when the one is comparatively weaker than that of his enemy, the
policy of peace i.e. Sandhi should be employed.
• Vigraha (Policy of Hostility): If one is stronger than the enemy, policy of hostility should
be adapted. This policy has two dimensions- Defensive and Offensive.
• Asana (A policy of remain quite, not planning to march): Asana is the state in which
one is to wait in the hope that the enemy would get weaker or find himself in difficulties
or in calamities, get involved in war on other front and one would be strong than enemy.
• Yana (Marching on an expedition): The policy of yana is much clear and explicit among
all of others, which can be persuade in the situation when one is surely strong than his
enemy. “Normally, yana and vigraha are parallel but in yana, one is expected to be
completely dominant in the strength”.
• Sansraya (seeking shelter with another king or in a fort): This policy is particularly
recommended for a weak king who is attacked or threatened to be attacked by powerful
enemy. Sansraya conforms to the status of Protégé, one’s protection is assured thereby.
It is also implied that the king would be making continuous efforts to recoup his strength
and independence.
• Dvaidhibhava (The double policy of Sandhi with one king and Vigraha with Another
at a time): It is obviously a policy of dual purpose, where Sandhi is for seeking help in
the form of treasury and troops from one king to wage hostility toward another king.
This policy is referred for the king who is equally strong to enemy and he cannot win the
battle without additional strength of his ally.
• Kautilya’s foreign policy is still valid in the sphere of world politics because the basic
principles of foreign policy stated by him, like struggle for power, national interests,
alliances, hostility and diplomacy are remain unchanged unto the end of the world.
Therefore, he is relevant even in the age of ‘trans-modern global society’.
10
Unit - 2
India and Its Neighbourhood
3. India and Bhutan
4. India and Nepal
5. India and Bangladesh
6. India and Pakistan
7. India and Sri Lanka
8. India and Maldives
9. India and Afghanistan
10. India and Myanmar
CHAPTER - 3
INDIA-BHUTAN RELATIONS
INTRODUCTION another ecological asset shared between

the two nations.
The relations between India and its
neighbouring nation Bhutan is one which • Bhutan is a landlocked nation that is
is an example for the study in relationships sandwiched between India and China.
between neighbouring nations in the subject The Himalayan \ Mountains also forms
of International Relations. Normally, two many features in the country.
neighbours anywhere have many disputes • In recent times, the two sides have had
and are always in a state of conflict or certain high-level visits including that of
manage their relations without any warmth. Prime Minister Narendra Modi in August
However, in the case of India-Bhutan, the 2019.
two states share a warm relationship which
as its origins in shared history, common • In February 2020, Bhutan decided to levy
culture and mutual interests. a ‘Sustainable Development Fee’ of USD
17/ day on Indian tourists entering Bhutan
Related Information and staying in the Western districts of the
nation. This has raised certain questions
• The two nations share a border of 699 on Bhutan’s step to discourage the arrival
kilometres. The Indian states of Arunachal of Indian tourists.
Pradesh, Assam, Sikkim and West Bengal
share regions bordering Bhutan. • Let’s look into this issue and other factors
in the Indo-Bhutanese relations in this
module.
BASIS OF RELATIONSHIP
• Bhutan was a protectorate of Britain
before India’s independence. After India’s
independence, it signed a new deal with
Bhutan in 1949 called the India-Bhutan
Treaty of Friendship and Cooperation.
• The treaty amongst others ensured that
India will not interfere in the internal
affairs of Bhutan and the latter will not
import arms and ammunition (Article 2
of the Treaty). Bhutan also had to seek
India’s guidance on matters related to its
foreign policy.
• The Manas National Park (Assam) is
• Ever since, India has extended as an observer.

development aid and protected Bhutan
from any sort of external aggression. BBIN Project
• The Golden Jubilee of the establishment • In the 18TH SAARC summit in 2014, the
of formal diplomatic relations between SAARC nations failed to sign a Motor
India and Bhutan was been celebrated in Vehicles Agreement (MVA) because of
the year 2018. Pakistan’s refusal to sign the deal.
• As we shall see that this has changed • In 2015 BBIN was signed to facilitate
slightly. However, there is a growing movement of Passengers, personnel
relationship between the two nations and cargo between India, Bhutan,
and that will never subside. Bangladesh and Nepal.
• Now, let us look into the facets of this • In 2015 Cargo was transported between
cooperation. Kolkata- Agartala via Bangladesh. This
was the first time that this project was
operationalized.
AREAS FOR • 30 projects worth USD 8 billion dollars
COOPERATION are being carried out. The Asian
Development Bank (ADB) is financing
this project and it is expected to improve
Economic Cooperation and
connectivity and improve intra-region
Development Assistance trade by more than 60%. It is under
• For the period between January-June the framework of SASEC program
2018, the bilateral trade between the two (South Asia Subregional Economic
countries stood close to Rs 4300 crores. cooperation) which consists of India,
Nepal, Bhutan, Bangladesh, Myanmar,
• India also permits duty free transit of Sri Lanka and Maldives.
goods that Bhutan exports to other
nations. • One of the major items of import from
• Recently, a trading post was established Bhutan includes hydro-electricity. It
in the border region. India is also planning is in this regard that India has agreed
a railway project between Mujnai in West to undertake hydro-electric projects in
Bengal and Nyoenpaling in Bhutan. Bhutan to harness about 10,000 MW of
electricity.
• Another important connectivity project
between the two nations includes the • In 2006, the two nations signed the
BBIN Project (Bangladesh-Bhutan-India Agreement on cooperation in the field of
and Nepal) road connectivity project. Hydro-electric Power.
• However, the Bhutanese Parliament • So far, India has already constructed

rejected the ratification of this important the Tala, Chukha and Kurichhu projects
agreement due to concerns over and electricity is being exported to India
sustainable development and increased and it has become a part of the national
traffic situation in Bhutan. electricity grid.
• Recently in the meeting held in Bengaluru • India has recently completed the
in 2018 over the signing of a protocol Mangdechhu hydro-electric project
between the nations, Bhutan participated which is 720 MW and is in the process of
13
completing the Punatsangchhu 1 and 2 facilities. All members of SAARC are part
projects. of this project except Pakistan which
• Recently the two nations further signed an refused to become a part of an Indian
agreement to construct the Kholongchhu initiative.
hydro-electric power project. This 600 • The Ru-Pay debit card developed by the
MW project will be constructed on the National Payment Corporation of India
Kholongchhu river located in Eastern has now been extended to Bhutan.
Bhutan. • India and Bhutan need to find new areas
• This collaboration between the two for cooperation. One possible area is the
countries is in the mutual interest of both field of digital transformation including
nations and it also helps India’s energy Artificial Intelligence.
security.
• The issue of India’s guidelines on Cross Defence/Strategic Cooperation
Border Trade of Electricity in 2016 Let us first consider the question, how
pertaining to cost and maintenance of is Bhutan important to India’s national
these projects led to further delays in the interests?
projects. However, India revised these • Firstly, the border between the two
guidelines after negotiating with Bhutan. nations was earlier a cause for concern.
• India has also in recent times emphasized The forested area between the two
on renewable energy and more nations provided an easy route for
specifically, solar energy. This may in insurgents from various North-East
the future, depending on the economic insurgency groups to move across from
situation, erode one important factor of India to Bhutan and they found refuge
cooperation between the two countries there. However, this changed when India
and may lead to distancing in the overall highlighted these concerns to Bhutan.
bilateral relationship between the two • ‘Operation All Clear’ conducted in the
countries. year 2003-04 by Bhutan to root out
• India is also the largest foreign investor insurgent groups from Assam such as
in the nation and as late as 2018, the two United Liberation Front of Assam (ULFA),
countries have agreed on a total of 73 National Democratic Front of Bodoland
projects to be executed. (NDFB) and the Kamtapur Liberation
• As far as other development assistance is Organization (KLO). Over 30 militants’
concerned, India funded Bhutan’s entire camps were targeted and more than 650
1st 5 year plan in 1961 and is presently terrorists were killed.
extending assistance of Rs 4500 crores • Secondly, the China factor is an important
for Bhutan’s 12th 5 year plan for the facet of the strategic cooperation between
period of 2018-2023. As part of the plan, the two countries. In 2017, there was a
Bhutan is implementing 51 Large and dispute in the Doklam plateau which is
Intermediate projects and over 350 Small situated in the tri-junction between India
Development Projects (SDP). (state of Sikkim), Bhutan and China. India
• Bhutan also hosts a ground facility for the warded off Chinese threats and the issue
GSLV-09 satellite also called the South was settled temporarily.
Asian satellite. It assists the nations of
SAARC in enhancing communication
14
• Bhutan can also be considered as a mix

of India’s ‘Neighbourhood First’ policy
and its ‘Act East’ Policy.
• Bhutan and India also cooperate in many
multilateral forums such as BIMSTEC and
SAARC.
• Lastly, Bhutan remains the only
neighbouring nation of India which
neither has diplomatic relations with
China nor it is part of its One Belt One
Road (OBOR) project.
• However, once again in 2020, the Sakteng China-Bhutan Border Dispute

WildLife sanctuary in Bhutan situated • Bhutan and China have held 24 rounds
close to the Indian state of Arunachal of negotiations on their border dispute
Pradesh was in news. During a meeting during 1984-2016. According to Bhutan,
of the Global Environment Facility the dispute only exists in the Western
(GEF) (a US based financing body for sector covering the Dokhlam Plateau
environmental projects), China objected and in the northern section covering the
to the project funding in the Sakteng areas of Pasamlung and Jakarlung.
WildLife sanctuary in the Eastern part • China is in the habit of raising new
of Bhutan. But the objections were claims. Chinese acts of aggression
overruled. around the world including its immediate
• These areas which are close to the tri- neighbourhood is a cause for concern. As
junction of India, Bhutan and China will far as Bhutan is concerned, the Eastern
be a cause for concern for India. India will section has never been part of the 24
be closely watching these developments. rounds of negotiations between the two
India is most vulnerable in the Siliguri sides.
corridor. This is also called India’s chicken • Author Priyajit Debsarkar has said that
neck. (In the event of a war between Chinese expansion knows no boundaries
India and China, it is a belief that China and India with its formidable power
can seize this corridor and cut off access should protect Bhutan at all costs.
between India’s mainland and North-
East regions). Cultural Relations
• Culture is another important area of
cooperation between the two countries.
• Guru Padmasambhava who went from
India to Bhutan spread Buddhism in the
nation.
• Many Bhutanese nationals will visit
various Buddhist sites in India. The
Government of India could integrate its
Buddhist circuit as part of the Swadesh
Darshan scheme and include sites in
15
Bhutan and promote joint tourism. • As per the 2007 amendments, Bhutan
• People to People Contact: India is has also been permitted to carry out
a popular destination for Bhutanese its foreign policy objectives without
nationals who intend to study and work guidance from India. It has promised to
in India. uphold India’s interest.
• About 60,000 Indian nationals live in • India continuously needs to explore

Bhutan, employed mostly in the hydro- new areas of cooperation with Bhutan.
electric power construction and road Decision of setting up of ISRO’s ground
industry. station in Bhutan is a welcome step. The
station will help Bhutan in providing
• In addition, around 8000-10,000 daily weather related messages to its far flung
workers enter and exit Bhutan everyday areas.
in border towns.
• In recent times, China has been luring
Bhutan to establish diplomatic relations
CHANGING NATURE OF with it. China’s economic might is tempting
certain powers in Bhutan to grab the deal.
RELATIONS • Safety of Border from China is a concern
• In recent times, compared to the year for both nations. Therefore, both sides
1949, when the two nations signed the need to work together on this issue. Also,
India-Bhutan Treaty of Friendship and it needs to be ensured that border areas
Cooperation, the two have changed. remain militants free.
• The socio-economic conditions of both • India also needs to give up its big
the nations have changed and India brotherly attitude and engage Bhutan,
has emerged as a powerhouse in the according to the new terms which are
world and Bhutan too is on the path of dictated in the changing world.
development.
• Recognizing this important development, PROBABLE QUESTIONS
in 2007, the two nations amended
the 1949 treaty and amended certain 1. Examine the cooperation between
important articles. India and Bhutan in the hydro-electric
power sector. Is this a sustainable area
• Article 2 which forbade Bhutan from of cooperation?
importing arms and ammunition were
amended and presently they can import, 2. The ‘China factor’ plays an important
provided that these imports are not role in the development of India-
against India’s interests. Bhutan relations. Comment.
• It is this recognition of the changing
nature of relationship that has ensured
the sustenance of friendship and
• India should recognize the same with
respect to its other neighbour Nepal and
embrace these changes in its treaty with
Nepal.
16
CHAPTER - 4
INDIA-NEPAL RELATIONS
INTRODUCTION
• As two close neighbours, the friendship
and familial ties between India and
Nepal is inspiring. There exist historical
ties between the two nations. This
relationship is also often described as the
Roti-Beti relationship.
• This close relationship has been
reaffirmed through the India-Nepal
Treaty of Peace and Friendship, 1950.
Both the nations treat the citizens from
• The following Indian states share a
each other’s nations as their own citizens
territorial border with Nepal: Bihar, Sikkim,
and there is a provision for the free
Uttarakhand, Uttar Pradesh and West
movement of people across the border.
Bengal. The total length of the border is
• As the two nations move beyond historical 1751 kilometres and this is guarded by the
ties and establish a new relationship Sashastra Seema Bal (SSB).
rooted in history but encompassing
other facets of cooperation that reflect
the realities of the 21st century, disputes PILLARS OF COOPERATION
threaten the new order.
• In recent times, territorial disputes have
Defence/Strategic Relations
engulfed the ties between the two nations. • India has been at the forefront in assisting
This has been further complicated with the Nepali Army in terms of supply of
the release of the new official maps weapons and modernization.
by Nepal claiming all of the so-called • The Joint Exercise between the two
disputed regions. Further, PM of Nepal nations is called ‘Surya Kiran’ and takes
made ludicrous claims that the COVID-19 place alternatively in both the nations.
cases in Nepal have been transported The 2019 edition was held in Nepal.
from India.
• Considering the close friendship between
• To a neutral observer, the ties between the two nations, the Chief of Army Staffs
the two nations swing between the best (COAS) of both the nations have been
and the worst phases like a pendulum. granted the honorary ranks of General in
This remains a challenge for the foreign each other’s Army.
policy establishment of India.
• Further, the Indian Army has many Nepali
citizens serving in the various Gurkha
17
Rifles regiments of the Indian Army. bridging the trust deficit that exists.
• Nepal is definitely integral for India’s • As far as development projects and relief
security. However, it is not completely work is concerned, India has been at the
dependent on it and is capable of forefront. Following the 2015 earthquake
defending itself against any third-party that threatened to completely destroy
threats. Nepal, India immediately pledged
• The issue of terror groups operating assistance. Apart from the relief work
in the border regions needs to be re- that was carried out, India granted USD
emphasized here and there is an urgent 67 Million during the crisis and a further
need for Nepal to eliminate these groups amount of USD 1 Billion after the crisis for
and safe havens in its own interest. post disaster reconstruction.
• To help Nepal cut its reliance on China, • The assistance includes construction of
India should also explore joint projects 50,000 houses for those whose belongings
along with Japan (as part of the Afro- had been lost in the earthquake and aid
Asia Growth Corridor Project) and the in the health, education and cultural
US (through the Triangular Development heritage sectors.
Cooperation in Asia and Africa.) • India dispatched National Disaster
• India and Nepal are also part of the Response Force (NDRF) teams, rescue
SAARC, BIMSTEC and the SASEC and relief materials and extended New
groupings. Line of Credit agreement for US$ 750
mn for postearthquake reconstruction
projects in Nepal.
Economic Cooperation,
• Indian assistance in Nepal has always
Connectivity Projects and
catered to the needs of the local
Development Assistance communities. The two nations have
• India is Nepal’s largest trading partner. focused on border infrastructure and in
For the year 2018-2019, the total bilateral this regard:
trade was worth USD 8.27 Billion. 10 roads have been upgraded in the
However, this is largely in India’s favour. Terai region,
India exported goods and services worth
Railway link projects between Jogbani-
USD 7.76 Billion and imported items only
Biratnagar, Jaynagar-Barbidas,
worth USD 508 Million.
Establishment of Integrated
• Nepal imports most of its items for daily
Check Posts at Birgunj, Biratnagar,
sustenance from India including many
Bhairahawa and Nepalgunj.
agricultural items.
Further, Nepal and India are also part
• As far as investments are concerned,
of the BBIN road connectivity project
more than 150 Indian firms operate in
(Bangladesh-Bhutan-India-Nepal). It is
Nepal and over 30% of the approved
presently worked upon.
investments are from India.
The Government of India has also
• Even when India seeks to develop Nepal
envisaged the Sagarmatha- Sagar
in the economic sense, it faces issues
connectivity project. This reflects the
from the authorities in Kathmandu. This
connection between Mt Everest and
is inexplicable. This yet again shows that
the Bay of Bengal.
the two nations need to work towards
18
• Further in 2018, the two sides launched the • Sister city agreements have been signed
‘New Partnership in Agriculture’ to focus between Varanasi-Kathmandu and
on agricultural research, development Ayodhya-Janakpur. Bus services between
and education. the two cities have also been launched
recently.
Energy Cooperation • The citizens of both the nations also visit
• India and Nepal are developing nations each other’s nations for pilgrimages.
and import most of their energy • Peoples Movement: In Nepal the
requirements. There are more than 20 domiciled Indians comprise of persons
cross border transmission lines of 132 KV, employed in various institutions, business
33 KV and 11 KV. establishments, trade related activities,
• An Agreement on ‘Electric Power blue collar workers, hawkers, laborers,
Trade, Cross-border Transmission hawkers, self-employed etc. A segment
Interconnection and Grid Connectivity’ of the population is engaged as seasonal
was signed in 2014 to facilitate and migratory laborers in construction sector.
further strengthening cross border power
trade between India and Nepal. ISSUES AND CHALLENGES
• India is also presently supplying about
600 MW of power to Nepal. It Pays to be Anti-India in Nepal
• In the field of hydro-power electric • Nepal’s political and ruling class has
cooperation, the project execution has encouraged anti-Indian feelings amongst
been rather tardy. Many projects such as its masses.
the Pancheshwar Dam project have been
delayed. • The ruling class of Nepal has failed to
deliver in terms of welfare measures that
• The year 2019 was a landmark year as it is supposed to towards the people.
far as the energy cooperation between A simple excuse then is given: India is
India and Nepal are concerned. The responsible or some issue such as the
first cross border petroleum line was border dispute is picked and India is
inaugurated between Motihari in India villainized.
and Amlekhgunj in Nepal.
Nepal’s Political Instability and
Cultural Relations
its bearing on India
• Roti-Beti’ relationship: The two nations
share a close relationship based on • All political parties including the
civilization and historical ties. This monarchy that ruled Nepal till 2007
relationship is often termed as the ‘Roti- have faced instability and attempts have
Beti’ relationship. been made to overthrow their rule. Nepal
finally adopted its Constitution in 2015.
• Buddhism: If Lumbini in Nepal is the
birth place of Lord Buddha, he led most • India held that new Nepalese constitution
of his life in India. He attained Nirvana did not address the concerns of the people
in Gaya, preached for the first time in of the Terai and backed a blockade by
a Deer park at Sarnath and attained Madhesis to cripple supplies to generate
‘Mahaparinirvana’ at Kushinagar. pressure on Nepal.
19
• India has been accused of interfering in Fake Indian Currency Notes (FICN),
Nepal’s internal matters. Though there smuggle arms, drugs and people into
may be certain truth in it, it is highly India. This has been highlighted in a report
exaggerated. India too should work prepared by the US State Department.
towards addressing genuine Nepali • Both the nations set up an ‘Eminent
concerns. Persons Group’ consisting of citizens from
• It is pertinent to note that many Indian both the nations to overhaul this treaty.
investments have faced delayed approvals The report is yet to be made public and
or rejection from Nepali authorities due to India is yet to accept the findings of this
the overall downturn being experienced in report or even hold a dialogue with Nepal
the bilateral relations. on this content.
The Changing Nature of the
Security and Border Dispute
Relationship
• The border dispute has existed since
• India continues to engage with Nepal British times. The British Indian
through the cultural prism, Nepal seeks to Government and the Nepali King signed
look for partners who can help it develop the ‘Treaty of Sugauli, 1816’. As per
in the economic space. this treaty, Nepal lost Sikkim, Kumaon,
• India needs to recognize and build upon. Garhwal and Western Terrai.
In the future, any meaningful cooperation • The India-Nepal border has also become
with Nepal will necessarily have to move a hotspot for various terror groups who
beyond cultural relationship and the have established camps and are waiting
‘special relationship’. While the ‘special to infiltrate into India. Nepal and their
relationship’ can assist in building the agencies refuse to tackle this issue and,
relations, it is the actual cooperation on in many cases, even provide tacit support
economic and strategic matters that will to these lumpen elements.
help in sustaining a relationship.
• Further in 2019, after the passage of the
• Also there have been demands to amend Jammu and Kashmir (Reorganization)
the India-Nepal Treaty of Peace and Act, India released a new map showing
Friendship, 1950. Ever since the 1950’s, ‘Kalapani’ as an integral part of India.
Nepal has changed and so has India. (A map depicting the areas claimed by
There is no reason for India to hold on Nepal but presently under administrative
to a treaty that is both disadvantageous control of India).
to it and also when Nepal has sought
amendments to it.
• As far as India is concerned, the free
movement of people across the border
has been misused by Nepal which has not
only failed to take actions against third
party agents but has also encouraged
criminal activities against India.
• The open border has resulted in various
Pakistan state sponsored terrorist groups
using this region to infiltrate terrorists,
20
• Other border dispute involves the

territories of Limpiyadhura and Lipulekh
in the state of Uttarakhand and the Susta • Chicken neck: Nepal’s proximity to the
region in the state of Bihar. Siliguri corridor considered to be India’s
chicken neck as it the only area through
which India’s mainland is connected to
The Gulping Dragon the North-Eastern part of India is another
• Chinese economic, military, and worry.
strategic engagement in Nepal is sharply • Nepal was thought to be a buffer zone
increasing with new areas of cooperation, between the two countries. However, with
making India uncomfortable. these infrastructural projects in place,
• Nepal joined the One Belt One Road India is genuinely concerned about its
initiative of China in the year 2017. Ever safety.
since, in 2019, the two nations signed
an agreement to enhance connectivity
through the construction of an All- WAY FORWARD
weather road between Kathmandu and • The one possible area of cooperation
the Tibet Autonomous Region (TAR). between the two nations should be
• This is one of the projects envisaged under in the area of renewable energy and
the ‘Trans-Himalayan Multi-dimensional sustainable development. Nepal is also
Connectivity Network’ announced in part of the International Solar Alliance.
2018. • Environment Conservation: Both the
• The Shigatse- Gyirong railway link nations are part of the Himalayan
project with talks of extending it further ecosystem which is fragile and
to the Indian border has become a cause tectonically active. Any imbalances can
for concern, as far as India is concerned. upset the ecology of the region and lead
to disasters.
• Sharing data related to Rivers: The
flooding of rivers in the state of Bihar
reflects this lack of cooperation in
exchange of hydrological data and
unplanned development.
• Trade: India’s expertise in information
21
technology, upcoming manufacturing 2. Examine the geo-political significance

facilities and improvement in cutting of the border dispute between India
edge technology and innovation will and Nepal.
open up many opportunities for India
3. The Roti-Beti rishta between India
and its partners. This will also provide
and Nepal will have to be fortified
Nepal with the new energy it hopes to by meaningful cooperation in the
infuse into its systems. economical and technological spheres.
• Security: India amended its India- Comment
Bhutan Treaty of Peace and Friendship,
4. Nepal has to ascertain its true
1949 in 2007. Hence, there is a strong
sovereignty with respect to China
cause to amend this treaty too. Also it is
that has not only grabbed land from
in the interest of Nepal not to encourage Nepal but has largely influenced its
any anti-Indian attitude and activities. relationship with India. Comment
It needs to understand that this open
border has also been used by the Nepali
citizens to live and work in India and build
their livelihood.
• India also has to address the changing
equations between Nepal and China and
should urgently amend its Treaty with
Nepal.
• Emerging technologies: The two sides
could explore possible cooperation in
the field of Artificial Intelligence, IoT and
Space related technologies.
• In conclusion, it can also be stated from
recent observations that Nepal, like any
other neighbour of India, balances its
relationship between India and China.
However, its anti-Indian attitude has
continued to remain at the forefront. For
any meaningful relationship between the
two nations, this trust deficit will have to
be expunged from the hearts and minds
of the officialdom. The issue is not with
the people of both the nations. However,
they may become victims of this hatred
that needs to be nipped in the bud.
Probable Questions
1. The visceral anti-Indian attitudes of

certain ruling sections of Nepal have
prevented any meaningful cooperation
between India and Nepal. Comment
22
CHAPTER - 5
INDIA-BANGLADESH RELATIONS
INTRODUCTION support to Bangladesh and further stated

that any possible COVID-19 vaccine will
Foreign Policy of nations is about pursuance be shared with Bangladesh.
of national interests. In the context of
neighbours, it is all about securing one’s
borders and establishing friendly relations IMPORTANCE OF
so as to ensure peace and development
for all. Some neighbours may have certain BANGLADESH TO INDIA
disputes and it is important to ensure • Bangladesh in the ‘geo-political’ sense is
that these disputes are managed in such
critical to India in many ways. It would be
a manner so as to not upset the status of
against India’s national interest to take
equilibrium in the relations.
its relationship with Bangladesh lightly.
Brief History and Recent • Geographically, Bangladesh share
largest land border with India of almost
Developments 4096 kilometres. The Indian states of
In the past few years, the relationship Assam, Meghalaya, Mizoram, Tripura
has entered a state of ‘golden age’. The and West Bengal share borders with
settlement of the border dispute with the Bangladesh. There also exists a maritime
signing of the ‘Land Boundary’ Agreement boundary between the two nations.
in 2015 has further solidified the relationship.
• The passage of the Citizenship
(Amendment) Act, 20191 and repeated
references to Bangladeshi citizens as
termites and illegal migrants has vitiated
the atmosphere of bonhomie between the
two nations. Following this development,
Bangladesh has cancelled the visit of
its Foreign and Home Ministers and the
Speaker of its Parliament to India.
• In a note of reconciliation and signs
of improvement in the bilateral ties, • Through various connectivity projects
India’s Foreign Secretary recently visited being pursued with Bangladesh, the
Bangladesh and re-affirmed India’s nation has also become a gateway
1 This amendment grants citizenship to members into India’s North-Eastern states. These
belonging to six notified communities, i.e Hindus, projects will facilitate the socio-economic
Zoroastrians, Christians, Sikhs, Buddhist and Jains development of India’s North-Eastern
from Afghanistan, Bangladesh and Pakistan who region.
have arrived in India on or before December 31, 2014
23
• From a security perspective, the porous that Bangladesh adopted this as its
border and riverine borders have caused national anthem.
issues between the two nations. In this • In 1947, areas belonging to East Bengal
regard, two important issues: became a part of East Pakistan and
lllegal migration from Bangladesh to the people of ‘East Pakistan’ were
India: Many smuggling incidents and discriminated against by the people of
human trafficking rackets have been ‘West Pakistan’.
busted from this region. • The east contributed to over 75%
Movement of several insurgents of Pakistan’s total foreign exchange
belonging to the North-Eastern earnings and Bengali was the largest
insurgent groups and other Islamic spoken language. However, they were
terrorists who have used this region to greeted with a genocide, both physically
inflict damages on India. and culturally.
• Hence, maintaining good relations with • Urdu was imposed on the people of
Bangladesh is critical to India’s national Bangladesh; their resources were looted
security. and their citizens were never permitted
• The location of Bangladesh also to rule despite winning the elections.
empowers it to play a critical role in the • The elections of 1971 resulted in the
affairs of the Indian Ocean Region (IOR) victory of Sheikh Mujibur Rahman of the
and the Bangladeshi Navy has a critical Awami League. He was not permitted to
role to play in ensuring that sea lanes of take over and form the government by
communications are free of pirates and those powers in West Pakistan. When
others who threaten maritime commerce. the people of East Pakistan protested,
• Further it also connects India to the they were brutally killed and women were
South-East Asian region. It acts as a raped by the Pakistani Army soldiers2.
natural bridge between India and the • India was forced to intervene in this stage
region. and support the people of Bangladesh.
• Lastly, Bangladesh’s relations with India Their dreams were realized on December
will ensure that the irresponsible dragon 16, 1971 when over 93,000 soldiers of
keeps out of the South Asian region. the Pakistan Army surrendered to the
Indian Army in Bangladesh and finally
Bangladesh became an independent
SHARED HISTORY nation.
• It is perhaps unique in the history of the
world that it is the same individual who PILLARS OF COOPERATION
composed the national anthems of two
nations. Rabindranath Tagore composed
Economic Relations and
the national anthems of India and
Bangladesh. Investments
• The Partition of Bengal in 1905 by • Bangladesh is India’s largest trading
Lord Curzon evoked strong reactions partner in the South Asian region. India
throughout India and it was in this exported pharmaceutical products,
context that Tagore composed ‘Amar
2 As confirmed by Justice Hamidur Rahman
Sonar Bangla’. It was years later in 1971 Committee report of the Pakistani Supreme Court
24
agricultural items and IT amongst others. and the region to undertake various
• For the year 2018-2019, the bilateral trade connectivity projects.
was over USD 10 Billion. India exported • These connectivity projects are critical
goods and services worth USD 9.21 billion for India’s growth. India’s North-Eastern
and imported goods and services worth region is expected to benefit through
USD 1.22 Billion. these connectivity projects and transport
• There is a trade imbalance in favour of links.
India. To rectify this, Indian companies • Following are some of the important
have invested in Bangladesh’s tele- projects and links:
communication, tourism, energy and Akhaura- Agartala railway link project
other infrastructural sectors. For the year
2019, India has invested over USD 500 Dhaka-Kolkata- Agartala bus and
Million. train service (Maitree express)
• India has also extended three Lines of Kulaura- Shahbazpur railway link
Credits worth USD 8 Billion over a period project
of 8 years. This is India’s development Akhaura-Ashuganj road development
assistance to Bangladesh. project
• It is that only 10% of this aid has been The two nations are also part of the
disbursed and many projects have been Bangladesh, Bhutan, India and Nepal
delayed. So recently both the nations (BBIN) project. This project is expected
signed a MoU to facilitate this aid and to improve the connectivity and boost
undertake quick completion of projects. trade in the South Asian region by
• Considering the border regions and its more than 60%.
socio-economic developments, the two Both sides also signed MOU’s on the
nations have operationalized two Border use of the Chhotogram and Mongla
Haats each in the states of Tripura and ports.
Meghalaya. • In 2020, to ensure that the people to
• A MOU on the withdrawal of water from people ties, the two nations signed the
the Feni River for the state of Tripura is ‘Air Bubble’ Agreement and resumed
signed recently. flight services between the two nations.
• To take forward this economic • India is also presently exploring the
cooperation, both countries could explore utilization of inland waterways in
collaboration in emerging technologies Bangladesh.
and India should also facilitate the • India needs to explore many more
employment of Bangladeshi youth in connectivity projects with Bangladesh.
various Multinational Corporations The nation, as mentioned before, is also
located in India. Bangladeshi’s talents India’s gateway to South-East Asia and
are recognized all over the world. is important towards the implementation
of the ‘Act East’ policy.
Connectivity Projects and
Transport Links Energy Cooperation
• Bangladesh’s geographical location • Presently, India exports over 660 MW of
makes it an ideal location for India electricity to Bangladesh every year. The
25
nation is rich in energy resources and can the NE-Indian region. Unlike Myanmar,
play a critical role in enhancing India’s Bangladesh has been firmly against all
energy security. types of anti-Indian activities operating
• India has constructed the Maitree Super from its soil.
Thermal Power Project which generates • The issue of terrorism and more
over 1320 MW of energy. specifically, that of Pakistan state
• With the assistance of Russian, India is sponsored terrorism is a cause for
playing a crucial role in the construction concern for both the nations. There is a
of the Roopur Nuclear Power plant which scope for further cooperation in terms of
has a potential to generate 2400 MW. de-radicalization of masses from both
This is one of the few examples of Indo- the nations.
Russian collaboration in other nations. • It is important for the two countries to
• Further, the two nations are presently explore an agreement in the field of
working on the construction of the India- cyber security.
Bangladesh Friendship Pipeline between • The two nations also cooperate in
Siliguri- Parbatipur and this is expected numerous multilateral fora such as the
to carry around 400,000 tons of diesel to SAARC, BIMSTEC and UN amongst
Bangladesh annually. others.
• India is keen to construct an oil pipeline • One major area where the two nations
from Myanmar to India through lack strong cooperation is in the field of
Bangladesh. However, Bangladeshi disaster management. Cyclones in the
resistance is proving to be a hurdle. Bay of Bengal affect both the nations.
Myanmar and Bangladesh do not share • Further, the two nations share over 50
good relations due to the Rohingya crisis. rivers and the Sunderbans National Park.
The area under the latter is undergoing
Defence/Strategic Relations erosion. ISRO’s Remote Sensing Satellite
• In defence relations the two nations are has revealed a large scale of erosion of
yet to sign the Defence Cooperation the mangroves in this region. This also
Agreement. Nevertheless, India has necessitates cooperation between India
extended a Line of Credit worth USD and Bangladesh.
500 Million and exports weapons and
weapon systems to Bangladesh. Cultural Relations
• The Joint Exercises between the two • As mentioned before, the cultural ties
Armies is called ‘Sampriti’ and the between the two nations are rooted in
Bangladeshi navy also participates in the shared history. Bangladesh celebrated
Milan Exercises conducted by the Indian 150 years of Mahatma Gandhi in 2019.
Navy. • Bengali poets Rabindranath Tagore and
• India also provides services to Bangladesh Kazi Nazirul Islam are popular in each
through the SAARC Satellite. A MOU on other’s nations.
Coastal surveillance systems is signed • The ‘National Digital Knowledge
between two. Network’ of India has now been extended
• Bangladesh is cooperating with India in to Bangladesh and a MoU between the
flushing out the various insurgents from Universities of Dhaka and Hyderabad is
26
also signed. • Problem of Rohingya refugees:

• Further, India should use its non- Bangladesh hosts over 11 lakh Rohingya
permanent membership of the UNSC refugees. The crisis in Myanmar has
to assist Bangladesh in its demand to triggered their exodus. India shares
prosecute the war criminals of the 1971 good relations with both Myanmar and
war from Pakistan. Bangladesh and didn’t want to upset its
ties with the former. Hence, apart from
executing ‘Operation Insaaniyat’ which
RECENT PROGRESS IN is a humanitarian relief operation, India
has not played an active role in terms
BANGLADESH of mitigating this crisis. This has led to
• In recent times, the people of Bangladesh considerable difference between the two
rejected religious radicalism. They nations.
adopted a secular Constitution. • Security in the border regions: In recent
• The people have supported their times, the Border Security Force (BSF) has
Government’s efforts in cracking cracked down on smugglers and illegal
down Islamic terrorism. Radicalization migrants from Bangladesh and shot them
attempts by ISIS are posing a challenge down. This has triggered a public crisis in
to the nation. Bangladesh. Bangladesh Rifles, the force
that guards the border on their side has
• Many Islamic terror groups supported by
shot down Indian troops belonging to the
the ISI are waiting to be launched across
BSF without any provocation. Many analysts
to India and execute terror attacks on
have attributed this recent religious
Indian soil. Therefore, it is important
indoctrination and the influence of the
for India to support Bangladesh in
notorious ISI on the Bangladeshi forces.
its attempts in curbing this religious
indoctrination. • National Register of Citizens: It has left
out 1.9 million people in Assam and they
• Bangladesh has also recorded an
are being labelled as illegal immigrants
impressive growth rate of over 7% in
from Bangladesh. But Bangladesh is firm
recent times.
in its stance that no migrants travelled
to Assam illegally during the 1971 war
IRRITANTS AND of independence and NRC may risk the
relations.
CHALLENGES • Teesta River Water dispute: There is a
The following are the irritants and challenges Joint Commission dealing with this subject.
between the two nations: It is possible that this can wreak havoc in
• China factor: China is financing over the relationship. It needs to be urgently
25 energy projects, Bangladesh’s addressed.
second nuclear power project and the
Bangabandhu communication satellite. Conclusion
Many port developments projects too are
• There is scope for India-Bangladesh
being executed. China has also trapped
ties to move to the next level, based
Bangladesh in its One Belt One Road
on cooperation, coordination and
project and China’s close presence to
consolidation.
India raises certain security concerns.
27
• Peace is the foremost requirement for

development. So the effective border
management is necessary for ensuring a
tranquil, stable and crime free border.
PROBABLE QUESTIONS
1. Domestic factors have upset the

relationship between India and
Bangladesh in recent times. Comment
2. The ‘China factor’ has been
overemphasized in India-Bangladesh
relations. Discuss
3. India needs to play a more active role
in the Rohingya crisis which will help
it gain influence in Bangladesh and
Myanmar. Comment
28
CHAPTER - 6
INDO-PAK RELATIONS
INTRODUCTION
• In recent times, the relationship between
India and Pakistan has been influenced
by acts of Pakistan state sponsored
terrorism against India and matters
related to the former state of Jammu and
Kashmir.
• Since the decision of the Indian Parliament
in August 2019 to abrogate Article 370 of
the Indian Constitution1 and the passage
of the Jammu and Kashmir State
(Reorganization) Act which facilitated
the creation of the Union Territories of
Jammu and Kashmir and Ladakh, the
HISTORY
two nations have downgraded their • The History of the two nations can be
diplomatic relations. traced back to the prehistoric times.
The Indus Valley Civilization with its
• Further, in complete violation of sites across both India and Pakistan is a
International Law including the Shimla testimony of the shared history between
Pact of 1972 and various other UN the two nations.
Agreements, Pakistan has altered
the demographic status of the Gilgit- • In the medieval times, the two nations
Baltistan area which is in Pakistan were ruled by the same invaders. The
Occupied Kashmir (POK). Turks, Mongols and Central Asians
invaded India and made it their home.
• One may wonder as to how two nations The defence of India was linked to the
who once shared common values and defence of the Khyber Pass in modern
historical and civilizational ties, became day Pakistan.
bitter arch rivals.
• In this module, we shall explore the
different factors involved in the
relationship between the two neighbours
who may be physically separated by the
Radcliffe line but still yearn to cooperate
with each other.
1 which granted special status to the erstwhile state

of Jammu and Kashmir.
29
first session at Bombay. Sir Syed Ahmad

Khan stoked fears that the INC is a
‘Hindu Party’ against the interests of the
Muslims. This could be considered as a
sign of betrayal from his earlier stand
which espoused unity between Hindus
and Muslims.
• 1905- Lord Curzon’s plan to partition the
province of Bengal comes into effect.
The Hindus and Muslims come together
against this move to break the unity of
India.
• 1906- The Muslim League formed in
Shimla by Nawab Salim Ullah Khan of
• In modern times, the same colonial Dacca and other nobles.
invaders ruled over the country. A cursory
• 1909- The passage of the Morley-Minto
study of the history between India and
reforms or the Government of India Act,
Pakistan will reveal that till August 14,
provides for separate electorates for
1947, the two nations were together. Their
Muslims.
culture, aspirations and values were the
same.
Difference between Separate Electorates
and Reserved Constituencies
Timeline up to the Creation of
• In Separate electorates, the candidate
Pakistan contesting the elections is a person for
• 1857- Sepoy Mutiny also called the First whom the seat has been reserved and
war of independence takes place against all voters are also all Muslims. This was
the Army of the English East India the system under British India. Article 326
Company. Hindu and Muslim soldiers of the Indian Constitution has abolished
fight together to reinstall Bahadur Shah ‘Separate constituencies’.
Zafar (the last Mughal emperor) as the • Under the present system backed by
emperor of India. They fail in their mission. the Indian Constitution. Let us assume
• 1875- Sir Syed Ahmad Khan, considered a particular electoral constituency has
to be a reformer amongst the Muslims been reserved for the SC/ST community.
had advocated in favour of education of In this case, only the candidate contesting
the Muslim community and encouraged the elections can be from the particular
the Muslims to engage with the British community. The voters can be anyone
which would help them gain benefits residing in the constituency and meets
for their community. He started the the conditions eligible to enrol as a voter,
Muhammadan Anglo-Oriental College in irrespective of his/her caste, religion or
the year 1875 at Aligarh, United Province region.
(Present day Uttar Pradesh). In 1920, this • 1930’s- For the first time the idea of
became the Aligarh Muslim University. Pakistan was mooted by a young
• 1885- Formation of Indian National under-graduate student of Cambridge
Congress (INC) and the holding of its University. Rehmat Choudhary came up
30
with the idea of a separate homeland for every religion. This was rejected.
the Muslims of India. • 1946- The Cabinet Mission Plan rejected
• His proposal was to include Western the demand for the creation of Pakistan.
Punjab, North-Western Frontier Province Following this, goons from the Muslim
(NWFP. Presently it has been named as League organized large scale rioting and
Khyber Pakhtunkhwa), Kashmir, Sindh, killing of innocent people in Calcutta and
Balochistan, East Bengal and Assam Noakhali (in present day Bangladesh).
as part of Pakistan where Muslims of • 1947- The Indian Independence Act, 1947
the Indian sub-continent would live in a or the Mountbatten Award agreed to
separate state. create a separate nation for the Muslims
• Further in his essay, he elaborated of the Indian sub-continent called
that other Muslim majority regions in Pakistan.
India such as Hyderabad, Bhopal and
Malabar amongst others should become
independent nations, owing their
allegiance to Pakistan.
• This essay was dismissed by Muhammad
Ali Jinnah, who was then part of the
Muslim League and a prominent leader
of the Muslim community.
• 1935- The Government of India Act, 1935
which emphasizes provincial autonomy
provides for holding elections to the
Provincial Assemblies.
• 1937- In the elections to the Provincial
Assemblies, the Muslim League was
completely rooted out.
• 1940- It was following the debacle in
the 1937 elections that Muhammad
• Pakistan was to include the following
Ali Jinnah revived the old essay by
territories: NWFP, Sindh, Balochistan. The
Choudhary and started the demand for
provinces of Punjab and Bengal were to
Pakistan, officially. It was at the 1940
be divided between India and Pakistan
Session of the Muslim League at Lahore
by Sir Cyril Radcliffe.
that saw for the first time the demand for
Pakistan, officially. • Finally, on August 14, 1947, Pakistan came
into being. Bengal and Punjab were
• 1945- MA Jinnah reiterated his demand
divided by a person who had never been
for Pakistan at the Shimla conference
to the Indian sub-continent before being
organized by Lord Wavell. He sought
assigned this task.
that no other party other than the
Muslim League were to be a part of the • It was easy to take out a pencil and
Viceroy’s Executive Council, representing draw a line across a map but it was
the Muslims. This was demanded despite done so without considering the state of
the fact that parties like the INC were population on both sides of the line.
secular and had representation from • Many were rendered homeless overnight
31
and this refugee crisis led to the and Kashmir. The Pakistani forces would
displacement of 10-12 million people and use this to invade India and capture the
the death of 2 million people. Hindus, state of Jammu and Kashmir.
Sikhs and Muslims died due to the riots • Pakistan lost the war. They over-
that followed after the partition. estimated the support they would receive
• Further, the 565 princely states were from the people of Jammu and Kashmir.
given the option of either joining India or The people defeated Pakistan.
Pakistan or retain their independence. • The Indian Armed Forces, further hit
• The secular character of the Indian Polity Punjab and occupied areas in Pakistan.
convinced many Muslims to stay back in • 1966- Both nations signed the Tashkent
India. Agreement which called for withdrawal
of both forces from areas that they had
Timeline from the Creation of captured.
Pakistan up to 2020 • 1971- War between the two sides ended
• 1947-1948- First war with Pakistan over with the creation of Bangladesh. The
the state of Jammu and Kashmir. area which was called East Pakistan
became a separate nation. India took
• 1949- Both sides signed the ceasefire
over 93,000 Pakistani troops as Prisoners
agreement called the ‘Karachi
of war (POW’s) and in accordance with
Agreement’. It created the Ceasefire Line
the Geneva Convention, they were
(CFL) which corresponds to the present-
repatriated back to their country.
day Line of Control (LOC) in the state of
Jammu and Kashmir. However, this line • 1972- Signing of the Shimla Agreement.
is demarcated only till Point NJ 9842. The Agreement ensured the repatriation
The Siachen Glacier lies beyond this. The of Pakistani POWs from India, India also
Agreement says that the line from NJ vacated the territories it had captured
9842 shall lie northwards. This indicates from Pakistan on the Western front and
that the entire Siachen Glacier belongs the CFL became the Line of Control
to India. Pakistan’s interpretation is that (LOC). The Agreement also stated that
this line lies to the Eastwards from Point all disputes between the two sides will be
NJ 9842. settled peacefully in a bilateral manner.
• 1950- The Nehru-Liaquat Pact was • 1978-79- Pakistani President General
signed. This pact emphasized on the Zia Ul Haq launches an operation to
need to maintain communal harmony on destabilize Punjab and Kashmir in India.
both sides of the Radcliffe line. It further This was also the time that the two states
facilitated the safe return of refugees to were facing insurgency issues. It lasted
both sides of the border. through the 1980’s.
• 1960- The Indus Water Treaty signed • 1984- India launched Operation
(mediation by World Bank). Meghdoot to throw out the Pakistani
troops from the Siachen glacier. They
• 1965- Under-estimating the Indian
succeed in their operation.
Armed Forces who had lost the Sino-
Indian war of 1962, Pakistan mounted • 1985- Meeting between General Zia Ul
Operation Gibraltar. The plan was to Haq and Prime Minister Rajiv Gandhi
instigate a rebellion from within Jammu yielded positive results. Both nations
32
agreed not to attack each other’s nuclear • The two nations also agree to maintain
facilities and also agreed to exchange a a ceasefire along the Line of Control
list of civilian nuclear facilities on the 1st (LOC). A ‘Composite Peace Process’ is
January of every year. This agreement launched.
was signed in 1988. Till date, it continues. • However, Pakistan’s devious plans do
• 1989- Pakistan supported insurgency not end here. They launch the ‘Karachi
begins in the state of Jammu and Project’ to encourage Indian homegrown
Kashmir. terrorists to avoid international sanctions.
• 1993- Pakistan backed terrorists organize Groups such as the Indian Mujahedeen
terror attacks across Bombay. are launched.
• 1994- Both Houses of Indian Parliament • 2006- One more terror attack in the city
pass a resolution re-affirming India’s of Mumbai. A Joint Counter Terrorism
position that the state of Jammu and Mechanism between the two countries is
Kashmir is an integral part of India. launched.
• 1998- Both nations test their nuclear • 2008- Terror attacks in Bengaluru,
weapons. India conducted the Pokhran Varanasi and Jaipur. A major terror
blasts. attack in Mumbai on November 26
which claimed the lives of more than 160
• February 1999- In a historical bus journey, people. Lashkar E Taiba carries out this
PM Atal Bihari Vajpayee visited Lahore Mumbai attack. The Indian Embassy in
and signed the Lahore Agreement. The Kabul too is attacked.
agreement stipulated that there is an
urgent need to usher in peace, settle all • 2009- The Sharm El Sheikh conference in
disputes in a peaceful manner and agreed Egypt. India falls for Pakistan’s promises
to improve connectivity between the two and accepts that it has been interfering in
nations. Various bus services and cross the issue of Balochistan for the first time
border railway links were established. and it agrees to sustain an uninterrupted
peace dialogue with Pakistan. This
• June 1999- In a sign of complete betrayal, means that even if there is a terror attack
Pakistani Armed Forces invaded and from Pakistan, India will still continue to
captured mountain features in Jammu talk peace with it.
and Kashmir. India fought back and
managed to throw the intruders out. • 2010- German Bakery bomb blast in the
city of Pune.
• 2001- Pakistan supported terror group
‘Jaish E Mohammad’ attacked the Indian • 2014- In a departure from norms, PM
Parliament. Pakistan President General Nawaz Sharif along with other SAARC
Pervez Musharaff also visits Agra for leaders is invited for the swearing in
a peace conference. However, nothing ceremony of PM Narendra Modi.
comes out of it. • 2015- In December, on his way back from
• 2004- India and Pakistan sign the Kabul, PM Modi stops over in Lahore to
‘Islamabad Declaration’ on the sidelines meet his Pakistani counterpart. However,
of the SAARC summit. Pakistan agrees on the very next day, Pakistan backed
to not let its territory or territory under terrorists attacked the Pathankot airbase
its occupation to be used for anti-Indian in Punjab.
activities. • In the very same year, Uri and Pampore
33
too were attacked in the state of Jammu Islamic Republic of Pakistan. However,
and Kashmir. there were 565 princely states being
• India also conducts its first surgical ruled by monarchs. The Act gave them
strike across the LOC and destroys terror the right to become a part of either of the
facilities and camps. republics or retain their independence.
Most of the states became a part of
• 2017- Pakistan opts out of the SAARC either of the republics. There were a few
Communication satellite. republics that toyed with the idea of
• 2019- February- Once again Pakistan remaining independent. They were urged
backed Jaish E Mohammad attacks a to reconsider their decisions and did so.
CRPF convoy immediately killing more The state of Jammu and Kashmir was
than 40 jawans in Pulwama in Jammu one of them.
and Kashmir.
• India conducts the Balakot surgical strike
along with 2 other places.
• India abrogates Article 370 of the Indian
Constitution which had conferred special
status to Jammu and Kashmir and the
Parliament also passes the Jammu and
Kashmir State (Reorganization) Act,
creating the Union Territories of Jammu
and Kashmir and Ladakh.
• November 2019- The Kartarpur Corridor
Project is inaugurated.
Kartarpur Corridor Project • The state had an overwhelming Muslim
population ruled by a Hindu King, Raja
Hari Singh. The state signed standstill
This corridor is 4.2 Km long connecting agreements with both India and Pakistan
Dera Baba Nanak Gurudwara in
and wanted more time to decide the
Gurdaspur district (Indian Punjab) to the
course of their future.
Darbar Sahib Gurudwara which is also
called the Kartarpur Gurudwara. This is • Meanwhile, Pakistani army men dressed
located in Narowal district of Pakistan as tribal invaders from the North West
Punjab. Pilgrims can visit the Gurudwara Frontier Province invaded the state on
at Kartarpur without a Visa from Pakistan October 22nd, 1947. The raja appealed
to India for help on October 24th. Prime
WHAT ARE THE MAIN Minister Nehru on the advice of the then
Governor General, Lord Mountbatten
ISSUES BETWEEN THE asked the Raja to sign the Instrument
of Accession to India, it would not have
TWO COUNTRIES? been possible to help otherwise as India
was not obliged to help any state which
Jammu and Kashmir was not a part of it.
• The Indian Independence Act, 1947 • The Instrument of Accession was
created the Republic of India and the signed on October 26th October 1947.
34
This document proclaimed the state of • Pakistan has tried to unilaterally alter
Jammu and Kashmir to be an INTEGRAL this position, and this had led to three
part of India and surrendered three main wars between the two sides including
subjects to the Central Government. 1948 (the 1971 war was fought over the
The three subjects were Defence, liberation of East Pakistan or modern-
Communications and External Affairs. day Bangladesh. Though the fighting
• The rest of the subjects were to did take place in the western sector. The
be retained by the kingdom of the subsequent Shimla Agreement that was
Maharaja. The PM promised the people signed converted the Cease fire line into
of Jammu and Kashmir that this was only the modern-day Line of control or LOC).
temporary and they would decide on the • The Jammu and Kashmir Constituent
question of accession at a later date. The Assembly ratified the Instrument of
leader of the masses, Sheikh Abdullah Accession in 1956.
approved the Instrument of Accession. • Efforts have been made to resolve
On October 27th, fighting began between this dispute from time to time. The
the two sides. Commonwealth group urged both
• On December 31st, 1947, India raised this nations to resolve the dispute. The
issue at the United Nations. Committed process began in 1963. India’s then Water
to the principles of the UN Charter and Resources Minister, Sardar Swaran Singh
believing in International Law, India (He also headed a committee whose
thought that this was a simple issue and recommendations led to the insertion of
Pakistan would be asked to move back its Article 51-A to the Indian Constitution
troops as they were the aggressors. India which describes the Fundamental Duties
became a victim of the cold war politics of Indian Citizens) and Pakistan’s Foreign
and most of the members of the UNSC Minister, Zulfiqar Ali Bhutto met at Delhi,
took Pakistan’s side and a resolution Calcutta and Islamabad.
was moved calling for a ceasefire. An • Even during these talks, Bhutto showed
UNMOGIP (UN Military Observers Group his insincere attitude and was more
for India and Pakistan) was appointed. interested in humiliating the Indian
• The fighting continued and the ceasefire delegation. These talks were meaningless.
agreement came into existence on The Pakistani side was keen on taking
January 5th, 1949. Both sides met and advantage of India after the latter’s loss
resolved to solve the dispute. The Karachi to China during the Sino-Indian war of
Agreement of 1949 delineated the Cease 1962. The talks between Swaran Singh
Fire Line (CFL) in the state of J & K. The and Bhutto did not make much headway.
line is up to Point NJ 9842 beyond which • Sensing an opportunity after the Sino-
lies the Siachen Glacier. Indian war, Field Marshal Ayub Khan
• The UN Resolution calls on both India directed the launching of Operation
and Pakistan to withdraw troops from Gibralter in 1965. Back then, India was
Jammu and Kashmir and a plebiscite in a precarious situation. Indians had
to be held once the first condition is suffered a humiliating loss during the war
achieved. Pakistan refused to comply of 1962, Pandit Nehru had passed away
with the resolution and continues to in 1964 and there was a lot of political
hold on to 1/3 of the territory of the state turmoil especially related to linguistic
illegally. issues, the economy was suffering after
35
successive droughts. Control (LOC). It also had a clause that

• The state of Jammu and Kashmir was India and Pakistan were to work towards
upset with the Union Government achieving peace and both sides would
after Sheikh Abdullah was arrested for avoid vitriolic campaigns against each
spreading disaffection against the Union. other.
Operation Gibralter’s mission was to • All disputes between the two sides were to
infiltrate troops into the state of Jammu be solved bilaterally in a peaceful manner
and Kashmir and instigate a rebellion through negotiations. Especially on this
against India and then the troops were issue of J&K, India has been consistent in
to invade and capture the state. its position that it is a bilateral issue to be
• The mission seemed to have been solved by India and Pakistan and there is
successful when large parts of the no place for any third-party intervention.
territory were captured. But the Pakistanis • Pakistan believes in the exact opposite
overestimated the local support that they despite the Shimla Agreement. The
would receive. treaty like others lasted only a few
• Also, the Indian Armed Forces took the months before Zulfiqar Ali Bhutto
war deep into Pakistani territory; this is continued spewing hatred against India.
something that the latter did not expect He is said to have issued a statement
while planning the war. Pakistan was which called for bleeding India through a
forced to back off J&K. The war ended thousand cuts. It is a policy that the deep
in a stalemate with the signing of the state continues to follow through non-
Tashkent Agreement in January 1966. conventional warfare.
• The war of 1971 was not directly related • Realizing the superiority of the Indian
to the dispute of J&K, however, there Armed Forces, Pakistan began to covertly
were implications. The war was called support various terror groups in its bid to
the Bangladesh Liberation war. The achieve the unification of Kashmir with
Indians had captured large parts of Pakistan.
Sindh, Punjab in the western sector and • After an uprising in 1989, Pakistan has
had liberated East Pakistan and helped continued to support, train and arm
in the creation of Bangladesh. militant groups to carry out attacks in the
• In addition, a mammoth 93,000 soldiers Indian administered part of Jammu and
of the Pakistani Army had surrendered Kashmir and increasingly throughout
after Dhaka fell. Prime Ministers Indira India.
Gandhi and Bhutto met at Shimla in • The well-known rift between the Pakistan
January 1972 and signed the Shimla Army and their civilian establishment
Agreement. This was the best opportunity was clearly visible in the year 1999.
for India to have crippled the Pakistani Prime Ministers Atal Bihari Vajpayee and
Army and insured for a better future. Nawaz Sharif had just concluded the
• However, this did not happen. India Lahore Agreement of 1999. There was
believes in maintaining a status quo and an atmosphere of good will which was
not revising the geo-political realities on conducive towards peace.
ground. • A few months later of this agreement, the
• The Shimla Agreement also converted Pakistani army in the guise of terrorists
the Cease Fire Line (CFL) into the Line of intruded across the LOC and occupied
36
many parts of J&K. However, India been the major reason behind all the
managed to win the war. instability that is being witnessed in the
• This issue has been described as the core state of J&K. Since the beginning of
issue between India and Pakistan. The 1980’s, various terror groups were formed
Pakistanis have portrayed it to be so and to bleed India. Some of these terror
give the impression that once the issue groups include the Lashkar e Toiba,
has been solved, everlasting peace can Jaish E Mohammad and the Jammu and
be established between both the nations. Kashmir Liberation Front. The state has
Many have described J&K to be the witnessed protests and terrorists’ attacks
‘Jugular vein’ of Pakistan. since the last three and a half decades.
There has been an exodus of the Kashmiri
Importance of Jammu and Kashmir Pandit community from the state. This
There are few reasons due to which this was done to alter the demographics
dispute appears to be important. Let us of the state and Islamize it. Due to this
consider the following: reason, Pakistan may not be sincere at
all to resolve this issue conclusively.
• Ideological: Pakistan was formed on the
basis of religion. The state of Jammu • Strategic Location: The state Jammu
and Kashmir with its Muslim majority and Kashmir shares borders Afghanistan,
population was supposed to have China, Pakistan, and the small Wakhan
become part of the newly formed Islamic Strip separates it from the Central Asian
Republic of Pakistan. As Pakistan hopes Republics. This location gives it an
to assume the leadership of the Islamic advantage in the geo-political sense. It
world, Kashmir will be their stepping has been a part of the ancient silk route.
stone towards this objective. Pakistan • In recent times, security related strategic
considers it to be an unfinished business aspects have acquired prominence due
and hopes to acquire the remaining part to the growing Sino-Pak Relations and
of the state as well as bleed India. the various projects being executed as
• National Interests: J&K acts as a glue to part of the China Pakistan Economic
keep Pakistan united. The dispute unites Corridor and the larger One Belt One
all people and provides a respite to the Road Initiative of China.
government which otherwise would have
to deal with all the social tensions and
insurgency related issues.
• The Pakistani armed forces command
an undue advantage in the nation. They
own various enterprises (estimated to be
worth about US $20 Billion) and run the
administration on a de facto basis. The
civilian administration is powerless. Under
such an arrangement, J and K becomes
a raison d’ etre of their existence and
continued hostilities with India can be
used to bamboozle the local population
and retain their position. C ourtesy : J ammu and K ashmir . homestead . com
• The Inter Service Intelligence (ISI) has
37
• Resources: The entire Indus river system

passes through this state and the nation
which controls it gets to dictate terms
advantageous to it in the Geo-political
sense. The river is a lifeline to the entire
nation of Pakistan.
• The glaciers and fresh water they provide
to the region and to India. The glacial
waters that flow through Kashmir provide
water and electricity to a billion people
in India. Pakistan also relies heavily on
glacial waters flowing from the region to
prop up its agricultural sector.
• There is confusion as to where the
Claim of India, Pakistan, and China over temporary border goes from there. The
the Kashmir Karachi Agreement only says that the
• India-controlled: The UT of Jammu Ceasefire line shall run northwards from
and Kashmir (earlier State), makes Point NJ 9842. India lays claim to the
up the southern and eastern portions entire glacier due to this clause. Pakistan
of the region, totaling about 45% of on the other hand insists that the
Kashmir. ceasefire line runs eastwards from Point
NJ 9842. This would grant them access to
• Pakistan-controlled: Two areas called
the entire glacier.
Azad Kashmir (GoI uses the term POK),
Gilgit and Baltistan make up the • The dispute was not that serious till the
northern and western portions of the year 1984. Intelligence reports suggested
region, totaling about 35% of Kashmir. that Pakistan was making arrangements
to occupy parts of the glacier. They
• China-controlled: One area called
almost succeeded before Operation
Aksai Chin in the north-eastern part of
Meghdoot was launched by the Indian
the region, equalling 20% of Kashmir.
Army and the posts were captured.
About the Siachen Glacier
Siachen Dispute • The glacier is located on the Karakoram
• The Karachi Agreement of 1949 lays ranges. Siachen is the 5th largest glacier
down the cease fire line (CFL) in the state of the Karakoram Range and second
J&K up to Point NJ 9842 on the map. largest glacier in the world.
• The Nubra River originates in the glacier.
It is a tributary of the Indus River.
• The glacier itself stretches to about 75
kilometers from Point NJ 9842.
Strategic Significance of Siachen
Glacier
• Siachen may have been occupied
due to faulty military appreciation
38
but notwithstanding that, its strategic is permitted to use the remaining 20%
significance is outlined by the following: of the water present in the west flowing
• Saltoro Ridge occupation is staking our rivers and the east flowing rivers of Ravi,
claim beyond NJ 9842 in the event of an Sutlej and Beas. India is allowed to use its
eventual settlement along the Line of share of the west flowing rivers for power
Control and the Actual Ground Position generation, irrigation and transport.
Line. • As per the provisions of the treaty,
• India has always claimed that the Commissioners from both the nations
entire state of J&K including Northern have been appointed and the Indus
Areas acceded to India on 26 Oct 1947. Water Commission has been constituted.
Occupation of Saltoro is therefore This commission consists of members of
occupation of Indian territory by the both nations who have sound technical
Indian Army. It is non-negotiable. knowledge. The treaty mandates that
any dispute should be settled bilaterally
• If the line joining NJ 9842 to Indira Col i.e, at the first instance and after that any
the line along Saltoro Ridge is extended aggrieved party can approach the
to Indo – Tibet boundary, major part of International Court of Arbitration.
Saksgam Valley illegally ceded to China
by Pakistan in 1963 will fall into Indian • Any dispute over designs relating to
Kashmir. projects can be settled by neutral experts.
The World Bank remains a permanent
• Chinese will therefore have to negotiate mediator in the dispute.
with India for settlement of Saksgam
valley since they have steadfastly • India has resorted to the construction of
maintained that status of Saksgam Valley hydroelectric dams on the west flowing
will be decided on eventual settlement of rivers. Let us explore some of the projects.
J&K problem. Baglihar Hydro Power Project: This
• It needs to be remembered that the origin has been built on the Chenab River. It
of Siachen dispute lies in the fact that was approved in 1996, work began in
both the Karachi Agreement of 1949 and 1999. The second phase of the project
the Shimla Agreement of 1972 have left began in 2012 and was completed in
the status of Indo-Pak boundary vague 2015. The project is worth 900 MW.
North of Pt NJ 9842. While the Karachi Pakistan raised this issue but did not
Agreement says “From Pt NJ 9842, the succeed in the arbitration.
ceasefire line will run Northwards to Tulbul Navigation Project/Wullar
the Glaciers”, Shimla Agreement does Barrage: This is a project that was
not even make a mention of it. This is started in the year 1985. The project
inexcusable. hopes to construct 439 feet long
and 40 feet wide barrage at the
River Water Disputes mouth of the Wular Lake to ensure
that water continues to flow during
• The Indus Water Treaty was signed the lean season (October-February).
between the two nations in the year 1960 Water to the tune of 4,000 cusecs is
after the World Bank mediated. expected to flow. This project would
• The treaty grants Pakistan access to a generate employment in the tourism
little more than 80% of the west flowing sector, ensure rapid transport in North
rivers of Indus, Jhelum and Chenab. India Kashmir valley and facilitate trade. This
39
would mean controlled flow of water. Sir Creek

Pakistan raised objections and the
work was halted in 1987. In September This is a 96 kilometres long estuary on the
2015, India constituted a high-powered Rann of Kutch. It opens up into the Arabian
committee to review and restart the Sea, divides the Gujarat state of India from
project. the Sindh province of Pakistan.
• Pakistan’s apprehensions stem from the What is the importance of SIR

fact that this project may restrict the CREEK to both the nations?
flow of the Jhelum River. Pakistan feels • Maritime Boundary: The Exclusive
that this may give India an upper hand Economic Zone (EEZ) of a nation gives
and the latter can stop the water flow it the sole right to explore and exploit
anytime to the former. the natural resources present within
Kishanganga and Ratle Hydro Power this zone. This is in tune with the United
Projects: The former is a 330 MW Nations Convention on Law of Seas. So
project constructed on a tributary the resolution of sir creek will help in
of the Jhelum River. It hopes to use determining the limits of EEZ.
water for power generation and then • Security importance: Sir Creek has been
send the water back into the river. primarily viewed as a maritime, or a
The work for it began in 2007. The strategic issue. Over the year this region
work stopped in 2011 after Pakistan has become main route to smuggle drugs,
raised its objections. In February 2013, arms and petroleum product to India.
the International Court of Arbitration
gave an interim ruling, giving India • Natural Resources: Much of the region is
the go ahead. This was confirmed in rich in oil and gas below the sea bed, and
December 2013. control over the creek would have a huge
bearing on the energy potential of each
The Rattle project is an 850MW project nation. This area is also a great fishing
on the Chenab River. destination for hundreds of fishermen
• Pakistan’s objections are that these two from both India and Pakistan.
projects use almost 40% of the water • This has led to complications and both
present in the West Flowing Rivers. They sides have increased their firm grips on
had approached the World Bank calling their respective positions.
in for the appointment of the Chairman
of the International Court of Arbitration Historical positions of both the nations have
and India called for the appointment of been dictated by the following facts:
a ‘neutral expert’. The World Bank has • An agreement was reached between Rao
halted the proceedings in this matter. of Kutch and the British Governor of the
This is in consonance with India’s point of Sindh Province in 1914. This agreement
view that this issue can be resolved in a divided the estuary and set the eastern
bilateral manner by the technical experts limit as the boundary between the two
from both sides. provinces. This effectively gives Pakistan,
entire control of the estuary. Pakistan
• Other Projects: Recently, the Government
harps upon this agreement to claim the
of India has fast tracked three projects in
entire estuary.
J&K. These projects are Sawalkot, Pakal
Dul and the Bursar dams. Only the last • Pakistan’s Position: Pakistan claims the
one is nearing completion. entire Sir Creek, with its eastern bank
40
defined by a “green line’’ and represented weapons is under threat as radical

on a 1914 map belongs to it. Accepting Islamists take over the nation.
Pakistan’s premise on the “green line”
would mean loss of about 250 square Sino-Pak Cooperation
miles of EEZ for India.
• In the strategic world, there is a maxim
• India’s Position: India says that the which reads that: enemy’s enemy is a
green line is an indicative line and felt friend. While in the strict sense, India
the boundary should be defined by the and China are not enemies, the brewing
“mid-channel’’ of the Creek as shown on rivalry cannot be overlooked. In the
a map dated 1925. current times it appears that China is
• India supports its stance by citing the propping up Pakistan against India.
Thalweg doctrine in international law. In what appears to be a complete
It states that river boundaries between violation of international law, China
two states may be, if the two states has been delivering missile technology
agree, divided by the mid- channel. and engaging in nuclear commerce
Pakistan maintains that the doctrine with Pakistan. Sino- Pak economic
is not applicable in this case as it most cooperation under normal circumstances
commonly applies to non-tidal rivers, does not evoke any response from India.
and Sir Creek is a tidal estuary. Defence and nuclear cooperation do
have security implications for India.
• Unmindful of its commitments under
International Law, Pakistan ceded a part
of this territory called the Shaksgam
Valley to China after singing the Sino-
Pak Cooperation Agreement, 1963. It is
often said that Sino-Pak friendship is
higher than the Himalayas and deeper
than the Gwadar port.
China-Pakistan Economic Corridor
• This is a project which aims to create
• A joint survey conducted by both the an industrial corridor from Kashgar
nations in 2007 found that the creek had (China) to Gwadar. It aims to connect
shifted 1.5 Kms eastwards. both these places by high speed railway
links, roadways and also building a port
Nuclear Challenge at Gwadar. Initially, the provinces of
Khyber- Pakhtunkhwa and Baluchistan
• India has over 150 nuclear warheads and were to have been benefited. The route
Pakistan has over 160 nuclear warheads. was later amended and as of today, the
India is very clear as far its policy is corridor passes through the territories of
concerned. It has adopted the ‘No first POK, Punjab, Sindh and Balochistan.
use policy’. However, Pakistan’s nuclear
weapons have been designed to target • Pakistan’s power situation is also said
India. to improve with the upgradation of the
Karachi Nuclear power plant project
• Further, the safety of Pakistan’s nuclear (KANUPP) and the installation of the
41
Chashma 3 and 4 nuclear reactors in • With respect to India, it is generally

Punjab. believed that this issue started after the
• China hopes to use Gwadar and other 1971 war during the Punjab insurgency
infrastructural facilities to cut their which intensified in the year 1978. This
dependence on the Strait of Malacca. was after the Pakistani deep state which
Oil from the Persian Gulf to the eastern lost the 1971 war, realized that defeating
Chinese ports has to traverse almost a India in a conventional warfare is next
distance of 4500 Kms. The route is prone to impossible. However, B Raman,
to attacks from the pirates and presence former Additional Secretary of the
of certain adversaries. The CPEC ensures Research and Analysis Wing (RAW),
that this is circumvented and China is India’s external intelligence agency in his
assured of supply of oil throughout the book, “Terrorism-Yesterday, Today and
year. CPEC also hopes to develop the Tomorrow’ opines that this trend started
restive provinces of North West china. way back in 1956 when Pakistan trained,
equipped and helped in the infiltration
• There are certain concerns as far as India of the Mizo insurgents to fight the Indian
is concerned. Pakistan too would do good state.
to tackle them as it mutually affects both
the nations: • After the 71 war, Pakistan evolved a policy
of non-conventional warfare against
• Most importantly the project passes India. As mentioned before, it was ZA
through the disputed territories of Bhutto who remarked that Pakistan shall
Pakistan occupied Kashmir. be in a state of continuous war against
• The northernmost point of Pakistan India and shall bleed it to death by a
connected by Railways is at a place thousand wounds.
named Attlee. The CPEC hopes to extend • It was his successor who deposed him in a
this connection by a distance of almost military coup General Zia Ul Haq who put
600 Kms to the Khunjerab pass located this into practice. Apart from launching
on the Sino-Pak border. Pakistan does Operation Tupac in the state of Jammu
not seem to realize that this link passes and Kashmir, he also began to support
through some of the high Himalayan the Khalistani insurgents (a small group of
mountain ranges which are earthquake militants fighting to separate the state of
prone. This can also affect India. Punjab from the Indian union). The 1980’s
were a tumultuous period in the history
WHAT IS THE REAL ISSUE? of India who battled the insurgencies in
Kashmir and Punjab and also dealt with
While we have discussed the stated issues the LTTE issue in Sri Lanka and at home.
between the two nations, let us discuss
The insurgency in Punjab almost ended
what is the real issue now.
with the signing of the Rajiv-Longowal
• The issue is that of Pakistan State accord and the violence came to an
Sponsored terrorism against India. end after 1993. However, in recent times,
Pakistan is one of the few and rare states with the covert support of Pakistan, the
which uses terrorism as a tool of its Khalistani insurgency is being revived in
foreign policy. This has been seen in its India and abroad.
immediate neighbourhood (Afghanistan
• The period saw a pattern of hijacking of
and India) and beyond.
aircrafts (Example-Kanishka Bombing),
42
targeted killings of innocents and were responding to genuine grievances.

members of the security forces and Groups such as the Indian Mujahideen
government servants. It was a decade of were formed exclusively for this purpose.
terror. The 2006 Mumbai train blasts, the blasts
• With the Indian economy undergoing of 2008 in Bengaluru, Hyderabad, Delhi
massive structural reforms in 1991 and and Ahmedabad were attributed to this
the growth rate picking up, the urban group.
centres were introduced to this old In recent times, Pakistan has also been using
phenomenon of terrorism. It brought the cross-border trade in Kashmir for illegal
Pakistan sponsored terrorism closer to activities. Trade between the two parts of
Indian homes. It started with the 1993 Kashmir has now been suspended.
Bombay blasts which were conducted by • The issue of Fake Indian currency notes
the Bombay underworld led by Dawood (FICN) is a cause for major concern.
Ibrahim. He was generously supported by Pakistan continues to push this into
the Pakistan Government and the deep India by various routes such as Nepal,
state. Bangladesh, through the Line of Control
• No major Indian city has been spared (LOC) and through the gulf nations
of this monstrous phenomenon and it is among many others. According to a
only innocents who have suffered. The newspaper article, a study conducted by
intelligence Agencies remain alert and the National Investigation Agency (NIA)
continue to warn of attacks originating showed that at any given point of time
from Pakistan. In recent times, the 26/11 there is INR 4 Billion worth of fake Indian
attacks of 2008 in Mumbai is a major currency which is in circulation.
irritant in the ties between the two • The second major issue is the Pakistan
nations. Pakistan has refused to probe Army’s reluctance to shed its power and
either this or the Pathankot attack of the resources it controls. Any peace
2016. deal with India and the real settlement
• On the side-lines of the SAARC Summit of disputes will deny the Pakistani
in Islamabad in 2004, India and Pakistan armed forces, their power and financial
signed the Islamabad Declaration, resources.
which among other things required that
Pakistan shall not allow its territory to be HOW ARE THEY
used for activities against India. However,
this lasted only for a short period and COOPERATING AND WAY
even recently the deep state has been
engineering attacks against India. FORWARD
• For a brief period after the signing of this There have been attempts at enhancing
treaty, the deep state formed something cooperation between the two countries.
known as the Karachi Plan. The objective However, till the time the main issue is solved,
of this project was to ensure that acts any other cooperation is meaningless.
of terror perpetrated against India were • Economic Ties: As far as the economic
to be shown as being homegrown and cooperation is concerned, the trade
not ISI sponsored. It was to be shown between the two countries is little less
that the Muslim Population in India was than USD 2 billion. India still continues
dissatisfied with the government and to export Pharmaceutical and other
43
surgical instruments to Pakistan. to religious shrines between India and

• India granted Pakistan, the Most Pakistan is governed by the Bilateral
Favoured Nation (MFN) in 1996 and Protocol on Visits to Religious Shrines
suspended it in 2019 after the Pulwama signed between India and Pakistan
attack. in 1974. The protocol provides for
three Hindu pilgrimage and four Sikh
• Pakistan has refused to grant this status pilgrimage every year to visit 15 shrines in
to India. Indian industries are far superior Pakistan while five Pakistan pilgrimage
to Pakistan’s and this has prevented visit 7 shrines in India. Ex: In November
Pakistan from granting the MFN status 2019, India and Pakistan operationalized
to India. the Kartarpur Corridor project.
• Trade through Third Party: A lot of trade • Another religious corridor project that
between the two countries is conducted is explored is the Sharda Peeth corridor
through third states such as the UAE. As project. The temple is located in Pakistan
per various reports, the bilateral trade Occupied Kashmir (POK).
between the two nations is estimated
to grow at USD 10 billion, if the relations • Intelligence Sharing: Terrorism is the
improve. double-edged sword which affects both
India and Pakistan and also hampers
• Connectivity: Pakistan has refused India global peace at large. So, India and
the right to connectivity. India seeks to Pakistan should share information on the
engage with Afghanistan in the economic movement of militant groups in Pakistan
terms and transit through Pakistan to simultaneously increase transparency
will be helpful. However, Pakistan has and trust between the two countries.
refused to permit Indian trucks to travel
to Afghanistan. • Cultural ties: Normally, cultural relations
do improve the relations between the
• India was also pursuing the Iran- two countries. However, this holds true
Pakistan-India oil pipeline and the only when nations have genuine disputes
Turkmenistan-Afghanistan-Pakistan- and are keen to settle it. In recent times,
India gas pipeline. Both these projects Indian movies have been banned in
have been stalled presently. Pakistan and in retaliation the demand
• Cooperation at UN: One area where the for ban on Pakistani artists in India arises.
two nations are cooperating is the field
of UN Peacekeeping forces. The forces Conclusion
serve together. In the past, there has
• In conclusion, it can be said that while
been intelligence cooperation between
Pakistan is obsessed with India, India
the two nations. However, it has met with
was also obsessed with Pakistan until
limited success.
recent times. However, this policy has
• Cooperation at Multilateral groups: been changed since 2014. India as an
Multilateral groups such as the emerging power, needs to move beyond
South Asian Association for Regional its western neighbour.
Cooperation (SAARC) have been stalled
• India definitely wants peace with all
due to Pakistan and its bureaucratic
nations including Pakistan, but these
nature.
peace overtures in the past have been
• People to People Contact: The visit construed as a sign of weakness and
44
due to the Pakistani armed forces and

their dislike towards peace, India has
been frequently attacked. India has also
probably understood that Pakistan needs
to be taught a lesson to mend its ways.
PREVIOUS YEAR QUESTIONS (PYQ)
• Terrorist activities and mutual distrust

have clouded India-Pakistan relations.
To what extent the use of soft power
like sports and cultural exchanges could
help generate goodwill between the two
countries? Discuss with suitable examples
(15 marks) (250 words) (2015)
PROBABLE QUESTIONS
1. The actual issue between India and

Pakistan is not even related to any of its
stated issues. It is a clear disinterest on
the part of the ‘real rulers’ of Pakistan
who enjoy all the financial resources. A
war like situation with India helps them
retain their positions. Comment (15
marks) (250 words)
2. The only dispute as far as the issue of
Jammu and Kashmir is concerned is
that of Pakistan Occupied Kashmir.
Comment (15 marks) (250 words)
45
CHAPTER - 7
INDIA-SRI LANKA RELATIONS
INTRODUCTION RELATIONSHIP
In recent times, the relations between India • It was through India that Buddhism
and Sri Lanka, which was expected to spread to Sri Lanka. Emperor Ashoka of
deteriorate following the victory of Lt. Colonel the Mauryan dynasty sent his diplomatic
Gotabaya Rajapaksa in the Presidential agents to many parts of the world
elections of 2019 and his brother Mahinda including Sri Lanka.
Rajapaksa as the Prime Minister in the general
elections, has been one that has rather • It was Theravada Buddhism that caught
matured. Both nations have recognized each the imagination of the island nation.
other’s concerns and have expressed their • Sri Lanka has also been invaded by many
willingness to address it. Indian kingdoms such as the Chola and
the Pallava dynasties.
Recent Developments • Sri Lanka too gained independence from
• Following the victory of the President the British in 1948. Ever since, ethnic
representing the Sri Lankan Podujana tensions have taken over the island.
Perumana (SLPP) party, India was the • The two main communities in the island
first nation to send its External Affairs are Sinhalas and Tamil community. The
Minister and establish rapport with the latter mostly reside in the Central, North
new Government. President Gotabaya and Eastern provinces.
Rajapaksa too reciprocated and visited
India as his first foreign destination after • From the very beginning, the Sinhalese
taking over the reins in November 2019. wanted to deny space to the Tamil
community who were educated and
• Prime Minister Mahinda Rajapaksa held important positions in the Civil
visited India in February 2020. Services, Judiciary, Business and were
• There are certain issues that are prevalent also labourers and accountants.
in the relationship. However, both nations • The Sinhala Only Act was introduced in
have recognized that the overall bilateral the year 1956 which made ‘Sinhalese’, the
relationship cannot be affected due to only national language of Sri Lanka.
these issues.
• The Tamil population was sidelined and
• In this module, let us understand the denied equal opportunities available to
relationship between India and Sri Lanka, the Sinhala population.
two important maritime neighbours.
• This culminated in organized riots and
killing of the Tamil population in the
SHARED HISTORY AND 1970’s and 1980’s.
• Various terrorists’ organizations such
ETHNIC ISSUES IN THE as the Liberation of Tamil Tigers Eelam
46
(LTTE) were formed and Sri Lanka’s since the victory of the President in 2019,
stability was threatened. There was a there are news reports that this may be
civil war in Sri Lanka in the 1980’s. The diluted.
LTTE had become a threat by then. • It is this factor that has influenced India’s
• India in the form of the Indian Peace relationship with its southern neighbour the
Keeping Force (IPKF) assisted the Sri most. It is one of the examples of domestic
Lankan armed forces. The Indian Army politics interfering with the foreign policy
finally withdrew in 1990. However, this led of a nation. The State of Tamil Nadu actively
to tensions in the relationship between influences India’s national politics and the
the two countries. Many in the island treatment meted out to the Tamil population
nation felt that India was interfering in its in Sri Lanka actively influences it.
internal matters. It took a while for the • It was under the pressure from the coalition
relationship to get back to improve. partners that forced the government to vote
• In 1987, the Indo-Sri Lankan accord also against Sri Lanka twice at the United Nations
called the Rajiv Gandhi-Jayewardene Human Rights Council (UNHRC).
accord was signed. It sought to give • India needs to pick its long-term interests vis
autonomy to the provinces of North and a vis Sri Lanka and not cater to the domestic
East where the Tamil population was in political issues.
majority. This accord though could not
be implemented. Related Information
• However, one of the provisions of this Apart from the 13th Amendment to the
accord was implemented. It was the Constitution, the 19th Amendment too
13th amendment to the Sri Lankan has been in the news. The latter dilutes
constitution. Before this amendment, the executive powers of the President
Sri Lanka had a unitary polity. This of Sri Lanka. It was implemented by the
Amendment Act provided for federalism. previous government in 2015. Presently,
It established Provincial Councils and both the President and Prime Minister
introduced Tamil and Sinhalese as the have vowed to restore the executive
national languages of Sri Lanka and powers of the President.
provided for English as the link language.
Pillars of Cooperation
• However, this did not end the menace
of terrorism in the island nation. It was In this module, we shall focus on three most
important facets of cooperation between
under the leadership of Prime Minister
the two nations.
Mahinda Rajapaksa that the LTTE was
finally defeated in 2009.
Economic Cooperation and
• The organization wreaked havoc in both
India and Sri Lanka. It was responsible
Development Assistance
for the assassinations of former Indian • Ever since, the two nations signed the
Prime Minister Rajiv Gandhi in 1991 and India-Sri Lanka Free Trade Agreement
former President of Sri Lanka Ranasinghe (FTA), the quantum of trade has been
Premadasa. increasing. As of 2018, the bilateral trade
• The 13th amendment has been in the news. between the two nations stood at USD
India has been consistently insisting that 4.93 Billion. While India exported goods
this provision be implemented. However, and services worth USD 4.16 Billion, it
imported goods and services worth USD
47
767 Million. requested for the further development

• The main items of export from India of housing projects.
include IT, Pharmaceutical products, and Refurbishment of the southern railway
automobile products amongst others. line and the Colombo-Matara railways
• The FTA has also provided opportunities project (it is worth USD 167.4 million
for the Sri Lankan textiles sector to and this line was damaged during the
enhance their exports into India. 2004 Tsunami),
• India is also amongst the top 5 foreign MoU to develop Trincomalee port
investors in Sri Lanka. India has invested and oil tank farms, LNG Terminals in
about USD 1.23 Billion in diverse sectors Kerawalapitiya near Colombo was
such as telecommunications, tourism and also signed recently,
IT, retail and real estate amongst others. Upgrading the Jaffna-Colombo
• In recent meetings between the two airports,
nations, IT, Education, Health sectors electricity transmission lines from India
have been identified as further areas for is being planned,
cooperation. Upgradation of the Kankesanthurai
• Sri Lanka has also invested in the Indian port
economy. Many Sri Lankan companies • Multilaterally, the two nations are part
operate mostly in the city of Vizag in the of the Asian Tea Alliance which also has
state of Andhra Pradesh. China, Japan and Indonesia, the other two
• Finally, in a note of disharmony, Sri Lanka important manufacturers of tea in the Asian
has been lukewarm to one of the joint continent.
Indo-Japanese investment projects.
India-Sri Lanka Free Trade Agreement
• The construction of the East Container (ISFTA)
Terminal in Colombo has been delayed
• The main framework for bilateral trade
due to clearances from Sri Lanka. This
has been provided by the India-Sri Lanka
has vitiated the investment relationship
Free Trade Agreement (ISFTA) that was
between the two nations.
signed in 1998 and entered into force in
• India is also one of the largest providers March 2000.
of financial assistance for various
• The basic premise in signing the ISFTA
development and infrastructure
was asymmetries between the two
development projects. Till date over USD
economies, local socio-economic
1.2 billion has been provided to Sri Lanka
sensitivities, safeguard measures to
for development assistance. During the
protect domestic interests, and revenue
recent visit of the President to India, a
implications so as not to impact high
further amount of USD 450 million has
revenue generating tariff lines in the
been pledged.
short term.
• The following are some of the projects for
which a Line of Credit has been provided Debt Problem of Sri Lanka
for:
• It is estimated that Sri Lanka’s total
Construction of over 50,000 houses in external debt is around USD 60 billion.
the Northern and Eastern provinces, Out of which for the financial year 2020-
further Indian funds has been 2021, Sri Lanka owes USD 4.5 billion to its
48
debtors. and maritime commerce of nations.

• Sri Lanka has sought deferred payments. As nations compete in gaining
It is in this regard that the two nations influence in this region, there are
are holding discussions for the deferred mounting threats of piracy too.
payment of USD 960 million. This is the India which always resisted outside
amount that Sri Lanka owes India. influence in this region has now
• Further two currency swap agreements expressed its willingness to work with
are being negotiated with the Reserve other like-minded nations such as
Bank of India (RBI), which has already Japan and the US.
agreed to a currency swap agreement After the third edition of the Indo-US
amounting to USD 400 million. 2+2 Strategic Dialogue, US Secretaries
• China which regularly indulges in debt of State and Defence will be proceeding
trap diplomacy has already taken over to Maldives, Sri Lanka and Indonesia
the Hambantota Port from Sri Lanka for to gain the support of these nations for
a 99-year lease. This was done due to the peaceful development of the IOR
non-repayment of loan. and the Indo-Pacific region.
• Further China is considering another China’s influence on Sri Lanka has
concessional loan of USD 500 million. been written in the above-mentioned
This is in addition to the already granted columns. Their activities of debt trap
USD 90 million. diplomacy need to be urgently curbed.
• Nations like Sri Lanka cannot survive on Hambantota is one of the String of
loan defaults and surrendering physical Pearls to encircle India.
assets to China poses a security threat The second category is related to the
to India. issue of terrorism. The Easter attacks
of 2019 has revived the cooperation
Defence/Strategic Relations between India and Sri Lanka on the
• Firstly, the two navies participate in the issue of terrorism.
SLINEX bilateral naval exercises. The It was a terror group named ‘Tawaheed
two Armies participate in the Mitra Shakti Jamaat’ based out of the Indian state
bilateral exercises. of Tamil Nadu that organized these
• Secondly, there exists a dialogue mechanism killings in the island nation. India
between the three National Security shared intelligence regarding these
Advisors of India, Sri Lanka and Maldives. attacks with Sri Lanka. However, the
This has also translated into trilateral naval latter completely ignored it.
exercises. After the victory of the new President,
• The Defence/Strategic relations can be both sides have reaffirmed their will to
studied under two broad categories. fight terrorism together. India also lent
more than USD 400 million to Sri Lanka
The first category relates to the issue and this amount included the fund to
of safety in the Indian Ocean Region boost counter terrorism capabilities of
(IOR). Sri Lanka plays a critical role the Sri Lankan forces.
in ensuring the safety of the Indian
Ocean Region. The Indian Ocean Finally, the cooperation between the
Region is critical to the energy security two nations extends to many of the
49
multilateral forums including SAARC, Sri Lankan prisons and their boats and other
BIMSTEC and others. fishing equipment have been destroyed.
India should play a more proactive • The deep-sea trawling undertaken by Indian
role as it assumes the non-permanent fishermen has also destroyed the sea bed on
membership of the UNSC. The errors both the Indian as well as Sri Lankan sides.
committed in the past in forums such • There exists a Joint Committee established
as the UNHRC should be corrected by both nations to solve this issue. Till date,
now. no permanent solution has been found.
• During the visit of the Sri Lankan President
Cultural Relations to India, as a gesture of goodwill, Sri Lanka
• As mentioned before, it is Buddhism and released all Indian fishermen lodged in Sri
Hinduism that connect the two nations. Lankan prisons.
In this regard, during the recent virtual
conference between the two PM’s,
India has pledged USD 15 million to
further these ties between the Buddhist
institutions between the two sides.
• In terms of tourism, India sends one of
the highest number of tourists every year
to the island nation.
• The Indian Council for Cultural Relations
also provides scholarships to Sri Lankan
students to study in India.
• The Government of India is also working
with the Government of Sri Lanka for the
preservation of the Tamil language.
OTHER ISSUES AND

CHALLENGES
• Apart from the above-mentioned challenges,
one issue that has the potential to spoil the
relationship between the two countries is
the issue of safety of fishermen.
• Many fishermen from the state of Tamil
Nadu cross the maritime boundary to catch
fish. It is generally believed that the catch is
more prosperous on the Sri Lankan side.
• Sri Lanka has reacted violently and their
navy has fired upon these fishermen and
killed them on the spot.
• In many cases, they have been imprisoned in
50
Related Information
The Palk Bay
• It is the shallow waters of the Palk Bay and geographical contiguity between India
and Sri Lanka facilitated the movement of ideas, goods, and men.
• The Palk Bay, a narrow strip of water separating the state of Tamil Nadu in
India from the Northern Province of Sri Lanka.
• The bay is 137 km in length and varies from 64 to 137 kilometers in width, is
divided by the International Maritime Boundary Line (IMBL). Bordering it are
five Indian districts and three Sri Lankan districts.
Katchatheevu Island:
• It is an uninhabited off-shore island in the Palk Strait originally owned by a
king of Ramnad (present-day Ramanathapuram, Tamil Nadu).
• The island is used by fishermen to dry their nets.
• During the British rule, it was administered jointly by India and Sri Lanka.
• In the early 20th century, Sri Lanka claimed territorial ownership over the
islet, so in 1974 India ceded the island to Sri Lanka, through a joint agreement.
• In 1976, through an exchange of letter, both India and Sri Lanka agreed to
stop fishing in each other’s waters.
• Tamil fishermen believe that Kachchatheevu is traditionally their territory and
so they have a right to fish there.
• The Sri Lankan authorities believe that this endangers the livelihood of Sri
Lankan fishermen.
Way Forward
• As both countries have a democratic setup there is scope for broadening and deepening
the ties. Also both the sides needs to focus more on its traditional and cultural ties to
51
improve bilateral relations

• Starting of ferry services between India
and Sri Lanka can improve people to
people linkages
• Both countries should try to work out
a permanent solution to the issue of
fishermen through bilateral engagements.
• Comprehensive Economic Partnership
Agreement (CEPA) must be signed to
improve the economic cooperation
between both countries.
Conclusion
So, it can be said that the relations between
India and Sri Lanka need to be continuously
nurtured and there is no scope for any laxity.
The relationship has a lot more potential to
grow, if both the sides strive to address the
irritants diplomatically and peacefully.
PAST YEAR QUESTIONS (PYQ)
1. In respect of India-Sri Lanka relations,

discuss how domestic factors influence
foreign policy. (10 marks) (150 words)
(2013).
2. ‘China is using its economic relations
and positive trade surplus as tools to
develop potential military power status
in Asia’. In the light of this statement,
discuss its impact on India as her
neighbour. (10 marks) (150 words) (2017)
52
CHAPTER - 8
INDIA-MALDIVES RELATIONS
INTRODUCTION and captured northern atolls of Maldives.
• India and Maldives are coastal • Maldives had become a British colony
neighbours. However, it is not just the in the modern period. They gained
geographical proximity that has brought independence only in the year 1965. Ever
the two nations together. since, there has been a state of political
instability in the island nation.
• India established formal diplomatic
relations with Maldives after the • For the period between 1965-1978,
independence of Maldives from the Ibrahim Nasir ruled the islands. From
British rule in 1966. 1978- 2008, President Abdul Gayoom
ruled. He remains the longest serving
• Since 2018, the warmth and friendship President of the island.[ During this long
between the two countries have tenure, the seeds of modern Maldives
been reignited following a hiatus of were sown. However, at regular intervals,
misunderstandings and a wanton display protests and demonstrations erupted.
of anti-Indian attitude in Maldives.
• It was also during this period that
• In the past few years, the development terrorists belonging to the People’s
assistance and infrastructural assistance Liberation Organization of Tamil Eelam
provided by India has increased. (PLOTE) attempted to take over Maldives
• The 2018 victory of Maldivian President in a coup. They nearly succeeded before
Ibrahim Solih has reaffirmed the nation’s the Indian Armed Forces launched
commitments to ‘India First’. This policy ‘Operation Cactus’ to throw out the
and India’s own ‘Neighbourhood First’ invaders.
policy is complimentary in nature. • The Indian Armed Forces succeeded
• The cooperation between the two nations in their operation and Maldives was
is definitely far below potential in certain restored to President Abdul Gayoom.
areas as we shall observe in this module. • In 2008, Mohammed Nasheed, the
present Speaker of the Maldivian
POLITICAL SITUATION IN Parliament took over as the President.
His tenure was smooth as far as the Indo-
MALDIVES AND INDIAN Maldivian relations are concerned.
• However, former President Gayoom’s party
INTERVENTION protested against the ‘undemocratic’
• Maldives and its history have been character of the polity under Nasheed
linked to the history of India. The Chola and forced his resignation in 2012.
dynasty under Rajaraja Chola invaded • Demonstrations began in 2012 against
53
Nasheed who sought the arrest of the

Chief Justice of the Supreme Court. The
security forces sided with the protesters
and finally Nasheed had to resign and
flee from the nation. He initially entered
the building of the Embassy of India in
Male and took refuge there.
• President Mohammed Waheed took over
in 2012 and served for exactly a year till
2013. This was the beginning of the close
relationship between Maldives and China.
Maldives relationship with India began
to falter and an anti-Indian attitude was
encouraged. India’s sensitivities were
ignored completely.
• In 2012, the Indian Company GMR’s
airport project worth USD 511 Million was
terminated. The downward spiral in the
relationship began from here.
• From 2013-2108, Abdullah Yameen ruled
Maldives. It was during this period that
the relations between the two nations PILLARS OF COOPERATION
suffered the most. Indian defence
products were returned, Indian nationals Economic Relations and
working in Maldives were expelled and
the relationship with China grew. Development Assistance
• It was finally in 2018 that this policy was • Bilateral Trade: The two nations signed
done away with and Maldives’s ‘India a trade agreement in 1981. However,
First’ policy was reinforced with the despite the agreement, the bilateral
victory of President Ibrahim Solih. trade is far below potential.
• As we can see from the above, India- • In 2018, the bilateral trade stood at USD
Maldives relations are prone to be 288.99 million. This is a pittance when
affected by the political situation in compared to India’s other neighbours
Maldives. including even Pakistan. India is
Maldives’s fourth largest trade partner.
• As a long-term goal, it is important for
India to develop a strategy to ensure • Investment: As far as investments are
that irrespective of the government in concerned, the State Bank of India
Male, the relations with Maldives do not (SBI) plays a critical role in the nation
suffer. This can hold true even as far as in terms of providing loans to business
other nations such as Bangladesh are establishments. Many tourist resorts,
concerned. telecommunication projects have been
completed following the loans from SBI.
• India’s development assistance is an
important facet of the relationship
54
between the two countries. India is • High Impact Community Development

presently working: Scheme: Most of the development
In the construction of Water and projects are being executed in Maldives
Sewerage project in 34 islands, as part of this scheme, which is driven
by needs of the communities. This is an
reclamation of Addl island, important dimension of the development
A port on Gulhifalhu, partnership between two countries. Also,
Airport redevelopment at this scheme is being implemented in
Hanimaadhoo, other countries including Afghanistan
and Bhutan.
Construction of a hospital and a cricket
stadium at Hulhumale • Connectivity: India has earmarked and
granted USD 500 million for the Greater
• In 2016 Commonwealth Ministerial Action Male Connectivity Project to connect
Group meeting India prevented countries Male to the islands of Villingili, Thilafushi,
from executing punitive sanctions due to Gulhifahu. It is the largest civilian
failure in creating an ‘Inclusive country” project in Maldives. This project is often
and a “Genuine Democracy”. compared to the Sinemale Friendship
• In 2018, India provided a Line of Credit bridge being constructed by China.
(LOC) worth USD 800 million and in • Recently both countries decided to
recent times, a further amount of USD establish Air bubble agreement, a direct
400 million has also been provided. ferry service and submarine cable for the
• Some of the completed projects include: telecom sector.
Indira Gandhi Memorial Hospital, • An Agreement on supply of essential
commodities for 2020-2021 period was
Maldives Institute of Technical
also renewed.
Education and
National Police Academy. Defence/Strategic Relations
• Humanitarian Aid: India has also
• The island nation is important in India’s
extended assistance to Maldives during
strategic calculations for the following
the 2004 Tsunami and during the water
reasons:
crisis in 2014 under Operation Neer.
It lies close to India’s western coast and
• Tourism: India is the fifth largest source
presence of any foreign power (read
of tourist arrival in Maldives. In 2019,
as China) can impede India’s national
the two nations signed various MoU
security. It was through the maritime
to develop the Addu Tourism zone in 5
route that the 26/11 terrorists entered
islands of Addu atoll (southernmost atoll
India.
of Maldives) and to set up a bottling water
plant in Hoarafushi in the northernmost China through its acts of debt trap
Haa Alif Atoll. diplomacy may acquire islands
close to the Indian Union Territory
• Medical Tourism: Maldivians are an
of Lakshadweep and this can pose a
important source for the medical tourism
threat to India.
industry in India. India has granted
over 45,355 medical tourist visas out of The Minicoy islands which is part of
4,95,000 to Maldivian nationals. the Union Territory of Lakshadweep is
70 nautical miles from Maldives and
55
the two nations are separated by the Maldives out of which 25% of all Doctors
8-degree channel. and Teachers in Maldives are Indian
97% of India’s foreign trade by volume nationals.
and 75% by value passes through the • The Government of India’s ‘Vande Bharat’
region. Mission to rescue Indian nationals from
India intends to be the net security across the world, saw the dispatch of two
provider of the Indian Ocean Region naval ships to Maldives to rescue these
(IOR). nations during the COVID-19 pandemic.
• PM Narendra Modi has also been
conferred Maldives highest civilian
award: Rule of Nishan Izzuddeen in 2019.
• Maldives with its young population can
become an economically prosperous
nation. India should continue to guide it
towards achieving this objective.
CHALLENGES
• Defence: India meets over 70% of • Terrorism and Radicalisation: The
the training requirement of Maldivian Maldivian society is becoming radicalized
Defence Forces (MDF). India has two and the inflow of funds from Saudi Arabia
helicopter bases, integration of radars is being used to radicalize the population
and Indian Coast Guard surveillance of the island state. Many nationals have
along Maldivian coast. India also aims been found fighting for the Islamic State
to remain as a net security provider to (IS).
Maldives. • Intelligence Agencies have also pointed
• Since 2009, the armed forces have out that Pakistan and its notorious
launched joint exercises named ‘Ekuverin’. intelligence agencies have been
radicalizing individuals from Maldives.
• Multilateral cooperation in forums These radicalized individuals then pose a
such as the SAARC and SASEC is threat to India.
also an important feature of strategic
cooperation. • China Factor: China took advantage
of the unstable political situation in
• Maldives which was suspended from the Maldives and quickly lent over USD 2.5
Commonwealth group of nations in 2016 billion. It is estimated that over 40% of
recently re-joined the group. Maldives’ external debt is due to China.
• Maldives and China signed a Free Trade
Cultural Relations Agreement (FTA) in 2017 which ignited
• Maldives has been a recipient of many fears of debt trap diplomacy. India was
scholarship programmes of the ICCR completely ignored.
and continues to reap various benefits. • Lack of independent Island policy: India
• The Indians form the second largest is working towards a regional security
expatriate community in Maldives. architect under IORA and trilateral
There are 22,000 Indian nationals in security arrangement. But it lacks an
56
independent policy dealing collectively PREVIOUS YEAR QUESTIONS (PYQ)

with archipelagos like Seychelles,
Maldives, Madagascar and Mauritius • Discuss the political developments in
amidst increasing Chinese presence Maldives in the last two years. Should
along these islands. they be of any cause of concern to India?
(10 marks) (150 words) (2013)
WAY FORWARD PROBABLE QUESTIONS

• It is important for both the nations
to identify areas and improve their 1. Examine how the bilateral trade
bilateral trade. Trade and investments in between India and Maldives can be
emerging technologies could be looked enhanced.
into while examining the potential areas 2. Climate change poses a threat to
for enhancement of bilateral trade. both India and Maldives, yet the two
• India needs to develop an independent nations lack cooperation in this regard.
archipelago foreign policy to Comment
systematically partner with the
neighbouring Islands and countries.
• The two nations can further cooperate
in the area of ‘renewable energy’.
Considering the threats posed due to
climate change and its disastrous effects
on Maldives and the coastal areas of
India, this issue needs to be urgently
tackled.
• In accordance with the “Neighbourhood
First” policy of the government, India
should remain committed development
partner for a stable, prosperous and
peaceful Maldives.
57
CHAPTER - 9
INDO-AFGHAN RELATIONS
Introduction like the Lashkar E Taiba (LET), Jaish E

Mohammad and HUJI were found to
• India and Afghanistan have a strong have been fighting in both India and
relationship based on historical and Afghanistan.
cultural links. The relationship is not
limited to the governments in New Delhi • Security of Indians in Afghanistan: The
and Kabul but has its foundations in Afghan Taliban consisting of groups
the historical contacts and exchanges such as the Hezb E Islami, Haqqani
between the people. Network have attacked Indian assets in
Afghanistan including the Embassy at
• In recent past, India-Afghanistan relations Kabul and the consulates at Kandahar,
have been further strengthened by the Mazar e Sharif, Herat and Jalalabad. India
Strategic Partnership Agreement, which has lost a diplomat, security personnel,
was signed between the two countries in workers, and many common citizens in
October 2011. Afghanistan. A stable Afghanistan is also
required for the other benefits to fructify.
IMPORTANCE OF • Geo-Political advantage: Afghanistan
is situated at the crossroads of South
AFGHANISTAN TO INDIA Asia, Central Asia and West Asia. It
The following are the reasons why provides access to the Central Asian
Afghanistan is important to India: republics which are its neighbours. India
• J&K point of View: A stable Afghanistan is actively participating in the Chabahar
is in the interest of both the nations. The port project, the TAPI (Turkmenistan-
security situation in Afghanistan has a Afghanistan-Pakistan-India) pipeline
direct impact on the security situation and the International North-South Transit
in the union territories of Jammu and Corridor project etc. Afghanistan is one
Kashmir and Ladakh and also Indian of the gateways into central Asia for
assets and interests in Afghanistan and India. It is also providing a huge market
Central Asia. It is to the dismay of many for Indian products.
Indians that the security agencies have • India’s ambition of becoming a
gunned down many Afghan nationals permanent member of the UNSC
who have infiltrated across the LOC and India has an opportunity to become
participated in the terror carnage in J a permanent member of the UNSC.
and K. The crisis in Afghanistan provides it an
• Counter Terrorism: The Inter Service opportunity to demonstrate its power
Intelligence (ISI) of Pakistan has wreaked and willingness to rise to the occasion.
havoc in both India and Afghanistan. India should get back to engaging in
Many groups supported by the ISI proactive diplomacy as it did during the
Nehruvian era. Located in South Asia,
58
Afghanistan is a perfect nation in which • This has provided a boost to Afghan

India can play an active and responsible exports to India and has directly benefited
role. India is already doing that. However, Afghan farmers and small traders and
more has to be done. exporters. India and Afghanistan now
aim to expand the Corridor to other cities
in both the countries.
CULTURE RELATIONS
• Another important initiatative which
• Afghanistan has been an important strengthened bilateral trade was the
trading and craft centre for over 2000 operationalization of the Chabahar Port.
years connecting the civilizations of In 2019, Afghanistan shipped around
Persia, Central Asia with India. Both 700 tons of agricultural and mineral
countries share centuries old cultural products to India through the Chabahar
heritage with deep-rooted linkages in Port, clearly demonstrating the feasibility
the field of music, arts, architecture, of Chabahar Port as a transit point for
language and cuisine. Afghanistan and eventually to Central
• Today, Indian films, songs and TV serials Asia.
are popular with the masses, contributing
significantly to the popularization of
Hindi and familiarization of the populace
with Indian socio -cultural value system.
• As part of India’s restructuring
programme for Afghanistan, India has
regularly aimed to take up projects that
will render Afghanistan's cultural heritage
sustainable. The Indian cultural centre
has also been working towards building
a shared cultural heritage.
COMMERCIAL RELATIONS
• Given the geographical proximity and
historical linkages, India has been a
natural trading partner for Afghanistan STRATEGIC PARTNERSHIP
and is the largest market in South Asia • The Strategic Partnership Agreement
for its products. The total bilateral trade (SPA) between the two sides, provides for
between India and Afghanistan for CY assistance to help rebuild Afghanistan's
2019-20 was at US$ 1.5 billion. infrastructure and institutions, education
• In order to expand trade to India, the and technical assistance to re-build
Afghan government in collaboration indigenous Afghan capacity in different
with Government of India launched a areas.
dedicated Air Freight Corridor in June • It encourages investment in Afghanistan's
2017. India-Afghanistan Air-Freight natural resources, providing duty
Corridor has witnessed close to 1000 free access to the Indian market for
flights, carrying goods valued at over Afghanistan's exports support for an
USD 216 million. Afghan-led, Afghan-owned, broad-
59
based and inclusive process of peace International Tournament organised

and reconciliation, and advocating the every year by the India Air Force.
need for a sustained and long-term • Cricket has been a major factor in
commitment to Afghanistan by the promoting people-to-people ties
international community. between the two countries. Afghanistan
Cricket Board has been allotted three
DEFENCE COOPERATION cricket home grounds in India (Noida,
Dehradun and Lucknow). India is also
• India and Afghanistan signed a strategic involved in construction cricket stadiums
partnership agreement in 2011 and as part and grounds in various provinces of
of the agreement, India recently handed Afghanistan
over a few MI-35 attack helicopters to
the Afghan National Army to counter the
Taliban. HIGH IMPACT COMMUNITY
• India has also agreed to repair certain
Russian helicopters which are in the
DEVELOPMENT PROJECTS
possession of the Afghan National Army. (HICDP)
• Regular high level military visits take • Since 2005, India and Afghanistan have
place between the two nations. The partnered in the area of community
defence forces train together. development through the HICDP
• The Intelligence agencies of the two program. Under this scheme, US$ 120
nations cooperate. mn has been committed till date to
• Both the nations have also signed treaties various small to medium scale projects
related to mutual legal assistance and in areas such as education, health, water
exchange of prisoners. management, government buildings,
sport facilities, agriculture and irrigation,
• As far as the crisis in the nation is etc.
concerned, India’s position has been
clear. The entire peace process has to • Around 433 High Impact Community
be Afghan led and according to the Development Projects have been
wishes of the people of Afghanistan and completed with Indian financial support
there cannot be differentiation between in all 34 provinces of Afghanistan so far
the various terrorist groups. Pakistan and around 110 projects are ongoing
has been quite successful in fooling in various provinces of Afghanistan. iN
the world in believing in the concept of 2020, India signed five agreements for
Good Taliban and Bad Taliban. India construction of schools and roads worth
has refused to believe in this rather very US$ 2.6 mn.
dubious distinction.
HUMAN RESOURCE
SPORTS COOPERATION DEVELOPMENT AND
• India and Afghanistan have robust
relations in the field of sports. Since 2011, CAPACITY BUILDING
Afghanistan Under-14 & Under-17 Boys’ • Human resource development and
and Under-17 Girls’ football teams have capacity building initiatives constitute an
been participating in the Subroto Cup
60
important segment of India's assistance of Afghanistan thereby generating

in Afghanistan. On an average, more than goodwill for India.
3,500 Afghan nationals undergo training/
education in India every year. More than
15,000 Afghan students pursue education INDIAN DIASPORA IN
in India on self-financing basis.
AFGHANISTAN
• India’s assistance in human resource
• Presently, there are estimated to be
development has helped to create a large
about 1710 Indians in the country.
pool of trained manpower that has been
Most of the Indians in Afghanistan are
an asset to both the public and private
engaged as professionals in Banks, IT
sectors in Afghanistan.
firms, construction companies, hospitals,
• India offers over 1,000 Indian Technical NGOs, telecom companies, security
and Economic Cooperation (ITEC) slots companies, universities, Govt. of India
to Afghanistan annually sponsored projects, Govt. of Afghanistan,
and UN Missions.
HUMANITARIAN • The Mission interacts closely with
members of the Indian Diaspora,
ASSISTANCE assisting wherever required. The Diaspora
• Major humanitarian assistance by India members also actively participate in
to Afghanistan in recent years include the Mission’s cultural activities and
the following: celebrations of national days.
To combat the global pandemic of

COVID-19 and related issues of food CHALLENGES
security, India is commited to deliver • Growing Chinese influence: China
75,000 MT of Wheat to Afghanistan under President XI Jinping has actively
in 2020. In addition, India has also invested in Afghanistan, economically
undertaken supply of 5 lakh tablets of and politically. The latter has become a
Hydroxy-chloroquinine, 1 Lakh tablets part of the One belt One road initiative
of Paracetamol and 50,000 pairs of the former. China is also part of the
of surgical gloves to Government of Quadrilateral initiative on Afghanistan.
Afghanistan in 2020. India has been taking note of these
Provision of food assistance of developments and is moving forward
11 lakh tonnes of wheat, both as confidently. India is clearly ahead of
grains and biscuits, was distributed China in many aspects.
to approximately 1.5 million school • Lack of access: While there is immense
children potential to expand bilateral trade, the
To promote food security, particularly difficulties in transit via Pakistan is a
children during the times of drought, major hurdle in expanding the trade
India has distributed 2000 tonnes of ties. India shares a land boundary with
pulses to Afghanistan in 2018. Afghanistan. However, this territory is
A Medical Diagnostic Centre in Kabul currently under the illegal occupation of
was set up in 2015. The Centre provides Pakistan.
latest diagnostic facilities to children • But the problem is being sorted out now
61
through the Chabahar Project and the

air corridor that is being planned.
• Reluctance to Sell Military Hardware:
The security situation poses a deep threat
to both the nations and India should be
careful of it. India’s reluctance to sell
military hardware to Afghanistan. This
did cause certain irritation in Kabul. India
did not want the conflict to escalate.
After PM Modi took over in 2014, India
has reversed this policy.
• Internal Issues: Recent issues such as the
Citizenship (Amendment) Act, 2019 and
the Delhi riots appear to have caused
certain disharmony in the ties between
India and Afghanistan.
62
US-Taliban Peace Pact

The US and Taliban signed an agreement for Bringing Peace to Afghanistan, which seeks
facilitation of the US and NATO to withdraw troops.
India and Taliban
Perception about India
• The Taliban perceived India as a hostile country, as India had supported the anti-Taliban
force Northern Alliance in the 1990s.
• India never gave diplomatic and official recognition to the Taliban when it was in power
during 1996-2001.
Challenges posed by the pact for India
• Pact is silent on other terrorist groups: Though parties to the agreement made reference
to al-Qaeda is important, the pact is silent on other terrorist groups — such as anti-
India groups Lashkar-e-Taiba or Jaish-e-Mohammed.
• Whether U.S. and Allies include India?: In the Doha agreement, the Taliban has
guaranteed enforcement mechanisms that will prevent the use of the soil of Afghanistan
by any group or individual against the security of the United States and its allies. However,
it is unclear whether India, which is not a U.S. ally, is included in this definition, and
whether Pakistan-backed groups that threaten India, would still operate in Afghanistan.
• Threat to India’s security: The pact has also strengthened Pakistan, Taliban’s benefactor,
and the Pakistan Army and the ISI’s influence appears to be on the rise.
• Impact of prisoner release and lifting sanctions: According to the agreements, Taliban
prisoners will be released gradually and the U.S. has committed to taking Taliban
leaders of the UN Security Council’s sanctions, which could considerably bring down the
number of terrorists Pakistan is accused of harbouring, according to the FATF greylist
conditions. This might benefit Pakistan during the FATF Plenary, when it faces a blacklist
for not complying. This will endanger India’s efforts to isolate Pakistan at global level as
harbinger of terrorism.
• Handing powers to Taliban: This appears to sideline the Intra-Afghan dialogue, and
India’s support for the election process for leadership in Afghanistan.
CONCLUSION
In conclusion, it can be said that India needs to immediately step up its engagements with
the Afghan government and become a decisive voice in the various international forums
regarding the future of Afghanistan. Having been elected as a non-permanent member
of the United Nations Security Council, this opportunity needs to be fully utilized for the
welfare of the Afghan people as well as securing India’s national interests.
63
64
CHAPTER - 10
INDIA-MYANMAR RELATIONS
INTRODUCTION has a bearing on India and its future.
• India and Myanmar are not only

neighbours but as we shall see, they are DEFENCE AND SECURITY
two aspirational nations on the path
to development. It is these common TIES
interests and a shared history that brings Security issues and defence matters have
together both the nations to cooperate dominated the ties between the two nations
in many fields. The relations weren’t since the advent of the British into India.
always on the upswing, it is only in recent In recent times, this has assumed critical
times that the two nations have begun to importance. Let us discuss its various
cooperate and carve out a new path of dimensions.
development.
• Geographical Location: India shares
Strategic Importance of
a land boundary with Myanmar which Myanmar to India
is over 1600 Kilometres. The states of • Geographically, India is part of South
Arunachal Pradesh, Manipur, Mizoram Asia and Myanmar is part of South East
and Nagaland share a land boundary Asia. Myanmar, then acts as a bridge
with Myanmar. The two countries also between South Asia and South-East
share a maritime boundary off the coast Asia. So it can be said that Myanmar is
of Bay of Bengal. the link between India’s ‘Neighbourhood
First’1 policy and its ‘Act East Policy’2.
Myanmar is also India’s bridge to other
South-East Asian nations.
1 launched by PM Narendra Modi in 2014, it gives

India’s neighbours, a priority over other nations
in India’s diplomatic objectives and other public
policies
2 This too was launched by PM Modi in 2014. It
is an improved version of the ‘Look East’ Policy
• Let us explore various facets of this launched in 1991 by Prime Minister Narasimha Rao.
The policy intends to build strong cultural, economic,
important relationship and also a bit of
technological and people to people ties with the
the modern history of Myanmar which nations in South-East Asia and East Asia.
65
Defence Relations
• As mentioned before, Myanmar has
lacked a clear and consistent policy as
far as fighting the various North-Eastern
Indian insurgent groups and other forces
that are inimical to the unity and integrity
of India.
• However, in recent times, the government
of Myanmar has cooperated with India
and flushed out the insurgents from their
territory.
• Armed forces of both the nations
launched Operation Sunrise 1 and 2 in
2019. These operations were launched
• The second important element as far in a coordinated manner in the states of
as Myanmar is concerned is the land Assam, Manipur, Mizoram and Nagaland
boundary it shares with four Indian states and on the Myanmar side. This led to
in the North-East of India. Many of these massive damages being inflicted on the
states have fought insurgents who intend various insurgent groups.
to overthrow the mandate of the Indian
state and secede from the Indian union. • Over 22 insurgents have also been
handed over to India by Myanmar.
• Many of these insurgents find shelter
in Myanmar and other neighbouring • However, a report by the Union Home
nations including Bangladesh, Bhutan, Ministry has pointed out the negative
Nepal and China. Groups such as the effects of the Free Movement Regime3.
National Democratic Front of Bodoland The report points out to this mechanism
(NDFB), the National Socialist Council of being misused by various insurgent
Nagalim (NSCN) amongst others. groups for smuggling of human beings,
arms and ammunitions, narcotics and
• Myanmar has lacked a consistent policy other psychotropic substances and Fake
as far as these insurgent groups are Indian Currency Notes (FICN). There are
concerned. In the past, they appeared reports that the government of India may
to have been tacitly supporting these re-examine this mechanism.
groups by refusing to take any sort of
action which would deny these groups, a • Recently MoU on ‘Cooperation on
resting place and shelter. Prevention of Trafficking in Persons,
Rescue, Recovery, Repatriation and
• Lastly, Myanmar and India are part of a Reintegration of victims of trafficking’ is
few multilateral groupings such as the signed between both.
Bay of Bengal Initiative on Multi-Sectoral
Technical and Economic cooperation • As far as the bilateral military exercises
(BIMSTEC), the Mekong-Ganga
3 This mechanism has been introduced to permit
Cooperation and the East Asia Summit. the free movement of members of the various tribal
The cooperation in these forums will help groups across the borders of both the nations without
the two nations. any Visa requirement. This visa free movement will
only be permitted up to a distance of 16 kilometres
from the border.
66
are concerned, the navies of both • In the second decade of the 21st century,
the nations conduct the INNEX naval the China-Myanmar Economic Corridor
exercises, off the coast of Bay of Bengal. Project which includes the construction of
And IMBAX is the joint exercises carried ports, power stations, oil pipelines, roads,
out by the two Armies. railways and airports has commenced.
• India also invited Myanmar to the Milan All of these projects have been carried
Multilateral naval exercises conducted out under the One Belt One Road (OBOR)
off the coast of Andaman and Nicobar project of China.
Islands. • Many critics such as Priyajit Debsarkar
• India has also agreed to boost its have termed OBOR as One Belt and a
defence exports to Myanmar. In recent road to nowhere due the unsustainability
times, Myanmar acquired INS Sindhuvir of these projects both financially and
(a diesel-electric kilo-class submarine). otherwise.
• These projects only trap nations. Loans
The ‘China’ Factor are offered at high rates and when
nations cannot repay these loans,
• In most of India’s dealings with its China takes over the assets of these
neighbours, the ‘China’ factor has nations. This has been seen in Pakistan,
assumed importance since the past Cambodia and Sri Lanka. The Chinese
decade or so. In this regard, Myanmar’s offer the loan, execute projects with
relationship with China is no different. Chinese technologies, companies and
• India did not support Myanmar’s personnel. The local population and
crackdown on pro-democracy supporters companies have no opportunities at
in the 1980’s and its brutal Military junta all, in this scheme of things except the
rule. Being the largest democracy, India repayment of high debt loans.
was constrained and couldn’t overlook • Myanmar has recognized the follies and
the activities of the military Junta. has cancelled certain contracts with the
China, meanwhile stepped in and built Chinese in recent times.
an effective working relationship with
the Army and it was only in the 1990’s • China which also manipulates its
that India improved its relationship with currency values and gains in the foreign
Myanmar. exchange markets uses this money to
carry out these unsustainable projects in
• Coming forward to the first decade of various nations.
the 21st century, China undertook a policy
named the ‘String of Pearls’4. Myanmar
was no different and let the Chinese build
a port which threatened India’s security.
• Apart from Kyaukphyu, China also built a
naval base in Cocoa islands, close to the
Andaman and Nicobar Islands.
4 A policy to encircle India around its coasts by
building ports which could also act as a naval base
when required. China built various ports in Pakistan
(Gwadar), Sri Lanka (Hambantota), Bangladesh
(Payra and Chittagong) and the port at Myanmar
(Kyaukphyu).
67
How does currency manipulation work? and pass through the restive Rakhine
state of Myanmar.
Let us explain in simple terms.
Let us assume the real value of USD 1 = • They have been delayed to a great extent.
5 Yuan. However, the Foreign Secretary recently
announced that both the projects will be
China devalues this currency to USD 1=
completed by March 2021.
7 Yuan.
Now let us assume the US has been • Many are of the opinion that these two
importing I kg of Grapes from China at projects are India’s response to the One
1 yuan. In the original case, China was Belt One Road project.
earning 5 yuan. Now after manipulation
(making their currency weaker), they are Kaladan Multi-Modal Corridor
earning 7 yuan which will benefit the Project
exporter and impact the importer). This
additional 2 Yuan can be used to fund
OBOR projects).
• India has launched ‘Project Mausam’ to
explore its historical and cultural links
with its neighbours including Myanmar.
This project also has a strategic element.
It aims to counter the Chinese project of
‘Maritime Silk Road’ project under OBOR.
• By taking proactive actions and denying • This is an important project which would
space to the Chinese, India not only give India better access to its North-
participates in the developmental Eastern states.
process of its neighbours but also • It is a combination of shipping lanes,
acquires various strategic benefits. The inland waterways and road projects.
government is vying for the recognition
of these historical links and monuments • In the first instance, the project aims to
and granting of the ‘heritage status’ by build shipping links between Kolkata and
UNESCO. Sittwe.
• India is also executing the High Impact • Then onwards an Inland waterway
Community development projects and between Sittwe to Paletwa (on river
the Border areas development projects Kaladan).
in the border regions between the two • A road link between Paletwa to the
counties. This also helps to counter China. Indian border which would extend into
Lawngtlai (Mizoram).
CONNECTIVITY PROJECTS • Presently, the Foreign Secretary of India
has announced that the project would
• Two major connectivity projects are being
be completed by March 2021 including
executed currently by both the nations
the last leg of the project, i.e. Paletwa-
i.e. Kaladan Multi-Modal Corridor project
Zorinpui road.
and India-Myanmar-Thailand trilateral
highway.
India-Myanmar-Thailand
• Both these projects are inter-connected
68
Trilateral Highway Project and the overall Free Trade Agreement

with the ASEAN of which Myanmar is a
• This project connects Moreh in Mizoram
member, the overall bilateral trade has
to Mae Sot in Thailand. India has agreed
remained below potential.
to construct the Kalewa-Yargyi road
which is 126 kms in length and build 69 • India is the fifth largest trading partner
bridges along the Tamu-Kalewa road of Myanmar and the bilateral trade as of
along with the construction of the Rhi- 2017-18 stood at USD 1.67 billion.
Tiddim road in the Chin State bordering • In recent times, India has invested over
the Indian state of Mizoram. It connects USD 1.2 billion in Myanmar and mostly
India to South-East Asia. these projects have been in the energy
related sectors.
• Goods such as sugar, timber, beans
and pulses are some of the goods in
the agricultural sector between the two
countries.
• India and Myanmar have been actively
pursuing the creation of border crossing
points and border haaths. The latter
enables border trade between the two
countries5.
• In this regard, an integrated border
check post was operationalized in Tamu.
A border crossing point between Moreh-
Tamu also exists.
• India has pledged USD 2 Million for
• The government has announced that this the construction of the Border Haat
road will now be extended across to other at Byanu/Sarsichauk in Chin state of
nations in South-East Asia. The project is Myanmar bordering the Indian state of
expected to be completed soon. Mizoram.
• Apart from these two projects, the two • India has agreed to grant debt service
countries recently operationalized the relief under G-20 Debt Service Suspension
bus services between Imphal (Manipur) Initiative to Myanmar.
and Mandalay. • Two countries also agreed to launch the
Ru-Pay debit card (launched by NPCI) in
Myanmar.
ECONOMIC TIES/
DEVELOPMENTAL Developmental Assistance
• There is no other nation that can claim
ASSISTANCE to have supported Myanmar in its
development as much as India.
Economic Ties
• The following are some of the
• Despite the fact that the two countries 5 Presently India has operationalized Border Haaths
signed a bilateral trade agreement in 1970 with Bangladesh only.
69
developmental projects being pursued • Over the USD 1.2 billion invested by
by India in Myanmar: India in Myanmar, a large chunk of these
India launched Operation Insaaniyat investments has been in the energy
for the development of the Rakhine sector.
region and airlifted essential supplies • There is a Joint Working Group on energy
during the crisis. cooperation between the two countries.
Third phase of the Rakhine State • Agreement on Government to
Development Programme (RSDP) is Government Cooperation on Petroleum
launched. In which both sides agreed including in refinery, stockpiling, blending
to construct a skill development centre and retail is signed between two countries.
in the province. • India has also proposed to construct a
As part of RSDP, an Agreement on petroleum Refinery in the Thanlyn region
Agricultural Mechanization also signed worth USD 6 Billion.
and the two sides discussed the project • Approval for the investment of USD 120
to upgrade the Yamethin Women’s million in the Shwe Oil and gas project.
Police Academy.
• Both sides also planning for construction
250 pre-fabricated houses in the of a high capacity high voltage Grid
Rakhine province for those refugees interconnection between North-East
returning to Rakhine. India and Myanmar
Extension of the Quick Impact Project • So far, ONGC Vidhesh, GAIL and other
scheme: A scheme to finish incomplete public sector companies have been
projects in the physical infrastructure involved in this sector. The projects have
sector and socio-economic sectors been executed at a slow rate. The entry
such as community centres, health and of the private sector in recent times
educational facilities to Myanmar. is expected to increase the pace of
India has also agreed to facilitate the execution.
E-ID (similar to the Aadhar card) card • This is one of the areas which needs to be
project in Myanmar, further exploited. India intends to build a
Grant of medical radiation equipment pipeline from Myanmar to India through
called Bhabhatron for the treatment Bangladesh. However, Bangladesh is not
of Cancer, keen on it yet.
3000 vials of Remdesvir for the
treatment of COVID-19, Historical/Cultural Relations
The Centre for Excellence in Software • The two nations share a historical past
development and Training in Myitkyina and a similar culture.
was digitally inaugurated recently.
ENERGY COOPERATION
• Myanmar has proven 20 trillion cubic feet
of natural gas. It is this that India seeks to
tap into as a developing nation which is
energy starved.
70
Historical Timeline Encompassing the Modern History of the Two Nations:

• 1937: Burma was separated from the Indian union and made a separate administrative
entity in accordance with the Government of India Act, 1935.
• 1940: The World war 2 had begun and some Burmese nationalist leaders like Aung San
and others approached the Japanese and set up the Burmese National army in Japan
(Please note the striking similarities with the Indian nationalist movement when 2 years
later, the INA was set up in Singapore).
• 1945: Aung San (Father of Present State Counsellor Aung San Suu Kyi) is murdered by
his rivals.
• 1948: British granted independence to Burma. A civilian Government establishes its
rule.
• 1962: A coup takes place and General Ne Win takes over. Indians in Burma who had
settled and contributed to the nation’s growth were expelled in a sad turn of events.
Indians constituted the labour class, intelligentsia, civil servants and traders. The Indians
who were expelled were mostly people of Bengali and Tamil origins. India’s commitment
towards democracy is well known. Ties between the two nations deteriorated after this
coup.
• 1974: Burma enacts a new constitution.
• 1988: A student uprising over high inflation, corruption and stifling of civil rights takes
place. This uprising is known as the 8888 rebellion. It is badly crushed by the government.
At the same time, another coup under General Saw Mung takes place.
• 1989: The name Burma is changed to Myanmar. A State Law and Order Restoration
Commission (SLORC) is established to carry on the administration of Myanmar. This
council functions till 2011.
• 1990: Elections to the Parliament take place. The National League for Democracy
(NLD) under Aung San Suu Kyi won the elections but are not permitted to take over
and establish their rule. A military Junta takes control. At this stage, aware of the geo
political significance of Myanmar, India restores its ties with Myanmar.
• 2007: Buddhist monks who protest against the military junta are mercilessly killed in an
uprising known as the saffron uprising.
• 2010: Elections take place and the military junta wins in a highly disputed election.
• 2011: SLORC is replaced with a National Peace and Development council.
• 2015: Elections are won by the National League for Democracy and after a long time
a civilian leader becomes the President. Daw Aung San Suu Kyi becomes a State
Counsellor.
• From the above, we can see that the two nations share a historical past and their
relationship is influenced by historical factors.
• The last Mughal emperor Bahadur Shah Zafar too was expelled to Burma after the 1857
revolt and nationalist leader Lokmanya Tilak who was arrested under the charges of
sedition in 1907 was jailed in Mandalay.
71
• India is also working on the restoration India and the Rohingya Crisis
of the Ananda Temple in Bangan and
has donated a 16 feet long replica of the • There is an internal as well as external
Sarnath Buddha statue which has been dimension to this issue as far as India is
installed in the Shwedagon Pagoda in concerned.
the country. • As per the report of Intelligence Bureau
• It is Buddhism that binds the two nations. (IB), there are over 40,000 Rohingya
Keeping this in mind, there exists a direct refugees in India, registered with the
flight link to Gaya in Bihar from Myanmar. United Nations High Commissioner for
This is despite the fact that presently, Refugees (UNHCR) as well those staying
there is no direct flight link between the illegally in India.
two countries. • They have been spotted in the Union
Territories of Jammu and Kashmir and
Delhi-NCT as well as in states such as
ROHINGYA ISSUE Assam, Karnataka, Kerala, Tamil Nadu,
Telangana and West Bengal.
Who are the Rohingyas?
• According to the IB, the Arakan Salvation
• They are those who are from the Rakhine Army, a banned terror group consisting
state of Myanmar. The 1982 Citizenship of Rohingyas intends to target India and
Act of Myanmar doesn’t recognize these Indian targets and they are assisted by
people who practice Islam and describes the notorious ISI in this regard.
these people as ‘illegal immigrants’ from
• Rohingyas have also been arrested for
Bangladesh.
the terror attack on the Mahabodhi
• They are described as the ‘boat people’ temple in Gaya (Bihar).
who have migrated in a dangerous
• The government has stated that it intends
manner to Thailand, India, Bangladesh,
to deport these 40,000 individuals back
Laos and other countries.
to Myanmar.
Why did they flee Myanmar? • The external element involves the
launching of Operation Insaniyaat
• The present crisis of Myanmar was as mentioned before and the various
triggered by the actions of the armed projects being executed in the Rakhine
forces of Myanmar. They unleashed province.
violence on this group in 2017 after one
of their outposts was attacked by the • India has supported Myanmar and
Rohingyas. It is alleged that the armed refused to condemn its actions. Though
forces have committed gross violation of at the bilateral level, this issue has been
human rights with the intent to carry out raised.
ethnic cleansing. However, the genocidal • This issue has also led to large scale
angle hasn’t been proved yet. exodus of Rohingyas into Bangladesh and
• The International Court of Justice India’s reticence on this issue, has proved
censured Myanmar for its actions to be an irritant in the ties between the
and asked it to immediately cease all two nations.
operations against the Rohingyas.
Conclusion
72
India and Myanmar will have a lot to PROBABLE QUESTIONS

collaborate in the future and continue
this glorious partnership. However, India 1. “The relationship between India and
needs to speed up its pace of execution Myanmar can be energized further by
of various projects not only in Myanmar enhancing the energy relationship.”
but also in other nations across the world, Discuss.
especially its neighbourhood. Further, India
needs to understand that the ‘China factor’ 2. Analyse the issues between the bilateral
shouldn’t influence its relationship with any relationship India and Myanmar. How
nation including Myanmar. The ties with far friendly relations with Myanmar are
these nations should be on a stand-alone necessary for establishment of stability
basis and India shouldn’t hesitate to bat and security in North-East India?
on the front foot. With renewed focus, the
relationship between the two countries can
be a model of how two neighbours can not
only be great friends but also partners in
development.
1. What do you understand by ‘The String

of Pearls’? How does it impact India?
Briefly outline the steps taken by India
to counter this. (200 words) 10 (2013)
2. Project ‘Mausam’ is considered a unique
foreign policy initiative of the Indian
Government to improve relationships
with its neighbours. Does the project
have a strategic dimension? Discuss
(12.5 ) (2015)
3. ‘China is using its economic relations
and positive trade surplus as tools to
develop potential military power status
in Asia’, In the light of this statement,
discuss its impact on India as her
neighbor. (150 words) 10 (2017)
73
Unit - 3
India’s Extended Neighbourhood
11. India and ASEAN
12. Issues in the Indo-Pacific region
13. India-Iran
14. India-UAE
15. India-Saudi Arabia
16. India-Israel
17. India and GCC
18. India and Central Asia Relations
74
CHAPTER - 11
INDIA-ASEAN RELATIONS
INTRODUCTION
• The importance of the ASEAN community
has only grown in recent times. It has
emerged as an economic block of
strategic importance, as important as
the EU.
• Following the aggressive policies of China
in terms of land and island grabbing
and the debt trap diplomacy practices
adopted by China, the block has come
together. At the same time, with the
signing of the Regional Comprehensive
Economic Partnership (RCEP), these • These 10 nations are geographically part
nations have revealed their intentions to of the South-East Asian region. These
not just push back the Chinese aggression nations are Myanmar, Thailand, Malaysia,
but also cooperate with the nation on Singapore, Cambodia, Laos, Indonesia,
economic issues. Philippines, Vietnam and Brunei.
• In this regard, what is their cooperation • The motto of ASEAN is “One Vision, One
with India? How will India-ASEAN Identity, One Community”.
relations look like in the future? • The aim of this bloc continues to remain
• Let us look at some of these matters. the economic and social development of
Firstly, let us talk about ASEAN itself. the region and beyond.
Why is ASEAN Important to the

ASEAN World?
• ASEAN or the Association of South-East
Asian Nations is a grouping consisting • The economic, strategic, and
of 10 nations. It was formed in 1967 technological importance of the ASEAN
and is headquartered out of Jakarta in community can be judged from the
Indonesia. following facts:
• Economic: Like India, the 10-nation bloc
has a combined GDP of around USD 3
trillion and this is slightly more than India.
Further, these nations have clocked a
growth rate of close to 5% in terms of
GDP every year.
• Demographic: In terms of population, the
75
combined strength is about 600 million India’s fourth largest trading partner and
people. This is way below China and Singapore has emerged as one of the
India, but ahead of the European Union largest Foreign Direct Investors (FDI).
and even the US. • ASEAN has also emerged as a terror
• Trade: In terms of global exports, the bloc hub for many groups such as the
accounts for a little over 7% exports and Jemaah Islamiyah and the Islamic State.
this involves sophisticated and high-end Cooperation with India on matters
manufacturing. related to security and cyber security can
• Strategic: this group also is located in help the nations prosper.
a geographically important zone. It is • ASEAN nations also look towards
sandwiched between the Indian Ocean building an economic partnership
Region and the Pacific Ocean region. that is sustainable and can exploit the
These two Oceans together account demographic dividend of India. As India
for the movement of more than 70% of continues to grow strong, it will become
global maritime commerce, 65% of oil a hub for not only finished goods but also
supplies and more. It is a region of critical will become a hub for manufacturing,
importance in the geo-political sense. shipping amongst others.
• ASEAN has contributed to regional • About 6 million people of the Indian
stability. diaspora live in the ASEAN region and
are an important connection with these
India-ASEAN Relations nations. Indian diaspora has successfully
established itself in these nations and
• India’s relationship with ASEAN has many of them serve in the government
emerged as a key cornerstone of our as Ministers and in other positions and
foreign policy. The relationship has are also influential businesspersons. Ex:
evolved from the ‘Look East Policy’ KC Shanmugam is the Home Minister
enunciated in early 1990s which led India of Singapore and Tony Fernandez is the
to become a Sectoral Partner of ASEAN head of Air Asia which is based out of
in 1992, a Dialogue Partner in 1996 and a Malaysia.
Summit-level Partner in 2002.
• The ASEAN members also look forward
• The India-ASEAN Strategic Partnership to cooperating with India to ensure
acquired a new momentum with the observance of a rules based international
announcement of “Act-East Policy” in order, especially in the South China Sea
2014. It conveyed a clear intent on the and tackling Chinese aggression.
part of India to up scaling its engagement
with the ASEAN Member States. • Finally, pursuing connectivity projects
with ASEAN will lead to the development
• The Act-East Policy emphasizes 3 C’s - and prosperity of the North-Eastern
Connectivity, Commerce and Culture as region of India.
the focus areas of action for a greater
ASEAN-India integration.
India-ASEAN Cooperation
Importance of ASEAN to India • Trade & Economic Cooperation:
• The economic significance of ASEAN can The ASEAN-India Trade in Goods
be judged from the fact that ASEAN is Agreement was signed in 2009 and
ones on ASEAN-India Trade-in-
76
Services and Investments in 2015. With

the signing of these Agreements, the
ASEAN-India FTA is complete.
In the economic sense, as mentioned
before, ASEAN is India’s fourth largest
trading partner and the bilateral trade
is a little over USD 80 billion. India’s
trade with ASEAN is about 10.6% of its
total trade.
• Connectivity:
Connectivity including land and sea
connectivity, with ASEAN is one of • Investment:
the strategic objectives of India and
FDI inflows into India from ASEAN
ASEAN Member States.
represents 18% of the cumulative
The India-Myanmar-Thailand highway inflows received by India. And
is nearing completion and is expected cumulative FDI outflows from India
to be opened up fully in the first half to ASEAN countries in last decade is
of 2021. This highway is expected to about US$ 40 billion.
be extended into other nations of the
• Strategic:
region including Laos, Cambodia, and
Vietnam. It was in the year 1993 that India
became a ‘sectoral dialogue’ partner
The other important connectivity
of the ASEAN. In 2004, the two signed
project remains the Kaladan
the ‘Strategic Partnership’ Agreement.
Multimodal connectivity project
between India and Myanmar. Maritime cooperation is one of the
important areas of cooperation
between India and these nations.
India has always supported closer
cooperation in this regard with respect
to China. A rule based international
order is in the interest of both the
nations. India-Vietnam relations in the
defence sector is of critical importance
in this regard.
• New & Renewable Energy:
Recently both the sides agreed on ‘New
Delhi Declaration on ASEAN-India
Cooperation in Renewable Energy’.
• Agriculture:
ASEAN-India cooperation in the field
of Agriculture is diverse and covers
a variety of sectors such as food
security, exchange of information
77
and technology, research and the ASEAN-India Media Exchange

development projects, agriculture and Programme.
forestry-related industries, and human
resources development.
ISSUES IN THE ASEAN
An annual ASEAN-India Agriculture
Ministers Meeting (AIMMAF) has been • These nations are highly diverse in terms
formalized and has met regularly since of population and level of development.
2011. For example, Singapore is highly
developed and prosperous whereas
• ASEAN has also pledged funds for the nations such as Myanmar are still in the
following: path towards development and have a
ASEAN-India Cooperation Fund, long way to go.
ASEAN-India Development Fund and • Disputes within the bloc such as the
ASEAN-India Green Fund for renewable Rohingya refugee crisis have divided the
energy projects. nations. There is no dispute resolution
mechanism within the block.
• Cultural Cooperation:
• The bloc appears to be divided with
The 4th International Dharma- respect to China. Aggressive Chinese
Dhamma Conference was recently actions have united the bloc to some
held at Rajgir in Nalanda district, extent. However, some nations such as
Bihar as a part of the commemorative Cambodia continue to back China.
events to mark ASEAN-India 25 years
of dialogue partnership. • Further, the economic agreements with
China, the ASEAN members haven’t got
• People-to-people Connectivity: a good deal. Most of these deals only
Several projects on people-to-people benefit the Chinese.
connectivity are held annually to • There is a trade imbalance which is not
increase interaction between India and in India’s favour and India’s attempts to
ASEAN Community. Projects which negotiate an Agreement in Services which
have been carried out on this front are will lead to a liberal Visa regime has led
as follows: to its efforts being stonewalled. India has
ASEAN-India Network of Think Tanks: announced that it will be reviewing all its
ASEAN-India Network of Think Tanks FTA’s. This has led to uncertainty.
established since 2009-10. • India’s recent decision to pull out of the
Students Exchange Programme: A RCEP has led to differences with ASEAN.
Student Exchange Programme has
also been institutionalized under
which 250 ASEAN Students visit India
EMERGING DEVELOPMENTS
annually from ASEAN Member States. • Recently the ASEAN and 5 of its free
The participation has been increased trade partners: China, Japan, South
to 500 students in the Commemorative Korea, Australia and New Zealand
year 2017. came together to sign the Regional
Comprehensive Economic Partnership
ASEAN-India Media Exchange
(RCEP).
Programme: Forty media personnel
visit AMS and India annually under • This is said to be a pact that will revive
78
the fortunes of the world and lead to the its concerns and to build a sustainable
economic recovery of nations and more. post COVID-19 world. The nations
However, will the deal be equitable to all reviewed their cooperation framework
nations or will it be yet another agreement agreement for the period 2016-2020 and
that will be dominated by China. This is have come up with a new framework
yet to be seen. ASEAN nations that seek agreement for the next five years.
to extend their cooperation with China
on the economic front, do so considering PREVIOUS YEAR QUESTIONS
that the bilateral trade between ASEAN
and China stands at over USD 450 billion. 1. Evaluate the economic and strategic
dimensions of India’s Look East Policy
• In June 2020, the members of the
in the context of the post-Cold War
ASEAN came together in a conference
international scenario. 2016 (15)
and condemned the Chinese actions of
building artificial islands in the South 2. Indian Diaspora has an important role
China Sea and their lack of transparency to play in South East Asian countries’
in terms of probing the COVID-19 economy and society. Appraise the role
pandemic. of Indian Diaspora in South-East Asia
in this context. (2017) 15
• The Annual Track 1.5 dialogue is an
important platform for discussing issues
between the two sides. PROBABLE QUESTIONS
• Recently USA replaced the term “Asia- 1. Explain the significance of ASEAN in
Pacific” with “Indo-Pacific” which depicts India’s ‘Asia-Pacific’ policy.
the increasing importance of India, also
presenting a great opportunity and 2. What are the change brought in India-
ASEAN relations by policy shift from
responsibility on the Indian part. The
‘Look East’ to ‘Act east’?
cooperation with ASEAN is integral to
India’s ‘Asia-Pacific’ policy.
• In the area of culture, India is carrying
out restoration work in the Pagodas and
the temples of Myanmar and Cambodia.
• The importance of the diaspora has
been stated before. India has historical
links with these nations that it seeks to
preserve.
• Finally, India needs to move in and sort out
its differences with ASEAN on economic
issues in the RCEP and negotiate a
better deal for itself. It also needs to be
more active in the region and give the
confidence to these nations in terms of
security.
• During the recent meeting which took
place in the virtual form, the nations
agreed to cooperate with India to address
79
CHAPTER - 12
ISSUES IN THE INDO-

PACIFIC REGION
INTRODUCTION REGIONAL
• The Indo-Pacific region refers to the
confluence of the Pacific and Indian
COMPREHENSIVE
Oceans, which interconnect in Southeast
Asia.
ECONOMIC PARTNERSHIP
• It was only recently that the region which (RCEP)
was formerly known as the Asia-Pacific • The negotiations began in 2012 and
region was renamed as the Indo-Pacific concluded recently on November 15,
region, reflecting the close relationship 2020 with the signing of this agreement.
between India and the US in the strategic 15 nations excluding India have signed
sphere. this agreement.
• China is opposed to the Indo-Pacific • It is an economic agreement which
concept as it views it as the product of also includes a free trade agreement. It
American efforts to contain its own rising has several chapters on trade in goods
economic and military capabilities. Also and services, investments, e-commerce
“Indo-Pacific” is primarily understood as amongst others.
a U.S.-led containment strategy directed
• Till date 15 nations have signed the
against China.
agreement. These 15 nations include
• During the Trump administration’s “Free the 10 members of the Association for
and Open Indo-Pacific” concept aims to South-East Asian Nations (ASEAN)
contain China and is thus an expression who are Singapore, Malaysia, Thailand,
of the growing strategic rivalry between Vietnam, Laos, Cambodia, Philippines,
USA and China. Indonesia, Brunei and Myanmar and five
• The shift from the Asia-Pacific to the Indo- other trade partners of the ASEAN block:
Pacific is not just a matter of realpolitik. It China, Japan, South Korea, Australia
reflects tectonic geopolitical shifts that and New Zealand.
have occurred in the world over the past • India was a member of this trading block.
two decades or so. It left in November 2019 when none of its
concerns were addressed.
• These nations with India included will
contain a little over half of the global
population (2.1 billion without India), a
third of the global GDP and a quarter of
the global trade.
80
India and RCEP

• India was a founder member of this
treaty beginning in 2012. It has always
had issues with certain aspects of this
deal.
• Trade Deficit: Many of the Free Trade
Agreements signed between India and
the ASEAN, South Korea and Japan have
been to the disadvantage of India. The
nation has run huge amounts of trade
deficits with these nations. With respect
Significance of RCEP to China, India has over USD 50 Billion
trade deficit and China refuses to address
• Amidst the COVID-19 pandemic, this these concerns.
agreement is expected to bring in some
• Flooding of Chinese Goods: With the
stability to the region and the world
signing of this agreement, India would
whose trade has suffered in recent times
have been expected to reduce its
due to not only the pandemic but also
customs duties (amount paid to import a
trade wars, geo-political conflicts and
particular item into a country) by almost
a general slowdown in the economies
80% on all items from China including
across the region.
Steel and Solar Photovoltaic cells. Many
• It is expected to boost trade in the region, of these products are dumped into India
and this may help the economies to by China and India has imposed anti-
recover from the recession. dumping duties and more.
• However, the negative aspect remains • Promotion of Indigenous Manufacturing
that this block is dominated by China Sector: India intends to boost its
which continues to adopt unfair manufacturing sector and hopes to
trade practices, manipulates currency cut down its reliance on supply chain
exchanges and practices a mercantile networks originating from China. This
policy (maximum exports and minimum deal would prove to be yet another
imports). opportunity for China to dump its goods
• China continues to export to other nations and profit from the Indian markets even
while at the same time it continues to as it continues to block its markets to
block access to its markets for goods Indian goods and services.
from other markets. • Further, India would have had to cut
• It also continues to violate human rights duties by more than 90% on products
by employing forced labour and child from South Korea, Japan and ASEAN
labour in its factories to produce goods members.
at cheaper rates. • Issue of Dairy Products: India is the largest
• Now when other countries want to launch producer and consumer of milk and milk
their products in China and want to gain products in the world. Dairy products from
access to the Chinese markets, they will Australia and New Zealand would have
not be allowed to do so by various tariffs been dumped into the Indian markets
and non-tariff barriers. causing massive losses to the Indian
81
farmers and producers. India would have

had to cut duties by almost 86% on dairy
QUAD
products from these nations. • The Quadrilateral Security Dialogue
(QSD) or QUAD is an informal strategic
• Legal Issues: Another issue is the forum comprising India, Japan, Australia
chapter on e-commerce. The issue of and the United States of America.
transnational flow of data is something
that India is apprehensive of. -Its • The origins of the QUAD lie in the stellar
upcoming law on data protection hopes relief workout carried out by India during
to encourage data localization rather the 2004-05 Tsunami that struck the
than free flow of Indian data to other Southeast Asian and South Asian region.
nations, especially China. This also has • The idea was further taken forward by
not been addressed satisfactorily. Former PM of Japan Shinzo Abe in 2007.
• Nations seek to profit from India’s However, it took further 10 years before
economic growth and its demography the US, Japan, Australia and India came
and market size but at the same time, it together to form the alliance.
has refused to concede to India’s request • Core objectives of QUAD are:
with respect to free movement of natural
Securing a rules-based global order
persons.
Liberal trading system and
• India’s core strength lies in the Services
Sector and India can gain from exporting Freedom of navigation
the services of its citizens who are • Quad is a middle-ground between the
powerful in the knowledge intensive consensus-based regional multilateralism
industries such as bio-technology, and a NATO type security alliance.
education, medical and IT.
• Though this alliance is also seen to be
• This would involve an easier visa regime anti-China and it does aim to protect
and social security schemes that can the members of the Indo-Pacific region
be transferred. Nations have shut their against aggressive actions, it is not aimed
border to Indian nationals. against one single nation.
• China has in the past exported items to • However, these nations have also suffered
India by hiding the rules of origin. India due to Chinese actions and are aiming
had raised these concerns too. However, to ensure that there is a respect for
RCEP has failed to address it. For international law. Further, this alliance
example, China could continue to export should be extended into other regions
goods and services through the ASEAN including Africa, which is being colonized
region into India. India has a Free Trade by China.
Agreement (FTA) with the ASEAN region.
• India’s inclusion in the Quad is, in fact,
• Under such selfish behaviour displayed a long-cherished recognition of India’s
by these nations, India left the RCEP in power and prestige as a dominant
November 2019. resident power in the Indian Ocean
• However, time has come to negotiate a region.
better deal with the bloc. • The India-US relationship is growing
strong with the US willing to share
responsibility with India in managing
the security of IOR. US also expects
82
India to become a major power in the Chinese aggression.

Indian Ocean in partnership with the US • The US, India, Japan and Australia have
so that its interest in the region can be got together through the formation of
safeguarded. QUAD and are providing support to the
members of the ASEAN.
THE SOUTH CHINA SEA • India’s policy is clear that it is against the
region being monopolised by any single
DISPUTE nation and it supports a region that will
• The South China sea is located in the ensure the development of all nations. It
Pacific Ocean and is an important sees the region as critical to its economic
shipping zone in the world. This region development.
is a disputed maritime territory involving
China, Taiwan, Vietnam, Malaysia,
Indonesia, Philippines, and Brunei.
INDIA-PACIFIC ISLAND
• China claims almost the entire area COUNTRIES
through its nine-dash line which also • There are 12 Pacific Islands, and they are
includes the islands of Paracel and Fiji, Kiribati, Marshall Islands, Federated
Spratly. In recent times, it has settled States of Micronesia, Nauru, Palau,
villages in the region and sent fishermen Papua New Guinea, Samoa, Solomon
to carry out their activities. Islands, Tonga, Tuvalu and Vanuatu.
• The South China sea is also an important • It was only in 2014 that India reached out
fishing ground in the world and is also to this neglected bloc.
believed to contain hydrocarbons. This
is the reason why nations have paid • India has provided a Special Adaptation
importance to the region. Fund of USD 1 million to these nations.
This is in addition to the grant of USD
• China has even ignored the verdict of 200,000 to each of the island groups
the Permanent Court of Arbitration annually.
at Hague which asked the Chinese to
vacate these territories of which they are • Renewable energy, diaspora links and
in illegal possession of. strategic interest dominate India’s
relationship with these nations.
• Finally, the third meeting of the Forum
for India and Pacific Island Cooperation
(FIPIC) was scheduled to have been held
in 2020. The status is unknown at the
moment.
Way Forward
• India’s imagination of the Indo-Pacific is
an extension of its advances in the east
through the Look East Policy, now the
Act East Policy.
• In a recent meeting of the ASEAN, • India’s Indo-Pacific strategy has been
the members expressed concern over
83
more about dodging than distinctiveness.

India is arguing for a “free and open Indo-
Pacific”.
• India has introduced the concept of
SAGAR (Security And Growth for All in the
Region) and believes in an Indo-Pacific
that is free, open and inclusive, and one
that is founded upon a cooperative and
collaborative rules-based order.
PROBABLE QUESTIONS
1. Write a short note on the South-China

dispute and India’s interests in the
region. (10)
2. India should strive to get a better
deal in the RCEP instead of exiting it.
Comment (15)
84
CHAPTER - 13
INDIA-IRAN RELATIONS
INTRODUCTION • Until 1947, the two nations even shared

a land boundary before the partition of
• In the past year, the relations between India took place.
India and Iran have plunged from bad to
worse. In the first instance, India pulled • In recent times, during the tenure of Shah
out of the Farzad B Oil Exploration Reza Pahlavi till 1979, relations between
project, then Iran went ahead with the India and Iran remained lukewarm. Both
Chabahar-Zahedan railway link project the nations were on the opposite sides of
without Indian assistance and finally the the cold war. India chose to maintain a
oil imports from Iran has become near policy of Non-Alignment and Iran chose
zero owing to the fear of US sanctions. to embrace the US.
• Iran has also commented and blamed • This even meant that Iran became
the Government of India for the Delhi closer to another US ally: Pakistan and
riots that struck the national capital in permitted it to use its territory against
February 2020. India in the 1971 war.
• In this regard, we can see that the • It was after the overthrow of the monarchy
US sanctions followed by India’s own by an Islamic Revolution in 1979 led by
reluctance and execution of projects at Ayatollah Khomeini that the relations
a snail’s pace has impacted the relations between the two countries started to
between the two nations on all fronts. improve.
• In December 2019, External Affairs • In 1980, a Joint Commission was

Minister Dr S. Jaishankar visited Iran for appointed to steer the relations between
the Joint Commission Meeting and this the two countries towards a greater path.
visit was reciprocated by Iranian Foreign • In 2001 and 2003, the Tehran and
Minister Javed Zarif in January 2020. New Delhi Declarations were signed
to enhance the strategic partnership
HISTORICAL LINKS
• However, little could transpire after that.
• From ancient times with the invasion of Following the negotiations over the Indo-
the Parthians to the modern times, every US Nuclear Deal, India turned against
aspect of life in both India and Iran has Iran due to American Pressure.
been evolved through mutual interactions
with one another. • India voted against Iran at the
International Atomic Energy Agency
• The very Persian Language and its (IAEA) meeting in 2004. This led to
influence in India, Roti and the Kalamkari deterioration of ties between India and
Paintings in the state of Andhra Pradesh Iran.
have been a product of the interactions
between India and Iran. • Ever since, gradually India has reduced
85
its oil imports from Iran. The energy

partnership is a key component in the
bilateral ties between the two countries.
• Following the 2015, Joint Comprehensive
Plan of Action (JCPOA), sanctions against
Iran were lifted and India resumed its ties
with Iran.
• In 2016, the International transport
and transit corridor agreement was
signed to facilitate the development of
the Chabahar Port and other related
infrastructure projects.
• However these projects again took a
• Presently India imports over 85% of
backseat as the US withdrew from the
its crude energy requirements and this
JCPOA and levied sanctions against Iran.
is only expected to double by 2050 as
• From 2020, the ties between the US and the nation develops. For this, one would
Iran have further deteriorated. However, assume considering the geographical
with the recent victory of US President proximity to India, Iran would be a major
Designate Joe Biden, the relations may source of crude oil imports.
improve between the US and Iran.
• However, this has been reducing since
• One may wonder as to why the US-Iran 2011. In 2011, India imported a little over
relations should impact India. Let us 17% of its total crude oil from Iran. As of
look at that answer and other pillars of 2019, this number was reduced to 10%
cooperation between the two countries and ever since, it is presently near zero.
below.
• In 2018-2019, India imported crude oil
worth USD 12.11 Billion.
PILLARS OF • This is due to the ‘Significant Reductions
Exceptions’ waiver from the US which
COOPERATION permitted India and a few other nations
to continue importing crude oil from Iran
Economic Links and came to an end.
Development Assistance • Despite all these sanctions, to get around
• Iran is a nation that is blessed in the the US sanctions, the Reserve Bank of
‘Geographical’ sense. It is located at the India and the Iranian Central Bank signed
crossroads of West Asia, Central Asia a ‘Currency Swap Agreement’ which
and South Asia. Further, it is blessed with permits India to pay for the oil imports
abundant energy resources. It controls from Iran using the Indian Rupee (INR).
the Persian Gulf and the Strait of Hormuz. This would save India its precious foreign
exchange reserves.
• Further Iran has also permitted a 60-day
credit for the payments and has also
given free insurance.
• Commercial acumen would dictate
86
that India would have grabbed this • It helps India gain access to Afghanistan
opportunity. However, India has adhered while avoiding Pakistan at the same time,
to US pressure. • It permits access into the Central Asian
• In January 2020, India gave up on the Republics and the larger Eurasian region.
exploration of the Farzad B Gas fields in Indian goods and services can find new
Iran. markets which will enable its growth.
• In the past, India has also explored • Trade with Iran too can grow with these
the Iran-Pakistan-India oil pipeline. projects.
However, due to rising costs, delay in • Considering the above, there are two
clearances and the security situation in main connectivity projects that are
Pakistan, this project has been stalled presently underway in Iran with the
presently. assistance of India:
• India is Iran’s second largest market for
export of crude oil. International Transport and Transit
Corridor Project
• In matters of bilateral trade, we see a
cause for concern. For the period 2019- • This project initially conceived in 2003 was
2020, the bilateral trade was USD 4.77 finally agreed to in 2016. Prime Minister
billion as compared to USD 17.03 Billion Narendra Modi, Iranian President Hassan
for the period 2018-2019. This was a Rouhani and the Afghan President Ashraf
reduction of 71.99%. Ghani signed the ‘International Transport
and Transit Corridor Agreement’ in 2016
• Indian exports have grown. However, this
in the Iranian capital of Tehran.
is far below potential. It is yet again the
fear of US sanctions that has curbed the
full expansion of ties between the two
nations.
• India has handed over PPE kits and PCR
machines which will enable Iran to fight
the menace of COVID-19. Further India
has supplied 103 tons of relief material
following the floods in Iran. It also gave
Iran ‘Malathion’ to fight the desert locust
that ravaged across the nation in the
Persian Gulf.
Connectivity Projects
• As mentioned before, the Geography of
Iran offers many opportunities for India
to pursue with respect to connectivity
projects. The strategic benefits of Iran • This agreement is also called the
is unknown to many in the Indian policy ‘Chabahar Port Project’ popularly.
circles. • It involves the construction of the
• These connectivity projects with Iran Chabahar Port in the south of the nation.
have the following advantages: This port is of strategic significance as
87
it is located on the Gulf of Oman and is

about 75 KM from the Gwadar Port in
Pakistan.
• The Agreement also stipulates the
construction of the Chabahar-Zahedan
Railway link project. This railway line from
the Chabahar port in Iran to the Afghan
border provides direct connectivity to the
Zaranj-Delaram highway in Afghanistan,
which had been completed by India in • In simple terms, this project aims to
2009. connect Mumbai in India to Moscow
• Since the construction of the port also in Russia. It is also called the Mumbai-
called the Shahid Beheshti port, India Moscow link project.
has exported more goods to Afghanistan • The Agreement that has been signed is
through this port. It has enabled India called the Ashgabat Agreement.
to reduce its dependence on Pakistan
which has steadfastly refused to grant • It involves the construction and
transit rights to Indian vehicles wanting upgradation of shipping lanes,
to ply across to Afghanistan. railway and roadways projects and air
connectivity between the nations.
• This project is of critical importance to
India. While the port project has gone • India’s goods and services will find new
through, the railway link project has markets and this should be pursued
failed to take off. vigorously.
• Iran has recently announced that it will
be going ahead with the project on its
Strategic/Defence Relations
own. This created a backlash in India. • From the connectivity projects mentioned
Recently, Iran backtracked and has above to peace and security in the region,
requested assistance from India. the two nations have a similar approach
• Once again, it is the fear of Countering to issues of mutual concern.
American Adversaries Through Sanctions • Firstly, the connectivity projects are
Act (CAATSA), that has prevented both mutually enhancing and need to be
nations from fully realizing the potential pursued with more vigour.
of this project. • Secondly, as far as the issue of
• India has got exemptions under CAATSA Afghanistan is concerned, the two
for this particular project, still companies nations have cooperated in the past to
have refused to venture into it. defeat the evil designs of the Pakistan
backed terror groups such as Taliban.
International North-South Transit Both nations along with Russia formed
Corridor Project the ‘Northern Alliance’.
• This project is yet another connectivity • Presently though, Iran is part of the Moscow
project involving India, Iran, the Central conference which favours a dialogue
Asia Republics, Russia and the larger with the Taliban and cedes space to the
Eurasian region. terrorist’s group in Afghanistan. India, on
the other hand has favoured a resolution
88
which is Afghan led and Afghan owned which is another port which is 350 Kms
rather than foreign states imposing their from Chabahar. China may take up this
views on the Afghan people. offer. However, Iran has clarified that
• On the issue of Pakistan state sponsored none of these projects will impact India.
terrorism, both Iran and India are victims • With India reluctantly embracing Iran
of this dastardly attacks that have and not fulfilling its commitments, with
destroyed the people and their lives. many projects being delayed, it is natural
• Sunni insurgent groups from Pakistan for Iran to look for other partners and the
have targeted Iran in the past. This is one relations with India bound to suffer.
area where further collaboration should • Iran has also developed a habit of
be explored. lecturing India on issues related to the
• However, the similarities end here. Iran’s situation in the Union Territory of Jammu
hostile attitude towards the members of and Kashmir and the Delhi riots.
the Gulf Cooperation Council and Israel • It is this unnecessary habit of lecturing
have harmed India’s interests and India India and India’s inability to throw off the
has not supported Iran in this regard. yoke of US sanctions that is resulting in
• In the previous years, Iranian backed the relationship suffering to such a great
rebels have attacked Saudi Oil facilities. extent.
• Major General Qassim Soleimani who was • It is time for both the nations to work
assassinated by the US in a drone strike towards improving their ties.
in January 2020 headed the dreaded, • The defence relations too are stagnant,
‘Iranian Revolutionary Guards’. He has despite the signing of the Strategic
been accused of masterminding terror Partnership Agreement also called the
attacks across West Asia in Lebanon, ‘New Delhi Declaration’ in 2003.
Israel, Yemen and Syria amongst other
nations.
THE US FACTOR
• Its nuclear program will be supported
by other nations provided it is peaceful. • It will definitely not be an exaggeration
However, its stated vision is to destroy to say that the India-Iran ties have
the state of Israel. India cannot support been held hostage to the prevailing ties
such a program. between Iran and the US.
• Iran has also attacked Israeli targets • India-Iran relations have floundered
around the world including in India. during periods of conflicts between the
US and Iran and have prospered during
• Iran’s relations with China is also a times of peace.
matter for concern. The two nations have
recently signed an investment pact worth • With the signing of the JCPOA in
USD 400 Billion for the next 25 years. 2015, India immediately seized the
opportunity to improve its relations with
• China has also evinced interest to connect Iran. However, US withdrawal from the
the Gwadar port to the Chabahar port. deal in 2018 and levying of sanctions
The distance between the two ports is against the US has yet again spoilt the
barely 75 Km. relations with Iran.
• Recently, Iran has offered the • The first issue that merits a discussion
development of the Bandar- E-Jask,
89
here is the issue of CAATSA and expansion of Indo-Iranian ties.

Significant Reduction Exception. The • The Iranian media has rightly asked as
former sanctions countries who trade to whether India’s ‘Iran policy’ has been
with nations that are against the US and hijacked by the US. So it’s high time
its interests. Presently, trade with Iran that India strategically aligns with both
and Russia invite sanctions by the US. countries on an autonomous and need
• Despite securing waivers, India has failed based approach. For this, India has to
to take forward its relationship with Iran. take bold steps. As a leading power it
This is primarily due to private companies cannot buckle under pressure of any
refusing to participate in projects in Iran. country.
Many of these companies also work within • India needs to chart out its own path
the US financial system and are afraid of and work on improving its relations with
falling foul of the US Government. its historical and civilizational partner. It
• Many European nations have established needs to come out of the US embrace.
the Euro based INSTEX Trading • While the relations with the US are
mechanism. India needs to urgently important for India, it can equally not
fix this issue and either join the INSTEX afford to ignore Iran.
trading mechanism or get its Public
Sector Companies to undertake projects • Iran too needs to accommodate India’s
in Iran. concerns with respect to China and
Pakistan and stop interfering in its
• Despite having a currency swap internal matters.
agreement with Iran, India is yet to fully
exploit it. • Iran is critical to India’s achievement of a
developed nation status. The same way,
• The second factor which is astonishing India is important for Iran’s economic
is that India has stood up to the US as development.
far as the threat of sanctions against the
S-400 Triumpf Air Defence System from • As India assumes the non-permanent
Russia is concerned. membership of the UNSC beginning
from January 2021 and as it aspires for
• India has signed the deal and will be a permanent membership of the top UN
going ahead in the execution of this body, it needs to become more assertive.
important defence deal. Perhaps, its relations with Iran can be a
• If India can stand up to the US on this good starting point.
issue, what stops it from rubbishing the
threat of US sanctions with respect to its PREVIOUS YEAR QUESTIONS
relations with Iran?
1. In what ways would the ongoing US-
Iran Nuclear Pact Controversy affect the
THE ROAD AHEAD national interest of India? How should
• India-Iran relations can be compared India respond to this situation? (2018) (15
to the vagaries of the monsoon. A good marks) (250 words)
monsoon guarantees a good year of
economic development in India. In the PROBABLE QUESTIONS
same, a friendly administration in USA
guarantees the opportunities for the 1. Relations between India and Iran are
90
like the vagaries of the monsoon. Just

like a good monsoon guarantees the
growth of Indian economy and a bad
one spoils the economic growth, a
friendly administration in Washington
DC guarantees expansion in ties
between India and Iran, whereas an
unfriendly one limits the scope for
cooperation. Comment (15 marks) (250
words)
2. Concerted efforts by China and
Pakistan to undermine Indian interests
in Iran will have to be guarded against.
Comment (10 marks) (250 words).
91
PILLARS OF Strategic Crude Oil Reserves

• Member states of the International
COOPERATION Energy Agency are permitted to store
‘Strategic Crude Oil Reserves’ up to a
Energy Cooperation period of 90 days.
• Energy Cooperation is one of the • This permits the nations to ensure the
important pillars of cooperation between continuous flow of energy even when
the two nations. As of 2018-2019, UAE there are threats in the international
became India’s fourth largest supplier of markets due to wars, oil spills and other
crude oil. It supplied 17.49 million tonnes calamities.
of crude oil to India.
• The Ministry of Petroleum and Natural
• The crude oil trade between the two Gas has decided to store crude oil supplies
nations for the period of 2019-2020 underground in the following places:
stands at approximately USD 18 Billion. Visakhapatnam (Andhra Pradesh),
• One important feature of this cooperation Padur and Mangaluru (Karnataka).
in this area is that the relationship • Further approval has been given to
has transformed from a buyer-seller construct one facility at Chandikhol
relationship to one that involves a (Odisha).
‘Strategic Partnership’.
• As there is a slump in the oil prices, India
• As India has become the third largest has gone ahead and decided to fill these
consumer of energy products, it is reserves. The Indian Strategic Petroleum
estimated that it will need more than Reserves Limited (ISPRL) is a wholly
USD 300 Billion worth investments in its owned subsidiary of the Oil Industry
Oil and Gas sector. Development Board which is under the
• The Abu Dhabi National Oil Company aegis of the Union Ministry of Petroleum
(ADNOC) plays a critical role in this and Natural Gas.
process and has invested across India • The Abu Dhabi Investment Authority has
in various oil and gas sector projects further pledged to invest USD 400 Million
and has expressed interest for further in various renewable energy products in
investments. India.
• ADNOC along with Saudi Arabia is
involved in the construction of the Economic Cooperation
Ratnagiri Oil Refinery in Maharashtra
which is worth over USD 44 Billion. • UAE is the third largest trading partner
of India and the second largest export
• UAE has also agreed to participate in the destination after the US.
storage of ‘Strategic Crude Oil’ reserves
in Padur and Mangaluru in Karnataka. • Further, India is the second largest
trading partner for the UAE.
• In 2019-2020, the total bilateral trade
stood at USD 59.10 Billion. Out of this
amount, the non-oil trade amounted to
USD 41.43 Billion almost. India exported
Goods and Services worth USD 28.8
94
Billion and imported the same worth USD various affordable housing schemes.
30 Billion approximately. • Indian companies too have invested
• However, overall trade declined by 1.34%. in the various sectors of the UAE such
Exports from India reduced by almost as retail, banking, education, food and
4.2% whereas imports grew by 1.5%. beverages amongst others.
• During the recent visit of the PM to the • Civil aviation is another important
UAE, the nation became the first in the area of cooperation between the two
Gulf Region to launch the Ru-Pay Debit countries. Various UAE based airlines
cards which have been developed by the operate flights to India which has become
National Payment Corporation of India. an important market for these cities
• The bilateral trade may experience shocks and airlines that offer transit facilities
and is prone to fluctuations depending for Indian travellers who seek to travel
on the overall global economic situation. further towards Europe, North America,
South America, Africa and other parts of
• Both the nations have signed the Double Asia.
Tax Avoidance Treaty in 2012.
• So it can be said that the economic
• Investment: In 2019, UAE invested USD partnership is promising and needs to be
10-11 Billion into India and USD 6.65 further promoted. Areas such as Artificial
Billion was Foreign Direct Investment. Intelligence and emerging technologies,
The UAE government has committed civil aviation, shipping can be explored
USD 75 billion towards developing Indian for further cooperation.
infrastructure.
• Some of the sectors which have seen Strategic/Defence Ties
investments from the UAE include the
• In the past, UAE has refused to cooperate
Service sector, sea transport, power,
with India on the extradition of those
construction, townships, housing projects
accused of terror activities in India.
etc.
The nation also had initially refused to
• Various UAE based companies have also grant permission to the hijacked IC-814
invested in India. The Emaar Group, a aircraft that was approaching it. After
famous real estate company has already US intervention, it finally let it refuel and
invested in Hyderabad and now is now release a few hostages.
keen to invest in the food processing
• In recent times, the security cooperation
industries of Gujarat, Madhya Pradesh
has widened. The UAE is also a popular
and Maharashtra.
destination for the Pakistani diaspora
• Another private investment is that of the and India has in the past detected the
Lulu Group which has already invested in UAE territory being used for various anti-
the states of Andhra Pradesh, Kerala and Indian activities.
Uttar Pradesh.
• This was the situation in the past and now
• As far as Government to Government things have changed. The two nations
(G2G) investments are concerned, the have vowed to defeat Pakistan state
Abu Dhabi Investment Authority and the sponsored terrorism and cooperate on
National Infrastructure Investment Fund matters related to intelligence sharing,
have signed an agreement worth USD narcotics smuggling and cyber safety.
1 Billion to fund projects that promote
• With the signing of MoU on Defence
95
Cooperation in 2003 and setting up of • Both countries share historic cultural

Joint Defence Cooperation Committee ties and are making sincere efforts to
(JDCC) regular exchange of dialogue is cultivate regular cultural exchanges both
taking place between the two countries. at official and popular levels.
• UAE and Israel have recently established • India and UAE signed a Cultural
diplomatic relations and have agreed Agreement in 1975 and also a bilateral
to normalize their ties. This presents Cultural Exchange Programme.
various opportunities for India which • The Emirati community also participates
can facilitate tripartite cooperation with in our annual International Day of
Israel and UAE and explore projects not Yoga events and various schools of
only in India but also in the other parts yoga & meditation centres are running
of South Asia, Africa and other regions in successfully in the UAE.
areas of water preservation technology,
agriculture, defence etc. • During the recent visit of PM Modi to the
UAE in 2019, the first ever Hindu Temple
• So this is one of the lesser explored areas was inaugurated in Abu Dhabi.
for further collaboration between the two
nations. Though there exists a dialogue
between the National Security Advisors CHALLENGES
and the two Navies do cooperate on • Iran Issue: The UAE and Iran have disputes
matters related to the safety of the pertaining to the maritime islands of
Persian Gulf and the Indian Ocean Lesser and Greater Tunbs and the Abu
Region, the cooperation needs to be Musa islands. Iran which is displaying
further enhanced. an aggressive streak in its interactions. It
will be yet another dispute between the
Diaspora Iranians and the Arabs. India’s energy
• The Indian Diaspora is around 3.3 million security, its trade and diaspora links will
and they remit over USD 17.56 Billion. be impacted, if there is any conflict in the
The UAE remains a popular destination region.
for Indian nationals from most of the • Commercial challenges: Indian
states. companies operating in the UAE are
• The number of residents from Kerala facing problems due to lack of clarity in
remains the highest in the UAE. many aspects of commercial regulations,
labor laws and lack of transparency on
• As mentioned before, there are issues part of Emirati businesses.
pertaining to the diaspora between the
two nations. • Problem faced by Diaspora: UAE has also
failed to ensure that the Indian workers
• Some members of the diaspora have live and work in dignified conditions. Their
posted anti-Islam comments on harassment by the local communities will
various social media channels which result in negative perception of the UAE
are communal in nature. This has the in the minds of Indians. This needs to be
potential to vitiate the growing relations urgently rectified.
Cultural Ties THE ROAD AHEAD

• The relations are definitely in a state
96
of upswing and the two countries comment (10 marks)

are cooperating in diverse areas and
2. The progressive values espoused by
exploring further areas for cooperation.
UAE and its remarkable synthetic
• The COVID-19 crisis and its economic culture compliments Indian policy of
slowdown has the potential to slow tolerance and secularism. Comment
down the cooperation too and both the (10 marks).
nations should actively guard against
this problem.
• India has a huge market and there
is a significant scope for growth in
automobile industry, services sector,
agriculture and allied industries. If
business regulations are eased and the
time spent on getting clearances can be
reduced, it can lead to major investments
from Gulf and Emirati investors.
• In defense sector, there is a need to
further enhance cooperation through
joint training programs for Indian and
UAE officers. India can also increase the
number of Emirati officers who can avail
training in its defense schools.
• Medical tourism: India is home to one of
the finest human resources in medical
profession and its private hospitals have
the necessary infrastructure, facilities and
expertise to provide world class medical
care within a fraction of the cost spent
in developed countries. Hence, medical
tourism can be an important area where
India can attract Emiratis.
• As India’s expertise grows in the world
and it becomes an emerging power, the
UAE will play a critical role in the process
and the upcoming non-permanent
membership of the UNSC, will afford
India more opportunities to cooperate
with its friend across the Arabian Sea.
PROBABLE QUESTIONS
1. UAE-India relations have moved

beyond mere buyer-seller relationship
in the area of energy cooperation and
encompases a ‘Strategic Partnership’.
97
CHAPTER - 15
INDIA-SAUDI ARABIA RELATIONS
INTRODUCTION • Since then, the relationship which was

lukewarm has begun to fructify into a
• Being one of the economic powerhouses relationship that is an example for other
and leaders of the West Asian region, nations to emulate.
Saudi Arabia’s influence extends beyond
West Asia, into the larger Islamic world
and beyond. Hence, India’s partnership IMPORTANCE OF THIS
with this nation is critical for its welfare
and development. RELATIONSHIP
• India and Saudi Arabia enjoy cordial and • This relationship is important for both the
friendly relations reflecting the centuries nations. It is a relationship that is based
old economic and socio-cultural ties. The on mutual interests and friendship.
establishment of diplomatic relations • As far as India is concerned, this
in 1947 was followed by high-level visits relationship is important from the point
from both sides. of view its:
• In recent times, the relations have moved • Energy Security: India imports over
beyond mere commercial partnership 85% of its energy needs. Saudi Arabia
and assumed strategic importance. has consistently been India’s number
• Further, the two nations established the one supplier of crude oil, accounting for
Strategic Partnership Council (SPC) around 20 percent of its total oil demand.
which will consist of two tracks: Political, • Economic Development: In Recent
Security, Culture and Society Initiative times, Saudi Arabia and its investment
and Economy and Investment Initiative. funds have evinced interest in investing
• India has been the fourth nation with in various Indian projects and Start-
whom Saudi Arabia has established this Ups. Saudi Arabia too has changed its
Strategic Partnership Council with. Other perception of India in recent times and
nations are China, France and Britain. looks at the nation as a key partner in its
economic development.
• The two sides will meet every two years to
take forward the relationship between the • Diaspora links: Saudi Arabia is an
two countries. Further, 12 Memorandum important and popular destination
of Understandings (MOU’s) on matters for Indian workers who find many
pertaining to narcotics trafficking, employment opportunities and also
renewable energy, security etc were many Indian nationals undertake the
signed. religious pilgrimage.
• India and Saudi Arabia signed the • Issues pertaining to Terrorism and
‘Strategic Partnership’ Agreement in Radicalization: In recent times, it is this
2010. This is also called the Riyadh cooperation that has grown. Terrorism
Declaration. and especially those pertaining to cross
98
border terrorism and the growth of the to generate 40% of its total energy
Islamic State (IS) is a cause for mutual requirements through renewable energy
concern between the two nations. The by 2030. In this regard two nations have
threats posed by online radicalization signed a MOU on expanding cooperation
have also increased with the growth of in the field of renewable energy. It is
the internet. important to collaborate in the space of
clean energy.
Economic Ties and Investments

• It is in the field of economic ties and
investments that the relationship
shows a promise of growth and further
cooperation.
• Bilateral Trade: The bilateral trade for
the period 2018-2019 was USD 34 Billion.
India is Saudi Arabia’s 4th largest
trading partner and 4th biggest export
destination.
• During the recent visit of the PM, a MOU
PILLARS OF was signed to facilitate the utilization of
RuPay Debit Cards from India in Saudi
COOPERATION Arabia.
Energy Cooperation • Investments: Saudi Arabia seeks to invest
USD 100 Billion in sectors such as Petro-
• Crude Oil: India imports over 85% of its chemicals, infrastructure and mining.
energy requirements. In this regard 20% India also hopes to attract investments
of the crude oil supplies. over USD 100 Billion by 2024 in the Oil
• Strategic Energy Partnership: Both and Gas Infrastructure sector.
sides entered into a Strategic Energy • Saudi Company ‘ARAMCO’ and UAE
Partnership (SEP), based on the principles based ‘ADNAC’ are presently working on
of complementary and interdependence. constructing the Ratnagiri Refinery and
The SEP called for Saudi Arabia to Petro-Chemical Projects which is valued
provide a “reliable, stable and increased at USD 44 Billion.
crude supply” to India through ‘evergreen’
• Saudi Arabia and its various investment
long-term contracts.
fund authorities have also invested in the
• LPG Supply: Saudi Arabia’s share in Indian Start-up space.
India’s growing LPG (butane and propane)
• However, plenty of issues exist as far as
requirements. After Qatar, Saudi Arabia
the ‘Ease of Doing Business’ in India is
is the second largest supplier of LPG to
concerned. Land acquisition policies as
India. Over 32% of the LPG requirements
far as the Ratnagiri refinery project in
are imported from Saudi Arabia.
Maharashtra, uncertain taxation laws
• Co-operation in Renewable Energy: As and labour policies have halted Saudi
per its Intended Nationally Determined investments into India.
Contributions (INDC), India has pledged
99
• The Government has in recent times concern for both India and Saudi Arabia
undertaken various initiatives that and cooperation in the field of tackling
promote the ‘Ease of Doing Business’. It online radicalization will have to be
is expected to improve the investment fortified.
climate. • Noninterference in Internal Matters:
• ‘Vision 2030’ of Saudi Arabia: The nation Many nations in the region including
that has always been dependent on Saudi Arabia have stayed away and not
this commodity has now realised the commented on various internal issues of
effects of ‘resource curse’. Hence, it has India such as the abrogation of Article
launched its ‘Vision 2030’ and identified 370 of the Indian Constitution pertaining
India as one of the 8 strategic partners to the erstwhile state of Jammu and
for economic diversification. Kashmir.
• India has launched various Industrial • Policy of Dehyphenation: In the past,
Corridor projects and Saudis could invest Saudi Arabia’s relations with Pakistan
in these projects. had influenced its relations with India.
• Lastly, India hopes to invest USD 1.3 The former had been influenced by the
Trillion in the various economic and latter and had supported Pakistan on
social infrastructural projects by 2024. many issues against India. India too had
Saudi Arabia will play an important role always looked at its relationship with
in this regard. Saudi Arabia from the lens of Pakistan.
Now, India has successfully delinked
this and continues to develop ties on an
Strategic/Defence Relations independent basis.
• Riyadh Declaration: With the signing • To counter Pakistan: India is aware of the
of this declaration in 2010, both nations critical influence that Saudi Arabia has on
became strategic partners. This ‘Strategic Pakistan and hopes that it will convince a
Partnership’ has extended to extensive ‘terror sponsoring’ state to give up its use
cooperation in matters pertaining to of terrorism as a state policy. In recent
defence and security. times, the relationship between Saudi
• Counter-terrorism cooperation: Saudi Arabia and Pakistan has deteriorated
Arabia has been at the forefront on and it is expected that Saudi Arabia will
sharing of intelligence and cooperation move closer to India.
in the field of counter-terrorism • In the FATF Plenary meeting Saudi Arabia
cooperation. Many high-level terrorists voted against Pakistan and ensured that
wanted by the Indian courts have been it remained in the ‘Grey List’.
extradited from Saudi Arabia to India.
• Naval Security: The security of the Indian
• Extradition Treaty and Agreement: The Ocean Region and the overall Gulf
two sides have signed an Extradition Region too is an area for cooperation
Treaty and Agreement on Transfer of between the two nations. In this regard,
Sentenced Persons. Saudi Arabia has the two nations will soon hold their first
handed over a dozen suspects, including joint naval exercise in the Indian Ocean
Abu Jundal, to India for their alleged role Region.
in various terror-related cases
• Iran Rivalry: An aggressive Iran is a
• Cooperation in tackling ISIS: The threats threat to Saudi Arabia. India shares a
posed by the Islamic State are of mutual
100
good relationship with Iran. It can also employment opportunities in India.

play a key role in reduction of tensions
and bring peace in the region. Cultural Dimension
• India as a non-permanent member of • Several organizations formed by Indians
the UNSC from January 2021 can play a residing in Saudi Arabia are involved in
greater role. bridging gaps between the two countries.
• The two nations can also further • The annual Hajj and the Umra pilgrimages
cooperate in various other multilateral are a regular and important focal point of
institutions such as the G-20 and the UN India-Saudi cultural interaction. Indians
Counter-Terrorism initiative. constitute one of the largest contingents
of pilgrims to the Muslim holy cities of
Diaspora Makkah and Madinah.
• Saudi Arabia remains a popular • Over 2 lakh Indians visit the holy Mosques
destination for the Indian diaspora who of Mecca and Medina to perform the Hajj
seek to work and live in the holy kingdom. every year. During the visit of the PM,
Over 2.6 Million Indian nationals work Saudi Arabia has agreed to increase the
and live in Saudi Arabia. Haj Quota from India.
• This has also kept the remittance inflow • People-to-people ties have been
into India steady. Remittances from strengthened as a result of the many
Saudi Arabia are worth USD 11 Billion. Saudi students who are enrolled in Indian
• However, in recent times, Saudi Arabia’s educational institutions.
actions have resulted in challenges for • India and Saudi Arabia have signed several
the Indian diaspora. Various legislations agreements to provide opportunities for
such as the Nitaqat ordinance that seeks higher education, research, and training
to employ Saudi nationals over foreign to their respective students, scholars and
workers in the kingdom have resulted in experts in their respective countries.
loss of employment opportunities and fall
in remittance-based revenue for many
Indian nationals. THE ROAD AHEAD
• Following the COVID-19 pandemic, this • In the past, the relationship was just
is expected to worsen the situation. India that of a buyer and seller. Presently, the
will be facing a challenge in this regard relationship has moved beyond and has
and will have to be prepared to deal with become a ‘Strategic Partnership’.
the inflow of its diaspora who have to • The two countries are presently in a
gain employment opportunities in India. period of transition. Saudi influence
• In this regard, the Ministries of Skill is waning and India is emerging as a
Development and Entrepreneurship, powerful nation whose opinions are a
Civil Aviation and External Affairs have force to reckon with. However, the matter
launched the Skilled Workers Arrival doesn’t end here. The two nations will
database for Employment Support need each other in the coming decades.
(Swades) to record the skills of the • As mentioned before, Saudi Arabia hopes
diaspora who are returning home due to cut down its reliance on oil and other
to the COVID-19 pandemic and this commodities and diversify its economy
database will assist them in finding into other sectors. So the two nations
101
could further collaborate in diverse

fields such as Artificial Intelligence and
other emerging technologies and the
Infrastructure sector.
• Both nations could also explore the
potential of setting up of ‘Strategic
Reserves’ of crude oil in India. It is one
of the areas in which India and UAE are
presently cooperating.
• Saudi Arabia, as mentioned before, is
not just a nation on its own. Its influence
extends to every corner of the world.
Hence, a partnership with Saudi Arabia
will help India become an economic
powerhouse and a permanent member
of the UNSC.
• West Asia is presently undergoing change.
Nations are embracing Israel and forging
an alliance against Iran and Turkey. Any
involvement in the affairs of the Middle-
East will have to be done in a calculated
manner. India will have to tread carefully
and will have to take choices that further
its national interest.
PROBABLE QUESTIONS
1. India-Saudi Arabia will have to

compulsorily enhance their ties in the
field of renewable energy, considering
the fluctuations in the crude oil market.
Comment (10 marks).
2. The ‘Pakistan’ factor has been
successfully delinked from India-Saudi
Arabia relations. Comment (10 marks).
3. Explain to what extend India-
Saudi Arabia relationship has been
transformed from a transactional
relationship to a strategic partnership.
102
CHAPTER - 16
INDIA-ISRAEL RELATIONS
INTRODUCTION for nearly four decades. But it was only

in 1992 that the two sides established full
• The relations between India and Israel are diplomatic relations and it took another
both a matter of mystery and inspiration. 25 years for the establishment of strategic
Despite having all the prerequisites to partnership.
develop a meaningful partnership from
the beginning, it was only in 1992 that the • India from its independence was
two nations established full diplomatic committed to the Palestinian cause and
relations. It took another 25 years (in further was a leader of the Non-Aligned
2017) for the establishment of a ‘Strategic Movement (NAM). Israel on the other
Partnership’ between the two countries. hand supported the US during the cold
war period.
• Presently, the two nations are close
friends’ cooperation in every sphere • The end of the cold war and the
of development. What brings the two disintegration of the former USSR in
nations together, what took this long to 1991, provided not only opportunities for
establish a meaningful relationship and growth in the Indo-US relations but also
how are the two nations cooperating in that of many US allies such as Japan,
with each other presently. In this module, ASEAN nations and Israel.
we shall seek to address these questions. • In 2017 the visit of Indian PM (Narendra
Modi) dispelled this notion by becoming
Rise and Growth of Israel the first PM to visit Israel and during
• Mahatma Gandhi was among the first this period, not only were the relations
global leaders to support the call for upgraded to a ‘Strategic Partnership’ but
a separate homeland for the Jewish also many critical agreements related
people. The Balfour Declaration had to agriculture, science and technology,
supported the creation of this homeland research and development, space which
by dividing the Palestinian territories. in totaled seven were signed.
• It was only in the year 1948 after the • Israeli PM Benjamin Netanyahu visited
end of World War 2 that this reality India in 2018 and agreements related
came into existence. The state of Israel to cyber security, film cooperation were
was established and was immediately signed.
attacked by its neighbours. It fought
Historical Obstacles between
bravely and defeated all of its neighbours
and successfully defended its territories. Bilateral Ties
Ever since, it has fought four wars and • Indian ‘vote bank’ politics: It was an
won all of it. unfortunate aspect of Indian politics that
• Both countries gained their independence stopped the realization of full potential
from the UK within months of each other, of ties between the two nations. The
but they headed in different directions ruling party in India was apprehensive of
103
losing its minority vote bank and hence Historical and Cultural
didn’t fully cultivate ties with Israel.
This was based on an illogical premise Similarities
that the minorities of India, particularly • The two nations belong to ancient
one community despised Israel and its civilizations. Christianity, Judaism and
actions in the state of Palestine. Islam have impacted both the nations
• Arab world issue: Another reason that and there have been regular interactions
prevented India from fully embracing between the two nations.
Israel remained the fear of earning the • Even as Jews were persecuted in Europe
wrath of the Arab world with whom India and other nations, it was in India where
had extensive ties on issues pertaining they found a home and prospered
to its energy security and diaspora links. without having to worry about their
This proved to be timid diplomacy as is safety and honour. India is also a popular
being seen presently. tourist destination for the Israeli youth.
Geographical Similarities
• The two nations mostly experience issues
related to water security and many of
the geographical features are similar.
For example, there is the Negev Desert in
Israel and the Thar Desert in India.
• India also has many dry climatic zones in
areas such as Bundelkhand, Deccan Trap
areas in Maharashtra, North Karnataka
and Tamil Nadu amongst others. This
necessitates cooperation in the areas of
food and water security between the two
nations.
INDIA AND ISRAEL ARE
• Availability of water and its quality
NATURAL ALLIES influences agricultural productivity
between the nations.
• Presently cooperation in Defence
and Agriculture are the main areas of
cooperation. And it is often said that this Intellectual Similarities
relationship is one between natural allies • India remains a hub for all IT and IT
and is irreversible. related services. Its expertise also lies
• It is natural to wonder as to what is in various knowledge sector tasks and
common between the world’s seventh innovation.
largest nation in terms of geographical • In recent times, manufacturing has picked
territory and second most populous up in sectors such as Pharma products
nation and a nation located on the and automobile amongst others. India
Mediterranean coast. is also carving out a niche for itself in
• What makes the existing partnership and Space Technology related activities. The
its future potential, a one that likes allies? development of cryogenic technology
has enabled the launching of satellites at
104
a cheaper cost. • In recent times, this defence cooperation

• Israel on the other hand is recognized has extended beyond the buyer-seller
as a global power in innovation and has relationship and has entered the area
some of the most successful scientists of joint-production and innovation in
and products in the world. defence technology.
• Many of its start-up’s are also successful • As of 2016, USD 600 Million was the
throughout the world and the two nations defence trade between the two nations.
can learn from each other in this regard. Israel has emerged as the third largest
supplier of defence hardware after
Russia and the US.
Geo-Political Similarities
• Some of the Israeli weapons acquired by
• Hostile neighbours have created India are the following:
problems for both the nations. Israel
has managed to bring peace and Unidentified Aerial Vehicles-
establish diplomatic relations with many Searcher and Heron. The Hermes
of its neighbours. However, the issue of 900 is manufactured in India in joint
terrorism continues to haunt the Israeli collaboration with an Indian company
security establishment. in Hyderabad.
• India is no stranger to terrorism especially Barak 8 Surface to Air Missile. This is
that related to state sponsored cross an advanced Missile.
border terrorism in the form of Pakistan Spike fourth generation anti-tank
state sponsored terrorism. missile. This is similar to India’s very
• Counter-terrorism and intelligence own Nag missiles.
sharing is one of the critical components Phalcon early warning system. This is
of this partnership. yet another advanced drone that can
inflict considerable damage on the
enemies.
PILLARS OF COOPERATION
Search Track and Guidance Report
Defence/Strategic Relations radar- Efforts are to fit this into INS
Kolkata and INS Shivalik ships.
• This is one of the main pillars of
• Further as part of the ‘Atma Nirbhar
Bharat Abhiyan’, the Government has
Surrounded and confronting day to day
recently liberalized rules pertaining to
hostilities in its neighbourhood, Israel has
FDI in the Defence sector and have now
emerged as a global leader in defence
permitted 74% FDI in it. This will benefit
technology.
the Israeli companies who will seek
• Israel has always supported India on greater access to Indian markets and
matters related to its defence and invest in India.
national security. At the peak of the
• Considering the threats posed by
Kargil war India approached Israel, which
terrorism, there exists a Joint Working
lent India the ‘Precision guided bombs’
Group on Terrorism. In recent times, the
that achieved its targets. Pakistan finally
two nations have increased cooperation
was chucked out of the areas that it had
in counter terrorism and intelligence
occupied.
sharing.
105
• The Islamic Terror groups consider India area of cooperation.

and Israel as common enemies and • Various agreements exist between the
have targeted both nations. In addition two countries. Israel has already set up
to threats posed by groups such as Al more than 25 India-Israel Centres of
Qaeda and the Islamic State (IS), both Excellence for Cooperation in Agriculture
nations also face the issue of cross in various states of India.
border terrorism. It is the Hamas Group
in Gaza and Pakistan State Sponsored • India also imports large amounts of
Terrorism that threaten Israel and India potash from Israel.
respectively. • India has gained in terms of methods
• As these threats increase, India can such as micro-irrigation, post-harvest
benefit from the expertise of the Israeli technology, horticulture, agricultural
security establishment including mechanization, nursery management,
MOSSAD, its intelligence agency. dairy farming, orchard farming and drip
irrigation amongst others.
• As far as the bilateral mechanism is
concerned, there exist four Working • As climate change poses a threat to
Groups on border management, internal the world and influences agricultural
security and public safety, police productivity and food systems, India will
modernization and capacity building, be one of the worst affected nations.
cybercrimes and other issues. Already the monsoon vagaries wreak
havoc in the Indian economy. India will
• The recently signed Abrahamic Accords need to continue cooperating with Israel
(between Israel, UAE and Bahrain - in the area of agriculture to mitigate the
mediated by the USA) too offer an effects of climate change.
opportunity for both India and Israel.
Because India always hesitated in
dealing with Israel due to fears over
Science and Technology
earning the wrath of the Arab World who Cooperation
are important as far as India’s energy • As the world continues to develop, it is
security and diaspora are concerned. in the area of Science and Technology
that the greatest number of jobs will be
Cooperation in Agriculture created and it will be in this sector that
• Most of the geographical area of Israel our lives will be influenced in.
consists of a desert and seas. This • Israel has emerged as a world leader
makes agricultural cultivation tough and in every aspect of technology like
threatens Israel’s food security. IoT, virtual offices, advancements in
• Israel has accepted this challenge and agriculture and health etc. India has also
continuously innovated in agricultural recently emerged as a leader in terms
technologies. Presently, they are world of innovation, especially bio technology,
leaders in water preservation, drought IT and space sectors. A collaboration
resistant seeds, GM Crops and drip between the two countries will be useful
irrigation methods amongst others. as we move forward.
• India has a lot to gain from this experience • The two countries already cooperate
and as a result agricultural technology in matters related to space technology.
cooperation has emerged as another key Israel has further funded Research and
106
Development projects worth USD 50 provided refuge to the persecuted Jewish

Million. population.
• Israel’s flexible export policy meets Indian • Also India has its own Jewish community.
demands for technological transfer. They have been given the minority status
Israeli technology is already being used in the states of Maharashtra and West
in various national projects, especially Bengal.
the National Mission on Clean Ganga. • There are over 85,000 Indian Jews of
• Both countries trying to establish an Indian origin staying in Israel.
India-Israel Cooperation Fund aimed • Recently both countries held Jerusalem-
at promoting innovations through Mumbai festival in Mumbai to promote
joint scientific and technological artistic and cultural ties between the two
collaborations. nations. This festival aimed to establish a
• As India builds a world that factor link between the cities of Jerusalem and
in various realities of the COVID-19 Mumbai and boost cooperation in the
pandemic, its cooperating with Israel will field of music, culinary art and dance.
be critical in achieving its objectives.
Education
Economic Cooperation • In recent years, several public and
• India is Israel’s 10th largest trading private Indian universities have entered
partner. The bilateral trade between the into academic agreements with Israel’s
two countries has increased from $200 educational institutions.
million to more than $4 billion (excluding • Israel has been offering post-doctoral
defence) in last 25 years. India is Israel’s scholarships to students from India and
third largest trading partner in Asia and China in all fields for three years.
seventh largest globally.
• India too offers scholarships to Israelis
• Recent years, trade diversified into every year and an equal number of
Telecom and IT, Pharma, Agriculture and scholarships are offered by Israel for
Homeland Security. 10-month programmes in specialised
• Over 300 Israeli companies have invested fields of study.
in India mostly in the renewable energy,
telecom, real estate, water technology,
R&D sectors.
• The Start- up sectors too are cooperating
and have a lot to learn from each other.
Israel today boasts of nearly 4,500 start-
ups and 140 incubators/accelerators. In a
recent study, NASSCOM and Accenture
estimated that cooperation with Indian
start-ups has the potential to generate
$5 billion within five years.
Cultural Relations
• India was one of the few nations which
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Related Concepts • Trade Disputes: There exist differences

between India and Israel over issues
related to technology transfer, end-user
• De-hyphenation of Relation: De-
agreements and a proposed free trade
hyphenation means delink two entities
agreement.
and consider them as individuals. By
this policy India’s relationship with
Israel would stand on its own merits, THE ROAD AHEAD
independent and separate from India’s
• Israel is a land of opportunities and
relationship with the Palestinians.
as the region embraces peace over
• Two- State Solution of Israel Palestine conflict, India can play a positive role as
Issue: It envisages an independent it becomes a non-permanent member of
State of Palestine alongside the State the UNSC in 2021.
of Israel west of Jordan River. It was
• The 21st century is a partnership between
proposed in 1937 on basis of Peel
India and Israel and this needs to be
Commission report but rejected by
further cultivated. India is Israel’s largest
Arabs.
client for arms, and in return, Israel gets
vocal support from the world’s largest
democracy, which significantly boosts
CHALLENGES its political and diplomatic leverage,
• Iran Issue: Iran has vowed to remove Israel especially considering over 30 countries
from the world map and it is building its of the UN still do not officially recognize
nuclear arsenal to harm Israel and its it.
interests. Israel and the Arab World are
• Now a days cyber threats threaten to
now cooperating to fight this Iranian
wreak havoc in the global financial
threat. India on the other hand enjoys
systems and modern infrastructure, the
good relations with Iran and considers
need for cooperation is stronger. Israeli
the nation critical to its national interests.
security products or homeland products
Hence, any anti-Iran stand cannot be
will be helpful in this regard.
supported by India.
• As India assumes the non-permanent
• Israel-China Relations: China is Israel’s
membership of the UNSC from 2021, it
largest trading partner in Asia, there
can work together with Israel and reform
are strong technology and investment
the multilateral systems that are lagging
linkages. Israel also hopes to participate
behind and some of which are blatantly
in the Belt and Road Initiative.
anti-Israel and anti-Semitists.
• Issue of Palestine: India has always
supported the ‘Two State’ solution that PREVIOUS YEAR QUESTIONS (PYQ)
envisages Israel and Palestine living
together side by side. In the past, India 1. India’s relations with Israel have, of
has been critical of Israel’s occupation of late, acquired a depth and diversity,
areas in the West Bank and its actions which cannot be rolled back.” Discuss.
that allegedly violated human rights. In (10) 2018
recent times, India has abstained from
voting against Israel in the UN Human
Rights Commission.
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CHAPTER - 17
INDIA AND GULF

COOPERATION COUNCIL (GCC)
INTRODUCTION
• The Gulf Cooperation Council (GCC) is the
is a political and economic alliance of six
countries in the Arabian Peninsula. The
GCC members are the most important
nations situated in the highly volatile
West Asian region. These six nations are
the following: Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia and the United Arab
Emirates.
• The six members of the GCC constitute
some of the most advanced economies
of the world and play a key role in India’s
national development.
• The grouping has seen supportive of India • The purpose behind the establishment of
and her aspirations. They have refused GCC is promoting cooperation in diverse
to toe the Pakistani line and condemn areas such as economics, security, social
India for its act of abrogating Article life and culture amongst these six nations,
370 with respect to the erstwhile state of the grouping has come a long way ever
Jammu and Kashmir and is continuously since.
enhancing its investments into India. • These six nations are proximately located
• Recently, India and GCC held a video together in the geographical sense and
conference to advance the ties between have similar levels of socio-economic
the two. development, political cultures and
religion. Their immediate goal in 1981
• In this module, let us understand a little bit was to shield themselves from the effects
more about the grouping, its issues and of the Iran-Iraq war.
challenges and its relations with India.
• The revenue from oil is being invested into
building cities with modern infrastructure,
GULF COOPERATION ensuring service sector growth in sectors
such as tourism, banking, insurance
COUNCIL (GCC) amongst others. Many of these nations
• The Gulf Cooperation Council was also provide a social security scheme for
established in 1981 by these six nations its citizens.
that have been mentioned with its
quarters at Riyadh (capital of Saudi
Arabia).
109
Iran-Iraq War development needs of nations such as

India, China and Japan and other nations
• The war between the two neighbours such as the US. Hence, it is important to
Iran and Iraq began in 1980 when the maintain good relations with the nations
latter invaded the former and it ended in this block.
in a stalemate in the year 1988 when
the UN brokered a ceasefire.
Challenges to GCC
• There were many reasons for Iraq to
invade Iran, mostly territorial disputes • In recent times, the changing global
and inter-nation river water dispute. scenario in the economic and security
Iraq wanted to seize control of the realms and dispute within the grouping
Khuzestan region of Iran which is has threatened the very existence of the
rich in energy resources and has a GCC.
predominantly Arab population like • Economic Slowdown: It is estimated that
those living in Iraq. oil forms almost 1/3 of the total GDP
• The Shatt-Al Arab river which forms of these nations and over ¾ of it to the
a riverine border between the two government revenues and exports. So
nations also became a bone of due to this sole dependence on crude oil
contention. export these nations were experiencing
a situation of economic trap due global
economic Slowdown.
Importance of GCC to the World
• Alternatives to Crude Oil: In recent times
• GCC nations together: the revenue from this source has taken
• Have 30% of the global proven oil a severe hit. Crude oil prices have fallen
reserves. Saudi Arabia leads the list and have gotten into the negative zone.
followed by Kuwait and the United Arab • This is due to the discovery of shale gas in
Emirates, the US and other parts and the transition
• Have a combined GDP of USD 1.6 Trillion to renewable energy sources. India for
and due to their economic prosperity, example hopes to generate 40% of
they are not only markets for various its total energy requirements through
products and services but also are renewable sources by 2030.
important investors across the world. • Hauled Tourism Activities: Following
Qatar for example has a sovereign fund the COVID-19 pandemic, tourism which
which invests USD 338 billion around the is also one of the mainstays of the
world and it is the 11th largest fund in the economies of this region has dried up.
world, According to many estimates, almost
• Host many of the overseas American 12.1 % of the UAE’s total GDP is from the
air bases/ military bases. The region tourism sector.
has many conflicts and terror groups • As a result, many nations in the region
surrounding the region have the potential are now desperately trying to diversify
to wreak havoc. their sources of national income. Ex:
• Any region with over 30% of proven Saudi Arabia has launched the Vision
reserves of oil will be important from the 2030 plan.
geo-political point of view. The region • Terrorism: There are various security
has the responsibility of satisfying the challenges in the region pertaining to
110
terrorism and other disputes. The threats

posed by militant groups and terrorist
INDIA AND THE GCC
organizations such as the Islamic State • The Gulf region has historical, political,
have endangered the region. economic, strategic and cultural
significance for India. The GCC countries
• Threat from Iran: As far as the GCC is are moving ahead with their economic
concerned, the foremost issue remains integration efforts and offer tremendous
the threats from Iran. The latter has potential for cooperation in trade,
territorial disputes with the UAE and investment, energy, manpower etc. India
insurgents backed by Iran have attacked has traditional and friendly relation with
oil facilities of Saudi ARAMCO in the past all GCC member states.
year. Iran and its various insurgent groups
have also tried to gain influence in Syria, • With increasing economic and
Yemen and Libya amongst others. It is international profile of India, the
also a critical controller of the Persian engagement with the Gulf is on the
Gulf region. increase. There has been intensification
of high-level interactions. Increasing
• Its nuclear programme is also being number of Agreements and MoUs has
perceived as a threat to this region. been signed in last few years in wide
• Religious Conflict: Then there is the ranging areas.
religious angle with this region which • India will have to closely watch these
follows Sunni Islam is against Iran which developments which will impact its
is Shia majority. diaspora, energy security and its overall
• Rivalry with Turkey: Another geo-political economic growth.
conflict that is brewing in the region
pertains to the misadventures of Turkey. Strategic/Defence Cooperation
They have tried to use terrorism as a
state policy in Syria and in the Nagorno- • Counter Terrorism: India and the GCC do
Karabakh conflict recently. The GCC cooperate on various issues pertaining
nations and Turkey are competing in to terrorism and in ushering in peace in
these places and the Libyan conflict. the region, India has largely kept out of
the conflicts in the region, considering its
• Qatar Issue: Qatar appears to be interests. Saudi Arabia and the UAE have
pursuing its independent path as far as especially enhanced their cooperation
many issues are concerned. Its stand with India in this regard.
with respect to Iran is friendly and it has
good relations with Turkey. • Policy of Non-Interference: The present
crisis with Iran or even the GCC’s conflict
• Qatar was in fact expelled from the block with Yemen, India has largely avoided
for the above-mentioned reasons and its commenting on it.
closeness to many of the terror groups in
the region. There was also the blockade • Duqm Port: Oman has permitted India to
of Qatar by the UAE, Saudi Arabia, use the Duqm Port, located close to the
Bahrain and Egypt. It is presently in force. Red Sea region.
• Hence, the block will face challenges • Defence Exercises: India presently has
in the upcoming days and will have to various joint exercises with the UAE,
prepare itself to deal with it effectively. Qatar, Oman and Saudi Arabia.
• Abrahamic accords: The Abrahamic
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accords between the two sides does work in.

provide an opportunity for India to • Humanitarian Aid: India did initiate
explore joint projects and one will have Operation Rahaat in Yemen to rescue its
to closely watch the developments diaspora in 2015.
Economic Relations Concerns and Way Forward

• Trade: India has over USD 100 Billion • With the COVID-19 situation bringing in
trade with these six nations in the region. a state of recession across the region,
The nations also are some of the most India will have to watch out and re-build
important investors in India. economies.
• Investment: As these nations also seek to • While the news of crude oil prices falling
diversify and build their economies, India should ideally be good for India with its
has emerged as a key partner for this. precarious Balance of Payment situation,
In the recent past, these nations have its impact on the overall economy of
invested in many infrastructure projects the region on which India’s fortunes are
in India in the space of renewable energy, linked should be a cause for concern.
affordable housing and refineries.
• India has pledged to use over 40% of
UAE and Saudi Arabia are building its total energy requirements through
a refinery in the Ratnagiri district of renewable sources by 2030 and this will
Maharashtra, reduce its dependence on this region. So
UAE is also participating in building India need to diversify the engagement
‘strategic oil reserves’ in India and with region.
Lastly, Qatar is constructing an LNG • India diaspora working in this region
terminal off the coast of Chennai. and the remittances play a critical role
• Oil and Energy Security: Nearly 40 % of in sustaining the economies of many
India’s crude oil import is met from GCC places in India. But in recent times, laws
countries. Gulf region plays a crucial such as the Nitaqat law in Saudi Arabia
role in our energy security and pace of and Kuwait’s efforts to scale down the
economic growth. India has successfully number of foreign workers will impact
bid for oil blocks in Qatar and Oman. India’s fortunes and the employment of
its diaspora. India will have to negotiate
• Joint Ventures: Efforts are ongoing to better deals for its diaspora.
set up joint ventures in downstream
petrochemicals, fertilizer and energy • The geo-political uncertainties are
intensive industries in the GCC countries being seen across the region following
and in India. Ex: OMIFCO fertilizer plant the COVID-19 pandemic. With Turkey
in Oman and the Essar steel plant in trying to overthrow these nations and
Qatar. competing for influence, India will want
to take a calculated risk.
Diaspora Links
• This region hosts nearly 5.5 million
Indians who are contributing immensely 1. The question of India’s Energy Security
to the economic development of both Constitutes the most important part
India and the countries they reside and of India’s economic progress. Analyse
112
India’s energy policy cooperation with

West Asian countries. (2017) 15
PROBABLE QUESTIONS
1. The biggest casualty of the COVID-19

triggered economic crisis in the GCC
region will be the Indian Diaspora.
Explain (10 marks)
113
CHAPTER - 18
INDIA-CENTRAL ASIA
RELATIONS
INTRODUCTION had ascribed the region around Eastern
Europe as the ‘heartland’.
• The Central Asian Republics consist
of five nations that stretch all the way • Currently, it is these Central Asian nations
from the Caspian Sea region to China in that have emerged important with the
the East and Russia to the north. These Chinese, Russians and the Americans
nations are the following: Turkmenistan, competing for influence.
Uzbekistan, Tajikistan, Kazakhstan and • China has made inroads into the region
Kyrgyzstan. through its One Belt One Road initiative.
• The region is important for India’s
development and it is in this regard that
India and the Central Asian Republics,
recently held the 2nd conference in
October 2020. During the conference,
India pledged USD 1 billion for projects
related to connectivity, energy, IT,
agriculture, health care, education
amongst others.
• India has also pledged to support certain
High impact community development
projects.
• This was the second conference which
was held in the virtual format following
• Kazakhstan is the eighth largest nation in the COVID-19 pandemic. The first such
terms of geographical area and India is conference was held in 2019 in the
the seventh largest. Samarkand region of Uzbekistan.
• These nations became independent
republics after the disintegration of the HISTORY AND IMPORTANCE
USSR in 1991.
• In recent times, due to their economic OF THIS REGION TO INDIA
prosperity, geographical location and • India’s relation with Central Asia has a
natural resources, they have emerged as long history. Ancient kingdoms like the
the ‘heartland of the world’. Mackinder, a Kushana Empire had territory in parts
geographer gave the ‘heartland theory’. of both regions. These historical and
He stressed that those who conquer the civilizational linkages have spilled over
‘heartland’ will conquer the world. He into many areas including religion and
114
culture. remains largely peaceful.

• But with the decline of the Ancient silk
route following the various invasions COOPERATION WITH
by the Mongols, India and Central Asia
could not cooperate on many issues. The CENTRAL ASIA
Mughals who ruled India from 1526-1857
The cooperation with these nations
came from the Samarkand region of primarily is focused on military matters,
Uzbekistan. energy cooperation, trade, and connectivity
• It was only after 1991 that India projects.
established diplomatic relations with
these nations. This was right after Military Cooperation
they became independent after the
• In recent times, the military cooperation
disintegration of the USSR.
has increased. However, it is still at a
• Despite granting diplomatic recognition nascent stage. Presently, the nations
since 1991, the cooperation has been are involved in military education,
rather tardy between India and these infrastructure development and training.
nations.
• It is with Tajikistan that India has the
• It was in 2012, when India launched its greatest quantum of cooperation in the
‘Look North’ policy which emphasized defence sector. India got involved after
on the 4 C’s- commerce, connectivity, the civil war there in 1992-97, when it saw
consular and community. that Pakistan was funding radical terror
• At present, the Central Asian region groups. In 2002, a defence agreement
is considered to be the part of India’s was signed and India set up its first
“extended neighborhood.” overseas military airbase at Ayni. It is still
in operation.
• India has also formulated its Connect
Central Asia Policy which aims to re- • Some of the joint exercises include:
connecting with the region which has Khanjar with Kyrgyzstan,
a long shared history with India. It is
KazInd with Kazakhstan and
a broad-based approach including
political, security, economic, and cultural Dustlik-Uzbekistan
connections. • In 2015, India signed memoranda of
• The growing prosperity of these nations understanding (MOUs) and agreements
will become an important factor in the related to defence and military technical
cooperation with India. India through cooperation with Kazakhstan, Kyrgyzstan,
its various connectivity projects will find and Turkmenistan.
new markets for its goods and services.
• These nations are presently also
Energy Cooperation
experiencing a demographic dividend • The only cooperation that is presently
and this will help Indian commerce. vibrant between India and these nations
• In the sphere of security, the growing is the cooperation with Kazakhstan.
threats of Islamic terrorism in Uzbekistan • Kazakhstan and India signed a Civil
will pose a threat to India and its interests Nuclear Agreement and India was
in Afghanistan. However, the larger region granted a waiver from the Nuclear
115
Suppliers Group (NSG). Ever since, they the cooperation between the
have been supplying about 7500 tonnes two countries. However, India has
of Uranium to India. In 2019, they have strengthened its connectivity with the
agreed to increase this to 10,000 tonnes. region through the International North-
• India and Uzbekistan also signed a deal South Transit Corridor Agreement.
for long-term supply of uranium. After This project is yet another connectivity
Kazakhstan, Uzbekistan will become the project involving India, Iran, the
second Central Asian country to supply Central Asia Republics, Russia and the
uranium to India. larger Eurasian region. In simple terms,
• One of the energy pipelines is the TAPI this project aims to connect Mumbai
pipeline (Turkmenistan- Afghanistan- in India to Moscow in Russia. It is
Pakistan and India). This pipeline is 1814 also called the Mumbai-Moscow link
kilometres long and has been dubbed the project.
peace pipeline. It is worth USD 10 billion. • Ashgabat Agreement:
However, instability in Afghanistan and It involves the construction and
Pakistan have delayed the project. This upgradation of shipping lanes,
project began in 2015. railway and roadways projects and air
connectivity between the nations.
Through this India’s goods and services
will find new markets and this should
be pursued vigorously.
• India has also signed the International
road transport convention (TIR), which
works under the auspices of the UN
Economic Commission for Europe.
• In conclusion, it can be stated that as a
non-permanent member of the UNSC
and as an aspiring permanent member,
Economic Cooperation India should play a greater role in the
region.
• Bilateral Trade:
The economic cooperation on matters
Organisational Cooperation:
of trade and investments has rather • SCO: In 2017, India became a member of
been very muted. the Shanghai Cooperation Organization
The trade between India and (SCO). This can enable India to play a
Kazakhstan has been around USD 851 greater role in the region. SCO with over
million. In the region, it is India’s largest 42% of the global population and 20%
trading partner. of its GDP will play a greater role in the
global affairs and India needs to ensure
Trade between India and Uzbekistan that this forum becomes a fulcrum of
remains at USD 328 million. cooperation with the members of the
• Connectivity: Central Asian republics and not yet
The lack of connectivity and another forum for slugfests with Pakistan,
bureaucratic lethargy has hampered a terror sponsoring state.
116
• Eurasian Economic Union (EEU): India is • India and Central Asia should create
negotiating a comprehensive economic innovative and technological highways
partnership agreement with the Eurasian such as creating a ‘Virtual Silk Route’.
Economic Union, which include Belarus, • Environment: Regarding climate
Kazakhstan, Russia, Armenia and change and disaster management
Kyrgyzstan. India should arrange some mock drills
• India has an active diaspora in the in these republics to spread awareness.
region and many Indian companies have • Expertise in Clean and Green India
invested in these nations and created initiatives should be shared with Central
jobs. This should be utilized by India. Asian neighbours.
Many Indian students’ study in these • Tourism: India should encourage tourism
nations and it has emerged as a popular with Central Asia. This should include the
destination for this purpose. discovery of Buddhist traits from India to
Central Asia such as Bukhara, a name
People-to-People Contact derived from a Buddhist Vihara.
The “people-to-people” contact has been a • Defence: In defence joint manufacturing,
defining feature of India’s Connect Central especially in the defence sector is highly
Asia Policy. Already, many students from required. Also, the India-Uzbekistan
Central Asia come to India for higher studies military medicine agreement should be
because India provides higher education at taken further with other Central Asian
marginal cost when compared to European republics as well.
and American universities. Many Indian
students also visit Central Asia for research • China Factor: The location of these
purposes. countries geographically makes them a
bridge between different regions of Asia
and between Europe and Asia. Also the
WAYS TO ENHANCE INDIA- cooperation with these countries will
help in countering China and its OBOR
CENTRAL ASIA BILATERAL initiative.
COOPERATION PREVIOUS YEAR QUESTIONS (PYQ)
• India-Central Asia Forum Summit: India
should take the initiative to set up an 1. A number of outside powers have
India-Central Asia Forum Summit on the entrenched themselves in Central
lines of the India-Africa Forum Summit to Asia, which is a zone of interest to
discuss issues of mutual concern and to India. Discuss the implications, in this
come up with concrete suggestions. context, of India’s joining the Ashgabat
• Economic: Central Asia is a huge Agreement, 2018. (10) 2018
consumer market for a range of goods
and services, which can be provided PROBABLE QUESTIONS
by India including IT services, tourism,
1. In the context of international relations
tea, pharmaceuticals etc. India should
of India, explain the geo-strategic
promote exports of software to Central
importance of Central Asia.
Asia using Uzbekistan as a hub. This
would also help India access Russian 2. Explain the role of Shanghai
markets. Cooperation Organization in India-
Central Asia relations.
117
Unit - 4
India and Global Powers
19. Indo-US
20. Indo-Russian
21. India-China Relations
22. India-Germany
23. India-Britain
24. EU and India-EU
25. India-France
26. India-Japan
27. India-South Korea
118
CHAPTER - 19
INDO-US RELATIONS
INTRODUCTION the two nations found themselves on

the opposite spectrum of most foreign
• The fact that the 21st century is a policy decisions. The US actively tried
partnership between the world’s oldest influencing India to join its camp during
and largest democracy is a foregone the ‘Cold war’. India steadfastly refused
conclusion. This manifests itself in to join any of the camps and re-enforced
many ways such as frequent high-level its policy of ‘Non-Aligned Movement’.
exchanges, enhanced cooperation and By doing so, it enforced its ‘Strategic
the evolving nature of the relationship. Autonomy’ and continues in doing so,
• Common values and converging interests even in the present times.
unite the two nations. • India paid a heavy price for this when its
• It was in the year 2005 that the arch-rival Pakistan was supported by the
two countries signed the ‘Strategic US, during the war of 1971 and even on
Partnership’ agreement. It took another the issue of Jammu and Kashmir at the
15 years for the two nations to sign United Nations Security Council (UNSC).
the ‘Comprehensive Global Strategic When massive famines hit India, its
Partnership’ partnership in 2020. request for food aid (especially Wheat)
was ignored by the US. The latter who
• However, was this partnership always
sought to entrap nations into its camp
a smooth ride down the Potomac or
using the PL-480 law.1
was it a turbulent journey down the
Brahmaputra? Also, is the current • Finally, a trip to the US by Prime
partnership only a smooth ride ahead or Minister Rajiv Gandhi in 1987 led to the
does it have its own share of issues and normalization of ties.
challenges? • The disintegration of the USSR in the
• We shall explore some of these concepts year 1991 further led to consolidation
in this module of ours. of India’s relations with the US and its
other allies such as Japan, Australia and
Israel. The matter didn’t end here. Many
HISTORICAL BACKGROUND Indian organizations such as ISRO were
• The US led by President Harry S Truman sanctioned by the US administration
enthusiastically supported India’s cause and India’s peaceful nuclear programme
for independence and even prevailed too was heavily sanctioned. Finally in
upon his British allies including Prime 2006, the two countries cemented their
Minister Clement Attlee who finally yielded partnership with the famous Indo-US
to the prevailing situation in the Indian nuclear deal.
subcontinent.
• India became independent on August 1 law (this law provided for grant of financial, food
15, 1947. However, post-independence, and military aid to nations provided the recipient
joins the US in its fight against the USSR).
119
• Ever since, the relations have been on an peace and freedom of navigation in the
upswing and in recent times, it has been high seas. The aggressive activities of
characterized by high level exchanges China in the region has prompted both
including PM Narendra Modi’s visit to nations to unveil a common ‘Indo-Pacific’
the US in September 2019 and President policy which seeks to build a region that
Trump’s visit to India in February 2020. The is ‘open’ and ‘inclusive’.
latter visit was special on many counts. • The two nations are part of various
It was the first standalone visit of a US initiatives such as QUAD, the Malabar
President to India and the two countries exercises and the Blue Dot Network
signed certain important agreements. covering the region.
• As far as the Bilateral Relations are • However, India is reluctant to join any
concerned, there are more than 50 camps, even if it means that it is anti-
bilateral mechanisms including inter- Chinese in nature. The External Affairs
governmental dialogue that support this Minister recently clarified that India will
relationship. Let us now explore some of never join any camps. This could be either
the important facets of this relationship a reiteration of its ‘strategic autonomy’
and then look at certain challenges and or a real policy decision to not counter
irritants that threaten to rock it. aggressive Chinese actions.
• USA is concerned with this reluctance on
STRATEGIC PARTNERSHIP the part of India which seeks to have its
• To begin with, the US is one of the few feet on both sides of the spectrum, despite
countries with whom India has signed a ‘war like’ situation on the Chinese front
the Comprehensive Global Strategic and the latter’s attempts to harm India’s
Partnership Agreement and has a 2+2 interest at every available opportunity.
institutional dialogue mechanism (this • In such circumstances, India will have to
mechanism involves an institutionalized accept the realities of a belligerent China
dialogue between the External Affairs that has no regard for India’s sensitivities.
and Defence Ministers of both the nations. • Finally, it can be said that a half-hearted
Presently, India has a 2+2 strategic attempt by India to join many of these
dialogue with all QUAD nations- Japan alliances will in fact harm its reputation
and Australia and US). and its national interests. India is
• This strategic partnership provides a expected to rise to the occasion and
framework for the two nations to not have a reassuring presence in the Indo-
only enhance their partnership across Pacific region and stand up to China, just
various sectors but also in the ‘strategic as it did during the Dokhlam standoff
domain’. The two countries have almost in 2017. Bhutan was assured of India’s
a common vision for global peace and commitments to protect its sovereignty
prosperity. in the face of brutal Chinese aggression.
Points of Convergence
Indo-Pacific
• As far as the Indo-Pacific region is
concerned, the two nations support
120
Some related information
Indo-Pacific Region: The region denotes nations in the Eastern Indian Ocean and Western Pacific
nations. Most of these nations lie in a region which is of immense significance as far as maritime
resources, shipping routes and security is concerned. Some of the significant players in the region
include India, US, ASEAN nations, Australia, China, some Pacific islands and others.
P icture C redit : R esearch G ate . N et
• QUAD: Its origins lay in the 2004-05 Tsunami that devastated large parts of South-East and
South Asia. India was quick to provide humanitarian assistance and connected the two regions.
• Former Japanese Prime Minister Shinzo Abe called for a dialogue between India, Japan, US and
Australia in the year 2007. Finally, the group materialized in the year 2017. Recently, the Foreign
Ministers of these nations met in Tokyo and reiterated a common vision for the Indo-Pacific
region.
• India’s policy on Indo-Pacific: India considers this region as critical to its achievement of a $
5 Trillion economy by 2025. It seeks to embrace its vision of Sagar as well as Sagarmala to
achieve this. Hence, free and safe passage of all vessels is critical to achieve this.
• India’s priorities were outlined at the Shangri La Dialogue. India stated that it believes in Samvad
(Dialogue), Samaan (Respect), Shanti (Peace), Sahyog (Cooperation) and Samriddhi (Prosperity).
• Malabar Exercises: These naval exercises are conducted off the coast of Bay of Bengal. What
began in 2007 is now expanding. The US, India and Japan are the three nations involved in
these exercises. Australia too has evinced interest.
• Blue Dot Network: It is a relatively new concept. It was launched in the year 2019 on the side-
lines of the ASEAN summit in Bangkok. It is an initiative led by the US and also contains Japan
and Australia. It seeks to encourage sustainable financing of projects in the world. It is seen to
be against China’s One Belt One Road project which is regarded to be an example of debt trap
diplomacy by its critics. US has invited India to join this initiative and India is actively considering
Terrorism
• The issue of terrorism is important to both
the nations. Both have been victims of
this dreaded global phenomenon (26/11
121
and 9/11 attacks). There exists a Joint • During the first Sino-Indian informal
Mechanism between the two countries summit in 2018 which took place in
to take forward cooperation in this field. Wuhan, India and China agreed to
• There is also an established Homeland execute joint projects in Afghanistan.
Security Dialogue between the India is already executing joint projects
Department of Homeland Security and with Russia (Roopar Nuclear Power Plant
the Union Home Ministry. Project in Bangladesh) and Japan (The
Colombo Port Terminal Project in Sri
• Intelligence sharing between the two Lanka).
nations also takes place and both nations
have agreed to work towards eliminating • In this regard, India and the US can open
drug related crimes in the US and India. up a new area of cooperation and execute
joint projects of mutual importance in
• However, the US’s ‘soft approach’ Afghanistan, African continent and other
towards Pakistan and Pakistan state nations.
sponsored terrorism is preventing any
sort of meaningful cooperation with the • The US also supports India’s Permanent
US. Membership at the UNSC and other
international bodies such as the Nuclear
• The US is continuing to support India’s Suppliers Group (NSG). Recently, the US
demands to blacklist individuals and President also stated that India will be
organizations involved in activities of invited to join the G-7 in its expanded
terror against India but steadfastly form.
refuse to prevail upon Pakistan to take
any sort of tangible action including
Points of Divergence
the conducting of fair trial against even
convicted terrorists such as the chief of Afghan Peace Process
JUD Hafeez Mohammad Saeed or even
Maulana Masood Azhar, involved in • In the immediate neighbourhood, the
numerous terror attacks in India including Afghan-Pak region is active. The stability
the Pulwama attack, attack on the Indian and security of the region has a direct
parliament and many more incidents. bearing on India’s growth and national
security. It is in this regard that the US
• The US too is yet to extradite David and India seem to be having divergent
Headley, one of the convicts in the 26/11 views.
Mumbai attacks.
• The recently signed agreement between
• On the whole, we can conclude by saying the Taliban and the US (Afghan Peace
that US needs to stop its half-hearted Process) has added to India’s insecurity
cooperation on the issue of terrorism with and threatens its interest in Afghanistan.
India and shed its policy of appeasement
of Pakistan, a terror sponsoring state. • India has not been in favour of negotiating
with the Taliban and other non-state
Multilateral Cooperation actors.
• An agreement between the US Agency • India has time and again stated that
for International Development (USAID) the Afghan Peace Process needs to be
and India’s Development Partnership ‘Afghan led, Afghan owned’ and there
Agency was signed to explore joint can be absolutely no interference from
projects in third nations. any other nation.
122
• While the US intends to withdraw all year 2018. India was again asked to
its troops from the region by April 2021 eliminate oil imports. India’s relations
without considering its impact on India with Iran have considerably suffered
and other allies, India is clearly concerned due to this policy of the US. It is not just
about its interests in the nation. oil imports but also other critical transit
• India is one of the highest civil aid projects that are struck including the
donors to Afghanistan and has executed Chabahar Port Development Project
many important projects and continues and the Chabahar-Zahedan railway link
to be a friend of the Afghan nation and project.
its people. Pakistan, on the other hand • India was provided a waiver in a process
had only wreaked havoc in a nation it called the ‘Significant Reduction
considers part of its ‘strategic depth’. Exceptions’ which ended in 2019.
• The Afghan Taliban is a group that had • Now, India faces the risk of attracting US
ruled Afghanistan from 1996-2001 and sanctions under the dreaded Countering
imposed a puritarian version of Islam American Adversaries Through
which forbid women from availing Sanctions Act (CAATSA).
educational opportunities, preached • The importance of Iran to India’s geo-
religious intolerance and also sheltered political interests and its cherished
anti-Indian terror groups. historical and civilizational ties can never
• This very group has been supported be over emphasized.
and nurtured by the infamous Inter- • While India reduced its oil imports from
Service Intelligence (ISI) and the Pakistan Iran, China moved in and signed an
government. investment deal worth more than $ 400
• In this regard, the US has reached an billion over a period of 25 years. India is
agreement with Taliban and as a result clearly losing out on its strategic interests.
taken Pakistan’s help. In this context, • It is in this context that the US is seen
the US is seen to be ‘soft’ on Pakistan to be restricting India’s pursuance of its
and Pakistan state sponsored terrorism legitimate interests.
against India.
• Another question that has to be asked
• It appears that the US electoral interests here is if the US is not sensitive to India’s
have overshadowed its ‘strategic interests vis a vis Pakistan, Afghanistan
partnership’ with India. and Russia, why should India reciprocate
Relations with Iran in a similar manner with respect to Iran?
• In the extended neighbourhood, the • While the fear of CAATSA looms large,
agreement between Iran and the P 5+1 India is no stranger to sanctions. In the
nations including the US came as a sigh past, as late as 1998, the Bill Clinton
of relief to India in 2015. Prior to this, Iran Administration sanctioned India for its
was slapped with sanctions and India pursuance of a peaceful nuclear program.
was pressured to reduce or eliminate its
oil imports from Iran. DEFENCE RELATIONSHIP
• However, this was short lived as US • In the past decade, the transformation
President Trump ended the deal and of the ties can be majorly attributed to
slapped Iran with fresh sanctions in the this aspect of the relationship. There is a
123
Joint Committee on Defence and many Some related information

other sub-groups involving other aspects
of defence technology. • GSOMIA: It paved the way for greater
technology cooperation in the military
• India has been recognized as a ‘Major sector. It allows the sharing of classified
Defence Partner’ and has also been information from the U.S. government
recognized as a ‘Strategic Trade and American companies with the
Authority Tier 1’. The latter grants India Government of India and Defense
the status of a ‘Non-NATO ally’. Public Sector Undertakings (DPSU) but
• Since 2008, India has purchased defence not with Indian private companies.
goods worth $ 18 Billion. • LEMOA: It is an agreement that aims
• India and the US have also signed three to establish a functional military
out of the four foundational defence relationship and permit the militaries of
agreements. each country to replenish their supplies
from each other’s bases. For example:
• General Security Of Military Information
the US Navy proceeding to the South
Agreement (GSOMIA) was signed in
China Sea could stop over at Andaman
2002, Logistics Exchange Memorandum
and Nicobar Islands and reload their
of Agreement (LEMOA) was signed in
supplies.
2016, the Communications Compatibility
and Security Agreement (COMCASA) • COMCASA: It is the India specific
was signed in 2018 and Both countries version of CISMOA (Communications
reviewed the progress of Industrial and Information Security Memorandum
Security Annex (ISA) and the Basic of Agreement). Valid for 10 years,
Exchange and Cooperation Agreement COMCASA aims to provide a legal
for Geo-spatial Cooperation (BECA) framework for the transfer of highly
agreements during the recent ‘2+2’ sensitive communication security
intercession meeting of 2019. equipment from the US to India
that will streamline and facilitate
interoperability between their armed
forces.
• Industrial Security Annex: This will
enable various US firms such as Boeing
to start their manufacturing facilities in
India. It will enable India to achieve its
‘Make in India’ goal and create more job
opportunities while at the same time; it
will also lead to transfer of technology
from the US to India.
• BECA: It is last of the four foundational
agreements. It is yet to be signed
• During the recent visit of President
Trump to India, the following agreements
related to the purchase of defence items
were signed:
24 sea hawk (MH-60) Romeo anti-
124
submarine warfare naval helicopters • While the US is India’s largest export

valued at $ 2.6 Billion destination, India is only the 13th largest
6 AH 64-E Apache Helicopters valued for the US due to “restrictive market
at $ 800 Million and access barriers”. In 2018, the total bilateral
trade between the two countries stood at
An agreement for the supply of $ 87.95 billion.
Integrated Air Defence System
(NASAMS 2) was also signed. This is • Total US investments into India for the
akin to the S-400 deal with Russia. year 2019 stood at $ 45.88 billion.
• Finally, the two nations are also involved

Challenges
in many joint exercises such as the Yudh
Abhyas, Malabar Naval exercises and the • The challenge has always been the
Cope India exercises (between USAF and issuance of visas and more specifically
IAF) (Japan has now been invited to join the H1B visas and other related categories
this). including the H4 visas.
• In the year 2018, more than 74% of the
Issues total H1B visa applications were those
• One of the major issues as far as the of Indians. The US Administration’s ‘Buy
defence agreements are concerned is American Hire American’ order has
the continuous US interference and lack massively impacted this category.2
of operational freedom. • In the year 2019, the US ended benefits
• The US Congress places strict restrictions due to India worth $ 5.6 billion under
on the use of these goods and services. the Generalized System of Preferences
There are also concerns about the (GSP).3
compatibility of various communication • The withdrawal of benefits under the GSP
devices and aircraft systems. by the US was seen as petty by many
• Lest we forget that over 64% of our observers.
defence imports are from Russia and • The two nations hope to increase the
in the past this number was as high as total bilateral trade to $ 500 billion by
84%. Hence, most of the technologies the year 2030.
are Russian made. • The US sees certain Indian actions as
• There are also concerns related to protectionist and justifies their withdrawal
snooping and data piracy which needs of the GSP benefits to India.
to be tackled. • To safeguard its farmers, India has
• The US remains the second largest continued to maintain high tariffs and
supplier of defence goods in the present 2 H1B visas are for those individuals who are
times. on a short-term assignment and visit the US to
generally handle and finish a particular project.
The US Government has extended the ban on fresh
ECONOMIC COOPERATION processing of these applications till December 2020
due to the ongoing COVID-19 pandemic.
• This remains one of the challenging
2 GSP or Generalized System of Preferences is under
areas in the relationship between the two the mandate of the WTO. It enables developing
countries. Protectionism seeks to wreak countries to export goods and services upto a certain
havoc, in otherwise smooth relations. amount to the developed nations without any tariffs.
125
continues to not permit the import of billion. The US has emerged as the 6th
many agricultural items such as dairy largest supplier of oil to India.
products. • The two countries are exploring joint
• India also continues to protect its exploration projects and also import of
automobile sector. shale gas from the US.
• Other issues of economic concern include • The Indo-US Nuclear deal continues
the RBI order to store all payment related to guide the two nations in the field of
data in a server located in India and nuclear energy. The US has proposed to
India’s efforts to promote its own digital build 6 civilian nuclear reactors in India.
payment system called BHIM and the • During his visit PM held a meeting with
RuPay debit cards. Companies such as the top honchos of various energy
Master Card have raised this issue with related companies and many companies
the US Department of Commerce as evinced their interest to invest in India.
a move which is seen to be against the
competition laws of India. • As far as cooperation in the area of clean
energy is concerned, the US and the
• The US also has an issue with India’s Ministry of New and Renewable Energy
intellectual property rights (IPR) laws launched the Pacesetter fund in 2015
and has continued to place India under to fund various off grid clean energy
the ‘Priority watch list’ in the Special 301 projects. Recently, the second round of
report prepared by the US Department funding has begun.
of Commerce.
• The USAID, an agreement to fund
• India continues to subsidize various renewable energy projects worth $ 600
medical products and devices such as million is signed between both.
knee caps and stents. This is seen as a
violation of IPR laws.
• The Indian Patent Act also permits INDIAN DIASPORA IN THE US
the government to issue ‘compulsory • Outside the West Asian region, the US
licensing’ of registered patents in ‘public hosts the most number of members of
interests’. The US is specifically concerned the Indian diaspora.
about this aspect and various US based • It is estimated that a little over 4 million
pharma companies have raised this issue individuals of Indian origin and Indian
with the Department of Commerce. citizens’ study, work and carry out
business in the US.
ENERGY COOPERATION • Amongst the Asians, India stands at the
• Despite a lull in the economic and second position in terms of the number
strategic aspects of the relationship, this of individuals who are residents of the
area has emerged as a new front for US. The first position has been occupied
cooperation. by the Chinese.
• Recognizing the importance of it, the two • The Indian diaspora has made a name
nations instituted the ‘Energy Dialogue’ for themselves in the US and across
Partnership in the year 2018. various fields and professions.
• In recent years, India has imported • The US has also played a critical role, as
Liquified Natural Gas (LNG) worth $ 6.7 mentioned before in the Indian nationalist
126
movement. • Recently, the Indo-US Science and

• Houston and San Francisco have hosted Technology forum has launched the
Indian revolutionaries including the ‘Lion virtual networks for scientists and
of Punjab’, Lala Lajpat Rai. researchers to share their findings
and collaborate to fight the COVID-19
• Many Indian farmers continue to enrich pandemic.
the farms of California.
• Top honchos of various tech companies Environment and Ecology
and Multinational Corporations such as
• In the field of environment, the Forest Plus
Master Card, Google, Microsoft amongst
2.0 program was launched in September
others are headed by members of the
2019 for a period of five years. This seeks
Indian diaspora.
to restore ecosystems around the country.
• NASA has honoured Kalpana Chawla
and Sir CV Raman and Chandrashekar Some Related Information
Subramanian. The Forest Plus 1.0 program was
• In recent times, many Governors and launched in 2012 and came to an end in
Senators and other influential bureaucrats 2017. The following are its achievements:
and diplomats of Indian origin have • 1,20,000 hectares of land under
occupied high offices. In the upcoming improved management in various
Presidential elections, the Democratic states across the country,
Party has announced Joe Biden as their • Inclusive economic activity worth $12
candidate who in turn has announced million supporting forest communities
the Chennai born Kamala Harris as the and other traditional dwellers,
Vice-Presidential candidate.
• Measurable benefits accrued to
800,000 households and
SCIENCE AND • Three incentive mechanisms (strategy,
capacity and support) demonstrated
TECHNOLOGY in managing landscapes for ecosystem
COOPERATION services were achieved.
COVID-19 Cooperation Space Technology Cooperation

• Various aspects can be considered under • In other developments, NAVIC or the
this broad category of cooperation. India Indian Regional Navigational Satellite
was the only nation to provide the anti- Systems (IRNSS) was granted the status
malarial drug ‘Hydroxychloroquine’, of an ally to the US Global Positioning
considered to be a drug against the System (GPS).
Sars-COV-2 virus, when the US requested • In the area of space technology, ISRO
India. This was provided to over 100 and NASA have proposed the launching
nations around the world including the of the Synthetic Aperture Radar Satellite
US. in the year 2022.
• The US reciprocated by dispatching more • India has also granted $ 250 million
than 100 ventilators to India in the month towards the development of the 30 Metre
of June. telescope at the Mauna Kea in Hawaii.
127
Recent Agreements Signed Economic issues related to the

withdrawal of GSP status,
• The Young Innovators Internship
Program has been launched during the India’s upcoming Data Protection Law
strategic 2+2 Dialogue in December 2019. and RBI’s order on storage of financial
data in India,
• US agreed to join the Coalition for
Disaster Resilient Infrastructure with its Promotion of Indian payment systems
headquarters in New Delhi, such as BHIM as opposed to Master
Card,
• A space situational awareness agreement
to effectively coordinate the removal of H1B visa issue and other issues related
space debris was signed, to the movement of natural persons,
• Agreement on water management US’s reluctance to crackdown on

Pakistan state sponsored terrorism,
• Agreement on Mental Health
Divergence as far as the Afghan peace
• Agreement on access to safe, affordable process is concerned and
and high-quality medicines and
The fear of CAATSA as far as oil imports
• Agreement on Science and Technology and connectivity projects with Iran are
(previous agreement which was signed in concerned and the S-400 Triumf deal
2005 had expired). with Russia is concerned.
US interference in issues related to
ISSUES AND CHALLENGES Indian sovereignty such as abrogation
• Indo-US partnership is definitely the of Article 370 and the situation in the
partnership of the 21st century. However, Union Territory of Jammu and Kashmir,
some massive irritants do exist between legislations such as the Citizenship
the two nations. While some have been Amendment Act (CAA) and the issue
mentioned in this module during the of Delhi riots.
discussion on various facets of this In recent times, the US has also raised
relationship, others shall be discussed objections to India’s amendment of
here along with recalling those already the Foreign Contributions Regulation
mentioned too. Act (FCRA).
• While it is true that the relationship has
been prospering since 2005 and has the Conclusion
potential to grow further in the coming India-US relation remains critical for the
years, there was a lull in ties, often these shaping of world order in the 21st century. In
issues and challenges threatened to undo order to realise the full potential of relations,
the work done previously. However, high the two governments must now strive to
level contact between the leadership of complete the unfinished agreements and set
the two countries and growing common the course for a Comprehensive Strategic
interests has ensured that partial Global Partnership. This relationship needs
resolving of this issue. to be continuously nurtured with various out
of box diplomatic solutions for it to prosper
• In this regard, we can conclude the
fully.
following as major irritants between the
two nations:
128
UPSC PREVIOUS YEAR QUESTIONS
1. In what ways would the ongoing US-

Iran Nuclear Pact Controversy affect
the national interest of India? How
should India respond to its situation?
(15) 2018
2. What introduces friction into the ties
between India and the United States
is that Washington is still unable to
find for India a position in its global
strategy, which would satisfy India’s
national self-esteem and ambitions’.
Explain with suitable examples. (15
Marks) (2019)
PROBABLE QUESTIONS
1. The US needs to stop treating India as a

‘third world’ country and start treating
it as an equal partner. Give examples of
brazen US attempts to influence India’s
policy decisions to substantiate.
2. The nascent energy cooperation
between India and the US holds the key
to stability of the overall relationship.
Explain how this area of cooperation
can be further enhanced.
3. The US is critical in India’s efforts in
taming the dragon. Explain
129
CHAPTER - 20
INDO-RUSSIAN RELATIONS
INTRODUCTION movement against the colonialists.

Russia’s defeat in the hands of Japan
• Relations between India and Russia in the Russo-Japanese war of 1904 also
are rooted in history, mutual trust and inspired the Extremist sections of the INC.
mutually beneficial cooperation. This is a
strategic partnership that has withstood • After India gained independence, due
the test of time, and which enjoys the to India’s commitment to the principles
support of the people of both countries. of Non-Aligned Movement (NAM) and
its refusal to side with the USSR and get
• Diplomatic relations between India and entangled in the politics of the cold war,
Russia began even before India achieved the relationship between India and the
independence. During India’s second Five USSR remained cold. This was during the
Year Plan, of the sixteen heavy industry presidentship of Joseph Stalin.
projects set up, eight were initiated with
the help of the Soviet Union. • After Stalin’s death in 1953, the harsh
winter of the Siberian region receded
• A renewed effort to strengthen the and the relationship between the two
bilateral relationship was made at countries started to get warmer. India
the beginning of the presidency of after independence adopted a system of
Vladimir Putin in 2000, when the 5year economic planning, similar to that
annual summits between India and of the USSR.
Russia were instituted.
• The USSR supported India in its
development. Economic, technological,
HISTORICAL TIES scientific, military and nuclear aid was
• Historically, many Indian kings had given to India. India was also supported at
reached out to Russia. Tipu Sultan, the the various international institutions like
ruler of the Mysore kingdom had sent his the UN Security council. All resolutions
Ambassadors to many countries, Russia pertaining to the dispute of Jammu and
being one of them. Kashmir were vetoed by the USSR.
• During the freedom struggle, the Russian • The dissent in Hungary during 1956,
revolution of 1917 inspired the leaders of evoked a strong response from the
the extremist section of the INC and the USSR which crushed the protests. India
various revolutionaries. The communist condemned this and for a brief while, it
ideology seeped into the nationalist spoiled the relationship between the two
movement around the same time that countries.
the communist international met at • It was also under USSR pressure that the
Tashkent in 1924. then PM of India, Lal Bahadur Shastri
• Vladimir Lenin had expressed his full negotiated a peace deal with Pakistan
support for the Indian nationalist and ended the war by signing the
130
Tashkent Agreement of 1966. India. It has effectively used its VETO

• In 1971, the two sides signed the Treaty powers in the UNSC to protect India from
of peace, friendship and cooperation international censure on the Jammu and
for a period of 20 years. It strengthened Kashmir dispute. It has also extended
the existing cooperation mechanism its whole hearted support to India for a
between the two countries. permanent seat of the UNSC. India has
also refused to condemn or participate in
• The USSR disintegrated in 1991 and ever leveling any sanctions against Russia for
since, the two nations have moved on the its actions in Syria, Georgia and Ukraine.
nature of relations have changed.
• The Government-to-Government
ties between the two countries are MILITARY AND STRATEGIC
carried out through the India- Russia
Inter Governmental commission. The
RELATIONS
commission is broadly divided into two • Both the sides are involved not only in
groups. The first group is responsible for the sale and purchase of weapons but
furthering ties in the economic, scientific, also joint research and development
political, technological and cultural fields (R & D), joint production, leasing and
whereas the second group is exclusively hiring, training, joint exercises and
dedicated to further cooperation in the service to service contacts are regularly
field of military technology. maintained. Following are the joint
projects undertaken:
• India and Russia signed a Strategic
Partnership Agreement in the year BRAHMOS cruise missile program
2000. This was subsequently upgraded INS Vikramaditya Aircraft carrier
to a Special and Privileged Strategic
5th generation fighter jet
Partnership in the year 2010 when Putin
paid a visit to Delhi. ILYUSHIN-HAL transport aircraft
KAMOV 226 T light utility helicopters
POLITICAL RELATIONS Four state of art missile stealth frigates
• Annual Summit meeting between the • India has purchased/leased several
Prime Minister of India and the President military hardware in recent times from
of the Russian Federation is the highest Russia. Some of them are the following:
institutionalized dialogue mechanism USD 900 million upgradation of MIG-
under the Strategic Partnership between 29’S.
India and Russia.
T-90 Bhishma tanks program
• There are regular high-level interactions
between the two countries. Two Inter Akula class nuclear submarine-the
Governmental Commissions - one on first one’s lease ends in the year 2021.
Trade, Economic, Scientific, Technological Recently the two sides agreed to lease
and Cultural Cooperation (IRIGC-TEC), the second one which should arrive in
co-chaired by the External Affairs the Indian waters by 2020.
Minister (EAM) and the Russian Deputy The Fakhor air base in Tajikistan is
Prime Minister. jointly operated between India and
• Russia has been a pillar of support to Russia.
131
S-400 Triumpf Air Defence system of rail traffic plying between the cities of
• During the recent visit of Defence Nagpur and Hyderabad.
Minister Rajnath Singh, the two nations • An investment fund of $1 billion will be set
have agreed to speed up the process up between the National Infrastructure
of delivery of certain defence items Investment fund of India and the Russian
including 20 MIG-21 fighter jets. Direct Investment fund.
• The Joint Military Exercise between the • The Chennai- Vladivostok shipping lane
two countries is known as Indira. project hopes to firm up an alternate sea
• The two countries also hold exchanges transport route between the two nations
and training exercises between their and also connect the far east region of
armed forces annually. The Inter- Russia.
Governmental Commission and its • India, Russia and other neighbouring
Working Groups and Sub-Groups review countries are engaged in efforts to
defence cooperation between the two operationalize the International North-
countries. South Transport Corridor which promises
to propel connectivity and trade relations
between the two countries.
ECONOMIC RELATIONS
• The bilateral trade ties between the two
sides excluding the defence purchases
stood at USD 10 billion in the year 2019.
Both sides have agreed to raise this to
USD 30 billion by the year 2030.
• In terms of volume, the present figures do
not reflect the strength of the relationship
or the potential of economies, which
is immense. Realising this, both side
leadership has set a target of total trade
in goods and services of US$ 30 billion
each way by 2025. About International North-South
• Both sides are also making progress Transport Corridor
towards achieving the target of mutual • The INSTC is a multi-mode network
investment of US$ 15 billion each way by of ship, rail and road transport links
the year 2025. between India, Iran,
• Russia has extended its wholehearted • Afghanistan, Armenia, Azerbaijan,
support to the PM’s flagship projects Russia, parts of Central Asia and
like ‘Make in India’ and the smart cities Europe.
project. Russia has agreed to support • It will provide Indian business entities,
the building of smart cities in the state of access to untapped markets in the
Andhra Pradesh and Haryana. Transport Eurasian region.
logistics will be developed at these places
• The northern point of this project
too.
remains the Russian capital of Moscow
• Russia has also agreed to assist the and the Southern end in Mumbai.
Indian Railways in improving the speed
132
ENERGY/NUCLEAR in cooperation on GLONASS and other

space applications.
COOPERATION • The Gaganyan Project, India’s first
• ONGC VIDESH and Rosnet have an indigenous Manned Space mission which
already existing agreement to explore is being executed by ISRO is being done
the Sakhalin 3 and 4 gas fields in eastern in collaboration with Russia.
Russia. In the past few months, Indian
companies have invested over $5 billion
in the energy sector of Russia.
CULTURAL TIES
• India and Russia have strong cultural ties,
• Indian and Russian companies have been which are an important contribution to
cooperating in oil and gas exploration in the strong and robust relations between
Vietnam. the countries. Historical linkages have
• The recent visit of Prime Minister contributed to creating goodwill between
Narendra Modi to Russia in 2019 led to the nations.
both the sides signing the Agreement • The linkages that started with Afanasy
on Roadmap for Cooperation in Nikitin reaching India even before Vasco-
Hydrocarbons for the period 2019-2024. da-Gama revealed India to the West,
• Russia is an indispensable partner in the Gujarati traders settling in Astrakhan and
sphere of nuclear energy and recognizes the establishment of the Russian theatre
India as a responsible country with in Kolkata have all brought peoples of
advanced nuclear technology with an our countries closer.
impeccable non-proliferation record. • Russian scholars like Gerasim Lebedev
• The Nuclear Power corporation of and Nicholas Roerich have travelled
India limited and the Atomic Energy to India and studied Indian culture and
Commission of Russia have an agreement philosophy. The grand epic of India,
in place to build nuclear reactors in Mahabharata, has been translated into
India. In recent times, the Kundankulam Russian.
Nuclear power plant project in Tamil • Several generations of Russians have
Nadu has been carried out with the grown up watching Indian films. Yoga in
Russian assistance. Russia has been growing and becoming
• The two countries are also building increasingly popular since the 1980s,
the Roopar Nuclear Power plant in particularly in majors cities and urban
Bangladesh jointly. centres.
OUTER SPACE TOURISM

• India-Russia cooperation in the field • The number of Indian tourists to Russia
of peaceful uses of outer space dates and Russian tourists to India has shown
back to about four decades. The former significant increase in the last two years.
Soviet Union launched India’s first two The two countries are taking steps to
satellites, Aryabhata and Bhaskar. It has facilitate easier access to each other’s
provided India Cryogenic technology to citizens.
build heavy rockets. • It has been decided to celebrate 2018
• The two countries are currently engaged as 'Year of Tourism’ between India and
133
Russia. ISSUES AND CHALLENGES

• Both sides have eased and established • Defence trade issues: Russia has in
a liberal visa regime as far as tourists the past delayed the supply of various
are concerned. Goa is a hotspot for the defence equipment. This has resulted in
Russia tourists. delays and cost escalations. India has
been rightfully disappointed at this. India
REGIONAL AND has also diversified its defence imports.
However, Russia still supplies over 60% of
INTERNATIONAL India’s defence equipment.
• The growing Indo-US relationship:
COOPERATION the two countries have improved their
• In the international arena both countries relationship and have a Comprehensive
have similar positions and coordinate Strategic Partnership Agreement in
their actions. Place. Moscow feels threatened by this
• The two sides closely cooperate in relationship.
multilateral forums like United Nations, • The growing Russia-Pak relationship:
BRICS and G-20 groupings, as well as in This is explained by many as Russia’s
the various structures in the Asia Pacific counter to the growing ties between India
region such as ASEAN and East Asia and the US or a Russian attempt to stop
Summit Forum. the flow of terrorists into central Asia or
• Russia supported India’s membership to the Russian underbelly. Russia supports
the SCO and India was admitted as a full Pakistan’s position on Afghanistan and
member of SCO in 2017. the Taliban peace talks. This is contrary
to what India believes in.
• Both the countries share similar views
on fighting terrorism without double • The growing Russia-Chins relationship:
standards, a more representative multi- Increasing strategic military relations
polar world order based on international between Russia China also impacted
law with UN playing a central role and India Russia relations. Russia has sold
resolving threats to international peace advanced military technology to China &
and security. also endorsed One Belt One Road. China
and Russia inaugurated the first cross-
• Russia supports India’s permanent border pipeline between their countries,
membership of the United Nations called the “Power of Siberia” to pump
Security Council. natural gas to China from Russia. But
• On Syria and Afghanistan, both countries Russia has made it clear that it is not
have called for resolute action to bring in an alliance relationship with China
about a lasting and peaceful solution, and wants to have a multi-vector
and defeating the forces of terrorism. foreign policy.
• Both sides also cooperate on other • The relations between India and Russia
global challenges such as cyber security, will have to be expanded across sectors
preventing weaponization of outer space and transformed into a meaningful
and prevention of weapons of mass relationship. Its dependence on defence
destruction. will have to be diversified.
• Dialogue process at the top level and
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frequent exchanges will have to be the beneficial partnership and strong friendship
norm. between States. This will be to the benefit of
our States and international community as
a whole.
WAY FORWARD
• During the Sochi Informal Summit in
2018 the strategic partnership between
the two has been elevated into a "special
privileged strategic partnership”.
• In 2017 trade between both countries
increased by 20%. Two countries decided
to reach USD 30 billion investment goal
by 2025. In this direction, India Russia
Strategic Economic Dialogue was started
in 2018.
• India and Russia have identified several
new areas of cooperation. These range
from deep sea exploration to building
knowledge-based economies based
on science and technology, innovation,
robotics and artificial intelligence,
focussing on infrastructure, skill
development, agriculture, shipbuilding,
railways, aviation and greater
connectivity, especially people-to-
people contacts.
• Special focus will be given to cooperation
between the younger generation and
cultural sphere.
• The proposal of President Putin for a
‘more extensive Eurasian partnership
involving the EAEU and China, India,
Pakistan and Iran’ should be used by India
to strengthen its presence in Eurasia.
• India would do well to take steps to shore
up its relations with Russia to prevent it
from becoming more dependent than
it already is on China. At the same
time, Russia would also benefit from
diversifying its relations across the region,
including India, so as to prevent its pivot
to Asia becoming a pivot to China.
India and Russia will continue to remain a
role model for harmonious and mutually
135
CHAPTER - 21
INDIA-CHINA RELATIONS
INTRODUCTION court of the Chinese emperor.
Sino-Indian relations can be described • Soon, India and China became colonial
as the relationship between two ancient twins. They were occupied by various
civilizations and emerging powers. The two European powers. An economic and
nations have shared a positive relationship cultural exploitation of the twins followed.
based on a shared history and common The English East Indian Company
interests. In recent times, the two are also continued to retain the monopoly over
emerging economies and have a lot to gain trade with China as per the Charter Act,
from each other. 1813.
HISTORICAL RELATIONS CULTURAL RELATIONS

• Both the counties described by observers • Cultural Relations India-China cultural
as twins, because the two nations have exchanges date back to many centuries
continued to interact throughout history. and there are some evidence that
• In the ancient times, both were historical conceptual and linguistic exchanges
civilizations and the Himalayan existed in 1500-1000 B.C. between the
mountains proved to be not an obstacle Shang-Zhou civilization and the ancient
but facilitated the interactions. Vedic civilization.
• India exported Buddhism and other • As a mark of the historical civilizational
values of cultural significance and contact between India and China,
imported porcelain and silk from China. India constructed a Buddhist temple in
Many Indian kingdoms like the Mauryan Luoyang, Henan Province.
dynasty and the Gupta kingdom- • Indian Bollywood movies were popular
maintained contact with China and in China in the 1960s and 1970s and
traded with them. the popularity is being rekindled in
• Many Chinese travelers like Fa Hien recent times again. India and China
and Tsuen Tsang visited India and wrote have entered into an agreement on co-
extensively about the nation and its production of movies, the first of which
people, especially about the Nalanda based on the life of the monk Xuan Zang
University (Bihar). hit the theaters in 2016.
• In the medieval times, both sides- • Yoga is becoming increasingly popular in
maintained contact through the seas. China. China was one of the co-sponsors
It was Kollatunga, a ruler of the chola to the UN resolution designating June 21
dynasty who was the first Indian king to as the International Day of Yoga.
send an envoy to China. An envoy and
70 trade representatives were sent to the
136
ECONOMIC RELATIONS 2019 in Wuhan.
• The Trade and Economic Relationship

between India and China has seen a SCIENTIFIC COOPERATION
rapid growth in the last few years. In • The two nations have signed almost
2008, bilateral trade reached US$ 51.8 24 agreements till date in this area
billion with China replacing the United of cooperation. Topics such as
States as India’s largest “Goods trading agricultural research, bio-technology,
partner.” The bilateral trade reached an pharmaceuticals, research in outer
all-time high of about USD 81.86 billion. space, nuclear energy, and electronics
• The India-China Economic and are some of the scientific topics which
Commercial Relations are shaped the two sides are cooperating on.
through various dialogue mechanism • There is an India-China Joint Scientific
such as Joint Economic Group, Strategic group which meets regularly to take stock
Economic Dialogues, the Development of the cooperation and work together.
Research Center Dialogue, and the Delegation level visits between the two
Financial Dialogue. nations too have taken place. The two
• Some of the other institutionalized sides also have a civil nuclear agreement
dialogue mechanisms between the in place.
two countries include the various Joint • Huawei, a Chinese telecom company is
Working Groups (JWG) on Trade, on participating in the 5G technology trials
Agriculture, on Cooperation in Energy. in India.
DEFENCE AND STRATEGIC EDUCATION RELATIONS

COOPERATION • India and China signed Education
Exchange Programme (EEP) in 2006,
• To expand military cooperation, an which is an umbrella agreement for
agreement was signed in 2008. Ever since, educational cooperation between the
the two militaries have been holding joint two countries.
exercises, making port calls and have a
mechanism to resolve border incursions. • Chinese students are also annually
The nations hold annually a joint anti- awarded scholarships to study Hindi at
terrorism exercise named ‘HAND IN the Kendriya Hindi Sansthan, Agra to
HAND’. learn Hindi.
• Both countries also joined hands in • The cooperation in the education sector
counter terrorism in the Regional Anti- between the two sides has resulted in an
Terrorism Structure (RATS) under the increase in the number of Indian students
aegis of the Shanghai Cooperation in China. During the Academic Year 2019-
Organization. 20 there were more than 20000 Indian
students studying in various universities
• The two countries agreed to execute joint in China in various disciplines.
projects in Afghanistan and have till date
jointly trained Afghan diplomats. This
was agreed upon during the First Informal
Summit between the two leaders in April
137
INDIAN COMMUNITY CHALLENGES IN SINO-

• The Indian community in China is
growing. Present estimates put the
INDIAN RELATIONSHIP
community strength to around 35,500. A • Border Dispute
major part of this comprises of students Aksai Chin & Arunachal Pradesh
(over 20000). issue: Both nations claim both regions
• A number of Indians and PIOs are also although China controls the former
working as professionals with various and India the latter.
multinational and Indian companies
SIGNIFICANCE OF INDIA-
CHINA RELATIONSHIP
• Balance between West and non-West:
In many ways, the rise of China is good
for India. It has changed the balance
between the West and non-West. USA
focuses a lot on China, on China’s
Dalai Lama Successor Issue: Tawang’s
trade practices, on China’s technology
prominence in the border dispute may
practices, on China’s intellectual property
take on special importance should the
rights practices. India and China should
Dalai Lama die, setting up a succession
not allow themselves to be played off
crisis between a Beijing-anointed
each other.
successor and a legitimate successor
• Economic significance: China is India’s outside Tibet.
largest trading partner. It is imperative for
• India’s Biggest Trade Deficit: There is a
both of them to be allies so as to support
large trade imbalance worth USD 48.66
each other and continue their bid for the
billion in favour of China. According to
strongest power.
the Department of Commerce, for the
• China is a P5 nation: India acknowledges financial year 2019-2020, India imported
China’s power as one of the P-5 powerful goods and services worth USD 65.26
nations. According to one Indian billion and exported goods and services
news report, India agreed not to raise worth USD 16.6 billion.
objections to BRI in return for China
• One Belt, One Road initiative:
dropping its hold on adding Azhar to a
UN terrorism-based sanctions list. India refused to participate,
maintaining opposition to China’s
• Afghanistan factor: If China and India
investment in the China-Pakistan
can cooperate in Afghanistan, they can
Economic Corridor, or CPEC, which
certainly do so in other parts of the
passes through disputed territory of
neighbourhood.
Pakistan-occupied Kashmir.
138
• Use of Veto power against India:

China has been steadfastly blocking
India’s attempts at joining certain
multilateral fora including the Nuclear
Suppliers Group (NSG) and the United
Nations Security Council (UNSC).
South China Sea (SCS) Issue and India:
India has been expanding its influence China has been blocking India’s efforts
through implementing its Look East to target Pakistan and Pakistan state
Policy (LEP). This has not been taken sponsored terrorism at the UNSC and
well by China. FATF.
• Domination of Indian Ocean:
Difficult for India to become
Four specific corridors that constitute
major components of the BRI and Atmanirbhar by boycotting
run through India’s South Asian Chinese goods?
neighbourhood: the CPEC, the
• China is India’s second-largest trading
BCIM Economic Corridor, the Trans-
partner after the US.
Himalayan Economic Corridor, and the
MSR. China’s Reluctance to Support • It accounts for nearly 12% of India’s
India’s Membership of International imports across sectors such as chemicals,
Bodies: automotive components, consumer
electronics and pharmaceuticals while
India’s chance of being admitted into
only 0.9% of Chinese were from India.
the NSG are always slim because of
China’s opposition. • At least 70% of India’s drug intermediary
needs are fulfilled by China.
• String of Pearls
• Smart phones and most of the electronics
Beijing has been reaching out to
goods are imported from china at low
India’s neighbours on the premise of
cost.
development and trade, allegedly
recreating the Silk Route. From • Companies like Alibaba and Tencent are
Nepal in the southeast to Myanmar, strategically pumping billions of dollars
Bangladesh to Sri Lanka in the south into Indian start-ups such as Zomato,
and Pakistan in the west, China plans Paytm, Big Basket and Ola.
to choke India diplomatically. • Chinese giants deeply embedding
themselves in India’s socio-economic
and technology ecosystem,
139
• 90% of India’s toy market and 50% of into the major military or strategic gains”.
India’s bicycle market is dominated by • Infrastructure development: With China
Chinese goods reportedly planning to set up a permanent
• Whereas China’s exports to India military base in Pakistan for CPEC, India
account for only 2% of its total exports, should be prepared for greater Chinese
so even if Indians boycott all the goods meddling on this matter.
imported from China, it will not make a • India should ramp internal connectivity.
big impact on China. India has neglected its inherited
trans-border connectivities since
WAY FORWARD Independence.
• The bigger challenge for India is to • India-Japan cooperation: India should
maintain a stable relationship with work with countries like Japan and
Beijing as China is predicted to be the multilateral institutions to develop
next superpower. regional connectivity in the Indian
Subcontinent and beyond.
• Assisting weaker states: The Wuhan
talks had laid a framework for ‘India- Both nations need to master the
China plus one’. In October 2018, India four keys of:
and China launched a programme to
train Afghan diplomats as an initial step • Leading: It means to reach consensus and
in a long- term effort towards trilateral guide the direction of the development
cooperation (India- China-Afghanistan). of bilateral relations under the guidance
of leaders from both nations.
• Coordinating geoeconomic plans: Short
of finance capital and industrial resources, • Transmitting: It means to transmit the
India cannot undertake the sole burden of leaders’ consensus to all levels and
lifting South Asia from underdevelopment translate it into tangible cooperation and
and low interdependence. China is one of outcomes.
the key players that need to be engaged • Shaping: It means to go beyond the mode
more strategically by India. of managing differences, shape bilateral
• Maritime cooperation: In recent years, relations actively and accumulate
India has recognised China’s ‘Malacca positive momentum.
dilemma’, the long and insecure lines of • Integrating: It means to strengthen
communication that China relies upon exchanges and cooperation, promote
for its international trade, and its interest convergence of interests and achieve
in improving the security of its trade common development.
routes in the northern Indian Ocean. With both the leading nations on board,
China too needs to reassure India about sharing vision of regional peace and
its port projects. development is a win- win situation for all.
• Competitive co-existence in a common
neighbourhood: As a recent study
observed, smaller South Asian countries
“largely still see India as the dominant
power in South Asia, suggesting that
Chinese economic activity, while
welcome, will not necessarily translate
140
CHAPTER - 22
INDIA-GERMANY RELATIONS
INTRODUCTION unsustainable ‘One

(OBOR)’ project.
Belt One Road
• India and Germany cooperated in a

large number of areas and moved their • While finding allies, India fits into this
relationship beyond the ‘economic and puzzle brilliantly. As an emerging power
development partnership lens’. Defence in the world with a vibrant economy and
and a strategic partnership have assumed a ‘young population’, India and Germany
critical importance and a dialogue has are natural allies.
begun on this issue.
• The leadership of both the nations have ECONOMIC RELATIONS
met regularly in the past few years Both • It is perhaps, in the economic and
countries can forge a partnership in the technological fields that the partnership
post COVID-19 world that will aim at has been strong over the years.
creating a world order that is peaceful,
development oriented and human centric • There is huge scope for economic and
which is also sustainable. technological prowess of Germany in the
building of a ‘New India’ by the year 2022.
• The two sides signed a ‘Strategic
Partnership’ Agreement in the year 2001. • In trade, Germany is India’s largest
trading partner in Europe with bilateral
Germany intends to boost ties with trade worth USD 21.98 billion during the
India due to the following reasons: year 2017-18.
• Post BREXIT uncertainty prevailing in • Germany is the seventh largest foreign
Europe and bleak future of EU due to the investor in India with an investment of
financial stress and a disunited front, USD 11.7 billion for the period of 2000-
19. However, there has been a slump
• Void being created by certain actions following the global economic conditions
of the US in terms of withdrawing from prevailing since 2019.
International treaties and their waning
influence across the world which is • Germany that has been a manufacturing
threatening the creation of a unilateral power in the world can also enable India’s
world, manufacturing sector to grow.
• Erosion of international institutions such • The program like ‘Make In India’ (aims
as the World Trade Organization (WTO), to enhance the contribution of the
manufacturing sector in India’s GDP to
• Germany’s desire to move beyond its 25% and create 100 million jobs by the
influence in Europe and the Atlantic year 2022) and ‘Aatmanirbhar Bharat’
region and Abhiyan (aims to enforce radical changes
• Irresponsible Chinese actions including in the Indian economy, including its
the financially and ecologically manufacturing sector) the Germany’s
141
cooperation and support will be critical. • Irritants the needs to be addressed:

• Many German automobile manufacturers • Despite India’s improvement in the ‘Ease
find India to be their largest markets of Doing Business Index’ released by the
in terms of sales. They have set up World Bank, German investments have
manufacturing facilities here in India. faced delays and various regulatory
• Accordingly, the ‘Make in India issues. This has proved to be an economic
Mittelstand’ program hopes to attract irritant between the two sides. Uncertain
over 135 German Small and Medium taxation rate is another reason cited by
enterprises to invest over 1.2 billion Euros German business entities.
into India. • Due to the lack of a ‘Free Trade
• In the field of Start-up’s, the German- Agreement’, the full potential of the
India start-up Exchange program economic partnership is yet to be realized.
supporting cooperation between the • Both sides emphasized on the early
start-up ecosystems of both nations has conclusion of the Broad-Based Trade and
been launched. Investment Agreement (BTIA) between
• Similarly, the ‘blue economy’ offers India and the European Union (EU). This
the opportunity to cooperate. The remains struck despite over 16 rounds of
Indian Ocean Region (IOR) has plenty negotiations.
of resources in terms of fisheries, oil • Access to Indian markets for European
extraction and other polymetallic nodules Automobiles, Cheese and Wine products
which can be easily extracted. and data protection laws and the EU’s
• India and Germany can cooperate for reluctance to enable an easier visa
the sustainable development of not only regime for Indian nationals are some of
the IOR but also in the Arctic region1. the major irritants that have prevented
an early conclusion of BTIA.
• Both sides cooperating on the reforms
to be executed in the WTO, especially its • However, during the recent 16th India-EU
Dispute Settlement Mechanism and the Summit Dialogue, both sides have set up
precarious global situation caused due a high-powered committee to overcome
to the trade wars around the world. these differences.
• India is not only negotiating a trade • The recent ‘Air Bubble’ agreement
and investment agreement with the EU between the two countries has been
but also with Britain. In this regard, we cancelled.
need to understand that the maxim ‘EU • The world needs to be united and nations
is Germany and Germany is EU’ holds will have to overcome their economic
true. In a post BREXIT scenario, Indian differences to grow together once again
companies will be the favourites amongst after the pandemic has subsided. India
the various European nations. France has and Germany will play a critical role in
already rolled out a red carpet to attract building a new economic architecture
Indian investments and the two countries post covid-19.
should take the lead and quickly finalize
a deal, even as the BREXIT dates are
nearing.
1 India recently became an Observer in the Arctic
Council
142
TECHNOLOGY/ of renewable energy and undertake

forest landscape restoration projects at
SUSTAINABLE a cost of 35 million euros.
• India and Sweden already cooperate in
DEVELOPMENT the field of managing urban pollution
in India and tackling the issue of
COOPERATION agricultural residue management.
• Germany’s technological prowess is German companies can collaborate with
well known around the world and Indo- India on this matter too.
German collaboration will be mutually • Every year, the harsh winters of the
beneficial for both the nations. Great Indian Plains also bring about
• India’s powers lay in the field of software deteriorating air quality which is
and Germany’s in hardware. The two responsible for many deaths caused due
nations can collaborate in this field to air pollution. The government needs to
and ensure that value chains become find a sustainable solution towards this.
efficient, governance issues are solved • The exit of the US from the Paris
using technology and sectors of the Agreement and other climate change
economy grow in an efficient manner. negotiation forums has left a void.
• In this regard, the Indo-German Science The global community has been left
and Technology Centre was set up in bewildered and clueless in terms of the
Gurugram in 2008 with a contribution of direction to pursue. The effects of climate
USD 1 Million each by both the nations. change are well known and it is unwise to
• The two nations have also set up a under-estimate it.
High Technology Partnership Group • India and Germany can collaborate
for exploring opportunities in the on this front and fill this void. The
manufacturing of high-end technological commitments of both nations are well
products under the ‘Make in India’ project. known towards mitigating the effects of
• Both nations have recognized the climate change.
importance of emerging technologies • Germany also has a crucial role to play in
that will dominate the future in all spheres the International Solar Alliance.
of life. So roadmap for Cooperation in • Finally, in recent times due to the
the field of Artificial Intelligence (AI) and ongoing COVID-19 pandemic, Germany
Digital Transformation is signed between has pledged its support to India both
both. in terms of material as well as financial
• In the field of urban transportation, both assistance.
sides signed ‘Joint Declaration of Intent
on the Indo-German Partnership on
Green Urban Mobility’. By this Germany DEFENCE/STRATEGIC
has pledged an additional amount of
1 billion Euros for building sustainable
COOPERATION
urban transport systems. • Despite signing a ‘Strategic Partnership’
Agreement, the cooperation between
• The two nations also signed an agreement
the two sides is yet to realize the true and
to support the International Climate
full potential in the field of defence and
Initiative’s effort to expand grids, storage
143
strategic cooperation. • While being cautious and condemning

• The India-Germany Defence Cooperation China for its blatant disregard for
Agreement was signed in the year 2006 international law, it seeks to boost its
and recently Germany has agreed to cooperation with India in the region.
export weapons and high-end defence • One potential area of maritime
technology to India. cooperation between the two countries
• Germany has also expressed interest in lies in the Indian Ocean Region. The two
investing in the defence manufacturing nations haven’t fully explored the full
corridor projects coming up in the states potential of cooperation in this region
of Tamil Nadu and Uttar Pradesh. and should do so, going ahead.
• Germany condemned cross border • As far as the strategic cooperation is

terrorism which has affected India and concerned, one major irritant does exist
extended its full support in the field between the two sides.
of counter terrorism and intelligence • Germany has been critical of India’s
sharing. actions in the Union Territory of Jammu
• Both nations are active in carrying out and Kashmir including the snapping of
reforms in the various global institutions the Internet. This undue interference in
such as the UNSC and the WHO. the affairs of a sovereign nation has left
a sour taste in the mouth.
• As far as the UNSC is concerned, both
Germany and India are part of the G-4 • India has decided to restore 4G internet
grouping that hopes to gain permanent connection in select districts of the Union
membership of the council and also Territory and is in the process of doing so.
bring about changes in its structures and • Finally, the post COVID-19 world will see
functioning. dramatic changes in the international
• The two countries also cooperate in other world order and Indo-German partnership
multilateral institutions such as the G-20 will be crucial in this regard.
and Financial Action Task Force (FATF).
• Presently Germany holds the presidency CULTURAL RELATIONS
of the EU and can play a positive role in • Presently over 1,69,000 people including
cementing the grouping’s relationship Indian Passport holders. There are over
with India by addressing the various 20,800 Indian students studying in
issues that have prevented the two sides Germany and 800 German students
from realizing the full potential. studying in India.
• In the immediate future, India has become • Both countries also agreed to set up
a non-permanent member of the UNSC an Indo-German partnership on higher
for a two-year period beginning from education to further increase the number
January 2021. It will become the voice of of Indian students studying in India.
the G-4 on very many issues that threaten
the peace and security of the world. • German language is popular in India and
the Government of Germany has set up
• As far as maritime cooperation is various Max Mueller Bhavans to teach
concerned, Germany recently came out the language.
with a policy document on their vision for
the Indo-Pacific region.
144
• In 2015, the two sides also agreed to

teach Indian languages in Germany.
Conclusion
Today, India is one of the biggest and
fastest-growing economies, and Germany
is the biggest economy in Europe. So both
countries should continue to work as equal
partners to tackle global development
challenges
PROBABLE QUESTIONS
1. The void created in various

international organizations can be filed
by a partnership between India and
Germany. Comment
2. The assistance provided by German
is critical for India to achieve its
Sustainable Development Goals.
Critically analyze.
3. BREXIT offers both India and Germany
opportunities to exchange their
economic partnership. Comment
145
CHAPTER - 23
INDIA-BRITAIN RELATIONS
INTRODUCTION • 13 April, 1919 is a date, many Indians are

unlikely to forget. It was on this day that
• In the recent years, India-Britain relations a crowd that had gathered peacefully
have been characterized by high-level and without arms was brutally killed
visits, trade negotiations and issues that by General Dyer in Jalianwala Bagh of
threaten to rock the boat. Amritsar.
• A Parliamentary report in Britain • In 2019, India observed 100 years of
lambasted the government for its lack this massacre. The fact that Britain
of vision and its inability to seize the has refused to tender an unconditional
opportunity to build meaningful relations apology still impacts the relationship
with India. between the two countries.
• As we shall see in this module, the relations • Many Indian jewels and other treasures
at present are far below potential but such as the famous ‘Kohinoor diamond’
both nations can enhance their ties to a are yet to be returned to India.
meaningful partnership and realise the
potential of this ‘Strategic Partnership’, • Britain has also influenced Indian polity
the agreement for which was signed in in many ways. Many features of the
the year 2004. Constitution of India have been borrowed
from Britain such as the Parliamentary
system of government and even the
HISTORY Government of India Act, 1935.
• The British ruled India for more than 200 • After independence, the two nations
years directly. It was during this period started to establish their diplomatic
that the Indian economy was looted, relations.
industries and traditional handicrafts • They were on the opposite sides of the
destroyed, agriculture rendered backward cold war. While India became a leader
and people made to suffer for their very of the Non-Aligned Movement, Britain
basic sustenance. Nationalist leader became a firm ally of the US.
Dadabhai Naoraji (in his book ‘Poverty
and un-British rule in India’ mentions • Britain’s support to Pakistan’s devious
this) and other economists have written plans to occupy Jammu and Kashmir in
in detail about the ‘British exploits’. 1965 also led to souring relations.
• Post-independence, India inherited the • It was only after the end of the cold war
British system of governance and its that the two nations started to improve
administrative structure. The ‘DNA’ too their relations.
of these British administrators seem to • It was after 2004 that the relations
have been inherited, as India continues made some headway when the two
to suffer from having a colonial mindset. nations signed the ‘Strategic Partnership’
agreement.
146
indulge in activities that are inimical to

the unity and integrity of India.
• Some members of the diaspora have
supported the ‘Khalistan movement’,
separatist politics of Jammu and Kashmir
and other terror related activities.
• The Indian High Commission in London
has been vandalized many times over
the past two years and Britain has still
refused to provide it with any security1
and has also refused to crack down on
these anti-social elements.
• This has time again spoilt the relations
PILLARS OF COOPERATION between the two nations. These elements
India-Britain cooperation can be studied are backed by the notorious ISI which has
through the following five major pillars of been trying to convert Britain as ‘hub for
cooperation. all anti-Indian’ activities.
Diaspora • Another question that has emerged
in recent times is: Why is the UK home
• According to the 2011 census conducted to many fugitives from India who are
in Britain, the Indian diaspora consists of wanted for trial by the Indian courts?
1.5 million people who are approximately
• Many fugitive economic offenders like
1.8% of the total population of the United
Vijay Mallya and Lalit Modi are hiding
Kingdom. They contribute to 6% of the
in the UK and are wanted for economic
total GDP.
offences in India. Despite repeated
• The members of the diaspora have requests, these elements haven’t been
occupied important positions in both the extradited to India.
public and private sector of the UK.
• The Indian diaspora forms a considerable
• Many Ministers in the present government ‘vote bank’ for parties in Britain. In the
including the Home Secretary (Priti Patel) recently concluded elections in 2019, the
and the Secretary to the Exchequer Indian diaspora played a critical role in
(Rishi Sunak), who are considered to be the ‘Labour Party’, seen to be anti-India
key members of the British Cabinet are by some. Certain members of political
persons of Indian origin. In the House of parties in India are accused of playing
Commons, 15 Members of Parliament are a role in this process. Britain raised
of Indian origin. their objections at the diplomatic level
• Many Indian origin individuals are following this development.
also contributing to technological
advancement and economic progress of Education
the UK.
• This is another area of cooperation. The
• However, one major irritant in the ties
between the two countries remains the 1 in violation of the Vienna Convention of Diplomatic
Relations which states that it is the duty of the
steadfast refusal of Britain to rein in receiving state to protect the diplomatic premises
certain members of the diaspora who and protect the personnel of the sending state
147
number of Indian students in the UK was as an important area of cooperation.

40,000 in the year 2009-10. However, this • The Free Trade Agreement talks which
number has fallen to 20,000 in 2017-2018. had abruptly ended in 2013 was re-
• Despite many joint working groups started in the year 2018.
between the two countries and • During 2015-2018, the bilateral trade
scholarships, the number of Indian between the two countries increased by
students studying in the UK has constantly over 27%.
fallen in the past few years.
• Indian exports to the UK include
• This is primarily due to an illiberal visa agricultural items, textiles, engineering
regime that exists for Indian students goods and petroleum products.
as well as Indian nationals wanting to
emigrate to the UK. • However, it is the growing investments
that have re-energized the ties between
• India has been excluded from the list of the two nations.
‘Low risk nations’ by the UK Home Office.
This would have permitted cheaper and • The UK is the fourth largest investor in
easier visa conditions for Indian students India and accounts for 7% of all FDI into
wanting to study in the UK. India.
• Many are of the opinion that this is the • On the other hand India is the third
UK’s loss as Indian students, all over the largest investor in the UK and accounts
world only contribute to the economy for over 110,000 jobs that have been
of the nations and undertake cutting created. India remains as the second
edge research and use their intellectual largest job creator in the UK.
abilities to build those nations. • As far as the Free Trade Agreement
• There exists the India-UK Education negotiations are concerned, the major
Forum, the UK-India Education Research issue appears to be the UK’s reluctance
Initiative, the Joint Working Group on to permit a liberal visa regime for Indian
Education and scholarships schemes workers and students.
such as the Newton-Bhabha fund. • The fact that nations such as China have
an easier visa regime is a point of concern
Economic Relations for a nation like India that seeks to build
an equal partnership with the UK.
• In recent times, following the negotiations
and events associated with BREXIT, • The UK has also pointed out that large
India and Britain are in the process of number of illegal immigrants from India
discussing a Free Trade Agreement. stay in the UK and has urged India to
take them back.
• Recently in the 14th Joint Economic and
Trade Committee (JETCO) meeting both
nations have agreed to operationalize
an early harvest program that seeks to
reduce or eliminate tariffs on certain
products and ease service conditions of
certain sectors.
• Health sector cooperation in view of the
COVID-19 pandemic too was identified
148
Some related information on BREXIT
BREXIT was voted upon by the people of Britain in 2016 in a referendum. However, it is only
in January 2020 that Britain finally decided to leave the European Union. The process is
expected to be completed within a period of 11 months. During this period, the terms of
relationship between the UK and EU will be negotiated.
This has both a positive as well as negative impact on India.
The following are the benefits of BREXIT:
• Free Trade Agreement with India is expected to benefit India’s services sector. As
Britain leaves the EU, it will seek to quickly negotiate new FTA’s with emerging markets
including India. India’s pharma, textiles, Informational Technology and Banking sectors
are expected to benefit from the FTA.
• As Britain introduces a ‘Points based’ immigration system, it is expected to benefit India
which has a market for highly skilled labour. However, as mentioned before, Britain’s
reluctance to provide an easy and liberal visa regime for Indian nationals is well known
and one would have to wait for the finer details of this system before analysing it.
• Service sector growth- Hi-tech products from India are expected to benefit after BREXIT.
India which has a cheap cost of manufacturing these products will find a market in the
UK.
• The UK will also seek to attract Indian investments which will seek to move to the
European Union nations and this will provide a better market access for Indian goods.
The following are the cons of BREXIT:
• Political uncertainty in Europe will impact India. Many members of Indian Diaspora in Britain
had voted against BREXIT because it is likely that Indian IT Professional in Britain will face
tough competition when UK will open up its border for more skilled migration.
• Global impact caused due to any expected slowdown in the British economy will impact
India and India cannot isolate itself from this issue.
• India will be negotiating a Trade and Investment deal with London as well as Brussels
(EU) and the outcomes will be closely watched.
• A weaker pound may benefit India; the volatility of it may force the Reserve Bank of
India to intervene in the foreign exchange market.
Some of the recent developments on the economic front include the following:
• ‘Access India Program’ launched by the Indian High Commission in London to facilitate
MSME investments into India, primarily in the ‘Make in India’ campaign which seeks to
enhance India’s manufacturing capacities.
• Over 3.5 billion pounds of rupee denominated bonds have been issued in recent times to
many corporations such as NHAI.
• The Indian Railways Finance Corporation has raised ‘green funds’ worth 500 million
pounds after being listed on the London Stock Exchange.
• Both nations have agreed to invest 120 million funds in the National Investment and
Infrastructure Fund.
149
• The UK has also agreed to partner with Certain Joint Economic Committees
India in the Varanasi Smart City Project
and will construct the city’s railway • JETCO (Joint Economic and Trade
station. Committee): It was formed in the year
2004 after the signing of the Strategic
• The UK will also invest about 160 million Partnership Agreement between India
pounds in 75 Indian start-ups. This is in and UK. This committee seeks to elevate
addition to the 20 million pounds that the economic partnership between the
shall be invested into the India Venture two countries.
Capital Fund.
• India-UK Economic and Financial
• In recent times, the two nations have in Dialogue: This was started to enhance
2019 agreed to set up three new working the cooperation and establish a
economic joint groups to tackle the dialogue mechanism between the
barriers in trade pertaining to healthcare, finance sectors of both the nations. The
food and drinks and data services. two nations hope to imbibe the best
• These groups shall function under the practices from each other.
UK India Business Council (UKIBC), • India-UK Financial Partnership: This
Confederation of Indian Industries (CII) is another mechanism to improve
and the Federation of Indian Chambers the partnership between the finance
of Commerce and Industry (FICCI). sectors of both the nations. It seeks to
• This decision was taken during the 13th build a partnership between London
Joint Economic and Trade Committee and Mumbai.
meeting in 2019. • India-UK CEO’s Forum- It consists of
• Finally, the UK-India economic CEO’s of various enterprises between the
partnership appears to be the mainstay two nations. Their task is to recommend
of this relationship and for a continued measures to the governments to boost
and prosperous tie, it is in the interest of trade and investments.
both the nations to sort out the irritants • UK-India Business Council- It is
and conclude a trade deal at the earliest. established as a non-profit organization
and acts as a secretariat to JETCO and
provides a mechanism to UK companies
wanting to invest in India.
Science and Innovation

• Britain with its proven track record on
cutting edge innovation and India with
its knowledge base can assist each other
in the tasks associated with innovation.
• The cooperation has now been
necessitated due to the COVID-19
pandemic in the field of vaccine research
and trails.
• The Serum Institute of India in Pune
and the Oxford University are working
150
together to roll out the vaccines in the • In recent times, the relations between
first half of 2021. Britain and China have deteriorated
• The UK has also launched a fund for 3 following the Hong Kong security law.
million pounds which will build on an This provides an opportunity for the UK
innovation challenge in India to mitigate to increase its cooperation with India.
the effects of COVID-19. • Being a permanent member of UNSC,
• Various ‘tech-clusters’ will be identified the support of Britain to India will be
and projects in them will be funded using critical for its permanent membership
this fund. too. Britain has also supported India in
other forums such as the G-20 and NSG.
• In 2019, the India-UK Tech Partnership
Program was launched to pair states • India can further encourage the UK to
and universities working towards invest in its various defence corridor
technological solutions. projects. This will enable India to fulfill
its objectives under the ‘Make in India’
• The India-UK Clean Energy Research and program.
Development Centre too was announced
in 2019. This will focus on research in solar • The Joint Exercises between the two
energy and efficient building systems. armies is called the ‘Ajeya Warrior’.
• Finally, a Joint Strategic Group on

Antimicrobial Resistance too was ISSUES AND CHALLENGES
announced and the UK has invested up • While the relations between the two
to 13 million funds into this. countries are on an upswing in certain
• The two nations can further cooperate in areas, there are certain irritants that seek
the field of 5G communication technology to spoil the gains made over the years.
and other emerging technologies such • The ‘China factor’ continues to threaten
as Blockchain technology, Artificial the relations between the two nations.
Intelligence amongst others. Britain and China enjoy a close
relationship. In ideal circumstances, this
Strategic Cooperation/Defence shouldn’t matter to India. However, the
Relations fact that India has been discriminated
against by Britain as compared to China
• As mentioned before, the two nations in terms of visa agreements and other
signed a ‘Strategic Partnership’ matters has only spoilt the relations
Agreement in 2004. There are many areas between the two countries.
where the two nations can cooperate.
• In recent times following the COVID-19
• Firstly, the Indian Ocean Region pandemic, Britain has cancelled
remains one of the less explored areas its contract with China for the 5G
for cooperation. The two navies can communication trials and due to ongoing
carry out joint exercises and forge a crackdown in Hong Kong and the
partnership to keep the region free of undemocratic security law, the relations
pirates and powers that seek to colonize have further soured though.
international waters.
• The next important irritant is the
• The UK can also join India and other ‘Pakistan factor’. The fact that Pakistan
like-minded countries as far as the Indo- has been permitted to carry out anti-
Pacific region is concerned.
151
Indian activities from British soil has views on the global issues. Both believe
enraged India. Britain has also refused to in rule based international order and
crackdown on Pakistan state sponsored both support for the development in west
terrorism. Asia.
• The UK and its various bodies have been • So it is an imperative for both nations to
continuously interfering in the internal recognize the potential of a good and
matters of India and has developed a sustained relationship and work towards
habit of lecturing India. it. Britain can become a gateway into
• The UK still views India as an under- Europe for Indian companies and India
developed nation and its policies are can become Britain’s gateway into Asia.
reflected. India is an emerging economy
and its power has grown in recent times. PROBABLE QUESTIONS
The British media reacted sharply to
1. Lack of vision has severely impacted
Mission Shakti that tested India’s anti-
the UK’s relations with India. Comment
satellite missile.
• Finally, as mentioned before, the UK lacks 2. Deterioration of ties between the UK
a vision as far as its relationship with and China has provided yet another
India is concerned. This has led to lack of opportunity for cooperation between
fulfillment in ties and major irritants that India and the UK across sectors. Discuss
have crept into the relationship. 3. What is BREXIT and discuss its
implications for India.
CONCLUSION 4. Various anti-Indian elements in the UK
• UK values its relationship with India just threaten to spoil the relations between
the two nations. Discuss
more than trade and India regards UK as
an important player in world politics and
development. There is convergence of
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CHAPTER - 24
INDIA AND EUROPEAN

UNION (EU)
INTRODUCTION
• Following the dastardly years of
the Second World War, Europe was
devastated and its reconstruction needed
a joint effort of the global community.
The member states of the continent came
together to form the European Union (EU).
However, this European project received
a rude jolt in the year 2016 when one of
its leading members decided to exit the
bloc. Finally, in January 2020, Britain left
the bloc and is presently negotiating the
terms of their new relationship.
• Europe’s perception of India has been
changing in tandem with increasing
tensions with China. In 2018, the EU
released a new strategy for cooperation
with India, calling it a geopolitical pillar in
a multipolar Asia, crucial for maintaining
the balance of power in the region. Paris
and Brussels have been actively pushing Background
Europe to see India as a truly strategic • It was in the year 1994 that an agreement
partner. on cooperation was signed to take
• In this module, we shall explore the forward the relations beyond trade and
entire gamut of relations between India economics to other sectors and forge a
and EU and also EU, its history, various meaningful relationship.
organizations working under it and the • The first India-EU summit took place
possible impact of BREXIT. in 2000 and it was in 2004 that this
relationship was upgraded to that of a
‘Strategic Partnership’.
• The two sides have signed a new
agreement titled ‘India-EU Strategic
Partnership: A Roadmap to 2025’ during
the recently concluded 15th summit
dialogue.
• This strategic partnership will include
153
new areas of cooperation including the Indian market. India is emerging

the Indian Ocean region, sustainable as a significant player in the global
development and building a new world automobile trade and any concessions
order in the post COVID-19 world. granted at this stage will harm that
• The European Parliament also formally sector.
constituted a delegation of the Members The same can be said about
of the European Parliament to steer the agricultural products. India intends to
bloc’s relations with India in the year save its farmers who would otherwise
2007. be unable to compete with the
• We can study the relationship between Europeans. This has been an issue
India and the EU under following five even while negotiating a trade deal
broad categories of cooperation between with the US.
the two nations. The EU also faults India for its
intellectual property laws and stringent
Economic Partnership data localization norms. Data is
the new oil and it does reflect on a
• As a bloc, the EU is India’s largest trading nation’s sovereignty and cross border
partner. Trade in goods itself was 80 flow of data is still a nascent stage of
billion euros in the year 2019. If one were development.
to include trade in services, this number
would be above 100 billion euros. EU has rejected many of Indian
agricultural products due to stringent
• Agricultural products, textiles and sanitary and Phyto-sanitary measures.
pharmaceuticals dominate this trade in It seeks to have a dialogue on this
goods. Whereas, IT and ITES dominate issue.
the trade in services apart from a decent
bit of revenue from tourism. As far as the services sector is
concerned, the EU’s decision to enforce
• The EU is also one of the largest foreign stringent curbs on the free movement
investors in India. In the year 2018, of natural persons has irritated India.
foreign investments worth 67.7 billion Many IT and ITES companies would
euros accrued from EU nations. benefit from having a liberal visa
• However, despite this growing economic regime.
relation, there remain certain irritants and India also seeks a ‘data secure’ status
challenges in the economic partnership. from the EU which would benefit its
• Since 2007, India and EU have been IT sector. However, a study conducted
negotiating a Bilateral Trade and showed that less than 15% of the
Investment Agreement (BTIA) but have Indian companies have complied with
failed to conclude any agreement till date. EU’s General Data Regulation laws.
• The major sticking issues appear to the Another major issue remains that India
following: only accounts for 1.9 % of the EU’s total
The EU wants India to reduce tariffs on trade. In comparison, China accounts
various automobile products and wine for over 13% of the EU’s total trade.
products and permit greater access Keeping these concerns in mind,
to the agricultural markets. This will during the 15th summit dialogue, both
mean various EU products reaching sides have agreed to establish a high-
154
level dialogue to guide the ongoing EU-India clean energy partnership and
negotiations on BTIA and address EU-India water partnership forums.
issues of mutual concern. • With climate change issues which
• Another possible area of cooperation threaten to undo the developmental
between the two sides is the concept of agenda in both continents, India and
blue economy or ocean-based economy. Europe should cooperate in the field of
The Indian Ocean Region and the Arctic sustainable development.
Sea1 provides many opportunities for it. • This cooperation has been further
• Both nations also seek to build an necessitated after the US withdrawal
economic world order which is rules from the Paris Agreement.
based. In recent times, due to the ongoing • The vacuum in the global climate
trade wars between the US and China, dialogue leadership can be effectively
the space for globalization has shrunk filled by both India and the EU.
and institutions such as the WTO have
been side lined. • It is in this regard that during the recently
concluded 15th summit dialogue, both
sides adopted resolutions on resource
Scientific/Environmental
efficiency and circular economy2.
Cooperation
• The two sides are also cooperating in
• This is yet another important facet of the areas of digital communications, 5G
cooperation between the two sides. The technology, biotechnology and artificial
EU which is considered to be developed intelligence.
and India which is considered to be a
• With major backlash against China
developing nation can gain from each
and its 5G technology, this provides an
other’s experience and expertise in
opportunity for India and like-minded
various areas associated with science
partners such as the EU to cooperate.
and sustainable development.
• India with its scientific expertise can
• Presently, the EU is supporting India’s
cooperate with the EU on an equal basis
Mobilize your city Program in five
for projects that mutually benefit both
pilot cities to reduce GreenHouse
sides.
Gas emissions (GHG) related to urban
transport. Accordingly, the EU is funding • In recent times, India has emerged as a
the metro rail projects in Bengaluru leader in space technology and this is
(Karnataka), Bhopal (Madhya Pradesh), another area for cooperation between
Kanpur and Lucknow (Uttar Pradesh) the two countries.
and Pune (Maharashtra). • An Agreement on Scientific cooperation
• Metro rail projects have many benefits was signed between the two sides
such as environmental sustainability, during this virtual summit along with
safe mode of transport and reduction of an agreement on the peaceful uses of
traffic congestion. nuclear energy between India and the
EURATOM.
• An Energy Panel was set up in 2005
between the two sides and they have 2 in simple terms, it can be defined as an economy
in which people extract the maximum benefits of
been cooperating in forums such as the
a product when it is in use and then recycle and
1 India recently became an observer in the Arctic recover whatever can be extracted from it after its
Council use
155
• India also joined the Global Partnership Oceans are important transit zones for
on Artificial Intelligence. EU too is a part global commercial trade and energy
of this organization. It seeks to build trade. It is important to ensure that no
effective and moral system of Artifical nation colonized it.
Intelligence. Europe is an integral part of the One
• India is also a part of the International Belt One Road project of China.
Thermonuclear Experimental Reactor India has till date not discussed any
project being spearheaded by the connectivity related projects with the
European Union. EU. This is another possible area for
cooperation.
Strategic Cooperation The EU has also opposed the OBOR in
• The cooperation in this field appears to recent times due to its unsustainability
be muted despite a ‘Strategic Partnership in terms of the ecology as well as
Agreement’ in place from 2004 and a finances are concerned.
new agreement being signed recently. The EU also needs to play a more active
• Both sides have constituted several role in the Afghan peace process and
mechanisms for dialogue in matters the two sides can cooperate on this
related to counter terrorism, maritime front too. Due to the ongoing refugee
security and nuclear non-proliferation. crisis from Syria and other nations,
the EU appears to have ignored other
• Recently, the Information Fusion Centre- issues.
Indian Ocean Region of India and the
Maritime Security Centre- Horn of Africa Due to the waning influence of the
established by the EU Naval Force have US and the global power regimes
been linked. However, no meaningful undergoing massive changes, it is
cooperation on ground appears to have imperative for both India and the EU
been executed. to fill the gap.
• A report prepared by the EU in 2018 The two sides can also cooperate in
highlighted that this relationship with building a post COVID-19 world that
India needs to go beyond the ‘trade lens’ is sustainable, a world order that
into other areas of cooperation such as encourages cooperation and prevents
the ‘strategic sector’. conflicts. India can emerge as the most
natural ally of the EU.
• In this regard, the following areas of
cooperation can be explored:
People to People Ties
Both sides can cooperate towards
making the sea lanes of communication, • Europe has emerged as a popular
an area which is peaceful and where destination for Indian students as well
international law is abided. The EU as tourists. There are more than 50,000
needs to firm up its Indo-Pacific Indian students studying in various
strategy and cooperate with India universities in the EU and many of them
and other like-minded countries in are on the Erasmus Mundus scholarship
the ASEAN region and QUAD itself. program, offered by the EU.
The same applies to the Indian Ocean • India and EU signed the Common Agenda
Region. on Migration and Mobility in 2016 as a
framework for cooperation on migration
156
issues. However, the EU remains sceptical two sides need to urgently settle their
in encouraging a liberal visa regime for differences as far as the BTIA is concerned
Indian nationals. and broad base their cooperation into
• In recent times, various items of Indian other areas too.
culture such as Yoga and music (Soft
Power) have gained popularity in Europe NOTE ON EU
and many European languages are being
taught in India. • It was after the disastrous World War 2
that left Europe in tatters that the nations
agreed to come together and form a
Issues and Challenges common bloc which would develop
• There are certain issues and challenges together. The US’s Marshal funds assisted
that threaten the partnership between these nations in this regard.
India and the EU. While some may have • The European Union is a group of 28
been stated above, let us quickly recall countries (initially had 28 countries
them and look at other issues. but presently, Britain is not a member
• Issues associated with BTIA: The EU anymore) that operate as a cohesive
wanted labour, environment and economic and political block. The
government procurement to be headquarter of EU is in Brussels.
included in the talks. While India’s • 19 nations are part of the Eurozone and
demand for easier work visa and study use “euro” as their official currency.
visa norms as well as data secure
status, that would make it easier for • 9 EU members (Bulgaria, Croatia, Czech
European companies to outsource Republic, Denmark, Hungary, Poland,
business to India, were also not Romania, Sweden, and the United
received enthusiastically by the EU Kingdom) do not use the euro.
countries.
• Unknown impact of BREXIT as many
History
Indian companies in the UK may or may • Here is a brief timeline of major events
not shift their investments into the EU. associated in the formation of the EU.
London has served as the gateway into • 1951-Treaty of Paris European coal and
the EU region for many Indian companies. steel community was launched with the
• The EU has also continuously lectured membership of 6 countries.
India on many human rights issues and • 1958-Treaty of Rome launched the
issues associated with the abrogation European Economic Community.
of Article 370 and the Citizenship
Amendment Act, 2019. India being a • 1993- Treaty of Maastricht launched the
sovereign nation considers it an affront European Union (EU) with 28 members.
to its dignity and sovereignty for a foreign • 31st Jan, 2020- Britain left it and the EU
power to interfere in its internal matters. has 27 members presently.
• India has also preferred to deal with
these nations on an individual basis Institutions
rather than as a bloc. • The following are some of the important
• The 21st century can be a partnership institutions:
between India and the EU and the
157
European Parliament- Brussels BREXIT

European Council- Brussels • It was after many years that Britain joined
European Commission the European Community in 1973.
European Court of Justice-Luxembourg • Britain has always debated this issue and
city questioned the benefits it derives from its
European Central Bank- Frankfurt membership in the EU. While, EU is a large
market for British goods and services, it
EURATOM has always been uncomfortable shedding
European Space Agency- Paris its powers on currency regulation and
migration.
Functions of some important Institutions
• As a result, it has continued to hold on
• European Parliament:
to the ‘Pound’ and refused to accept EU’s
It is one of the 3 legislative institutions policies on migration, especially during
of the E.U. the recent migrant crisis.
On the basis of proportional • It was in the year 2016 that the referendum
representation, Members of the conducted in the UK supported the idea
European Parliament are elected of BREXIT or Britain’s exit from the EU.
by European Union citizens every 5
• It finally took more than three years
years. There are 705 Members of the
after the resolution failed to muster the
European Parliament (MEP) in the
numbers in the British Parliament. The
European Parliament.
victory of the Conservative Party in
• European Council: the elections in 2019, gave the UK the
Political direction for the European opportunity to leave the EU and it did on
Council is given by the European January 31, 2020.
Council. European Council was • However, the exit will finally become a
established as an informal summit in reality after 11 months. In the interim, the
1975. However, with the enactment two sides will negotiate their future terms
of the Treaty of Lisbon EC was of reference.
formalised as an institution in 2009.
BREXIT is being considered to be
• European Commission: disadvantageous for the EU due to the
European Commission acts as the following reasons:
executive arm of the European • Loss of an economic power such as
Union. It is responsible for the day Britain,
to day functioning of the European • The possible collapse of the EU as there
Union. are more voices from Greece, Italy and
European Commission is considered even Germany to exit the EU. This could
as the guardian of the treaties also point towards a trend that has
signed. It also has legislative powers emerged which seeks to reverse the gains
like proposing laws for debate. of globalization.
• EU’s collective security pacts may suffer
due to Britain’s exit.
158
CONCLUSION
EU and India also have similar stakes in
stronger international institutions and a
liberal order that protects global commons
cooperatively. If both agree to expand
consultations on issues such as climate,
trade and space, it is likely that they will
find themselves agreeing far more times
than usually expected.
POSSIBLE QUESTIONS
1. Describe the various issues that

continue to affect the signing of
the Bilateral Trade and Investment
Agreement (BTIA) between India and
Europe.
2. Europe and India are natural allies in a
post COVID-19 world. Comment
3. India and EU cooperation often is seen
through the ‘trade lens’. What other
areas can the two sides cooperate in?
4. The vacuum created by the US’s exit
from the Paris Agreement can be filed
by India and the EU. In this regard,
discuss the cooperation between the
two sides on the issue of sustainable
development.
5. Europe’s tendency to lecture India
on human rights issues continues to
affect its ties with an emerging nation.
Discuss.
159
CHAPTER - 25
INDIA-FRANCE RELATIONS
INTRODUCTION cooperation, cyber security and space

technology amongst others.
• India’s relationship with its traditional
friends such as Russia undergoes a • This relationship needs to be closely
sea change due to the evolving socio- watched and could emerge as a
economic changes. But in case of France partnership, sans any issues and
it has not only remained warm but also challenges.
grown in recent times. • Let us explore various facets of this
• Many experts have in fact suggested that relationship.
France has replaced Russia as an ally of
India, because despite a bitter past the
two nations have gracefully conducted
their relationship. France was one of the
colonial rulers of India up to even the
1960’s. For the two nations to then move
on, having recognized the development
potential of India and its emerging power
status, is a great feat.
• This is something that has failed in
the case of India-Britain and India-EU
relations.
• General information about bilateral
relations:
• France has had a great impact on Indian
polity. The ideals of liberty, equality and
fraternity in the Preamble of the Indian DEFENCE/STRATEGIC
Constitution have been borrowed from
the French. India has been constituted PARTNERSHIP
into a ‘Republic’. This word too has been • Defence industrial cooperation has
borrowed from France. been one of the mainstays of the
• India and France have been ‘Strategic strategic partnership between India
Partners’ since 1998, ever since an and France. It is cooperation in this
agreement was signed in the same year field that has boosted the relationship
between the two nations. between the two nations.
• Ever since, this strategic dialogue has
evolved to include cooperation in diverse Defence/Strategic Ties
areas such as nuclear technology, • Since the end of the Cold War, India has
defence partnership including maritime
160
signed a ‘Strategic Agreement’ with more various groups such as Islamic State
than 35 countries. But the deal signed (IS), the two nations have signed an
with France in 1998 remains unique. agreement to tackle this issue.
While many other partnerships have run • Earlier, the Cyber Security and Digital
into trouble or are clouded in differences Technology roadmap had been agreed to
over various issues, the partnership has by both the sides. This entails cooperation
been growing with France. The area of in the field of emerging technologies such
cooperation now extends to technologies as Artificial Intelligence, Super Computing
related to Nuclear energy, space, defence, and Machine Learning amongst others.
cyber security, intelligence- sharing and
counter terrorism amongst others. • Recently an Agreement between
Centre for Development of Advance
• France has supported India in its ‘Make in Computing (C-DAC) and ATOS for
India’ program and extended its support cooperation in quantum computing, AI
to all forms of defence manufacturing. and supercomputing is signed.
• France is a critical partner of the Indian • France has also been at the forefront in
Navy in its P 75I Program which seeks to terms of extending support to India on
build 24 naval submarines by 2030, 18 of many issues in the United Nations Security
which will be conventional and 6 shall be Council when nations such as China have
nuclear. time and again raised the ‘Jammu and
• The Indian Air Force has a challenge in Kashmir’ issue and abrogation of Article
terms of replacing its depleting squadrons 370 of the Indian Constitution.
of fighter aircrafts. It is here that France • France also supports India in its bid
with its strong manufacturing base in for the permanent membership of the
the aviation sector can play a critical United Nations Security Council.
role. Already many companies such as
Airbus are in the process of setting up • With the assistance and support of
their manufacturing facilities in India. France, India became a member of the
This will not only help address concerns various non-proliferation groups such as
related to National Security but also help the Wassenaar group (2017), NSG, Missile
in creation of jobs within India. Technology Control Regime (2016) and
the Australia Group (2018).
• 36 Rafale Fighter Jets will be handed
over to the Indian Air Force soon. Already, • France has also opposed many of the
during Galwan Valley dispute with Chins unsustainable projects being executed
a few jets were handed over to India. under China’s One Belt One Road (OBOR)
initiative.
• As far as the Joint Exercises between the
Armed Forces are concerned: Varuna1, Other areas that can be explored in
Garuda2 and Shakti3 have been held Strategic Partnership
regularly.
• India and France can cooperate in other
• In the field of cyber security both nations areas such as the Afghan peace deal
are victims of terrorism and recognizing which is under considerable strain as
the impact of online radicalization of the US selfishly leaves the region. Indian
1 the naval exercises have been held since 2001 interests are expected to be affected
2 the air exercises have been held since 2004 as Pakistan state sponsored terrorists
3 the joint exercise between the two armies that
have been held since 2011
run amok in Kabul and other cities. It is
161
here that India and France can step in a pact that actively roots out piracy in
along with other nations and forge a the high seas and ensures the peaceful
partnership. movement of ships and vessels in the
• Another area that is of mutual interest Ocean.
to both the nation is Iran. France • Recognizing the importance of the Indian
supported the Joint Comprehensive Plan Ocean Region (IOR), both sides have
of Action in 2015 along with the US and signed the ‘Mutual Logistics Support
other nations. India which faced the Agreement’ which would enable the
fear of attracting sanctions under the navies of both the nations to operate
US legislations ‘Countering American from each other’s naval bases in the IOR.
Adversaries Through Sanctions Act • French military bases exist in Djibouti,
(CAATSA)’ reduced its oil imports and Abu Dhabi and Reunion islands and
delayed its other connectivity projects India is in the process of building naval
in Iran. This deal in 2015 brought a sigh bases in Mauritius, Duqm (Oman) and
of relief to India. However, this was short Assumption islands (Seychelles).
lived as in 2018, the US pulled out of the
deal. India once again faces the fear of • Cooperation in multilateral bodies too
CAATSA. exists like in G-20 and Financial Action
Task Force (FATF)
• It is under such circumstances that India
which has been trying various measures • In the year 2016, India and France
to circumvent the US financial system can signed a ‘White shipping agreement’ to
try the INSTEX Barter mechanism which encourage the movement of commercial
is based out of Paris (It is a system of ships.
Barter wherein the Euros is used instead • One potential area of cooperation exists
of dollars. Iran imports goods and services in the Indo-Pacific region. France can
from those who are part of this system join the ASEAN nations and the QUAD
and pays for its imports by exporting grouping in ensuring that freedom of
goods and services). India should explore navigation in high seas is protected.
joining this initiative which was started • Both sides discussed potential
by France, Britain and Germany. cooperation in the Indo-Pacific region
• Lastly, India and France can also consider during the recent visit of the Prime
executing projects jointly in other nations Minister to France.
such as those in Africa and South Asia.
Maritime Cooperation SPACE SECTOR

• This is yet another growing area of COOPERATION
cooperation between the two countries • Closely related to the defence/strategic
with tremendous scope for cooperation. cooperation is the cooperation in the
• France is in fact one of the few nations space sector.
with whom India actively cooperates on • An Agreement between ISRO and CNES
the maritime front. for cooperation in the space sector was
• Amongst the various agreements signed in the year 2015.
signed, the Agreement on Exchange of • Ever since, the OCEANSAT 3 for climate
Surveillance Information stands out as monitoring and tracking which will host
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the French ‘ARGOS’ System was to have between the two countries is on an
been launched in the year 2020. However, upswing. Trade in 2018 was 11.52 billion
it presently remains uncertain due to the euros which was an increase of 7.60%
ravaging COVID-19 pandemic. over the corresponding year.
• The two sides have also decided to • France is the 9th largest foreign investor
launch the Trishna satellite for Thermal in India.
Infrared imaging and France has also • Further, 39/ 40 companies listed on the
extended support for ISRO’s missions to French stock exchange are conducting
Mars and Venus. their business operations in India.
• Recently, the two sides also released • The lack of an FTA with the larger
the ‘Joint Vision for space cooperation’ European Union has curtailed the full
which permitted the launching of micro- expansion of economic ties between
satellites for maritime surveillance in the India and France.
IOR. In pursuance of it, the launch of 8-10
satellites for surveillance of the IOR has • France which is an important nation in the
been planned. EU can play a crucial role in concluding
the deal which would not only help India
• ISRO and CNES have also signed but also Europe.
an agreement on training and bio-
astronautics related to Mission • France has also been trying to attract
Gaganyaan, the manned space mission Indian investments from Britain. The
programme of India, due to be completed latter serves as a gateway to Indian
by 2022. companies wanting to operate in Europe.
Post BREXIT, France hopes to become
• In the past, France has also helped ISRO the new gateway for these companies.
pursue its GSLV program. This is a launch
vehicle for heavier satellites. • India is the fourth largest foreign investor
and the second largest job creator in
• One potential area that the two countries the UK and France which is witnessing
can further cooperate in the trade of an economic slowdown hopes to
various space related products. benefit after BREXIT from these Indian
• The ISRO’s rate for satellite launches is investments.
one of the cheapest in the world and the • France also supports India on various
French academia and industry can avail developmental initiatives such as the
these services. This is yet to be marketed Smart Cities Program. Presently, France
diligently by the Department of Space is supporting the building of Chandigarh,
and IND Space. Nagpur (Maharashtra) and Puducherry
• France can also push the European as smart cities.
Union to confer the ‘allied navigational • Also, recently the Indian Railway Station
system’ to NAVIC and can further extend Development Corporation and French
the interoperability with the EU’s Galileo National Railways and AFD (a French
navigation system. aid agency) signed an agreement
for the railways station development
ECONOMIC COOPERATION programme in India.
• Despite not having a Free Trade • The two sides also decided that by 2020,
Agreement (FTA), the bilateral trade 1 million tourists from India and 335,000
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tourists from France will be encouraged

to visit each other’s nations. However, air
CONCLUSION
travel has come to a standstill after the India and France both share the same
COVID-19 pandemic and has cast doubts vision for a new balanced multipolar world,
on the achievement of this feat. which must be based on the rule of law.
They also share the same vision on the main
• The resumption of air travel and the ‘air challenges of the times, be they security
corridor and air bubble arrangements’ developments in Asia and the Indo-Pacific,
offer a glimmer of hope. However, its or combating international terrorism. So the
effectiveness is yet to be seen. cooperation between India and France at
multiple levels can create a new world order
for the common benefit of the international
ENERGY COOPERATION community.
• The two nations have signed the ‘Civil
Nuclear cooperation agreement’ and PROBABLE QUESTIONS
cooperation in nuclear energy has
increased after the Nuclear Suppliers 1. France has assumed Russia’s position
Group (NSG) granted a waiver to India in in the scheme of Indian Foreign Policy
2006. objectives in recent times. Comment
• France has agreed to construct six nuclear 2. The defence/strategic cooperation
reactors in India for civilian purposes. remain the mainstay of the Indo-French
relations. Critically examine.
• France and India also launched the
‘International Solar Alliance’ in the 3. Indo-French cooperation in the field
year 2015 after the signing of the Paris of sustainable development lags
Agreement. behind India’s cooperation with other
nations such as Germany and Sweden.
• This would not only help India but also
Comment
other nations transition to cleaner sources
of energy and fight the disastrous effects 4. Online radicalization poses a common
of climate change. threat to both India and France. In this
• India and France can also take the lead regard, examine the cooperation in the
and fill the void created due to the exit of field of counter-terrorism between the
two nations.
the US from climate change negotiations.
With allied interests, the two nations can
ensure that the world remains safer and
cleaner.
• There needs to be more cooperation in
the field of sustainable development
between the two countries. It is an area
that is less explored. India’s cooperation
with Germany, Norway and Sweden in
this area far outstrips India’s cooperation
with France.
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CHAPTER - 26
INDIA-JAPAN RELATIONSHIP
INTRODUCTION • The relationship between the two

countries could however not take off
• India and Japan, the two democracies fully due to ideological differences which
have many converging interests which existed. Japan was an ally of the US
expands the scope for cooperation in during the era of the cold war, whereas
many areas. India adopted a policy of non-alignment.
• The ties between the two countries go • Post USSR disintegration saw the
beyond cooperating in matters of mutual improvement of relations between India
interests. and US. This in turn influenced India’s
• The friendship and goodwill which exists relations with many pro-US nations such
between the two nations is overwhelming as Japan and Israel.
and a model for the rest of the world. It • Japan and India signed a peace treaty
is the partnership between two Asian and established diplomatic relations in
giants. April 1952. This treaty was one of the first
peace treaties Japan signed after World
HISTORICAL RELATIONS War II.
• The friendship between India and • Ever since the establishment of diplomatic
Japan has a long history rooted in relations, the two countries have enjoyed
spiritual affinity and strong cultural and cordial relations. In the post World War II
civilization ties dating back to the visit period, India's iron ore helped a great deal
of Indian monk Bodhisena in 752 AD. Japan's recovery from the devastation.
So, Buddhism entered Japan from India
through China and Korea during the 6th CULTURAL TIES
century AD.
• The government of Japan is helping
• In contemporary times, prominent India restore the ancient Nalanda
Indians associated with Japan were University in Bihar. For the past few
Swami Vivekananda, Nobel laureate decades, Japan has also been offering
Rabindranath Tagore, entrepreneur JRD aid for the maintenance and restoration
Tata, freedom fighter Netaji Subhash of the Ajanta and Ellora caves, a world
Chandra Bose and Judge Radha Binod heritage site declared by the UNESCO in
Pal. Aurangabad, Maharashtra.
• Nationalist leaders like Netaji Subhash • The poetry and writings of Rabindranath
Chandra Bose established contact with Tagore have been translated and are
the Japanese Government and sought popular in Japan.
their assistance in the fight against British
in India. That did not materialize though. • Indian movies are a massive hit in Japan.
Actor Rajnikanth is a revered personality
165
in Japan with many of his movies being a Abut CEPA

box office hit. Bollywood too has had its • It is the most comprehensive of all
share of supporters in the island nations. such agreements concluded by India
and covers not only trade in goods but
ECONOMIC RELATIONS also Services, Movement of Natural
Persons, Investments, Intellectual
• Trade: In FY 2019-2020 India-Japan Property Rights, Custom Procedures
bilateral trade reached US$ 15.71 billion. and other trade related issues.
Exports from Japan to India during this
period were US$ 10.97 billion and imports • The CEPA envisages abolition of tariffs
were US$ 4.74 billion. over 94% of items traded between
India and Japan over a period of 10
• In terms of Japanese exports, India by years.
1920s became the fifth largest market
after China, the United States, Hong • The beauty of CEPA is that some 17.4 %
Kong and the United Kingdom. of the tariff lines have been offered for
immediate reduction of tariff to Zero
• With no regular bank facilities for percent by India while Japan side has
transactions, both the countries were put 87 percent of its tariff lines under
using barter system in lieu of the present immediate reduction to zero.
system of their trade settlements.
• Investment: Japan ranks third now among
the major investors, which is also highest
as a single country investment source.
Japanese FDI into India has mainly been
in automobile, electrical equipment,
telecommunications, chemical and
pharmaceutical sectors.
• India has been ranked as the one of the
most attractive investment destinations
in the latest survey of Japanese
manufacturing companies, conducted DEVELOPMENT
by the Japan Bank for International
Cooperation. COOPERATION
• The number of Japanese affiliated • Since 1958, India has been a major
companies in India has grown significantly recipient of Japanese Overseas
in recent years. As of October 2017, there development assistance (ODA). Japan’s
were 1,369 Japanese companies that are assistance to India has been strategic in
registered in India. Similarly, number of nature.
Indian companies working in Japan is • Japanese ODA supports India’s efforts
also increasing with number now crossing for accelerated economic development
more than 100. particularly in priority areas like power,
• The two nations signed the transportation, environmental projects
Comprehensive Economic Partnership and projects related to basic human
Agreement in 2011 which helped in needs.
boosting bilateral trade. • Some of the developmental projects
166
currently being executed with Japanese support the right of nations to peaceful
assistance include: navigation in the high seas.
Delhi Metro Rail Corporation projects • China has been dealing with its dispute’s
Western Dedicated Freight Corridor vis a vis Japan and India in the East
project China sea and border dispute with
India respectively, in an aggressive
Delhi-Mumbai Industrial Corridor and irresponsible manner. Their recent
(estimated at USD 70 Billion) actions in the Galwan valley and the
Mumbai-Ahmedabad High Speed South China Sea are examples of this
Railway project irresponsible behaviour.
Development of the Andaman and • The two nations are also discussing
Nicobar Islands launching the Afro-Asian Sea corridor
Various other developmental projects project which seeks to fund various
being undertaken in the states of developmental projects across nations
North-East India in the two continents. Many see this as a
project that is a counter to the One Belt
Various other initiatives such as Smart One Road project.
City Project, Skill India Mission and
Digital India amongst others. • India and Japan participate in the
Malabar Naval exercises along with the
• China has objected to Japanese funding US. In recent times, the two countries are
for various projects in the North-Eastern also part of the QUAD along with the US
states of India due to certain geo-political and Australia.
fears.
• Japan has also agreed to sell its naval
search and rescue aircrafts to India.
DEFENCE/STRATEGIC • India and Japan are already working
together in Bangladesh and Sri Lanka
RELATIONS and jointly executing projects. The
• In 2008 both the countries issued Colombo port city project is one of
"the Joint Declaration on Security the projects where the two nations are
Cooperation between Japan and India". working together.
• India and Japan are strategic partners. • India and Japan signed an “Acquisition
During Prime Minister Narendra Modi’s and Cross-Servicing Agreement” that
visit to Japan in 2014, this was subsequently would allow the militaries of the two
upgraded to that of a ‘Special Strategic countries to exchange supplies and
and Global Partnership’. services on a reciprocal basis during
• As part of the Institutional framework, exercises in which both participate, U.N.
the two countries have the 2+2 Dialogue and humanitarian assistance operations
mechanism. In this, the Defence and etc.
Foreign Ministers meet and discuss issues • Finally, Japan has approached India to
of mutual concerns, at regular intervals. train its armed forces to secure Tokyo
• China Factor: Japan faces severe threats ahead of the Olympics that are expected
from China in the East China Sea and to begin in 2021.
the South China Sea. It threatens their
strategic interests. India and Japan
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POLITICAL COOPERATION INDIA-JAPAN DIGITAL

• India and Japan, being democracies and
giants in Asia, share a common world
PARTNERSHIP (IJDP) AND
view of most things. Both are aspiring
to become permanent members of the
START-UP HUB
United Nations Security Council (UNSC). • A “India-Japan Digital Partnership”
They support each other in this regard. (I-JDP) was launched to Japan in October
2018. It aims to furthering existing areas
• They are part of the G-4 forum, of cooperation as well as new initiatives
comprising Germany and Brazil too. The within the scope of cooperation in
four nations support each other in their S&T/ICT, focusing more on “Digital ICT
bid for a permanent seat at the UNSC Technologies”. This also incorporates
and also adopt a joint stand as far as setting up “Start-up Hub” between India
UNSC reforms are concerned. and Japan.
• Japan and India, together support the • Startup-India (under Invest India) and
development of south Asian nations. Japan Innovation Network (JIN) have
They do so being wary of the growing signed a MoU on innovation collaboration
Chinese threat to both the nations. It is with a focus on SDGs (Sustainable
up to these two Asian giants to shape the Development Goals) connecting two
future of a peaceful Asia. start-up eco-systems.
• The two nations are also part of various
bilateral groupings such as the World
Trade Organization (WTO), East Asia PEOPLE TO PEOPLE
Summit and the G-20.
CONTACT
• Both the nations have a strong and stable
• Approximately 34,348 Indians live in
leadership at present and hope to further
Japan. More and more Indian community
and cement the ties.
including IT professionals and engineers,
S&T researchers working for Indian and
ENERGY / NUCLEAR Japanese firms.
• The Indian community lives harmoniously
COOPERATION with the neighbours and has developed
• A civil nuclear deal with Japan has been relations with local governments to
signed in 2016. This deal will permit become valuable members of the
American companies like Westinghouse Japanese community.
and General Electrics to manufacture • The Nishikasai area in Tokyo is emerging
nuclear reactors in India. as a “mini-India”. Their growing numbers
• Six nuclear reactors are being planned to had prompted the opening of three
be built in the state of Andhra Pradesh. Indian schools in Tokyo and Yokohama.
Both these companies have substantial
Japanese investments in them. Japan
would give India cutting-edge technology. CHALLENGES
• Japan has also expressed its interest • In spite of CEPA India Japan trade it has
to invest in various renewable energy not produced the anticipated results. The
projects in India. bilateral trade has been rather slow. For
168
the period 2018-2019, the total bilateral

trade is USD 17.63 Billion.
WAY FORWARD
• Both sides have clearly moved beyond
• There are certain concerns that the the era of benign neglect. Bilateral ties
Japanese companies have highlighted in the past two decades have evolved
regarding the ‘Ease of Doing Business’ in to a degree of maturity, with significant
India and the slow pace of approvals for consequences for strategic equations on
their investments in India. the Asian chessboard.
• Both had diverging interest with respect to • Japan seeks to promote its investments
economic issues like on E-commerce rules in a stable nation. India is the ideal nation
(Osaka track), Regional Comprehensive for it. With an average economic growth
Economic Partnership etc. rate of 6.5% for the past 10 years, it offers
• Both nations were also part of the a huge market for finished Japanese
Regional Comprehensive Economic products. The new manufacturing policy
Partnership (RCEP) agreement till of 2012 initiated by the Government of
November 2019. India pulled out of the India, seeks to increase the contribution
agreement due to various concerns. But of the manufacturing sector to the GDP
Japan immediately supported India’s from the existing 12 % to 25% by 2022.
actions and a discussion is expected on • It also hopes to create 100 million jobs
this issue during the next annual dialogue in the sector. Japanese investments are
summit. going to be a key to the achievement of
• The China factor contributes to the this.
strategic planning in both the nations. • Both sides also agreed to establish the
China realizes that it is India and Japan ‘India-Japan Investment Promotion
who can stop its misadventures in the Partnership’. PM Abe pledged to realize
region. To tackle this, it has propped public and private investments worth JPY
up two irresponsible nations in the 3.5 trillion and doubling of the number of
neighborhood, Pakistan, and North Japanese companies in India over the
Korea. next five years.
• Over civil nuclear deal, there is a basic • Japan has an ageing population with
disagreement on the approaches of the almost 23% of its population in the
two counties. Japan looks the nuclear category of 65 and above, whereas India
cooperation purely from strategic angle, is experiencing a demographic dividend
while India sees it from an economic with almost 65 % of its population in the
perspective and considers Japan’s category of 15-60. Japan has a major
approval of a nuclear deal important for problem of shortage of labour, whereas
going ahead with installation of nuclear India has to create more and more jobs.
power plants. This is primarily because
Japanese companies enjoy a monopoly • A section of Indian scholars also believes
over certain key components including that the CEPA between India and Japan
“reactor vessels” required for nuclear would act as a “counterbalance” to
reactors. China. For many countries in the region,
enhanced trade and investment relations
• There is lack of visionary policy and no between Japan and India would act as a
concrete action on projects like Asia counterbalance to the growing influence
Africa Growth Corridor, despite it being of China.
signed in 2017.
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CHAPTER - 26
INDIA-SOUTH KOREA RELATIONS

Introduction election. It was also an Indian sponsored
• It is only natural that India and Korea resolution which ended the conflict
– democracies with similar values, between the two sides (North and South
aspirations and capacities – strengthen Koreas). Lt. General KS Thimayya headed
their ties on the political, defense, the UN appointed committee to oversee
economic, cultural and people-to-people maintenance of peace in the Korean
fronts. Peninsula.
• In recent times, the relations between • Other than Buddhism which unites the
India and South Korea are on an upward two nations, popular culture seems to be
swing. The relations appear to be most on the rise. Korean Pop music and serials
impactful in the areas of economic and are popular not only in the north eastern
cultural relations. states of Manipur and Mizoram but also
in Tamil Nadu.
• South Korea is an integral nation to India
for its development and friendship. It is • Nobel laureate Rabindranath Tagore
an important component of India’s ‘Act- composed poem ‘Lamp of the East’ in
East Policy’. 1929 about Korea’s glorious past and its
bright future.
• In the year 2015, during Prime Minister
Narendra Modi’s visit to Seoul, the • A Korean cultural center was opened in
two countries decided to upgrade New Delhi in 2013.
their relations to a ‘Special Strategic
Partnership’.
PEOPLE TO PEOPLE TIES
• There exists several Joint Committees • The total number of Indian nationals
between the two nations related to living in South Korea is estimated to be
Science and Technology, Finance and around 11,000, which includes 120 PIOs.
Culture amongst others.
• Around 1,000 Indian scholars are pursuing
postgraduate and Ph. D programmes,
CULTURAL RELATIONS mostly in pure sciences in Korea. During
• Relations between the two nations date the past few years, many professionals
back to 48 AD, when an Indian princess mainly in the areas of IT, shipping and
from the city of Ayodhya (Uttar Pradesh) automobile have immigrated to South
is said to have travelled to Korea taking Korea. They are working mostly with
the sea route. Buddhism entered Korea Samsung, LG, Hyundai TATA Daewoo
through China from India. and TCS.
• In modern times, it was Foreign • India is also a popular study destination
Secretary, KPS Menon who headed an for South Korean nationals and a large
UN commission tasked to oversee an number of Indians are also employed in
170
the various companies and Start-ups in • South Korea can play a major role in
South Korea. initiatives such as ‘Make in India’, ‘Skill
• However, the people-to-people ties is India mission’, Sagarmala project etc.
lacking the warmth and will need to • South Korea has industrialized after
be worked upon. Various unfounded the conflict and currently their excess
stereotypes need to be done away with. capital and cutting-edge technology
can help India in the development of its
manufacturing sector. It will also assist in
ECONOMIC RELATIONS the creation of jobs.
• India and Korea are the third and fourth • Being developed country Korean
largest economies in Asia and share companies are appreciated for their
a strong bond of friendship based on innovation and strong manufacturing
shared commitment to the values of capability. So, South Korea is a key
democracy, open society and liberal nation in the achievements of the Skill
international economic order. India Mission.
• Ever since the Indian Economy opened • Koreans are hesitant in partnering with
up by introducing reforms in the year local firms and should be given exclusive
1991 and the Asian financial crisis of 1997, access to ports and asked to develop
economic relations between the two it. PM Narasimha Rao did that in 1996
sides have continued to expand. to certain Korean firms. FDI of 100 %
• A Comprehensive Economic Partnership was permitted for Korean companies.
Agreement (CEPA)was signed between Currently, Korean companies are involved
the two sides and it came into effect in in ship building in the Goa Shipyard.
2010. Let us explore some important • During his visit to South Korea, PM
points: Modi gained the support of the Korean
• Bilateral Trade: Trade between the two investors in the Smart cities project and
sides stood at USD 17.3 Billion during April Housing for all projects.
2019-January 2020. Items of trade include • Currently, all efforts are being taken by
unrefined metals, raw materials and food the Government of India to improve its
items. Imports from South Korea stood ranking in the Ease of Doing business
at USD 13.2 Billion and exports stood at report and this will definitely improve
USD 4.08 Billion. Korean investments into India.
• Investment: South Korea ranks 16th • Indian companies are hopeful of gaining
in terms of FDI equity inflows to India. more access to Korean markets. This has
South Korean Investments have totaled been a concern among Indian investors.
USD 4.5 Billion in the period from 2000-
2020. In 2016, the Government of India • In 2017, an Agreement for Overseas
set up a platform called the Korea Plus Development Assistance was signed
to streamline Korean investments into between the two countries. South Korea
India. pledged USD 1 billion in assistance and
agreed to invest in the Mumbai-Nagpur
• Korea’s Presence in India: More than 500 Expressway project in Maharashtra
Korean companies, including Samsung, and other projects in the states of
LG and Hyundai, have operations in Chhattisgarh and Telangana.
India.
171
DEFENCE / STRATEGIC independence in 1945.

• As mentioned before, the two countries
PARTNERSHIP are Special Strategic Partners. High level
• India is exploring the possibility of buying political visits are a regular feature of this
Minesweepers from South Korea. The relationship.
two sides have also agreed to increase • The two sides can also cooperate in
the cooperation between their armed multilateral organizations like the Asian
forces. The positions and interests of the Infrastructure and Investment Bank
two nations vis a vis China and Japan (AIIB), East Asia Summit and the G-20.
seem to be divergent.
• Though the two countries appear diverse,
• The two sides signed a civil nuclear there is potential for further cooperation
cooperation agreement in 2011. Despite between the two countries. India has a
India not having signed the NPT or the lot to learn from this nation that used
CTBT, South Korea has gone ahead and its technological prowess to contain the
reaffirmed its trust and faith in India’s COVID-19 virus.
nonproliferation record by signing this
agreement. India is yet to assign a site
for the production and operation of a CHALLENGES
nuclear reactor by South Korea. • There is a feeling that non-tariff barriers
• An Inter-Governmental MoU was inked are being erected against Indian
between two countries to partner in agricultural exports by South Korea.
naval ship building in 2017. • Korean businesses are hesitant to invest in
• State-owned Hindustan Shipyard Ltd. India owing to the regulatory framework
(HSL) will collaborate with Hyundai and bad ranking of India in the ease
Heavy Industries Co. Ltd. of Korea for of doing business scale. South Korean
defence production under ‘Make in India’ projects such as those undertaken by
program. POSCO in Odisha have been struck since
2005.
• A contract between L&T of India and
M/s Hanwha Techwin of Korea has been • According to Korea Trade Investment
signed for production of one hundred Promotion Agency (KOTRA), about 88%
tracked self-propelled 155mm/52 calibre of all Korean subsidiaries established
artillery guns ‘K-9 Vajra’ for Indian Armed in India are wholly-owned while
Forces. approximately 11.3% are joint ventures.
The Korean model of investment of working
• Both countries have agreed to through wholly-owned subsidiaries is in
collaborate in maintaining peace and contrast with the Japanese model which
stability in the Indo-Pacific region. There followed the typical process of technical
is regular security dialogue between tie ups participation as minority stake
India’s National Security Adviser and the holders expansion of stakes.
intelligence agencies of Korea.
• More than eight years into its existence,
the Indian Chamber of Commerce in
POLITICAL COOPERATION Korea (ICCK), is struggling to find its
• India played an important and positive due space in promoting economic and
role in Korean affairs after Korea's business ties and spends most of its time
172
organising social and cultural events. A can bring their know-how, technology
new, empowered commerce body is the and business models that are required to
urgent need of the hour. build environment friendly infrastructure
facilities.
WAY FORWARD
• The financial crisis prompted the Korean
manufacturers to look for other stable
markets for their products; India too was
keen to attract investments to spur the
growth of its stagnant economy. This
proved to be mutually beneficial to both
sides.
• Korean companies are committed to
undertaking CSR activities in the right
earnest and emphasised that CSR
presents a huge opportunity for them
to earn corporate goodwill and address
social development gaps of the nation.
• The bilateral relations shall move towards
stronger pragmatic engagement with
Seoul, harnessing synergies in their
mutual pivots across the Indo-Pacific
region. Similar to Korea, which has
announced its “New Southern Policy”.
• There is scope for cooperation in the field
of tourism. This potential is yet to be fully
realized.
• Indian bright young military officers are
also studying at each other’s military
academic and related institutions for the
first time on an institutionalized basis of
exchange annually. They will recognize
the opportunities and potentials our
India-Korea partnership offers.
• The South Korean experience in ship
building is well known. India can involve
the nation as part of its Sagarmala
project, which intends to use the inland
waterways and ports as instruments of
economic growth
• Korean companies having expertise
in sustainable architectural & design,
professional engineering services, etc.
173
Unit - 5
India and Global South
28. India-Australia
29. India-Africa
30. India-Latin America and Caribbean
31. India-Brazil
174
CHAPTER - 28
INDIA-AUSTRALIA RELATIONS
INTRODUCTION • It was only with the disintegration of the
former USSR in 1991 that India improved
• The relations between India and Australia
its relations with the US and its other
have been like that of a see-saw until
allies such as Japan, South Korea, ASEAN,
recent times. At times, the relationship
Israel and Australia. India reached out
has grown to great heights and other
to Australia and a vibrant cooperation
times, it has faced various issues and
began.
deteriorated. In recent times, however,
the ties have been greatly enhanced and • However, this was halted when Australia
it is in a state of upswing. sanctioned India after the 1998 Pokhran
Nuclear Tests. Australia which has
• The two nations have much in common,
always depended on the US for its
underpinned by shared values of a
security opposed India which wanted to
pluralistic, Westminster-style democracy,
build its own security apparatus. India’s
Commonwealth traditions, expanding
nuclear policy which emphasizes peace
economic engagement and increasing
and deterrence fell on deaf ears.
high level interaction.
• It finally took over ten years for both
• Recently the two sides decided to upgrade
the nations to re-start this cooperation.
their ties to that of a Comprehensive
It led to the signing of the ‘Strategic
Strategic Partnership. Australia is one
Partnership’ Agreement in 2009. But, this
of the few nations with whom India has
was immediately dented by the numerous
signed this Comprehensive Strategic
attacks on Indian students studying in
Partnership. This partnership will involve
the Australian universities.
cooperation in multiple areas from
defence, minerals, education, and culture • Australian Society’s racism was exposed
amongst others. and the cooperation between the two
countries weakened. It was only in 2015
that the relations got back on track
HISTORY OF THE and in recent times, it has only grown in
strength and character.
RELATIONSHIP
• The signing of the Comprehensive
• The two nations were British colonies and Strategic Partnership is only expected
gained independence from the same to increase the cooperation between the
colonial master. However, this ended the two sides.
similarity between the two nations. After
India’s independence, its foreign policy
embraced a path of Non-Alignment PILLARS OF COOPERATION
and refused to join either of the camps • India-Australia cooperation expands into
during the Cold War. Australia on the multiple areas. However, in recent times,
other hand became a firm US ally. the cooperation can be narrowed down
175
to broadly four important areas. They are that India will need in its development
the following: process. Over half of the electricity
generated in India is through thermal
Economic Cooperation power plants that utilize coal.
• India is Australia’s tenth-largest trading • During the recent virtual summit, the
partner. The economic partnership two nations did sign a Memorandum of
between the two nations appears to Cooperation (MOU) in the field of mining
be promising in terms of potential for and processing of critical strategic
growth. For the year 2018-19, the bilateral minerals.
trade stood at USD 30.3 billion and the • The two nations have also signed the
bilateral investments for the year 2019 Civil Nuclear Cooperation Agreement
stood at USD 30.7 billion. in 2014. Australia has agreed to supply
• Australia is also hoping to further Uranium to India after this agreement for
enhance its partnership with India to cut its civil nuclear agreements. This was a
down on its reliance on China. Over 26% great achievement for both the nations
of its trade is with China and the latter as Australia had once sanctioned India in
has recently curbed trade with the former 1998 for its nuclear tests.
to punish it for demanding an enquiry • The two sides also decided to elevate
into the origins of the COVID-19 virus. their 2+2 Strategic Dialogue to that of
This has promoted closer cooperation a Ministerial level. Australia is the third
between India and Australia. nation with whom India has started this
• In 2018, Australia announced ‘an Indian 2+2 Strategic Dialogue. It signifies that
economic strategy to 2035’ which is India recognises these nations as critical
based on - 3 pillars (economic ties, to its partnership and seeks to build
geo-strategic engagements, rethinking greater relations with them.
culture- thrust on soft power diplomacy), • The issues of terrorism and humanitarian
10 sectors and participation of 10 Indian issues have necessitated stronger
states. Specific sectors and specific cooperation between the two nations.
states have been identified. India too They have signed the ‘Mutual Legal
has launched its Australia Economic Assistance Agreement’ and the Social
Strategy. Security Agreement to fortify their
• The two countries are currently cooperation in this regard.
discussing a Comprehensive Economic • The two nations have signed an
Cooperation Agreement (CECA) which Agreement to tackle the issues of cyber-
will provide greater market access to crimes and enhance cyber security.
exporters of goods and services.
• The threat of China has prompted the
two nations to draw closer cooperation.
Defence/Strategic Relations China has irresponsibly behaved in the
• It is in this sector that the two nations are last few decades. The South China Sea
cooperating actively. There are multiple dispute and the following verdict of the
reasons for this. International Court of Arbitration has
not been followed, its aggression in the
• Primarily, the Australian continent is
region has now extended to capturing
filled up with resources such as uranium
small islands after provoking conflicts,
and coal. These are two critical elements
176
aggressive overtures towards Taiwan and areas such as agricultural research,

other irresponsible acts. nanotechnology, renewable energy. This
• China has also threatened the movement now needs to be revitalized to focus on
of ships in the South China Sea. It is COVID-19 specific research and other
in this regard that India and Australia areas.
have launched the Joint Declaration on • The threats from Climate Change are
maritime cooperation in the Indo-Pacific now well known. The fortunes of India
region. It seeks to ensure the freedom of and Australia are interlinked. Ex: the
peaceful navigation in high seas. phase of El-Nino brings droughts to India
and floods in Australia whereas in the
case of La Line, it is the opposite.
• It was only last year that there were
massive bushfires in Australia and floods
in India. The two nations should tackle
this immediately and conduct research
to mitigate the effects of climate change.
Research and development in the field of
agricultural technology, water technology
etc will yield positive results.
• In 2013, Australia released a White paper
on defence in the Indo-Pacific region Diaspora
and made India, central to the prosperity
of this region. • It is the diaspora that has actively nurtured
the relations between the two nations.
• Further, recently the QUAD grouping also There are over 7 lakh Indian staying and
consisting of the US and Japan apart working in Australia. Many of them have
from India and Australia re-affirmed become naturalized Australian citizens
their views to ensure that peace prevails and contribute to the development of
in the Indo-Pacific region and China’s ties between the two nations.
aggressive measures are controlled.
• There are also over 1 Lakh Indian
• The two nations also cooperate in forums students who form a large chunk of the
such as the East Asia Summit. With international students in Australia. They
India’s non-permanent membership of contribute to the Australian GDP.
the UNSC, there is scope to widen this
cooperation to include other areas. • During the recent virtual summit,
Australia also announced that it will soon
establish Sports Universities in India.
Science and Technology
• Australians are experts in sports such as
Cooperation Tennis, Rugby, Hockey and Cricket and
• The cooperation in this sector appears their expertise in the field of sports and
to be far below potential. It should be sports medicine will benefit India.
focused on.
Concerns
• An Australia-India Strategic Research
Fund (2006) has been set up; the two • Comprehensive Economic Cooperation
countries have identified a number Agreement: The failure to negotiate and
of collaborative research projects in conclude the CECA has been one of
177
the irritants in the relationship. During General Agreement on Trade in Services

the recent bilateral summit conducted (GATS)
virtually, both sides have decided to re- India’s core strength lies in its Services
start the stalled negotiations over this sector. The General Agreement on Trade
treaty. in Services (GATS) has prescribed four
• Australia’s Visa regime: One of the major modes of consumption.
issues remains Australia’s reluctance to • Mode 1: Cross border supply. This
provide a liberal visa regime for Indian involves supply of one’s services without
nationals employed in the various service moving across national boundaries. For
sector industries such as bio-technology, example: if an Indian teacher provides
IT etc. his/her services to students in the US
• GATS: In Mode 4 that India has been through IT, then this will mean cross
trying to negotiate with Australia and border supply.
other nations. India wants to enable • Mode 2: Consumption abroad. In this,
the easier movement of these natural the beneficiary moves across to the
persons. Its failure has resulted in India other nation to consume the services.
moving out of these agreements. It is one For example, Indian students enrolling
of the primary reasons; India even left in universities in Switzerland.
the Regional Comprehensive Economic • Mode 3: Commercial Presence. In this
Partnership Agreement. Australia is case, the service provider re-locates
hopeful of convincing India to re-join this to the nation of the beneficiary. For
pact. example, foreign universities setting up
• India cannot open up its markets when their branches in India.
nations stop providing an easier and • Mode 4: Movement of natural persons.
liberal visa regime and social security In this case, the service providers move
schemes. across national boundaries to provide
their services to the beneficiaries.
For example: IT companies sending
their personnel abroad on short term
projects.
GATS operates under the mandate of the
World Trade Organization (WTO).
• Challenges of Indian Economy: India
is too complicated for its growth story
to be linear. Australia has skepticism
about India’s economic progress which is
constrained by the political compromises,
an interfering bureaucracy, corruption
etc.
• Attack on Indian Students: The attacks
on the Indian students in Australia spoilt
the relations between the two sides in
the last decade.
178
• Lack of Strategic Coherence: The • Indian diaspora in Australia is one of the

two nations are actively trying to build largest and fastest growing diaspora. This
cooperation in the Indian Ocean Region. But Diaspora can play a big role to enhance
there is no coherent Indo pacific strategy as the partnership by creating personal
countries do not have one definitive vision links, in business, arts, education, politics
for the region. It is largely seen as global and civil society.
construct to arrest China’s rise.
• India should also pursue this option to
explore rare earth minerals. It is critical to
THE ROAD AHEAD manufacture electronics. India-Australia
cooperation in this regard can be
• It is abundantly clear that the relations
mutually beneficial as both the nations
between the two nations are bound to
cut down their reliance on China in the
grow and grow by leaps and bounds.
economic sphere.
There is tremendous potential for growth
in ties between these two nations in the • It may be testing times, but a post
economic sphere and continuous efforts COVID-19 world order will see closer
are needed to nurture it. relationships between the two nations.
• India is the most important nation in
Indian Ocean Region and it plays a PROBABLE QUESTIONS
critical role in this region. Cooperation
1. Australia-India economic relations
with Australia to tackle issues of
are mutually beneficial in view of the
Chinese aggression and combat piracy interests of both the nations to cut down
is mutually beneficial. India-Australia their reliance on China. Comment
needs to formulate a comprehensive
shared Indo pacific vision which ensures 2. Australia’s expertise in Sports can
inclusivity, transparency, openness and a assist India in nurturing a sector that
rule-based order. will provide tremendous opportunities
for it in the socio-economic sphere.
Comment
179
CHAPTER - 29
INDIA-AFRICA RELATIONS
INTRODUCTION gifted with people who have the ability

to toil in the hard sun. Due to natural
• The Indian Ocean Region (IOR) connects and human resources this continent has
the African Continent and India. Africa, always attracted the invaders.
which is the second largest continent in
the world, has 54 nations and India shares • Strategic Location: The continent is
good relations with all these nations. sandwiched between the Indian Ocean
Further, the Government has decided to and the Atlantic Ocean. So, it is located
establish another 18 diplomatic missions in a strategically important location.
in the African continent. This is expected • Economic Growth- The economic growth
to enhance India’s outreach in the of the continent that is estimated to be
continent. 3.2 per cent in 2019. It also houses six of
• Ever since the India-African Union Summit the world’s fastest growing economies as
of 2015, the relations have been in a state per world bank estimates.
of upswing. Recently, India has been at
the forefront in providing assistance
during the COVID-19 pandemic and
in February had organized the African
Defence Ministers conclave.
• The fourth India-African Union Summit is
slated to be held in the virtual medium in
2020.
• In this module, let us understand the
importance of Africa, India’s relations
with Africa and the future potential of
this relationship. INDIA’S RELATIONS WITH
AFRICA
WHY IS THE AFRICAN • India Africa relations are date back
CONTINENT IMPORTANT? to pre-independence era and were
strengthened during the national
• Natural Resources: It is bestowed with independence movement of India.
natural resources. The continent is
bestowed with mines and minerals such • After India’s independence India’s non-
as diamonds, gold, platinum and various alignment policy, anti-colonial, anti-
other forestry products which are critical racist stand and establishment and
to the rest of the world. survival of modern ideals of secularism,
development brought India Africa even
• Human Resources: The continent is closer.
180
• In the 21st century, India has emerged billion in next five years.
as an important global economic The bilateral trade between the two
and political actor and increasingly, a nations is USD 62 billion as of 2018.
significant partner for Africa. However, the trade between Africa
• Historical: and China is a little less than USD 200
During this colonial period, the people billion.
were discriminated against by the • Line of Credit:
Europeans, only because of the colour. India has extended a Line of Credit
It was here that Mahatma Gandhi worth USD 10 billion spread over 100
fought for the rights of not only the projects in 41 nations. This involves
Indian community members but also projects related to skill development,
those indigenous people in South IT development, solar energy projects
Africa. His actions not only inspired and more.
the people of South Africa (Nelson
Mandela) but also those in Ghana that It is a sensible attempt to de-risk private
included Kwame Nkrumah. sector operations in the continent.
• India acknowledges that Africa is Rising: • Investment:
From an Indian perspective Africa is not Along with trade, Indian investment
a “hopeless continent” as suggested by in Africa has markedly increased in
the economists a decade ago, rather recent years. India is the fifth largest
“it possesses all the prerequisites to country investing in the continent, with
become a major growth pole of the investments over the past 26 years
world.” The latest statistics suggest amounting to $54 billion.
that Africa’s economic output has Indian investors have been most
almost tripled since 2003. active in the areas traditionally
• Political: considered to be India’s comparative
advantage, such as agriculture, ICT,
The idea of a shared historical communications infrastructure and
experience marked by Western petroleum refining
exploitation is an important factor in
the relationship. India as a previous • Defence:
British colony shares a history of anti- Defence is emerging as a new area for
colonial struggle with Africa. cooperation. Recently, India launched
India continued to inspire the African the African Defence Minister’s
nations after its independence. Conclave in February 2020. India can
It adopted a Constitution that expand its defence exports to Africa.
emphasized democracy amongst There has also been an increased
other features presence of African delegations at
• Economic: Indian defence exhibitions such as
Defence Expo and Aero India in
Trade between India and Africa has recent years.
increased more than eight-fold in last
decade, making India Africa’s fourth- Indian soldiers play a critical role in
largest trading partner. It further has the UN Peacekeeping Operations in
the potential to grow threefold to $150 Africa. Ex: Indian peacekeepers in
181
South Sudan received prestigious UN India’s Developmental initiatives in Africa

medal. • Indian Technical and Economic
In 2016, India and the US have Cooperation (ITEC): This aims at
agreed on a framework to train the capacity building, skill development,
Peacekeeping soldiers belonging to transfer of technology and sharing of
Africa. This process has collaborated. experiences with the partner countries.
Under this, African policemen are
• Strategic:
being trained in India, students have
African nations also play an got scholarship to study in India and
important role in the Indian Ocean more such facilities.
Rim Association (IORA). The safety of
• Supporting Indian Trade and
the Indian Ocean Region (IOR) is a
Investment for Africa (SITA): This is a
common interest between the nations.
project of the International Trade Centre
As more than 70% of the global covering five East African countries
maritime commerce passes through (Ethiopia, Kenya Rwanda, Uganda and
this Ocean including many oil tankers, the United Republic of Rwanda) and
this region is critical to India. India, aims to catalyse at least $80
million worth investment from 16 deals
by 2020. This will help in increasing
value of business transactions between
India and selected East African
countries to create jobs.
• Pan-African e-network: This was jointly
launched by India and African Union
in 2006. This aims to provide satellite
connectivity, tele-education and
tele-medicine services to the African
countries.
• Techno-Economic Approach for
Africa–India Movement (TEAM–9): It is
launched by India together with eight
West African countries to engage
the underdeveloped yet resource-
rich countries which require low-cost
technology & investment to develop
their infrastructure.
• Solar Mamas: It is group of rural women
solar engineers from Africa who have
been trained under Government
182
EXTENSION OF QUAD farming, manufacturing, and disaster

management
AND MULTILATERAL Building quality infrastructure and
connecting institutions
COOPERATION IN AFRICA Enhancing capacities and skills
• As QUAD gathers force between India, development
Japan, the US and Australia, this grouping
can be extended to the African continent. Enhancing People-to-people
partnership.
• China is slowly and steadily gaining
influence in this continent and are
becoming neo-imperialists.
• Cooperation between members of the
QUAD needs to mov beyond from the
Indo-Pacific region and encompass the
Indian Ocean Region and the African
continent.
• India’s support for the Quad Plus narrative
is obvious. the endorsement of a ‘Quad
Plus’ process indicates India’s growing
embrace of an American worldview that
aims to defend and strengthen a liberal
international order while focusing on CHALLENGES
building an Indo-Pacific narrative that • Internal instability: There is ongoing
has been threatened by the rise of a internal political instability in number of
‘revisionist’ China. African Nation may impact India’s long-
term investment opportunities. Ex: South
ASIA-AFRICA GROWTH Sudan experiencing civil war since 2013.
• Social conflicts: Ethnic and religious
CORRIDOR conflicts and governance issues in some
• India and Japan are in the process of countries make foreign contributors
launching the Afro-Asian Sea Corridor aversive to venture in the region.
Growth Project which is an alternative to • Terrorism: There has been an
the One Belt One Road initiative (OBOR). extraordinary increase in terrorist attacks
• The Corridor marries India’s brand of by extremists connected to al-Qaida and
human resources development and ISIS across Africa over the recent years.
capacity building with Japan’s objective To tackle the scourge of terrorism
of delivering quality infrastructure in and maintain peace and harmony
the region. India has, in the past, and continues
to deploy troops and equipment in
• Following are the main pillars of this
various African countries.
corridor:
• China Factor: There is rivalry between
Development and cooperation projects
India and China is going on in Africa. In
in health and pharmaceuticals,
trade Chinese trade with Africa amounts
agriculture and agro-processing.
183
to US$220 billion. China even built up its • Finally, just as India and Africa fought
first overseas military base in Djibouti. colonialism together, both sides should
work together for a just, representative
and democratic global order that has a
WAY FORWARD voice for one-third of humanity.
• Africa which was considered to be a
dark continent is emerging from the PREVIOUS YEAR QUESTIONS (PYQ)
darkness and is now pursuing a path of
development with tremendous potential. • Increasing interest of India in Africa has
India should embrace these nations now. its pros and cons. Critically examine. (15)
(250 words) (2015)
• India’s fortunes on its western coast is
closely linked that of the Eastern coast
PROBABLE QUESTIONS
of Africa. Hence, the presence of Chinese
close to this region, will impact India and 1. To counter the Chinese forays into
her fortunes. Africa, India should take the lead to
• India should assist the African nations extend cooperation with QUAD into
in terms of their socio-economic Africa. Comment (10 marks)
development while at the same time, be
2. What do you understand by the Afro-
wary of enforcing any political changes. Asian Sea Corridor Growth Project?
While it can assist the nations to transition Critically evaluate it. (10 marks)
into democratic set ups, it should not be
seen to be enforcing this change.
• Nations such as Nigeria and South
Sudan have proven oil reserves which
will enhance India’s energy security
prospects.
• Africa has 60 percent of the world’s
arable land but produces just 10 percent
of the global output. India can cooperate
with to improve its agriculture sector.
• The world needs cooperation and
competition in the eastern shores of
Africa and the eastern Indian Ocean. In
this regard India should work with African
nations to keep the oceans open and free
for the benefit of all nations.
• There should also be greater
connectivity and people-to-people
contact, which is vital for growth of
relations. Ex: The random attacks on
African nationals in India have been
a cause for concern; India should
have a zero-tolerance policy for such
incidents.
184
CHAPTER - 30
INDIA-LATIN AMERICA AND

CARIBBEAN RELATIONS
INTRODUCTION Brazil and Mexico in recent times. Ties
have been invigorated. The PM also met
• Latin America and the Caribbean (LAC) the leaders of the Caribbean nations
is a region comprising of three principal in 2019 on the sidelines of the United
sub-regions, viz. the South American Nations General Assembly (UNGA).
continent, Central or Meso-America from
Mexico to Panama and the Caribbean. • Briefly, South America has a nightmarish
LAC has in total 33 nations. security situation with many conflicts
that are ongoing, but it is also a hub for
• The tyranny of distance had prevented many rare earth minerals, agricultural
any sort of meaningful cooperation till goods and nations such as Mexico and
recent times. Brazil are considered to be emerging
economies.
BRIEF HISTORICAL
BACKGROUND
• During pre-independence India,
Argentina was by far the largest
trade partner for India in the region, a
commercial relationship that owed its
genesis in 19th century British domination
of foreign investment in both countries.
• World War II brought serious food
shortages to India at that time Argentina
and Brazil, responding to an Indian
appeal, played a critical role in exporting
corn and wheat during this challenging
period.
• Geographical distance and the lack of a • However, when it came to specific Indian
common history between India and LAC political interests, LAC positions during
has led to only a minimal awareness of the Cold War period were often distant
each other through most of history. or antagonistic. This reflected the fact
that LAC states, with a few exceptions,
• In recent times, the relations between India
were strongly allied to the United States
and this block have gained momentum.
whereas India in general took an anti-
Prime Minister Narendra Modi has visited
colonial and non-aligned position.
185
• Trade and investment ties during cold MERCOSUR

war period were practically negligible, • It is a trading bloc in Latin America
with imports and exports between the formed in 1991 with the objective of
two constituting less than 1 per cent of facilitating the free movement of
each other’s trade basket. goods, services, capital and people
• LAC states also largely backed India among the four member countries.
during the 1962 India-China war, which • It comprises Brazil, Argentina, Uruguay
was probably driven by Washington pro- and Paraguay (from 2016 Venezuela’s
Indian stance in that conflict. membership has been suspended).
• It is the fourth largest integrated market
COOPERATION after EU, NAFTA and ASEAN.
• Trade: • India and MERCOSUR signed a
In the economic sphere, the bilateral Framework Agreement in 2003 with aim
trade between the two nations stands to create conditions and mechanisms
at USD 46 billion. And India’s exports for negotiations in the first stage, and
stand at USD 13.16 billion as of 2018- in the second stage, to negotiate a free
2019. LAC still represents only 4 per trade area between the two parties.
cent of India’s total trade. From the LAC • Information Technology:
perspective, the fraction of trade with The Indian Information Technology
India is even smaller, representing only (IT) companies have employed over
1 per cent of its net trade (compared to 35,000 Latin Americans and the latter
8 per cent with China). too has invested heavily in India.
The economic cooperation goes India is seeking to influence these
beyond bilateral trade. The Indian nations to pursue liberal policies that
automobile sector has emerged as encourage simpler IT investments.
Mexico’s second largest supplier of • Oil:
automobiles after the US.
India imports over 20% of its total
‘Focus: LAC’ Program: It was launched imported energy from these Latin
by the Ministry of Commerce in 1997. American and Caribbean nations
The program focuses on educating including Mexico, Venezuela, Brazil,
Indian trade and commerce bodies and Colombia.
and export-import agencies on the
potential of the LAC region. India also overtook China as the largest
consumer of crude oil from Venezuela.
• Agribusiness:
Mexico was an early contributor to
India’s Green Revolution with its supply
of special varieties of wheat.
• Pharmaceuticals and Chemicals:
The Indian pharma industry has
emerged as a leader in the supply of
generics to the world, and LAC is no
exception. The sector represents about
186
15 per cent of India’s exports to the proficiency in English in parts of LAC.

LAC region48, making it the second- • Lack of Policy Framework: India lacks
largest export sector of the region. a policy with respect to the nations in
• Space: these groupings. Till date, it has viewed
India and LAC cooperation in space South America through the perspective
has a longer history. India assisted of Brazil, and it is only recently that it has
Argentina and helped launch its reached out to Mexico.
satellite. Brazil is the most prominent • UNSC Reforms: As far as the UNSC
partner in space cooperation. India reforms are concerned, there is intense
and Brazil signed a framework accord struggle within this block. Brazil belongs
on space cooperation in 2004 under to the G-4 camp along with India, Japan
which India is to launch a 35 Brazilian and Germany. Argentina on the other
micro-satellite and has already located hand belongs to the Coffee Club which
ground station in Brazil for receiving also has Italy, Pakistan and South Korea.
satellite data. So, India will have to play a greater role
• Climate change: in bringing these nations together.
The actions necessary to combat • Agriculture Tariffs: In multilateral trade

Greenhouse Gas Emission have major talks LAC’s ‘agricultural superpowers’
developmental implications on both such as Argentina and Brazil seek
emerging economies of India and LAC. liberalised trade in the sector. However
So, both states support the principle India, with livelihoods of more than 600
of ‘common but differentiated million of its citizens at stake, is resistant to
responsibility’ as the cornerstone of dismantling its high tariffs in agriculture.
any future climate agreement.
WAY FORWARD
ISSUES AND CHALLENGES • India has a lot to learn from these
• Tyranny of Distance: It has been the nations in the sphere of counter terrorism
tyranny of distance that has affected the and defence. Indian defence exports
relations between India and the block. can be increased and counter-terrorism
South America is indeed located far cooperation need to be strengthened for
away from India and this has affected any meaningful partnership.
India’s outreach to the nations. • One important area of cooperation that
• However, this appears to be a feeble is of utmost importance to India has
excuse. China has a bilateral trade of been the presence of rare earth materials
more than USD 250 billion with these and other important elements such as
nations. Hence, there is no legitimate Lithium, Copper, Iron Ore and Gold.
excuse why India cannot reach out to • Energy security is an urgent Indian
these nations. imperative in which LAC can play a
• Language Barrier: Challenges to critical role. There is tremendous potential
greater economic ties include a poor in the field of renewable energy and the
understanding of each other, including a two blocks can cooperate further in this
major deficit in Spanish and Portuguese regard.
language skills in India and lack of • The cycles of El Nino and La Nina have
187
opposing effects in India and Peru. When

India experiences a phase of drought
through El Nino, there are floods in
Peru and they experience the phase of
La Nina. Conversely, the opposite can
be said too. So, the Climate change is
one important area of cooperation that
affects both India and the nations in this
continent.
• Democratisation of global governance
along with the energising and deepening
South-South interactions are the salient
common goal of both sides.
• Last but not the least, India and LAC states
face many similar internal developmental
challenges. These include high income
inequality, racial/caste exclusion, weak
and chaotic urban governance, and
poor public health. There is much to
learn from each other by engaging in
comparative work to isolate and scale up
best practices in each of these sectors.
PROBABLE QUESTIONS
1. India’s outreach towards Latin

American nations is critical towards
its achievements related to electronic
manufacturing and E-vehicles.
Comment
2. The tyranny of distance has often
prevented India from reaching out to
its friends in the Latin American and
Caribbean nations. Comment
188
CHAPTER - 31
INDIA-BRAZIL RELATIONS
INTRODUCTION • After India’s independence, India

established diplomatic relations with
• Is Brazil all about coffee and football? Brazil. The two nations together opposed
And what are the possible areas of the formation of the Treaty on Non-
cooperation between India and Brazil, Proliferation (NPT) in 1968 and forged a
located far away from each other? These better understanding of global affairs.
are some of the questions we shall seek
to answer in this module of ours. • In 2006, the two nations signed the
‘Strategic Partnership’ Agreement and
• Brazil is also an important nation that ever since, the ties have remained in a
India hopes to cultivate as it expands state of upswing.
into the Latin American and Caribbean
Region (LAC). In recent times, the • However, there is this lack of momentum
relations between the two nations have in the ties. Despite the high-level visits,
expanded with high level visits from both cooperation has been tardy and both
the sides. nations need to work to infuse the energy
into the ties.
• India’s relationship with Brazil has
continued to grow over the past decade
with various high-level exchanges and
got further intensified in 2019 and early
2020 with the back to back VVIP visits.
• This year (2020) Brazilian President Jair
Bolsonaro visited India, wherein he was
the Republic Day Chief Guest and 15
Memorandum of Understandings (MOU’s)
were signed pertaining to Investments,
trade facilitation, agriculture, defence
and double taxation.
• During the recent COVID-19 pandemic,
both India and Brazil suffered equally
and India was the first nation to dispatch
SIMILARITIES BETWEEN
the Hydroxychloroquine (HCQ) tablets,
which at a point of time was considered
INDIA AND BRAZIL
to be beneficial for the treatment of the Similar Levels of Economic
virus.
Development
• India-Brazil relations have always been
warm. Both nations were Portuguese • Both nations are developing in nature
colonies and suffered the negative effects and are recognized as an Upper Middle-
of colonization. Income nation, whereas India is a Lower
Middle-Income nation.
189
• Poverty alleviation remains one of the • Recently, India and Australia signed
common goals of both nations. The a MOU on establishment of Sports
foreign policies of both the nations universities in India. Brazil and India too
hope to achieve this by bringing in more can explore similar opportunities.
investments, creating global conditions • Mahatma Gandhi is highly regarded in
for sustainable trade and development Brazil and the Government and NGOs
and finally ensuring more employment are trying to inculcate the philosophy of
opportunities are created. non-violence among students, youth and
police.
Geographical Similarities
• Brazil is the fifth largest nation and
India is the seventh largest nation in
geographical terms. Both nations share
similar climatic and agricultural zones.
Economic Cooperation
• Coffee and sugar are some of the • Bilateral Trade: Presently, the bilateral
common agricultural items grown in both trade between the two nations remains
nations. Brazil has emerged as the top at a little over USD 8 billion as of 2019.
producer of sugar in the world, whereas • Major Indian exports to Brazil include
India has emerged as the second largest agrochemical, synthetic yarns, auto
producer of sugar in the world. components and parts, pharmaceuticals
• The cattle of Brazil and India share the and petroleum products.
same genetic heritage. So agriculture, • The two nations have during the recent
food processing and animal husbandry visit of the Brazilian President agreed to
are other key focus areas for bilateral enhance the trade ties and have set a
cooperation. target of USD 15 billion by 2022.
• Investment: As far as investments are
Cultural Similarities concerned, Indian companies invested
• Considering the similar levels of socio- USD 6 billion in Brazil and the latter
economic development, culture is also invested USD 1 billion into India in recent
similar in many aspects. Both India and times.
Brazil have many primitive tribal groups • Trade Monitoring Mechanism: India and
who inhabit the forests of both the Brazil have established an institutional
nations. mechanism to monitor and identify
• Folkloric traditions and celebrations bottlenecks in bilateral trade and take
from India could relate very much to the appropriate measures to address them.
joyful and colorful Brazilian festivities. • India-MERCOSUR PTA: MERCOSUR is
Indian cinema is also popular among the a regional grouping comprising Brazil,
Brazilian people. Argentina, Uruguay and Paraguay. India
• A sport is another area which is dear to signed a Preferential Trade Agreement
both the nations. If it is cricket in India, (PTA) with MERCOSUR in 2004. Both sides
it is football in Brazil. Both nations have agreed to expand the India-Mercosur
won World Cups in their respective PTA from its current list of 450 items as
Sports. India has a lot to gain from Brazil it would unlock the potential to enhance
in the area of sports. trade ties.
190
• Social Security Agreement: To facilitate • In the climate change negotiations these

the growth in the services sector, the two developing nations are demanding
nations have recently signed a ‘Social developed countries to hold historic
Security Agreement’. This will permit responsibility and to tranffer technology
both the citizens of both the nations to and finance to developing nations.
be exempted from making social security • South-South Cooperation: To encourage
contributions in each other’s nations, south-south cooperation; India, Brazil
transfer it from one nation to another and South Africa have constituted
and ensure totalization of it. the IBSA forum to provide a collective
• Tourism: The recent decision to sign the voice to other nations in terms of better
agreement to permit free tourist visas bargaining power at the UN and WTO
between the two nations is also expected and other forums.
to improve the tourist inflow between the • UNSC Reforms: It is yet another area of
two nations. cooperation between India and Brazil
who are part of the G-4 along with
Political Cooperation Germany and Japan. Both the nations
• In the relationship between India and see themselves as permanent members
Brazil, it is in fact in the political arena in the future and supporting each other’s
where maximum cooperation is being bid.
witnessed.
• Parliamentary Exchanges: A Brazilian
Strategic/Defence Cooperation
Parliamentary delegation attended the • In the strategic domain, both nations
BRICS Women Parliamentarians’ Forum are guided by the quest to maintain
in India (2016). independence in their decision
• In Brazil, there is a Brazil-India making and mutual benefit from every
Parliamentary Friendship Group and foreign policy initiative. Brazil’s policy
in India, there was an India-LAC of ‘Reciprocal Multilateralism’ and
Parliamentary Friendship Group in India India’s policy of ‘Strategic Autonomy’
during the last term of Lok Sabha complement each other.
• Recently a goodwill parliamentary visit • India and Brazil established a strategic

led by Minister of Parliamentary Affairs dialogue mechanism in 2006 to cover
of India has been proposed to Brazil. regional and global issues of mutual
concern.
• Institutional Mechanisms: The two
nations are part of multiple forums • Both the countries already have an
such as the Brazil, Russia, India, China Extradition Treaty, Mutual Legal
and South Africa (BRICS) forum. They Assistance Treaty in Criminal Matters and
closely cooperate in matters of security, an Agreement of Transfer of Sentenced
trade and investments, youth exchanges, Persons in place.
disaster management and more. • Defence: India and Brazil signed an
• Cooperation in climate change: As far as agreement in 2003 for cooperation in
the issue of climate change is concerned; defence. Joint Defence Committee (JDC)
Brazil, South Africa, India and China meetings are held as an institutionalized
(BASICS) cooperate closely. mechanism for defence cooperation.
• Defence exports from India to Brazil
191
have been steadily growing and there is • As mentioned before, the two nations
potential for further collaboration in this can explore cooperation in the field of
regard. Sports and Sports medicine, similar to
• A high-level delegation from Brazilian the Treaty between India and Australia.
96 pp tre
defence industry has participated in
4
37 n
, 9 tsa en
04
86 o
the DEFEXPO India programme. CHALLENGES
55 ha k C
• Cooperation in the field of Cyber Security:
32 W oo
• Subsidy issue: Brazil has sued India in the
40 or B
Recently the MoU on cooperation in the WTO Dispute Resolution Mechanism for
26 all ar
area of Cyber Security between CERT-In providing Fair and Remunerative Prices
88 C um
and its counterpart agency has signed. for the sugarcane farmers. Brazil sees
K
India and Brazil also cooperate in cyber this as sort of price distortion. During the
issues at BRICS and IBSA. recent visit, the two sides have decided
• Space Cooperation: India and Brazil to work together to resolve this dispute.
signed a framework agreement for • China Factor: While India seeks to expand
peaceful use of outer space as well its trade ties with Brazil, it will be wary of
an Agreement inter-institutional the Chinese factor. China has emerged
cooperation between the space agencies. as one of the largest trade partners of
Both countries have been collaborating Brazil and it will be difficult for India to
in Data sharing and satellite tracking of chip away this trade and grow besides it.
Indian satellites
• There is a solution that newer products
and services, which are integral strengths
Cultural Ties of both the nations should be explored
• In Brazil, there is enormous interest in and out of box solutions need to emerge.
India’s culture, religion, performing arts For example, Brazil is clearly emerging
and philosophy. as a leader of the biofuel sector around
• A Cultural Exchange Programme (CEP) the world and India desperately needs to
for the years 2020-2024 was signed attract investments and find technology
during the recent visit of Brazilian to cut its reliance on non-renewable
President to India. sources of energy. Brazil can assist in this
regard.
• Brazil has a strong community of Yoga
and Ayurveda practitioners. The third • Setback on commitment towards climate
International Congress on Ayurveda change: India and Brazil have developed
was held in Rio de Janeiro and saw divergence on climate change cooperation
participation of more than 4000 as India is committed to combating
delegates, including many from India. global warming while Brazil has rejected
scientific studies on climate change.
• People to People contact: The Indian
community in Brazil is estimated to be • Distance: It is the factor which inhibit full
around 5,000 people. India has e-visas growth in ties between the two nations,
for Brazilians visiting India for the especially on the trade front is the
purpose of tourism, medical treatment distance. The Indian Ocean Region and
and attending conferences. Brazil has the Atlantic Ocean have to be crossed to
also announced Visa free travel for reach Brazil from India.
Indian citizens for short term business
and tourism purposes.
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FUTURE POTENTIAL
• The relationship between the two
countries is growing, but there is a feeling
that the tyranny of distance is harming
96 pp tre
4
37 n
, 9 tsa en
the full growth of potential between
04
86 o
55 ha k C
India and Brazil. The Indian Ocean and
the Atlantic Ocean need to come closer
32 W oo
40 or B
to establish strong ties.
26 all ar
• Start-Ups: One potential area that
88 C um
remains unexplored is cooperation
K
between the start-ups between the two
nations. India with some of its successful
start-ups can help Brazil kick start an
area with tremendous potential.
• Renewable Energy Sector: Considering
the developmental needs of both the
nations, investments in the renewable
energy sector will yield positive results.
Brazil is also a member of the International
Solar Alliance (ISA) of which India is a
founding member.
• Cooperation at UNSC: Presently, India
has become a non-permanent member
and can actively cooperate with Brazil
and other nations towards achieving the
necessary reforms within the UNSC and
the larger UN system.
• Lastly, India and Brazil are also part of the
G-20 forum and can actively collaborate
on many of the global issues.
PROBABLE QUESTIONS
1. The tyranny of distance has inhibited

the closer cooperation between India
and Brazil. Comment. (10 marks 150
words)
2. India and Brazil are predominantly
agrarian societies and cooperation
can be strengthened in this sector to
combat the effects of climate change.
Comment (10 marks 150 words)
193
Unit - 6
Miscellaneous
32. Issues in West Asia and North Africa (WANA)
33. Indian Ocean Region and India
34. UN and Affiliated organizations
35. Important Global Institutions and Issues
36. Indian Diaspora
37. Glossary and References
194
CHAPTER - 32
ISSUES IN WEST ASIA AND

NORTH AFRICA
INTRODUCTION policy in the region.
• The North Africa and West Asia (NAWA) • Socio-culturally, the region is a cradle of
region consist of 19 nations with varying civilization, viz. Mesopotamia, Sumerian,
levels of socio-economic development. Elam, Assyrian, Persian, Babylonia,
This region extends from Morocco in the Cannan, Nile Valley (Egypt), etc., and a
west, through Algeria, Libya, Egypt, Syria, cradle of religions, where Christianity,
Turkey, Iraq, and Iran in the east. It covers Islam and Judaism evolved and spread
996,961,262 ha and is home to 191 million over the globe. Thus, the region is rich at
rural people. various front which include, among other,
diversity of culture, belief, class, creed,
• Geographically, it has long been society, population and so on
considered as a tri-junction of continents,
connecting the Asia, Africa and Europe. It • It is generally considered to be volatile
acts as a highway of interconnectedness from the point of view of security and
and interdependence, which offers political stability.
discourse of mutual cooperation and • In this module, we shall look at some of
opportunities. these issues.
• Economically, the WANA region can be
considered as a heartland of energy,
which containing, apart from natural
gas, nearly two-third of global proven oil
reserves. Therefore, the region is not only
acting as an engine of world’s economic
development but also providing much
needed energy resources.
• The WANA, as a region, has contributed
approximately 7 percent in 2017 to global
domestic products. Practically, the
WANA region has been considered the
nursery of politics since the ancient time.
LIBYAN CRISIS
It has long history of politics, and some • In the past few years, Libya has faced
world’s largest Empires were flourished a grave economic, social, and political
and nurtured in the region. crisis. It doesn’t have a united government
in place and different nations are
• After World War - II, increasingly tense
supporting different factions that rule
situation in the West Asia and North Africa
the nation. Let us look at the matter.
region has witnessed more proactive U.S.
• So, Libya is becoming yet another geo-
195
political crisis in the region. The region governance and could not deliver on the
continues to remain volatile. economic front.
• As a result, protests began again from
Background 2014. Khalifa Haftar of the Libyan
• Libya is located in the North African National Army (LNA) seized control of the
region and it has Egypt, Tunisia and Eastern region of the country and started
Algeria as its neighbours from the same a civil war against the GNA.
region. It also shares a land boundary • The LNA is also battling the various
with other African states. terror groups in the region such as ISIS
• There appeared to be no major trouble and other elements who have pledged
till the year 2011. The Arab spring that loyalty to ISIS.
engulfed the region also affected Libya. • The GNA is backed by Qatar, the US and
Turkey. The LNA, on the other hand has
Libya:
been backed by the UAE, Egypt, Russia
• It is a mostly desert and oil-rich country and Jordan.
in northern Africa.
• Its capital is Tripoli. Who is Fighting whom in Libya?
• Two governments are vying for control
of Libya. The Tripoli-based Government
of National Accord (GNA), led by Prime
Minister Fayez al-Sarraj, is recognized by
the United Nations and backed by a host
of militias.
• The rival administration in the country’s
east is allied with warlord General Khalifa
Haftar, who commands the so-called
• Muammar Gadhafi who ruled Libya from Libyan National Army (LNA).
1969-2011 with an iron fist was thrown out • The UAE has significantly aided Haftar
by a civil war and was aided by a NATO- with air support and advanced weapons,
led bombing campaign. The people according to the U.N. Saudi Arabia
suffered and many lost their life in the has reportedly supported Haftar with
struggle to gain independence. generous funds, and Egypt has provided
• Successive administrations have failed to his forces with weapons and support
control the country’s many militias, which through its porous border with Libya.
wield the real power in Libya.
• UNSC Resolution 1973 called for What do the different countries
intervention and Gadhafi was ousted want?
from Libya.
• Italy, the former colonial power in
• The countries got together and formed Libya, sees stabilizing the country as
the Government of National Accord a matter of national security. It bet on
(GNA) which was based out of the capital the al-Sarraj government to secure its
city of Tripoli. interests, including access to oil reserves.
• The GNA faulted in many areas of Migration is another concern; Rome last
196
year renewed a controversial migration Involvement of EU

agreement with the GNA. The French
government officially denies supporting • Stabilizing Libya is a vital security matter
Haftar but views the warlord as the best for the EU and its member countries.
option to clamp down on extremism. The war-riven country currently serves
France also has oil interests in Libya. as a major departure point for irregular
migration from northern Africa to Europe,
• Saudi Arabia, Egypt and the UAE see in particular Italy.
in Haftar an ally against the spread
of political Islam and in particular the • Libya is also awash in weapons, and
Muslim Brotherhood, which they list as a though the Islamic State affiliate there
terrorist organization. The GNA includes was defeated, extremism remains a
a Muslim Brotherhood-affiliated faction. concern.
Turkey and Qatar, on the other hand, are • The EU has struggled to respond to the
backers of the Muslim Brotherhood. chaos unfolding in Libya.
• Besides ideological reasons, Turkey has • Two EU members France and Italy
another reason to support the GNA: backing opposing sides the French
Ankara and the al-Sarraj government government last year blocked an EU
recently signed a contentious maritime statement calling on Haftar to stop his
boundary agreement that would see Tripoli offensive. An appeal for European
Turkey claim parts of the eastern support from al-Sarraj last year was left
Mediterranean, an area thought to largely unanswered.
contain vast gas reserves, as its own.
• Brussels has largely focused on migration
• The U.S. officially backs al-Sarraj but has management, but its cooperation with
largely stayed out of the conflict under the Libyan coast guard has come under
Donald Trump. Russia, meanwhile, has intense criticism from human rights
taken advantage to expand its influence advocates.
in the region in the absence of unified
• The Associated Press recently found that
Western engagement.
vast sums of EU money make their way
into the hands of militants and coast
Role of Libya’s Oil guard officers who exploit and abuse
• The rival administrations are fighting for migrants.
control of the country’s oil reserves, the
largest in Africa and the backbone of India and Libya
Libya’s economy.
• Though separated by geography, India
• Haftar has captured Libya’s so-called oil and Libya enjoy strong bilateral ties.
crescent, where most of the hydrocarbon India established its Diplomatic Mission
reserves are located. U.N. resolutions in Tripoli in 1969.
name Libya’s state oil company, the
• India has recently ordered the evacuation
Tripoli-based National Oil Corporation
of its CRPF contingent from Libya. Further,
(NOC), as the only entity permitted to
it has supported a stable Libya which is
manage and sell the country’s oil, though
critical for India’s energy security.
there have been attempts by Haftar to
break its monopoly. Several international • Prior to the uprising in Libya the number
companies work with the NOC. of Indians engaged in Libya was
197
estimated to be around 18,000. The Indian need to survive.

professionals were mainly engaged in • According to UNICEF, more than 1
hospitals and other teaching institutions million children in Sudan are acutely
whereas major part of manpower was malnourished, and 1 in 4 are stunted.
engaged in the construction projects.
During the course of revolution most
of them were evacuated to India at
Refugee Crisis
Government of India cost in early 2011. • An estimated 2.3 million people have
• Few hundred Indians continued to serve crossed into neighboring countries
in Libya even during the revolution period. including Ethiopia, Kenya and Uganda,
The help and assistance rendered by resulting in Africa’s largest refugee crisis.
Indian doctors and paramedics in Libya Inside South Sudan, 1.8 million people
during the revolution was appreciated by are displaced.
the Libyans. The relations between the • A small number of people have reportedly
two countries has been good, despite the returned to their villages where there is
government of Gaddafi having backed relative stability, but most remain in their
Pakistan on the issue of Jammu and places of refuge and ongoing, sporadic
Kashmir. attacks continue to force more people to
• India abstained from the UNSC flee for safety.
Resolution 1973.
Women Refugees
SUDAN • Women and girls make up the majority
of the displaced population and are
• Recently 60 people have been massacred disproportionately impacted by the
in the Darfur region of Sudan. This region conflict in Sudan.
has been dominated by the African tribes
• Over half the population of the United
who have been up in arms against the
Nations’ displacement sites is made up
Arab majority rulers in the capital city of
of women and girls, and 86 percent of
Khartoum.
Sudanese refugees in Uganda are women
• This is due to an unfinished integration of and children.
the region into Sudan. In the past, various
• Sexual violence is also pervasive. Almost
communities have clashed.
half of women and girls have reported
• Political conflict, compounded by experiencing abuse — even while most
economic woes and drought, has caused incidences of violence go unreported.
massive displacement, raging violence
and dire food shortages. Current Situation
Food Crisis in Sudan • The protesters have further demanded
that the government of PM Abdalla
• After famine ravaged parts of Sudan in Hamdok hand over former President
2017, people are still at risk of dying of Omar Al Bashir to the international
hunger. Ongoing violence continues to tribunal.
keep people from their homes, damage
• It was only last year that protesters seized
markets and disrupt planting, all of which
power after deposing Bashir who was an
keeps them from getting the food they
unpopular leader. A national coalition
198
government headed by Hamdok has economic development of all nations in

been set up. the region.
• Bashir has been presently imprisoned • Yemen is the largest humanitarian crisis
in the capital for the war crimes he has in the world, with more than 24 million
committed. people – some 80 per cent of the
• Sudan has also decided to become a population – in need of humanitarian
part of the Abrahamic Accords and has assistance, including more than 12 million
decided to end its war with Israel and children.
establish diplomatic relations with it. • Yemen faced numerous challenges to
• Recently, the US too removed Sudan its unity. The country’s north and south
from the list of blacklisted nations who had long been fractured by religious
were supporting terrorism. differences, experiences with colonialism,
and Arabic dialects.
• This is expected to improve the economic
situation in the nation. • The conflict has its roots in the failure of
a political transition supposed to bring
• However, holding of elections is critical to stability to Yemen following an Arab
this process. Spring uprising that forced its longtime
authoritarian president, Ali Abdullah
India-Sudan Relations Saleh, to hand over power to his deputy,
• India's interest in Sudan has grown Abdrabbuh Mansour Hadi, in 2011.
significantly in recent years. This is • Yemen became a nation when its
reflected in India's increased trade and southern part united with it in 1986.
investments in Sudan. However, this was short lived as in 2011,
• Two factors that have generated the government of Abdullah Saleh gave
such interest and encouraged Indian up power following the uprising and
engagement are the signing of the handed over power to Mansour Hadi.
Comprehensive Peace Agreement in • However, Hadi failed to deal with the
January 2005 and the soaring economy. variety of issues that affected the country.
• The lack of democracy and good • Fighting began in 2014. The Houthi rebels
governance has perpetuated the who are Shias seized control of the
conflict and made peace unsustainable. Northern part of the country. They even
Prolongation of such a situation is not in seized the capital of Sana due to which
India's interest given its economic and Hadi had to flee.
energy stakes in Sudan. • Forces backed by Saudi Arabia, UAE,
• A prudent and proactive role on the part France, the US and UK launched air
of India is necessary in order to address strikes.
Sudan's concerns and challenges and • Ever since, the civil war is ongoing. The
thereby advance its growing interests in Houthi rebels are backed by the Iranians
Sudan and Africa. and in recent times, they have attacked
Saudi Aramco oil facilities.
YEMEN CRISIS
• This is yet another crisis in this region
which is threatening to upset the
199
• It is difficult to confine this crisis to only

one determinant as the external role
would not have succeeded without the
existence of a weak internal political,
social, and economic environment.
• Yemen must build and establish their
political system wisely to avoid any
differences in religion, ethnicity, and
socio-culture. It must also guarantee the
participation of all sectarian parties in
the parliament and municipalities. In this
way, the state can become stable and
maintain its unity without any divisions.
• The global community needs to take
note of this crisis and cannot afford to
Humanitarian Impacts ignore the wrongdoings of Saudi Arabia
• The crisis has left Yemen, one of the and Iran.
poorest nations in a state of crisis. With
a poverty rate of more than 50 percent,
Yemen was the Arab world’s poorest
EMERGING GEO-
country even prior to the conflict. POLITICAL EQUATIONS IN
• More than 75% of its population is in need
of humanitarian aid, 400,000 children THE REGION
under the age of 5 are threatened with • To say that the region is in a state of
undernutrition. turmoil would be an understatement.
• A 2019 UN report said the country’s “degree There are new geo-political equations
of suffering is nearly unprecedented,” that are emerging in the region.
with more than twenty million Yemenis • It is clear that the members of the GCC
struggling with food insecurity and half backed by the western nations on one
of those on the brink of famine. hand and Turkey, Qatar and Iran are
competing for influence in the region.
Prospects for a solution to the • This has also been seen during the recent
Crisis crisis in Lebanon.
• The only solution to the crisis is political. • Rivalry with Iran is one of the reasons
Therefore, the call on the parties to the why the other nations are keen on
conflict to resume discussions is the need establishing diplomatic relations with
of hour. Israel. In recent times, the UAE and
• The protection of civilians, including Bahrain have normalized diplomatic ties
humanitarian and medical personnel, with Israel.
as well as civilian infrastructures, must • Sudan has indicated its intention to do
also remain a top priority. Respect for so.
international humanitarian law is an • Earlier, Egypt in 1979 and Jordan in 1994
obligation for all. were the first ones to do so.
200
• India considers this region critical the Kurds.

to its energy security, diaspora and
overall economic development has an
opportunity to play a greater role as a
non-permanent member of the UNSC.
KURDS AND THE ISSUE OF

KURDISTAN
• 2019 has been a tough year for the
Kurdish people who faced the brutal
invasion of the Turkish armed forces
into their territory. They have played a • The Kurds mostly belong to the religion
historical role in fighting the Islamic State of Islam and more specifically to the Suni
(IS) terror group and the fact that they sect. However, they also practice other
were betrayed, was yet another policy religions and mystic practices.
decision of the US which has complicated
• However, the promise of a separate
the geo-political relations in the region
homeland remained on paper and no
of West Asia and the world.
power in the world went ahead with the
• In this context, let us explore this issue in creation of a separate homeland.
its totality:
• The creation of a separate Kurdistan will
be a complex process as it will involve
Who are the Kurdish People taking territory and splitting the nations
and what is the Kurdistan issue? of the region, many of whom have
• The Kurds are the world’s largest stateless emerged as regional powers such as
ethnic group. They presently number Turkey and Iran.
about 25-35 million people and are • Further the division of Syria and Iraq will
spread over the territories of Iraq, Syria, lead to further geo-political instability in
Turkey and Iran mostly. They can also be the region. We need to remember that
found in Armenia in small proportions. the West Asian region is a volatile region
• Kurdish nationalists claim a history and hence no power has dared to go
going back 2,500 years, but they became ahead and create a separate homeland
identifiable as a distinct community only for the Kurds.
in the 7th century, when most tribes in • Further, the Kurds like many other global
the area adopted Islam. The majority communities including the Tibetans are
among the Kurdish people today are destined to be stateless people for the
Sunni Muslim, but there are adherents foreseeable future.
of other faiths too, including Sufism and
other mystical practices. What is the Current Situation?
• At the end of the first world war, the • It is alleged that the Turkish state is close
Treaty of Sevres which had reorganized to the Islamic State. There is no merit
the territories of the Ottoman Empire, had in these accusations at the moment.
conceptualized a separate homeland for However, Turkish actions of invading
201
the Raqqa province of Syria has only

bestowed untold sufferings on the
Kurdish people and has benefitted the
Islamic State which has moved forward
and seized territories.
• The US action of withdrawing from this
conflict needs to be severely criticized.
They have left the Kurds in the hands of
the devils who are hell bent on asserting
their influence and expanding it.
• It is important for the international
community and more specifically India
to support the Kurds.
• India is presently providing aid for
educational and healthcare facilities for
the Kurdish people in Iraq.
• The government in Iraq’s autonomous
Kurdish region has sought India’s security-
related assistance in the fight against the
Islamic State as well as humanitarian aid
for thousands who have taken refuge
there after fleeing from IS-controlled
territories in Iraq and Syria.
Probable Questions
1. Explain the impact of the Libyan crisis

on India. (10)
2. India’s energy security fortunes are
linked to the events in the West Asian
and North African region. Comment
(10)
202
CHAPTER - 33
INDIAN OCEAN
REGION (IOR) AND INDIA
INTRODUCTION houses a number of littorals that play

critical roles in the region.
• The Indian Ocean Region (IOR) has
always played a critical role in global • The region’s contribution to global GDP
affairs. It was the Chola dynasty with has significantly increased over the last
its modern navy that conquered many century.
islands and territories in this Ocean, the
earliest in history.
• Over the centuries, various other powers
such as the Americans, British, French
and the Chinese have competed for
influence in the region.
• Presently, over 80% of the global oil
trade passes through this region, over 2.5
billion people live in the region bordering
this region, further the economic growth
of these nations together has been in
excess of 5% and this is well above the
global average GDP growth of 3.2%. SIGNIFICANCE OF IOR
further, over 70% of global maritime
commerce takes place through this Rich Resource Base:
important ocean. • The Indian Ocean holds 16.8% of the
world’s proven oil reserves and 27.9% of
INDIAN OCEAN REGION proven natural gas reserves.
• Indian Ocean economies accounted
(IOR) for 35.5% of global iron production and
• The Indian Ocean region consists of 28 17.8% of world gold production in 2017.
states, spans across three continents and • there has been a continuous increase in
covers 17.5% of global land area. fish capture in the region since the 1950s.
• The geo-political significance of the The region is also responsible for about
Indian Ocean stems from the fact that 30% of global fish capture in 2019.
it is a centre piece in the wider Indian • This has created a successful basis
Ocean Region (IOR). for export industries in a number of
• The Indian Ocean, which lies at the countries. For example, Indonesia and
crossroads of Africa, Asia, and Australia, India accounted for around 4.5% of
203
global frozen fish exports in 2017. access to navies continued presence

• This abundance of natural resources, and allowing them to patrol and secure
among other factors, has facilitated SLOCs during the time of peace and war
trade-led growth within this region.
ISSUES IN THE IOR
Maritime Trade • Piracy: The most immediate near-term
• Around 80 percent of the world’s maritime threat to the secure flow of shipping is
oil trade passes through the IOR. piracy; a threat currently concentrated
• The Indian Ocean is home to major in the actions of Somali pirates in the
sea routes connecting the Middle East, west, and broader range of pirates
Africa and East Asia with Europe and the and maritime criminals in the Strait of
Americas. Malacca and Indonesia.
• These vital sea routes: • Smuggling: Because of the prevalence

of conflicts and insurgencies, arms
facilitate maritime trade in the Indian smugglers find a ready market in areas
Ocean region, such as the Horn of Africa, Afghanistan,
carry more than half of the world’s Sri Lanka and Indonesia. The sea provides
sea-borne oil an easy way for such international crime
host 23 of the world’s top 100 container syndicates, unscrupulous traders and
ports. non-state actors to distribute their wares.
• Increased connectivity within the region • Terrorism: It must be noted that the
has strengthened ties with external attacks of 26/11 in Mumbai, the terrorists
trading partners. infiltrated through the oceanic route.
In the past, terror groups through
• Intra-regional trade is even stronger, Bangladesh too have tried to infiltrate
accounting for 27.2% of total trade in through the seas.
2017.
• USA Factor: The increased significance
of Indian Ocean Region in the world
Geostrategic Importance geopolitics is one of the reasons behind
• During the Cold War, the Soviet Union the “Pivot to Asia” policy of the Obama
wanted direct access to the IOR; now, Administration. The pivot is meant to be
China is looking for the same. a strategic “rebalancing” of U.S. interests
• The IOR is a vital sea lane with choke from Europe and the Middle East toward
points such the Strait of Hormuz, Strait Asia and Pacific.
of Malacca, Bab-el Mandeb, and so • China Factor:
forth. These choke points are of immense The actions of the Chinese have
strategic importance, as huge volumes of caused imbalance in the region. China
trade pass through them. is far away from the IOR and their
• The islands in the Indian Ocean also mischievous activities are only vitiating
work significantly to shape security the atmosphere of peace in the region.
architecture of the IOR. Ex: Reunion The Maritime Silk Route which is part
Island, Socotra Island etc.These islands of the One Belt One Road (OBOR)
play a vital role along the sea lines of project has seen China invest billions
communication (SLOC) by giving easy
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of dollars in various infrastructure Importance of IOR India’s

projects in Sri Lanka, Maldives, Djibouti
and Kenya amongst other nations. Development
These infrastructure loans are • Mineral Resources: Indian ocean contain
unsustainable, and it inevitably leads a huge number of resources like cobalt,
nations to default on payments. China zinc, manganese, etc. These minerals
then seizes national assets as part of are used as a raw material in electronic
its debt trap diplomatic practices. industries. Many countries are in a race
of exploring polymetallic nodules as
The notion of a peaceful rise of China it contains minerals. India received
has been thrown to the wind. Their exclusive rights to explore the Central
aggressive acts continue to endanger Indian Ocean and has since explored
global security and peace. four million square miles and established
To reduce its dependence on the region, two mining sites.
it has relied on projects such as the • Energy resources: It is the main sources
China-Pakistan Economic Corridor are petroleum and natural gas. The
Project which seeks to construct Persian Gulf is the largest oil-producing
transport links amongst others from region in the world. India produces
Gwadar in Pakistan to the Xinjiang commercial quantities of oil from offshore
province in China. This will cut down areas, with a large proportion of its total
China’s reliance on the rest of the IOR. production coming from fields off the
China has realised that it is extremely coast of Mumbai in Arabian Sea.
vulnerable in this region, if there is a
conflict in the region. • Energy security: Diversification of
energy sources is necessary of faster
Hence, their aggressive acts in the IOR and sustainable economic growth. The
needs to be countered. The US, Britain, new sources like gas hydrates can be
France and EU are some of the nations explored. The other renewable energy
that are actively seeking to counter especially wind, tidal energy can be
Chinese aggression. harnessed from Indian Ocesn. Ex: India’s
wind power potential is 302 GW at 100
INDIA AND THE IOR meters.
• Historically the region is of critical • Strategic: Indian occupies a central and
importance to India and kingdoms strategic location in the Indian Ocean
such as the Cholas, Cheras and the area. The friendly relations with its littoral
Marathas understood this. However, countries are necessary to counter the
after independence, this region has been Chinese “String of Pearls” strategy. The
neglected and it is only in recent times, Chinese have established naval bases
that the government has taken action to in Pakistan, Maldives, Sri Lanka and
secure its interests in the region. Bangladesh and even in nations such as
Djibouti.
• “India is at the crossroads of the Indian
Ocean,”. So, the Indian Ocean basin is • EEZ: Indian Ocean provides about
of particular importance for India, as 2.02 million sq. km Exclusive economic
the region’s most populous country and zone (EEZ) to India which is immensely
geopolitical keystone. contributing to Indian economic growth.
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• Trade routes: Nearly 80 per cent of India’s What is India doing?

crude oil requirement—is imported by
sea via the Indian Ocean. • Neighbourhood First’ policy: India has
been actively engaging the nations in the
• Fishery: India’s ocean coastline has a region and its neighbourhood. It shares
harvestable potential of 5 million tons good relations with all the nations in the
of fishery. Shrimp is the most important region and through its ‘Neighbourhood
commercial species for coastal countries, First’ policy, it has improved its relations
with India accounting for the largest with Sri Lanka, Maldives and Myanmar.
catch. India can gain revenue from its This is expected to dent the Chinese
seafood export by exporting to top designs.
destinations like the USA, EU, and many
other countries. • Defence Strategy: The creation of the
Tri-services command in the Andaman
• Ecotourism: Due to such extensive and Nicobar Islands can effectively
coastline (about 7500 km) in south India tackle this Chinese threat.
and the presence of various Islands in
Indian ocean there is huge potential to • Creation of Naval Bases: India has
develop and growth of ecotourism. This established naval bases in Duqqam
will create the huge job opportunities (Oman), Changi (Singapore), Sabang
and improve livelihoods of the people. (Indonesia) and has got the permission
to set up a naval base at the Assumption
• Food security: Seafood is one of the island in Seychelles.
largest sources of proteins, minerals,
vitamins. It has the potential to reduce • The Chabahar Port Project in Iran is
malnutrition in India. yet another example of India’s intent
to use the seas as a zone of peace and
• Blue Economy: Along with all above economic development.
factors it is ocean-based economy that
helps optimize and utilize ocean resources • SAGAR Policy: India’s interests in the
in a balanced manner for socio-economic region are guided by its Sagar Policy
development. Ex: SAGAR Initiative. (Security and Growth of all in the
region). It emphasizes focusing on the
Role of Indian Ocean in blue economy.
improved Livelihoods, and Jobs • For this to be successful, India is assisting

its maritime neighbours with various
• Indian fishing and aquaculture industries security and economic objectives.
being sixth in the world employs about 14
• India has launched many schemes such
million people.
as the Project Mausam to increase its
• Fish exploration in deep-sea can provide cooperation with its maritime allies.
a livelihood source for much more
• India has launched the Indian Ocean
peoples, especially women who are
Fusion Centre which is based out of
are majorly involved in processing and
Gurugram in Haryana. Many other
selling.
nations are part of this initiative and
• The Indian Ocean can provide jobs in the other initiative is that of the Indian
the primary sector as well as it has the Ocean Naval symposium.
potential to generate employment in
processing industries.
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WAY FORWARD
• India should enhance its efforts to
explore ocean resources with the use of
technology and the O-SMART program
has been rightly launched aimed at
regulated use of the ocean, marine
resources for sustainable development.
• The waters of the Indian Ocean Region
(IOR) have become a home for economic
developments, disputes, conflicts, and
competition for regional influence by
regional and extraregional powers. All
major powers, such as the United States,
Australia, Japan, United Kingdom, India,
and China have sought stakes in the
security of the IOR.
• India should take the lead and take
forward the QUAD grouping alliance, it
is part of to include not just the Pacific
Ocean but also the IOR.
Probable Questions
1. Examine India’s interests in the Indian

Ocean Region, in view of the growing
Chinese aggression. (10)
2. The geopolitical theory of the “String of
Pearls” explains China’s potentials and
intentions of establishing commercial
and infrastructural projects in India’s
backyard. Suggest the measures to
counter Chinese rising influence in
Indian Ocean Region. (15)
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CHAPTER - 34
UN AND AFFILIATED ORGANIZATIONS
INTRODUCTION in 1945 and the United Nations was

established on October 24, 1945.
• In recent years, the United Nations and
its affiliated organizations have been • Presently, there are 193 members of the
in the news for a variety of reasons. Its UN.
role in ensuring international peace and • The primary purpose of the UN has been
security, socio-economic development established by Article 1 of the UN Charter,
and as a global body for multilateral according to which, the purpose of the
diplomacy has been under sharp focus. UN is to:
• India has been pressing for reforms of the To maintain international peace
United Nations Security Council (UNSC) and security and to collectively take
and the larger UN system. measures to remove the threats to
• In this regard, let us understand the UN breach of this international peace and
and its working. security,
To develop friendly relations amongst
nations and cultivate the principles of
HISTORY fostering respect for principles such
• At the end of the second world war, as self-determination and steps to
recognizing the failure of the League of strengthen universal peace,
Nations that was set up in 1920 after the To achieve international cooperation
First World War, the global community, for solving international problems
especially the allied forces felt the need of economic, social, cultural, or
to create a more robust organization that humanitarian character.
would function more than the League of
Nations and would have a greater role To be the centre for harmonizing the
and say in global affairs. actions of nations.
• The League of Nations was established

by the Treaty of Versailles and it failed ORGANS OF THE UN AND
miserably in stopping many of the
conflicts and invasions such as the THEIR FUNCTIONS
Japanese invasion of the Manchuria • The UN had six main organs. However,
region of China and the Italian invasion in 1994, the Trusteeship Council was
of Abyssinia. disbanded. Let us look at these five
• The breakout of the second world war in existing organs and their tasks:
1939 winded up the organization in 1945.
• Nations and especially the US, UK, France, UN General Assembly (UNGA)
the USSR and China came together and • This is a deliberative assembly of all UN
signed the San Francisco Agreement members. Some of the functions are the
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following: of China (Taiwan), that was the member

• Decides on admission of new members of the UN and the UNSC. Following the
on the recommendations of the UNSC, truce between the US and China, the
People’s Republic of China replaced
• Adopts the budget, Taiwan in both the forums.
• Elects all the non-permanent members
of the UNSC, ECOSOC, UNSC Secretary UN Secretariat
General (on the recommendations of
It assists in holding of conferences and
the UNSC) and the 15 judges of the
provides written content to other organs of
International Court of Justice (ICJ)
the UN. It functions as the secretariat. The
amongst others. UN Secretary General heads this organ. He
• The issue of international peace and is elected for a term of 5 years by members
security is left to the United Nations of the UNGA. The present Secretary General
Security Council (UNSC). However, in case is Antonio Guterres.
the members are unable to resolve the
issue satisfactorily, the UNGA members International Court of Justice
can step in and resolve this issue with 2/3 (ICJ)
majority votes. This is called the ‘Uniting
for Peace’ resolution. It has been affirmed • It is the principal judicial organ of the
through the UNGA Resolution no: 377. UN. It settles disputes between member
states that are referred to it. It also
United Nations Security Council renders opinions from the perspective of
international law on issues referred to it.
(UNSC)
• It has 15 judges who are elected for a term
• This organ is responsible for the of 9 years each. The judges are elected
maintenance of international peace by the members of the UNGA.
and security. It can authorize military
action and sanction the presence of UN Economic and Social
UN Peacekeeping forces into troubled
regions. It has 15 members out of which Council (UNECOSOC)
5 are permanent members. These 5 • It coordinates the economic and social
members hold VETO powers. policies of the UN members. It further
• Normal decisions in the UNSC are taken coordinates the actions of the specialized
with the concurrence of 9 votes out of a agencies of the UN.
total of 15 votes. Each member state has • It has 54 members who are elected by
one vote. the UNGA for a three-year term.
• These VETO powers can only be used
on substantive motions and not on UN Trusteeship Council
procedural matters. It was set up to manage colonial territories
• The 10 non-permanent members of the of the powers. It has been disbanded after
UNSC are voted for a term of 2 years the independence of Palau.
each by the UNGA members.
• The permanent members of the UNSC SPECIALIZED AGENCIES
are the US, Russia, China, France and
the UK. Up to 1971, it was the Republic AND OTHER UN AGENCIES
209
• There are totally 15 specialised agencies UN.

of the UN and numerous other UN
agencies. They all function under the
mandate of the UNECOSOC and many WORLD TRADE
of them directly submit reports to the
UNGA.
ORGANIZATION (WTO)
• The WTO succeeded the General
• The 15 specialised agencies are:
Agreement on Tariffs and Trade (GATT).
Food and Agricultural Organization at The latter began in 1947. It was finally in
Rome, Italy. 1995 that the WTO was formed. It has
International Civil Aviation had many rounds of talks and presently
Organization at Montreal, Canada. the agenda of the Doha round of talks
that began in 2001 is continuing.
International Fund for Agricultural
Development at Rome, Italy. • Some of the important agreements
include the Agreement on Agriculture
International Labour Organization at
(AoA), General Agreements on Trade in
Geneva, Switzerland
Services (GATS) and the Agreement on
International Monetary Fund at Trade Related Aspects of Intellectual
Washington DC, US Property Rights (TRIPS).
International Maritime Organization • The organization is being seen to be pro-
at London, UK West in its approach. So the existence of
International Telecommunication WTO is under sharp focus.
Union at Geneva, Switzerland • Some of the problems that have been
United Nations Educational, Scientific identified are the following:
and Cultural Organization at Paris, Non-compliance of established laws
France and even decisions of the Dispute
United Nations Industrial Development Resolution Authority of the WTO and
Organization at Vienna, Austria a deadlock on key issues.
United Nations World Tourism In recent times, the US has taken
Organization at Madrid, Spain many unilateral measures and refused
to abide by the decisions taken
Universal Postal Union at Bern, collectively at the organization or even
Switzerland the verdicts of the dispute resolution
World Health Organization at Geneva, authority. This has made it difficult
Switzerland for other nations who have trusted
World Intellectual Property the process and raised genuine issues
Organization at Geneva, Switzerland related to trade.
World Meteorological Organization at The deadlock being created on very
Geneva, Switzerland many issues has also hampered the
functioning of the organization and
World Bank Group, Washington, D.C, the global economic recovery.
USA
Trade deals such as the Regional
• There are numerous other agencies Comprehensive Economic Partnership
appointed by the various organs of the (RCEP) have been concluded outside
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the influence of the WTO. Food security issue.

WTO has played a very limited role
in helping address other global issues ISSUES WITH THE
related to trade war, protectionism,
agricultural trade & food security, and INTERNATIONAL
climate change related issues.
FINANCIAL SYSTEM
Dispute Settlement System: • The two major financial institutions:
• It is the Multi-party Interim Appeal The World Bank and the International
Arbitration Arrangement as contingency Monetary Fund have been in the news
appeal arrangement for trade disputes. due to the lack of reforms that have been
initiated at its helm of affairs.
• This mechanism aims to resolve trade
disputes between member states. It • The developing nations are still
utilizes both political negotiation and dependent on these banks for their
adjudication for dispute resolution. development process. The conditions set
by the banks often change the status of a
Buenos Aires Declaration on nation and lead to a series of unpopular
actions. For example, Greece was forced
Women and Trade to reduce its subsidies, India was forced
• It is a declaration announced at the 11th to enact a series of reforms called the
Ministerial Conference in Buenos Aires,in New Economic Policy in 1991.
December 2017. • India and other developing nations have
• It is a non-binding declaration that seeks complained that even the quota system
women empowerment by expeditiously in the IMF has been against developing
removing barriers to trade. nations and has always favoured the US.
• The US for example has a cumulative
Why India voted against this quota of around 17% and G-7 nations
declaration? together account for more than 40% of
the quota. India and Russia on the other
• India argued that linking gender equality hand have a quota of 2.5%.
in trade which will allow developed nation
to use the advantage of more advanced • The US Congress has blocked any sort
gender policies which will block exports of reforms and it is precisely this that
from underdeveloped countries. has prompted nations belonging to the
BRICS to set up the New Development
• It also results in not addressing Bank at Shanghai.
gender related issues and encourages
development through incentives in
developing countries for Women. WORLD HEALTH
• India doesn’t want to any discuss any
issue which is not related to Trade in
ORGANIZATION (WHO)
WTO. Because WTO is not the ideal place • Following the COVID-19 pandemic, the
to support gender equality and relating role of the World Health Organization
gender with trade related issues. (WHO) has been under sharp focus this
year.
• India first needs permanent solution on
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• Their actions which were seen to be in these bodies to remain neutral and not
support of China and they were seen to become the mouthpiece of any one
be suppressing data on COVID-19 and nation.
this has initiated a call for reforms in the • India too has faced illogical and incorrect
WHO. criticism related to its actions in Jammu
• Time and again, China has been and Kashmir, Citizenship Amendment
supported by the organization and Act and the Delhi riots amongst others
its head and now many nations have from the UNHRC.
demanded accountability of the Geneva • Based on fake news and biased reports,
based body. India has been called out for its actions.
• While indeed, it has carried out stellar This needs to stop and the reforms need
work during the Ebola crisis, it appears to to be urgently initiated for the survival of
have failed miserably on matters related these organizations.
to COVID-19.
• It refused to declare a pandemic till WHAT AILS THE UN?
March, it called on nations not to suspend
flights to China and now its investigations • Crisis in Iraq, Libya, Syria, Yemen, are
into the origin of the Sars-Cov-2 virus has some of the conflicts that the UN has
not inspired any confidence. failed to prevent.
• India has recently assumed the executive • While it may be true that the UNSC is a
presidency of the World Health Assembly divided house, yet it reflects the larger
and this is an opportunity for India to crisis at play here.
effect a change. • The lack of funds from the nations
which has been exacerbated with the
withdrawal of the US is another cause for
US WITHDRAWAL FROM concern of the UN.
ORGANIZATIONS AND • In the past, the organization has carried
out stellar work in Africa in the field of
PACTS socio-economic development. However,
• The UNHRC, Paris pact, WHO, WTO, they have failed in recent times, especially
UNESCO are some of the organizations during the Yemen crisis.
and pacts that the US under President
Donald Trump has withdrawn from. UNSC reforms and India
• This has one immediate effect. Need of Reforms
Withdrawal of important funds meant to
support the organization, its employees • Undemocratic Nature: There is no
and its functioning. The US for example representation from Africa? South
almost lends USD 400 billion to the America in UNSC, especially in P-5
WHO. This is almost 10 times the amount members.
that China lends to the organization. • Not changed along with evolve global
• The instability has caused the world order: These P5 members (USA, UK,
bodies to withdraw and prioritize their France, China and Russia) are but the
functioning. There is an urgent need for victors of the second world war and the
UNSC even as of 2020 reflects the geo-
212
political realities of the 1940’s. member of the UNSC.

• Rigidity of P-5 nations: Nations such as • It needs to be clarified here that no
India, Mexico, Nigeria, Japan, South Korea organization has set any conditions or
and Brazil amongst others have emerged qualifications to become a permanent
as powerful economies in recent times. member of the UNSC.
The P5 members have continued to stall • To increase the relevance of agency: “The
all reforms related to the functioning of UNSC and other multilateral institutions
the council. need to reform themselves, or else they
• There are various blocs that have fear becoming redundant” stated by the
emerged to spearhead the reforms to Indian Prime Minister.
this powerful institution.
• Differentia Approach in UNSC Reforms: Previous Year Questions (PYQ)
On one hand India, Germany, Brazil, and
1. Discuss the impediments India is facing
Japan are part of the G-4 alliance striving
in its pursuit of a permanent seat in the
for reforms. The African nations, on the
UN Security Council. (2015) 15
other hand, have their own grouping that
seeks to reform the UNSC and the larger 2. What are the main functions of the
UN system. United Nations Economic and Social
• Pakistan, Italy, Argentina and South Council (ECOSOC)? Explain different
functional commissions attached to it.
Korea are part of the Coffee Club
(2017) 10
initiative which is formed to counter the
G-4 grouping. 3. ‘Too little cash, too much politics, leaves
• Misuse of VETO power: India has laid UNESCO fighting for life.’ Discuss the
claims to the permanent membership of statement in the light of US’ withdrawal
the UNSC and has stated that the system and its accusation of the cultural body
as being ‘anti-Israel bias’. (2019) 10
of VETO needs to be urgently reformed
too. VETO has been used by the P5 to
advance their own nation interest and not
to settle matters of international peace
and security. Ex: Recently, China has
Vetoed any discussions on the COVID-19
virus and this is just one such example.
Why India aspires to be a part of
UNSC member?
• India is an emerging economy with a
GDP of over USD 3 trillion. In terms of
PPP, India is the third largest economy in
the world.
• It has contributed its troops to the UN
Peacekeeping mission and has continued
to support the UN in its objectives.
• Further, it is a thriving democracy and fits
all conditions to become a permanent
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CHAPTER - 35
IMPORTANT GLOBAL
INSTITUTIONS AND ISSUES
INTRODUCTION Finance Ministers and Central Bank
Governors to meet and discuss issues of
In this module of ours, we shall look at some macro-economic concern.
of the important institutions that have been
in news such as the G-20, SAARC and other • Following the global financial crisis in
important issues that affect India and her 2008, the group expanded its agenda to
interests. discuss other important issues such as
climate change and terrorism amongst
others too.
G-20
• The annual Leadership Summit too
• Recently, the G-20 summit was held in began in 2008 when the Heads of States/
the virtual format due to the ongoing Government attended meetings to
COVID-19 pandemic, under the leadership discuss and take forward the cooperation
of Saudi Arabia. India is slated to host between the nations.
the G-20 summit in the year 2023.
About G-20
• The Group of 20 or G-20 brings together
19 nations and the European Union on
a single platform to discuss important
issues that affect the world in terms of
economic recovery and social changes.
• It does not have any secretariat.
• The 19 nations who are members include:
Argentina, Australia, Brazil, Canada,
China, France, Germany, India, Indonesia,
Italy, Japan, Mexico, Republic of Korea
(South Korea), Russia, Saudi Arabia,
South Africa, Turkey, United Kingdom
and the United States of America (USA).
• Throughout the year, officials from these
nations meet to discuss issues and take
forward agreements that have been
agreed to during the annual leadership
History summits.
• The G-20 was formed in the year 1999. • During the annual summits, the Heads
Initially it was only a forum for the of States/ Governments meet to discuss
214
issues and methods to take forward • It has influence on the policies of

cooperation in various fields. It is held the countries around the world. As it
every year and the presidency rotates allows the leaders of the world’s major
amongst the members. economies to work together to lift growth
• This year in 2020, we saw the conference in mutually supportive ways and align
being held under the leadership of Saudi their domestic policies to the decisions
Arabia. This is called the Leadership taken by the grouping across Ministerial
Summit. level meetings and Summits
• The nation that hosts the Presidency • It provides opportunities for countries to
sets the agenda of the meeting of the conduct various bilateral and plurilateral
leadership and in the run up to the meetings such as JAI (Japan-America-
meeting, government officials hold India), RIC (Russia-IndiaChina) which
meetings with the counterpart. tries to address conflicting interests of
various groupings on one platform.
• These government meetings are held at
the Finance Ministers level and the Sherpa
Achievements of G-20
dialogue. The Finance Ministers discuss
the economic issues, and the Sherpa • Osaka Track: “Osaka Track” aims for
dialogue consists of senior officials of the digital free flow with trust. Almost all G20
government who discuss other important leaders, including those of the United
matters of global concern such as climate States and China, agreed to provide
change, terrorism amongst others. a highest level political push to the
plodding e-commerce negotiations at
• The members of the Civil Society too
the World Trade Organization (WTO).
meet and discuss issues through the
Engagement Groups. • Significant economic presence:
All 20 leaders agreed to produce a
• At the end of the Leadership Summit, a
revolutionary regime by 2020 to ensure
resolution is adopted which outlines the
that companies pay their fair share of
priorities of the G-20 grouping.
taxes to the countries where their value
is created by customers and users, rather
Significance than in the country where they claim
• The G-29 nations are some of the most their headquarters to be.
industrialised and emerging economies. • In Security: Since 2001, at the ministerial
Together, these 19 nations and the EU level, the G20 has discussed security,
represent 80% of the Global GDP, 2/3 starting with terrorist finance and then
of the global population and ¾ of the later proliferation finance. At Osaka
global trade. it adopted an Australian initiative to
• It covers wide spectrum of issues. In the combat the use of social media for the
2019 G20 Summit in Osaka discussed radicalisation, recruitment, financing and
eight themes which are crucial to ensure planning of terrorism.
Global Sustainable Development, that are • In Environment: To protect the world’s
Global Economy; Trade and Investment; endangered natural environment, the
Innovation; Environment and Energy; G20 launched the world’s first global
Employment; Women’s Empowerment; regime to curb plastic and other waste
Development; and Health. in the world’s oceans. G20 leaders also
215
launched the “Osaka Blue Ocean Vision” • In a recent meeting of the Financial
to reduce additional marine plastic litter Action Task Force (FATF), it was decided
pollution to zero by 2050, using a life- to retain Pakistan on the grouping’s ‘Grey
cycle approach. List’ till February 2021.
• In this regard, let us understand the
India and G-20: functioning of the FATF.
• As an emerging economy with a GDP
of approximately USD 3 trillion, India is
an important member of the grouping.
Further in 2023, India will host the G-20
summit.
• Addressing the G-20 summit virtually, PM
Modi called on nations to come together
to fight the effects of climate change.
He said that nations cannot tackle the
effects of this serious issue in silos and
will have to mount a campaign that can
What is the Financial Action
be waged together. Task Force (FATF)?
• He reiterated that respect to the • It Is an intergovernmental organization
environment is integral to India’s ethos based out of the OECD building in Paris.
and traditions and stated that the target It was established by the G-7 in 1989 to
of generating 175 Gigawatts (GW) by 2022 combat the issue of money laundering. In
will be achieved before the deadline and 2001, its functional jurisdiction extended
now India has set a target of achieving to terror financing. As of 2020, it has 39
the generation of 450 GW of renewable members.
energy by 2030. • It has divided itself into smaller groups
• Speaking about the post COVID-19 also called the peer groups. An example
recovery, he stated that Information of this is the Asia Pacific sub-group of
Technology will play a greater role in this which India and Pakistan are a part. It
process, as concepts such as Work from has many observers including the World
Home will continue to stay relevant even Bank, IMF, and other countries.
after the pandemic. He called for the • It develops certain standards to be
creation of the G-20 virtual secretariat followed by all nations as far as crimes
and stressed that India can play a greater reported to terror financing and money
role in this. laundering is concerned.
FINANCIAL ACTION TASK FATF Recommendations, or

FATF Standards
FORCE (FATF)
• The FATF has developed the FATF
• The FATF is an international policy- Recommendations, or FATF Standards,
making body. It does not take a role in which ensure a co-ordinated global
law enforcement matters, investigations response to prevent organised crime,
or prosecutions. corruption and terrorism. They help
216
authorities go after the money of its recommendations onto its Grey and
criminals dealing in illegal drugs, human Black lists.
trafficking and other crimes. The FATF • Nations listed on the Grey list face a
also works to stop funding for weapons severe crisis of credibility and boycott.
of mass destruction. They find it tough to access foreign funds
• The FATF reviews money laundering and investments, aid for development
and terrorist financing techniques and projects and access to trade credits. All
continuously strengthens its standards to transactions will be scrutinized. However,
address new risks, such as the regulation this is an opportunity for nations to
of virtual assets, which have spread as change and rigorously follow the FATF
cryptocurrencies gain popularity. recommendations. This is akin to a yellow
• The FATF monitors countries to ensure card in a football match.
they implement the FATF Standards fully • Black list on the other hand is a more
and effectively, and holds countries to serious issue. Being black listed means
account that do not comply. an end to a nation’s external dealings. No
• Today the FATF’s work primarily focuses other nation, business and social entity
on the following main areas to identify or International banks will deal with the
and respond to threats to the integrity of nation concerned. This can also result in
the international financial system: civil wars and political instability. Black
listing of Syria in 2011 was one of the
reasons that led to the civil war. As of
October 2019, North Korea and Iran are
the nations on the Black list. It is possible
to come out of the Black list.
Relevance
• Combat Corruption: The current FATF
Recommendations include strengthened
requirements on transparency and
beneficial ownership. This makes the
FATF Recommendations a powerful tool
to combat corruption, an issue which
became a new priority for the FATF in
2010.
• Financial Inclusion: The FATF remains
committed to support financial inclusion
as a means to strengthen financial
integrity. It continues a close dialogue
with relevant international stakeholders
such as the United Nations Secretary
How does the Listing Process General’s Special Advocate for Inclusive
Work? Finance for Development and the Basel
Committee on Banking Supervision.
• Broadly speaking the FATF lists nations
based on the non-implementation of • Active During Crisis Period: The global
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COVID-19 pandemic led to unprecedented published 6 mutual evaluation reports

and devastating challenges, claiming and the follow-up reports of 7 of its
lives and causing catastrophic economic members.
disruptions. The FATF continued to deliver
its crucial work, including highlighting
new threats and vulnerabilities emerging
during the crisis.
• The FATF Annual Report 2019-2020 sets
out the achievements of the FATF. Among
this year’s achievements are:
COVID-19 - A report on the impact of
COVID-19 on anti-money laundering
and counter-terrorist financing
measures
Virtual assets and so-called
stablecoins: Guidance to help virtual
asset service providers implement
the FATF’s new requirements for
this sector; a 12-month review on
the implementation of these revised
standards, and a report to the G20
on money laundering and terrorist
financing issues associated with so-
called stablecoins.
Digital identity: Guidance to help
governments and the private sector BRICS
promote effective and responsible use
• It was in the year 2001, that British
of digital IDs in customer due diligence
Economist and former Chairman of the
as well as supervision.
Goldman Sachs Asset Management
Methods and trends: A milestone division Jim O’ Neill, coined the acronym’
report on money laundering and the BRIC’ (Brazil, Russia, India and China)
illegal wildlife trade which identifies to indicate developing or emerging
the common methods wildlife economies with similar characteristics
traffickers use to launder their money, and who will be in a position to dominate
and highlights proposed actions that the global economy in the coming
countries and the private sector can decades. This was merely an assessment
take to combat this trade. made by an economist till the year 2009.
Training: A new e-learning platform • These four nations met for the first time
for the Global Network membership in 2009 at Yekaterinburg in Russia. In
which will help strengthen global 2010, it became a full organization.
understanding of the FATF Standards
• South Africa joined the grouping in
and improve their implementation in
December 2010 and attended the 3rd
national frameworks.
BRIC summit at Sanya (China) in 2011 and
Mutual evaluation process: The FATF this group then became ‘BRICS’ (Brazil,
218
Russia, India, China and South Africa). forum include the:

• BRICS as a group has expressed its BRICS forum: It is a social, economic
support for a multi-polar world, an and political forum which seeks to
alternate global banking system (as promote people to people ties between
opposed to the International Monetary the members of the BRICS, SCO
Fund and the World Bank) and reforming (Shanghai Cooperation Organization)
the global trading system (WTO reforms). and other friendly countries.
• All the members are also G-20 members BRICS Contingency reserve: This
and play a significant role in determining was set up in the year 2014 after the
global affairs of importance. BRICS summit at Fortaleza in Brazil.
• In terms of its clout, the group represents It came into effect in 2015. It hopes
42% of the world population, 23% of the to assist member nations and others
global GDP and 17% of the global trade. in meeting short term liquidity crunch
situations and Balance of Payment
shortfall situations. The countries have
contributed a total of US $100 Billion.
The extent of contribution is: China
(41), Russia (18), Brazil (18), India (18),
and South Africa (5).
New Development Bank (NDB): Has its
headquarters in Shanghai in China. It
hopes to supplement global financial
institutions in their efforts towards
sustainable development. It also marks
• The countries have established a dialogue a departure from the practices and
forum on key regional and global issues. procedures of the west-dominated
Some of the areas for cooperation and IMF and World Bank.
dialogue include the following: Some of the areas and projects it
Finance and Central Bank, lends to include clean energy, public
transport infrastructure, irrigation,
Trade, sustainable urban development and
Business Forum and Council, balanced growth.
Financial forum, BRICS Cable Network: In the 2012 New
Delhi summit, the countries pledged to
Academic and Think Tanks council,
develop the Optical Fibre Submarine
Health and Science & technology, communication. This has been initiated
Security issues including terrorism, amongst the member states.
Agriculture, BRICS Payment system:- During
the 2015 summit in Russia, the
Youth Affairs and sports,
member states decided to build an
Disaster Management and alternate payment system and reduce
Statistics among others. their dependence on the globally
operated SWIFT system (The Society
• Some of the initiatives taken by this
for worldwide interbank financial
219
telecommunication). However, there is • India’s Role as A Big Brother:

no movement in this regard. India is seen as a strong voice at the
BRICS cooperation in IT sector: In BRICS and the UN against proposals or
2019, the communication Ministers of actions that could harm any member’s
this forum signed an agreement of interests. It turned down China’s
intent to cooperate in the IT sector. proposal to invite Pakistan, Sri Lanka,
and Mexico into the BRICS.
What has been India’s role in Because India believed that focus
this forum? should be on developing current
members rather than inviting other
• India since the inception of BRICS has
weaker nations and that bringing in
played an important and active role. It
these nations would pull the BRICS
attaches high importance to the BRICS
down as an alliance and would
forum for promoting global economic
eventually meet the same fate as the
growth, peace and stability.
European Union.
• India’s Role as a Growth Maker for Other
Like a brother, India means to hold
BRICS Nations:
hands and progress together by sharing
India invested close to $4 billion in ideas and technology in each field. In
South Africa and started the Global order to make BRICS members more
Executive Development Programme to closely integrated, it also intends to set
train labour force there. up funds with the New Development
It helped Brazil and South Africa Bank for sports training, developing
replicate it ‘Digitisation of Education’ clean energy plants and hosting trade
initiative by providing technological fairs and film festivals.
aid to schools there. • India’s Role as Peacekeeper:
• India’s Role in South Asian Trade: India needs the BRICS to be stable
India has taken several steps to improve for trade to flourish, which is also why
trade including proposals for a new peacekeeping in trade regions like the
inclusive BRICS portal. It also pitched Mediterranean, North Africa, and the
for an independent BRICS credit rating Indian Ocean is vital.
agency so that members can compare India has been helping Tibetans fight
their ranking with members itself for freedom and providing aid and
instead of other developed countries. refuge to the Rohingyas.
India also promotes intra-BRICS trade, Under ‘Operation Insaniyat’, India
which means urging member nations provided a total of 7,000 tonnes
to import goods from each other of relief material to the refugees in
instead of Europe. Bangladesh. And as a part of the UN’s
The idea is that intra-trade provides missions, India has sent over 1,00,000
the flexibility of trading in currencies troops to Nigeria, Somalia, Sudan,
other than the dollar. By doing this, Ethiopia, and Afghanistan to fight
countries can strengthen their own internal disruption.
currency while weakening the US India has also been an active
Dollar. participant in the counter terrorism
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forum. economic cooperation to comprehensive

participation in global governance.
Importance of BRICS for India • “BRICS is the voice of the developing
• India has been an active participant and world, who are pursuing multilateralism
a founding member of this organization. and South-South cooperation”
It is in India’s national interest to sustain • Establishment of the Contingency
economic growth which is beneficial for Reserve Arrangement and the New
its citizens in terms of job creation, GDP Development Bank has ensured that
growth and poverty alleviation. traditional institutions such as the
• This forum provides an alternate global IMF and World Bank initiate reforms.
mechanism to promote economic and This will soon become an alternate
social growth, especially at a time when arrangement to these institutions and
the global institutions and order are will become a voice of the developing
under considerable strain (US actions on and underdeveloped nations that seek to
the economic front, climate change, geo avoid exploitation of the tradition ‘North’
political uncertainties around the world). as opposed to the global ‘south’.
• India seeks to use this forum to expand • Greater say in global affairs: These
its ties into Africa and South America, nations cannot be ignored anymore and
continents which were neglected till will become partners in the development
recently due to “tyranny of distance”. process and will become the deciding
authorities on events of global and
• This forum also provides an opportunity regional affairs. BRICS adheres to the
to India to resolve its disputes with its goals and objectives of the UN Charter
northern neighbour China. However, and the idea of equality.
the recent dispute in the Line of Actual
Control has vitiated the atmosphere of • Co-operation in Climate Change: An
peace. offshoot of the group, dealing with
climate change, is BASIC (BRICS without
• In the year 2021, India will be hosting the Russia). BASIC is one of several
BRICS Summit and Union Minister for groups of nations working together
Sports and Youth Affairs has announced to fight climate change and carry out
that the BRICS Games 2021 will also be negotiations within the UNFCCC. In
held in India and it may be aligned with December 2019 BASIC met at the Spain
the ‘Khelo India Games’. conference and reiterated its support to
Some of the important achievements the Paris Agreement.
include the following:
• Enhanced share of Global Trade: The
Some of the challenges include
BRICS has made significant progress on • The BRICS economies share some
the financial integration of its members. domestic and socio-economic challenges
The trade volume of BRICS rose from that must be addressed independently
11 percent to 16 percent of the world’s of their group activism in order to
total and is expected to grow further, accomplish their major goals as a group,
contributing half of the world’s growth. viz. inequality (economic, social and
• Political achievement: BRICS has political), corruption, improvements in
quickly shifted focus from mere health care and education, and human
rights, to name a few.
221
• Slowdown in the Chinese economy President General Zia Ur Rahman.

affecting the supply chain all over the • The Foreign Secretaries of India, Pakistan,
world. Bangladesh, Nepal, Bhutan, Sri Lanka
• Recovery of the US economy- while and Maldives met in 1981.
it is definitely positive for the global • The Foreign Ministers of these nations
economy, as far as BRICS is concerned met in 1983 and finally the association
it does pose a challenge. As the US came into being.
economy improves, investors may pull
out investments from the BRICS nations • The first SAARC summit was held in 1985
and invest them in the US where better in the Bangladeshi capital of Dhaka.
returns could be expected. • These seven nations continued to
• Recession in Russia, South Africa and function. In 2007, Afghanistan joined
Brazil and a slowdown experienced in the the organization and became its 8th
Indian economy. member.
• Overwhelming presence of China. • There are several observers in the
organization that includes: Australia,
• Varying political structures of these China, the European Union, Iran, Japan,
nations. Mauritius, Myanmar, South Korea and
the United States.
SOUTH ASIAN • All decisions are taken by consensus in
the SAARC.
ASSOCIATION FOR
REGIONAL COOPERATION
(SAARC)
• Following the COVID-19 pandemic,
Prime Minister Narendra Modi held a
virtual conference of all leaders of the
SAARC nations. During the conference,
he discussed the potential impact of the
virus and pledged USD 10 million to the
SAARC relief fund. Other nations too
contributed to it.
• Pakistan, was once again at the forefront
for all the wrong reasons as it tried to stall
any meaningful discussion on the topic.
In this regard, let us understand what
exactly this organization is all about.
Background
• The idea of a regional association of
nations in the South Asian Region can
be traced back to former Bangladeshi
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Objectives of SAARC countries) issues to be discussed without

being prejudiced by bilateral issues.
The objectives of the Association as defined in
the Charter are:
Areas of cooperation includes
• To promote the welfare of the people of
South Asia and to improve their quality • Agriculture and rural development,
of life. • Women, youth and children,
• To accelerate economic growth, social • Health and Population matters,
progress and cultural development in
• Science, technology and climate change,
the region and to provide all individuals
the opportunity to live in dignity and to • Human Resource Development
realize their full potential. • Transport and energy.
• To promote and strengthen selective self-
reliance among the countries of South SAARC Achievements
Asia. • South Asian Identity: The most important
• To contribute to mutual trust, achievements of SAARC are to bring
understanding and appreciation of one the members of the states close and
another’s problems. think about regional issues and identity.
• To promote active collaboration and That is based on the positive aspect of
mutual assistance in the economic, social, the individual state which should be
cultural and technical and scientific attractive for the people of the SAARC
fields; countries to emulate.
• To strengthen cooperation with other • SAFTA: SAARC introduced SAFTA to

developing countries. boost trade between the Member States
and in December 1995, emphasizing
• To strengthen cooperation among that there was a need to understand
themselves in international forums on the “South Asian Free Zone Exchange”
matters of common interest; and (SAFTA).
• To cooperate with international and • The SAARC Food Bank: “The SAARC
regional organizations with similar aims Food Bank”, was recognized originally
and purposes. to facilitate as an emergency source for
facing a crisis in shortage or a natural
Principles of SAARC disaster, floods, earthquakes, and such
• Respect for sovereignty, territorial other issues. It acts as a the channel to
integrity, political equality and accept a mutual attitude to unite “food
independence of all member states. security” for the people of South Asia.
• Non-interference in the internal matters • SAARC Development Fund: SAARC
is one of its objectives. Development Fund was recognized by
the eight SAARC Members in 2010. SDF
• Cooperation for mutual benefit. was objective “to promote the welfare
• All decisions to be taken unanimously for the people of the South Asian region;
and need a quorum of all eight members. to improve their quality of life, economic
• All bilateral issues to be kept aside growth, social progress and poverty”.
and only multilateral (involving many It is also one of the achievements of
223
the Regional Association for the safety, combined GDP of around USD 3 trillion.
progress and prosperity for the people of • It is a densely populated area with a
South Asia. more or less similar culture and customs.
• South Asian University: It is another • The socio-economic conditions of
achievement by the members’ state. it these states are more or less similar
is an international university established and these nations are in a similar state
in 2010 by the SAARC desk. At this time of development on matters related to
University is offering postgraduate and poverty, growth, health outcomes and
doctoral programs in several disciplines. security.
• SAARC Arbitration Council: is one of • As far as India is concerned, it is important
the Specialized Bodies of South Asian to maintain the well being of SAARC for
Association for Regional Co-operation. lt the following reasons:
is an inter-governmental body authorized
to provide a legal framework or forum • Regional stability is important for the
within the region for fair and effective economic development of India,
settlement of industrial, commercial, • It is important to wean away the nations
trade, investment banking, such their of this region from the Chinese predatory
other issues, and disputes, as may be practices. China has been enticing these
referred to it by the member states and nations through its OBOR project and
their people. this threatens India’s security. Hence, it is
• South Asian Regional Standards important for these nations to cut down
Organization: “a particular body to deal their reliance on China,
with trade-related standards, here is • The leadership of the South Asian region
major potential for greater coordination is important for India as it seeks to
of such standards to support trade growth emerge as a global power. In a manner
in South Asia and universally for SAARC of speaking, we can say that the global
countries. SARSO can adopt the tools fortunes of India pass through South
and necessary approaches to achieve its Asia. It is in this regard, that India has its
goals and those of SAARC ‘Neighbourhood First’ policy.
• Confidence-Building Measures (CBMs): • South Asia satellite: The South Asia
SAARC has enabled CBMs to be Satellite (GSAT-9) is a geosynchronous
presented at the highest level and also communications and meteorology
has succeeded in reducing the conflicts. satellite by the Indian Space Research
Despite the various obstacles created Organisation. It is launched for the
by the main regional players and the South Asian Association for Regional
economic structure, SAARC has not Cooperation (SAARC) region. By
only continued but had even gradually launching the GSAT-9 ‘South Asia
expanded its reach, particularly in trade. satellite’, India has reaffirmed the Indian
Space Research Organisation’s scientific
Why is SAARC important and prowess, but the messaging is perhaps
how is it important for India? more geopolitical than geospatial.
• Member nations of SAARC together Challenges

constitute about 3% of the world area,
21% of the global population and a • South Asia continues to be plagued with
224
ongoing disputes among nations, and posed by hikes in food prices, energy
the countries of the SAARC are grappling prices, recurrent disasters and climate
with conflicts within their own national change due to geographic, economic,
territorial boundaries. cultural and other strategic reasons.
• The forum has become a zone of rivalry • South Asia has distinct advantages to
between India and Pakistan. Even as cooperate in many areas including cross
India is enhancing its relationship with border infrastructure and services.
the other nation in the region, Pakistan • In a region increasingly targeted by
considers this as yet another forum to Chinese investment and loans, SAARC
raise the issue of Jammu and Kashmir, in could be a common platform to demand
a baseless manner. more sustainable alternatives for
• Ex: The Motor Vehicles Agreement development, or to oppose trade tariffs
was ready to be signed in the 2014 together, or to demand better terms for
Kathmandu summit. Pakistan objected South Asian labour around the world.
to the agreement in the last moment. • The potential of organization to maintain
• Pakistan’s refusal to crackdown peace and stability in the region should
on terrorism too is hampering our be explored by all the member countries.
cooperation in the region. This is another • SAARC should be allowed to progress
example of Pakistan stopping any sort of naturally and the people of South Asia,
regional integration in the region. who make up a quarter of the world’s
• Many other nations also view this forum population should be offered more
with suspicion and are concerned about people-to-people contact and cultural
India’s big brotherly attitude. cohesiveness.
• The region continues to remain as one
of the least connected regions as far as Non-Alignment Movement
trade is concerned, according to a report The Non-Aligned Movement is a movement
by the WTO. of countries representing the interests and
priorities of developing countries that didn’t
Policies and Recommendation align with any superpower during the cold
war era.
• All the members need to focus on growth
and all-round development as the highest Background
priority, and to meet this challenge they
• The Movement has its origin in the Asia-
need stability and cooperative security
Africa Conference held in Bandung,
system.
Indonesia in 1955.
• SAARC, as an organization, reflects the
• The Non-Aligned Movement (NAM) is a
South Asian identity of the countries,
forum of 120 developing countries that
historically and contemporarily. This is
are not formally aligned with or against
a naturally made geographical identity.
any major power bloc.
Equally, there is a cultural, linguistic,
religious and culinary affinity that defines • After the United Nations, it is the largest
South Asia. grouping of states worldwide.
• South Asia needs increased co-operations • The purpose of the organization was
among its countries to face challenges enumerated by Fidel Castro in his
225
Havana Declaration of 1979 as to ensure that the international community has

“the national independence, sovereignty, not created conditions conducive to
territorial integrity and security of non- development and has infringed upon the
aligned countries” in their “struggle right to sovereign development by each
against imperialism, colonialism, neo- member state.
colonialism, racism, and all forms • Reforms of the UN: The movement has
of foreign aggression, occupation, been outspoken in its criticism of current
domination, interference or hegemony UN structures and power dynamics,
as well as against great power and bloc stating that the Organisation has been
politics. utilized by powerful states in ways that
• It has 120 members as of April 2018 violate the movement’s principles. It has
comprising 53 countries from Africa, 39 made a number of recommendations
from Asia, 26 from Latin America and the that it says would strengthen the
Caribbean and 2 from Europe (Belarus, representation and power of “non-
Azerbaijan). There are 17 countries and aligned” states.
10 international organizations that are • South-South cooperation: The
Observers at NAM. movement has collaborated with other
• The countries of the Non-Aligned organizations of the developing world
Movement represent nearly two-thirds – primarily the Group of 77 – forming a
of the United Nations members and number of joint committees and releasing
contain 55% of the world population. statements and documents representing
the shared interests of both groups.
How India has benefitted from

NAM?
• High Ideals: In a world racked by
geopolitical muscle-flexing, the NAM
refreshingly provides a unique approach
to disarmament and economic
development. It freed India from a
cluster-mind mentality that has plagued
the foreign policy of many European
Current Activities of NAM nations.
• Current US policy and NAM: In recent • NAM enabled India and many newly
years the organization has criticized born countries in the 1950’s and 1960’s
certain aspects of US foreign policy such their sovereignty and alleviated the fears
as 2003 invasion of Iraq and the War on of neo-colonialism.
Terrorism, its attempts to stifle Iran and
• NAM made India a leader for many
North Korea’s nuclear plans etc.
countries who didn’t want to ally with the
• Sustainable development: The then global powers USA or USSR. India
movement is publicly committed to became a soft power leader which still
the tenets of sustainable development holds well till date.
and the attainment of Sustainable
• Balanced friendship: India’s non-
Development Goals, but it believes
alignment gave her the opportunity
226
to get the best of both the global

superpowers of the time in terms of aid,
military support, etc. This was in line with
her objectives of national development.
For example - India bought MIGs from
Russia and asked the US for other
technology-related assistance.
India with the policy of Non-alignment
could take up independent policies
without the interference of any of the
superpowers - the US and USSR.
• India was also one of the balancers
of power relation in the Cold War era.
Overall Non-alignment helped India in
its early and the most important stage of
growth.
227
• Engagements in multiple forums (IBSA, universalism.

BASIC, BRICS, QUAD, AIIB, G4, G20 • Economic growth: The countries of
etc) for varying economic, political and NAM have inherent assets, such as a
security purposes have made the Non- favourable demography, demand and
Aligned Movement “largely incidental” favourable location. The cooperation
to India’s pursuit of its national interest can lead them to higher and sustainable
since the end of the Cold War. economic growth.
• Can be an alternative to regional
Relevance of NAM in Today’s
groupings like TPP and RCEP.
World
• Multi-polarity: Now the present world Problems with NAM
scenario is at a slow but steady pace. • Could not prevent India-Pakistan wars
Unipolar is slowly shifting to the multi- and Indo China wars: During wars,
polar world and eager to look into the NAM members adopted a diplomatic
matter of global economic issues. Even approach. To begin with, during the 1962
G20 realized that they cannot withstand War with China, Ghana and Indonesia
without developing nations in this phase – two of the co-founders of NAM, along
of the acute crisis. with India adopted explicitly pro-China
• Can be used as a platform to bring about positions.
disarmament as it is a platform where • No coordinated approach: NAM was
India’s Leadership is recognised. formed more out of political compulsions
• Further it can be used to gather support and friendship of leaders rather than
for India’s quest to become a permanent for a concrete purpose. Members of the
member of the UNSC. NAM have different political, social and
• NAM declaration has several elements economic structures which hinders any
which developing nations need to take cohesive action each with their own set
note of like to decisively address the of interests.
challenges posed in the areas of peace,
economic and social development, CONCLUSION
human rights and international
cooperation, to promote the peaceful Given the relevance of NAM in present
times, NAM remains a critical diplomatic
settlement of disputes etc.
forum for India’s foreign policy interests.
• Voice of the South Bloc (Third World Therefore, India should start engaging with
Countries): The Hitherto unheard NAM constructively.
countries of the South can use it to
put forward their individual as well as Previous year Questions (PYQ)
collective demands.
1. “Increasing cross-border terrorist
• Check on big power ambitions: NAM
attacks in India and growing
consists of 120 developing nations and
interference in the internal affairs of
this overwhelming strength of this third
several member-states by Pakistan are
world nation acts as a check on big
not conducive for the future of SAARC
power ambitions. It stood as a unifying (South Asian Association for Regional
force against the traditional foreign Cooperation).” Explain with suitable
policy of great powers and strictly (2016) 15
restricts imperialism, nationalism, and
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CHAPTER - 36
INDIAN DIASPORA
INTRODUCTION professionals moving to the western

world and semi-skilled contract workers
• Indians have a long history of migration moving to the Gulf, West and South East
to many parts of world. The diaspora Asia in the wake of oil boom.
community is the result of different waves
of migration over hundreds of years driven • The Diaspora is composed of the Non-
by a variety of reasons-mercantilism, Resident Indians (NRI’s), Persons of Indian
colonialism, and globalization. Origin (PIO’s) and Overseas Citizens of
India (OCI’s).
• With the exception of North Korea and
Pakistan, members of the Indian diaspora • NRI are those Indian nationals who
can be found in every corner of the world. are still citizens of India but are merely
staying outside the country for a period
• According to UN’s International Migrant of more than 180 days or more in a year.
Stock 2019, the count of the Indian
disapora has increased 10% from 15.9 • These individuals have continued to
million in 2015 to 17.5 million, making it retain their passports and are very much
the largest in the world. Indian citizens. According to the Income
Tax regulations, those individuals who
• The United Arab Emirates (UAE) and USA have stayed outside the country for a
are the top destination of Indian migrants period of more than 180 days or more in
followed by the Saudi Arabia, Pakistan a year, are not liable to be taxed.
and Oman, as per the data.
• Persons of Indian Origin and Overseas
• In recent times, following the COVID-19 Citizens of India were two different
pandemic, the fortunes of the diaspora categories of people till 2015. The
have been mixed and the government Government amended the Citizenship
mounted its largest rescue operation Act in 2015 and merged these two
named the ‘Vande Bharat Mission’. categories.
• Presently, Overseas Citizens of India are
INDIAN DIASPORA those individuals who have renounced
• In first phase Indians spreads initially to their Indian citizenship and have taken
the countries of Africa, South-East Asia, the citizenship of another nation.
Fiji and Caribbean. This wave was mainly • The Amendment of 2015 permitted the
in response to the enormous demand foe holders of the OCI card which is issued by
cheap labour that arose immediately all the Indian diplomatic establishments
after British abolish slavery in 1833-1834. around the world, unlimited travel to
• During second phase in the last three India without any visas. They can travel
decades of the 20th century the to India, any number of times and can
character of migration began to change stay for any number of days in India
and a ‘new Diaspora’ led by high skilled without a visa.
229
• Following the COVID-19 pandemic, the • The members of the new diaspora
government has suspended the OCI card include those who have left India in
entry. Presently, those entering India will recent times. This has followed the period
have to carry a negative COVID-19 test of globalization when many Indian
report, carried out through the RT-PCR companies have invested in India and
method. many Indian companies have invested
• Further the 2015 amendments also abroad.
permitted the OCI cardholders to buy • There are also many Indian students and
property in India except plantation those who have migrated for the purpose
properties and also permitted them to of marriage.
open bank accounts and certain other
benefits were provided to them.
CONTRIBUTIONS OF THE
• Amongst this 17.5 million people, 4.4
million people live in the US and they INDIAN DIASPORA
form 1.3% of the total US population as
• Economic Growth: In the economic
of 2017.
sense, Indian diaspora is source of large
• The US hosts the largest number of inflows of remittances, which has been
members of the Indian diaspora. This helping balance the current account. The
is followed by the Gulf Cooperation members of the Indian diaspora remit
Council (GCC) which hosts about 5 close to USD 80 billion, annually, as of
million members of the Indian diaspora. 2018 and according to the World Bank
These nations are the UAE, Saudi Arabia, Indian diaspora is going to be the largest
Kuwait, Qatar, Oman and Bahrain. earner of remittances in the world in next
• Finally, a point to be noted regarding the few years.
diaspora remains the distinction between • Trade and Investment: Indian diaspora
the new and the old diaspora. has emerged as a significant source of
• Members of the old diaspora are those trade and investment in India. Further,
who have left India and migrated to the Reserve Bank of India issued a
other nations much before during the circular stating that investments made
period of colonial rule. Many of them by members of the Indian diaspora shall
went as indentured labourers also called be treated as domestic and not foreign
the Girmatiyas. They were taken to Sri investments.
Lanka, Fiji Islands, Trinidad and Tobago, • Business: Many of the diaspora members
South Africa and Mauritius amongst also have successfully established
other nations. businesses and have become top
• They have now become citizens of these ranking CEOs of global technological
nations and they have ties with India. companies. Lakshmi Mittal of Arcelor
They are mostly third or fourth generation Steel, Sundar Pichai of Google, Ajay
citizens or even earlier. Banga of MasterCard, Satya Nadella of
Microsoft, Indira Nooyi of Pepsico and
• Many Indians also then migrated to these
Tony Fernandez of Air Asia are some of
nations to set up their businesses, work in
the successful examples.
agricultural fields, become civil servants
amongst others. • In many African nations, individuals from
Gujarat have successfully established
230
themselves
members.
as business community ISSUES AND CHALLENGES
• Soft Power: Indian diaspora is an FACED BY THE DIASPORA
important part of India’s “soft diplomacy” • While generally, it is perceived by many
and has played substantial role in Indias of the people living in India that members
bilateral relations. Ex: Role of Indian of the diaspora live a cushy life and all
diaspora in the building of Indo-US are prosperous, this is far from the truth.
Nuclear deal. The members of the diaspora face many
• Holding Political Positions: In the political issues which need to be tackled urgently.
sense, members of the Indian diaspora are • In the economic sense, as globalization
Heads of States/ Governments of many is being threatened around the world,
nations such as Fiji Islands, Mauritius, many Indians fear losing their jobs.
Seychelles and Portugal amongst others. Nations such as the US have curbed the
• In Singapore, the leader of opposition H1B visas for a decade now. This has
and Foreign and Home Ministers are been strengthened during the presidency
people of Indian origin. In the UK, the of Trump. Other categories of visas too
Home and Finance Portfolios are held by have been restricted.
persons of Indian origin. • Recently, Kuwait too has decided to
• Science & Technology and Knowledge restrict the entry of foreigners including
based industries: There is a large Indians and other members of the GCC
reservoir of highly trained experts and are expected to do so.
scientists in knowledge based industries, • Ordinances such as the Nitaqat in Saudi
such as, information technology, science, Arabia which led to the nationalization
research and development etc. They can of the labour force also have led to loss
play an important part in developing of employment opportunities for Indian
India as an R & D centre. nationals. Many, especially those from
• Education and Culture: Education and the state of Kerala have suffered because
Culture are the other two areas where of this.
Diaspora can play an important role in • The COVID-19 pandemic has also
strengthening linkages between India exacerbated the crisis.
and countries of their residence. They
can be play a major role in revamping of • Further, in many of the trade pacts, India
the education sector and establishment is unable to proceed ahead because it
of world class institutions in the country. has been insisting on liberal visa regimes
Ex: India Business School, Hyderabad is for its nations, which is in accordance
a fine example of the role of Diaspora in with the General Agreement on Trade
developing management studies. and Services (GATS). This has been
noted when India is negotiating FTAs
• Philanthropy: Indian Diaspora has been with Britain, EU, ASEAN and Australia
eager to donate generously for worthy amongst other nations.
development causes in India. Major
Diaspora organizations and forums are • Another major issue remains the issue of
actively involved in the promotion of racial discrimination in abroad. Many
education, health care, rural development, Indian citizens have lost their lives in the
micro-financing etc. US in racial attacks. Members of the Sikh
community have been harassed in the
231
US and Europe. • The Pravasi Bharatiya Divas is celebrated

• In Singapore and Malaysia, they have every two years. Also a forum for issues
faced issues pertaining to discrimination concerning the Indian Diaspora is
in matters of housing. organized and the Pravasi Bharatiya
Samman Awards are given.
• There is also the issue of the Indian
workers being discriminated against and • SWADES Portal: This has been recently
being mistreated. This is especially true launched by the Union Ministry of Skill
in the case of nations in the West Asian Development and Entrepreneurship
and North African region. and Ministry of External Affairs. This
is to facilitate employment and skill
• The Indian diplomatic establishment has development of individuals who have
not satisfactorily revamped its consular lost their job abroad on account of the
services in these nations and often these COVID-19 pandemic.
blue collared workers, suffer silently.
• Know India Programme: It was programme
• Many of these workers have died in for diaspora youth conducted with a view
nations such as Qatar due to negative to promote awareness on different facets
working conditions. However, during the of life in India and the progress made by
recent visit of PM Modi to the UAE and the country in various fields. It provide
Saudi Arabia, these nations have vowed a unique forum for students & young
to improve the working conditions of the professionals of Indian origin to visit
Indian community. India, share their views, expectations &
• There is problem of dual citizenship experiences and to develop closer bonds
because majority of Indian diaspora with the contemporary India.
want to retain their Indian citizenship • Pravasi Kaushal Vikas Yojana is another
along with the citizenship of the country skill development programme that has
of their residence. been launched by Union Ministry of
• Finally, lack of social integration amongst Skill Development and Entrepreneurship
some members of the diaspora remains a and Ministry of External Affairs to train
cause for concern. Social isolation needs individuals seeking to gain employment
to be tackled and this is probably a task abroad.
that can be best carried out by the Indian • The Government has also decided to
associations in these nations. cancel the passports of spouses who ill-
treat their partners and against whom
GOVERNMENT INITIATIVES criminal cases are registered in India.
The cancellation of passports will lead to
The Ministry of External Affairs and other these individuals to come back to India
ministries have launched various initiatives
to face criminal charges.
for the welfare of the diaspora. This includes:
• E-Migrate system: This is a portal for
all employers willing to employ Indian CONCLUSION
nations to register themselves. • Overseas Indians can be our unofficial
• Madad Portal: Any citizen who is abroad ambassadors. They can play an
can register themselves on this portal important role in transforming India
and seek assistance from the nearest into a modern industrial State through
diplomatic establishment. knowledge power. They are a major
232
asset in transformation in the area of

healthcare and also make India a hub of
medical tourism.
• Prestige and strength of India has a
direct impact on the position of Diaspora
in the countries of their settlement. So,
it is in the interest of both India and her
Diaspora to develop a mutually beneficial
relationship.
Probable Questions
1. The COVID-19 crisis has brought about

a crisis amongst some members of the
Indian diaspora. Comment (10 marks)
2. The Government needs to re-examine
its diaspora policy and fine tune it.
Comment (10 marks)
3. Prestige and strength of India has
a direct impact on the position of
Diaspora in the countries of their
settlement. Comment
233
GLOSSARY
• State: In the subject of International a nation’s national interests, ideals
relations, this term shall necessary mean and objectives, public opinion and
two or more sovereign entities. Generally other determinants. It determines its
speaking, the term ‘state’ in international international relations.
law constitutes four elements (according • Diplomacy: It is the vehicle through
to Montvideo convention,1933): which a state carries out its foreign policy
Defined territory through negotiations and talks.
Population • National Interests: This is a permanent
Government concept. In international relations,
one should note that there are neither
Sovereignty permanent friends nor foes, but
Going by this definition, India is a permanent national interests.
state. Haryana is not a state as it lacks What constitutes a nation’s national
sovereignty. Palestine is not a state as interests varies between states. It cannot
per international law as it lacks a defined be measured in exact terms. However,
territory and sovereignty. some common national interests between
• Sovereignty: The ability of a state to nations are protection of their territories
legislate, administer and take decisions and boundaries, National security, social
among other things in matters pertaining and economic development.
to itself in a free manner without being Many critics have observed that India
coerced, will determine whether it is is yet to discover what constitutes its
sovereign or not. national interests and fine tune its foreign
In contemporary times, as inter policy accordingly. The K Subramanyam
dependence among nations increase, committee report is said to have come
this concept appears to be getting closest in defining Indian national
diluted, but however states act according interests.
to their national interests. • National Power: It is the ability of a nation
• Nation: It is a cultural notion. When to influence other nations to do or not
people get together in a state based on to do certain things through persuasion,
certain common cultural traits, interests sanction, rewards or by using brute force.
etc, they are said to be in a nation. There are many elements of national
• International Politics: It is the political power. All of them influence a nation’s
relations between two or more states. foreign policy. Some of the elements are:
• International Relations: It is the sum total Geography: Size of the nation,

of the various relationships like political, location, topography, terrain, climate
economic, cultural etc between two or and weather conditions. The term
geo-politics means policies which
more states.
are impacted by the geography of a
• Foreign policy: It is the sum total of nation.
234
Natural resources and presence of raw Food security of the nation

materials Insurgencies within the nation
Size of the population, its median age Terrorism in all its forms
and level of education, skills etc.
External security
Leadership of the nation- political and
administrative Cyber security-
Quality of Diplomacy Nations pursue their foreign policy to
ensure that their borders are safe and
Type of Government internal security taken care off. National
Size of Military security goals of a nation will have a
direct impact on its foreign policies.
National ideology, moral and
psychology. • Collective security: When two or more
nations get together in the form of an
• Deterrence: It is the ability of state
alliance or form an organization to
to prevent other states from pursuing
safeguards their national security goals.
policies which are detrimental to its
For example, Shanghai cooperation
interests. It can be social, economic, and
Organization, ASEAN etc.
political or security (Including Nuclear)
related matters. • Second strike capability: Ability of a
nation to respond using its nuclear power
• Balance of power: Simply explained, it
after being attacked by nuclear weapons
is a concept wherein a state prefers to
by another nation. This would mean that
maintain status quo with other similar
it first survives a nuclear attack on itself
states which have a more or less equal
and then responds to the attack.
national power. Hence if one nation
increases its clout socially, economically, • Super-power: The nation which has the
politically or militarily, the other nation ability to do the above as mentioned in
too will aspire to do the same. In the point 14.
traditional sense, as per the realist theory • Bipolar world: The presence of 2 super-
of International politics, survival of states powers in the world. This happened
are of paramount importance and in during the cold war period when the
an atmosphere of mistrust, nations will USA and USSR were considered the two
seek to ensure that there is a balance super-powers of the world.
of power maintained between itself and
its surrounding nations or competitors. • Unipolar: The presence of a single super-
It can be achieved by either reforming power in the world. After the disintegration
domestic policies or taking international of the USSR in 1991, the USA emerged as
action collectively. a single super-power.
• National Security: There is various • Multipolar world: The presence of

dimensions of national security which a multiple power centers around the
state seeks to guard. Some of them are: world. Since the new millennium this has
been the trend when power has shifted
Physical security of its citizens. towards the east from the west to India
Social harmony and tolerance and China. India has iterated its belief
in the concept of a multipolar world as
Energy security of the nation
opposed to china which has committed
Water security of the nation
235
its belief in an unipolar world. the comity of nations. In the 21 st century,

• Hyper power: Nations which launch it is important for India to take its rightful
attacks on other nations and entities on place in the comity of nations. This will
sudden or grave provocation. mean an ideology of peace backed by
a strong economy and military. This is
• International Organizations and exactly what NAM 2.0 envisages.
Regional Organizations are formed to
protect common values and interests • Offensive Defence:India’s policy has been
like international peace and security, timid in nature, especially on matters
economic needs, trade blocks etc. pertaining to its national security. It has
Examples are UN, IMF, ASEAN, WTO etc. been accused of staying mum till the
threat enters India before neutralizing it.
• Hard power: The visible elements of a
nation’s national power. The strength Incumbent National Security Advisor
of its military and its economic clout Ajit Doval came up with the concept
constitute hard power. It is an element of Offensive defence wherein threats
to arm twist other nations to follow a that are emerging against India will be
particular policy. neutralized at the source of the problem
rather than waiting for it to come closer
• Soft power a tool a nation has to to India. The Balakot and Uri Surgical
persuade other nation using its softer or strikes are actions in pursuance of this
invisible power. This term was coined by policy.
Joseph Nye. A nation’s culture, tourism,
food etc could be a part of its soft power. • No First Use Policy (NFU): This is an
important feature of India’s nuclear
• International law: The law or rules policy that was announced by former PM
governing the relationship and conduct Atal Bihari Vajpayee after the Pokhran
of nations and the relationship between blasts in 1998. According to this policy,
two or more nations and/or organizations India shall never use its nuclear arsenal
are called international law. at the first instance and shall always only
• NAM 2.0: This term has been coined by a retaliate and ensure massive destruction,
group of former diplomats and scholars in if attacked.
India who seek to enhance India’s role in
236
REFERENCES
1. The Indian Way- Dr S Jaishankar 17. Economist

2. Invest India-Union Ministry of Commerce 18. Times of India
and Industry 19. The Straits Times
3. Ministry of External Affairs 20. The Japan Times
4. Pax Indica- Shashi Tharoor 21. Embassy of India, Thimpu
5. Challenge and Strategy-Rajiv Sikri 22. High Commission of India, Dhaka
6. Indian Foreign Policy-Professor Harsh 23. High Commission of India, Colombo
Pant
24. High Commission of India, Male
7. Foreign Policies of India’s Prime
Ministers- Harish Kapur 25. Embassy of India, Kathmandu
8. Politics in India-Rajini Kothari 26. Embassy of India, Myanmar
9. IGNOU International Relations 27. Embassy of India, Tel Aviv
10. Institute of Defence Studies and 28. Embassy of India, Abu Dhabi
Analyses 29. NITI Aayog
11. Observers Research Foundation 30. High Commission of India, London
12. Brookings India 31. Ministry of Defence
13. Gateway House 32. Press Information Bureau
14. The Hindu 33. Indian Council for World Affairs
15. The Indian Express 34. The Print
16. Dawn
237

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What is the Real Issue?...................................................43 Strategic Importance of Myanmar to India..........66

Sports Cooperation.........................................................61 Significance of RCEP..........................................82

High Impact Community Development Projects India and RCEP...................................................82

Connectivity Projects...........................................88 CHAPTER-17: INDIA AND GULF COOPERATION

CHAPTER-21: INDIA-CHINA RELATIONS.................... 137 Note on EU...................................................................158

Pillars of Cooperation....................................................176 Involvement of EU.............................................198

UNIT - 6: MISCELLANEOUS Introduction...................................................................209

Introduction...................................................................196 UN General Assembly (UNGA).........................209

Libyan Crisis.................................................................196 United Nations Security Council (UNSC)..........210

Who is Fighting whom in Libya?........................197 International Court of Justice (ICJ)....................210

What do the different countries want?...............197 UN Economic and Social Council

Specialized Agencies and other UN Agencies.............210 Importance of BRICS for India..........................222

Buenos Aires Declaration on Women and Background......................................................223

UNSC reforms and India...................................213 Challenges........................................................225

of strength. A society characterised by

particularly with neighbouring countries • Gandhian thought and principles

• India emerged as a regional power in the improved relations with India.

on the verge of ascendancy.

Kautilya / Chanakya / Vishnugupta

INTRODUCTION another ecological asset shared between

• Ever since, India has extended as an observer.

• However, the Bhutanese Parliament • So far, India has already constructed

• Bhutan can also be considered as a mix

• However, once again in 2020, the Sakteng China-Bhutan Border Dispute

• About 60,000 Indian nationals live in • India continuously needs to explore

• Other border dispute involves the

technology, upcoming manufacturing 2. Examine the geo-political significance

1. The visceral anti-Indian attitudes of

INTRODUCTION support to Bangladesh and further stated

also signed. • Problem of Rohingya refugees:

• Peace is the foremost requirement for

1. Domestic factors have upset the

1 which granted special status to the erstwhile state

first session at Bombay. Sir Syed Ahmad

successive droughts. Control (LOC). It also had a clause that

• The Inter Service Intelligence (ISI) has

• Resources: The entire Indus river system

would mean controlled flow of water. Sir Creek

• Pakistan’s apprehensions stem from the What is the importance of SIR

defined by a “green line’’ and represented weapons is under threat as radical

Chashma 3 and 4 nuclear reactors in • With respect to India, it is generally

targeted killings of innocents and were responding to genuine grievances.

surgical instruments to Pakistan. to religious shrines between India and

due to the Pakistani armed forces and

PREVIOUS YEAR QUESTIONS (PYQ)

• Terrorist activities and mutual distrust

1. The actual issue between India and

INDIA-SRI LANKA RELATIONS

767 Million. requested for the further development

debtors. and maritime commerce of nations.

OTHER ISSUES AND

improve bilateral relations

PAST YEAR QUESTIONS (PYQ)

1. In respect of India-Sri Lanka relations,

INTRODUCTION and captured northern atolls of Maldives.

Nasheed who sought the arrest of the

between the two countries. India is • High Impact Community Development

independent policy dealing collectively PREVIOUS YEAR QUESTIONS (PYQ)

WAY FORWARD PROBABLE QUESTIONS

Introduction like the Lashkar E Taiba (LET), Jaish E

To combat the global pandemic of

Recent Agreements Signed Economic issues related to the

• Agreement on water management US’s reluctance to crackdown on