International Relations

Index
1. Indian Foreign Policy
2. Indian Diaspora
3. India’s relations with Neighbours
a. India-Pakistan
b. India-Afghanistan
c. India-Bangladesh
d. India-Nepal
e. India-Bhutan
f. India-Sri Lanka
g. India-Maldives
h. India-China
Indian Foreign Policy

● Introduction-
○ Foreign policy (FP) of a country is a set of strategic
principles which a country uses with respect to other
countries and actors in international spheres.

According to scholars like Morgenthau, the

supreme goal of any FP is the protection of its national
interest. In words of India’s former foreign secretary J.N.
Dixit Foreign policy of a country is a statement of what it
stands for and role that it takes upon itself and projects
to the world at large. Thus FP of a country dictates how a
country will act with other countries politically,
economically, socially and militarily.

As the field of International politics is dynamic the

FP of a country remains in a state of constant flux.
However the core goals of FP reflect the continuity in the
FP.

● Factors deciding the Foreign Policy of India

○ FP of a country is shaped by various factors ranging from
its history, geographic location, social structure etc.
India’s foreign policy is also shaped by the number of
such determinants.
■ Cultural values of Vasudhaiva Kutumbakam
 (one world), pluralism and tolerance, non- violence
had a key role in policies and principles of Indian
FP.
India’s experience with colonialism and struggle
for independence has had a deep impact on
independent India’s view of the world. Ancient
scholars like Kautilya have helped in developing the
strategic culture of Indian foreign policy. India’s multi
religious, multi ethnic social structure has had a
significant impact on India’s foregn policy choices. As
a result, Nehru's foreign policy was seen as an
extension of domestic policy.
■ Geography of a state is relatively the most
permanent and stable factor of its foreign policy.
India occupies a central position in Asia and
occupies the largest area in South Asia. Along with
this, India has a natural edge in the Indian Ocean.
India's dominance over the Indian Ocean is
necessary to become an important power of the
Indian-Pacific region. As this region is an important
route of trade and communication, it also plays an
important role in determining the foreign policy of
India.
■ Economic sovereignty is of utmost importance in
determining foreign policy of modern nation states.
Economic constraints in the 1990s led to India’s
shift from inward looking to active foreign policy in
search of new markets. More integrated economy
necessitates deep relations.
■ Countries' leadership also plays a key role in
shaping policies of a country. We can see changes
in FP choices since the times of Nehru to Modi.
Therefore strategists like K. Subramanyam held
that India’s FP is just a leadership function.
 ■ Apart from the domestic factors, FP is also
influenced by the changing International
atmosphere. Impact of the end of the cold war can
be seen on Indian FP. PV Narsimha Rao government
had to take bold decisions in search of new friends
and markets after the collapse of the USSR. India’s
shift from policy of Non Alignment to policy of active
engagement with all major powers can be seen in
the context of changing geopolitical milieu. In the
words of India’s MEA S. Jaishankar, now it is time
for India to engage America, manage China,
cultivate Europe, reassure Russia and bring Japan
into play. This shows that with the changing
geopolitical environment, India is now ready for
multiple alignments to achieve its national interest.

In conclusion we can say that foreign policy of

India in the globalised world is shaped by numerous
factors including external environment of changing
geopolitics.
Indian Diaspora

● Current state of Indian Diaspora -

○ Highlights of the International Migration report of 2020,
published by the Population Division of UN DESA
■ The Indian diaspora, one of the most vibrant and
dynamic, is the largest in the world, with 18 million
people from the country living outside their
homeland in 2020.
■ According to the report, the largest numbers of
migrants from India are living in UAE (3.5 million),
US (2.7 million) and Saudi Arabia (2.5 million).

There is one more feature which is very interesting

about the Indian migrant population is that they’re really
distributed all over the globe. Between 2000 and 2020,
the size of the migrant population abroad grew for nearly
all countries and areas of the world. India experienced
the largest gain during that period at nearly 10 million
 ■ Migration from India is largely motivated by labour
and family reasons and the share of forced
displacement is much lesser (about 10 per cent) in
the total.
■ Indian diaspora is comprised predominantly of
persons who are working, but also students and
people who moved for family reasons.
■ in the Gulf countries where they are playing a
central role in the economic prosperity of the
countries, working in construction, hospitality and
care services.
■ The diverse Indian diaspora also includes highly-
skilled scientists, engineers and doctors.
■ The US remained by far the largest country of
destination of international migrants with 51
million migrants in 2020, equal to 18 percent of the
world’s total. Germany hosted the second largest
number of migrants worldwide at around 16
million, followed by Saudi Arabia (13 million),
Russia (12 million) and the UK (9 million).
■ In many GCC countries, thousands of migrant
workers in the construction, hospitality, retail and
transportation sectors lost their jobs due to the
pandemic and were forced to return home.

● Evolution of India's Diaspora Policy

0 India was initially concerned about the fact that
championing the cause of overseas Indians might offend
the host countries. Hence Delhi was of the view that
diaspora should be fully responsible for their welfare and
security.
○ Nehru’s views were that the diaspora can not expect India
to fight for their rights and therefore India’s foreign policy
in the
1950s was accordingly based on the principle of non-
interference. India chose to stay away whenever the
emigrant Indians got into trouble in countries like Sri
Lanka, Myanmar etc.
○ However, Rajiv Gandhi was the first Prime Minister who
changed the diaspora policy in the 1980s by inviting
Indians
a

abroad, reg rdless of their nationality, to participate in

nation-building, much like the overseas Chinese
communities.
○ Later on, under Atal Bihari Vajpayee Government after
2000, there came a host of positive measures such as -
■ Separate Ministry of Overseas Indian Affairs - which
was ultimately merged in MEA in 2016
■ Initiatives like The Person of Indian Origin (PIO)
Card,
Overseas Citizen of India Card, Pravasi Bharatiya
Divas, Pravasi Bharatiya Samman Award to name a
few. Theme of PBD 2021 conducted virtually amid
Covid-19 pandemic "Contributing to Aatmanirbhar
Bharat '' reflects the two way street with India’s
engagement with diaspora.
■ NRI funds and voting rights for Indian citizens
abroad.
○ The Manmohan Singh government provided Voting rights
to NRIs in 2011, by amending the Representation of the
People Act 1950.
○ Recently the Modi government has also taken various
steps not just to protect the interests of the diaspora but
also to improve engagement. In 2015 the Ministry of
External Affairs launched an e-migrate system that
requires all foreign employers to register in the database.
The current government has launched a scheme called
‘Know India Program’ (KIP) in 2016 for diaspora
engagement which familiarizes Indian-origin youth (18-
30 years) with their Indian roots and contemporary
India. Prime Minister Modi has been actively engaging
with Indian diaspora during his foreign visits. Events like
“Howdy Modi” have helped in increasing engagement.
a

● Significance of Indian Diaspora ● Economic Front:

○ Indian diaspora is one of the richest minorities in
many developed countries, this helped them to
lobby for favourable terms regarding India's
interests. For example, at 2.8 million, Indians may
number just 1% of the U.S.
popul tion, but they are the most educated and
richest minority, according to a 2013 Pew survey.
○ The migration of less-skilled labour (especially to
West Asia) has also helped in bringing down
disguised unemployment in India.
○ Migrants' remittances have positive systemic effects
on the balance of payments. Remittances of $70-80
billion help to bridge a wider trade deficit.
○ By weaving a web of cross-national networks, the
migrant workers facilitated the flow of information,
commercial and business ideas, and technologies
into India.
● Political Front:
○ Many people of Indian origin hold top political
positions in many countries, in the US itself they
are now well represented in both the major parties
as well as in the government.
○ The political clout of India's diaspora can be
estimated by the fact, the role it played in turning
around doubting legislators into voting for the
India-U.S. nuclear deal.
● Foreign Policy Front:
○ Indian diaspora is not just a part of India’s soft
power, but also acts as a bridge between India and
respective countries. For instance, India’s relations
with most of the African as well as Latin American
a

countries were built upon the goodwill created by

the diaspora.
○ The institutionalisation of “diaspora diplomacy” is a
distinct indication for the fact that a country’s
diaspora community has become considerably more
important as a subject of interest for foreign policy
and associated government activities.

● Challenges Faced by Indian Diaspora

0 Heterogeneous diaspora: Indian Diaspora has different
demands from the Indian Government based on
regional and other factors.
■ The diaspora from the Gulf, for example, look to
India for support on welfare issues.
■ While those from wealthier nations such as the US
look to India for investment opportunities.
■ The Indian communities in countries such as Fiji
and Mauritius, meanwhile, desire to reconnect with
the country on cultural grounds.
○ Anti-Globalization: With the rising Anti-globalization
wave, there has been an increase in the incidents of
suspected hate crimes against the Indian community.
Incidents of killings of indian origin persons are not new
in western countries.
○ West Asian Crisis: The volatility in West Asia, together
with the fall in oil prices, has caused fears of a massive
return of Indian nationals, curtailing remittances and
making demands on the job market.
○ Returning Diaspora: Diaspora in West Asia is semi-skilled
and mainly engaged in the infrastructure sector. After
the infrastructure boom will get over India will have to be
ready for the eventuality of returning Indian workers.
a

○ Administrative hindrances - There are many inadequacies

of the Indian system for the diaspora to collaborate with
India or to invest in the country.
■ For example, grievances like red tape, multiple
clearances, distrust of government are acting as
hindrances in fulfilling opportunities presented by
Indian Diaspora.
○ Negative Fallout: It must be remembered that having a
strong diaspora does not always translate to benefits for
the home country. India has had problems with negative
campaigning and foreign funding, coming from abroad,
for separatist movements like the Khalistan movement.
 Way Forward -
● Indian diaspora can provide the requisite strategic
impulse, which makes it all the more important to unlock
India's potential.
● India should formulate a new NRI policy, the government
must immediately work with developed countries to ask
that they kick back a portion of the income tax revenues
they collect from the Indian diaspora. This is fair because
these countries did not invest anything in creating this
talent but benefit immediately when the immigrant pays
taxes abroad.
● There is a need for a strategic diaspora evacuation policy
from conflict zones in a world where crises materialise
without warnings and give very little reaction time for
governments.
● India’s foreign policy aims to translate this two way
engagement with diaspora into actual contribution for key
projects like Swachh Bharat, Clean Ganga, Make In India,
Digital India, and Skill India.
● VAJRA (Visiting Advanced Joint Research Faculty)
scheme which seeks to formalise a rotation program
wherein top NRI scientists, engineers, doctors, managers
and professionals serve Indian public sector organizations
for a brief period, lending their expertise. More such
initiatives can be considered by the government of India.
 India’s relations with Neighbours

India-Pakistan

● Introduction -
○ India’s relations with Pakistan are the most complex of its
ties with its neighbours. In keeping with its “Neighbourhood First
Policy”, India desires normal neighbourly relations with Pakistan.
India’s consistent position is that issues, if any, between India
and Pakistan should be resolved bilaterally and peacefully, in an
atmosphere free of terror and violence. Action against terrorism
emanating from across the borders remains India’s core concern
in its relations with Pakistan. The onus is on Pakistan to create
such a conducive environment. It has been made clear that India
will not compromise on issues relating to national security and
will take firm and decisive steps to deal with all attempts to
undermine India’s security and territorial integrity. ● Evolution of
the relations -
● Nehru’s policy towards Pakistan was rooted in idealism.
He saw Pakistan not as a threat and felt Pakistan will be
 attracted towards India in future. The policy has been
criticized for his miscalculation of Pakistan’s ambitions.
Nehru signed the Indus Water Treaty with Pakistan giving
a larger share to the lower riparian state. India’s policy of
Non Alignment and self sufficiency resulted in India being
economically and politically isolated. On the other hand,
Pakistan had developed close relations with the USA as
well as China thus benefiting from this engagement.
● Post-Nehru India started shifting towards a more realist
approach. To Balance US-Pakistan-China axis India
signed a treaty of peace, friendship with the USSR.
Ultimately the 1971 Bangladesh liberation war led to the
breaking away of East Pakistan. The 1971 war has been
seen as the biggest military victory, yet the biggest
diplomatic defeat as Pakistan did not implement the
provisions of the Shimla agreement. The Shimla
agreement which was signed between both countries had
provisions like-
■ The Charter of the UN shall govern relations between
India and Pakistan.
■ Any differences shall be settled by peaceful means
and through bilateral negotiations. Pakistan keeps
violating this principle repeatedly.
■ Both countries shall respect the territorial integrity of
each other and not interfere in the internal matters
of each other.
○ Since the 1980s Pakistan has adopted a policy of proxy
war over the earlier approach of conventional warfare.
● In the 1990s India started opening its economy. As a
result efforts were taken to improve ties with neighbours.
India adopted cordial approach towards neighbours
including with Pakistan as a part of Gujral Doctrine.
Within a short span there was significant improvement
 and relaxation of tensions. Both countries agreed on visa
liberalization for students and patients.
● The Vajpayee government understood the importance of
improving relations with neighbours. He, in the context of
India’s relations with Pakistan, had famously said, “You
can change your friends but not neighbours”. Visit to
Pakistan and his Bus diplomacy were landmark decisions
in effort to improve relations. However all these
constructive steps by India were followed by Kargil war
and hijacking of Indian Airlines IC814 flight derailing the
ties.

● The Manmohan Sigh government also worked towards

normalization of ties. PM Singh had once said, ''I dream of
a day, while retaining our respective national identities,
 one can have breakfast in Amritsar, lunch in Lahore and
dinner in Kabul.
That is how my forefather lived. That is how I want our
grandchildren to live”. Focus of India was on economic
integration of the region. Both the leaders were close to
solving issues like Kashmir, however the 26/11 attack
derailed talks.

●
● Areas of concern -
○ Terrorism and Kashmir -
■ Terrorism emanating from territories under
Pakistan's control remains a core concern in
bilateral relations. India has consistently stressed
the need for Pakistan to take credible, irreversible
and verifiable action to end cross border terrorism
against India.
■ Deeply embedded popular narrative of ‘India as
enemy’ that feeds into a number of religious groups’
agendas and adds life to their political and
ideological relevance remains a challenge that needs
to be addressed. Failure of democratically elected
governments and increasing extremism of religious
fundamentalists within the country and spilling out
of it have become a serious security concern in the
region.
■ Pakistan is obsessed with Kashmir as a result its
deep state guides its policy towards India. Situation
 has worsened since militancy erupted in Kashmir
since the 1980s, backed by Pakistani apparatus.
This has resulted in poisoning the minds of youth
and encouraging them to wage war against their own
homeland.
■ Pakistan has made multiple efforts towards
destabilizing India. Prominent incidents
include 1999 hijacking of Indian Airlines
flight, 2001 attack on Parliament, 2008 attack
in Mumbai, and 2016 Uri attack.
■ Following the cross border terrorist attack on
an army camp in Uri in J&K in September
2016 and continued incidents of terrorist
infiltrations, the Indian Army conducted
surgical strikes at various terrorist launch
pads across the Line of Control, and inflicted
significant casualties to terrorists. A
Heinous and despicable Pulwama cross-border
terror attack had led to the martyrdom of 40
security personnel. This terrorist act was
perpetrated by
Jaish-e-Mohammed (JeM), a Pakistan-based
and supported terrorist organisation, which is led by UN
designated and internationally proscribed terrorist Masood
Azhar. In February 2019, India carried out a successful
anti-terror pre-emptive air strike against a training camp of
JeM in Balakot, Pakistan. ○ Sir Creek issue
■ Sir Creek is a 96 km strip of tidal estuary at the
mouth of
Indus disputed between India and Pakistan in the
Rann of Kutch marshlands. Considered to be among
the largest fishing grounds in Asia. Possible
presence of great oil and gas concentration under
the sea.
 ■ Pakistan claims the entire creek whereas India claims
that the boundary lies mid-channel. According to
international law and the Thalweg principle, a
boundary can only be fixed in the middle of the
navigable channel. Sir Creek is navigable most of the
year and hence this is the basis of India's claim.
○ Indus Water Treaty 1960 −
■ It is a water-distribution treaty between India and
Pakistan, brokered by the World Bank, to use the
water
 available in the Indu River basin. It was signed in
1960 by Nehru andAyub Khan.
■ The Treaty gives control over the waters of the three
"eastern rivers" — the Beas, Ravi and Sutlej to
India, while control over the waters of the three
"western rivers"— the Indus, Chenab and Jhelum to
Pakistan
■ The treaty allows India to use the western river
waters for limited irrigation use and unlimited non-
consumptive use for such applications as power
generation, navigation, floating of property, fish
culture, etc.
■ Treaty sets out a mechanism for cooperation and
information exchange between the two countries
regarding their use of the rivers. The Permanent
Indus Commission (PIC) was set up as a bilateral
commission to implement and manage the Treaty.
The Commission solves disputes arising over water
sharing. Meeting of PIC is held alternately in India
and Pakistan at least once every year as mandated
by treaty
■ Pakistan has been flagging concern over India’s
hydroelectricity projects like Ratle (850 MW, Chenab),
Kishanganga (330 MW, merges with Jhelum) being developed in
the Indus river basin, contending these violate the treaty.In the
aftermath of the 2016 Uri attack, India decided to review the
treaty. In Prime Minister Narendra Modi’s words, "blood and
water cannot flow together." After the review, India decided to
restart the Tulbul Project on the Jhelum River, which was
previously suspended in response to Pakistan's objections.
 ● Current state of relations

○ Economic -
■ India's main interests in economic cooperation with
Pakistan lie in hydropower, water management, gas
transportation, tourism, and road connectivity to
Afghan and Iran. Proposed TAPI Gas pipeline from
Turkmenistan
to India through Paki tan can be a turning point.
Bilateral trade between India-Pakistan is very
limited.
■ India had accorded MFN status to Pakistan in 1996
butPakistan didn’t reciprocate the gesture. In August
2012,
India announced a reduction of 30% in its SAFTA
Sensitive List for non-Least Developed Countries of
SAFTA [including Pakistan], bringing down tariff on
264 items to 5% within a period of three years.
However, Pakistan continued to follow restrictive
trade policy towards India. In the aftermath of the
cross border terror attack in Pulwama, India, in
February 2019 withdrew Most Favoured Nation
Status to Pakistan. India also hiked customs duty
on exports from Pakistan to 200%. Subsequently,
as part of its unilateral measures, Pakistan
suspended bilateral trade with India on 7 August
2019.
○ Political -
■ India has made a number of attempts to build
normal neighbourly relations with Pakistan. In
2014, this was manifested in the invitation to the
then Prime Minister Nawaz Sharif for the swearing-
in ceremony. EAM also took the initiative to propose
 a Comprehensive Bilateral Dialogue in December
2015. These initiatives have been responded with
acts of crossborder terrorism and violence against
India including the cross-border terror attack on
Pathankot Airbase in January 2016; attack on
Army Camp in Uri in August 2016; and terror
attack on the convoy of Indian security forces in
Pulwama by Pakistan based Jaish-e-Mohammad
(JeM) in February 2019.
Under such circumstances, it was assessed that
any conversation with Pakistan would be meaningless.
Pakistan is yet to respond like a normal neighbour. It
has continued to sponsor cross border terrorism
against India; restrict normal trade, people to people
exchanges and connectivity with India. On 7 August
2019, Pakistan announced unilateral measures,
including downgrading of diplomatic relations,
uspension of bilateral trade and review of bilateral
agreements with India. Subsequently, Pakistan
suspended all bus and train services between India
and Pakistan. India has rejected Pakistan’s attempt to
present an alarming picture of bilateral ties to the
world by taking such unilateral measures. India has
urged Pakistan to review its unilateral actions in
respect of relations with India so that normal channels
of diplomatic communications are preserved. ○
Strategic-
■ The Modi government has modified India’s
conventional policy towards Pakistan. Conventional
approach followed the policy of continued talks with
Pakistan despite repeated terrorist strikes. Current
policy of India can be understood from two
doctrines.
■ Modi doctrine -
 ○
1. PM Modi started with the Neighbourhood First
policy. He visited Pakistan and made efforts to cultivate a
relationship with Navaz Sharif. But incidents like
Pathankot, Uri tested India's patience and resolve.
Since then India has recalibrated its policy towards
Pakistan by adopting a three-pronged approach.
Not holding formal talks until Pakistan stops using
terrorism as an instrument of state policy against India.
 Retaining the right of retaliation against those elements
and locations along LOC that are complicit in perpetrating
cross border terrorism. (Balakot model)
India has made a concerted attempt to expose Pakistan’s
complicity internationally in employing terrorism as state
policy. E.g. through UNGA address, BRICS declaration,
FATF monitoring etc.
■ Doval Doctrine -
○ Talks about isolation of Pakistan, use
Pakistan’s vulnerabilities like Balochistan,
Gilgit-Baltistan, Indus Water Treaty.
○ The ‘offensive-defensive mode’ as informally
explained by NSA Doval requires going into
Pakistan and tackling the problem where it
originates. The Balakot strike seems to be
one of the perfect examples of Doval
doctrine.

○
Way Forward -
■ Policy of diplomatically isolating Pakistan does not
seem to be succeeding as Islamabad has stepped up
its diplomatic efforts to engage Beijing, Moscow,
and Tehran. Hence, Scholars like Shashi Tharoor
have suggested that as India-Pakistan cannot
engage directly hence need to go for back channel
diplomacy. According to Tharoor, India should
improve its relations with countries like the
 USA, Saudi, UAE which have leverage with Pakistan.
Recent unverified reports talk about ongoing
backchannel diplomacy mediated by UAE shows
that efforts are going in that direction.
■ However, as Ambassador Sharat Sabharwal
suggests, For normal relations with Pakistan there
is need for constructive steps by Islamabad to
ensure it walks the talk. There must be efforts by
Pakistan to work for a pragmatic and forward-
looking solution to Kashmir without resorting to
terror,building a normal, MFN trading relationship
with India, permitting India transit to Afghanistan
and beyond, and not blocking SAARC
initiatives, particularly those for intra-regional
connectivity. We are nowhere close to that situation.
The U-turn on import of sugar and cotton exposes
the true face of Pakistan.
India-Afghanistan

● Introduction -
○ India and Afghanistan have a strong relationship based on
historical and cultural links. The relationship has its
foundations in the historical contacts and exchanges
between the people. In the recent past, India-Afghanistan
relations have been further strengthened by the Strategic
Partnership Agreement, which was signed between the
two countries in 2011.
The Strategic Partnership Agreement (SPA) between the two
sides, provides for assistance to help rebuild Afghanistan's
infrastructure and institutions, education and technical
assistance to rebuild indigenous Afghan capacity in different
areas, encouraging investment in Afghanistan's natural
resources.

Providing support for an Afghan-led, Afghan-owned,

broad-based and inclusive process of peace and
reconciliation, and advocating the need for a sustained
and long-term commitment to Afghanistan by the
international community. ● Evolution of relations-
○ Afghanistan has remained the place of the Great Games
for a long time. This place saw many empires wanting to
have control over it but in reality it has remained as the
“graveyard of empires.” The beginning of decline of
superpowers like the USSR(in 1980s) and USA(since
2001) has a common thread that runs through
Afghanistan.
○ During the cold war India did not have direct bilateral
relations with Afghanistan. India largely relied on the
USSR who was supporting the communist led government
in Afghanistan till 1989.
● After its fall, India supported the coalition government that
took control, but relations and contacts ended with the
outbreak of another civil war. Ultimately in 1996 Taliban,
supported by Pakistan, came to power. Taliban’s anti-India
activities like destruction of Buddhist monuments, role in
hijacking of Indian Airlines flight IC814 made relations
soar. As a result India became one of the key supporters of
the anti-Taliban Northern Alliance.
○ After the fall of Taliban in 2001 India established ties with
the newly established democratic government of
Afghanistan. Since then India has provided aid worth more
 than $3 billion and also has actively participated in the
process of reconstruction and rebuilding of Afghanistan.
India led projects like Salama dam, construction of
Parliament building are among the notable examples.
India's support and collaboration extends to rebuilding of
air links, power plants and investing in health and
education sectors as well as helping to train Afghan civil
servants, diplomats and police. India has regularly
supported Afghan students by providing them with
scholarships. Delhi also seeks the
development of supply lines of electricity, oil and natural
gas in order to help revive war torn neighbours
infrastructure.

■
○ India has constructed Zaranj - Delaram highway paving
way for alternative route for trade and connectivity to
Afghanistan through Chabahar port in Iran. This has
helped India reduce dependence on Pakistan.
 ■
○ India’s efforts helped Afghanistan in becoming a member of
SAARC in 2007.
○ In 2009 the US announced a schedule to withdraw its
military from Afghanistan. Pakistan’s proposal of
reconciliation with the Taliban was accepted by the USA.
US accepted the theory of
Good taliban and Bad taliban given by Pakistan
○ In light of these events India signed a Strategic
partnership agreement with Afghanistan in 2011. India had
promised to stand by Afghanistan as it was preparing to
assume the responsibility for governance and security after the
withdrawal of international forces in 2014. Under the military
assistance India has been training security forces of
Afghanistan and also providing defence related equipments like
Mi-25 attack helicopters. High level visits including PM Modi’s
visit in December 2015 reflects the deep rooted nature of
partnership between two neighbours. ● Current state of
relations● Political -
■ High level visits from both sides have led to speedy
implementation of the key initiatives launched by
India in Afghanistan. Prime Minister visited Herat
 in 2016 where he, along with President Asharaf
Ghani jointly inaugurated the Afghan-India
Friendship Dam, earlier known as Salma Dam.
President Ghani paid a working visit to India in
2018. The two leaders reviewed and positively
assessed the progress of the multifaceted India-
Afghanistan strategic partnership. They expressed
satisfaction at the increase in bilateral trade that
had crossed the US $ 1 billion mark. Further, the
leaders also expressed determination to strengthen
connectivity between the two countries, including
through Chabahar port and Air-Freight Corridor. It
was agreed to deepen the ‘New Development
Partnership’ in the areas of high impact projects in
this field of infrastructure, human resources
development and other capacity building projects
in Afghanistan.
■ Human resource development and capacity building
initiatives constitute an important segment of India's
assistance in Afghanistan. On an average, more than
3,500 Afghan nationals undergo training/education
in India every year. India’s assistance in human
resource development has helped to create a large
pool of trained manpower that has been an asset to
both the public and private sectors in Afghanistan.
■ To combat the global pandemic of COVID-19 and
related issues of food security, India had committed
to deliver 75,000 MT of Wheat to Afghanistan in
2020. In addition, India has also undertaken the
supply of drugs and related supplies to fight the
pandemic. The Medical Diagnostic Centre in Kabul
was set up in 2015. The Centre provides latest
diagnostic facilities to children of Afghanistan
thereby generating goodwill for India.
● Economic -
0 Given the geographical proximity and historical
linkages, India has been a natural trading partner
for Afghanistan and is the largest market in South
Asia for its products. The total bilateral trade
between India and Afghanistan for 2019-20 was at
US$ 1.5 billion. While there is immense potential to
expand bilateral trade, the difficulties in transit via
Pakistan was a major hurdle in expanding the trade
ties. In order to expand trade to India, the Afghan
government in collaboration with the Government of
India launched a dedicated Air Freight Corridor in
2017. Since its inauguration in 2017, India-
Afghanistan Air-Freight Corridor has witnessed
close to a 1000 flights, carrying goods valued at
over US$ 216 million. This has provided a boost to
Afghan exports to India and has directly benefited
Afghan farmers and small traders and exporters.
India and Afghanistan now aim to expand the
Corridor to other cities in both the countries.
Another important initiative which strengthened
bilateral trade was the operationalization of the
Chabahar Port in 2017, followed by a commercial
agreement to manage port operations in 2018.
Through the Chabahar port India has been sending
supplies of wheat, pulses and other food items as a
part of India’s assistance to Afghanistan thus
clearly demonstrating the feasibility of Chabahar
Port as a transit point for Afghanistan and
eventually to Central Asia.
○ During FY 2019-20, 37 projects were completed in
various provinces of Afghanistan under the High
Impact Community Development Project (HICDP)
scheme of Government of India. Both countries
have been part of the proposed TAPI Pipeline which
aims to transport Natural gas from Turkmenistan
to India. India has signed an agreement for the
 construction of the Shahtoot Dam near Kabul.
Recently Afghanistan also received 500,000 doses
of AstraZeneca’s COVID-19 vaccine from India.
Strategic −
■ Afghanistan is important for India’s aim to connect
Central Asia & to achieve this India signed a
trilateral transit agreement with Iran and
Afghanistan which allows Indian goods to reach
Afghanistan through Iran. India has been training
military and diplomatic personnel of Afghanistan.
Similarly, over the years India has been a key
supplier of the defence equipments to Afghan
military. Afghanistan is also important for India’s
security interests. Therefore India is keeping a close
watch on the ongoing
Afghanistan peace deal. In this context, the Ministry
of External Affairs of India released a statement
which reiterated that India believes any peace
process must be Afghan-led, Afghan-owned and
Afghan-controlled, and has to respect the national
sovereignty and territorial integrity of Afghanistan.
● Way Forward-
India’s engagement in Afghanistan is crucial for the
Afghan state’s long-term viability and India has done well
to continue its engagement despite facing the wrath of its
adversaries. As USA has planned an early exit from
Afghanistan,

India needs to ramp up its economic diplomacy and bring

immediate benefits to Kabul and also engage with
likeminded stakeholders to protect democratic institutions
of Afghanistan. India should also work with the
international community to prevent the future of
Afghanistan from returning to its past.
India-Bangladesh

● Introduction -
○ India was the first country to recognize Bangladesh as a
separate and independent state and established
diplomatic relations with the country immediately after
its independence in 1971. India’s links with Bangladesh
are civilisational, cultural, social and economic. There is
much that unites the two countries -a shared history and
common heritage, linguistic and cultural ties, passion for
music, literature and the arts. This commonality is
reflected in our multi-dimensional and expanding
relations. In the last more than four decades, the two
countries have continued to consolidate their relations
 and have built a comprehensive institutional framework
to promote bilateral cooperation in all areas.

● Evolution of the relations−

● India was the first country to recognize Bangladesh in
1971 immediately after the Bangladesh liberation war.
Indian Army had a key role in the Bangladesh liberation
war. Between 1971 to 1975 relations were cordial. PM Indira
Gandhi and Sheikh Mujibur Rahman had signed the Treaty
of Friendship, Cooperation and Peace in 1972. It included
principles of Panchsheel.
● It condemned colonialism and racialism of all forms.
Treaty talked about making joint studies and joint action in
the field of flood control, river basin development and
development of hydro-electric power. It also envisaged
promoting relations in the field of arts, literature, education,
culture.
● However, since early days there was suspicion about the
treaty. Bangladeshi defence forces also felt that the treaty
undermined their importance. During the regime of Zia ur
Rahman(1975 1981) there was resentment, suspicions
about India’s intentions in their country. Bangladesh
developed closer ties with Islamic nations. It also
developed opposite Cold war alliances in the 1980s to that
of India. The Zia Ur Rahman regime was actively involved
in destroying the secular nature of society. Zia’s efforts led
to the formation of conservative Bangladesh Nationalist
Party (BNP) in 1978. Whenever this party ruled in
Bangladesh, there was uneasy strain in its relationship
with India. In 1985 conservative ruling Jatiya Party
pushed for formation of South Asian Association of
Regional Cooperation (SAARC) to contain Big Brother
India.
● In 1992 India allowed creation of Teen Bigha Corridor for
connectivity to a Bangladeshi enclave in India called
 Dahagram-Angarpota. Despite the constructive steps by
India, PM Khaleda Zia’s anti-India stand continued.
● In 1996 there were efforts from both sides to revive
relations. New Delhi could sign a Water sharing agreement
on Ganga with Dhaka. However, again during the term of
PM Khaleda Zia (2001-2007) hostility against India was at
its peak. She used hostility against India as a cover for
maladministration and widespread charges of corruption.
● Since 2009 we can see a turning point in the relationship.
The "Golden chapter" in Indo-Bangla relationship started
with PM Hasina’s efforts to revive ties. She expressed
resolve to act against the groups active in Bangladesh that
were inimical to India’s interests. With her help India
could arrest top insurgent leaders of ULFA and Bodoland.
In 2014 two countries came to
a resolution of their maritime boundary dispute. Next year
saw resolution of conflict over land boundary. The Land
Boundary Agreement of 2015 was a revised version of the
1974 agreement. The agreement made way for settlement
of a complex and long standing border issue.

● Under the agreement, out of a total 162 enclaves, India

received 51 Bangladeshi enclaves while Bangladesh
 received 111 Indian enclaves. People living in the
respective areas were given a choice of country. The only
remaining Bangladeshi enclave Dahagram-Angarpota has
been already connected by a Teen Bigha corridor.
○

● Current state of relations

● Economic −
0 Bangladesh is India’s biggest trade partner in South
Asia and India is the second biggest trade partner of
Bangladesh. Bilateral trade between India and
Bangladesh has grown steadily over the last
decade. In 2017 bilateral trade had reached $8.8 billion
(India- $7 billion surplus). There is a presence of Border
Haats along the border for the welfare of the local
communities across the border. In order to promote
cooperation on bilateral trade, an India-Bangladesh CEO’s
Forum was launched in December 2020 to provide policy
level inputs in various areas of trade and investment and
also to facilitate exchanges among the business
communities of both the countries. Cooperation in the
power sector has become one of the hallmarks of India-
Bangladesh relations. Bangladesh is currently importing
1160 MW of power from India. India extended a $5 bn line
of credit to Bangladesh. India is working with Russia in
developing the Rooppur nuclear power plant in
Bangladesh. ● Political −
○ The year 2020, despite onset of the COVID-19
pandemic, witnessed intense high level
engagements at political and official levels
beginning with the exchange of New Year greetings
between Prime Minister Modi and Prime Minister
Sheikh Hasina on 01 January 2020. Prime Minister
Modi’s participation in birth centenary celebrations
of Bangabandhu Sheikh Mujibur Rahman through
a video message in March 2020 and to discuss the
regional situation in the wake of the COVID-19
pandemic reflects the bond of friendship between
the two countries. The two Prime Ministers held a
summit on a virtual platform in December 2020
and discussed all aspects of bilateral relations and
exchanged views on regional and international
issues. On this occasion, both countries signed
seven bilateral instruments in various sectors
including hydrocarbons, agriculture, trade,
development projects, and conservation of heritage.
Land Boundary Agreement, involving swapping of
162 enclaves (1974 pact) has been successfully
implemented by both sides. Both countries are
working on developing consensus over a water
sharing agreement on the Teesta river. There is an
enthusiasm about Regional integration through
multilateral platforms like SAARC, BIMSTEC, BBIN.
As both countries are facing the consequences of
climate change already there is a potential in
cooperation through Coalition for Disaster
Resilience Infrastructure (CDRI).
● Connectivity −
0 Integrated Check Posts (ICP), which have been
established along the border, will facilitate
 cross−border movement of people and goods. Both
the neighbours are moving forward with the BBIN
agreement to allow hassle free entry and exit of
motor vehicles and to improve logistical efficiency
along with integration of economies. Bandhan
Express has been launched to allow connectivity
across the border. Currently, there are four border
haats between Bangladesh and India. These Haats
not only act as a market for buying daily
commodities but also as a reunion spot for families
living across both sides.

○
● Strategic -
○ High level exchanges in the year 2020 include the
second edition of India-Bangladesh CORPAT
‘Bangosagar’ exercise, Regional Commanders
meeting of Coast Guards, and the third Annual
Defense Dialogue. Besides, both the militaries are
participating in joint exercises like Sampriti,
BIMSTEC Nations Military Field Training Exercise
(Milex) etc. India has extended a line of credit worth
$500 million for purchase of defence equipment.
Bangladesh is important for India to have
connectivity to a strategically key region of the
North-East.
● Areas of concern -
● Teesta water sharing -
○ Teesta is the 4th largest transboundary river between
two countries. Bangladesh has sought an “equitable”
distribution of Teesta waters from India, on the lines
of the Ganga Water Treaty of 1996, but to no avail.
Rangpur, its rice bowl, cannot be cultivated for
winter crops due to withdrawal of water by India.
● India claims a share of 55% of the river's water, as it has
83% catchment area. Bangladesh wants 50% of the
Teesta's waters between December and May every year,
because that's when the water flow to the country drops
drastically.
● A 2011 interim deal that was supposed to last 15 years
gave India 42.5% of the Teesta's waters and gave
Bangladesh 37.5%. However, the deal could not
materialise as West Bengal CM Mamata Banerjee opposed
this deal. India's reluctance is because there is not enough
water to meet our irrigation needs.

● Illegal migration from Bangladesh -

○ Illegal immigration from Bangladesh to India, which
includes both refugees and economic migrants,
continues unabated. Most Bangladeshis already hold
ration cards, voter identity cards, or even the
unique−identity Aadhaar cards. This has proved to
be a huge challenge for India with serious
implications for its resources and national security.
Some of the Bangladeshis have also fueled
insurgency in some of the neighbouring states.
Dhaka has neither acknowledged the presence of a
large number of illegal Bangladeshi immigrants in
India nor taken any effective measures to control the
flow of its nationals into India. During the recent
 issue of protests over NRC and Citizenship
Amendment Act (CAA) there have been references to
Bangladesh. Recent Rohingya crisis has also
remained a sensitive issue between two countries. As
India shares a long border of approximately 4060 km
with Bangladesh there have been issues with respect
to border management.

● China in Bangladesh-
● Bangladesh also seems to have a place in Chinese policy of
encirclement of India. Bangladesh’s strategic partner and
its biggest supplier of arms. At the same time Bangladesh
has concerns that it can be held hostage by the
expansionist China. It is evident from recent controversy
over Chinese envoy’s warning to Bangladesh about
possible engagement with Quad.

Way Forward -
● India−Bangladesh relations can be built primarily upon
three pillars: trade and commerce, concerted counter-
terror initiatives, and bilateral trust and confidence
building efforts.
● Both the countries being major stakeholders in regional as
well as international groupings: IORA, BIMSTEC, SAARC,
and the commonwealth have a range of options to
cooperate and collaborate on.
● As PM Modi held that the current phase of bi-lateral
relations is a “the golden chapter” which needs to be
furthered.
● A moderate, secular and stable Bangladesh will go a long
way in stabilizing South Asia.
● India, being the bigger and economically more powerful
can and should take the lead by taking generous and
constructive steps towards Bangladesh(Gujral doctrine)
India-Nepal

● Introduction-
○ As close neighbours, India and Nepal share a unique
relationship of friendship and cooperation characterized
by open borders and deep-rooted people–to–people
contacts of kinship and culture. There has been a long
tradition of free movement of people across the borders.
Nepal shares a border of over 1850 Kms in the east,
south and west with five Indian States. Geography,
culture and history link India and Nepal in a manner no
other two countries are connected. Therefore it is said
that India and Nepal are lodged in each other's
intestines, each sharing the turbulence and tenacity
from the other.
● Evolution of the relations -
○ In 1950 India-Nepal signed ‘Treaty of Peace and Friendship’
■ The India-Nepal Treaty of Peace and Friendship of
1950 forms the bedrock of the special relations that
exist between India and Nepal. Nepalese citizens
avail facilities and opportunities on par with Indian
citizens in accordance with the provisions of the
 Treaty. Nearly 8 million Nepalese citizens live and
work in India.
■ The treaty provided for an open border between the two
countries and allows Nepali nationals to work in India
without a work permit, to apply for government jobs, to
open bank accounts and buy property.
■ However, The Secret side letter to the treaty had
barred Nepal from importing arms from any other
country without permission from India. Hence, the
treaty is seen as driven from an Indian perspective
of security considerations. Many in Nepal saw the
treaty as a humiliating dependency on India. On
other hand, Indians feel that Nepal is being less
than grateful for the generosity they are being
shown.
● In the 1960s King Mahendra abolished the constitution
and re-established the monarchy. He didn’t trust India
and hence started engagement with China. The king used
to call Nepal as “India Locked'' rather than land locked.
● In the 1980s King Birendra continued the earlier policies
and kept changing the constitution. In 1987 the king
violated the treaty by importing arms from china.
Instability in governance ultimately led to Jan Andolan in
1990 led by Nepali
Congress(NC). In 1996 India-Nepal agreed for development
of the Pancheshwar project on mahakali river. India had
adopted a policy of Non reciprocity in the 1990s as part of
Gujral doctrine.
● In 2001 palace conspiracy happened where the King was
assassinated along with his family. During the same time
Maoists had emerged into the political scene and started
the second Jan Andolan. India intervened and was able to
get agreement among power centres, resulting in the
process of Constitution making and setting up of Assembly
in 2008. However the assembly failed even after 4
 extensions and finally was dissolved by the Supreme Court
in 2012. New Assembly was elected again in 2013.
● Since 2008 all the efforts to develop consensus on the
issue of the Constitution could not materialise because of
strong difference of opinions among the political parties.
After the 2015 earthquake, international pressure forced
the political parties to draft a new constitution. However,
the new constitution also
failed to address the concerns of minorities like Madheshi
and Janajatis.
○ The Draft constitution had created seven new states
with some borders slicing through the Madhesis’
ancestral homeland in the southern plains. Ruling
hill elites got more representation than the
madhesis from plains. Madhesi demands of creating
2 provinces on ethnic lines were not fulfilled.

■
○ As a result, Madhesi protests against the
constitution led to economic blockade of Nepal,
creating an unprecedented energy crisis in the
country. Economic blockade resulted in public
 anger against India as it was alleged that India was
using Madhesi’s to control Nepal. The whole issue of
economic blockade affected India’s relationship with
Nepal.

■
● Current state of relations
○ Political -
■ There are regular exchanges of high-level visits and
interactions between India and Nepal.India and
Nepal have several bilateral institutional dialogue
mechanisms, including the India Nepal Joint
Commission co-chaired by External Affairs Ministers
of both countries. The Sixth
Joint Commission Meeting was held in January
2021 in New Delhi. Both sides discussed several
areas of cooperation including in the areas of
connectivity, economy and trade, power, oil and gas,
water resources, political and security issues,
border management, development partnership,
tourism, culture, education and capacity building.
The close cooperation between the two sides in
combating Covid-19 pandemic in the region was
noted. India’s vision of Integrated South Asia
requires support from all neighbors
■ However, Anti-India sentiments have been growing in
Nepal in the last couple of decades, but what is new
this time is that China’s emergence as a major power
and its growing presence in South Asia has
emboldened the political elites of Nepal to openly
challenge India. The Nepal government elected in
2017 has talked about
e

“Resetting and redesigning” relations with India by

revising or scrapping the treaty, which has served as
the bedrock of bilateral relations since 1950.
● Economic -
○ India is the largest trading partner of Nepal. Total
bilateral trade in 2018-19 reached US$ 8.27 billion.
Indian firms are among the largest investors in
Nepal, accounting for more than 30% of the total
approved foreign direct investments. There are
about 150 Indian ventures operating in Nepal
engaged in manufacturing, services (banking,
insurance, dry port, education and telecom), power
sector and tourism industries. South Asia’s first
cross-border petroleum products pipeline,
constructed and funded by Indian Oil Corporation
Ltd., connecting to
Nepal was inaugurated by the two Prime Ministers in
September 2019. The pipeline will supply fuel to
landlocked neighbour.
○ In recent years, India has been assisting Nepal in
development of border infrastructure through
upgradation of 10 roads in the Terai area;
development of cross-border rail links at Jogbani-
Biratnagar, Jayanagar-Bardibas; and
establishment of Integrated
Check Posts at Birgunj, Biratnagar, Bhairahawa,
and Nepalgunj. When a devastating earthquake
struck Nepal in April-May 2015, the Government of
India swiftly dispatched National Disaster Response
Force (NDRF) teams and special aircrafts with
rescue and relief materials to Nepal. India
announced a post-earthquake reconstruction
package of US$ 1 billion during the International
e

Conference on Nepal’s Reconstruction held in

Kathmandu in June 2015.
○ However there are certain issues regarding economic
cooperation between two neighbours. For instance,
demonetisation had badly affected Nepali nationals
because those currency notes were legal tender in
Nepal.
○ Hydropower -
■ Cooperation in water resources primarily concerning
the common rivers is one of the most important
areas of bilateral relations. A large number of small
and large rivers flow from Nepal to India and
constitute an important part of the Ganges river
basins. These rivers have the potential to become
major sources of irrigation and power for Nepal and
India. A three tier bilateral mechanism established
in 2008, to discuss issues relating to cooperation in
water resources, flood management, inundation
and hydropower between the two countries, has
been working well.
■ Even though hydropower potential in Nepal is 40,000
MW, current capacity and production is only about
1,000 MW. As a result Nepal still has to import
electricity and apart from suffering long power cuts
16 hrs/day. Kosi barrage in 1954 and Gandak
Barrage in 1959 the Indian financed projects in
Nepal were increasingly being perceived as ‘sell out’
of the national interest by most of the Nepalese.
Nepalese feel that the rich water resources of Nepal
are exploited by India for its own agricultural and
energy needs.
e

■
■ In 2014 India and Nepal signed a Power Trade
Agreement. The Agreement is aimed at facilitating
and
furth r strengthening cross-border electricity
transmission, grid connectivity and power trade
between Nepal and India. The Agreement provides a
framework for power trade between the two
countries, import by Nepal from India until it
becomes power surplus and subsequent import by
Indian entities from Nepal, on mutually acceptable
terms and conditions. Two mechanisms, Joint
Working Group (JWG) and Joint Steering
Committee (JSC) envisaged under the
Agreement have been established thus opening
doors for Nepal developers/traders to access the
Indian power market. India has pledged support to
the Arun III and Upper Karnali dam projects.
e

■
○ Border −
■ Level of mutual trust is reflected by the fact that both
countries share an open border with each other.
Most of the border is settled except a few areas like
Kalapani. The dispute over Kalapani, which lies on
the easternmost corner of Uttarakhand’s
Pithoragarh district, between Nepal and India was
revived in November 2019 when
India published a revised political map showing the newly
 created Union Territories of Jammu and Kashmir
and Ladakh. This shows how the ruling elite class
uses tensions with India as a cover for their own
maladministration.

■
○ Human trafficking is also a big concern. Around 1-
2 lac Nepalese in India are believed to have been
trafficked. ● China in Nepal -
○ Chinese are slowly making inroads in Nepal. Nepal has
signed an agreement on transit with China, which would give
access to Chinese ports. China has been constructing Dams as
well as big infrastructure projects like Pokhara International
Airport in Nepal. Nepali students are preferring Chinese
universities as their preferred destination. Sagarmatha Military
exercise has been conducted among both militaries. Nepal has
already joined BRI indicating strong willingness to come out of
India’s sphere of influence. As a result, Nepal’s ruling elite
frequently play ‘China card’ against India. ● Way Forward -
○ India should support institution building in Nepal under a
popular government and find a formula of developing
Nepal’s water, which will be perceived by Nepalese fair
and just.
○ India needs to encourage economic engagement with Nepal
led by the private sector to prevent Nepal falling under the
trap of
the BRI initiative of China. As rightly suggested by Prof. S
D Muni When Nepal tries to press the China button India
should not press the panic button.
○ There has to be a rebuilding of empathy and trust,
developing mutual academic depth, and strengthening of
shared economic growth between the two neighbours.
India-Bhutan

● Introduction-
○ Diplomatic relations between India and Bhutan were
established in 1968 with the appointment of a resident
representative of India in Thimphu. Before this our
relations with Bhutan were looked after by our Political
Officer in Sikkim. The basic framework of India- Bhutan
bilateral relations was the Treaty of Friendship and
Cooperation signed in 1949 between the two countries,
which was revised in February 2007.The India-Bhutan
Friendship Treaty not only reflects the contemporary
nature of our relationship but also lays the foundation
for their future development in the 21st century.
● Evolution of relations
0 The 1949 Treaty of Peace, friendship and Cooperation
was signed as Bhutan wanted protection from the
 potential threat of Communist China. Treaty called India
as a natural partner and relations of “Perpetual peace
and Friendship’’. As per treaty provisions India had
committed to not to interfere in domestic affairs and
Bhutan had agreed to be guided by India in external
affairs. India was supposed to Protect Bhutan’s
sovereignty. However the treaty was not in a strict sense.
Bhutan has been taking independent stands at various
multilateral forums. This reflects the mutual respect
shown by both sides towards each other.
● To meet the needs of changing times the treaty was revised in
2007. As per new treaty relations are termed as of equal
partnership rather than India being a guiding partner to a
close friend Bhutan. However, Bhutan also has committed to
not allow any Anti-India activity on its territory.
0 In 2013 there was certain unease in the bilateral
relations for a short span. India had abruptly cut
subsidies on gas and kerosene sales right before general
elections. This was seen by Bhutanese as a punishment
for Bhutan's overtures in foreign policy, especially with
respect to China. The loss of the incumbent party in
general elections of 2013 resulted in certain sections
accusing India of meddling in Bhutan's democratic
politics. Barring a few such incidents, the two countries
have maintained cordial relations throughout history.

● Current state of relations − ○ Political -

The traditionally unique bilateral relations, characterized by
trust and understanding have matured over the years. The
special relationship has been sustained by the tradition of
regular visits and high level dialogues between the two
countries. Prime Minister Narendra Modi paid a-
State Visit to Bhutan in 2014. It was his first visit
abroad after assuming the office. The visit reinforced the
tradition of regular high level exchanges between the two
countries. During the visit, he laid the foundation stone of
the 600 MW Kholongchu Hydropower Project and
inaugurated the Supreme Court building which was
constructed with Indian assistance. There are a number of
institutional mechanisms between India and Bhutan in
areas such as security, border management, trade, transit,
economic, hydro-power, development cooperation, and
water resources.

○ Economic −
■ The Government of India has consistently supported
the socio-economic development of Bhutan. Hydro-
power cooperation between the two countries is an
example of win-win Cooperation.
■ India is Bhutan's largest trading partner, accounting
for 98% of its exports and 90% of its imports.
Bhutan is the largest beneficiary of India's foreign
aid.
■ India has been extending economic assistance to
Bhutan’s socio-economic development since the
early 1960s when Bhutan launched its Five Year
Plans. India continues to be the principal
development partner of Bhutan. For the 12th Five
Year Plan, India’s contribution of Rs. 4500 cr. will
constitute 73% of Bhutan’s total external grant
Component.
■ The Landlocked neighbour has transit rights
through India making free entry of goods possible.
Bhutan did not join the BBIN initiative, led by
India, because of the apprehension of pollution.
Bhutan became one of very few countries to not join
Chinese Belt and Road Initiative.
■ Mutually beneficial hydro-power cooperation with
Bhutan forms the core of bilateral economic
 cooperation. For Bhutan, hydro-power development
continues to be a vital catalyst for socio-economic
development. India has supported hydropower
generation in Bhutan. As a result export of hydro
power is Bhutan's most important source of
revenue.
■ India is the most popular educational destination
for Bhutanese students -almost 4000 Bhutanese students
are enrolled in Indian Universities at any time, many of
whom are also provided scholarships by Government of
India. ○ Strategic −
■ There is a Secretary-level mechanism on border
management and security related matters. A
training mission called Indian Military Training
Team (IMTRAT) has been stationed in Bhutan since
1961. Under the said mission 1000 soldiers are
permanently stationed in Bhutan for the purpose of
training Bhutanese security forces. Bhutan is the
only country which stood by India in the face of its
conflict with China in 1962. Bhutan and Mongolia
were the first to back India’s push for
Bangladeshi independence in 1971. During the
recent Doklam crisis at the trijunction with China,
Bhutan stood by India till the end. In 2003 both
countries conducted a counter insurgency operation
called ‘operation all out’ against United Liberation
Front of Asom(ULFA) militants.
2017 Doklam standoff -
● In 2017 Chinese troops with construction
vehicles and road-building equipment began
extending an existing road southward in
Doklam, a Bhutanese territory. In response as
a part of Operation Juniper, Indian troops
acted to stop the Chinese troops from
 constructing the road leading to a standoff
between both militaries for two months. India
countered the Chinese claim that the said
issue between China and Bhutan by saying
that India is bound by treaty of peace and
friendship.
●

■ Bhutan is also one of the few neighbouring countries

who never played the ‘China card’. Strategically
Bhutan remains crucial for India’s security as it not
only acts as a buffer state against expansionist
China but also a key partner in protection of the
strategic siliguri corridor.
● Way Forward -
○ India should adopt a friendly approach towards
Himalayan small neighbour rather than a coercive
approach. Delhi can help in Promoting eco-tourism and
 economic interdependence with Thimpu as a result
further deepening of relations. As rightly suggested by
scholars like Harsh Pant, India should cultivate good
relations with all political parties to prevent Bhutan going
Nepal’s way where one set of political parties incite anti-
India sentiments.

India-Sri Lanka

● Introduction -
○ India is Sri Lanka's closest neighbour. The relationship
between India and Sri Lanka is more than 2,500 years old. Both
countries have a legacy of intellectual, cultural, religious and
linguistic interaction. Buddhism and Tamils found their way to
Sri Lanka from India. In recent years, the relationship has been
marked by close contacts at all levels. Today, the India-Sri Lanka
relationship is strong and poised for a quantum jump by building
on the rich legacy of historical linkages and strong economic and
development partnerships that have been forged. ● Evolution of
the relations-
○ Pre−independence-
■ Tamils in Sri Lanka, had established Hinduism and
Tamil language links with South India. British played a
policy of divide and rule by favoring native Tamils with
government jobs as they had adapted English language
thus creating a faultline within Sri Lankan society. ○ Post
Sri Lankan independence-
■ Sri Lankan nationalism has been consolidated
around Sinhala Buddhist identity to counter the
dominant position of Tamils in education and
employment.
The subsequent policies of Sri Lankan government
started process of discrimination against Tamils. The
Citizenship Act of 1948 was enacted for that purpose
only. The act made citizenship status for Indian Tamils
(migrated during
British era) uncertain resulting in loss of their
citizenship. This created a refugee crisis in India
leading to 3 agreements between Indian Prime
Minister and Sri
Lankan counterpart in 1954, in 1964 and again in
1974.
The issue of citizenship was finally resolved only by
2007.
Similarly, The Official Language Act of 1956
declared Sinhalese as the only official language with
the only purpose to marginalise Tamils. India had
proposed a 3 language formula, leading to Sri
Lankan politicians accusing India of not respecting
Sri Lankan sovereignty. Policy of standardisation
also discriminated against Tamils. The policy
relaxed criteria for university admission for
Sinhalese as against Tamils.
 n n

●
○ In the 1980s Tamil discontent led to growing demand for
an independent Tamil Eelam, which dragged India into
Sri Lanka frequently. In 1976 the island nation saw the
emergence of militant organization Liberation Tigers of
Tamil Eelam (LTTE) under tamil leader Prabhakaran.
LTTE was involved in armed clashes against the Sri
Lankan government and armed forces.
○ In 1987, faced with growi g anger amongst its ow Tamils,
and a flood of refugees, India intervened directly in the
conflict for the first time. After the Sri Lankan
government attempted to regain control of the northern
Jaffna region by means of an economic blockade and
military assaults, India supplied food and medicine by
air and sea. After subsequent negotiations, India and Sri
Lanka entered into an agreement/13th amendment. The
1987 Indo-Sri Lankan Accord enabled the
13th Amendment to Constitution and Provincial Councils
Act of 1987. Sri Lanka agreed to a devolution of power to
the provinces, the Sri Lankan troops were to be
withdrawn to their barracks in the north and the Tamil
rebels were to surrender their arms with Indian Peace
 n n

Keeping Forces to enforce cease fire. As LTTE didn't

surrender the IPKF had to fight LTTE leading to the
death of almost 1100 soldiers. In India’s modern history,
no relationship has been as exacting as the one with the
LTTE. India had to pay a very heavy price for its
involvement in the whole issue. It costed India more than
a thousand soldiers, an ex−Prime Minister and a
perpetual sense of suspicion with the geostrategic
neighbour. As a result after 1991 Rajiv Gandhi's
assassination, India moved towards 'hands off' policy.
○ India neither gained full trust of Tamilians nor of
Sinhalese. China on the other hand comes with no
baggage and only strategic perspective
○ Even today Tamil community has multiple unresolved
grievances. The Sri Lankan armed forces haven't given
back lands. There is no real decentralisation and
devolution of power to Tamils. Commitments like office
for missing persons, replacing the Prevention of
Terrorism Act, providing for compensation for property
seized or destroyed in the war, setting up a truth-and-
reconciliation commission, trial for war criminals have
not seen the light of the day.
● In 2015 the new Srilanka government took certa steps
to resolve grievances of Tamils under international
pressure. It culminated in the 19th Amendment Act 2015
to the Constitution of Sri Lanka. The amendment
introduced a number of progressive provisions such as -
○ Term of President and Parliament was reduced from
earlier six years to five years.
○ To prevent the possible authoritarianism the
amendment set a two-term limit for the President.
○ Power of the President to dissolve Parliament was
also curbed by adding further checks. The President
 n n

could dissolve the Parliament only after four and a

half years and additionally require a resolution with
2/3rd majority of the legislature.
○ Amendment also re-established the Constitutional
Council as well as independent commissions on
matters of public service, police, elections, judiciary,
bribery and corruption, audit etc.

● However, the recent 2020 election saw a thumping

victory for the Rajpasha family which has reportedly
announced the need to bring a new constitution. If the
progressive changes made by the 19th amendment are
reversed, it will affect the interests of Tamil minorities,
who have already waited for justice for decades.

● Current state of
relations
Economic −
■ India is one of the largest investors in Sri Lanka. Sri
Lanka is among the major recipients of development
assistance from the Government of India. India’s
overall commitment stands close to US$ 3 billion,
out of which around US$ 560 million are purely in
grants. India and Sri
Lanka have had a bilateral Free Trade Agreement
since 1998. India has pledged $2.6 billion in
development assistance to Sri Lanka. Indian
Housing Project in North Sri Lanka where India has
committed to construct around
 60,000 houses. Besides housing, India continues to
assist in a large number of High Impact Community
Development Projects in areas of education, health,
transport connectivity, small and medium
enterprise development and training across the
country under grant assistance. Being the members
of regional groupings like SAARC, BIMSTEC, both
sides can cooperate towards the mutual goal of
economic integration within the region.
○ Political -
■ Political relations between the two countries have
been marked by high-level exchanges of visits at
regular intervals. In 2019 the newly elected President
Gotabaya Rajapaksa visited New Delhi. This was his
first overseas trip since he took over as the island
nation's president. During the visit Rajapaksa also
invited the Indian Prime
Minister to be the first State guest he
welcomed to Colombo. This high level
interaction will help in developing convergence.
■ Fishermen issue −
● Under treaty agreement of 1974, Indian
fishermen have lost the rights to fishing
around Katchatheevu as it is within the
territorial waters of Sri Lanka and
1976 agreement has established International
Maritime Boundary Line (IMBL)
● Incidents of straying of fishermen are common
in the Palk Straits and the Gulf of Mannar.
Trespassing happens because fishermen
consider that they possess traditional rights of
fishing around Katchatheevu. Both countries
have agreed on certain practical arrangements
to deal with the issue of bona fide fishermen
 crossing maritime borders. India has also
assured Sri Lanka of phasing out bottom
trawling which Sri Lanka has banned. There
are currently 151 Indian vessels in Sri Lankan
custody, seized since 2014.
● Repeated incidents of killings Indian f shermen
by Sri-Lankan navy have resulted in
resentment among the fishermen community.
Recent incident where 4 fishermen were killed
in January, 2021. Sri Lankan authorities'
decision to auction more than 100 Indian
trawlers in its custody further affects poor
fishermen financially.
■ To resolve the issue both the governments have taken
various steps like -
■ Established a Joint working Group (JWG) on
fisheries
○ Hotline between coast guards of both
countries has been established.
○ Both sides have commited to prevent
violence and loss of lives of fishermen
○ Decision to release fishermen and their
boats on humanitarian grounds has also
been agreed.
○ Strategic −
■ In recent years Sri Lanka has moved closer to China.
Chinese investments in Sri Lanka are growing by the day.
Chinese debt trap diplomacy is working very well
on the Island nation as the Sri Lankan government
is struggling to pay back its existing $8 billion debt
to China. To counter this growing Chinese
influence, India is also working with like minded
countries like Japan. India and Japan are jointly
 investing in the West Container Terminal of
Colombo port.
●

● Way Forward
○ Economic and Technology Co-operation Agreement
(ETCA) is a proposed arrangement that seeks to add to
the existing FTA, primarily in relation to trade-in
services and the service sector; India needs to send a
clear message that a robust bilateral relationship will be
a win-win for both countries.
○ New Delhi must be seen as a friend of all the
communities, Colombo will also find that incremental
progress on the Tamil question will rapidly widen its
space in regional and global affairs
India-Maldives

● Introduction -
○ India and Maldives share ethnic, linguistic, cultural,
religious and commercial links steeped in antiquity.
Except for a brief period between February 2012 to
November 2018, relations have been close, cordial and
multi‐dimensional. India was among the first to recognize
Maldives after its independence in 1965 and to establish
diplomatic relations with the country.
● Evolution of the relations -
○ India was the first country to help Maldives in the event of
the 1988 coup to overthrow President Gayoom. India
intervened by launching the Operation Cactus and
helping Male to foil the coup.
○ In 2011 there was strain in the relations as China had
opened its embassy in Maldives. Further in 2012 GMR-
 Male airport contract was cancelled by the then
government of Maldives. Relations further deteriorated in
2014 as President Yameen
took anti-India steps. India w s asked to take back two
Dhruva helicopters gifted to Maldives in 2013 also to get
rid of the Indian naval personnel who maintained the
helicopters. Indian workers found it difficult to get access
to employment due to adverse policies targeting Indians.
In 2018 Yameen government imposed emergency and
clamped down on opposition as well as Supreme court
judges. He violated the self imposed ‘India First’ policy of
the Government of Maldives and signed the Free
Trade Agreement with China in 2017. It was Maldives'
first ever FTA with any country. Opposition's accusation
about China of being involved in a “land grab” was not
given the due consideration by President Yameen while
exposing the Maldives to a debt trap through its loans for
mega projects from China.
● With the election of President Solih in 2018, ‘India First’ has
been a stated policy of the Government of Maldives and has
acted on this policy in true spirit. Maldives occupies a very
special place in India’s ‘Neighborhood First Policy’ as well as
the ‘SAGAR (Security and Growth for All in the Region) vision.

● Current state of relations − ● Political -

○ Bilateral relations have been nurtured and
strengthened by regular contacts at the highest
levels. Prime Minister Modi attended the
inauguration ceremony of President
Ibrahim Mohamed Solih in 2018 as the only Head of
Government. Prime Minister again, on his first
overseas visit after taking oath of the office for his
second term, visited Maldives in 2019. On
international issues Maldives had consistently
supported India in multilateral fora, such as the
 UN, the Commonwealth, the NAM and the SAARC.
India also has extended support to Maldives
candidature for a non-permanent seat in the UN
Security Council for the term 2019-20. Recently
Maldivian Foreign minister Abdulla Shahid was
elected as President of the 76th session of the UN
General Assembly with India’s valuable support.
● Economic -
○ India has been offering assistance to Maldives in its
developmental process. India has contributed in
improving health and education related
infrastructure in
Maldives. examples- Indira Gandhi Memorial
Hospital (IGMH), Maldives Institute of Technical
Education (MITE).
○ Economic package of US$ 1.4 billion was extended by
India during the State Visit of President Solih to
New Delhi in December 2018. A Bilateral US Dollar
Currency Swap Agreement between RBI and
Maldives Monetary
Authority (MMA) was signed in July 2019. In view of
the Covid situation, this Agreement has been
further extended for a period of one year in July
2020. Exim Bank Line of Credit of US$ 800 million
agreement was signed in March 2019.
○ Maldives has been one of the biggest beneficiaries
of India’s COVID relief among its neighbours. This
included a visit of a 14 member Rapid Response Medical
team, and donation of essential medicines. Under
Operation Sanjeevani a special IAF plane airlifted 6.2
tonnes of essential medical supplies from India to Maldives
in April 2020. ● Strategic -
○ Maldives’ proximity to the west coast of India and its
situation at the hub of commercial sea‐lanes
running through Indian Ocean imbues it with
significant strategic importance to India. As a
result, Maldives occupies a very special place in the
‘Neighborhood First Policy’ and the ‘SAGAR
(Security and Growth for All in the Region) vision of
the Government of India. During the term of
President Yameen there was a visible downturn in
defence cooperation between the two countries.
With the arrival of President Solih there h s been a
revival of defence cooperation.
○ Key projects in the defence sector include Composite
Training Centre for Maldivian Defence forces,
Coastal
Radar Surveillance System and construction of new
Ministry of Defence Headquarters. During the visit
of MEA S Jaishankar both countries have signed a
USD 50 million defence Line of Credit agreement to
boost the maritime capabilities of the strategic
island nation.
○ China in Maldives -
■ India’s ties with Maldives have been impacted
by China’s growing footprint on the island.
Since 2011 China has engaged with Maldives
extensively. Chinese embassy was opened in
Male in 2011 and later in 2017 we saw an FTA
between China and Maldives. Male had
pledged full backing for China’s Maritime Silk
Road (MSR), which is part of the BRI. Growing
Chinese presence in the archipelago could
have serious security implications. Therefore
India needed to revive the strategic relations
with Maldives. In this context only in February
 2021 India and Maldives have signed an
agreement to develop and maintain a
coastguard harbour and dockyard at Uthuru
Thilafalhu – a strategically located atoll near
the Maldivian capital of Male.

● Way Forward -
● As Centre of gravity of international politics is shifting to Indo-
pacific region, India needs to work closely with strategically
located Indian Ocean island countries like Maldives to protect
the goal of a free and open Indian Ocean region. Maldives
should also recognize the legitimacy of India’s concerns &
operate in a way mutually beneficial to each other.
India-China.
 ● Introduction-
○ On 1 April, 1950, India became the first non-socialist bloc
country to establish diplomatic relations with the
People’s Republic of China. Prime Minister Nehru visited
China in October 1954. Though the border conflict in
1962 was a setback to ties, Prime Minister Rajiv Gandhi’s
landmark visit in 1988 marked the beginning of
improvement in bilateral relations. In 1993, the signing
of an Agreement on the Maintenance of Peace and
Tranquility along the Line of Actual
Control on the India-China Border Areas during Prime
Minister Narasimha Rao’s visit reflected the growing
stability in bilateral ties.
○ Since early times, there have been contrary views about what
should be India’s policy towards China. Prime Minister Nehru was
of the opinion that India−China relationship will take inspiration
from the past and rich civilisations will coexist peacefully. Whereas
leaders like Sardar Patel saw China as an expansionist state. He
had cautioned Nehru about Chinese threat.
○ The modern relationship began in 1950 when India was
among the first countries to end formal ties with the
Republic of China (Taiwan) and recognize the People's
Republic of China(PRC) as the legitimate government of
Mainland China. In 1954, China and India signed an
agreement regarding Tibet, whereby India recognised
Tibet as part of China. Political experts noted the
agreement heavily favoring China.
○ The Panchsheel treaty was signed in 1954 by Nehru and
Zhou Enlai. The treaty outlined the five principles of
engagement for two countries.
● Peaceful co-existence
● Non-aggression
● Non-interference in each other's internal affairs
● Mutual respect for each other's territorial integrity
and sovereignty
● Equality and mutual benefits
○ In 1959, India gave asylum to the Dalai Lama, China
accused India of working with the CIA and providing
training to Tibetan insurgents.
○ In 1962 China constructed a road in Aksai Chin region of
India. Hence, under pressure Nehru launched 'forward
policy' which involved building military posts in forward
areas in Ladakh. China attacked Indian positions, much
to the surprise of ill−prepared India resulting in a
humiliating defeat for India.
○ Unexpected War and subsequent defeat for India created
a Security dilemma with expansionist neighbour.Hence
relations between the PRC and India deteriorated during
the rest of the 1960s and the early 1970s. During this
period China–Pakistan relations improved and Sino-
Soviet relations worsened. The PRC backed Pakistan in
its 1965 war with India. Between 1967 and 1971, an all-
weather road was built across India's Aksai
 Chin territory, linking Xinjiang province with Pakistan.
Ultimately in 1971, India faced tremendous pressure
from both the USA and China over the issue of east
Pakistan. As a result India had to seek alliance with the
USSR to balance the
USA-Pakistan-China axis. In 1971, India signed its
Treaty of Peace, Friendship, and Co-operation with the
USSR. The PRC sided with Pakistan in its 1971 war with
India. By this time, the PRC had replaced the Republic of
China in the UN where its representatives denounced
India as being a "tool of Soviet expansionism." 1964 saw
the first Chinese nuclear test, which would turn out to be
the motivation behind India's subsequent attempt and
success in 1974.
○ India and China renewed efforts to improve relations post
Mao’s death in late 1970s. In 1978, the Indian Minister
of External Affairs Atal Bihari Vajpayee made a landmark
visit to Beijing, and both countries officially re-
established diplomatic relations in 1979. China also
modified its pro-Pakistan stand on Kashmir and
appeared willing to remain silent on Sikkim becoming an
integral part of India. Chinese leaders agreed to discuss
the boundary issue, India's priority, as the first step to a
broadening of relations.
○ However, India and China held eight rounds of border
negotiations between 1981 and 1987 without achieving
any progress on the issue of border dispute. Despite the
efforts, border skirmishes continued after India renamed
NEFA and turned it into a state. The Sumdorong Chu
incursion in 1987 had heightened tension between two
sides.
○ A warming trend in relations was facilitated by Rajiv
Gandhi's visit to China in 1988. The two sides issued a
joint communiqué that stressed the need to restore
friendly relations on the basis of the principles of
Panchsheel agreement. The two sides also agreed to hold
annual diplomatic consultations between foreign
ministers, set up a joint committee on economic and
scientific cooperation, and a joint working group on the
boundary issue.
 ■
○ In 1993 Prime Minister Narasimha Rao and Premier
Li Peng signed a border agreement dealing with
cross-border trade, cooperation on environmental
issues. Under the agreement it was decided to avoid
any change in status quo along the border, to
reduce military presence at the border, to avoid use
of force or threat. LAC largely remained peaceful
because of this agreement.
○ Sino-Indian relations hit a low point in 1998
following India's nuclear tests. Indian Defence
Minister George Fernandes declared that "“in my
perception of national security, China is enemy No
1.…and any person who is concerned about India’s
security must agree with that fact",hinting that
India developed nuclear weapons in defence against
China's nuclear arsenal. In 1998, China was one of
the strongest international critics of India's nuclear
tests and entry into the nuclear club. During the
1999 Kargil War China voiced support for Pakistan.
 ■
○ After some strident criticism, China didn't waste
time in resuming relations because in the unipolar
world USA, for China, seemed like the elephant in
the room. Trade relations have progressed
significantly and both seem to cooperate on global
concerns like concerns of developing countries in
WTO, globalization.
○ In 2003, China officially recognised Indian
sovereignty over Sikkim as the two countries moved
towards resolving their border disputes. In the
following year, the two countries proposed opening
up the Nathula and Jelep la Passes in Sikkim. The
year 2004 was a milestone in Sino-Indian bilateral
trade, surpassing the US$10 billion mark for the
first time. In 2005, China and India signed the
'Strategic and Cooperative Partnership for Peace
and Prosperity' paving the way for further
cooperation. During this time a roadmap for
resolution of border disputes was also announced
in stages. The 3 stages were as follows.
■ Stage 1 − Framing of Guiding Principles and
Political Parameters (Special Representatives
appointed for fair, reasonable negotiations).
 ■ Stage 2 − Groundwork and exchange of maps.
■ Stage 3 − delineation and demarcation on maps

●
■ First two stages are largely completed till now.
However, heightened tensions at the border in
recent years have affected the progress.
○ In January 2008, Prime Minister Manmohan Singh
visited China to discuss trade, commerce, defence,
military, and various other issues. Chinese Premier
Wen Jiabao paid an official visit to India in
December 2010 at the invitation of Prime Minister
Manmohan Singh.
○ In 2013 under the Border Defence Cooperation
Agreement it was decided to have regular
communication, avoid tailing each other's patrols,
and to seek clarifications if misunderstood. Xi
Jinping in the 2014 BRICS summit called the
border the "most complex legacy". PM Modi replied
by saying that we owe it to the future generations.
 ■
○ However, disruptions have risen again due to the
China–Pakistan Economic Corridor, as it passes
through Pakistan occupied Kashmir. In June 2017
Chinese troops with construction vehicles and road-
building equipment began extending an existing
road southward in Doklam, a territory of Bhutan. It
led to a two month long tense standoff.
○ In 2019, India reiterated that it would not join
China's Belt and Road Initiative, stating that it
cannot accept a project that ignores concerns about
its territorial integrity.
○ In October 2019, President Xi Jinping met with
Prime Minister Narendra Modi at Mahabalipuram,
Tamil Nadu, India for a second informal meeting
between India and China. Modi and Xi Jinping met
18 times between 2014 and 2019.

● Major areas of concern ○ Border Dispute -

 ● Brief history − in 1914 British invited Chinese
as well as Tibet representatives for the Shimla
conference to conclude agreement on the
border. MacMohan Line was recognised as a
boundary in eastern sector, China didn't
accept it but Tibet did.
● Chinese side has been shoring up their
military posture along the entire LAC, and so
the net result could well be a setback to the
maintenance of peace. Chinese expansionist
policies continue in all 3 sectors.
○

○ Eastern sector − China alleges India occupies

90,000 sq miles of Chinese territory
● Western Sector − China occupies Indian
territory of 38,000 sq km in Aksai Chin.
Pakistan has gifted
Indian territory of 2,170 sq miles (Shaksgam Valley)
● Middle sector − Even though China had
recognised Sikkim as an integral part of India,
 In 2017 Chinese incursions led to Doklam
standoff at tri junction point of India-Bhutan-
China.
○ India has opposed China Pakistan Economic
Corridor (CPEC) as it passes
through Pakistan occupied
Kashmir. For India, this corridor
violates the principle of sovereignty
and territorial integrity.
○ Doklam crisis that went on for more
than two months in 2017. Recent
clashes in Galwan valley(2020-21) is
another example of Chinese side
violating earlier agreements between
two sides and unilaterally
attempting to change the status
quo.
■

● Other Areas of concern -

 ○ China’s fervent opposition to India’s potential
membership in the Nuclear Suppliers Group
(NSG) continues without any substance in it.
India didn’t like Chinese shielding of Pakistan
and blocking Indian efforts within UNSC to
designate the Pakistan-based terrorist,
Masood Azhar (JeM), as a global terrorist.
○ Water disputes over Brahmaputra water
sharing and
Chinese efforts in diverting water from South
to North China. Dam construction in Himalayan seismic
zone is a concern for lower riparian countries like India.
Such dams can be used to flood India during war time. ●
Current state of relations ○ Political -
■ The cumulative outcomes of the exchange of
high-level visits have added value and
substance to ties between two civilizational
states. The year 2018 witnessed an upward
swing in the momentum of ties.

In April 2018,
Prime Minister Modi and President Xi held the
first Informal Summit in Wuhan to exchange views
on overarching issues of bilateral and global
importance and elaborated upon their respective
visions and priorities for national development.
Both the leaders held their Second Informal Summit
in Chennai in October 2019 where they had an in-
depth exchange of views in a friendly atmosphere on
overarching, long-term and strategic issues of global
and regional importance. India and China have
established more than thirty dialogue mechanisms
at various levels, covering bilateral political,
 economic, consular matters as well as dialogues on
regional and global issues.

●
■ However there are divergences in both countries
with respect to identity and perceptions about the historic
destiny of their own nations to achieve great-power status.
India sees itself to be a part of the multipolar world(As
Shyam Saran explained it- Bharatvarsha as one of the
petals of 4 petalled lotus). China sees itself as the center of
the world (middle kingdom complex). ○ Economic -
■ The trade and economic relationship between India
and China has seen rapid growth in the last few
years. Trade volume between the two countries in
the beginning of the centu y, in 2000, stood at US$
3 bill on. In 2008, bilateral trade reached US$ 51.8
billion with China replacing the United States as
India’s largest trading partner in goods.
In 2018, bilateral trade reached an all-time high of
US$ 95.54 billion. While India-China trade has
grown exponentially, it has also led to the biggest
single trade deficit we are running with any
country. In 2018, the widening trade deficit reached
US $57.86 billion. The issue of trade imbalance and
greater market access for Indian pharmaceuticals,
IT services, engineering, and agricultural products
 has been taken up by India repeatedly. The Five
Year Development Program for Economic and Trade
Cooperation between India and China was adopted
during the visit of President Xi to India in 2014 to
address this serious issue and facilitate market
access for more Indian products in China. In 2018,
market access was achieved for export of Indian
Non-Basmati rice, rapeseed meal, fishmeal and fish-
oil. In 2019, protocols for market access for Indian
tobacco leaves and chilli meal were concluded.
■ Being the most populous nations with polluted
rivers and air, both can cooperate in areas of
environment and renewable energy and lead on
international policies and domestic actions. Both
nations have most benefited from breaking down
barriers and free trade in the WTO era. With many
West countries taking on the mantle of
protectionism, this is an area of strong convergence
where two asian giants can act in tandem to reverse
the deglobalization movement. In this context the
ongoing cooperation in multilateral institutions like
BRICS, SCO reflects the areas of convergence.
■ At the same time being the major fast growing
economies there is ongoing competition in emerging
fields. Both, being the net importers of crude oil,
are striving to tap energy resources across the
world, including Africa, to
ensu e energy security. Though Ind a has mainly
relied on services and China on manufactured
goods, both compete in textiles, garments and
leather goods.
● Strategic -
○ Indo-Pacific region is witnessing rivalry between the
existing superpower(USA) and emerging
 superpower(China). While China believes that the
USA is using countries like Japan, India to contain
Chinese rise. China's rise is challenging US
hegemony. USA, in this context only, had launched
Asia Pivot (Re-balance) under the Obama
administration to contain Chinese expansionist
policies. The Trump administration pushed for
revival of Quadrilateral Security Dialogue(Quad)
with like minded countries like Japan, Australia &
India. The USA sees India as a balancer to contain
China. China has recently criticized Quad as an
example of ‘Asian NATO’.
○ India believes that Chinese increasing strategic
presence in South Asia is aimed at containing India
in the region itself and in a way preventing India’s
rise beyond the region. In recent times China has
made inroads in the neighbourhood of India like
Pakistan, Nepal, Sri Lanka, Maldives, Myanmar.
Chinese debt trap diplomacy is working very well in
these countries. Sri Lanka had to give Hambantota
port on lease to Chinese. Now, the Island nation
finds it difficult to return the Chinese debt. China
has been working on similar lines in countries like
Pakistan, Maldives. Chinese policy of encirclement
of India in South Asia was explained in 2004 by US
defence contractor Booz Allen Hamilton as the
policy of Strings of Pearls.
○

○ India is also countering Chinese aggression

with its own bases/installations and Naval
Diplomacy. Naval exercises like Malabar,
Milan are conducted regularly. New Delhi
is actively working through multilateral
initiatives like Indian
Ocean Naval Symposium (IONS), Indian
Ocean Rim Association (IORA), SAGAR
(security and growth for all in the region) to
ensure peaceful and rule based order in
Indian ocean region. As explained by
India’s former Foreign Secretary Lalit
Mansingh India is doing everything it is
supposed to do in terms of protecting its
interests. In the words of Mansingh, to
the doctrine of the String of Pearls, India
has its own doctrine, the Necklace of
Diamonds. Just as the Chinese are
building port facilities, we are tying up
 naval cooperation with almost all the
major powers of the Indian Ocean
region. India is improving relations with
countries like Iran, Central Asian
Countries, Mongolia, Japan, Vietnam.
For instance India’s presence in
Chabahar port to counter the Pakistan-
China axis at Gwadar Port.

○
○ India has also come up with its own
Indo-Pacific strategy as explained by
honourable Prime Minister Narendra
Modi in his Shangri La Dialogue speech
in 2018. Indian navy’s Maritime strategy
shows that India is increasing its
footprint in the region. India is also
actively working through platforms like
Quad. India’s stand on Quad has been
clarified in no uncertain terms by India’s
foreign Minister S. Jaishankar during
the recent visit to the USA. Jaishankar
held that Quad grouping fills a “very
 important gap” that has emerged in
contemporary times and New
Delhi has clarity on its membership in it.

India is ready to deal with the imbalance

created by Chinese rise as well as its
expansionist policies in Indo-Pacific
region.

● Way Forward
○ As agreed by both the countries there should
be continuous high level communications.
Differences should be handled with maturity
to prevent them from becoming disputes. As
agreed in the past both can collaborate on
multilateral forums.
○ Both countries can work in accordance with
the “five-point proposal” that was agreed
during the BRICS summit in 2013. First, to
maintain strategic communication and keep
bilateral relations on the right track. Second,
harness each other’s comparative strength
and expand win-win cooperation in
infrastructure, mutual investment and other
areas. Third, strengthen cultural ties and
constantly increase mutual understanding
and friendship between our peoples. Fourth,
expand coordination and collaboration in
multilateral affairs to jointly safeguard the
legitimate rights and interests of developing
countries and tackle global challenges. Fifth,
accommodate each other’s core concerns and
properly handle problems and differences
existing between the two countries.
○ As suggested by EAM S. Jaishankar, Both
countries should not allow differences to
become disputes. India should learn from
Chinese wisdom to understand Chinese
tactics. Chinese incremental advances short
of the threshold over a time are resulting in
shifting of balance of power in its favour. This
is evident from Chinese policies at the border
with India as well as in other areas including
South China Sea. India should align with like
minded countries like the US, Japan,
Australia.(Shyam Saran)
○ As suggested by Dhruva Jaishankar India
should modernise its navy, work with
regionals like Indonesia, Singapore, Thailand
for regional stability. Also India must step up
cooperation with Quad.