International Relations

Shanghai Cooperation Organisation and India

by

Shanghai Cooperation Organisation and India

This article deals with ‘Shanghai Cooperation Organisation and India- UPSC.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here

Information at Glance

Members

  1. China
  2. Kazakhstan
  3. Kyrgyzstan
  4. Russia
  5. Tajikistan
  6. Uzbekistan
  7. India (joined in 2017)
  8. Pakistan (joined 2017)

Headquarters

  • Beijing

Type of Organization

  • It evolved from a border dispute solving mechanism to a regional security organisation in 2004 to a deliberation forum on all subjects. 
  • It works on the norms of consensus, voluntarism and non-interference. 

Shanghai Cooperation Organisation and India

Timeline

1996 Shanghai 5 was formed for security and border peace between Kazakhstan, Kyrgyzstan, Tajikistan, Russia and China.
2001 SCO was formed in Shanghai with 6 members (5 + Uzbekistan). India was also offered membership which it declined.
2017 India and Pakistan became members of SCO.
2019 Shanghai Cooperation Organisation (SCO) summit was held in Bishkek (Kyrgyzstan).
2020 SCO Summit held in virtual format amid COVID-19 pandemic and increased tension between India and China over Galwan standoff. 
2021 SCO Summit was held in Tajikistan

Significance of SCO

It is an important organisation with

  • 3 significant world powers, Russia, China and India, under its umbrella. 
  • 50% of the world’s population.
  • 25%  of the world’s GDP. 

Uniting factors in SCO

  • Countering U.S. hegemony (the U.S. is trying to influence regimes through Colour revolutions).  
  • Economy: To enhance economic cooperation. 
  • Security: Issue of Islamic Fundamentalism, Terrorism, Secessionism/Separatism, Countering Drug Trafficking.

Conflict of Interest in SCO

  • Rising China in Central Asia is a concern for Russia.
  • Russia has created CSTO (a mutual defence alliance) & EEU (the Economic Union of the Eurasian region).
  • China is more focused on the stability of Xinjiang rather than these Central Asian nations or containing NATO.

Importance of SCO for India

Energy security

  • Some of the member countries of the grouping are rich in energy resources – both hydrocarbons and uranium. India, being energy deficient, need these resources. Russia has also mooted the idea of ‘Energy Club‘. 

Security

  • The Eurasian block can play a key role in stabilizing Afghanistan. India has invested heavily in Afghanistan (2 billion $), and India needs to protect its assets there. 
  • SCO can help in forming a joint platform against terrorism & controlling the menace of drug trafficking in the following way 
    • Members share a high volume of information on counter-terrorism through the SCO Regional Anti-Terrorist Structure (SCO RATS) SCO Regional Anti-Terrorist Structure (SCO RATS) based in Tashkent.  
    • SCO conducts annual Military exercises involving ground troops, aerospace & cyber threat.  

Economic integration/ Gateway to Eurasia

  • An important factor is promoting India’s economic integration with the Central Asian republics, which is in line with India’s Connect Central Asia Policy. India is also investing heavily in INSTC and Chabahar Port development.
  • Central Asian Republics provide a huge possibility for Indian Automobile, Banking, I.T. & related sectors. 

Alternative platform for dialogue with Pakistan and China

  • SCO provides an alternate platform for Indo-Pak & Sino-India dialogue to resolve their disputes. 

Other

  • With Russia and China taking the lead, the SCO could even prove a guarantor for projects like the TAPI (Turkmenistan-Afghanistan-Pakistan-India) and IPI (Iran-Pakistan-India) pipelines that India has held off due to security concerns. 

Issues

  • SCO is already dominated by two UNSC Permanent Members, i.e. China and Russia. Hence, it will not be easy for India to have a significant say in such an institution.
  • SCO will be the second regional grouping after SAARC to have India and Pakistan as members. It in itself can limit the effectiveness of SCO, as has been the case with SAARC.  
  • On the issue of terrorism, China and India have different attitudes vis a vis Pakistan based Terrorist Organizations. Also, the definition of terrorism is different for different states – Eg: the Chinese consider Tibetan Freedom Movement as terrorists while India doesn’t. 
  • In terms of connectivity, India has not joined China’s ambitious One Belt, One Road project and has concerns over China-Pakistan Economic Corridor (CPEC).  
  • SCO is seen as Anti-NATO by the USA and European countries, which doesn’t augur well for Indian ties with the USA and other western allies. 
  • SCO will help in strengthening China-Russia-Pakistan Axis, which is bad for Indian interests. 

Indian Ocean Region

by

Indian Ocean Region

This article deals with the ‘Indian Ocean Region.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

What is Indian Ocean Region (IOR)?

Indian Ocean Region
  • The region containing and surrounding the Indian Ocean is known as Indian Ocean Region. 
  • Indian Ocean Region has 51 coastal and landlocked states. Hence, it is a vast region.

Reasons behind the increased importance of the Indian Ocean

  • The Indian Ocean has become the lifeline of world trade (& has been so since time immemorial). The Indian Ocean is important for commerce as 
    • 2/3rd of world oil shipments pass through the Indian Ocean.
    • 1/3rd of bulk cargo passes through the Indian Ocean. 
    • It hosts nearly 40% of the world’s population. 
Importance of the Indian Ocean
  • The Indian Ocean has the world’s most important choke points,  notably the Straits of Hormuz, Malacca and Bab el Mandeb. As these choke points are important for global trade, a number of extra-regional states maintain a naval presence in the Indian Ocean. Eg 
    • US: 5th Fleet in Bahrain & uses the island of Diego Garcia as an air-naval base.  
    • France: Naval bases in Djibouti, Reunion Island and Abu Dhabi
  • Growing Economies: The economies of many Indian Ocean countries, such as India, Malaysia, and Tanzania, are growing rapidly and are attracting huge investments.
  • Indian Ocean Region (IOR) is rich in natural resources containing 
    • World’s 40% oil exploration
    • Nearly 15% of total fishing in the world
    • Mineral and natural resources like iron, copper, Zinc, manganese, gold and silver 
  • China’s aggressive soft power diplomacy and Maritime Silk Road (MSR) Policy have been the most crucial element in shaping the Indian Ocean strategic environment. The US and other nations like Japan, India and Australia are also trying to counter Chinese initiatives. 
  • Security issues:  Indian Ocean Region (IOR) faces many security issues, such as piracy, illegal migration, drug trade etc. 

Changed attitude of India towards  Indian Ocean

  • Indian Ocean Region is the centre stage of 21st-century politics  & India stands geographically right in the middle. South Africa, Iran, Indonesia & Australia are also part of the Indian Ocean RIM family, but none has centrality & attraction like that of India. 
  • India is positioning itself as the “net security provider” in the broader Indian Ocean region.
  • Due to its strategic location and capabilities, India can play a pivotal role in this region. Till now, India has played a positive role and, in the time of need, has readily helped smaller countries of the region such as Maldives (Operation NEER), Srilanka, Bangladesh etc.

Importance of IOR for India

1. Geostrategic Importance

  • India is situated right in the middle of the Indian Ocean. 
  • It is important to secure Indian Ocean Region to protect Indian ships from piracy and stop human trafficking and drug smuggling.
  • 90% of Indian trade passes through the Indian Ocean. Hence, it is vital to protect our Sea Lines of Commerce (SLOC).
  • Energy Security: Most of our oil supplies come from Indian Ocean Rim countries.

2. Protection of assets and islands

  • Its security is important to protect Indian assets and islands situated in the Indian Ocean 
    1. Islands: Andaman & Nicobar and Lakshadweep
    2. Assets: Like Bombay High 

3. Economic Importance

It is the source of resources like

  1. Fishing and aquaculture
  2. Deep sea mineral exploration 
  3. Petroleum reserves like Bombay High 

4. Cultural Importance

  • India has cultural relations with IOR countries dating back centuries.
  • India has been the centre stage of Indian Ocean trade, corroborated by texts like Periplus Maris Erythraei, Jataka Stories, Sangam Poetry etc.

5. Diaspora

  • A large Indian diaspora lives in Indian Ocean Rim Countries and Small Island Nations like Mauritius, Maldives, South Africa etc.

6. Countering China’s influence

  • China’s aggressive soft power diplomacy has been seen as arguably the most critical element in shaping the IOR environment, transforming the entire region’s dynamics. 

7. Other

  • Monsoon Mechanism: The Indian Ocean plays a vital role in keeping the Monsoon mechanism in favour of India.

Chinese threat & String of Pearls

China’s Malacca Dilemma

  • Nearly 360 ships per day pass through the Strait of Malacca.
  • If there is any blockade by a human or natural disaster, it will cause problems for China because 80% of its oil & gas imports & almost 60% of exports pass through this region.
  • Singapore is located on the Malacca Strait and hosts a huge US naval base. 
  • Andaman & Nicobar Islands are situated near Malacca and can be used to choke the Straits. 
  • To counter Malacca’s Dilemma, China has opted to go for an ambitious String of Pearls strategy.

String of Pearls

  • It is the theory that China is trying to increase its naval presence in the Indian Ocean and counter India by surrounding it.
  • It is developing a string of ports around India for this purpose.
Kyaukpyu  Myanmar
Chittagong Bangladesh
Hambantota Srilanka
Marao Atoll Maldives
Gwadar Pakistan
Djibouti First Chinese Overseas Military Base (overlooks Bab el Mandeb)
String of Pearls

Side Topic: Kra Canal 

  • The Kra Canal aims to address China’s Malacca Dilemma.
  • It is a 100-km canal cutting Thailand into two parts. Kra Canal will link the South China Sea to the Andaman Sea, bypassing the Malacca Strait.
  • It has the added advantage of saving time.
  • Experts believe Kra Canal could benefit India and other economies by taking pressure off the overcrowded Malacca Straits.
Kra Canal

Indian steps  wrt IOR

To counter String of Pearls, India is also making ports 

Andaman & Nicobar Islands It can act as an Iron choke to Malacca
1. Malacca strait is overlooked by Andaman & Nicobar islands.
2. India has established a naval air station here called Baaz.
Chabahar Port India is developing the Chabahar port in Iran.
Duqm port India has signed an agreement with Oman to provide military and logistics support to Duqm Port.
Seychelles India has given a proposal to lease the Assumption Islands from Seychelles.
Myanmar India is investing in Sittwe port as part of its Kaladan Multimodal project.
Mauritius India has developed infrastructure on Agalega Island in Mauritius.
Srilanka India is developing Kakesuthai & Trincomalee ports.
France India and France signed the “reciprocal logistics support” agreement as part of which warships of both nations would have access to each other’s naval bases.  

Making Alliances

Apart from that, India is trying to contain China by making alliances with like-minded nations. These include

  • Making an alliance with Vietnam (Vietnam, too, has issues with China in the South China sea).
  • Malabar practice with US & Japan.
  • Formation of Quad by USA, Japan, Australia and India.

Military Modernisation

  • Agni, Sukhoi, Nuclear submarines, and Aircraft Carriers-Vikramaditya and Vikrant, are not meant for Pakistan but to fight against a powerful nation like China.

Iron Curtain Policy  to counter Chinese String of pearls

  • It is the term given by naval analyst Zang Ming according to which Andaman & Nicobar islands can be used as a metal chain to block Chinese access to the Strait of Malacca.
  • Japan is also helping India to develop Andaman and Nicobar.

Project Mausam

  • It was launched in June 2014.
  • It is a Ministry of Culture project.
  • Aim : 
    1. The project tries to see how the monsoon winds helped maritime trade historically between Indian Ocean-connected countries. 
    2. How winds influenced local economies, scientific quests, modern statecraft, religion, politics and cultural identity

Cotton Route

  • ‘Cotton Route’ has been started to strengthen economic ties between countries in the Indian Ocean rim. 

Spice Route

  • The Spice Route has been started to revive old links between 31 countries in Asia and Europe with India, particularly spice-rich Kerala.

SAGAR Initiative

  • Announced by the PM of India, the Sagar initiative aims at Security And Growth for All in the Region.

Challenges to India’s role as a net security provider in IOR

  • The capacity of the Indian defence industry to supply naval and military equipment to India and its allies is challenged by the experts. Achieving the status of net security provider can put enormous strain on the country’s finite resources and calls for a manifold increase in existing military hardware. 
  • More focus on territorial boundaries: Due to its pending territorial disputes with China and Pakistan, India is forced to focus on its territorial boundaries.
  • China challenges India’s status in the Indian Ocean through its Belt and Road Initiative and String of pearls.
  • Opposition from other countries. E.g.: 
    1. Seychelles parliament has opposed the lease of Assumption Island to India.
    2. Past Experience of Overseas Deployment of Armed Forces: The recipe of net security provider does encompass ‘Overseas Deployment’ as a vital ingredient. However, the experiences in Sri Lanka continue to have a dragging effect on any thought process involving overseas deployment. 

India Bhutan Relations

by
India Bhutan Relations

India Bhutan Relations

This article deals with ‘India Bhutan Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Brief History

Timeline of India Bhutan Relations

India and Bhutan have long-standing diplomatic, economic and cultural relations.

  • India’s relations with Bhutan go back to 747 AD when a Buddhist monk Padmasambhava went from India to Bhutan and founded the Nyingmapa sect of Buddhism. Thus, India contributed to the cultural growth of Buddhism in Bhutan.
  • Bhutan came under the control of the British Empire when it lost in the Anglo-Bhutan Wars. Consequently, the Bhutanese king was forced to sign a humiliating treaty. 
  • When India became independent in 1947, Nehru went to Bhutan to build relations. Bhutan also preferred India over China as, in 1949, when China took over Tibet, it did create tensions and fears of annexation in Bhutan. In 1949, India and Bhutan concluded a Treaty of Friendship.
  • Diplomatic relations between India and Bhutan were established in 1968 with the appointment of a resident representative of India in Thimpu.  
  • Regular visits between both countries’ highest level Government functionaries have become a tradition. Dr Lotay Tshering, PM of Bhutan, visited India in 2018. It is the first overseas visit of PM Tshering after assuming office in 2018. Bhutan was also the first country visited by PM Narendra Modi after assuming office in 2019. The visit reflects the high priority that the Government of India (GoI) attaches to its relations with Bhutan.

Presently, Bhutan-India relations are governed by a friendship treaty renegotiated in 2007, freeing Thimphu’s external relations from New Delhi but still subjecting the Himalayan nation’s security needs to Indian supervision. 

India-Bhutan Friendship Treaty

  • Treaty of Friendship was signed in 1949. Terms of Treaty included 
    1. As per Article-2 of the treaty, India accepted Bhutan’s sovereign and independent status, but Bhutan has to seek Indian guidance in matters of defence and external affairs. 
    2. Apart from that, Indian citizens have the same right to employment in Bhutan as Bhutanese nationals do in India. 
    1. Open border system between Bhutan and India under which citizens of India and Bhutan have a right to move into each other’s territory without a visa
  • The treaty was revised in 2007 because Bhutan raised its voice against Article 2 of the treaty. Under the renegotiated Treaty of Friendship, only defence is guided by India, and Bhutan can have independent Foreign Policy.
  • India-Bhutan Trade And Transit Agreement (1972) provides for duty-free transit of Bhutanese exports through India to third countries.
  • Treaty of Cooperation in Hydropower and Protocol (2006): Under the treaty, India has agreed to help and assist Bhutan in developing Hydropower of 10 GW and assured Bhutan to import the surplus to India. 

Importance of Bhutan for India

Strategic importance

  • Bhutan acts as a buffer between India and China.
  • Chumbi Valley is situated at the trijunction of Bhutan, India and China and is 500 km away from the “Chicken’s neck” in North Bengal, which connects the northeast with the rest of the country. China is demanding Chumbi valley from Bhutan, which can jeopardize Indian security. 
  • After the Doklam standoff, securing Bhutan’s present borders, especially its western border, is essential for India to secure Siliguri Corridor/ Chicken’s Neck.  

To contain insurgency in North-East

  • Bhutan cooperated with India and helped flush out militant groups like the United Liberation Front of Assam (ULFA) from the Himalayan nation. In 2003–04, the Royal Bhutan Army launched a mega operation known as Operation All Clear to eliminate ULFA and NDFB cadres in South Bhutan and successfully neutralized 650 insurgents and destroyed 30 insurgent camps.

Political Importance

  • An unstable and restive Bhutan would jeopardize India’s investments in that country and provide a safe haven for anti-India activities and anti-India militant groups. 
  • Bhutan is also the only country in the region that joined India in its boycott of the Chinese Belt and Road Initiative.  

Multilateral Cooperation

  • Bhutan is a founding member of the South Asian Association for Regional Cooperation (SAARC). It is also a member of BIMSTEC, World Bank, the IMF, Group of 77 and others.

Commercial Relations

  • The trade between the two countries is governed by the India-Bhutan Trade and Transit Agreement 1972, last renewed in 2016. The Agreement established a free-trade regime between the two countries. The Agreement also provides for duty-free transit of Bhutanese exports to third countries. 
  • India has been the principal financier of Bhutan’s 5-year plan (for the latest five-year plan of 2018-2023, India has committed ₹4500 crores.) 
  • Both countries have committed to developing 10,000 MW of hydropower generating capacity in Bhutan. 
  • India is Bhutan’s largest trading partner. Around 80% of Bhutan’s total imports are from India, and India provides a market for 90% of its exports. 
  • The government is planning to build a mini dry port in the border town of Phuentsholing to promote trade. 
  • Indian banks, such as the SBI and Bank of Baroda, have a presence in Bhutan. 
  • Bhutanese currency  Ngultrum is officially pegged to the Indian Rupee.

Hydropower Cooperation

  • Hydroelectric power generated by Bhutan is the country’s main export to India. 
  • India has financed the dams through aid and loans and buys excess electricity. Bhutan exports around 45% of its hydropower to India. 
  • Both countries have committed to developing 10,000 MW of hydropower generating capacity in Bhutan. 
  • Three hydroelectric projects (HEPs) made with Indian assistance are already operational. These projects include
    • Tala HEP (capacity = 1 GW || Most important project of Bhutan)
    • Chukha HEP
    • Kurichu HEP

Problems: 

  • India’s power-surplus status and the advent of other renewable energies like wind and solar power will make it more difficult for Bhutan to ensure that its hydropower sector becomes profitable. 
  • Bhutan alleges that due to hydro cooperation with India, there is a dominance of Indian firms in Bhutan. It feels that an overwhelming presence of Indian firms in Bhutan has restricted the space of growth for the Bhutanese corporate sector. 
  • Bhutan feels that the Indian firms end up recruiting cheap Bangladeshi labour in dam construction; as a result, Bhutanese don’t stand to benefit from the diplomacy.

Security Ties

  • The Indian military “is virtually responsible for protecting Bhutan from external and internal threats“.
  • The Eastern Command of the Indian Army and Air Force have integrated Bhutan’s defence into their role and responsibilities. 
  • The Indian Military Training Team (IMTRAT) trains Bhutanese security personnel as well. 

People to People Cooperation

  • Approximately 4000 Bhutanese are studying in Indian Universities.
  • India-Bhutan Foundation was established (in 2003) to enhance people to people exchanges in focus areas like education, culture, scientific and technical research, and environment protection.
  • About 60,000 Indian nationals live in Bhutan, employed mainly in the hydroelectric power and construction industry. 

Other aspects of cooperation

  • Space Cooperation: In 2020, India and Bhutan signed MoU on Space Cooperation and India will assist Bhutan in Remote Sensing, Space Communication etc. 
  • Project Dantak: Since 1961, Border Roads Organisation (BRO) has run Project Dantak. Under this, the BRO provides for roads construction, telecom works, colleges, schools and other infrastructure.
  • During COVID Crisis (2020-21), India supplied vaccines to Bhutan. In return, when India faced a severe oxygen shortage, Bhutan gave 40 metric tonnes of oxygen (~10,000 cylinders) every day to India.
  • India is also assisting Bhutan in establishing an e-Project covering all the 20 districts of Bhutan.
  • PM Narendra Modi has coined the idea of B2B as ‘Bharat to Bhutan’ to build effective and renewed bilateral relationships.

Issues / Irritants

Although the older Bhutanese generation looked to India with gratitude, the newer generation tends to look more profoundly and dissatisfied at the situation.

  • Doklam Crisis (73-day India-China standoff In 2017 ): Doklam, or Donglang in China, comprises a plateau and a valley at the trijunction between India, Bhutan and China. It is surrounded by the Chumbi Valley of Tibet, Bhutan’s Ha Valley and Sikkim. Despite several rounds of engagement between China and Bhutan, the dispute over Doklam has not been resolved. It flared up in 2017 when the Chinese were trying to construct a road in the area, and Indian troops, in aid of their Bhutanese counterparts, objected to it, resulting in the standoff. Doklam is located close to the Siliguri corridor, which connects mainland India with its north-eastern region. The corridor, also called Chicken’s Neck, is a vulnerable point for India. But many Bhutanese feel that why they should suffer for protecting Indian interests.  
  • India acting as a roadblock in solving the Bhutan-China boundary issue: Bhutan cant solve their boundary dispute with China. Bhutan has three disputed regions with China: Doklam Plateau, Jakarlung and Pasamlung. In 2013, India stopped all loans, subsidies and aid in retaliation for starting discussions with China for settling their boundary dispute without taking Indian consent. 
India Bhutan Relations
  • Bhutan had decided to withdraw from the BBIN Motor Vehicle Agreement because it would adversely affect its environment and its sovereignty.  
  • Bhutan also stopped free tourist access to Indians in 2020.
  • Imposing behaviour of India: Bhutanese people are raising voices against increasing Indianisation. E.g., Under Project Dantak, Border Roads Organisation built a road in Bhutan and placed boards with tricolour shade which wasn’t appreciated by Bhutanese people leading to a backlash. Ultimately, signboards were changed. 
  • Delays in Hydropower projects by Indian companies leading to the country’s burgeoning national debt.
  • Bhutan wants to increase its export power tariff to India as it is lesser than the cost of production.
  • Goods and services tax hurts Bhutanese traders & Demonetization left lasting scars on the banking system.
  • Indian aid is being criticized for creating ‘jobless growth’ in Bhutan.  
  • The terms on which India is financing the hydropower projects and getting electricity from Bhutan at cheap rates seems unfavourable to Bhutan. Hydropower plants are also attached to certain environmental concerns. 

Way Forward

  • Continue Foreign Aid: Although Bhutan remains the largest recipient of Indian aid, the amount of assistance in grants and loans to the country has dropped over the last two years. It is not the right time for India to decrease aid to Bhutan as the Chinese presence is growing.
  • India must draw the Bhutanese public attention to China’s role in the debt trap policy of China, epitomized by the Hambantota port case in Sri Lanka. 
  • Respect Bhutanese Values: India should demonstrate respect for Bhutanese values. The Bhutanese are environment-conscious people. Therefore, India should go for economically and environmentally more viable projects. 
  • Maintain Ties with the Bhutanese Monarchy: Unlike their Nepali counterparts, Bhutan’s monarchs have been strong proponents of close relations with India. India should back Bhutan’s constitutional monarchy and strengthen it by channelling its aid through this institution.
  • The fourth King of Bhutan King Jigme Singye Wangchuck coined the phrase “Gross National Happiness” in 1972 and declared that is more important than GDP. India needs to combine the Gross National Happiness of Bhutan with its own economic development to maintain a shared prosperity and relationship between the two countries.

India Nepal Relations

by
INDIA—NEPAL RELATIONS

India Nepal Relations

This article deals with ‘India-Nepal Relations.’ This is part of our series on ‘International Relations’, which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Introduction

  • India and Nepal are connected geographically, historically, religiously, economically and financially.
  • Open borders, shared religious background, marital relations, and unrestricted movement of people between the two nations are unique characteristics of bilateral ties. 
  • India and Nepal share a long boundary, and 5 Indian states-Uttarakhand, Uttar Pradesh, West Bengal, Sikkim and Bihar are adjacent to Nepal.
  • But in recent times, the relationship between the two countries has been going through an obnoxious phase.  

History

Common Culture

  • India and Nepal have had common culture since times immemorial. 
  • For example 
    • In Ramayana, Sita was from Janakpuri (Nepal).
    • Buddha was born in Rummendei in Nepal. Emperor Ashoka has also visited that place.

British Times

  • Treaty of Sagauli of 1816: Britishers defeated the Gurkhas in the Anglo-Gurkha wars and subsequently signed the Treaty of Sagauli.  
  • As per the treaty 
    • Uttaranchal, Himachal Pradesh and Sikkim were annexed to the British empire.
    • Treaty established Mahakali or Kali  River as a dividing line in the Western sector.
    • British resident was stationed at Kathmandu. 
    • Nepal surrendered its foreign policy to Britishers.
    • Britishers started to recruit Gorkhas to British Army. 

Treaty of Peace & Friendship, 1950

  • After the Independence, India and Nepal signed the Treaty of Peace and Friendship in 1950.
  • Under the terms of the treaty 
    • Nepal would consult India whenever they undertake any arms imports from any nation other than India.
    • Neither government shall tolerate any threat to the security of the other by a foreign aggressor.
    • Opening of the border between the two countries. 
    • Citizens of both countries are empowered to have the same privileges for property, trade and residence, movement, and work in India without a work permit.
    • As per Article X in the treaty, either party can ask for a change in the treaty whenever demanded.

Strengths in India-Nepal relations

Strengths in India Nepal Relations
  • A large number of Nepalese work in India (nearly 30 lakh Nepalis or 10% of Nepal’s population). Significant among them are Gorkha soldiers in the Indian army. 
  • Nepalese and Indians have common cultural & historical ties.
  • A large majority in Nepal follows Hinduism.
  • People belonging to the Terai region of India and Nepal have kinship and marital ties.  
  • Nepal is a landlocked country, and access to the outer world is only through India. 
  • Indian cinema & music is highly popular in Nepal.  

Importance and Cooperation

1 . Military Cooperation

Indian and Nepalese Military have very close ties. Eg

  • There are 180 training slots for the Nepalese army in the Indian Military Academy. 
  • Indian Army Chief is Honorary General of Nepal Army & vice versa.
  • Nepalese can serve as soldiers in the Indian army. Over 1.23 lakh veterans are currently residing in Nepal. India sends ₹ 1100 crores/ annum as pension to these ex-servicemen.
  • Battalion-level Joint Military Exercise’ SURYA KIRAN’ is conducted alternately in India and Nepal.

Issues

  • But Nepal is also increasing military ties with China. 2017 saw the first Nepal-China joint military exercise.
  • Indian army is recruiting more Garhwalis and Kumaon than Nepali Gurkhas in Gurkha Regiment. It has to be noted that the Gurkha regiment, originally comprised only of Nepali Gurkhas, changed the rule in 1975 to recruit Nepalese and Indian domiciled Gurkhas in 70:30. In the 1990s, it was changed to 60:40, and the government is considering changing it further to 40:60.

2 . Economic Cooperation

  • India is Nepal’s largest trading partner having bilateral trade of $7 billion. 
  • Indian exports to Nepal have grown 8 times in the past 10 years. 
  • India and Bangladesh have signed MoU to enable Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement (MVA), thus allowing the smooth movement of goods and vehicles across borders. 

3 . Strategic Importance

  • Nepal is a buffer state between India and China.
    • Indian border with Nepal is most indefensive as there is no protection by the Himalayas as Nepal lies beneath the Himalayas
    • If China penetrates Nepal and connects it with Road and Railways, Gangetic plains will become vulnerable.

4 . Multilateral Cooperation

Both India and Nepal are part of many multilateral organizations, especially

  • SAARC
  • BIMSTEC
  • BBIN 

5. Others

  • Education: 3000 scholarships/seats are provided to Nepali nationals in India annually.
  • Indian help in Post – Earthquake Reconstruction: India has pledged $2 billion for reconstruction in Nepal.  
  • Culture: India and Nepal have signed three sister-city agreements between 
    1. Kathmandu-Varanasi
    2. Lumbini-Bodhgaya (Buddhist)
    3. Janakpur-Ayodhya (Sita & Ram)
  • India and Nepal have had a Power Exchange Agreement since 1971 for meeting the power requirements in the border areas of the two countries. 
  • South Asia’s first cross-border petroleum products pipeline, constructed and funded by Indian Oil Corporation Ltd., connecting Motihari in India to Amlekhgunj in Nepal. 
  • India also provided economic assistance to Nepal, which was to the tune of ₹1200 crore. 

New Indian Projects  in Nepal

  • Construction of a Raxaul-Kathmandu, Jogbani-Biratnagar and Jaynagar-Bardibas railway line. 
  • Nepal-India Ramayana Circuit connecting Janakpur, the birthplace of Sita, with Ayodhya.
  • 900 MW Arun III hydro-electric project in Nepal.
  • Upgradation of 10 roads in the Terai area; 
  • Establish Integrated Check Posts at Birgunj, Biratnagar, Bhairahawa, and Nepalgunj.

Issues / Irritants

1 . Open Border Issue

  • Peace and Friendship Treaty of 1950 accepted “open border” between India and Nepal. An “open border” means an unrestricted movement of people from either side.
  • Due to Open Border, many illegal activities are carried like 
    • Fake Currency,
    • Terrorist penetration, 
    • Drug Smuggling, 
    • Human Trafficking. 
    • Pakistan has been taking advantage of the open border to infiltrate terrorists and pump fake Currency into India. 

2. Kalapani Issue

  • The origin of the Kalapani issue goes back to the Treaty of Sagauli. As per the treaty, the Kali River was designated as the boundary. In between the two streams of the Kali, the river lies Kalapani. The issue arises because India recognizes the eastern stream as the Kali river while Nepal recognizes the western stream as the Kali river. 
  • Kalapani is a strategic position located at the trijunction of India, China and Nepal and provides an advantage to India vis a vis China. Nepal is demanding it (under Chinese pressure, demand is gaining strength). 
  • This issue took an ugly turn in 2020. India built a new 80 km-long road in the Himalayas, connecting to the border with China, at the Lipulekh pass. The Nepali government protested immediately, contending that the road crosses territory that it claims and accusing India of changing the status quo. Later, Nepal enlarged its claim from 35 square kilometres of territory to nearly 400 square kilometres and incorporated it into the revised map through a constitutional amendment.
Kalapani Issue

3. Nepal Constitution of 2015 and Madheshi Issue

Constituent Assembly of Nepal framed the constitution of Nepal, which came into force in 2015. But India was not happy with this development because of the following reasons:-

  1. In the new constitution, the Madheshi (who constitute 70% of the population, speak Maithili, Bhojpuri, Awadhi and Hindi and have a close relationship with Indian living across the border) were left out. Out of 165 Legislative Assembly seats, they were given just 65 seats, while Pahadis were given 100 seats. 
  2. It also intends to destroy the roti-beti character, as women from UP and Bihar states of India who marry a Madheshi will be treated as a foreigner for up to five years.

4. River issues

  • Nepal is an upper riparian state and has great hydropower generation potential. However, Nepal’s installed hydel capacity of 800 MW is much lesser than the potential of over 80 GW. Due to power shortages, power cuts are common throughout the country. India has approached Nepal to develop power projects on the Nepalese river on the condition of getting preferential rights over Nepalese waters. Still, Nepal has refused it due to sovereignty issues and the Indian track record of not delivering projects on time. 
  • India and Nepal share three major rivers, i.e. Kosi, Gandhak & Mahakali. There are three treaties to regulate water sharing, and these include
    1. Kosi River Treaty: Kosi river causes tremendous flooding in Bihar. As per the treaty, the two sides agreed to manage Kosi flooding. India has constructed the barrage on the Kosi river in Nepal, and Nepal agreed to give its management rights to India for 199 years. 
    2. Gandak River Treaty: Under the treaty, both sides utilize water from the Gandak river to generate 20 GW of electricity. 
    3. Mahakali River Treaty: Under the treaty, India has agreed to undertake the creation of three dams at Sarda, Janakpur and Pancheshwar. Both sides have agreed to share costs. However, there has been no progress on these projects owing to pending social and environmental impact assessment.
  • Certain sections in Nepal allege that India, while managing the barrage on the Kosi river, does not release adequate water for irrigation and, during floods, opens the gates, leading to many villages getting submerged completely.

China card of Nepal

  • China has increased its footprint in Nepal. China in 2015 overtook India as Nepal’s biggest foreign investor.
  • The present government has a clear tilt towards China.
  • Chinese Project of which Nepal is part include
    • China and Nepal have signed an agreement for all-weather road connectivity between Kathmandu and the Tibet Autonomous Region.
    • China is planning to extend its rail network to the Nepal border. 
    • Nepal is part of the One Belt One Road (OBOR ) Project.
    • China is funding powerplant on Budhi Gandaki (worth $ 2.5 billion), Trishuli river etc. 
    • China has agreed to provide access to the Tianjin seaport to transit Nepali goods (but distance = 3,000 km || compared to 1,000 km from Haldia port ). 
    • China is making Dry Port at Kodari (China has already made the road from Kathmandu to Kodari) 
    • China is constructing a road connecting Kodari with Zhangmu (in Tibet).  
    • China Study Centers (CSC) and Confucius Institutes have been opened in large numbers in Nepal.
China Card of Nepal
Kathmandu-Kodari-Zangmu Road
  • In previous years, the Indian share in Nepal’s foreign trade is decreasing while China’s is increasing.
India vs China in Nepal
Indian and Chinese Share in Nepalese Trade

Why Nepal is interested in China

  • Dependency on India: Nepal has found itself heavily reliant on India for an outlet to the outer world because of its geographical constraints. India can practically blockade Nepal in case of any dispute. 
  • Ideological basis: The communist parties in Nepal have favoured and consistently protested against India.
  • Economic Opportunities: Nepal views the Chinese railway as an opportunity to bring Chinese pilgrims and tourists to Lumbini, the birthplace of the Buddha, and the famous valley of Pokhara. The  
  • Earlier, King Mahendra (in1960s), Birendra & Gyanendra too used China card. Hence, it is not a new problem.

Why China is interested in Nepal

  • The market for Chinese products in Nepal.
  • The Tibetan community in Nepal is a serious concern. China is pressuring the Nepalese government to do crackdown on Tibetan activities.
  • Use Nepal in breaching the Himalayan barrier. 

Why India is worried?

  • Strategic vulnerabilities: Rising Nepal and China cooperation signals that the Himalayas are not a barrier anymore.
  • Debt Trap diplomacy of China: China can take parts of Nepal on lease as done in Sri Lanka in the case of Hambantota port.
  • Effect on other neighbours: Including Bhutan, which has faced similar circumstances with India and China.
  • Impact on regional groupings: Growing China-Nepal relations may become a hurdle in regional groups like BIMSTEC, in which Nepal holds a powerful voice.

Indian strategy to contain it

  • Due to the Indian policy of not buying power from Chinese projects, the Nepalese government was forced to abandon Chinese involvement in the West SETI Power Project. Hence, the Nepalese government gave the project to NHPC.

India Afghanistan Relations

by

India- Afghanistan Relations

This article deals with ‘India Afghanistan Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

A brief history of India-Afghanistan Relations

1950 Afghanistan and India signed a “Friendship Treaty.”
1950 to 1978 India had robust ties with Afghanistan during King Zahir Shah’s regime. 
1978 People’s Democratic Party of Afghanistan (PDPA) (Marxist Party) took power in a military coup , an event which is known as SAUR Revolution. They started series of radical reforms in Afghanistan and as a results conservatives started war against them.  
1979 Soviet Union entered Afghanistan after threat of removal of Socialist government in the neighbourhood of USSR was eminent and war started between the Soviet Union led Afghan forces and Mujahedeen allegedly supported by USA and Pakistan .  
1989 Soviet forces left Afghanistan after eminent defeat .  
1990s  Taliban rose to power in Afghanistan. India started to support the ‘Northern Alliance’ which was fighting Taliban in Afghanistan .  
2000s till 2012 – Subsequent to the 9/11 attacks in USA, NATO interfered in Afghanistan under OPERATION ENDURING FREEDOM (2001)  with the purpose to defeat Al-Qaeda,remove the Taliban from power &  create a viable democratic state .
– Taliban gave a tough fight and as a result, NATO stayed in Afghanistan for  more than decade.
– USA also worked for the capacity building of the Afghan National Security Force (ANSF) and it was thought that even after the US troops finally withdraw, the ANSF would be strong enough to prevent the Taliban from recapturing Afghanistan .
 
Post  2012 Barack Obama shifted the focus on ending the Afghan war.
– Obama increased the US troops in Afghanistan during first term (called ‘Surge Policy’).
– But his policy saw major turn in second term when he decided to  withdrew all but approximately 8,400 soldiers from Afghanistan
2016 In 2016, Prime Minister Narendra Modi was conferred with Afghanistan’s highest civilian honour, the Amir Amanullah Khan Award.
Trump policy Trump regime wanted to withdraw American troops from Afghanistan .
Feb 2020 US president struck a peace deal with the Taliban on the issues of counterterrorism and the withdrawal of U.S. and international troops. Its terms were as follows
1. The United States to reduce its troops in Afghanistan from 12,000 to 8,600.
2. Release of prisoners and prisoner swap.
3. Recognition to Taliban and US will move to the United Nations Security Council to remove Taliban members from the sanctions list.
4. Taliban would prevent any terror group from using Afghanistan to threaten the security of the US and its allies.
5. Intra-Afghan Negotiations will be start  among all the stakeholders of the Afghan society and the Taliban would commit towards it.  
2020 ‘Intra-Afghan peace talks’ held for the first time between Afghan government and the Taliban in Qatar.

India – Afghanistan

  • In 1999, India became one of the key supporters of the anti-Taliban Northern Alliance.
  • In 2005, India proposed Afghanistan’s membership in the SAARC.  Both nations also developed strategic and military cooperation against Islamic militants.
  • Afghanistan signed its first Strategic Partnership Agreement with India in 2011.
  • In 2016, PM Narendra Modi was conferred with Afghanistan’s highest civilian honour, the Amir Amanullah Khan Award.

Importance of Afghanistan for India

India has a vision about stable Afghanistan which would be the crossroad of trade, the role which Afghanistan has played for centuries.

Economic importance

  • Natural Resources: Afghanistan has a mineral wealth of about $1-3 trillion which includes Iron ore, Lithium, Chromium, Natural Gas, Petroleum etc.
  • Massive reconstruction plans for the country offer a lot of opportunities for Indian companies.

Security

  • A stable government in Kabul will not give a safe haven to terrorists that might reduce insurgency in Kashmir. In fact, at present, the extremists fighting in Kashmir have drawn inspiration from the resistance offered by Afghan Mujahedeen against the Soviets during the Cold War.
  • Afghanistan can help in the prevention of Pakistan from regaining its central role in Afghan affairs.

Gateway to energy-rich Central Asia

  • Afghanistan is situated at crossroads between South Asia and Central Asia and South Asia and the Middle East. 

Indian works in Afghanistan

  • India has contributed 2 billion $ for Afghanistan’s reconstruction (6th largest donor by amount).  Indian assistance has been largely focused on infrastructure, irrigation and defence.
  • India has helped in the deepening of democracy in Afghanistan by building its Parliament building (cost = $90 million). 
  • Other Indian projects in Afghanistan include
    • Salma Dam on Harihud river (cost = $290 million) will generate 42 megawatts and irrigate 75,000-hectare land. It was later renamed to India-Afghanistan Friendship Dam.
    • Construction of a 218 km road from Zaranj to Delaram for facilitating the movement of goods to Chabahar Port.
    • Committed to contribute substantially in improving the transportation system in Kabul & to donate 1000 buses.
    • India has built a 220 kV DC transmission line from Pul-e-Khumri to Kabul.
    • Constructing the Chimtala power substation in Kabul.
    • Rebuilding of the Habibia High School in Kabul.
    • Financing the establishment of the Afghan National Agriculture Sciences and Technology University (ANASTU) in Kandahar.
    • Building the cricket stadium in Kandahar.
    • Building a cold storage warehouse in Kandahar.
  • India and Afghanistan signed a Preferential Trade Agreement in  2003. In  2011, India removed basic customs duties for all products of Afghanistan (except alcohol and tobacco) giving them duty-free access to the Indian market.
  • Afghanistan is rich in mineral resources.   India has acquired rights to iron mining (from Hajigak iron ore reserves).
  • Accessing Afghanistan is the biggest problem for India because Pakistan doesn’t allow Indian trucks to pass from her territory & reach Afghanistan. To overcome this India has invested in a route through Iran (Zaranj-Delaram Highway). Chabahar port will also help in this pursuit.
  • India has also invested in TAPI. If the project takes off, it will help Afghanistan to earn a transit fee.
  • India has donated four Mi-25 attack helicopters to Afghanistan.
  • India train cadets of the Afghani Army at NDA and IMA.
  • A large number of Afghani students come to India to study through scholarships. 
  • Afghanistani Cricket Team has a base in Dehradun.
  • Indian Soft Power: Indian Bollywood movies and dramas are among the favourite of Afghani people.  In Afghanistan, the reason that Bollywood is popular is that it has deep echoes with the psyche of Afghan society. Bollywood cinemas are based on the theme of a larger-than-life Bollywood hero fighting injustice. This synchronizes well with the Afghan society, which has also faced and continues to face immense injustice.

APTTA (Af-Pak Transit Trade Agreement)

  • Treaty was originally signed in 1950 to provide access to Karachi port & Lahore dry Port to Afghanistan. Under the modified agreement in 2011, along with Karachi port and Lahore dry port, 
    • Afghan trucks loaded with Cargo meant for India can travel up to its last checkpoint at Wagah in Pakistan.
    • But no Indian goods can be imported and Afghan trucks would have to drive back empty to the Afghanistan-Pakistan border where they could load up with Pakistani goods.
Af-Pak Transit Trade Agreement
  • Afghanistan demands  Pakistan to open a transit route for India.  But Pakistan doesn’t allow this. Bitter India-Pakistan relations mean Afghan trucks carrying perishable fruit face long delays on both sides of the border.
  • In 2016, Ashraf Ghani asserted that if Pakistan does not allow its trucks to come back with goods from India, Afghanistan would block Pakistani access to Central Asia. But, despite the assertion by Ghani, Pakistan refused to budge.
  • Due to this, India is adopting alternate routes
    • India has built Zaranj-Delaram Highway and Chabahar Port for trade with Afghanistan in future.
Zaranj Delaram
  • India-Afghanistan Air Freight Corridor was started in 2017 (Bring Dry fruits to India & take medicine, garments etc. from India). The air corridor will be a big enabler to the bilateral trade and will send a strong message to Pakistan that despite its obstructionist behaviour, India will continue to engage with Afghanistan.

Heart of Asia – Istanbul Process

  • ‘Heart of Asia- Istanbul Process’ was established to encourage security, political and economic cooperation between Afghanistan and its neighbour.  There are 14 participating countries in this.
India Afghanistan Relations
  • 6th & latest conference was held in Amritsar in Dec 2016. Amritsar Declaration was adopted which called for
    • Immediate elimination of terrorism from Afghanistan 
    • State-sponsored terrorism was identified as a key challenge
  • Amritsar was chosen as a venue by India because
    • Amritsar lies at the heart of the Grant Trunk Road connecting Bangladesh to Peshawar.
    • India showcased that Pakistan remains an irritant in facilitating regional connectivity. India used the conference in Amritsar to press Pakistan to allow entry of trucks and transit to Afghanistan via the Attari- Wagah border.

Issue: US withdrawal from Afghanistan

Timeline

2000s till 2012 – Subsequent to the 9/11 attacks in the USA, NATO interfered in Afghanistan under OPERATION ENDURING FREEDOM (2001)  with the purpose to defeat Al-Qaeda, remove the Taliban from power &  create a viable democratic state.
– Taliban gave a tough fight and as a result, NATO stayed in Afghanistan for more than a decade.
– USA also worked for the capacity building of the Afghan National Security Force (ANSF) and it was thought that even after the US troops finally withdraw, the ANSF would be strong enough to prevent the Taliban from recapturing Afghanistan.
 
Obama Policy – Obama increased the US troops in Afghanistan during the first term (called ‘Surge Policy’).
– But his policy saw a major turn in the second term when he decided to withdraw all but approximately 8,400 soldiers from Afghanistan.
Trump policy Trump regime wanted to withdraw American troops from Afghanistan.
Feb 2020 US president struck a peace deal with the Taliban on the issues of counterterrorism and the withdrawal of U.S. and international troops. Its terms were as follows
1. the United States to reduce its troops in Afghanistan from 12,000 to 8,600.
2. Release of prisoners and prisoner swap.
3. Recognition to Taliban and US will move to the United Nations Security Council to remove Taliban members from the sanctions list.
4. Taliban would prevent any terror group from using Afghanistan to threaten the security of the US and its allies.
5. Intra-Afghan Negotiations will start among all the stakeholders of the Afghan society and the Taliban would commit towards it.  
2020 ‘Intra-Afghan peace talks’ held for the first time between the Afghan government and the Taliban in Qatar.

Reasons for US withdrawal

  • Trump’s America First Policy: Trump is not in favour of wasting US ‘blood and treasure’ on distant lands (19th year and no solution in sight).
  • The realisation that the Afghanistan war cant be won owing to Afghan geography and society. Even after 19 years of war, the Taliban is controlling a large part of Afghan territory.
Area under Taliban Control

Reasons for US failure

  • Polity factor: The US failed to integrate the Taliban into Afghan government & National Unity Government was corrupt & inefficient.
  • Geographical Factors:  hostile terrain as well as guerrilla tactics used by Talibs.
  • Great Game:  
    • Intervention by global powers. E.g. U.S.-Russia tensions are creating space for proxies.
    • Intervention by regional powers. Eg: India vs Pakistan.
  • Role of Pakistan: ISI allowed senior Taliban Leaders to run the war in relative security. 
  • Socio-Cultural Factors:  nomadic and tribal society in Afghanistan comprises multiple tribes like Pashtuns, Turks and Persians, each dominant in different regions, asserting their own traditions and culture. The tribal factionalism didn’t allow the democratically elected government to settle in Afghanistan.

Consequences of US withdrawal

  • The resurgence of Taliban: Post US withdrawal, the Taliban with help of Pakistan can take over the whole of Afghanistan.
  • The breeding ground of Terrorism threatening the security of Central Asia and India.
  • Refugee Crisis as instability will result in the mass exodus of Afghans.
  • Threat to human rights: The Taliban wants to reimpose its version of Islamic law as the country’s system of governance.

Consequences for India

  • The upsurge of terrorism and act as a launchpad for attacks on India as happened during 1990s post-Soviet withdrawal. Eg: In 1999, Pakistani terrorists hijacked Indian Airlines flight IC-814 and landed in Kandahar.
  • On Kashmir:  Separatists in Kashmir are using the Taliban’s “victory” over the US  to inspire that they too could “defeat India”.
  • India has already invested 2 billion $ in Afghanistan’s infrastructure along with a large investment in Chabahar port with an eye on Afghanistan.
  • The ‘Golden Crescent’ comprising of Iran, Afghan, and Pakistan is a worry for India, especially with respect to the issue of drug abuse in Punjab
  • TAPI project may get jeopardised impacting the energy security of India.
  • It will lead to increased Pakistani involvement in Afghan policy which will disturb the Balance of Power in the Middle East & Central Asia in Pakistan’s favour.
  • Refugee Crisis will impact India. Due to the resurgence of the Taliban regime, a large number of Afghani Sikhs and Hindus will seek refuge in India.

India-Russia Relations

by
India-Russia Relations

India-Russia Relations

This article deals with ‘India-Russia Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

History of Relations

Timeline of India-Russia Relations

Pre-Independence Relations

  • In the early 19th century, the Russian Tsar expanded to Central Asia. Britishers perceived this as a threat to British Indian Empire. To stop Russian advancement, they started Anglo-Afghan wars, aiming to make Afghanistan a buffer between the Russian and British Empire. This whole episode culminated with the Anglo-Russian Convention of 1907, under which Russians accepted the British as the paramount power in Afghanistan. 

Initial years after Indian Independence

  • India adopted the policy of non-alignment. 
  • Till 1953, when Stalin was alive, he wasn’t very keen on India. Stalin did not appreciate the non-aligned posturing of India.
  • After the death of Stalin, Indians and Soviet interests started to converge on the following issues 
    • Indian protest at the UN about extending the Korean War north of the 38th parallel.
    • Indian support for the People’s Republic of China to enter the UN. 
    • Finally, the formation of the Southeast Asia Treaty Organization (SEATO) in 1954 and the Baghdad Pact in 1955 under the leadership of the USA was perceived by India as an attempt by the US to encircle India. India also condemned American support to Pakistan with arms. These events brought India closer to USSR. These events brought India closer to USSR.

Relations during 1962 War

  • Nikita Khrushchev favoured the improvement of ties with the US, while Mao tried to criticize it and promote his image as the sole representative of revolutionary movements. This difference between the Soviets and China led to the Soviets favouring India during the 1962 Chinese aggression. 

Relations during the Indo-Pakistan War of 1965

  • After 1962, India adopted the path of defence modernization. The Soviets decided to use it as an opportunity to build ties with India before any western country could fill this strategic space and emerged as the topmost defence supplier for India by the late 1960s. 
  • In the 1965 Indo-Pak war, India appreciated the role of the Soviets during mediation through the Tashkent Declaration. 

Relations post 1965 and leading up to War of 1971

  • In the 1970s, the US explored options of undertaking rapprochements with China and India began to fear a Beijing-Washington-Islamabad axis. 
  • India acted hastily. Since 1969, India and the USSR negotiated a diplomatic and strategic engagement. India speeded up the negotiations and, in 1971, concluded a twenty-year ‘India-Soviet Treaty of Peace and Friendship‘ with the clause of Collective Security  (i.e. if India is attacked, Soviet Union will come to help & vice versa). Shipments of arms began to arrive from Russia to India. 2021 marks the 50 years of the signing of the Indonesia-Soviet Treaty.
  • USSR has sided with India on the Kashmir issue and vetoed all resolutions against India in UNSC. 

Initial hiccups in the post-fall of the USSR

After the Cold War ended, the initial years of Boris Yeltsin’s rule were not smooth. Due to the fall of the USSR, both India and Russia were attracted towards the west without any convergence. During this period 

  • Rupees-Rouble Trade suffered as the value of Rouble declined steeply. In response, Russia asked India to pay in Dollars. 
  • Russia denied the cryogenic engine under USA pressure due to MTCR. 
  • Militancy in Chechnya and Kashmir presented a problem to both nations. 

End of the 1990s

  • Nuclear Tests of 1998 brought India Russia closer.
  • At that time, the world was divided into two groups. 
    1. USA, Japan and EU: placed sanctions on India. 
    2. Russia: Supported India arguing that India is surrounded by China & Pakistan & had the right to protect using Nuclear deterrence.

Putin’s Visit in 2010

  • During this visit, India and Russia signed a “Special and Privileged Strategic Partnership” (SPSP). 
  • One of the critical drivers for this move was India’s assertion for a multipolar world. The resurgence of Russia in the world to project itself as an independent pole in the international system suits India as it will prevent any form of unipolar assertion by either the US or China.

Crimea Issue

  • Russia annexed Crimea from Ukraine, where the Russian Black Sea Fleet is placed permanently and has been an outlet of Russia to the Mediterranean Sea. Although Western countries placed sanctions on Russia due to Russian expansionist policy, India supported the Russian decision.

Present Collaborations

India and Russia are presently collaborating on the following projects

  1. International North-South Transport Corridor (INSTC)
  2. BRICS and Shanghai Cooperation Organisation
  3. S-400 Triumf Air Defence Systems
  4. Joint development of Kamov-226 helicopters
  5. Development of Far East Russia
  6. Sputnik – V vaccine against Corona developed by Gamaleya Research Institute of Epidemiology and Microbiology was used by India.

Convergence of Interests

Russia needs India

  • To bypass western sanctions, Indian help is required.  
  • Act as a hedge against forthcoming Transatlantic Trade and Investment Partnership (TTIP)  driven by the US & EU.
  • India is the market for the Defence Industry of Russia. 
  • India is a significant market for oil.

India needs Russia 

  • To secure energy supply at a cost-effective price.  
  • To get cutting edge defence technology (no country provide its new technology). 
  • Russia is a good market for Indian pharmaceuticals, manufactured goods, dairy products etc.  
  • Russian Veto at UN matters for India. 

India-Russia Economic Cooperation

India-Russia Economic Cooperation
  • Indo-Russian trade flourished during the Cold War based on the Rupee-Rouble agreement. However, the foundation of this agreement was dismantled in 1992, which led to a decline in trade.
  • Annual Indo-Russian trade is $8.1 billion (2021).  The target is to increase it to $30 Billion in a decade. 
  • ONGC Videsh has invested $5 billion in Sakhalin I project in Siberia and Imperial Energy Ltd. 
  • Russia has developed Kudankulam nuclear energy project (1000 MW).
  • India and Russia are also in the advanced stages of talks of signing a Free Trade Agreement (FTA) between Indian and Russia-led Eurasian Economic Union (EEU).

Problems in trade with Russia

  • There are no direct overland trade routes possible today, though the International North-South Transit Corridor (INSTC) will try to establish that connectivity.
  • Supreme Court in 2012 declared 2G licenses as null and void after Russian AFK Sistema had teamed up with Shyam Telecom. It sent negative sentiments in Russian business houses.
  • Custom clearances and inspections are complex & time-consuming.
  • Russian importer needs to get a license to import. Russian businessmen demand Indian exporters to pay for these charges.
  • Product-specific approvals are required. 
  • Banking & finance issues due to strict norms in Current Account & Capital Account convertibility. 

Defence Relation

  • Defence Cooperation is more important than economic cooperation. India is going for massive weaponization, and Russia is the most crucial ally in this regard as 2/3rd of Indian military hardware comes from Russia. 
  • Following weapons of India are of Russian origin
Defence Cooperation in India-Russia Relations

1 . IAF

  • 32 out of 41 fighter Indian Air Force squadrons are Russian. These include
    1. MIG 21,23,27 and 29
    2. Sukhoi 30- MKI
  • New Deals have been signed for the following systems
    1. Joint Production of Kamov -226 Helicopter
    2. India has started receiving deliveries of S-400 Air Defence Systems

2. Army

  • T-72 & T-90 constitute 60% of 4168 battle tanks .
  • Indian army personnel will use AK-203, and a joint production facility to manufacture more than 600,000 Kalashnikov rifles will be set up in Korwa. 

3. Navy

  • INS  Vikramaditya (Gorshkov:) Aircraft Carrier 
  • Akula II class (INS Chakra): Nuclear Submarine
  • India and Russia conduct Joint Armed exercises known as  INDRA. 
  • Even after increased bonhomie with the US, the Indian government has already declared that Russia is India’s primary defence supplier.

Defence relations are changing

  • India is trying to diversify its arsenal because dependence on one nation in defence is a strategic liability. MMRCA (Rafale) Deal with France vouches for that.  
  • Russia is also trying to diversify its relations in response to the Indian position & is engaging with Pakistan to sell weapons. 

Issues in Indo-Russian Defence Relations

  • CAATSA, i.e., Countering American Adversaries through Sanctions Act of US, has the provision of Sanctions against American adversaries if they are doing trade with them. These adversaries include Russia, Iran and North Korea. It is presenting difficulty in payments. 

Space Cooperation

Space Cooperation in India-Russia Relations
  • Space cooperation between two countries goes back four decades. 2015 marked the 40th anniversary of India’s first satellite “Aryabhatta” on a Russian ( USSR) launch vehicle ‘Soyuz.’ 
  • In 1984, Indian astronaut Rakesh Sharma visited space in the Soyuz T-10, an issue of great political prestige for India. 
  • After the fall of the USSR, relations deteriorated for some time. In 1992, Russia denied providing cryogenic rocket engines to India as a non-signatory to MTCR. The sudden suspension of the deal came as a severe setback to the Indian space program. But relations have been stabilized again. Various MOUs have been signed between ROSCOSMOS and ISRO since then.
  • Earlier, India was using GLONASS as an alternate to US-controlled GPS. 

Energy Cooperation

  • Russia is an energy supplier, while India has a huge energy demand. As India is a net importer of energy, Russia is in a strategic position to cooperate.
  • The former Soviet Union played a significant role in building India’s energy sector in the following way
    1. Developing tens of hydropower stations
    2. Developing India’s coal industry
    3. Finding oil in Indian soil 
    4. Helping in setting up India’s energy major ONGC.  
  • India has invested 
    1. $5 billion in the Sakhalin-1 project, controlling 20 per cent stakes in the venture. 
    1. Purchased Imperial Energy, a London-listed oil major in the Tomsk region. 
    2. India is also interested in the Timon Pechora basin and Vankor in East Siberia. 
  • Both India and Russia are extending civil nuclear cooperation to 3rd countries, e.g. Bangladesh.

Indo-Russian Cooperation to develop Russia’s the Far East

  • India participated in the 5th Eastern Economic Forum (2020), which aims to support the economic development of Russia’s resource-rich the Far East. 
  • India has unveiled the “Act Far East” policy to boost India’s engagement with Russia’s Far East region. 
  • India has extended a $1 billion line of credit for the development of this region. 
  • India has proposed developing a maritime route between Chennai and Vladivostok to bypass Europe to reach Russia. This will reduce the time for cargo to reach Russia to 24 days from the current 40 days.
  • Several Indian companies have been successfully set up in the Russian Far East region, such as KGK in Vladivostok in the field of diamond cutting and Tata Power in Kamchatka in coal mining. 
Far East Russia and India

Multilateral Engagements

  • Russia has supported India’s bid for a permanent seat in UNSC. 
  • Russia has been favouring Indian entry to the Nuclear Supplier Group. 
  • Both countries are on the same page regarding the reform of multilateral institutions like IMF and the World Bank.  
  • Both countries are a member of important international organizations like
    1. BRICS
    2. Shanghai Cooperation Organization (SCO) 
    3. G-20  

People to People Cooperation

  • Programs like ‘Namaste Russia’ have been run in Russia.
  • Institutes like Jawaharlal Nehru Cultural Centre, both the countries have had good cultural links. 

Downturn in Relations

  • During the Cold War, defence ties were the most important elements of our relationship. In the post-Cold War era, the US, France and Israel have emerged as direct competitors to Russia in providing defence supplies to India. Russian share in India’s defence imports has decreased from 79% (2008) to 62% (2017).
Defence Relations between India and Russia
  • India’s growing proximity to the United States: Rapidly expanding ties and growing defence relationship between India and the US corroborated by the fact like joining Quad led by the USA, signing of logistic agreements like BECA, LEMOA, COMCASA etc. with the US has impacted the India-Russia Relations. 
  • One dimensional trade: Trade has been one-dimensional, i.e. defence based. The trade between India and Russia in 2017-18 was $11 billion, which is far below potential.  
  • Russian leaning towards China: Russia has sold advanced military technology to Beijing and endorsed China’s One Belt One Road. There has also been concern about Moscow leaning toward Beijing in forums like the BRICS. Also, China and Russia inaugurated the first cross-border pipeline to China from Russia’s far-east regions. Russia accounted for 77% of Chinese arms imports in 2016-2020.
  • Increasing bonhomie between Russia and Pakistan: In 2014, Russia lifted the arms embargo on Pakistan and is the second-largest weapons supplier to Pakistan, accounting for 6.6% of its arms imports.  
  • Issues wrt Taliban: Russia showing an inclination towards Taliban in Afghanistan while India continues to have concerns about the group. Hence, India and Russia have divergent interests in Afghanistan.
  • Issues with Quad: Russia is critical towards the concept of Quadrilateral Security Dialogue and has termed it as Asian NATO designed to contain China and Russia.

Steps taken to address this

  • Despite the threat of US sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA), India has remained firm on buying the S-400 Triumf air defence missiles system. 
  • Reinforcement of Defence Ties: India has finalized the following defence deals with Russia in recent times 
    1. Joint production of Kamov-226 helicopters.
    2. S-400 Air Defence System
    3. Nuclear-powered submarine (Chakra III)
    4. AK-203 Guns
  • INDRA upgraded to Tri-Services Joint Exercises.
  • Improving trade relations: In 2017, trade between countries increased by 20%. Two countries decided to reach the $30 billion investment goal by 2025.
  • Indian Prime Minister participated in the Eastern Economic Forum of 2020 and announced to make substantial investments in Far East Russia.
  • Indian Defence Minister undertook a trip to Russia for its ‘Victory Day’ parade even during the COVID-19 pandemic. 
  • India and Russia are developing the International North-South Transport Corridor (INSTC) to address connectivity issues. 

Is Russia still important?

  • Russia is a time-tested friend who has helped India on numerous occasions earlier. Increasing Russo-Pak Ties is just a symbolic gesture by Russia to tell India that they can find friends. 
  • Russian Defence partnership is important because they give Transfer of Technology in cutting edge technology which other countries including the US willn’t offer. In the US, all the defence system manufacturing is under private companies, while in Russia, they are state-controlled. Hence, the way in which Russia can help by supplying arms to set diplomatic relations on the right track can be done by the US (INS Vikramaditya, Nuclear Subs, Sukhoi, etc. ) 
  • Along with that, joint production deals in high-end products like Kamov Helicopters, Brahmos Missiles etc., matter to India if it wants to develop the domestic defence industry. US and western powers never agree to such agreements.
  • In Civil Nuclear Aspects, only Russia has given the best deals, like in Kundankulam. Other nations care too much about financial aspects and want to increase profits. 
  • If India wants to book its seat in UNSC, Russian support is critical. 
  • On various multilateral forums, Russia and India share space. BRICS & SCO are the most important.   
  • Russia has significant energy resources, and India needs Russia to satisfy its hunger for energy. 
  • Overall, as mentioned by PM Modi, Russia remains our principal Defence Partner. About 70 per cent of our weapons and equipment are of Russian or Soviet origin. 
  • Military Exercise with Pakistan should not be seen from a narrow perspective. In the age of Realpolitik, every nation wants to have maximum manoeuver space. India conducts military exercises with China too.

=> Overall, it can be concluded that, as Modi said in his joint statement (2016 meet) Old friend is better than two new friends, India shouldn’t abandon Russia because of what Russia can provide, no other nation in the world can do that. India should diversify its defence partnership, but Russia should remain India’s topmost priority, who was always there when India needed. 

India-Iran Relations

by
India-Iran Relations

India-Iran Relations

This article deals with ‘India-Iran Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Brief History

  • With the creation of Pakistan in 1947, India and Iran lost their geographical contiguity. 
  • In 1950, India and Iran signed a Treaty of Friendship and Perpetual Peace, marking the beginning of diplomatic relations between independent India and Iran. 
  • In 1953, Central Intelligence Agency orchestrated a coup to remove Iran’s elected Prime Minister, Mohammad Mossadegh and instituted the rule of Shah Mohammad Reza Pahlavi. 

From 1953 till 1979 (Under Shah’s regime)

  • In Cold War Politics 
    • Shah of Iran allied with the U.S.A. after signing the Baghdad pact in 1954. 
    • India was non-aligned.
  • Along with that, due to its affiliation to CENTO, Iran also developed proximity with Pakistan. 
  • During the 1965 and 1971 wars, Iran provided military assistance to Pakistan. 
  • Hence, nothing significant happened during this period. 

Period between 1979 – 1990s

  • In 1979, Islamic Revolution happened in Iran, and Iran came under the control of the theocratic regime of Ayatollah. 
  • Post-1979, India and Iran began to establish proximity. 
    1. During the Iran-Iraq war, India remained neutral.
    2. In 1983, both countries established an India-Iran Joint Commission (J.C.) to promote economic cooperation and organize foreign minister-level meets.
    3. During the 1990s, Afghanistan came under Taliban rule. Northern Alliance was fighting against Talibs. Pakistan supported the Taliban while India & Iran supported the Northern Alliance.
    4. Meetings between heads of government started. In 1993, Narasimha Rao visited Tehran, while in 1995, Akbar Hashemi Rafsanjani visited India. In 2001, Vajpayee and Khatami signed the Tehran Declaration, while, in 2003, Khatami signed the New Delhi Declaration on his visit to India.
    5. During this period, India started to import gas & oil from Iran in massive amounts. 

Post 2005-06

  • But after 2005-06, relations dipped due to Iran’s nuclear program, as a result of which Iran was placed under Western sanctions. India was forced to reduce trade with Iran under western pressure. 
  • Initially, India maintained that Iran had the right to have its nuclear program. But Western Pressure on India to reduce trade relations with Iran was too enormous for India to ignore. 
Timeline of India-Iran Relations

Geo-political dynamics of Iran

Iran is the leader of Shia World

There is a Shia-Sunni divide in the whole Islamic world

  • Iran = Leader of Shias
  • Saudi Arabia = Leader of Sunnis 
Shia versus Sunni
  • Due to this, Iran supports Shia militias like Hezbollah, Houthi rebels (in Yemen), Fatemiyoun (made up of Afghan Shias), Zainebiyoun (Pakistani Shias) etc.

Developing Nuclear Weapon

  • Iran wanted to develop a Nuclear Weapon for the regime’s security. 
  • But Saudis & Israel are U.S. allies, and they don’t want this because it will disturb the Balance of Power in the Middle East in Iran’s favour. 

India-Iran Cooperation

India-Iran Cooperation

1 . Strategic Aspects 

  • Iran is critical in the fight against Al-Qaeda, ISIS, Taliban etc., which pose a danger to India. 
  • Iran is the crucial player in the stability of Afghanistan, which is important for Indian security considerations. 
  • Iran is also important for securing Sea Lanes of Communication (SLoC) by combating piracy in the Indian Ocean region. 
  • India aspires to become a net security provider in the Indian Ocean region, where Iran is a significant stakeholder. 
  • Due to the sectarian divide, India can use Iran to contain Pakistan (a Sunni country).

2. Energy Cooperation

  • Iran has the fourth-largest reserve of oil and second-largest reserve of Natural Gas globally.
  • Iranian crude offers many benefits to India, including a long credit cycle, payment in the local currency, and shorter voyage on freight costs.
  • ONGC Videsh Ltd has stakes in the Farzad-B gas field in Iran (the world’s biggest natural gas field).
  • India also wants to set up joint-venture fertiliser plants in Iran to exploit cheap natural gas. 
  • IPI Pipeline (Iran -Pakistan- India) is also on the cards from Iran to India. But India fears the safety of the IPI pipeline passing through Pakistan, and India favours that Iran takes responsibility for the pipeline’s security.

3. Cultural Relations between India and Iran

  • India’s sizeable Shia population has an emotional connection with Iran.
  • Lucknow is influenced by Persian (/Irani) culture.
  • Hyderabad’s Qutb Shahi Dynasty was Persian (/Irani) in origin. 

4. Connectivity

Chabahar Port in Iran is the key in all connectivity projects of India as

  • It provides an alternate route to Afghanistan. 
  • It provides connectivity to Central Asia and Europe via International North-South Transport Corridor (INSTC).
  • It is an essential part of the Ashgabat Agreement.

5. Other Points of Cooperation

  • Indian Wheat and Pharmaceuticals are in great demand in Iran. Even during sanctions, wheat and pharmaceuticals were exported to Iran from India because these two items were out of the ambit of sanctions.  
  • India and Iran have stakes in the Indian Ocean, and both can cooperate for regional security from piracy.  

Challenges in India-Iran relations

Economic Challenges

  • Due to Western sanctions, it is difficult for Indian companies to trade with Iran. 
  • India stopped oil imports from Iran under US pressure. Before that, India imported about 2.5 billion tonnes of Iranian oil a month, which accounted for more than 10% of its energy needs. 
  • Due to decades of harsh economic sanctions, Iran faces massive unemployment and inflation. These conditions are creating massive unrest in Iran.

Political Challenges

  • Fundamental authority in Iran rests with Supreme Leader Khamenei, an unelected cleric.
  • India has enormous stakes in Saudi Arabia, U.A.E. and Israel. Indian bonhomie with Iran can upset these Middle Eastern powers at odds with the Iranian regime.  

Involvement in Proxy Wars

  • While Iran itself is facing an economic crisis at home, the Iranian regime is fighting and supporting a large number of proxies in the Middle East as part of its foreign policy. These include 
    • Saudi versus Iran Cold War in the Middle East is going on.   
    • Irani militias are supporting Bashar al Assad in Syria.
    • Yemen, where Iran is supporting Houthi rebels. 
    • Iran is supporting Hezbollah in Palestine and Lebanon. 

Kashmir Issue

  • In many of his sermons, Iran’s supreme leader Ayatollah Khamenei has supported the terrorists in the Kashmir conflict. 

Issue of Farzad-B gas field

  • ONGC Videsh Limited discovered the gas in the Farzad-B gas field in 2008. As India was waiting for the contract, Iran asserted that India would not receive preferential treatment and compete with other bidders. India is upset that Iran wishes to auction the Farzad-B field even when India asserted in 2017 that it is willing to put in $11 Billion in the project. India says that it expects preferential treatment in the Farzad-B field as Indian firms in 2008 had discovered gas in the field.

Chabahar Port Issue

The idea of Chabahar port came up in 2003 when Iranian President Khatami visited India, and a deal was signed between the two states. Post-1947, the partition has deprived India of physical access to Afghanistan and Central Asia. Chabahar port was envisaged as a project to correct this historical injustice. 

In 2016, the Trilateral Agreement was signed between India, Iran and Afghanistan. Under this agreement, India committed to developing Chabahar port and the land-based route connecting Chabahar port to Zahedan along the border with Afghanistan. India has committed to invest $500 million in this project.

Importance of Chabahar Port

India- Iran Relations

Its importance can be seen in two aspects

1 . Strategic Importance

  1. Alternate Route to Afghanistan
    • The route is from Chabahar to Zaranj to Delaram . 
    • It will help to end Afghanistan’s dependence on Pakistan for trade.
  2. Counter China at Gwadar Port
    • It will help to counter the Gwadar port of Pakistan built by China. 
    • Chabahar is located 72 kilometres west of Pakistan’s Gwadar port.
  3. It will help in Anti-Piracy Operations.

2. Economic importance

  • Increased connectivity with energy-rich Central Asia is in line with India’s Connect-Central Asia policy.
  • It will act as a lynchpin in  International North-South Transit Corridor that connects India to Central Asia, Russia and Europe.

Still an Issue

  • U.S. sanctions: Due to economic sanctions on Iran, it is difficult for India to fund the project. Although the U.S.A. has provided a sanctions waiver for the Chabahar port, it has been difficult to find equipment suppliers and partners due to worries that the U.S.A can target them. 
  • With the Taliban in power in Afghanistan, the rationale to reach Afghanistan is gone.
  • Saudi Arabia and Israel will be antagonised because of Indian association with such mega projects in Iran. 

2020 Update : Iran has decided to proceed with constructing a rail line from Chabahar port to Zahedan, along the border with Afghanistan, without India as India was finding it challenging to build the infrastructure due to U.S. sanctions.

Issue: Increasing Chinese influence in India

  • Belt and Road Initiative (B.R.I.): Under the B.R.I. umbrella, China is presently strengthening its ties with Iran, Saudi Arabia, U.A.E., Egypt and other Middle East countries using engagements such as the construction of stadiums, railways, industrial parks, 5G highways, clean energy project etc.
  • 25-year comprehensive strategic cooperation agreement: Iran and China have signed an agreement under which China would invest $400 billion in Iran over 25 years in its economy, infrastructure and industries.
  • Gwadar-Chabahar connectivity: Iran proposed a tie-up between Gwadar and Chabahar.  
  • Bandar-e-Jask port: Iran has offered this port to China, located just 350km away from Chabahar to China.
  • In 2019, a joint naval exercise was conducted between China, Iran, and Russia in the Gulf of Oman.
  • China is offering its G.P.S. to Iran and has committed to building infrastructure for 5G. 
  • China continued to buy Iranian oil even after the U.S. sanctions waivers expired, although in smaller volumes. In contrast, India stopped buying Iranian oil last year after U.S. waivers ended.

Issue: US out of Iranian nuclear deal

  • In 2015 an agreement, the Joint Comprehensive Plan of Action (JCPOA) or Iran nuclear deal, was reached between Iran and the P5+1 group — U.S., U.K., France, Russia, China and Germany — on Tehran’s nuclear program. The JCPOA was designed to stop Iran from producing its atomic weapons and set up a framework limiting the amount and degree to which Iran could enrich uranium. 
  • However, in 2018 U.S.A. unilaterally announced to decertify the nuclear deal on account of non-compliance by Iran and announced two rounds of economic sanctions on it. 
  • Dec 2020: New President Joe Biden has declared that his administration will revive the Iran Nuclear Deal. 

Limitations agreed by Iran under JCOPA

JCOPA
  1. Low enriched Uranium stockpile can’t exceed 300 kg.
  2. Enrichment of Uranium cant exceed 3.67% (for weapons, 90% enrichment is required, but after 20% enrichment, 90% can be achieved very quickly). 
  3. UN & IAEA Inspectors can inspect facilities. 

In return, Iran gets the termination of all economic and diplomatic sanctions imposed on it by the U.N. Security Council (UNSC), the European Union (E.U.) and the U.S.

US has pulled out of the deal and imposed sanctions

Sanctions include

  • No individual or company can trade with Iran. 
  • Sanctions re-imposed are “extraterritorial” in nature, i.e. they apply to not just American individuals and businesses but also non-American businesses or individuals.

US problems and Reasons for withdrawal

  • The deal doesn’t have binding restrictions on Iran’s Ballistic Program.
  • Many of the restrictions in JCPOA have sunset clauses, i.e. provisions will become less strict over the years.  
  • The deal doesn’t prevent Iran to prevent the sponsorship of terrorism in the region. 

Implications of US withdrawal from JCOPA on India

  • Higher Oil price 
    • Iran was India’s third-biggest supplier.
    • India faced the added cost of having to recalibrate Indian fuel refineries that are used to process Iran’s special crude.
    • Iranian oil came with discounts on freight and favourable payment terms, including non-dollar payments.
  • Indian projects impacted 
    • Chabahar project: Chabahar port is nominally exempted from U.S. sanctions, but suppliers are reluctant to deliver equipment.
    • It has prevented ONGC Videsh to invest in the Farzad B gas field.
  • Remittance: More than 50% of the total remittance received by India last year came from the gulf region. Any disturbance in the region would lead to a decline in such remittances.
  • The security of the Indian Ocean Region has been disturbed due to the volatile situation at the Strait of Hormuz impacts Indian trade negatively. It also allows outside powers to set base in the Indian Ocean, impacting the Balance of Power. 
  • Giving Space to China: If India succumbs to U.S. pressure while China remains firm, then India will lose strategic space to China.

Approach of Other nations to deal with this

  • China is routing transactions through the Bank of Kunlun. U.S. sanctions on this bank are ineffective since it is carefully insulated from the U.S. financial system. (India must learn from this)
  • European countries have attempted to bypass sanctions through a unique mechanism called INSTEX.

Indian payment approach

  • India has given the responsibility to UCO Bank to route the payment as it has no exposure to the U.S. financial system.  
  • Oil payments are being made in rupees only against earlier arrangements of 45% rupees and 55% Euros. 

India Bangladesh Relations

by

India Bangladesh Relations

This article deals with ‘India Bangladesh Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Brief History

  • Bangladesh became  Independent in 1971 with the military & political assistance of India.  In 1970, the Bengali Awami League Party won the Pakistani National Elections. But West Pakistan refused to recognize the election results and used brutal force to suppress the agitation by the Awami League Party. This situation led to a near war scenario, with armed East-Bengalis forming the Mukti Bahini (freedom force). India’s support to the Mukti Bahini by training and the supply of arms became imminent with millions seeking refuge in India. Pakistan’s pre-emptive strike at India provided the Indian army with the much-needed excuse to attack East Pakistan. By December 1971, Bangladesh emerged as an independent state.
  • Independence was won under the leadership of Sheikh Mujibur Rehman. He and his party Awami League was  Anti-Pakistan (and Anti-China)  and Pro-India (and USSR). 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 December 1971. From 1971 to 1975, came the era of Sheikh Mujibur Rehman who assumed power. In 1972, India and Bangladesh signed a Treaty of Friendship and Cooperation which became the foundation of the modern India-Bangladesh relations.
  • In 1975, Mujibur Rehman was assassinated due to a military coup by Zia-ur-Rehman. It ended the honeymoon period between Indo-Bangladesh relations. The regime thus formed was Pro-China, US & Pakistan and Anti-India & USSR. Later, he established Bangladesh Nationalist Party (BNP) .
  • Hence, due to historical reasons, BNP has a propensity to incline its policies to favour Pakistan and China while the Awami League favours a partnership with India. The BNP is not favourably disposed to India and has at times stated that it is suspicious of India.
India Bangladesh Relations

Various aspects of Indo-Bangladesh relations

Geopolitical Importance

  • Bangladesh shares a border of 4,096 km with India (longest border of India).
  • Bangladesh can act as an outlet for the North Eastern States which are land-locked and have a shorter route to the sea through Bangladesh. Eg: Chittagong and Ashuganj ports are just 70 and 40 km from the Indo-Bangladesh border with the North-Eastern States.
  • Act-East policy: Bangladesh can act as a ‘bridge’ to India’s economic and political linkages with South East Asia.
  • Bangladesh is an integral part of India’s ‘Neighbourhood First Policy.

Security Importance

  • Bangladesh can also help India to overcome the strategic vulnerability of Chicken Neck by providing an alternate route.
  • Bangladesh is also important for the Security of the Bay of Bengal  & tackling pirate activities.
  • Various Joint exercises of the Army ( Sampriti) and Navy (Milan) take place between the two countries.
  • Bangladesh can help to contain insurgency in the North-East.
  • In 2013, the nations also signed an extradition treaty.

Economic importance

  • Bilateral trade between India and Bangladesh has reached $9 billion apart from large unaccounted informal trade. But trade potential between two countries is 4 times this amount.
  • Bangladesh presents investment opportunities for Indian companies.
  • India and Bangladesh can cooperate in the blue economy(deep sea fishing, hydrocarbons, disaster management etc).
  • India is also developing business haats  (trading centres)  on Tripura-Bangladesh and Meghalaya – Bangladesh border.
  • India announced a $ 2 billion Line of Credit (LOC) for Bangladesh in 2015. The new LOC will cover projects in the areas of Roads, Railways, Power, Shipping, SEZs, Health & Medical Care and Technical Education. 

Cultural importance

  • Bangladesh is closely linked to India through its shared culture and ethnicity with West Bengal.
  • The Bengali language acts as a bridge between West Bengal, Tripura and Bangladesh.
  • Rabindranath Tagore is equally famous in Bangladesh (‘Amar Sonar Bangla’  was written by him).

Multilateral Cooperation

India and Bangladesh are co-partner in various multilateral Groups

  • Most important of which are SAARC & BIMSTEC.
  • Bangladesh supports India’s bid for observer status at OIC  and helps in countering Pakistan’s statement on Kashmir at OIC Forums. 

Energy Sector Cooperation

  • Bangladesh is an energy deficit country. India is providing 600 MW of power to Bangladesh since 2010.
  • Maitree thermal power plant is being developed as a joint venture between the National Thermal Power Corporation (NTPC) of India and the Bangladesh Power Development Board (BPDB) at Rampal. 
  • Rooppur nuclear power plant (Bangladesh’s first nuclear power plant) is being made by  Russia’s Rosatom and  Nuclear Power Corporation of India Limited (NPCIL).
  • Many Indian public sector units such as Indian Oil Corporation etc. are working with their Bangladeshi counterparts in the oil and gas sector of Bangladesh.
  • ONGC Videsh Ltd has acquired two shallow-water blocks in Bangladesh.

Connectivity

  • Passenger train service ‘Maitree Express’ between Kolkata and Dhaka operates 3 days a week. 
  • Regular bus services are present between Kolkata-Dhaka, Shillong-Dhaka and Agartala-Kolkata via Dhaka. 
  • Bangladesh, Bhutan, India and Nepal (BBIN) – Motor Vehicles Agreement (MVA) will significantly boost connectivity by road.

To reduce the influence of China

  • ‘Neutral’ Bangladesh helps to counter China’s One Belt One Road (OBOR) strategy.

Diaspora

  • About 10,000 Indian citizens are estimated to be living in Bangladesh. Most are engaged in the Ready-Made Garments (RMG) sector or as professionals in MNCs, Indian or Bangladeshi companies.

Issues in Indo-Bangladesh relations 

India and  Bangladesh resolved the most contentious land boundary issue. But  there  are  still  some  contentious  issues  that need to  be  resolved

  1. Teesta  Water  Treaty:  Teesta originates in Sikkim and enters Bangladesh after passing through West Bengal. There is conflict on water sharing between West Bengal and Bangladesh.
  2. Ganga Water: Treaty was signed in 1996 but India constructed Farakka Barrage to supply water to Hooghly and in the dry season, Bangladesh doesn’t get a fair share of water. India constructed the Farakka dam in West Bengal, about 11 miles from Bangladesh’s border. India maintains that it needs the barrage for the purpose of flushing the Hooghly River to make it free from silt and therefore keep the port of Calcutta operational and also to meet the demand from Kolkata for industrial and domestic use, and for irrigation purposes in other parts of West Bengal. 
  3. Border Issue:  India and Bangladesh have a 2,979 km land border and 1,116 km of the riverine boundary. Due to the porous border, there is rampant smuggling, trafficking in arms, drugs and people.
  4. Illegal  Immigration / NRC Issue:   Historically people of Bangladesh have been moving into the region of Brahmaputra valley due to the lack of habitable and arable land in Bangladesh. India perceives this movement as illegal immigration into Indian territory. According to the NRC draft, 40 lakh people living in (just) Assam are Bangladeshis. India’s initiation of the National Registration of Citizenship and Citizen Amendment Act has ignited popular resentment in Bangladesh. 
  5. Chakma Refugee Issue: The Chakmas and Hajongs living in the Chittagong Hill Tracts fled erstwhile East Pakistan in 1964-65 since they lost their land to the development of the Kaptai Dam. In addition, they also faced religious persecution as they were non-Muslims and did not speak Bengali. They eventually sought asylum in India. The Indian government set up relief camps in Arunachal Pradesh and a majority of them continue to live there even after five decades. According to the 2011 census, 47,471 Chakmas live in Arunachal Pradesh alone.
  6. Transit  Rights  –  India wants transit rights to develop its North-East but Bangladeshis see it as an infringement of its sovereignty.
  7. Security  Concerns –  Bangladesh provides safe havens to insurgents active in North East.
  8. Tipaimukh  Hydro-Electric  Power  Project built by India on the  Barak river at the junction of Mizoram, Assam and Manipur for electricity generation (capacity = 1500 MW) and irrigation. Bangladesh says that the dam will affect the water supply downstream and affect the flow of water in summers.
  9. Rohingya crisis: There are 11 lakh Rohingyas refugees in Bangladesh. India is providing financial help to Bangladesh via ‘Operation Insaniyat’ but Bangladesh expects India to put pressure on Myanmar for the repatriation of Rohingyas.
  10. Bangladesh uses China card to supplement its bargaining capacity against India. 
  11. Growing Islamic radicalisation in Bangladesh can destabilise the Indian Subcontinent. The Islamic NGOs of foreign nations have been promoting Wahhabism in Bangladesh. Pakistan has links with many such NGOs in Bangladesh which it uses to target India.
  12. India and Bangladesh compete in some sectors like Textile in the world market.

Conclusion: India should adopt the Gujral doctrine of unilateral support to its smaller neighbours to gain their confidence especially given China’s presence.

Things done by India

  • India has played the main role in Bangladesh’s Independence.
  • Land Boundary issue solved: In 2015 the enclaves of India and Bangladesh in each other’s countries were exchanged and strip maps were signed.   India lost some land and EEZ but accepted the agreement for sake of friendship.
  • Maritime Issue solved: India accepted the settlement of the maritime boundary arbitration between India and Bangladesh, as per the UNCLOS award in 2014 where India lost a large chunk of EEZ.
  • SAARC satellite launched by India provides free access to transponders to Bangladesh.
  • The Visa  regime in India has been liberalized for  Bangladeshi tourists and businesses
  • Border Haats have been developed on Bangladesh-Meghalaya & Bangladesh – Tripura border.
  • 130 km India-Bangladesh Friendship Pipeline Project has been constructed for transportation of petroleum to Bangladesh.
  • India is exporting 660 MW of electricity daily, will add 500 MW more.
  • India provides duty-free, quota-free access for Bangladeshi exports to India.
  • India also gives a line of credits and loans to Bangladesh and provides developmental aid.
  • Indian companies are investing in Bangladesh. Eg: Tata is establishing a three billion USD steel plant in Bangladesh.

Issue: Teesta Water Dispute

54 rivers pass from India to   Bangladesh. Being a lower riparian state, Bangladesh is affected by dams built on them.

About Teesta

Teesta Issue
  • Teesta originates in Sikkim & after passing through West Bengal, it enters Bangladesh
  • It is very important for irrigation on both sides.
  • The problem arises due to the severe shortage of water in the dry months.

Issue

  • India has built three Projects on Teesta like Gajoldoba Barrage (in Jalpaigudi) to divert water to other areas. As a result, Indian regions started to prosper but Bangladeshis are raising voice against this.
  • Radical Islamic Parties like Jamaat-i-Islami is using this issue to consolidate people against Sheikh Hasina.
  • In 2011,  Teesta Accord was drafted which proposed to divide Teesta waters between India & Bangladesh in the ratio 50:50%respectively. But, West Bengal Government is acting as an impediment to signing this Accord.

Importance of Teesta Accord for India

  • PM Hasina is an important ally of India who has adopted a zero-tolerance policy against Anti-Indian terror outfits and has helped India in containing the influence of China in the Bay of Bengal region. Signing the deal will consolidate her position in Bangladeshi polity.
  • Not signing such a deal give oxygen to radical elements. Jamiat-e-Islami is becoming powerful by portraying Sheikh Hasina as a puppet of India.

Bangladesh’s trust in India will increase if there are more water-sharing agreements.

Teesta & Indian Internal Politics

  • Teesta is the “lifeline” of north Bengal; ruling parties have never touched it for fear of losing the northern base. 

China Factor in Bangladesh 

  • Bangladesh is part of the One Belt One Road (OBOR project) & has also attended the OBOR Summits.
  • China is increasing its Defence Partnership with Bangladesh => recently Bangladesh procured two submarines from Beijing.
  • China is using Bangladesh as an outlet for Kunming Province by investing Chittagong Port Project).
  • Bangladesh is part of the BCIM project.
  • China is financing 25 energy projects in Bangladesh including  Bangladesh’s 2nd Nuclear power plant.
  • Bangabandhu-1, the first communication satellite of Bangladesh will be launched with Chinese help.
  • As part of its soft diplomacy, China is training Bangladeshi personnel, including Chinese language teachers.

But points in Indian favour

  • During the freedom struggle,  Communist China helped Pakistan and opposed the creation of Bangladesh.
  • China also cast a veto in the Security Council to block new Bangladesh’s entry into the United Nations.
  • The issue of China building dams on the Brahmaputra unilaterally impacts Bangladesh as well.

New Moore Island Issue

  • New Moore Island is a small uninhabited offshore sandbar landform in the Bay of Bengal, off the coast of the Ganges-Brahmaputra Delta region. It emerged in the Bay of Bengal in the aftermath of the Bhola cyclone in 1970 and disappeared at some later point. For nearly 30 years, India and Bangladesh have argued over control of a tiny rock island in the Bay of Bengal but later in 2010, the rising sea levels have resolved the dispute for them as the island was submerged.
  • New Moore Island, in the Sundarbans, has been completely submerged. Its disappearance has been confirmed by satellite imagery and sea patrols. Bangladesh was using the argument of extension of its continental shelf according to which it can demand up to 350 NM EEZ.  Although the island was uninhabited and there were no permanent settlements or stations located on it, both India and Bangladesh claimed sovereignty over it because of speculation over the existence of oil and natural gas in the region.
  • The Resolution: In the Permanent Court of Arbitration (PAC), the dispute was settled in July 2014 by a final verdict not open to appeal and in favour of Bangladesh. The Permanent Court of Arbitration (PCA) verdict awarded Bangladesh with 19,467 km2 out of 25,000 km2 disputed area with India in the Bay of Bengal. However, New Moore Island has fallen in India’s part of the Bay of Bengal.
New Moore Island Issue

Land Boundary Agreement

  • When India became independent, Sir Radcliffe demarcated the boundary between India and Pakistan as well as India and East Pakistan (now Bangladesh). While dividing the territory in East Pakistan, Radcliffe did not pay attention to small patches of land called ‘enclaves’.
  • These enclaves were, in the pre-independence era, called Chitmahals and they were used by the Raja of Cooch Behar and Maharaja of Rangpur as stakes in the game of chess. In 1947, kings were asked whether to join India or Pakistan (Cooch Bihar joined India and Rangpur joined Pakistan (now Bangladesh)). Hence, Feudal belonging of land in earlier times  is the genesis of the problem
Indo-Bangladesh Land Boundary Agreement

Timeline of Events

1958 Nehru-Noon Agreement to solve this issue but didn’t fructify because of deterioration in the situation.   
1974 – Awami League was in power.  Mujibur Rehman and Indira Gandhi went for Land Boundary Agreement.
– In this, physical exchange of enclaves was to take place.
– But this needed ratification by Parliament with Special Majority.
– Bangladesh ratified this but India failed.
 
1975 Mujibur Rehman was assassinated.  
1982 Until complete exchange takes place, India decided to give a corridor known as Tin Bagha Corridor on lease so that Bangladeshis can use that to come to their enclaves. It was opposed by most of the opposition parties.  
2011 & 2015   – 2011: Awami League came to power (Congress Government in India at that time ).
– India and Bangladesh agreed on a protocol that required Constitutional Amendment. This was passed in 2015 (100th Constitutional Amendment Act ).
– As per this protocol, India gave 111 enclaves and Bangladesh gave 51 enclaves. 
– People living in these enclaves were given the following options
1. They can choose to stay back and acquire new citizenship status.
2. Or can leave the enclave and go back to the country whose citizenship they have.  

Potentials & prospects

  • North-East India, Bangladesh & Myanmar should create a tourist circuit.
  • Bangladesh is an electricity deficient country.  The hydropower potential of northeastern states and  Bhutan can be harnessed to satisfy the need of Bangladesh. 
  • India can jointly develop Bangladeshi ports  (like Ashuganj)  to connect them with our northeast.
  • BIMSTEC  and  SAARC  have opened up avenues for the multilateral exchange of goods and services.
  • India and Bangladesh can cooperate on climate change as West Bengal and Bangladesh are low lying areas and will face large scale submergence of land due to ocean level rise.

India-Pakistan Relations

by

India-Pakistan Relations

This article deals with ‘India-Pakistan Relations.’ This is part of our series on ‘International Relations’, which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Brief History

Common history

  • Pakistan was part of India before 1947. 
  • Pakistan was formed based on the flawed Two Nation Theory. 

J&K Conflict

  • Post-independence, one of the first issues faced by India and Pakistan was the accession of Kashmir. Pakistani Army, under the guise of Tribals, attacked Kashmir. But Maharaja of Kashmir signed ‘Instrument of Accession’ with India. As a result, Indian forces were airlifted to Kashmir, culminating in the creation of Pakistani Occupied Kashmir and the Indian state of Jammu and Kashmir. Since then, J&K has remained the core issue between India & Pakistan. 

Indo-Pakistan Wars

In the subsequent period, India and Pakistan have fought three wars 

  • War of 1965: India lost to China in 1962, which encouraged Pakistan to take away Kashmir from India via force. But the 1965 war was a military stalemate, and USSR brokered peace between India and Pakistan via Tashkent Agreement. 
  • War of 1971: In December 1970, Pakistan held a general election in which Awami League based in East-Pakistan (led by Sheikh Mujibur Rehman) won the election. The PPP and Awami League failed to reach a power-sharing agreement, and consequently, Awami League supporters in East Pakistan initiated a massive protest to seek autonomy. The Pakistani Army began to suppress the Bengalis in East Pakistan, due to which they began to leave their country and take refuge in India. India’s R&AW saw it as an opportunity to break East Pakistan away from West Pakistan’s control. The R&AW began to train and support the Mukti Bahini movement. Witnessing renewed unrest, the Pakistani Military launched a strike on India in North India. India perceived the attack as an attack on the sovereignty and decided to retaliate militarily. The Indian forces entered deep inside East Pakistan and captured around 90,000 Prisoners of War (POW). Bangladesh was finally born out of the conflict. The crushing defeat of 1971 came as a big blow to Pakistan. 
  • Kargil War of 1999: India fought a brief but bitter conflict with Pakistani-backed forces when they occupied the positions on the Indian side of Line of Control (LOC) in operation code-named as Koh-e-Paima. The plan was to control the heights and push mujahideens into the valley to create instability.

Cross border Terrorism

  • Most of the terrorist attacks in India have their origin in Pakistan.
  • India has been a victim of terrorism several times 
    • 2001: attack on Indian Parliament 
    • 2008: Mumbai attacks 
    • 2016: Pathankot Airbase Attack
    • 2016: Uri attack on Military base 
    • 2019: Pulwama Attack
  • These attacks have seriously impacted India’s relations with Pakistan. 

Present stalemate in talks

  • India has consistently repeated that Talks cannot resume until Pakistan actually cracks down on state-funded terrorist organizations in the last years. This boycott includes suspension of trade and refusal to attend meetings hosted by Pakistan (including SAARC meetings).  
  • Pakistan has also used various international and regional platforms to raise its voice over the Kashmir issue and the revocation of Article 370 by India in August 2019. 

Timeline

1947 As part of its pullout from the Indian subcontinent, Britain divided it into secular (but mainly Hindu) India and Muslim Pakistan on August 15 and 14.
1947/48 The first India-Pakistan war over Kashmir was fought after armed tribesmen (Lashkars) from Pakistan’s North-West Frontier Province (now called Khyber-Pakhtunkhwa) invaded the disputed territory in October 1947.
1954 The state’s constituent assembly ratified the accession of Jammu and Kashmir to India.
1963 Following the 1962 Sino-Indian war, the foreign ministers of India and Pakistan – Swaran Singh and Zulfiqar Ali Bhutto – held talks under the auspices of the British and America regarding the Kashmir dispute.
1964 Following the failure of the 1963 talks, Pakistan referred the Kashmir case to the UN Security Council.
1965 India and Pakistan fought their second war.
1966 On January 10, 1966, Indian Prime Minister Lal Bahadur Shastri and Pakistani President Ayub Khan signed an agreement at Tashkent (now in Uzbekistan), agreeing to withdraw to pre-August lines.
1971 India and Pakistan went to war a third time over East Pakistan.
1972 Pakistani Prime Minister Zulfikar Ali Bhutto and Indian Prime Minister Indira Gandhi signed an agreement in  Shimla.
1974 The Kashmiri state government affirmed that the state “is a constituent unit of the Union of India”. However, Pakistan rejected the accord with the Indian government.
1988 The two countries signed an agreement that neither side would attack the other’s nuclear installations or facilities.
1989 Armed resistance in the Kashmir valley began.
1998 India detonated five nuclear devices at Pokhran. Pakistan responds by detonating six nuclear devices in the Chaghai Hills.
1999 Indian Prime Minister Atal Bihari Vajpayee met with Nawaz Sharif in Lahore. Kargil war was an armed conflict between India and Pakistan later in the same year.
2001 Tensions along the Line of Control remained high, with 38 people killed in an attack on the Kashmiri assembly in Srinagar.
2007 On February 18, the train service between India and Pakistan was bombed near Panipat. Sixty-Eight people were killed. (Samjhauta Express)
2008 Pakistani terrorists attacked Mumbai including Taj Hotel killing 166 people.
2012 In November, India executes Pakistani national Kasab, the lone survivor of a fighter squad that killed 166 people in a rampage through the financial capital Mumbai in 2008, hanging him just days before the fourth anniversary of the attack.
2016 In September, India launched “surgical strikes” on terrorist units in Pakistan-occupied Kashmir, less than two weeks after an attack on an Indian army base left 19 soldiers dead.
2019 In the early hours of February 26, India conducts air attacks against what it calls Pakistan-based rebel group Jaish-e-Mohammad (JeM)’s “biggest training camp”, killing “a very large number of terrorists”.
2020-21 Following the abrogation of Article 370 in J&K, Pakistan has been violating ceasefire violations.

Important Issues

Issue 1: Issues related to Indus Water Treaty,1960

Indus Water treaty

  • It was signed in 1960.
  • It was brokered by World Bank.

Treaty allocates the water in the following manner:-

Eastern Rivers

The water of the following rivers belongs to India exclusively:-
1. Sutlej
2. Ravi
3. Beas
Western Rivers

The water of the following rivers belongs to Pakistan.
1. Chenab
2. Jhelum
3. Indus
However, India can make limited use and build run of the river hydro Projects to generate hydroelectricity. Pakistan has the right to raise objections on the Indian projects if Pakistan is not satisfied with the design of Indian projects on these rivers. 
Indus Water treaty
  • Treaty also established a ‘Permanent Indus Commission (PIC)‘ with each country having one commissioner to share data and cooperate in all the matters related to the treaty. 
  • It is said to be the most successful water treaty globally as it has survived the India-Pakistan wars. 

Should India (unilaterally) review Indus Water Treaty?

Why in the news?

  • Pakistan is stopping India from doing projects like Kishanganga Hydro-Electricity Project (HEP) and taking India to the International Court of Arbitration on minor grounds.
  • Pakistan is sponsoring terrorist attacks in India. In such a situation, the Indian government believes that treaties signed under goodwill shouldn’t be obliged.

Yes, India should review the treaty

  • In 1960, India gave the most genuine deal to a lower riparian state, hoping that Pakistan would ensure peace. But Pakistan didn’t keep its end of the bargain.
  • Kashmir has been suffering because they cant utilize the waters of three rivers, i.e. Indus, Jhelum and Chenab. Even Kashmir Assembly has passed a resolution to revoke the Indus Treaty twice.
  • Given the climate change and melting of the glaciers, a review of the treaty is the need of the hour. 

Other points to keep in mind

  • It can worsen India’s terror problems as Pakistan uses Indian control over water to recruit terrorists & justify the fight for Kashmir to control Indus.  
  • India is a lower riparian state in many rivers like Satluj, Brahmaputra etc. China can stop water & India will not have a moral high ground to oppose it.
  • Effect on India’s other lower riparian state: The abrogation of the Indus Water Treaty will send an alarming signal to friendly lower riparian countries such as Bangladesh, which receives around 90% water from rivers passing through India. 
  • Indus Water Treaty was signed under the guarantee of the World Bank. India still needs funds from World Bank.
  • It will help Pakistan to Internationalize the Kashmir Issue.
  • Legally, abrogating the treaty isn’t workable. There is no clause in the Indus Water Treaty regarding one party unilaterally denouncing the treaty. Treaty can be modified when both countries ratify the modifications. 
  • Brahma Chellaney (expert on International Water Affairs) believes that future wars in Asia could be driven by issues related to water. The Abrogation of the Indus Water Treaty has the potential to result in such conflict. 

Side Note: Indian Projects on Tributaries of Indus which were contested by Pakistan

Project River
Kishanganga Project – Kishenganga Project was constructed by India on the Jhelum river.
– It is a run-of-the-river project designed to divert the water of the Kishanganga River to a power plant in the Jhelum River basin. In 2010, Pakistan appealed to the International Court of Justice against the project.
– In the final award of 2013, ICJ has allowed India to complete the construction of the Kishanganga dam with minor modifications.
Wullar Barrage / Tulbul Project 1985 – India constructed barrage on Jhelum river near Wullar lake.
– Pakistan saw it as a violation of the Indus water treaty because of less water flow in the river Jhelum.  
Salal Dam – The issue emerged in 1978 when India constructed Salal Dam 64 kilometres away from the Indo-Pak border on the Chenab River. Pakistan objected to the construction of the Salal Dam. 
– In 1978, after negotiations, India decided to lower the height of the Salal Dam and assured Pakistan that the dam would be used only for the generation of power. 
Ratle Dam Chenab 
Pakal Dul Dam Chenab
Miyar Dam Chenab
Lower Kalnai Dam Chenab
Baglihar   Dam – In 2005, Pakistan objected to India’s 450 Megawatt Baglihar Dam constructed on the Chenab River.
– A neutral expert was appointed for arbitration. The verdict was announced in 2011 in favour of India. 

Issue 2: Kashmir Issue

  • Kashmir issue involves three contesting nationalisms, i.e. Indian, Pakistani & Kashmir.  
  • At the time of independence, a Princely State could either join India or Pakistan, as was announced in the provision by Lord Mountbatten. Kashmir posed some difficulty because it was a Muslim-majority state ruled by a Hindu monarch, Maharaja Hari Singh. Initially, Hari Singh was reluctant to join either India or Pakistan. Meanwhile, Pakistan launched a campaign by sending its troops disguised as tribesmen to annexe the Kashmir state forcefully. He approached Delhi and signed Instrument of Accession acceding Kashmir to India, after which Indian forces landed in Kashmir to stop falling the whole Kashmir valley into the hands of invaders. 
  • Under the influence of Mountbatten, JL Nehru took the issue of J&K to the UN for dispute resolution. It was decided in the UN that two states would maintain the status quo, i.e. Pakistani infiltrators who came to Kashmir would withdraw & then a plebiscite would take place. India alleged that the stalemate over Kashmir could not end. A plebiscite could not happen as Pakistan did not withdraw its troops from the PoK, which was a necessary condition for restoring peace leading to a future plebiscite.
  • Later it became part of Cold war politics. This issue was regularly supported by the US because Pakistan was part of the capitalist block & India stalled all such moves with the help of the veto power of Russia. 
  • In the Shimla Agreement of 1972, it was decided that India & Pakistan would resolve this issue bilaterally & any third power wouldn’t be involved.        
  • The situation deteriorated at the end of the 1980s and the start of the 1990s. The reasons for this were as follows 
    1. In 1989, as Soviet rule ended, Pakistan’s ISI started developing confidence that a successfully trained Mujahedeen campaign could also be launched in Kashmir. Hence, they started a proxy war against India by weaponizing & training militants. 
    2. In the 1980s, various social and religious organizations that wanted to resolve the Kashmir issue peacefully formed the Muslim United Front (MUF). They participated in the 1987 elections but were badly defeated. The MUF alleged that the elections were rigged, after which the MUF candidate Mohammad Yusuf Shah was imprisoned. As the MUF cadres were suppressed, they began to cross over to Pakistan for support, where ISI started to train them with arms and ammunition. The JKLF militants attacked a Hindu Kashmiri Pandit, Tika Lal Taploo, in 1989 and asserted that Kashmiri Pandits should leave the valley immediately, resulting in the mass exodus of Kashmiri Pandits.
  • From 1999 to 2002, the ISI used Lashkar-e-Taiba and Jaish-e-Mohammad in a ‘fidayeen phase‘ of the campaign. The idea was to attack army camps, zero down on targets, terrorize the Kashmiri population and cause a psychological blow to the Indian forces, Indian people and the Indian state.  
  • Kashmiri Intifada: Burhan Wani was the commander of Hizb-ul-Mujahedeen of South Kashmir. On July 8, 2016, the Indian armed forces killed Wani in an encounter. His death led to an upsurge in the valley. Lakhs of people attended his funeral. The ISI, through social media, instigated the youth to resort to stone-pelting against the Indian forces. Stone pelting in 2016-17 has emerged as a cult in Kashmir.  
  • Repealing Article 370: On August 5, 2019, the President of India gave assent to the constitutional amendment, which abolished Article 370 of the Indian constitution. It led to a major upsurge in the state. 

Gilgit-Baltistan Issue

  • Gilgit Baltistan was part of the erstwhile princely state of Jammu and Kashmir. It has been under Pakistan’s control since 1947, following the invasion of Kashmir by tribal militias and the Pakistan army.
  • In 1949, it was renamed as ‘Northern Areas of Pakistan’ and put under the direct control of the Pakistan federal government.
  • In 2020, it was made the fifth province of Pakistan. 
Gilgit-Baltistan Issue

India’s stand on Gilgit-Baltistan

  • India believes that the entire Union Territories of Jammu and Kashmir and Ladakh, including areas of Gilgit and Baltistan, are “an integral part of India”.
  • Before this move, Pakistan’s federal institutions had maintained that Gilgit-Baltistan is an UN-disputed area. Its residents cannot be declared citizens of Pakistan until India and Pakistan resolve the issue of Jammu and Kashmir.

Importance of Gilgit-Baltistan

  • Strategic Location: Gilgit Baltistan lies at the intersection of the Indian Subcontinent, Central Asia and China.
  • Large Territory: The territory of Gilgit Baltistan is more than five times larger than Pakistan occupied Kashmir. It consists of two ethno-geographically distinct regions: Baltistan, which was part of Ladakh, and Gilgit.
  • Water and Energy Security: Gilgit Baltistan is also significant due to its water and energy resources. Before entering Pakistan, the Indus River passes through it. Important glaciers like Siachen Glacier are located here. The hydroelectric potential of the Indus River makes it vital for energy security as well.
  • Chinese Interference: China–Pakistan Economic Corridor (CPEC) passes through Gilgit Baltistan, and China is building large-scale infrastructure in this area.

Issue 3: Terrorism

  • Almost all terror attacks in India originate from Pakistan. For example 
    • 2001: Parliament Attack 
    • 2008: Attack in Mumbai
    • 2016: Pathankot Airbase Attack  
    • 2016: Uri Attack
    • 2019: 44 CRPF men killed in an IED attack in Pulwama 
  • Terrorist groups which attack India are active in Pakistan & terrorists are trained on Pakistani soil. E.g., Jaish-e-Mohammad, Hizb-ul-Mujahidin etc., operates from safe havens in Pakistan. 

Why Pakistan is using terrorism as tool ?

  • The realisation that Pakistan can’t defeat India in a conventional war. As a result, the Deep State in Pakistan has nurtured Islamic Radical Groups (Mujahideens) as strategic assets. 
  • After the success of Afghan Mujahideens against the USSR, the Pakistani Deep State started to use it as a strategy against India in Kashmir.  
  • It is part of ISI and Pakistan Army’s ‘Bleeding India by Thousand Cuts‘ approach.
  • Whenever the governments of two nations have tried to indulge in confidence-building measures (Bus Diplomacy, Sports, Summits, Kartarpur Corridor), the Pakistani deep state has used cross-border terror activities to derail such Indo-Pak dialogue.

What should be India’s response?

India is responding in a very responsible way and has always stressed on making this area terrorism free. India believes that all the nations in Asia must ensure that their lands are not used for terrorist activities.

  • Diplomatic Isolation of Pakistan: But Pakistan hasn’t responded to these urges. Hence, India should expose Pakistan on various International and regional platforms and isolate Pakistan on the international front.
  • Use Financial Action Task Force (FATF) to blacklist Pakistan (Pakistan is already in Greylist). 
  • Mossad Way: India should carry out covert operations inside Pakistan to kill high-value human targets.
  • Conducting Surgical Strikes on the training camps in Pakistan to neutralise the terrorists (as was conducted by the Indian army post-Uri attack). 
  • Pressurising China to stop giving unconditional support to Pakistan.
  • Support Balochis and other sub-entities in their fight for independence to bleed Pakistan as a counter-strategy. 
  • Economic Efforts: Indian government has already withdrawn the “Most Favoured Nation” or MFN status accorded to Pakistan to punish it for supporting terrorism in India. 
  • India should take a leading role in the process to adopt a universal definition of terrorism and steps needed to tackle it under the Comprehensive Convention on International Terrorism (CCIT).

Issue 4: Siachin Glacier

India-Pakistan Relationship

Importance of Siachen glacier

  • It is the largest source of fresh water in the Indian sub-continent.
  • Siachin is the source of the Nubra river that feeds the mighty Indus.
  • Siachen is near Karakoram pass, forming almost a triangle with India, China & Pakistani Occupied Kashmir.

Disagreement

  • Line of Control in J&K is as per the Shimla Agreement of 1972. But the boundary was specified only till NJ-9842, from where Siachen starts. Both countries claim Siachin belongs to it.
  • The matter was non-controversial till the 1980s. In 1984, the Indian R&AW realized that Pakistan Army had purchased specialized clothing for very low temperatures from a supplier in London. The R&AW alerted the Indian army, and during one of the operations, the military found a Pakistani expedition team in a place near Siachen. Before the Pakistani expedition could resort to any adventurism, the Indian army launched Operation Meghdoot, and Indian troops captured it. Now India controls the heights.

Should Siachen be demilitarised?

Yes, it should be demilitarised

  • India lost around a thousand army personnel due to weather-related casualties, and ₹7,500 crore was spent on military operations in the last 4 years. 
  • At Siachen glacier, temperatures dip to as low as – 45° C, making it the world’s highest & the most challenging battlefield.  
  • Due to global warming, glaciers are becoming very unstable. As a result frequency of Avalanches has increased. 
  • Demilitarization would increase trust and confidence between India and Pakistan.

No, it shouldn’t be demilitarised

Siachen is strategically important to India for a number of reasons such as 

  1. Saltoro Ridge at Siachen overlooks the entire region and provides an advantage of height.
  2. Control of the area prevents Pakistani and Chinese troops from linking up.
  3. Pakistan’s control over Siachin will make Leh and Kargil vulnerable as control over Siachin will give Pakistan the ability to oversee the Ladakh region and the crucial Leh-Srinagar highway.

Way Forward : India can demilitarise the Siachin Glacier provided that present situation is recorded and Pakistan assures to maintain status quo .

Issue 5: Sir Creek Issue

Sir Creek is a 96 km strip of water that is disputed between India & Pakistan. Originally named Ban Ganga, Sir Creek is named after a British representative. The Creek opens up in the Arabian Sea and roughly divides the Kutch region of Gujarat from the Sindh Province of Pakistan. The dispute lies in interpreting the maritime boundary line between Kutch and Sindh.

Sir Creek Issue
  • The dispute lies in the interpretation of the maritime line between Pakistan & India.
  • Pakistan lays claim to the entire creek as per the Sind Government Resolution of 1914 signed between then Government of Sindh and Rao Maharaj of Kutch. 
  • India sticks to its position that the boundary lies mid-channel, as depicted in another map drawn in 1925. Further, India supports its stance by citing the Thalweg Doctrine in International law.   
  • The issue involves losing a vast amount of Exclusive Economic Zone (EEZ) rich with gas and mineral deposits. 

Problems arising due to unresolved dispute

  • A maritime boundary isn’t properly demarcated, which creates confusion for fishermen. Their boats cross boundaries & they end up being arrested by the other side.
  • Creates security problems as well like 
    • Terrorists are frequently using this route to enter India.
    • Even 2008 Mumbai Attackers used this route.
  • Cartels (drugs & illegal weapons etc.) transact their business in the disputed waters so that they are beyond the reach of both Indian and Pakistani agencies.
  • It creates problems in exploiting resources as the region is rich in oil and gas below the sea bed.

Areas of Engagement

The focus should be on low hanging fruits for building amicable Indo-Pak relations

  • People to People contact by opening religious tourism to places like Kartarpur Sahib Nankana Sahib (birthplace of Guru Nanak Dev ji), Katas Raj Temple (Hindu temple in Pakistan), Ajmer Sharif (Sufi shrine in India) etc.
  • Trade and Commerce: India and Pakistan collectively constitute 90% of the region’s GDP, and peace between the two states could yield a 405% rise in trade at the bilateral level.
  • Electric grid: Pakistan is an electricity deficit while India has become surplus. 
  • Medical tourism
  • Energy pipeline: TAPI, IPI pipelines etc.
  • Social networking platforms have led people from the two states to establish a connection.
  • Bollywood and Pollywood: Hindi and Punjabi movies have a huge demand in Pakistan. 

It is advised that both countries shift their focus from geopolitics to geoeconomics to boost their economies and bring millions out of poverty. Both countries should remove their preconditions to start the talks. 

India-US Relations

by
India-US Relations

India-US Relations

This article deals with ‘India-US Relations.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

History of India-US relations

Before  Independence

  • In the beginning, due to British control over India, the communication between India and the US at an independent level was impossible. Although Indians in the USA started Ghadar Movement and raised voices for the independence of their motherland, they had to wait till World War 2 for the US to pressure Britain to give the right to self-determination to Indians. Later, US President Roosevelt argued that the Atlantic Charter, which advocated the right to self-determination, applies to India as well, in contrast to Churchill’s view that the right to self-determination applies exclusively for Nazi areas won in the war. 
  • Apart from that, the relationship between the people of India and the USA was developing, corroborated by the fact that
    1. A large number of American Missionaries were active in India. 
    2. Rabindranath Tagore, Lala Lajpat Rai and Swami Vivekananda visited the USA.  
    3. Ambedkar studied at Columbia University from 1912-16. 

Initial Years

  • Soon after independence, India developed amicable relations with the USA. The Indian leaders acknowledged the positive role played by America in exerting pressure on the British Government to expedite the grant of independence to India. The democratic ideals of America fascinated the Indian leaders. 
  • The US also made available to India vast quantities of food grains to tide over the food shortage problem through the PL-480  Scheme.
  • IIT Kanpur was established with US help. 
  • Norman Borlaug & the Ford Foundation of the USA played an important role in introducing the Green Revolution in India.  
  • During the Indo-China conflict of 1962, the US-supported India and even decided to supply military equipment and weapons.  

Cold War Period

  • The emergence of free India coincided with the emergence of the United States and the Soviet Union as two Super Powers. With faith in their respective ideologies and way of life, both these powers looked suspiciously towards each other and set up military blocs like NATO, CENTO, SEATO, ANZUS, and the Warsaw Pact to meet the possible threat from the other. When India gained independence, there was the option of joining either of the two power blocs. However, India decided to keep away from these blocs and follow an independent foreign policy.
  • A major shift occurred when Indira Gandhi became the Prime Minister in January 1966. Her first foreign policy move was to visit the US in March 1966. She was received warmly by President Johnson. In response, India softened its stand on the Vietnam war and devalued its currency (rupee). But gradually, strains started to develop due to America’s consistent support to Pakistan on the Kashmir issue, its decision to provide shelter to the Naga rebel leader Phizo in the US in 1967 and US arms supplies to Pakistan. In return, India supported the Arabs in West Asia in their war against Israel and hardened its stance on Vietnam.
  • The relationship became more bitter during the war of 1971. Pakistan received massive military supplies from the US even before the Bangladesh crisis, including 100 tanks of M‐47 category, B‐57 bomber aircraft and other lethal weapons. Meanwhile, India signed the Indo‐Soviet Treaty of Friendship and Cooperation to counter the US-Pakistan axis. During the 1971 war, the US-supported Pakistan and dispatched the aircraft carrier  USS Enterprise to the Indian Ocean to help Pakistan in East Pakistan. 

End of Cold War

  • The Soviet Union collapsed in 1991. Like the rest of the world, India wasn’t prepared for this development. With the disintegration of the Soviet Union and the emergence of the US as the sole Super Power, India’s relations with the United States have undergone a significant shift.
  • After the disintegration of USSR, the closer cooperation and integration with the West became Russia’s top priority. As Russia and America moved closer, Russia neglected its traditional relations with long‐standing friends like India. India’s trade with Russia came down from 16% of its exports in 1989-90 to 9% in 1991-91. Russia also refused to supply cryogenic technology to India under US pressure.

Post-1990

  • India suffered from the Balance of Payment crisis due to the Persian Gulf War, which led to an exponential rise in the price of oil and the repatriation of Indian workers. IMF loan saved the Balance of Payment crisis, but it came with the condition of SAP. SAP (Structural Adjustment Plan) consisted of disinvestment, privatization, currency convertibility, and reducing tariff & subsidies in agriculture. The US government strongly supported India’s case for financial assistance from the institutions like the World Bank and IMF.  
  • The reasons behind the change in relations are
    1. Strategic Reason: The US is trying to contain hegemonic China in the Asia-Pacific region. India can prove a vital ally in this pursuit.
    2. Economic Reason: India’s 1.2 billion population can be an important market for US products.  

Issue 1: Indo – US Trade Issues

Indo - US Relations

Trade Imbalance

  • Trade between India and US $ 120 billion (2021).
  • US is the largest Trade Partner of India, while India is the 9th largest trade partner of the USA. 
  • But Trade Balance is in India’s favour, with India having a current surplus account. To bridge this gap, India has started to buy the following from the USA.
    • Gas and Crude Oil 
    • Commercial Aircrafts
    • Military hardware
  • Indo-US Trade is well below its potential. For example, South Korean Trade with the USA is 1.5 times that of India, although the South Korean GDP is 40% lesser than India.

CAATSA Issue

  • CAATSA, i.e. Countering American Adversaries through Trade Sanctions Act, is a US act that aims to counter the aggression by Iran, Russia and North Korea. According to the act’s provisions, the USA can impose sanctions on any country doing trade with these nations. 
  • It is problematic for India as
    1. Wrt Russia: India imports defence products like S-400, Kamov Helicopters etc. and has joint projects like Brahmos with Russia.
    2. Wrt Iran: India used to import vast amounts of Irani oil, which was impacted due to CAATSA. 

Generalized System of Preference (GSP) Issue

  • GSP was started in 1974. 
  • It provides opportunities to the world’s poorest and developing countries to use trade to climb out of poverty and grow.
  • India was getting the benefits of this scheme. But, under the Trump regime, the GSP of 94 products from India was removed by the USA. It impacted Indian exports to the USA.
  • In return, India imposed retaliatory tariffs on US imports like almonds, apples etc. 

India-US Solar Dispute

  • India launched National Solar Mission in 2011 to increase India’s solar electricity capacity to 100 GW. 
  • Under the scheme, the government offered financial support of ₹1 Crore / MW if the orders were placed with domestic (/Indian) manufacturers. 
  • The US took the matter to WTO in 2013, alleging this to be violative of TRIMs. India lost the case in Dec 2017 and agreed to change rules and procedures. 
  • Present Issue: India says they have implemented the order, but the US disagrees. 

Digital companies

US complains that the Indian government’s policies to restrict companies from sending personal data of Indian citizens outside India act as a significant barrier to digital trade for US companies.

Intellectual property rights

  • US concerns include software piracy, film and music, and weak patent protection in India. Due to these issues, India remained on the Priority Watch List of the U.S. 2021 “Special 301” report.
  • India amended the Patents act to recognize products rather than process patents to address these concerns.
  • The US has raised concerns about insufficient patent protections, restrictive standards for patents, and threats of compulsory licensing.

Dairy Industry Issue

  • US dairy products are banned in India on religious and cultural grounds. 
  • Reason: US dairy products are derived from cows that consume feed containing internal organs, blood and tissues of the animals of ruminant origin, while the cow in India is considered sacred and herbivore.
  • In 2015, the US proposed the permit entry of US dairy products with a ‘red dot’ (non-veg products). But India has not accepted the proposal. 

Harley Davidson Issue

  • The US demands duty cuts on bikes imported to India. 
  • In 2018 India reduced the import duty from 75% to 50%, but the US wants it to be zero. 

WTO disputes between India-US

India and US are fighting following disputes at Dispute Settlement Mechanism  under the WTO

  1. Poultry and poultry products from the US
  2. Countervailing duties on Indian steel products.
  3. The subsidy provided to Indian solar cells and modules under the provisions of the National Solar Mission
  4. Indian schemes to promote its exports, such as MEIS and SEIS.
  5. Renewable Energy Programs of the USA.
  6. US measures concerning non-immigrant visas
  7. The increased tariff on steel and aluminium. 

Issue 2: Defence Cooperation

#2.1 US foundational Defence Pacts

  • The US considers 4 defence pacts as the foundation of her defence cooperation. These include 
    1. General Security of Military Information Agreement (GSOMIA) – Signed in 2002.
    2. Logistics Support (LEMOA) – Signed in 2016.
    3. Communication (COMCASA) – Signed in 2018 .
    4. Basic Exchange & Cooperation Agreement (BECA) – Signed in Oct 2020. 
  • The USA has signed all of them with India. 
GSOMIA Signed in 2002 COMCASA Signed in 2018 LEMOA Signed in 2016 BECA Signed in 2020

GSOMIA

  • GSOMIA = General Security of Military Information Agreement.
  • It was signed in 2002.
  • GSOMIA facilitates cooperation in intelligence sharing between the USA and the signatory.

LEMOA

  • LEMOA = Logistics Exchange Memorandum of Agreement (LEMOA).
  • India signed it in 2016. 
  • Under this agreement, US and Indian forces can access each other’s resources for logistical purposes. 

COMCASA   

  • COMCASA = Communication Compatibility & Security Agreement.
  • India signed it in 2018. 
  • Pentagon signs this agreement before transferring its sensitive communication and IT technology used in US planes and drones to any other country.

BECA

  • BECA = Basic Exchange and Cooperation Agreement.
  • India signed it in October 2020. 
  • With this, the US and India can share highly classified geospatial and satellite data.

Importance of foundational agreements

  • It signals the affirmation of the mutual trust between India and the USA.
  • Strengthen India’s conventional offensive and defensive capacity as India can access sensitive data and buy advanced US weapons to get an edge over its rivals, namely Pakistan and China. 
  • It will result in close cooperation between Indian and US armed forces, especially to contain Chinese expansionism. 
  • Apart from the military, these agreements will also help the US and Indian armed forces to cooperate in providing humanitarian assistance during disasters.

Issues with these foundational agreements

  • Russia Factor: After signing these agreements, the USA wants India to buy American weapons and move away from Russia. Close cooperation between India and Russia can expose its technology to Russians.
  • It imperils India’s policy of Strategic Autonomy by unduly binding India to the US systems and procedures.
  • More favorable to the US: These agreements are more favorable to the US. The provisions of these agreements have been formulated by US policymakers giving precedence to US interests.

But India remains reluctant to become fully plugged into US defence systems due to India’s longstanding commitment to non-alignment (and its post-Cold War variants of strategic autonomy/ omni- or multi-alignment). Moreover, India’s preference for India to be a pole in a multipolar world is also not entirely in concordance with an American view that does not see the benefits of multipolarity in the same way.

#2.2 Weapon Trade

  • The USA has become the second-largest arms supplier to India. 
  • During Barack Obama’s term, the US recognised India as a “Major Defence Partner (becoming the only non-NATO member to get this tag). 
  • Later in 2018, India was moved to Strategic Trade Authorisation (STA)-1 list. It gives license-free access to almost 90% of dual-use technology to India. 

Buying Weapons

  • The US has become 2nd biggest armaments supplier to India.
  • India has bought or has signed deals to buy the following weapons.
Aeroplanes 1. Boeing C17 Globemaster military transport
2. C – 130 J Super Hercules
3. P8-I Poseidon Maritime Patrol  
UAV 1. India has bought the  Guardian Drones (naval & unarmed version of Predator UAVs)     
Helicopters 1. Romeo MH-60 Seahawk (it is the most advanced naval helicopter which can hunt submarines)
2. Chinook
3. Apache  
Howitzer 1. M-777 Ultralight Howitzer
C-17 Globemaster (Transport) Guardian (Reconnaissance) Super Hercules (Transport) civilspedia.com Chinook (Transport) P8-I Poseidon (Maritime Patrol) Apache (Attack)

#2.3 Military Exercises and Alliances

Malabar Exercise

  • Trilateral Naval Exercise between India, US and Japan (Note: Australia is not part of this). 

Quad

  • The ‘Quad’ consists of India, the United States, Japan and Australia
  • Main Aim: To secure Indo-Pacific.

#2.4 Other aspects

US Presence in the Indian Ocean

  • Diego Garcia in the Indian Ocean is the Military base of the US army.
  • India doesn’t like an influential nation in her footsteps as it challenges the Indian position of ‘net security provider’ in the Indian ocean.

Fight against terror

  • The US frequently helps India in its war against terror. E.g.:
    • US played the main role in listing Jaish-e-Mohammed leader Masood Azhar as an international terrorist by the UN 
    • US is also helping India to control Pakistani terrorism using FATF.

Issues in India-US defence relations

  • The difference in core goals of defence engagement: From the Indian perspective, the core goal of defence engagement with the US is that the US should assist the Indian defence industry in manufacturing technology in India. For the US, its defence diplomacy with India is to establish a long-term relationship that would allow both India and the US to jointly address contingencies in the region that may arise in the future. 
  • US equipment is costly. India wants to deal on the basis of fixed costs. On the other hand, suppliers favour’ life cycle costs’-based bidding asserting that they offer expensive equipment, but the costs come down when it comes to contracts for long-term maintenance.

Issue 3: Nuclear Diplomacy in the US- India relations 

Timeline of Indo-US Nuclear Deal
  • 1974: India experimented with the Nuclear Explosion named Pokharan-1. The USA opposed it. 
  • 1978: Nuclear Non-Proliferation Treaty was signed under the leadership of the USA, in which India was not accepted as a nuclear state. India resented NPT, terming it as Nuclear Apartheid. 
  • 1998: Nuclear Test (Pokharan-2) was conducted, making India a nuclear power. In retaliation, the US imposed economic sanctions on India.  
  • 2000: Clinton’s visit to India marked the beginning of a new era, followed by Jaswant – Talbot Dialogue.
  • 2008: This process culminated in the Civil Nuclear Deal signed in 2008. 

Bush – Manmohan Civil Nuclear Deal

  • It was signed in 2008.
  • The main provisions of the agreement were
    1. India agreed to the separation of civil & military nuclear programs.
    2. India allowed inspection of the civilian program.
    3. India agreed to refrain from transferring nuclear enrichment and reprocessing technologies to states that do not have them.
    4. India agreed to adhere to the Missile Technology Control Regime and Nuclear Suppliers Group.
    5. In return, the US offered nuclear fuel & technology. The US also ensured supplies for the civilian program from the 44‐nation Nuclear Suppliers Group (NSG).

Issue 4: Indian diaspora in USA and H1-B Issue

  • India has a 4-million-plus strong diaspora in the USA, accounting for about 1% of the total population. It is the second-largest Asian community in the country.
  • Indian diaspora includes many professionals, business entrepreneurs and educationalists with increasing influence in society.  
  • Examples include
    1. Kamala Harris: US Vice-President
    2. Satya Nadella: Microsoft Head
    3. Sundar Pichai: Google Head
    4. Nikki Hellay: Seasoned politician who has held important positions like US Ambassador to UN.  
  • The Indian community has assimilated into their adopted country and is a catalyst to forge closer and stronger ties between India and the USA.

H1-B Visa Issue

About H1-B Visa

  • H1- B visa is a non-immigrant visa given by the US to skilled workers (technical or theoretical skill in the specialized field) for a specific period of time.
  • It was started in 1952 to attract quality workers from other countries.
  • Lottery System: US administration grants H1-B visas to 85,000 workers annually, of which 20,000 are reserved for those who have one of their Masters in the US. The process to select is completely random based on the Lottery System. 

H1-B Visa
H1-B Visa issue

Changes introduced by Trump

Trump introduced some changes in the H1-B visa regime to make companies hire US workers and give visas to highly expert workers. These changes were 

  1. The minimum salary to be considered eligible for an H1-B visa increased from $60,000 to $130,000 per annum.
  2. Spouse of H1-B visa holder can’t work in the USA.
  3. Preference to be given to students with US education for H1-B visas. 

These changes impact Indian interests because out of the 85,000 H1-B visas, approximately 70% are Indians. 

Other Cooperation

  • Space Cooperation: The two sides have had a long history of cooperation in the Civil Space arena. NASA and ISRO are cooperating on various projects. India also helps multiple US companies to launch their satellites at cheap rates. 

Other Irritants

  • Question of Human Rights: There have been profound differences between India and America on human rights. Various NGOs, including Amnesty International and Asia Watch, have raised voices against human rights violations in India and draconian acts like TADA. 
  • Religious Freedom: Various US Congress committees and NGOs such as Freedom House frequently comment on the status of religious freedom in India, which impinges Indian sovereignty and tarnishes the image of India in international forums.
  • Afghan Question: USA and India were not on the same page on the Afghan question. India was not in favour of handing over Afghanistan to the Taliban as it endangers security in India.