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GS Paper: India & Its Neighborhood – Relations

  • India-Srilanka Relations

    What’s the news?

    • Sri Lankan President Ranil Wickremesinghe made an official visit to India last month. It was his first trip to India since taking over as president of the Indian Ocean Island state. Wickremesinghe came to power amid social and political upheaval as Sri Lanka went through its worst economic crisis last year.

    Central idea

    • The recent visit of Sri Lankan President Ranil Wickremesinghe to New Delhi has brought about a series of significant bilateral agreements that hold the potential to fortify the Sri Lankan economy against the unprecedented economic shocks experienced last year. This visit has laid the foundation for numerous projects aimed at promoting connectivity and catalyzing prosperity under the umbrella of the India-Sri Lanka Partnership Vision.

    Significance of the Visit for Sri Lanka

    • Economic Recovery: The bilateral agreements inked during the visit focus on reinforcing Sri Lanka’s economy after the severe economic challenges of the past year. These agreements promise sector-specific solutions in energy, fuel, and forex management, which are crucial for stabilizing and revitalizing the economy.
    • Connectivity and Prosperity: The joint statement, titled ‘Promoting Connectivity, Catalyzing Prosperity,’ encapsulates the essence of the agreements. These initiatives aim to enhance connectivity through projects like the land bridge, maritime connections, and air travel. These endeavors are expected to promote regional trade and economic growth.
    • Energy Security: Agreements related to petroleum infrastructure, power grids, and hydrocarbon exploration are poised to address Sri Lanka’s energy security concerns. By ensuring a stable energy supply, these initiatives can safeguard against future economic shocks stemming from energy vulnerabilities.
    • Tourism and People-to-People Contacts: The commitment to bolster bilateral tourism and encourage people-to-people interactions between the two nations has the potential to foster cultural exchange, boost economic activity, and strengthen ties between citizens.
    • Ethnic Reconciliation: Acknowledging the ethnic issue in Sri Lanka and the commitment to implementing the 13th Amendment and holding Provincial Council Elections reflect India’s support for Sri Lanka’s pursuit of a peaceful and inclusive resolution to its internal challenges.

    Significance of the Visit for India

    • For India, President Wickremesinghe’s visit holds strategic importance, aligning with its ‘Neighbourhood First’ policy and broader regional objectives:
    • Economic Partnerships: The agreements signed during the visit open doors for Indian investments and economic engagement in Sri Lanka. These partnerships contribute to India’s economic growth and influence in the region.
    • Enhanced Connectivity: The connectivity initiatives outlined in the joint statement align with India’s efforts to strengthen regional connectivity, expand trade networks, and promote economic integration in the Indian Ocean region.
    • Energy Cooperation: Collaborative energy projects, such as petroleum pipelines and power grid interconnections, enable India to play a role in ensuring Sri Lanka’s energy security. This cooperation fosters goodwill and strengthens diplomatic ties.
    • Regional Balance: The visit allows India to counterbalance other regional players and maintain its strategic influence in the Indian Ocean. Strengthening ties with Sri Lanka is crucial for regional stability and security.
    • Cultural and People-to-People Exchanges: The commitment to promoting bilateral tourism and facilitating people-to-people contacts enhances India’s cultural diplomacy and strengthens the bond between the two countries.
    • Geostrategic Significance: Strengthening ties with Sri Lanka serves India’s interests in maintaining a strong presence in the Indian Ocean and countering China’s growing influence in the region.

    Outcomes of the visit

    1. Economic Agreements and Initiatives:
    • Bilateral agreements were signed to fortify Sri Lanka’s economy against economic shocks. These agreements encompass various sectors, including energy, fuel, and forex management.
    • Cooperation in economic development projects in the Trincomalee District was emphasized, aiming to elevate Trincomalee as a hub for industry and economic activities.
    1. Energy and Infrastructure Development:
    • Feasibility studies for a petroleum pipeline from southern India to Sri Lanka were agreed upon, focusing on ensuring a reliable supply of energy resources.
    • Collaboration on high-capacity power grid interconnection for bidirectional electricity trade between Sri Lanka and BBIN countries was highlighted to cut electricity costs and enhance forex earnings.
    • Acceleration of the Indian public sector NTPC’s Sampur solar power project and LNG infrastructure projects were addressed to contribute to energy sufficiency.
    1. Connectivity and Trade:
    • Initiatives to promote maritime connectivity included the Kankesanthurai-Nagapattinam ferry service and the resumption of ferry services between Rameswaram and Talaimannar.
    • Expansion of air connectivity, including resuming flights between Jaffna and Chennai and exploring connectivity to other destinations, was discussed to enhance people-to-people ties and boost trade.
    1. Investment Facilitation and Currency Settlements:
    • Plans to facilitate Indian investments in the divestment of state-owned enterprises and economic zones were discussed to enhance trade and economic growth.
    • The designation of the Indian rupee as the currency for trade settlements between the two countries was emphasized to strengthen commercial linkage and reduce dependency on the US dollar.
    1. Ethnic Reconciliation and Political Engagement:
    • Discussions on the ethnic issue in Sri Lanka led to expressions of support for the implementation of the 13th Amendment and Provincial Council Elections, promoting equality and peace for the Tamil community.
    1. Geostrategic Implications:
    • The visit reaffirmed India’s ‘Neighbourhood First’ policy and strategic engagement with Sri Lanka, strengthening India’s influence in the region and supporting regional stability.
    1. Collaboration with the Private Sector:
    • President Wickremesinghe explored collaborative projects with Indian industrialist Gautam Adani, focusing on initiatives like the development of Colombo Port West Container Terminal and renewable energy projects.

    Addressing Sensitive Issues

    • Fishermen’s Dispute:
    • The longstanding issue of fishermen from both India and Sri Lanka straying into each other’s territorial waters for fishing has led to conflicts and arrests.
    • This issue has historical and economic dimensions, as the livelihoods of many fishermen are at stake.
    • Resolving this dispute requires delicate negotiations and mutual understanding.
    • Ethnic Issue:
    • This refers to the complex and often sensitive matter of the relationship between the majority Sinhalese community and the minority Tamil community in Sri Lanka.
    • The decades-long ethnic conflict in Sri Lanka, particularly the civil war involving the Liberation Tigers of Tamil Eelam (LTTE), has left deep scars.
    • The 13th Amendment to the Sri Lankan Constitution, facilitated by India, aimed to provide devolution of power to provincial councils, particularly in Tamil-majority areas, as a means to address some of the ethnic tensions.
    • However, the complete resolution of the ethnic issue requires careful consideration of political, cultural, and historical factors.

    Way forward

    • Enhanced Connectivity and Trade:
      • Prioritize and implement connectivity projects, such as the land bridge and maritime connectivity, to boost trade, tourism, and people-to-people interactions.
      • Strengthen air connectivity to facilitate easier travel and economic exchange.
    • Energy Security and Sustainability:
      • Expedite feasibility studies for the petroleum pipeline and power grid interconnection to ensure energy security and stability.
      • Collaborate on renewable energy projects to promote sustainability and reduce dependency on traditional energy sources.
    • Economic Cooperation and Investments:
      • Facilitate Indian investments in Sri Lanka’s divestment of state-owned enterprises and economic zones to drive economic growth and job creation.
      • Expand bilateral trade and encourage the use of designated currencies for trade settlements.
    • Cultural Exchanges and Youth Engagement:
      • Promote cultural exchanges and youth programs to deepen cultural understanding and foster lasting connections.
      • Create academic and research collaborations to share knowledge and expertise.
    • Sensitive Issue Resolution and Diplomatic Dialogue:
      • Continue diplomatic efforts to resolve sensitive issues, such as the fishermen’s dispute and the ethnic question.
      • Engage in inclusive dialogues and implement existing agreements for lasting solutions.

    Conclusion

    • The New Delhi visit of Sri Lankan President Ranil Wickremesinghe marks a significant step toward bolstering bilateral relations between India and Sri Lanka. The multifaceted agreements encompass connectivity, energy security, trade, and cultural exchange. As both countries work towards realizing their shared goals, these initiatives promise to strengthen regional prosperity and cooperation.

  • More than court action, revisit the Indus Waters Treaty

    Indus

    What’s the news?

    • India raised objection when Pakistan initiated arbitration at the Permanent Court of Arbitration to address the interpretation and application of the IWT.
    • On July 6, 2023, the court unanimously passed a decision (which is binding on both parties without appeal) rejecting each of India’s objections.

    Central Idea

    • The Indus Waters Treaty (IWT), 1960 has long been hailed as a remarkable example of cooperation between India and Pakistan, despite their tumultuous relationship. The treaty has endured numerous conflicts and established detailed procedures for dispute resolution. However, in recent years, there has been an increase in the utilization of judicial recourse to settle disputes arising from India’s construction of run-of-river hydroelectric projects.

    What is Indus Water Treaty (IWT)?

    • The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
    • According to this agreement, control over the water flowing in three eastern rivers of India the Beas, the Ravi and the Sutlej was given to India.
    • The control over the water flowing in three western rivers of India the Indus, the Chenab and the Jhelum was given to Pakistan

    Basis of the treaty

    • Back in time, partitioning the Indus rivers system was inevitable after the Partition of India in 1947.
    • The sharing formula devised after prolonged negotiations sliced the Indus system into two halves.
    • Underlying the treaty is the principle that water does not recognise international boundaries and upper riparian’s have a responsibility to lower riparian’s.

    What are the Disputes and Challenges?

    • Construction and design of run-of-river hydroelectric projects by India- Kishanganga (a tributary of the Jhelum) and Ratle, a hydro-electric project on the Chenab- objections from Pakistan– potentially impact the flow and utilization of water downstream.
    • Pakistan initiated arbitration at Permanent Court of Arbitration- India objected to the jurisdiction of the court– advocating for the use of the neutral expert process instead.
    • Pervasive atmosphere of distrust and strained relations between India and Pakistan, which hampers effective cooperation under the treaty.
    • As precipitation patterns and runoff are altered, the assumption of fixed water availability under the IWT becomes increasingly uncertain.
    • The treaty’s allocation of water resources does not adequately consider the potential impact of climate change on future water availability, creating a need for flexible mechanisms.
    • The IWT does not sufficiently address the rapidly growing industrial and agricultural needs of both countries.

    Principles of water course

    • Equitable and Reasonable Utilization (ERU): This principle emphasizes the fair and reasonable use of water resources among riparian states.
    • No Harm or Do No Harm Rule (NHR): The no harm principle states that riparian states should not cause significant harm to other states sharing the same watercourse. It requires taking necessary measures to prevent or mitigate any adverse impacts that might arise from water-related activities.
    • Integrated Water Resources Management (IWRM): IWRM approach considers water resources as an interconnected system, taking into account social, economic, and environmental factors. Achieve optimal and sustainable use of water resources.
    • Basin-wide Management: Water resources should be managed at the basin or watershed level, as it is the most natural unit for water management.
    • Prior Informed Consent: Obtaining the consent of affected communities and stakeholders before implementing projects or activities that may have significant impacts on water resources.
    • Environmental Protection: Need to protect and conserve the ecological integrity of watercourses. Preservation of aquatic ecosystems, biodiversity, and water quality.
    • The Role of the World Bank: The World Bank, as a party to the treaty, could utilize its platform to foster a transnational alliance of epistemic communities.

    Conclusion

    • By incorporating principles of equitable water utilization and preventing significant harm, the IWT can better address the evolving needs and climate change impacts of India and Pakistan. The World Bank’s involvement in facilitating collaboration and policy convergence could play a pivotal role in shaping a revised treaty that fosters long-term cooperation and sustainability in the shared management of the Indus waters

    Also read:

    Indus Water Treaty: A Case of Hydropolitics

  • Why is China limiting exports of raw materials?

    china

    Central Idea

    • China’s Ministry of Commerce recently announced export controls on gallium and germanium, citing national security interests.
    • The move has raised concerns due to the crucial role of these raw materials in semiconductor manufacturing and various other industries.

    Why read this?

    The restrictions imposed by China have prompted responses from other countries, highlighting the geopolitical backdrop of the ongoing ‘global chip war.’

     

    Curbs Imposed by China

    • Specific Licensing Requirement: Export operators must acquire a specific license to restrict the export of gallium and germanium.
    • Application Process: Operators need to provide details of importers, end-users, end use, and the original export contract. Exporting without permission will be deemed a violation, leading to administrative penalties and potential criminal charges.

    Significance and Concerns

    • Role of Gallium: Gallium is crucial for manufacturing semiconductor wafers, integrated circuits, mobile communications, satellite communications, LEDs, automotives, lighting, and sensor applications.
    • Role of Germanium: Germanium is used in fiber-optic cables, infrared imaging devices, optical devices, and solar cells due to its properties such as heat resistance and energy conversion efficiency.
    • Import Dependency: China dominates 80% of gallium production and 60% of germanium production, causing concerns for countries heavily reliant on imports, such as the European Commission and India.

    International Responses

    • United States: The U.S. opposes China’s export controls and plans to consult with partners and allies to address the issue. The focus is on diversifying supply chains and building resilience.
    • European Commission: Expresses concerns about the development, raising doubts regarding its security-related nature.
    • Geopolitical Backdrop: The US, Japan, and the Netherlands have implemented export control measures for national security reasons, targeting advanced computing chips and semiconductor manufacturing capabilities.

    China’s Perspective

    • Denial of Targeting Specific Countries: Chinese Foreign Ministry spokesperson emphasizes that the export measures are not aimed at any particular country and highlights China’s commitment to secure and stable global supply chains.
    • Countermeasures: Some Chinese officials have suggested that the export controls are just the beginning, and China may escalate its countermeasures if restrictions intensify in the future.

    Impact on India

    • Short-Term Disruption: India may experience short-term disruptions in its industries due to the disruption of immediate supply chains and increased prices.
    • Long-Term Consequences: The long-term impact on India’s chip-making plans and industries will depend on factors such as alternative supply sources, domestic semiconductor production capabilities, and strategic partnerships like the India-U.S. Initiative on Critical and Emerging Technology (iCET).
    • Opportunity for India: India can explore waste recovery from zinc and alumina production for gallium and germanium, consider alternative substitutes like indium and silicon, and focus on domestic semiconductor production.

    Conclusion

    • China’s export controls on gallium and germanium have raised concerns globally due to their critical role in various industries, particularly semiconductor manufacturing.
    • The responses from other countries reflect the geopolitical backdrop of the ongoing ‘chip war.’

     

  • Pak gets a $3 bn IMF Package

    imf pakistan

    Central Idea

    IMF and its Bailout

    • The IMF is an international organization that provides loans, technical assistance, and policy advice to member countries.
    • Established in 1944 to promote international monetary cooperation, exchange rate stability, balanced economic growth, and poverty reduction.
    • Headquarters located in Washington, D.C., and it has 190 member countries.
    • An IMF bailout, also known as an IMF program, is a loan package provided to financially troubled countries.
    • Bailout programs have specific terms and conditions that borrowing countries must meet to access the funds.

    Types of IMF Bailout Packages
    Description Duration Conditionality
    Stand-by Arrangements Short-term lending programs for countries with temporary balance of payments problems. 1-2 years Specific macroeconomic policies for stabilization
    Extended Fund Facility Medium-term lending programs to address balance of payments difficulties from structural weaknesses. Longer-term Extensive conditionality and significant reforms
    Rapid Financing Instrument Loan program providing quick financing for countries with urgent balance of payments needs. Flexible Fewer conditions and shorter application process

     

    Quick recap: Pakistan Economic Crisis

    imf

    • The 2022-2023 economic crisis in Pakistan coincides with political unrest in the country.
    • Rising food, gas, and oil prices have aggravated the economic challenges faced by Pakistan.
    • The IMF’s decision to halt disbursement of funds under the 2019 Extended Fund Facility (EFF) program exacerbated the financial crisis.

    Causes of the Economic Crisis

    • Impact of the Russian invasion of Ukraine: Worldwide fuel price hike affecting Pakistan’s import-dependent economy.
    • Excessive external borrowings: Raised concerns of default, leading to currency depreciation and expensive imports.
    • High inflation and food prices: By June 2022, inflation reached record levels, adding pressure on the economy.
    • Poor governance and low productivity: Contributing factors to the balance of payment crisis and insufficient foreign exchange earnings.

    Impact on the Pakistani Economy

    • Balance of payment crisis: Inability to generate enough foreign exchange to cover import expenses.
    • Currency depreciation: Weakening of the Pakistani rupee against major currencies, further exacerbating import costs.
    • Rising inflation: Placing a burden on the population, particularly with escalating food prices.
    • Economic instability: The crisis is considered the most significant since Pakistan’s independence.

    What’s’ the new SBA Deal?

    • Electricity subsidies: The agreement calls for the discontinuation of historically heavy subsidies in the power sector. There will be a timely rebasing of power tariffs to ensure cost recovery, which may lead to inevitable price hikes for consumers.
    • Import restrictions and exchange rate: Pakistan’s central bank will be required to remove import restrictions and adopt a fully market-determined exchange rate, aligning with the IMF’s directive.
    • Inflation control measures: The IMF emphasizes the need for the central bank to be proactive in curbing inflation, especially its impact on vulnerable segments of society. This may involve further interest rate hikes.
    • Fiscal discipline: The Pakistani authorities are urged to resist pressures for unbudgeted spending or tax exemptions, ensuring responsible fiscal management.

    Obligations laid on Pakistan

    • The $3 billion IMF support is part of the overall financial aid required to address Pakistan’s external payment obligations.
    • Pakistan will continue to seek additional multilateral and bilateral assistance to meet its financial commitments.
    • Support from countries such as the UAE, Saudi Arabia, and China is expected, further contributing to Pakistan’s financial stability.

    Reaction to the Deal

    • The response from analysts and economists has been mixed, with some expressing optimism that the agreement will restore investor confidence in Pakistan’s economy.
    • However, there are concerns regarding the government’s ability to adhere to the rigorous conditions imposed by the IMF.

    Conclusion

    • The IMF deal provides a temporary respite and financial support to address Pakistan’s economic challenges.
    • However, the successful implementation of the agreement and the long-term stability of Pakistan’s economy will require sustained efforts, adherence to conditions, and comprehensive structural reforms.

  • Manila and New Delhi: A 21st Century Partnership

    partnership

    Central Idea

    • The year 2022 brought about a significant turning point for the world as Covid-19-related restrictions were gradually lifted, ushering in a renewed focus on international trade, commerce, and strategic partnerships. Against this backdrop, the Philippines and India have reinvigorated their cooperation after almost three years, aiming to strengthen bilateral ties and foster economic resurgence in the post-pandemic era.

    Economic promise and growth trajectory of India and Philippines

    1. India’s Economic Promise and Growth Trajectory:
    • Projected Third-Largest Economy: India is projected to become the world’s third-largest economy by 2027. This forecast highlights the country’s immense economic potential and growth prospects.
    • Fastest-Growing Large Economy: India has consistently maintained an impressive average GDP growth of 5.5 percent over the past decade. This growth rate positions India as the fastest-growing among the large economies globally.
    • Investment Opportunities: India’s growing economy offers numerous investment opportunities across various sectors, attracting both domestic and foreign investors seeking to capitalize on its vibrant market and expanding consumer base.
    • Emerging Middle Class: India’s rising middle class presents a significant consumer market, driving consumption and fueling economic growth. The expanding middle class creates opportunities for businesses and stimulates economic development.
    1. Philippines’ Economic Promise and Growth Trajectory:
    • Upper-Middle-Income Status: The Philippines is on the threshold of achieving upper-middle-income status, which signifies significant progress in its economic development and per capita income.
    • Trillion-Dollar Economy by 2033: The Philippines aims to become a trillion-dollar economy by 2033, reflecting its ambitious goals for economic growth and prosperity.
    • Poverty Reduction and Socio-Economic Agenda: President Ferdinand R Marcos Jr’s socio-economic agenda focuses on reducing poverty and fostering sustainable economic growth. This agenda sets the stage for inclusive development and resilience in key sectors such as agriculture, energy, and infrastructure.
    • Empowerment and Inclusion: The Philippines places emphasis on empowering its population and fostering greater inclusion. By ensuring that the benefits of economic growth reach all segments of society, the country aims to create a more equitable and prosperous nation.

    The prospects for expanding trade and economic cooperation between the Philippines and India

    • Innovation and New Technologies: Both countries have vibrant innovation ecosystems and a growing focus on technological advancements. Collaborative efforts in research and development, knowledge sharing, and technology transfer can lead to the creation of innovative solutions and products. This cooperation can enhance productivity, efficiency, and competitiveness in various sectors.
    • Clean Energy and Renewable Technologies: India has emerged as a global leader in renewable energy, particularly in the development of wind and solar power. The Philippines has also made substantial investments in renewable energy technologies. Leveraging India’s expertise and experience, there is scope for collaboration in clean energy projects, including the adoption of advanced renewable technologies, sharing best practices, and promoting sustainable energy solutions.
    • Digital Infrastructure and Connectivity: India’s “Digital India” initiative and the Philippines’ efforts to strengthen its digital infrastructure provide opportunities for collaboration. This can involve sharing knowledge, experiences, and technologies in digitalization, e-governance, cybersecurity, and data management. Strengthening digital connectivity can facilitate trade, e-commerce, and digital services between the two countries.
    • Defense and Security Cooperation: There is potential for deeper cooperation in defense and security between the Philippines and India. The signing of contracts for defense procurement, such as the Philippines’ procurement of India’s BrahMos Shore-based Anti-Ship Missile System, signifies the beginning of such collaborations. Both countries can further explore joint exercises, defense industry partnerships, and information-sharing mechanisms to enhance their defense capabilities and address common security challenges.
    • Regional Economic Integration: The Philippines and India’s engagements within the framework of ASEAN, coupled with India’s “Act East Policy,” provide avenues for regional economic integration. Strengthening economic ties, promoting trade facilitation measures, and improving connectivity within the ASEAN-India network can enhance regional trade and investment flows. Collaboration in infrastructure development, logistics, and trade facilitation can further deepen economic integration.
    • People-to-People Exchanges: Enhancing people-to-people exchanges, including tourism, cultural interactions, and educational cooperation, can foster a deeper understanding and appreciation of each other’s countries. This can contribute to building stronger economic and social ties between the Philippines and India.

    Opportunities for regional cooperation in the Indo-Pacific

    • Economic Integration: Strengthening economic integration within the Indo-Pacific region is essential for creating a robust and interconnected economic ecosystem. The Philippines and India can play active roles in promoting and participating in initiatives such as the ASEAN Economic Community, the Regional Comprehensive Economic Partnership (RCEP), and other regional economic forums.
    • Connectivity and Infrastructure Development: Collaborative efforts in developing infrastructure, such as ports, roads, railways, and digital connectivity, can enhance regional connectivity and support economic growth. The Philippines and India can engage in infrastructure projects, joint investments, and partnerships to promote seamless connectivity within the region.
    • Maritime Security and Freedom of Navigation: Ensuring maritime security and upholding freedom of navigation in the Indo-Pacific is essential for trade, economic activities, and regional stability. Collaborative initiatives for maritime domain awareness, joint exercises, information-sharing mechanisms, and adherence to international law, including the United Nations Convention on the Law of the Sea (UNCLOS), can strengthen regional security and stability. The Philippines and India can actively participate in regional security frameworks, such as the ASEAN Regional Forum (ARF) and the Indian Ocean Naval Symposium (IONS), to address common maritime challenges.
    • Sustainable Development and Climate Change: Collaborative efforts in promoting sustainable development practices, sharing best practices in climate change adaptation and mitigation, and supporting initiatives for renewable energy and environmental conservation can contribute to the region’s long-term resilience. The Philippines and India can engage in knowledge sharing, capacity-building programs, and joint initiatives to address these challenges collectively.
    • People-to-People Exchanges and Cultural Cooperation: The Philippines and India can promote tourism, cultural exchanges, educational scholarships, and academic collaborations to deepen connections and promote mutual understanding among the diverse nations in the region.
    • Rules-based Order and Multilateralism: Upholding the principles of a rules-based order and inclusive multilateralism is crucial for regional stability and cooperation. The Philippines and India, as advocates for the rule of law, can actively engage in regional multilateral platforms such as the East Asia Summit (EAS), ASEAN Regional Forum (ARF), and the Indian Ocean Rim Association (IORA) to shape regional norms, promote dialogue, and address regional challenges collectively.

    Conclusion

    • As the Philippines-India Joint Commission on Bilateral Cooperation convenes for its fifth iteration in New Delhi, the two nations look forward to meaningful exchanges that will set a firm course for a stronger partnership. Building upon their nearly 75 years of diplomatic ties and shared values as democratic Asian republics, the Philippines and India are poised to reinforce bilateral relations and leverage their common interests to navigate the challenges and opportunities of the post-pandemic era.

    Also read:

    ASEAN-India maritime exercise in South China Sea

     

  • Prachanda’s Visit to India: A Stepping Stone for Stronger Nepal-India Relations

    Relations

    Central Idea

    • Nepal’s Prime Minister Pushpa Kamal Dahal ‘Prachanda’ recently concluded a successful four-day official visit to India, marking his third stint as Prime Minister. Compared to his previous visits in 2008 and 2016, this visit in 2023 has yielded more concrete outcomes and managed to navigate contentious issues successfully. The visit holds significance for Nepal’s political landscape and the potential for enhanced bilateral relations between Nepal and India.

    India Nepal Ties: A Backgrounder

    • Ancient ties: The relationship between India and Nepal goes back to the times of the rule of the Sakya clan and Gautama Buddha.
    • Cultural relations: From 750 to 1750 AD period saw a shift from Buddhism to Hinduism in Nepal and witnessed widespread cultural diffusion.
    • Diplomatic ties: India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal.

    Relations

    Significance of the visit

    • Strengthening Bilateral Relations: The visit signifies a renewed commitment to strengthening the bilateral relations between Nepal and India. It provides an opportunity for high-level engagement, dialogue, and cooperation, which are essential for fostering a closer partnership between the two countries.
    • Concrete Outcomes: Compared to Prachanda’s previous official visits to India, this visit has yielded more concrete outcomes. The focus on economic cooperation, particularly in the hydropower sector, has resulted in progress towards realizing Nepal’s hydroelectric potential and reducing its dependence on electricity imports.
    • Navigating Contentious Issues: The visit successfully managed to avoid public disagreements and controversial issues that could have strained the bilateral relationship. By prioritizing economic ties and constructive dialogue, both sides demonstrated their commitment to finding common ground and building trust.
    • Political Stability in Nepal: Prachanda’s visit, along with the complex power-sharing arrangement within the coalition government, contributes to political stability in Nepal. The coalition government’s unity and consensus-based decision-making provide a conducive environment for addressing developmental issues and focusing on the country’s economic growth.
    • Sub-regional Cooperation Prospects: The visit highlighted the potential for sub-regional cooperation, especially in the areas of connectivity and energy. Agreements on the expansion of transmission lines, the facilitation of trade and movement of goods and people, and the prospect of utilizing the Indian grid for Nepal’s electricity export to Bangladesh all indicate the willingness to enhance collaboration in the broader South Asian region.

    Significant Progress in Hydropower Cooperation

    • Increased Installed Capacity: Nepal has increased its installed capacity of hydropower from a mere 1,200 MW a decade ago to 2,200 MW currently. This growth in capacity enables Nepal to generate more electricity domestically and reduce its reliance on electricity imports from India.
    • Power Export to India: During the peak season, Nepal can now export power to India. In 2021, Nepal exported 39 MW of electricity to India, and the following year, the export increased to 452 MW. This not only contributes to Nepal’s economic growth but also strengthens energy cooperation between the two countries.
    • Long-Term Power Trade Agreement: Nepal and India have finalized a long-term power trade agreement that sets a target of exporting 10,000 MW of electricity from Nepal to India within a 10-year timeframe. This agreement demonstrates a shared commitment to enhancing energy cooperation and regional integration.
    • Hydropower Project Initiatives: Several hydropower projects have been initiated to tap into Nepal’s vast hydropower potential. For instance, the 900 MW Arun III project, started by the SJVN (formerly the Satluj Jal Vidyut Nigam), is expected to become operational later this year. Furthermore, a memorandum of understanding (MoU) has been signed for the 695 MW Arun IV project, and the National Hydroelectric Power Corporation (NHPC) has signed agreements for two projects with a total capacity of 1,200 MW.
    • Transmission Line Expansion: To facilitate the transmission of electricity between Nepal and India, work has begun on a second high voltage transmission line between Butwal in Nepal and Gorakhpur in India. Additionally, plans are in place to construct two more transmission lines under a line of credit of $679 million. These infrastructure developments are crucial for enabling efficient power exchange and strengthening the energy partnership between the two countries.

    Relations

    What are the key contentious issues between the two?

    • Kalapani Border Dispute: One of the longstanding issues between Nepal and India is the Kalapani border dispute. The dispute revolves around the demarcation of the border in the Kalapani region, which is claimed by both countries. Nepal argues that the region falls within its territory based on historical and cartographic evidence, while India maintains control over the area.
    • Treaty of Peace and Friendship of 1950: The India-Nepal Treaty of Peace and Friendship signed in 1950 has been a subject of contention. While the treaty was intended to foster close ties and cooperation, some in Nepal perceive it as unfair and imposed upon them. There have been calls to review and update the treaty to address concerns related to sovereignty and equality.
    • Cross-border Trade and Transit Issues: Cross-border trade and transit have faced challenges and occasional disruptions, impacting the flow of goods and creating economic strains. Issues related to customs procedures, tariffs, non-tariff barriers, and transit routes have led to occasional trade disputes between the two countries.
    • Hydropower Development and Water Resources: Nepal’s potential for hydropower development has been a subject of interest for both countries. However, disagreements have arisen over issues such as the sharing of water resources, joint projects, and cross-border impacts of hydropower development.
    • Employment of Gurkha Soldiers: The recruitment and employment of Gurkha soldiers from Nepal in the Indian Army has been an issue of concern. The Agnipath scheme, which governs the recruitment process, has been a subject of revision and discussion between the two countries.

    Relations

    Way Forward

    • Dialogue and Diplomacy: Both countries should prioritize open and constructive dialogue to address contentious issues. Regular high-level meetings, diplomatic negotiations, and bilateral dialogues can help build mutual understanding and find mutually acceptable solutions.
    • Boundary Dispute Resolution: The Kalapani border dispute should be addressed through diplomatic means. Engaging in discussions based on historical evidence, cartographic data, and international legal frameworks can help find a mutually acceptable resolution that respects the sovereignty and territorial integrity of both nations.
    • Treaty Review and Update: Considering Nepal’s concerns about the India-Nepal Treaty of Peace and Friendship of 1950, both countries can engage in substantive talks to review and update the treaty. This process should involve thorough discussions, taking into account the evolving bilateral dynamics and ensuring a fair and mutually beneficial agreement.
    • Enhancing Trade and Transit: Both nations should work towards simplifying customs procedures, reducing non-tariff barriers, and facilitating smoother cross-border trade and transit. Establishing efficient mechanisms for resolving trade-related disputes and enhancing connectivity through improved transport infrastructure will contribute to a stronger economic partnership.
    • Cooperation in Water Resources: Collaborative efforts can be undertaken to harness Nepal’s hydropower potential while addressing concerns related to water resources and cross-border impacts. Joint projects, sharing of technical expertise, and mechanisms for equitable sharing of water resources can promote cooperation and mutual benefit.
    • People-to-People Exchanges: Encouraging people-to-people exchanges, cultural exchanges, and promoting tourism can foster greater understanding, goodwill, and friendship between the citizens of both countries. Promoting educational exchanges, cultural events, and tourism initiatives will help strengthen the bonds at the grassroots level.
    • Sub-regional Cooperation: Exploring opportunities for sub-regional cooperation within the South Asian region can contribute to mutual growth and development. Initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) sub-regional grouping can be further strengthened, focusing on areas such as trade, connectivity, energy, and infrastructure development

    Conclusion

    • Prachanda’s visit to India marks a significant milestone in Nepal-India relations. The progress made in hydropower cooperation, the avoidance of controversial issues, and the commitment to dialogue pave the way for a renewed focus on mutual growth and trust. As Prime Minister Modi and Prachanda have demonstrated, the “HIT” approach (Highways, Infoways, and Transways) provides a framework for rebuilding trust and strengthening the bond between Nepal and India

    Also read:

    Revitalizing India-Nepal Bilateral Relations through Pragmatism and Cooperation

     

  • Revitalizing India-Nepal Bilateral Relations through Pragmatism and Cooperation

    Nepal

    Central Idea

    • Nepal’s democracy, governance, and stability face numerous challenges, along with persistent bilateral irritants with India. However, the recent bilateral visit of Prime Minister Pushpa Kamal Dahal Prachanda to India has highlighted the potential of a pragmatic approach and mutual sensitivity in re-energizing the relationship between the two nations.

    The challenge faced by Nepal in depoliticizing cooperation with India

    • Political Influence: Nepal’s domestic political dynamics often influence the country’s engagement with India. Political parties and leaders may prioritize their own interests or use cooperation with India as a political tool, leading to the politicization of bilateral issues and hindering effective collaboration.
    • Water Resources Cooperation: One area where depoliticization is crucial is water resources cooperation. The development of hydropower projects and the management of shared rivers require technical and practical solutions that are free from political interference. Depoliticizing water resources cooperation is essential to ensure long-term sustainability and mutual benefits.
    • Quality of Democracy and Governance: Strengthening the quality of democracy and governance within Nepal is vital to reduce the influence of political factors on bilateral relations. By promoting transparent and accountable governance structures, Nepal can create an environment that prioritizes national interests over political considerations.
    • Perception of Foreign Policy Priority: There is a perception among some in Nepal that India no longer considers the country a foreign policy priority. Addressing this perception and reaffirming Nepal’s importance to India’s foreign policy agenda can help build trust and create a sense of shared ownership in bilateral cooperation.
    • Inclusive Approach: Nepal needs to ensure that cooperation with India is not limited to the government of the day but involves all stakeholders across the political spectrum. Providing a sense of ownership, equality, and credit for major advancements to all parties fosters a more inclusive approach and reduces the politicization of bilateral relations

    Significance of the recent bilateral visit

    • Re-energizing Bilateral Relations: The visit signifies a renewed commitment to re-energizing and strengthening bilateral relations between Nepal and India. It highlights the willingness of both nations to address challenges, enhance cooperation, and foster a positive trajectory in their relationship.
    • Comprehensive Review of Bilateral Agenda: Discussions covered various areas such as politics, economics, trade, energy, security, and developmental cooperation, allowing both sides to identify priorities and areas of mutual interest.
    • Addressing Daunting Challenges: Despite the daunting challenges faced by Nepal’s democracy, governance, and stability, the visit demonstrated that pragmatic approaches and mutual sensitivity can help overcome these challenges.
    • Economic Integration: The visit underscored the significance of economic integration between the two nations. Emphasis was placed on “game changers” such as hydropower projects, infrastructure development, tourism circuits, and improved connectivity.
    • Power Sector Cooperation: Cooperation in the power sector, including the transmission passage from Nepal to Bangladesh through India, was an important aspect of the visit. Agreements and efforts to increase power trade and collaboration in this sector have the potential to bring prosperity to the entire sub-region.
    • Digital Connectivity and Space Cooperation: The visit also focused on enhancing digital financial connectivity and regional cooperation in the space sector. Initiatives such as facilitating cross-border digital payments and providing satellite services highlight the potential for collaboration in telecommunication, broadcasting, tele-medicine, tele-education, and other areas.
    • Building Trust and Confidence: The visit helped in building trust and confidence between the leaders of both countries. Reassurances regarding the resolution of differences on border issues and avoiding attempts to justify official versions of the border as the correct one contributes to a more positive atmosphere.

    Realistic Handling of Bilateral Issues

    • Political Courage: Despite being in a weak position as the leader of the third-largest party in Parliament, Prachanda demonstrated political courage by considering the costs and benefits of various approaches to bilateral issues.
    • Calculated Decision-making: Prachanda shrewdly calculated the costs of paying heed to political noises cautioning against being soft on irritants like the 1950 Treaty, border differences, and India’s reluctance to receive the report of the Eminent Persons Group (EPG).
    • Listening to Voices of Reason and Moderation: Rather than succumbing to the spectrum of political dissent, Prachanda chose to listen to the few voices of reason and moderation. This approach helped him focus on opportunities for building a better future.
    • Pragmatic Approach: Prachanda’s approach was pragmatic, taking into account the challenges presented by the post-COVID-19 world, current realities, and the significant opportunities for bilateral cooperation.
    • Focus on Opportunities: Instead of getting caught up in political instability and distractions, Prachanda focused on the opportunities for cooperation and collaboration between India and Nepal.

    Cooperation in the Power Sector and Digital Connectivity

    • Power Sector Cooperation: The visit highlighted the transmission passage from Nepal to Bangladesh through India, enabling trilateral power transactions. Agreements were made to increase the quantum of power export from Nepal to India to 10,000 MW within a timeframe of 10 years, presenting significant opportunities for economic growth and energy security in the region.
    • Hydropower Projects: The development of hydropower projects in Nepal can not only meet the increasing energy demands of India but also contribute to Nepal’s economic growth. The visit highlighted the importance of hydropower projects that can supply energy to India and potentially to Bangladesh, opening new avenues for regional collaboration and prosperity.
    • Digital Connectivity: The memorandum of understanding (MoU) between the National Payments Corporation of India and the Nepal Clearing House Ltd. facilitates cross-border digital payments, promoting seamless financial transactions and facilitating trade between the two countries.
    • Space Sector Cooperation: India offered to create a ground station and supply user terminals to provide satellite services of the South Asia Satellite to Nepal. This cooperation can have wide-ranging applications in telecommunication, broadcasting, tele-medicine, tele-education, disaster response, and meteorological data transmission. It promotes regional cooperation in space technology and its practical applications across various sectors.

    Way ahead

    • Dialogue and Engagement: Sustained and regular dialogue between the leaders and officials of both countries is crucial. This helps address concerns, build trust, and foster a deeper understanding of each other’s perspectives. Regular high-level visits, diplomatic exchanges, and people-to-people interactions can help maintain open channels of communication.
    • Depoliticize Cooperation: Nepal should strive to depoliticize cooperation with India, particularly in critical areas such as water resources management. By prioritizing technical expertise, scientific assessments, and mutual benefits, both countries can work towards sustainable solutions that are not influenced by short-term political considerations.
    • Economic Integration: Enhancing economic integration is vital for strengthening bilateral relations. Efforts should focus on facilitating trade, investment, and cross-border connectivity. Expanding infrastructure, improving border infrastructure, and streamlining customs procedures can promote seamless economic cooperation and foster shared prosperity.
    • People-to-People Exchanges: Encouraging cultural and educational exchanges between India and Nepal can promote greater understanding and friendship at the grassroots level. Encouraging tourism, promoting student exchanges, and facilitating cultural events can contribute to stronger people-to-people bonds.
    • Addressing Perception Issues: India needs to address the perception in Nepal that it is no longer a foreign policy priority. Demonstrating a consistent commitment to bilateral relations, engaging with diverse stakeholders, and providing equal opportunities for cooperation can help overcome this perception and build trust.
    • Collaboration in Regional Forums: Both countries can collaborate within regional forums such as the South Asian Association for Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Active participation in these platforms can foster greater regional cooperation and provide opportunities for addressing common challenges.
    • Good Governance and Anti-corruption Measures: Nepal should prioritize good governance and anti-corruption measures. Strengthening institutions, promoting transparency, and curbing corruption will not only enhance domestic governance but also inspire confidence in India and other partners for increased cooperation.

    Conclusion

    • Despite the daunting challenges, the recent bilateral visit between the Prime Ministers of Nepal and India highlights the potential for re-energizing their relations through pragmatism and cooperation. By prioritizing development and cooperation, both nations can pave the way for a prosperous future in the sub-region.

    Also read:

    Diplomatic Dispatch: Nepal Elections and India

     

  • Ensuring Stability and Peace on the Line of Actual Control (LAC)

    LAC

    Central Idea

    • The Line of Actual Control (LAC) between India and China has been a hotbed of tension and occasional clashes in recent years, posing a significant risk of escalation. Both countries have invested heavily in defensive preparedness and military infrastructure near the LAC. While a permanent solution may not be immediately achievable due to the complexity of the border dispute, short-term and pragmatic steps can be implemented to reduce the chances of conflict and foster peaceful coexistence

    Inadequacies in Existing Agreements

    • Lack of Clarity on LAC: The agreements are based on the assumption that both parties have a clear understanding and definition of the LAC. However, in reality, there are significant segments of the border where the exact demarcation is disputed or lacks clarity.
    • Insufficient Mechanisms for Dispute Resolution: The 1993 Agreement called for the creation of joint mechanisms to verify and settle LAC-related disputes. However, it took 19 years for the establishment of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) in 2012. While the WMCC meets twice a year, its effectiveness in resolving disputes and preventing escalations on the ground has been limited.
    • Limited Border Personnel Meeting (BPM) Points: The LAC, which stretches for 3,488 kilometers, currently has only four established BPM points. The 2005 Protocol proposed the establishment of a BPM point at Lipulekh, but it has not been implemented.
    • Lack of Progress in Force Reduction and Redeployment: The agreements, such as the 1993 Agreement and the 1996 Agreement, envisioned a mutually agreed reduction and redeployment of forces along the LAC. However, there has been little progress in implementing these provisions. The absence of substantial force reductions contributes to the prevailing tensions and increases the risk of confrontations.

    Facts for prelims

    States Border with China Important Passes
    Jammu and Kashmir 1597 km Khardung La Pass, Chang La Pass, Marsimik La Pass, Saser La Pass
    Arunachal Pradesh

     

    		 1126 km

     

    		 Bum La Pass, Kibithu Pass, Tawang
    Uttarakhand 345 km Mana Pass, Lipulekh Pass, Niti Pass
    Sikkim 220 km Nathu La Pass, Jelep La Pass
    Himachal Pradesh 200 km Shipki La Pass, Kaurik Pass

    The Need for Effective and Immediate Measures

    • Fragile and Dangerous Situation: As stated by India’s External Affairs Minister, the situation along the LAC in Eastern Ladakh remains fragile and dangerous from a military assessment perspective. The potential for escalation and the risk of conflict are significant.
    • Escalation of Aggression: Following the Galwan crisis, there has been a significant mobilization of Chinese forces into Tibet, accompanied by heightened rhetoric and jingoism from both countries.
    • Complexity of Border Dispute: The border dispute between India and China, encompassing areas such as Arunachal Pradesh and Aksai Chin, is intricate and has deep historical and geopolitical roots. Achieving a permanent solution to the dispute may not be immediately feasible.
    • Uncertainty of War Outcomes: While there might be voices advocating for a more confrontational approach, it is essential to consider the potential outcomes of a full-fledged war. Despite assurances from the government, there is no guarantee that the results of such a conflict would be favorable to either India or China.

    Proposed Steps for Peace and Stability

    • Conversion of LAC into a Line of Control (LC): Both India and China should delineate the LAC on maps and on the ground without prejudicing their respective border claims. This transformation would help reduce the urge among forward troops to make incremental advances and could be accomplished through mature dialogue and the use of technology.
    • Treatment of Disputed Areas as No Entry Zones or Joint Patrolling: The disputed areas along the LAC could be designated as no entry zones, preventing either side from establishing a permanent presence. Alternatively, both countries can explore the possibility of allowing mutually agreed-upon patrolling of these areas. Joint patrolling would help maintain the status quo and build confidence between the troops.
    • Strengthening Existing Confidence Building Measures (CBMs): The WMCC, established in 2012, should be empowered with more authority and resources to effectively address LAC-related disputes. Additionally, establishing more BPM points along the LAC would facilitate quicker resolution of local issues and enhance communication and cooperation between the Indian and Chinese troops.

    Conclusion

    • The tense situation along the Line of Actual Control calls for immediate action to ensure stability and prevent the outbreak of a major conflict. It is crucial for both nations to prioritize dialogue, cooperation, and a commitment to regional stability in order to safeguard their own interests as well as those of the world, politically and economically.

    Also read:

    India-China clash: Why China has opened new front?

     

  • Duty-Free Quota Free (DFQF) Scheme

    Central Idea

    • India offers a duty-free quota-free (DFQF) scheme to least developed countries (LDCs) under the World Trade Organisation (WTO).
    • A report by the LDC Group reveals that about 85% of the products offered by India remain unutilised under the DFQF scheme.

    World Trade Organisation (WTO)
    Establishment The WTO was established on January 1, 1995, following the Uruguay Round of Negotiations conducted from 1986 to 1994.
    Nature The WTO is the only global international organization dedicated to regulating trade rules between nations.
    Successor to GATT It is the successor to the General Agreement on Tariffs and Trade (GATT), which was in place from 1948 to 1994.
    Objectives To facilitate the smooth, predictable, and unrestricted flow of international trade.
    Working Principles Based on the principles of MFN and national treatment, ensuring equal and non-discriminatory treatment.
    Member-Driven Organization Governed by its member governments, and decisions are made through consensus among these members.
    Special and Differential Treatment for Developing Countries The WTO provides specific flexibilities and rights to least developed countries (LDCs) and developing nations.

     

    DFQF Scheme

    • The DFQF access for LDCs was initially decided at the WTO Hong Kong Ministerial Meeting in 2005.
    • India became the first developing country to extend this facility to LDCs in 2008, providing preferential market access on 85% of its total tariff lines.
    • The scheme was expanded in 2014, offering preferential market access on about 98.2% of India’s tariff lines to LDCs.

    Issues highlighted by WTO

    (1) Tariff Line Utilisation Data

    • WTO data from 2020 indicates that 85% of the tariff lines offered by India under the DFQF scheme show zero utilisation rate.
    • China’s utilisation rate for similar tariff lines is 64%, with only 8% of the lines showing a utilisation rate above 95%.
    • Utilisation rates for beneficiary LDCs vary significantly, with Guinea and Bangladesh having low rates (8% and 0% respectively), while Benin reports the highest utilisation rate of 98%.

    (2) Non-Preferential Tariff Route

    • Similar to China, significant amounts of LDC exports enter India under the non-preferential (most favoured nation) tariff route, despite being covered by the Indian preference scheme.
    • The report highlights the importance of preference margins, indicating potential duty savings.
    • For example, fixed vegetable oil exported from Bangladesh to India has a preference margin of 77.5 percentage points, implying a potential $74 million duty savings if the preference scheme were utilized.

    Challenges and Barriers

    • The report suggests that the low utilisation of the preference scheme by LDCs is not due to exporter awareness but rather existing barriers that hinder the effective use of preferences.
    • The specific barriers preventing LDCs from fully utilizing the scheme are not mentioned in the article.

  • In news: Telangana Statehood Day

    telangana

    Central Idea

    • With assembly elections just months away, political parties across the board are celebrating the 9th anniversary of Telangana’s statehood today (June 2).

    Formation of Telangana

    • The article discusses the historical background and the struggle for statehood that led to the formation of Telangana, the newest state in India.
    • It provides a chronological account of the significant events and factors that shaped Telangana’s journey towards becoming an independent state.

    Why was Telangana separated from Andhra Pradesh?

    Telangana was separated from Andhra Pradesh primarily due to historical, cultural, and developmental reasons, as well as demands from the people of the region. Here are the key reasons behind the separation:

    • Historical and Cultural Differences: Telangana and Andhra Pradesh have distinct historical and cultural identities. Telangana had its own language, Telugu, but with a distinct dialect and cultural practices. The people of Telangana felt that their unique identity was not adequately recognized or represented within the larger Andhra Pradesh state.
    • Socio-economic Disparities: Telangana region, despite its rich natural resources, had been relatively underdeveloped compared to the coastal Andhra region. People in Telangana felt that their region’s development needs were neglected, resulting in socio-economic disparities and unequal distribution of resources and opportunities.
    • Demand for Local Control: The demand for separate statehood gained momentum due to the belief that local control and governance would be more effective in addressing the specific needs and aspirations of Telangana. The people of Telangana sought greater autonomy and decision-making power over their own affairs.
    • Political Representation: Some leaders and groups within Telangana felt marginalized in the political landscape of united Andhra Pradesh. They believed that a separate state would provide better opportunities for political representation and participation.
    • Water and Resource Sharing: Disputes over the sharing of water resources, particularly the Krishna and Godavari rivers, further strained the relationship between Telangana and Andhra Pradesh. The perceived inequitable distribution of water resources added to the demand for a separate state.

    These factors, along with sustained movements and protests led by various political and social groups, culminated in the bifurcation of Andhra Pradesh and the formation of the separate state of Telangana on June 2, 2014.

    Here is a complete timeline of the formation of the modern Telangana State

    PART I: Pre-Independence and Formation of Andhra Pradesh

    • Post-independence Hyderabad State (1948-1951): Hyderabad’s significance as a part of the Princely State and its dominance by the Urdu-speaking Muslim elite.
    • Brutalities under Nizam’s rule and the Razakars (1945-1948): The communist-supported rebellion and the violent response of the Nizam’s local militia, the Razakars, leading to atrocities on Telangana’s population.
    • Standstill Agreement and its violation (1947-1948): The signing of the Standstill Agreement with Hyderabad, the subsequent violation of its terms by the Nizam, and the intervention of India through “Operation Polo.”
    • Hyderabad’s status as a Part-B state (1951-1956): The inclusion of Hyderabad as a Part-B state with an elected chief minister after India’s independence and the end of Nizam’s rule.

    PART II: Linguistic Reorganisation and Creation of AP

    • Potti Sriramalu’s demand for a separate Telugu state (1952): The fasting protest by Potti Sriramalu, leading to unrest and eventually the formation of Andhra State.
    • Formation of Andhra State out of Madras state (1953): The division of the Madras state and the creation of Andhra State, comprising the north and north-eastern regions, in response to the demand for a separate Telugu state.
    • Formation of the States Reorganisation Committee (1953-1955): The establishment of the committee to address the issue of linguistic reorganisation and its subsequent recommendations.
    • Status of Telangana region in linguistic reorganisation (1955-1956): The debate over the merging of Telangana with Andhra or having it as a separate state, conflicting with the SRC’s recommendations.
    • Merging of Andhra State and Telangana (1956): The decision to merge Andhra State and Telangana against the SRC’s recommendation, resulting in the formation of Andhra Pradesh with Hyderabad as its capital.

    PART III: Struggle for Telangana and Creation of Telangana State

    • Pre-Independence protests for Mulki Rules (1952-1947): The protests demanding the enforcement of Mulki Rules, which ensured job reservations for Telangana domiciles, even before India’s independence.
    • Protests and birth of Telangana Praja Samiti in 1969: The widespread protests in 1969, leading to the establishment of the TPS and the call for a separate Telangana state.
    • Repeal of Mulki Rules Act in 1973: The introduction of the 32nd Amendment to the Constitution by Indira Gandhi, repealing the Mulki Rules Act and impacting the Telangana movement.
    • Revival of the Telangana movement by KCR in 2001: KCR’s resignation from the Telugu Desam Party and the formation of the Telangana Rashtra Samithi, rejuvenating the demand for a separate Telangana state.
    • KCR’s fast-unto-death and the promise of Telangana statehood (2009): KCR’s fast-unto-death in 2009 following the death of Andhra Pradesh’s Chief Minister, Y S Rajsekhara Reddy, leading to the Congress party’s promise of creating Telangana.
    • Formation of Telangana state in 2014: The culmination of the struggle with the formation of Telangana as a separate state in 2014, with Hyderabad serving as the capital for a period of ten years.

    Back2Basics: States Reorganization in India

     

    Explanation
    Background and Introduction The States Reorganisation Act, 1956 reformed India’s state boundaries based on linguistic lines.

    It is the most extensive change in state boundaries after India’s independence.

    The act came into effect along with the Constitution (Seventh Amendment) Act, 1956.
    Pre-Independence Political Integration British India was divided into Provinces of British India and Indian States.

    Princely states were encouraged to accede to either India or Pakistan after independence.

    Bhutan remained independent, Hyderabad was annexed by India, and Kashmir became a subject of conflict between India and Pakistan.
    Integration of Princely States Between 1947 and 1950, the princely states were politically integrated into the Indian Union.

    Some states were merged into existing provinces, while others formed unions or remained separate states.

    Government of India Act 1935 served as the constitutional law until the adoption of a new Constitution.
    Classification of States and Territories The Constitution of India, effective from 1950, classified states and territories into Part A, Part B, Part C, and Part D categories.

    Part A states were former governors’ provinces, Part B states were former princely states, and Part C states included chief commissioners’ provinces and some princely states.

    Part D consisted of the Andaman and Nicobar Islands.
    Linguistic Movements and Demands The demand for linguistic states began before independence, with the first movement in Odisha in 1895.

    Political movements for linguistic states gained momentum after independence.

    Creation of Andhra Pradesh in 1953 marked a significant development in organizing states based on language.
    States Reorganisation Commission Linguistic Provinces Commission was set up in 1948 but rejected language as a basis for dividing states.

    States Reorganisation Commission was established in 1953 to reorganize Indian states.

    Headed by Fazal Ali and had recommendations overseen by Govind Ballabh Pant.
    Enactment and Changes States Reorganisation Act was enacted on 31 August 1956.

    Constitution underwent an amendment, and the terminology of Part A and Part B states was changed to simply “states.”

    Also introduced the classification of Union Territories.
    Effects and Reorganization States Reorganisation Act of 1956 resulted in the reorganization of states and territories.

    Took effect on 1 November 1956.

    Had a significant impact on dividing India into states and Union Territories.