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Subject: Bilateral Relations

1. Major World Events
2. India’s Interests in neighbourhood
3. Effects of our Policies

  • Making sense of Pakistan’s new national security policy

    Context

    The national security policy statement issued last week by the government of Pakistan acknowledges the need for change.

    Why does it matter for India?

    • India’s stakes in a stable Pakistan are higher than anyone else in the world.
    • Therefore, Delhi must pay close attention to the internal debates within Islamabad on the imperatives of major change in Pakistan’s national direction.
    • But as critics in Pakistan insist, the policy offers no clues on how to go about it.
    • The classified version probably has a clear strategy on how to accelerate economic growth, build national cohesion, and revitalise its foreign and security policies.

    Overview of India’s transformation after 1990s

    • The crises that Pakistan confronts today are quite similar to those Delhi faced at the turn of the 1990s.
    • Economic challenge: India’s post-Independence old economic model was on the verge of collapse.
    • Political instability: The era of massive domestic political mandates was over and weak coalitions government were in place.
    • Challenges in International relations: The Soviet Union, India’s best friend in the Cold War, fell off the map and the Russian successor was more interested in integrating with the West.
    • India found that its political ties with all other major powers — the US, Europe, China and Japan — were underdeveloped at the end of the Cold War.
    • Pakistan, meanwhile, was running proxy wars in India even as it mobilised international pressures against Delhi on Kashmir.
    • Within a decade, though, India was on a different trajectory.
    • . Its reformed economy was on a high growth path.
    • India was hailed as an emerging power that would eventually become the third-largest economy in the world and a military power to reckon with.
    • Delhi also cut a deal with Washington to become a part of the global nuclear order on reasonable terms.
    • This involved a series of structural economic reforms, the recasting of foreign policy, and developing a new culture of power-sharing within coalitions and between the Centre and the states.

    The economic transformation of Bangladesh

    • The economic transformation of Bangladesh has been equally impressive.
    • Since Sheikh Hasina returned to power in 2009, Bangladesh focused on economic development, stopped support to terrorism, and improved ties with the larger of its two neighbours — India. 
    • As a result, Bangladesh’s economy in 2021 (GDP at $350 billion) is well ahead of Pakistan ($280 billion).

    How Pakistan missed the opportunity

    • Pakistan chose a different path.
    • Having ousted the Soviet superpower from Afghanistan in the late 1980s, Pakistan was ready to apply the model of cross-border terrorism to shake Kashmir loose from India and turn Afghanistan into a protectorate.
    • Supporting jihadi groups was seen as a low-cost strategy to achieve Pakistan’s long-standing strategic objectives in the neighbourhood.
    • These grand geopolitical obsessions left little bandwidth for the much-needed economic modernisation of Pakistan.
    • Islamabad, which relentlessly pursued parity with Delhi, now finds that the Indian economy at $3.1 trillion is more than 10 times larger than that of Pakistan.

    Factors that explain change in Pakistan’s policy

    • Diminishing role in geopolitics: In the past, Pakistan had much success in pursuing a foreign policy that not only balanced India with the support of the West, but also carved out a large role for itself in the Middle East and more broadly the Muslim world.
    • Today, barring the United Kingdom, Pakistan’s equities in the West have steadily diminished.
    • Weakened ties in the Middle East: Meanwhile, it has weakened its traditionally strong ties in the Middle East with Saudi Arabia and the United Arab Emirates.
    • Weakened ties with the US: Although its all-weather ties with China have gone from strength to strength, the unfolding conflict between Washington and Beijing has put Pakistan in an uncomfortable strategic situation.
    • Pakistan’s support for violent religious extremism has also begun to backfire.
    • A permissive environment for terrorism has now attracted severe financial penalties from the international system.

    India’s changed approach towards Pakistan

    • Delhi, which was prepared to make concessions on Kashmir in the 1990s and 2000s, has taken Kashmir off the table and is ready to use military force in response to major terror attacks.
    • Delhi’s attitude towards Islamabad now oscillates between insouciance and aggression.
    • Unlike in the past, the West is no longer pressuring India to accommodate Pakistan on Kashmir.
    • The US is eager for India’s support in balancing China in the Indo-Pacific.

    Conclusion

    All these shifts together have compelled Pakistan to rethink its policies.  There is no guarantee that the change will be definitive and for the good. But if it is, Delhi should be prepared to respond positively.

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  • India-Japan friendship can help global peace, prosperity

    Context

    The year 2022 marks the 70th anniversary of the establishment of diplomatic relations between Japan and India.

    Historical background of India-Japan relationship

    • We have a long history of people-to-people exchanges that can be traced back to the sixth century.
    • Buddhism was brought to Japan and, in 752.
    • During Meiji Restoration in the late 19th Century — Japan needed natural resources to modernise its industry.
    • Many Japanese travelled to India to purchase cotton, iron ore, etc.
    • Formal relations between Japan and India began in 1952.
    • After the Second World War, instead of signing the multilateral San Francisco Peace Treaty, India opted for concluding a bilateral peace treaty with Japan, considering that honour and equality should be ensured for Japan to rejoin the international community.
    • But even before the establishment of diplomatic relations, the goodwill between the people of the two countries was deeply rooted through business, academic and cultural exchanges.
    • After 70 years of multi-layered exchanges, the relationship between our two countries grew into a “Special Strategic and Global Partnership”. 

    Future possibilities

    [1] As democratic countries, contribute to global peace and prosperity

    • As democratic countries in Asia, India and Japan can cooperate to contribute to global peace and prosperity.
    • We share political, economic and strategic interests based on the firm foundations of common values and traditions.
    • We are continuing our efforts to build a rules-based free and open international order.

    [2] Cooperation in security

    • There are a plethora of fields that we can cooperate in security issues including cyber security, outer space and economic security.

    [3] Augmenting economic relations

    •  For long, Japan has been the largest ODA (Official Development Assistance) donor to India.
    • One of the most recent and ongoing examples of our collaboration is the Mumbai-Ahmedabad High-Speed Rail project.
    • Japan is also one of the largest investors in India.
    • Both countries have also promoted economic cooperation in other countries to enhance social infrastructure and connectivity.
    • Our economic partnership can further strengthen the economy of the Indo-Pacific, as well as the world economy.

    [4] Cultural exchange

    • Cultural exchanges including literature, movies, music, sports and academics are essential for our relations, enabling a better understanding.

    Consider the question “The year 2022 marks the 70th anniversary of the establishment of diplomatic relations between Japan and India. The future offers enormous possibilities for the partnership. In context of this, examine the future possibilities the two countries can explore.” 

    Conclusion

    India-Japan ties will continue to flourish. Our long history substantiates that.

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    Meiji Restoration in Japan

    • In Japanese history, the political revolution in 1868 that brought about the final demise of the Tokugawa shogunate (military government)—thus ending the Edo (Tokugawa) period (1603–1867)—and, at least nominally, returned control of the country to direct imperial rule under Mutsuhito (the emperor Meiji).
    • In a wider context, however, the Meiji Restoration of 1868 came to be identified with the subsequent era of major political, economic, and social change—the Meiji period (1868–1912)—that brought about the modernization and Westernization of the country.
  • India to seal a Free Trade Agreement (FTA) with UK

    India and the United Kingdom have launched formal Free Trade Agreement (FTA) negotiations with the aim of concluding an early harvest trade agreement over the next few months.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favourably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • The discussion is going for an FTA with Australia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement – discussed above

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

     

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  • Philippines approves deal for BrahMos Missile

    In the first export order for the BrahMos supersonic cruise missile system, the Philippines has approved a $374.96 mn contract for the purchase of a shore-based anti-ship variant of the missile from India.

    About BrahMos Missile

    • BrahMos missile derives its name from the combination of the names of Brahmaputra and Moskva Rivers.
    •  They are designed, developed and produced by BrahMos Aerospace, a joint venture company set up by DRDO and Mashinostroyenia of Russia.
    • It is a two-stage missile with a solid propellant booster as the first stage and liquid ramjet as the second stage.
    • The cruise missiles like BrahMos are a type of system known as the ‘standoff range weapons’ which are fired from a range sufficient to allow the attacker to evade defensive fire from the adversary.
    • Such weapons are in the arsenal of most major militaries in the world.

    Its capability

    • BrahMos missile flies at a speed of 2.8 Mach or almost three times the speed of sound.
    • It is the main weapon system of the Indian Navy warships and has been deployed on almost all of its surface platforms.
    • An underwater version is also being developed which will not only be used by the submarines of India but will also be offered for export to friendly foreign nations.

    Various versions

    • The versions of the BrahMos that are being tested have an extended range of around 400 km, as compared to its initial range of 290 km, with more versions of higher ranges currently under development.
    • Various versions including those which can be fired from land, warships, submarines and Sukhoi-30 fighter jets have already been developed and successfully tested in the past.
    • The earliest versions of the ship launched BrahMos and land-based system are in service of the Indian Navy and the Indian Army since 2005 and 2007 respectively.

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    Back2Basics:

    Explained: India’s Missile Capability

     

  • The Indo-Pacific opportunity

    Context

    The geopolitics of the Indo-Pacific, which is changing fast. As it moves into 2022, the region will carry the imprint of the past five years, and will have to chart a course through inter-state tensions and crises, using both diplomacy and military preparedness.

    What will shape the geopolitics and geoeconomics of the Indo-Pacific?

    • Key players in the region: The region is central to world economy and peace, and nine countries are key players: the US, China, Japan, India, Germany, the UK, Russia, Australia and France.
    • The geopolitics and geo-economics of the Indo-Pacific will be largely shaped by the interplay of relations among these nations.
    • US-China relations: Of paramount importance is the US-China equation.
    • Expect this relationship to be marked by continually adversarial, competitive and cooperative traits.
    • Beijing’s south/east China policy, aggressive postures towards Taiwan, human rights violations in Xinjiang, the subjugation of Hong Kong’s citizenry and assertive economic outreach in the Indo-Pacific — these will weigh heavily on US-China relations.

    A significant role of groupings and individual nations

    • In this standoff, the role of new groupings and individual nations is significant.
    • Role of Quad: Foremost are the Quad, a strategic partnership between the US, India, Japan and Australia and the militaristic AUKUS (Australia, UK, US). 
    • India-Australia ties: Meanwhile, India and Australia are on track to deepen ties, not only bilaterally but also with the other two Quad powers.
    • The next Quad summit, probably hosted by Japan, will cement the grouping.
    • EU’s role: The EU’s Indo-Pacific strategy, announced last September, aims at increasing its economic and security profile in, and linkages with, the region.
    • UK’s role: Only by being more strategic and less mercantilist, more candid and assertive with China, and more cooperative with partners such as India, can the EU — and its former member the UK — hope to become vital players in the Indo-Pacific.
    • ASEAN, located in the middle of the Indo-Pacific waters, faces the heat of China’s aggression and the sharpening great power rivalry.
    •  It must enhance its realism and shed its tendency of wishing away problems.

    Suggestions for India

    • 1]Strengthen the Quad – especially by ensuring that the grouping fulfils its commitment to deliver at least one billion vaccine doses to Indo-Pacific nations by December 2022.
    • India must protect its established relationship with Russia, and show some resilience in dialogue with Beijing.
    • 2] Enhance relations with ASEAN nations: It must enhance cooperation with key Southeast Asian partners —Indonesia, Vietnam, Philippines and Thailand — while humouring ASEAN as a grouping.
    • 3] Give attention to African and Indian Ocean island states: The eastern and southern planks of Africa and the Indian Ocean island states need continued high policy attention and financial resources.
    • A clear economic and trade agenda to follow the flag in this vital region, is certain to yield long-term dividends.

    Consider the question “Indo-Pacific will present India strategic and economic opportunities that India must not miss. However, the region will have to chart a course through inter-state tensions and crises. Comment.”

    Conclusion

    India has done well by fulfilling its humanitarian duties during the pandemic. Learning how to convert them smartly into economic and strategic opportunities in its periphery is the focused task for the nation in 2022.

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  • India extends $900 mn aid to Sri Lanka

    India has confirmed a $400 million currency swap with Sri Lanka while deferring another $500 million due for settlement to the Asian Clearing Union (ACU).

    What is the news?

    • Sri Lanka is facing a severe dollar crunch that economists say might lead to a default on external debt and create a food shortage in the imports-reliant island nation.
    • In this regard, the Reserve Bank of India has extended currency swap facilities of $900 million to Sri Lanka.

    What are Currency Swaps?

    • A currency swap, also known as a cross-currency swap, is an off-balance sheet transaction in which two parties exchange principal and interest in different currencies.
    • Currency swaps are used to obtain foreign currency loans at a better interest rate than could be got by borrowing directly in a foreign market.

    Practice question for mains:

    Q. What are Currency Swaps? Discuss the efficacy of Currency Swap Agreements for enhancing bilateral cooperation in Indian context.

    How does it work?

    • In a swap arrangement, RBI would provide dollars to a Lankan central bank, which, at the same time, provides the equivalent funds in its currency to the RBI, based on the market exchange rate at the time of the transaction.
    • The parties agree to swap back these quantities of their two currencies at a specified date in the future, which could be the next day or even three months later, using the same exchange rate as in the first transaction.
    • These swap operations carry no exchange rate or other market risks, as transaction terms are set in advance.

    Why does one need dollars?

    • FPIs investors look for safer investments but the current global uncertainty over COVID outbreak has led to a shortfall everywhere in the global markets.
    • This has pulled down foreign exchange reserves of many small and developing countries.
    • This means that the government and the RBI cannot lower their guard on the management of the economy and the external account.

    Benefits of currency swap

    • The absence of an exchange rate risk is the major benefit of such a facility.
    • This facility provides the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.
    • Swaps agreements between governments also have supplementary objectives like the promotion of bilateral trade, maintaining the value of foreign exchange reserves with the central bank and ensuring financial stability (protecting the health of the banking system).

    Back2Basics: Asian Clearing Union (ACU)

    • The ACU with headquarters in Tehran, Iran, was established on December 9, 1974, at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • The primary objective of ACU was to secure regional co-operation as regards the settlement of eligible monetary transactions among the members of the Union/
    • It now aims to provide a system for clearing payments among the member countries on a multilateral basis.
    • The unit of settlement of ACU transactions is a common unit of account of ACU, and the unit is equivalent to one USD, and the Asian Monetary Unit may be denominated as ACU dollars and Euro.

    Must read:

    [Burning Issue] India – Sri Lanka relations in recent times

     

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  • Pakistan’s New Security Policy

    Peace with India and its immediate neighbors is set to be the central theme of Pakistan’s first-ever National Security Policy.

    Why has this news made headlines?

    • Pakistan’s (official) policy now leaves the door open for trade with India even without the settlement of the Kashmir issue – provided there is headway in bilateral talks.
    • Earlier, Kashmir used to be at the centre-stage of all Pakistani outcry.

    New Security Policy

    • The country’s new policy would act as an umbrella document, to be used as a guideline for Pakistan`s foreign, international and defence related policies.
    • The five-year-policy document, which will span 2022-26, is being touted by the Pakistan government as the country’s first-ever strategy paper of its kind.

    Key highlights

    • Focus on trade: The 100-page policy document has also put out elaborate plans to open trade and business ties with India.
    • Silent on Kashmir: Kashmir issue with India has been identified as a ‘vital national policy’ issue for Pakistan.
    • No public discussion: Only a part of the national security policy will be made public.
    • Defying hostility with India: The document states that Pakistan is not seeking hostility with India for the next 100 years.
    • Curbing militancy: The new policy also deals with the issue of militant and dissident groups and advocates dialogue with ‘reconcilable elements.’
    • No re-conciliation with India: There are no prospects of rapprochement with India under the current government.
    • Others: On the internal front, the new policy identifies five key areas of population/migration, health, climate and water, food security and gender mainstreaming.

    Significance of such policy

    • Pakistan and India have mostly been at loggerheads with each other throughout history.
    • During the first term of Narendra Modi in 2014, the relations took a positive turn when he announced his intentions to have cordial relations with Pakistan.
    • He had also visited Islamabad in 2015 unannounced to attend a marriage ceremony in Ex-PMs family.
    • However, the relations deteriorated following the horrific 2016 Uri attacks.

    Way ahead

    • Pivotal equations between India and Pakistan will continue to be dominated by Kashmir, the ongoing proxy war and terrorism.
    • It is unlikely that this prevailing equilibrium is likely to be reset by this classified policy document. That too overnight.
    • The India-centric security obsession will remain the core of this policy.

     

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  • Chinese scramble for Africa

    Chinese Foreign Minister has visited Eritrea, Kenya, and Comoros in the first week of January as part of a five-nation tour.

    Why in news?

    • Chinese FM was observing a 32-year-old Beijing ritual of visiting Africa at the beginning of every year.
    • In fact, China’s links with the continent go back farther than the last three decades.

    China-Africa Ties: A backgrounder

    • In the Cold War years, as the US and Soviet Union jousted for influence over Africa, China maintained an ideological presence on the continent.
    • In 1966, after Kwame Nkrumah was ousted in a coup while he was in Beijing, the Chinese put up the Ghananian independence leader for a few days before he decided to leave for Guinea.
    • Since the 1990s, China has successfully used its old ties with several African countries to remodel the relationship, using the abundant natural resources of the continent to service its own massive growth.

    [A] Strategic gestures

    • Diplomatic establishments: China has a special envoy to the Horn of Africa where Eritrea, Ethiopia, Somalia, Djibouti and Kenya are located. It shows the strategic importance of this Indian Ocean region for China.
    • Military bases: Since 2017, Beijing has had a military base in Djibouti with 400 soldiers of the PLA, in close proximity to French and an American base.
    • Railway lines: A Chinese-built railway line connects Djibouti to the Ethiopian capital Addis Ababa.

    [B] Infrastructure Projects

    • Tanzania: The first Chinese infrastructure project on the continent was the 1,860-km Tanzania-Zambia railway in the 1970s — the first transnational railway in Africa.
    • Zambia: In addition to carrying passengers, it transported ore from Zambian copper mines to the port city of Dar-es-Salam in Tanzania.
    • Kenya: China has undertaken major Belt and Road initiatives in Kenya. Recently, there was held completion ceremony of the Chinese-built oil terminal at the port city of Mombasa.
    • Comoros Islands: In the Comoros Islands, off Mozambique, China has made many development assistance.

    [C] Loans and trade

    • For a dozen years, China has been Africa’s biggest trading partner. Undoubtedly, the balance of trade is heavily in favour of China.
    • Two-way trade in 2020 was $ 187 billion, according to the ‘China-Africa Annual Economic and Trade Relationship Report 2021’.
    • The top five African recipients of Chinese investments are South Africa, the Democratic Republic of Congo, Angola, Ethiopia, and Zambia.
    • While the main investments in countries across Africa are in infrastructure construction projects and mining, China is also investing in transport, scientific research, and the services sector.

    [D] Others

    • China has huge demand for African ivory, abalone, rhinoceros tusk and materials from other endangered species.
    • This has taken a significant toll on conservation efforts.

    Major Chinese accomplishments

    • The question of Taiwan has been a key political issue for China these days.
    • In 1971, the support of African nations was crucial in China’s joining the United Nations (UN), taking over the seat on Taiwan.
    • Many African countries, such as Algeria, Egypt, Ethiopia, and Zambia have stressed their support for a “one-China policy”.

    Criticisms of Chinese Scramble in Africa: A neo-colonialism in making

    • There are a variety of critical perspectives scrutinizing the balance of power relationship between China and Africa, and China’s role concerning human rights in Africa.
    • Increasingly, concerns have been raised by Africans and outside observers that China’s relationship with Africa is neocolonialist in nature.

     

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  • New prominence of the Central Asian region

    Context

    When Prime Minister Narendra Modi hosts the five Central Asia leaders at the Republic Day Parade on January 26, it will send a strong signal — of the new prominence of the Central Asian region in India’s security calculations.

    Why India needs effective continental policy

    • Factors intensifying geopolitical competition: China’s assertive rise, withdrawal of forces of the United States/North Atlantic Treaty Organization (NATO) from Afghanistan, the rise of Islamic fundamentalist forces, the changing dynamics of the historic stabilising role of Russia (most recently in Kazakhstan) and related multilateral mechanisms — the Shanghai Cooperation Organization (SCO), the Collective Security Treaty Organisation, and the Eurasian Economic Union — have all set the stage for a sharpening of the geopolitical competition on the Eurasian landmass.
    • Progress in ties: India’s continental strategy, in which the Central Asian region is an indispensable link, has progressed intermittently over the past two decades — promoting connectivity, incipient defence and security cooperation, enhancing India’s soft power and boosting trade and investment.
    • It is laudable, but as is now apparent, it is insufficient to address the broader geopolitical challenges engulfing the region.
    • To meet this challenge, evolving an effective continental strategy for India will be a complex and long-term exercise.

    Leveraging maritime power

    • India’s maritime vision and ambitions have grown dramatically during the past decade, symbolised by its National Maritime Strategy, the Security and Growth for All in the Region (SAGAR) and major initiatives relating to the Indo-Pacific and the Quad, in which maritime security figures prominently.
    •  It was also a response to the dramatic rise of China as a military power.
    • Importance: Maritime security is important to keeping sea lanes open for trade, commerce and freedom of navigation, resisting Chinese territorial aggrandisement in the South China Sea and elsewhere, and helping littoral states resist Chinese bullying tactics in interstate relations.
    • However, maritime security and associated dimensions of naval power are not sufficient instruments of statecraft as India seeks diplomatic and security constructs to strengthen deterrence against Chinese unilateral actions and the emergence of a unipolar Asia.
    • Bulwarks against Chinese maritime expansionist gains are relatively easier to build and its gains easier to reverse than the long-term strategic gains that China hopes to secure on continental Eurasia.
    • Centrality of Central Asia: Like Association of Southeast Asian Nations (ASEAN) centrality is key to the Indo-Pacific, centrality of the Central Asian states should be key for Eurasia.

    Challenges for India

    1] Connectivity challenge

    • Connectivity means nothing when access is denied through persistent neighbouring state hostility contrary to the canons of international law.
    • India has been subject for over five decades to a land embargo by Pakistan that has few parallels in relations between two states that are technically not at war.
    • Lack of alternative route: Difficulties have arisen in operationalising an alternative route — the International North-South Transport Corridor on account of the U.S.’s hostile attitude towards Iran.
    • With the recent Afghan developments, India’s physical connectivity challenges with Eurasia have only become harder.
    • The marginalisation of India on the Eurasian continent in terms of connectivity must be reversed.

    2] India must be aware of the limitations of the US

    • The ongoing U.S.-Russia confrontation relating to Ukraine, Russian opposition to future NATO expansion and the broader questions of European security including on the issue of new deployment of intermediate-range missiles, following the demise of the Intermediate-Range Nuclear Forces (INF) treaty will have profound consequences for Eurasian security.
    • The U.S. would be severely stretched if it wanted to simultaneously increase its force levels in Europe and the Indo-Pacific.
    • A major conflict — if it erupts in Central Europe, pitting Russia, Ukraine and some European states — will stall any hopes of a substantial U.S. military pivot to the Indo-Pacific. 
    • India should be cognisant of the limitations of geography, obvious gaps between strategic ambition and capacity but also the inherently different standpoints of how major maritime powers view critical questions of continental security.
    • India is unique as no other peer country has the same severity of challenges on both the continental and maritime dimensions.

    Way forward for India

    • India would need to acquire strategic vision and deploy the necessary resources to pursue our continental interests without ignoring our interests in the maritime domain.
    • This will require a more assertive push for our continental rights — namely that of transit and access, working with our partners in Central Asia, with Iran and Russia, and a more proactive engagement with economic and security agendas ranging from the SCO, Eurasian Economic Union (EAEU) and the Collective Security Treaty Organization (CSTO).
    • Striking the right balance between continental and maritime security would be the best guarantor of our long-term security interests.

    Conclusion

    India will need to define its own parameters of continental and maritime security consistent with its own interests. In doing so, at a time of major geopolitical change, maintaining our capacity for independent thought and action will help our diplomacy and statecraft navigate the difficult landscape and the choppy waters that lie ahead.

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  • The Chinese challenge

    Context

    Nearly 20 months after the border crisis began in Ladakh, China has pressed on with aggressive diplomatic and military gestures against India.

    Recent anti- India moves by China

    • Beijing recently renamed 15 places in Arunachal Pradesh, following the six it had done in 2017.
    • China justifies the renaming as being done on the basis of its historical, cultural and administrative jurisdiction over the area — these old names existed since ancient times which had been changed by India with its “illegal occupation”.
    • On January 1, 2022, Beijing’s new land border law came into force, which provides the People’s Liberation Army (PLA) with full responsibility to take steps against “invasion, encroachment, infiltration, provocation” and safeguard Chinese territory.

    India’s response

    • Delhi has run out of proactive options against Beijing that will force the Chinese leadership to change course on its India policy.
    • The two countries have an increasingly lopsided trade relationship driven by Indian dependency on Chinese manufacturing, a situation further worsened by the Government’s mishandling of the novel coronavirus pandemic.
    • To restore the status quo ante on the LAC as of April 2020, India undertook internal balancing of its military from the Pakistan border to the China border and external rebalancing through a closer partnership with the United States in the Indo-Pacific.
    • Because of the China factor, the U.S. is currently looking away even as India mistreats its minorities and its democracy stands diminished.
    •  India’s difficult diplomatic and military engagement with China is going to leave it more dependent on U.S. support, rendering India more vulnerable to American pressure on ‘shared values’.
    • With a rising China as its neighbour and a more self-centred U.S. – which is uncomfortable with India’s reliable partner, Russia — as its friend, Delhi continues to face difficult choices.

    Conclusion

    Put under the harsh glare, India has been found wanting in its ability to deal with future challenges. The immediate challenge, however, remains China. It cannot be wished away and must be tackled.

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