International Relations Handout – 5 (lecture -5) by Mr.

Iqbal Singh

BIMSTEC

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
(BIMSTEC) is a regional organization comprising seven Member States. This sub-regional
organization came into being on 6 June 1997 through the Bangkok Declaration. It constitutes
seven Member States: five deriving from South Asia, including Bangladesh, Bhutan, India,
Nepal, Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand. In the
year 2014 BIMSTEC Secretariat was established in Dhaka, Bangladesh.

The regional group constitutes a bridge between South and South East Asia and represents a
reinforcement of relations among these countries. BIMSTEC has also established a platform
for intra-regional cooperation between SAARC and ASEAN members.

The founding principles of BIMSTEC are as under:

➢ Cooperation within BIMSTEC will be based on respect for the principle of sovereign
equality, territorial integrity, political independence, no-interference in internal affairs,
peaceful co- existence and mutual benefit.
➢ Cooperation within BIMSTEC will constitute an addition to and not be a substitute for
bilateral, regional or multilateral cooperation involving the Member States.

Therefore one can say that BIMSTEC is based on panchsheel principles.

BIMSTEC has fourteen areas of cooperation which are listed below:

1. Trade and investment

2. Transport and Communication

3. Energy

4. Tourism

5. Technology

6. Fisheries

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7. Agriculture

8. Public health

9. Poverty alleviation

10. Counter terrorism and Trans-national crime

11. Environment and Disaster Management

12. People to people contacts

13. Cultural cooperation

14. Climate change

Recently, Fifth BIMSTEC Summit was held in 2022 in Colombo, Srilanka. Following are
the major outcomes:

BIMSTEC Charter: The signing and adoption of the BIMSTEC Charter was the major
highlight of this summit. It promises to re-energise the 25-year-old grouping at a time of
growing global uncertainties. This would help create institutional architecture of BIMSTEC.
The Charter has given the BIMSTEC a new orientation and concrete goals.

Under this Charter, the members are expected to meet once every two years. Moreover,
BIMSTEC now has an international personality. It has an emblem, it has a flag.

In line with the development of the organisation into a formal structure, the leaders of the
member-countries have agreed to divide the working of the grouping into seven segments, with

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India providing leadership to the security pillar.

Moreover, following agreements were also signed to enhance BIMSTEC cooperation:

• Master Plan for Transport Connectivity: The summit also saw the declaration of the
Master Plan for Transport Connectivity that would provide a framework for regional and
domestic connectivity.

• Member countries also signed a treaty on mutual legal assistance on criminal matters.

• A Memorandum of Association (MoA) on the establishment of BIMSTEC Technology

Transfer Facility (TTF) in Colombo, Sri Lanka.

• India will provide the (BIMSTEC) secretariat USD 1 million US dollars to increase its
operational budget.

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 INDIA and BIMSTEC

In recent times, India’s foreign policy has undergone an eastward shift. In this context
BIMSTEC has emerged as an important sub-regional grouping for India. In the last few years,
India’s engagement with BIMSTEC has been quiet robust.

➢ In the year 2016, India hosted a BRICS- BIMSTEC outreach summit.

➢ In the year 2018, Prime Minister Narendra Modi participated in the Kathmandu summit
and described BIMSTEC as a meeting point of India’s neighborhood first policy and
Act east policy.
➢ In the year 2019, BIMSTEC leaders were invited for the oath taking ceremony of the
prime minister, which reflects India’s shift from SAARC to BIMSTEC.

According to Dr. Jaishankar, “there is energy, mindset, possibility in BIMSTEC which fits
with India‘s optimistic vision for economic cooperation.”

Thus, attention has been consciously shifted from SAARC to BIMSTEC, thereby giving an
eastward shift to India’s neighborhood policy. BIMSTEC grouping has gradually emerged as a
key vehicle to take forward India’s regional, strategic and economic interest.

Following are the reasons for India’s interest in BIMSTEC:

1. Stagnation of SAARC: It has limited the scope of India’s growing economic

aspirations. SAARC has failed to ensure regional integration, for example SAARC
motor vehicle agreement. This has compelled India to sign BBIN. According to PM
Modi, regional integration in South Asia would go ahead through SAARC or outside it;
among all of us or some of us.

2. India is attempting to position BIMSTEC as an alternative to SAARC in order to isolate

Pakistan.

3. India’s desire is to link South Asia to the economically dynamic South East Asia.

4. To reassure South Asia that the region can work together to achieve common goals with
India playing its due role.

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However, BIMSTEC has also been facing challenges which can affect performance of
BIMSTEC. Following are the challenges:

➢ India is currently largest contributor to BIMSTEC secretariat budget. Besides India,

other members are not resource rich. Therefore, in order to make BIMSTEC more
robust, India will have to consider allocating more resources. India’s generosity would
be a key test of its commitment to the sub-regional grouping.
➢ India must counter impressions that BIMSTEC is an India dominated block. Otherwise
small members of BIMSTEC will also experience SAARC like insecurities. Therefore,
India will need to show sensitivity towards concerns of smaller neighbors in BIMSTEC.
➢ With respect to China, India will have to carefully navigate through the emerging
regional geo-politics in BIMSTEC. Also as a part of its BRI project China has been
making aggressive investment in BIMSTEC countries except Bhutan.
➢ BIMSTEC performance has also been modest. It has organized only five summits since
1997.
➢ In order to fulfill India’s interest, India will also have to consider including Maldives
into BIMSTEC, at least as an observer member.
➢ Smaller countries in BIMSTEC may not agree with India’s vision to replace SAARC
with BIMSTEC.

Therefore there are still challenges which India will face in order to position BIMSTEC in place
of SAARC. However, there is hope after the fifth summit, which was able to articulate a vision
for Bay of Bengal region heading towards a peaceful, prosperous and sustainable future.

Way Forward:

Prime Minister Narendra Modi has suggested following measures to strengthen BIMSTEC:

• Mr. Modi called for a Free Trade Agreement among the member countries. As the region
is facing challenges of health and economic security and stressed the need for solidarity
and cooperation, the FTA will make the Bay of Bengal a bridge of connectivity, a
bridge of prosperity, a bridge of security.

• He also mentioned the necessity for coastal shipping ecosystem and electricity grid
interconnectivity, as two of the necessary components of the evolving shape of
BIMSTEC.

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Ultimately though, for the revived grouping to realise its trade and economic potential, India
will have to take a leadership role in assuaging any apprehensions among the smaller members
of intragroup power imbalances and strive to facilitate greater cross-border connectivity and
flow of investments by lowering barriers to the movement of people and goods.

India-Nepal Relations

As close neighbors, India and Nepal share unique ties of friendship and cooperation
characterized by an open border and deep-rooted people-to-people contacts of kinship and
culture (Roti – Beti Ka Naata). There has been a long tradition of free movement of people
across the border. Nepal shares a border of over 1850 km with five Indian states – Sikkim,
West Bengal, Bihar, Uttar Pradesh and Uttarakhand.

Moreover, Nepal is strategically located as it acts as a natural security buffer between India
and China. It is also critical for India’s internal security as harmonious relations between both
countries is necessary to nab terrorists and maoist groups having Nepal as their base.

The India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special
relations that exist between India and Nepal. Treaty was signed with an objective to strengthen
the relationship between the two countries by recognizing historical values and perpetuating
peace in the region. Following are the major provisions of the treaty:

➢ Both countries acknowledge each other’s territorial integrity and sovereignty.

➢ National treatment of each other’s citizens in economic matters: Nepalese citizens

avail facilities and opportunities on par with Indian citizens in accordance with the
provisions of the Treaty. Nearly 6 million Nepalese citizens live and work in India.
➢ Arms imports of Nepal: Nepal would consult India whenever they undertake any
arms imports from any nation other than India.
➢ Open borders.

India’s Development Assistance to Nepal:

Government of India’s development assistance to Nepal is a broad-based programme focusing
on creation of infrastructure at the grass-roots level, under which various projects have been
implemented in the areas of infrastructure, health, water resources, education and rural &

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community development.

In recent years, India has been assisting Nepal in development of border infrastructure through
upgradation of 10 roads in the Terai area; development of cross-border rail links at Jogbani-
Biratnagar, Jaynagar-Bardibas; and establishment of Integrated Check Posts at Birgunj,
Biratnagar, Bhairahawa, and Nepalgunj.

In 2019, Prime Ministers of India and Nepal jointly inaugurated through video conference,
South Asia’s first cross-border petroleum products pipeline from Motihari in India to
Amlekhgunj in Nepal.

Apart from grant assistance, Government of India has extended Lines of Credit of USD 1.65
billion for undertaking development of infrastructure, including post-earthquakereconstruction.

Earthquake 2015:

When a devastating 7.8 magnitude earthquake struck Nepal in 2015, the Government of India
swiftly dispatched National Disaster Response Force (NDRF) teams and special aircrafts with
rescue and relief materials to Nepal.

The total Indian relief assistance to Nepal amounted to over US$ 67 million. The
Government of India announced a post-earthquake reconstruction package of US$ 1
billion (which comprises US$ 250 million grant and US$ 750 million concessional Line of
Credit) during the International Conference on Nepal’s Reconstruction held in Kathmandu in
2015.

Economic relations:

Bilateral trade is over US$ 7 billion which makes India as Nepal’s largest trading
partner. India’s exports to Nepal have grown over 8 times in the past 10 years. Because of
its geographical constraints, Nepal has found itself heavily reliant on India. India has provided
transit facility to Nepal for the third country trade. Both public and private sectors of India
have invested in Nepal.

The trade statistics reveals phenomenal increase in the volume of bilateral trade over the years
between the two countries. However, Nepal has escalating trade deficit with India. Nepalese
local enterprises fail to grow because they are unable to compete against lower pieced Indian

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products that flood the market. Nepal and India have concluded bilateral Treaty of Transit,
Treaty of Trade and the Agreement of Cooperation to control unauthorized Trade.

Indian Investment in Nepal:

Indian firms are among the largest investors in Nepal, accounting for about 30% of the total
approved foreign direct investments. There are about 150 Indian ventures operating in Nepal
engaged in manufacturing, services (banking, insurance, dry port, education and telecom),
power sector and tourism industries.

Water Resources:
Cooperation in water resources primarily concerning the common rivers is one of the most
important areas of bilateral relations. A large number of small and large rivers flow from Nepal
to India and constitute an important part of the Ganges river basins. These rivers have the
potential to become major sources of irrigation and power for Nepal and India. Both countries
have three treaties to regulate water sharing:

➢ In 1954, India and Nepal signed Kosi treaty. This river causes tremendous flooding
and is also known as sorrow of Bihar. As per the treaty both countries agreed to
cooperate to manage Kosi flooding. India, under the treaty, committed to create a
barrage dam, which can help regulate Kosi’s water flow. India constructed the barrage
and Nepal agreed to give its management rights to India for 199 years. This has been
the cause of much discontent among certain sections of Nepalese society.

➢ In 1959, India and Nepal also signed the Gandak River treaty. As per the treaty both
sides can utilize water from the river to generate 20,000 MW electricity.

➢ In 1996, India and Nepal signed Mahakali treaty. As per the treaty India has agreed
to undertake the creation of 3 dams at Sarda, Tanakpur and Pancheshwar. Both
sides have agreed to share costs. However, there has been no progress on these
projects owing to pending social and environmental impact assessment.

Moreover, following mechanism and treaty has been signed to harness the full potential of
hydropower and management of common rivers:

➢ A three tier bilateral mechanism established in 2008, to discuss issues relating to

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 cooperation in water resources, flood management, inundation and hydropower
between the two countries, has been working well.

➢ An important Power Trade Agreement was signed between the two countries in
2014 paving way for the power developers of the two countries to trade electricity
across the border without restrictions. The agreement shall be valid for 50 years. Under
the agreement, Nepal would give license to Indian firms to undertake 28 surveys in
Nepal to explore 8,000 MW power generation. Private/public power developers from
India have reached agreements with the Investment Board of Nepal to develop two
mega hydropower projects – Upper Karnali and Arun III. GMR will establish a plant
in Karnali to export 900 MW electricity to India.

➢ Recently in 2024, both nations signed a long-term agreement for the export of
power. Agreement would ensure export of 10,000 MW of power in the next 10 years.

New Partnership in Agriculture:

During the visit of Prime Minister of Nepal Mr. K. P. Sharma Oli to India in April 2018, the
“India-Nepal New Partnership in Agriculture” was launched with a focus on collaborative
projects in agricultural research, development and education. This is an important and timely
initiative as vast populations of the two countries predominantly depend on agriculture and
related activities for their livelihood.

Defence Cooperation:

India and Nepal have wide-ranging cooperation in the defence sector. India has been assisting
the Nepal Army (NA) in its modernisation by supplying equipment and providing training. A
number of defence personnel from Nepal Army attend training courses in various Indian Army
training institutions.

The Indo Nepal Battalion-level Joint Military Exercise “SURYA KIRAN” is conducted
alternately in India and in Nepal. Since 1950, India and Nepal have been awarding each
other’s Army Chief with the honorary rank of General in recognition of the mutual
harmonious relationship between the two armies.

The Gorkha regiments of the Indian Army are raised partly by recruitment from hill districts
of Nepal. Currently, about 32,000 Gorkha Soldiers from Nepal are serving in the Indian Army.

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Education:

Over the years, India‘s contribution to the development of human resources in Nepal has been
one of the major aspects of bilateral cooperation. GoI provides around 3000
scholarships/seats annually to Nepalese nationals for various courses at the
Ph.D/Masters, Bachelors and plus–two levels in India and in Nepal.

Culture
GoI has been taking initiatives to promote people-to-people contacts in the fields of art &
culture, academics and media. India is establishing an e-library system across Nepal.
Furthermore, MoUs/Agreements have been signed between:

• Sahitya Kala Akademi (India) and Nepal Academy

• Doordarshan (India) and Nepal TV

• Press Council of India and Press Council of Nepal

• Lalit Kala Akademi (India) and Nepal Academy of Fine Arts

• GoI and Government of Nepal for cooperation on youth affairs

• Sangeet Natak Akademi (India) and Nepal Academy of Music & Drama

• GoI and Government of Nepal for twinning of sister cities Kathmandu-Varanasi,

Lumbini-Bodhgaya and Janakpur-Ayodhya.

• Swami Vivekananda Centre for Indian Culture was set up in Kathmandu to

showcase the best of Indian culture. India International Centre for Buddhist
Culture and Heritage was inaugurated in Lumbini, Nepal.

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 China’s growing role in Nepal
India and Nepal have always shared close relationship of friendship and cooperation. However,
Nepal has tilted towards China. This tilt is noticeable since Madhesi agitation of 2015.

Madhesi’s live in the terai belt of Nepal neigbouring India. They were very unhappy with
gerrymandered provinces outlined by 2015 constitution of Nepal. Thus, they started
massive protest to demand amendments and blocked all routes to India. An economic
blockade was imposed on Nepal, causing huge shortages of food, fuel and medicine
supplies. During this crisis, Nepal sought help from India.

However, India sympathized with madhesi community and supported their demand of
amending new constitution. New Delhi was blamed for using an (unofficial) economic
blockade as a pressure tactic to politically influence Kathmandu, which contributed to
souring of bilateral relations toward the end of 2015. India had demanded to delay
promulgation of the Constitution until concerns of Terai people are not addressed.

Indian stand during the madhesi agitation caused a strong anti-India sentiment in Nepal.
Nepal was alienated from India. Moreover, Communist party of Nepal led by K.P.
Sharma Oli has been generous towards communist china. Since 2015, Mr Oli has been the
PM for majority of the time. He recently lost power in July, 2021 to Sher Bahadur Deuba
(Nepali congress).

It is noteworthy, Oli and his allies had secured a nearly two-thirds majority in Parliament in
the 2018 polls. His triumph is attributed largely to the way he had stood up to India during

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madhesi agitation as Nepal had refused to delay promulgation of the Constitution without
addressing the concerns of the people in the Terai region. Oli in Nepal won the image of a
nationalist, especially after he moved closer to China by proposing trade and transit
arrangements to address the shortage of essential commodities.

Thus, since 2015 Nepal’s engagement with China has increased. It has signed
multipleagreements with China which are listed below:

➢ Nepal – China rail link agreement

➢ Joint military exercise pact (Sagarmatha Friendship)

➢ Rasuwagadhi – Syabrubesi road link

➢ Nepal has joined BRI

➢ 1200 mw project on Budhi river by Gezhouba group

➢ Nepal have started accessing internet through a chinese optical fibre link laid
across the Himalayan mountains
➢ Transit and transportation agreement: China has promised access to 4 seaports
(Tianjin, Shenzhen, Lianyungang and Zhanjiang) and 3 land ports for 3rd country
trade.
➢ Nepal banned high denomination Indian currency notes (Rs 2000, 500 and 200).
➢ Recently, China and Nepal has agreed to build the Trans-Himalayan Multi-
Dimensional Connectivity Network (THMCN). It is an economic corridor
proposed in 2019 between Nepal and China as a part of China's Belt and Road
Initiative. The corridor aims to enhance connectivity in ports, roads, railways,
aviation, and communications. It would pave the way for more integration between
China and the rest of South Asia.
➢ Himalayan Quad: Many experts have argued that China is trying to form a
Himalayan Quad consisting of four Himalayan countries i.e. China, Pakistan,
Afghanistan and Nepal, which could have a very negative impact on India’s security
and strategic environment.

Thus, china has made significant inroads into Nepal to counterbalance India. Growing
China- Nepal relations under the Belt and Road Initiative (BRI) and enhanced Chinese
investment in connectivity and infrastructure projects to inter-link the two countries in

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several sectors indicated India’s waning influence in Nepal. This has emerged as a major
foreign policy challenge for India. To overcome this challenge India has developed a new
vision to address Nepal’s concerns:

➢ India has softened positions on Madhesis. India has urged madhesi community
to work through political processes rather than agitation or boycott of elections.
Madhesi issue was also not discussed during recent high level visits between India
and Nepal.
➢ Future of bilateral ties includes India to develop agriculture, railway links
and inland waterways in Nepal.

➢ Enhancing connectivity and people to people contacts has emerged as a priority.

As per above vision following major decisions have been taken:

➢ Both prime ministers have agreed to review, adjust and update the treaty of peace
and friendship of 1950 and other bilateral agreements.
➢ In 2018, PM Modi visited Janaki temple in Janakpur, which is dedicated to hindu
goddess Sita. India has relied on soft power to present a positive image of
India to the people of Nepal, by visiting places underlining cultural
commonalities between the two countries such as Janakpur, where the Hindu
god Rama’s wife Sita was born. He also inaugurated a bus service between
Janakpur and Ayodhya to promote religious tourism.
➢ Both countries exchanged a MOU to build a strategic railway line connecting
Bihar‘s Raxaul city to Kathmandu. It will be a real game changer. This rail link
once established can provide a channel to travel from Rameshwaram to
Mansarovar. This can be a great push to the model of regional integration and
India will be able to putup an alternative to the Belt and Road initiative.
➢ PM Modi focused on bilateral economic cooperation by laying the foundation for
the Arun III 900-megawatt hydroelectricity project.
➢ Both PM’s jointly inaugurated the Motihari – Amlekhgunj petroleum product
pipeline. It is 69 km long and first ever cross border petroleum product pipeline in
South Asia.
➢ PM Modi has given a new 5T (Tradition, Trade, Tourism, Technology and

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 Transport) formula for Nepal.

According to PM Modi, “New Delhi is ready to be the Sherpa to help Nepal scale
the mountain of success.” Thus, it appears that India has made sincere attempts to recover
its lost ground in Nepal. However, relations are again turning bitter because of the
recent Kalapani territorial dispute.

Kalapani territorial dispute

In 2020, Nepal’s parliament, in a rare show of unanimity, passed a constitution amendment

Bill to approve the country’s new map that includes Kalapani, Lipulekh and
Limpiyadhura which figure in Indian maps. Bill has been signed by the President and now
new Nepal map is part of the constitution. Following is India’s frosty response:

“We have noted that the House of Representatives of Nepal has passed a constitution
amendment Bill for changing the map of Nepal to include parts of Indian Territory. This
artificial enlargement of claims is not based on historical fact or evidence and is not
tenable. It is also violative of our current understanding to hold talks on outstanding
boundary issues”

This battle over the historical accuracy of a geographical territory is one that has been
brewing between the two neighbouring countries for the past several decades now. The bone
of contention is the Kalapani-Limpiadhura-Lipulekh trijunction between Nepal-India
and China (Tibet).

Located on the banks of the river Kali at an altitude of 3600m, the Kalapani territory lies
at the eastern border of Uttarakhand in India and Nepal’s Sudurpashchim Pradesh in
the West. India claims the area is part of Uttarakhand’s Pithoragarh district, while Nepal
believes it to be part of its Dharchula district. Matters came to a boil recently, when India
opened an 80-km road linking Uttarakhand with Lipulekh, across the disputed piece of
land.

While the territory is of strategic importance to India and Nepal, the issue is complicated by
the contest over the historicity of cartographic evidence that both sides claim to be

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most accurate. The issue in itself goes back to the early 19th century, when the British
ruled India and Nepal was a conglomeration of small kingdoms under the reign of King
Prithvi Narayan Shah.

On November 1, 1814, the British had declared war on Nepal. The war went on for the next
two years, involving a series of campaigns. In 1815, the British general, Sir David
Ochterlony, managed to evict the Nepalese from Garhwal and Kumaon. A year later,
the

War came to an end with the signing of the Sugauli treaty (1816). The treaty delimited the
boundaries of Nepal, as it stands today.

The fifth article of the treaty stated: “The Rajah of Nepal renounces for himself, his
heirs, and successors all claim to or connection with the countries lying to the west of
the river Kali and engages never to have any concern with those countries or
inhabitants thereof.”

Consequently, the river Kali marked the western border of Nepal. However, there is no
clear consensus on what is the precise location of the river Kali, giving rise to the
dispute over whether the land consisting Kalapani-Limpiadhura-Lipulekh is part of present
day India or Nepal.

While some scholars suggest that the lack of consensus is due to the shift in the course
of the river over time, there are others who say that the British cartographers in the
consequent years kept shifting the line demarcating the river eastwards for strategic
reasons.

By enacting the constitution amendment, Nepal has etched its territorial claim in stone
which would make any concession by this or any future government of Nepal virtually
unthinkable.

After the vote, Nepalese took a conciliatory position saying “We are for starting dialogue
soon. The problem will be resolved through diplomacy.”

However, million dollar question is what will diplomacy achieve? India should be
prepared to engage in a dialogue on this and other outstanding border issues, but Nepal’s
brinkmanship has made it much more difficult to explore a mutually acceptable solution.

However, India has clarified that “unilateral act is not based on historical facts and

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evidence” and that it would not accept “artificial enlargement of territorial claims”. The
Ministry of External Affairs has also said that it hopes that Nepal will create a positive
atmosphere for dialogue to resolve the issue.

Visit of Sher Bahadur Deuba to India in 2022:

Recently in 2022, newly elected PM of Nepal visited India and led to following
breakthroughs in the relationship:
➢ Solu Corridor: Indian side handed over the Solu Corridor, a 90-km, 132 kV power
transmission line built for Rs 200 crore under an Indian line of credit. The line will
help bring electricity to several remote districts in northeastern Nepal by
connecting them to the country’s national grid.
➢ RuPay card launched in Nepal. This is expected to facilitate bilateral tourist flows.
Nepal is the fourth country, after Bhutan, Singapore and the UAE, where RuPay
is live.
➢ Nepal signed a framework agreement to join the India-led International Solar
Alliance (becoming the 105th member country).
➢ Signed three more pacts – a memorandum of understanding (MoU) on enhancing
technical cooperation in the railways sector, and two agreements between Indian
Oil Corporation and Nepal Oil Corporation for the supply of petroleum
products for five years and for sharing of technical expertise.
➢ Joint Vision Statement on Power Sector Cooperation: India called for taking full
advantage of opportunities in the power sector, including through joint
development of power generation projects in Nepal and development of cross-
border transmission infrastructure. Nepal also appreciated India's recent cross-
border electricity trade regulations that have enabled it to access India's market and
trade power with India. Nepal exports its surplus power to India.
➢ They agreed to expedite work on the delayed Pancheshwar multipurpose dam
project (on Mahakali river) that is considered to be a game changer for the
development of the region.
➢ Border Issue: Nepalese Prime Minister urged his Indian counterpart Narendra Modi
to take steps to resolve a boundary dispute. The Indian side made it clear both
countries need to address the boundary issue through dialogue and to avoid the
politicisation of such issues.

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Changing Political dynamics of Nepal and its impact on India:

Nepal did undergo elections in November 2022, which triggered political storm of warring
and shifting coalitions in the Himalayan nation and India watched keenly. Under Prachanda’s
leadership, the Maoist Centre had fought the elections in coalition with Sher Bahadur
Deuba’s Nepali Congress (NC). However, there was a fall out in the pre poll coalition over
claims to the post of Prime Minister, and Prachanda switched sides to team up with the K.P.
Sharma Oli-led UML (causing dismay among Indian policymakers).

Prachanda was sworn in as Prime Minister on December 26, 2022. However, the NC decided
to support Prachanda in a vote of confidence, suggesting that since he had emerged as a
consensus Prime Minister supported by 268 members in a 275-member House, he should also
go for a national consensus apolitical President. Though Prachanda had earlier agreed to
support UML candidates for the post of President (due for election in March 2023) and
Speaker (in return for making him Prime Minister), he began to backtrack - triggering a
change in Nepal’s political landscape.

Thus, relations between Mr. Oli and Prachanda soured with Mr. Oli accusing Prachanda of
‘betrayal’ and Prachanda claiming that he wanted to ensure political stability by taking all
parties along. The opportunistic Oli-Prachanda alliance collapsed and by end-February,
the UML withdrew support. In order to stay in power, Prachanda went back to the NC,
ready to support its candidate for President. NC returned the favour by helping Prachanda
win a fresh vote of confidence, with the UML sulking in the opposition. (To the much delight
of Indian policy makers).

A complex power-sharing arrangement has been worked out with Prachanda

continuing as Prime Minister for two years, followed by the Madhav Nepal (CPN-
Unified Socialist) for a year, and then the NC leader, Sher Bahadur Deuba, for the
remaining two years. ‘Prachanda’ has appointed Narayan Prakash Saud, a Nepali
Congress leader, as Foreign Minister of Nepal.

From India's perspective, the continuance of a Parchanda – Deuba alliance is a

favourable scenario. The Nepali Congress has old ties to India, and in the past under

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Sher Bahadur Deuba’s prime ministership, India-Nepal ties recovered to a great extent
from the low to which they had sunk under Prime Minister K P Oli's watch.

Recent visit of the Prime Minister of Nepal Pushpa Kamal Dahal

‘Prachanda’, to India

Recently in 2023 newly elected Nepalese PM visited India and several key initiatives were
launced which are listed below:

➢ Both countries vowed to resolve the vexed boundary dispute (kalapani) under the
spirit of friendship.

➢ Inauguration of the twin Integrated Check Posts (ICPs), in Rupaidiha in India and
Nepalgunj in Nepal.

➢ Various MoUs were signed for:

1. Development of Dodhara Chandani check post along India-Nepal Border

2. Development of Phukot- Karnali Hydroelectric Project

3. Cross border payments

4. Laying the second cross-border petroleum pipeline between Siliguri in

India and Jhapa in Nepal

5. Extension of Motihari-Amlekhganj Pipeline to Chitwan.

➢ Power sector: India agreed to the first trilateral power trade from Nepal to
Bangladesh through India for up to 40 megawatts of power.

➢ Treaty of Transit: Revised treaty of transit that would provide Nepal access to
inland waterways of India.

➢ Hydropower cooperation: For years, there have been statements about cooperation
in the hydropower sector, but, gradually, things are looking up. Nepal is endowed
with an economically viable potential of 50,000 MW of hydropower, but till a
decade ago, had an installed capacity of barely 1,200 MW, making it dependent on
electricity imports from India. in this regard following decision has been taken:

VAJIRAM & RAVI 18

 i) Both sides have finalised a long-term power trade agreement targeting the export
of 10,000 MW within a 10-year time frame.

ii) The 900 MW Arun III project started in 2018 by the SJVN (formerly the Satluj
Jal Vidyut Nigam) will be operational soon.

iii) Announcements were made about the SJVN signing the 669 MW Lower Arun
project and the NHPC Limited, the 480 MW Phukot-Karnali projects.

➢ Connectivity: Relations took a downturn in 2015 with the economic blockade.

Repairing the relationship has been a slow process but results are now visible,
leading Mr. Modi to recall and revive the old acronym he had coined HIT to
highlight the focus on connectivity in the context of India – Nepal relations. HIT -
Highways, Infoways, and Transways.

Following are major breakthroughs in connectivity:

1. Line of credit of $680 million by India to fund three major transmission

corridors in Nepal- Bheri Corridor, Nijgadh-Inaruwa Corridor and
Gandak-Nepalgunj corridor.

2. India to fund and build two additional bridges across the Mahakali River.

3. Inaugural run of the cross-border freight rail operations between Bathnaha in

India and Nepal custom yard on the Jogbani-Biratnagar rail link.

4. Handing over of Kurtha-Bijalpura rail section of the Jaynagar-Kurtha

passenger rail link to Nepal.

Musical Chairs of Prime Ministers in Nepal continue

Recently in July, 2024 K P Sharma Oli was appointed Nepal's Prime Minister to lead the new
coalition government that faces the daunting challenge of providing political stability in the
country. Mr. Oli succeeds Pushpa Kamal Dahal Prachanda who lost the vote of confidence.
President Ram Chandra Paudel appointed Oli as the new Prime Minister of the Communist
Party of Nepal-Unified Marxist Leninist (CPN-UML)-Nepali Congress (NC) coalition.

As per a deal reached between the Nepali Congress and the CPN-UML, the two largest
parties in Parliament, the UML’s K.P. Sharma Oli staked claim to lead the government.

VAJIRAM & RAVI 19

According to the deal, Mr. Oli would govern for a year and a half, and set the ground for
constitutional amendments and then hand over power to the NC’s Sher Bahadur Deuba to
oversee the 2027 elections.

Political stability, however, has been a chimera in Nepal. Himalayan nation has faced
frequent political turmoil as the country has seen 14 governments in the past 16 years after
the introduction of the Republican system.

Impact on India: India’s primary concern in the immediate run would be whether Oli, seen
as pro-China in the past, will go ahead and sign the BRI implementation plan with China
during his term in office. Nepal under Parchanda had backed down from signing the
agreement.

However, despite his alleged China tilt, and the controversy over Nepal’s new map during his
previous term in office, Oli has been looking to build ties with India, acknowledging the role
its neighbour can play in Nepal’s development. In fact, the chief of his party’s
foreign policy department, Rajan Bhattarai, said recently that CPN-UML doesn’t believe that
Nepal can progress or the interest of Nepalese people could be promoted by pursuing
anti-India policy. The fact that he will be dependent on support from pro-India NC will also
be a determining factor. NC has maintained that while financing BRI plans, Nepal must
accept only grants, and not loans, from China.

Challenges plaguing the relationship:

➢ Kalapani Border Dispute.

➢ China’s influence: China has increased its economic engagement with Nepal
through projects under its Belt and Road Initiative (BRI). Also, there are concerns
over Chinese interference in Nepal’s politics.

➢ Trust Gap: Due to India’s slow pace of project implementation and the alleged
perception of India’s interference in Nepal’s politics.

➢ Security issues: Porous border facilitates arms smuggling, terrorist activities and
flow of counterfeit Indian currency, all of which pose serious security risks to India.

➢ Gurkha issues: Relations came under strain when Nepal government blocked
recruitment of Nepalese Gorkhas for the Indian Army’s Gorkha Regiment claiming

VAJIRAM & RAVI 20

 that the Agnipath Scheme violated the 1947 Tripartite Agreement signed between
the two countries and the UK.

➢ Connectivity issues: Despite several requests from Nepal, India refused to open
more air routes to Nepal as it requires opening up India's airspace close to its border
with China.

➢ Treaty of Peace and Friendship, 1950: India’s lackadaisical approach for Nepal’s
request to revise the 1950 Friendship treaty is an irritant in the relationship.

Way forward for India – Nepal relations:

There is a sense of discomfort in Nepal to the notion of being under siege as the country is
landlocked and dependent on transit through India for trade with third countries. There is a
need to address such anxieties by developing a bilateral relationship of mutual trust and
mutual benefit.

Nepal as a developing economy will need investment in key areas of its growth such as
agriculture, manufacturing, information technology and tourism. India must focus on these
areas and assist Nepal in its development. India’s aid to the country has surged
significantly but Nepal needs more investment, economic cooperation and timely
completion of bilateral projects.

New Delhi can correct the trade imbalance with the Himalayan country only by
pouring in more investment and assisting it in the areas of manufacture. India has an
opportunity to capitalize on people-to-people contacts facilitated by its open border, suitable
geographic location and historical and cultural ties (the factors that place India in an
advantageous position compared with China) that exist between the two countries
predominantly populated by Hindus.

Following steps can help strengthen the relationship:

➢ Emphasizing on digital connectivity initiatives such as e-governance and cross-

border digital collaborations can enhance connectivity and create economic
opportunities.

➢ Bilateral mechanisms are needed to discuss contentious issues such as border

VAJIRAM & RAVI 21

 disputes. Boundary dispute resolution between India and Bangladesh can serve as a
model.

➢ Multilateral platforms such as BBIN, BIMSTEC, SAARC must be utilised to serve

common interests such as climate change, disaster management, and regional
security.

➢ Sustained engagement and limited interference by India in Nepal’s politics.

➢ Enhancement of air connectivity between the countries which is crucial for Nepal’s
economy.

➢ Revisiting Friendship treaty as recommended by Eminent Persons Group set up

jointly by the two countries.

➢ Organizing joint cultural events, film festivals, and wellness retreats to showcase
India's rich heritage to influence public opinion.

Oli’s return to power necessitates a recalibrated approach from India. While it is tempting to
view his leadership through the lens of past conflicts, it is crucial for India to adopt a
forward-looking strategy that acknowledges the changing dynamics. The stakes are high:
maintaining a robust relationship with Nepal is essential for India’s security, economic
interests, and regional stability.

India must navigate this diplomatic tightrope with finesse. Engaging with Nepal on mutually
beneficial economic projects, emphasising people-to-people ties, and addressing
Kathmandu’s sovereignty concerns can pave the way for improved relations. India’s support
in sectors such as healthcare, education, and disaster management can further solidify this
partnership.

VAJIRAM & RAVI 22

 India-Bhutan relations

India and Bhutan enjoy unique ties of friendship and cooperation, which are characterized by
utmost trust, goodwill and mutual understanding. The special relationship has been sustained
by a tradition of regular high level visits and dialogues between the two countries.
Furthermore, bilateral relations are marked by strong diplomatic, economic and cultural
relations.

Diplomatic relations between India and Bhutan were established in 1968 with the
establishment of a special office of India in Thimphu. Before this our relations with Bhutan
were looked after by our Political Officer in Sikkim. The basic framework of India- Bhutan
bilateral relations was the Treaty of Friendship and Cooperation signed in 1949 between
the two countries, which was revised in February 2007. The Golden Jubilee of the
establishment of formal diplomatic relations between India and Bhutan was celebrated in the
year 2018.

As per 1949 Treaty, India was supposed to guide Bhutan’s foreign policy. However, in 2006
Bhutan transitioned from an absolute monarchy to parliamentary democracy with
constitutional monarchy. Democratic Bhutan started demanding a review of 1949 treaty,
which allegedly violated Bhutan’s sovereignty. India accepted Bhutan’s demand and
friendship treaty was revised in 2007.

2007 friendship treaty ended India’s guidance of Bhutan’s foreign policy. However it
stated that the two neighbors “shall cooperate closely with each other on issues relating to
their national interests. Neither government shall allow the use of its territory for activities
harmful to the national security and interest of the other." The India-Bhutan Friendship
Treaty not only reflects the contemporary nature of our relationship but also lays the
foundation for their future development in the 21st century.

India has been an important Security partner for Bhutan. The Indian Military Training Team
(IMTRAT) is permanently based in western Bhutan and assist and trains the Royal Bhutan
Army. Moreover, The Eastern Air command of Indian Air force provides Bhutan with Air
security, as the country does not have an air force. India’s Border Road Organisation, has
built the majority of roads in Bhutan under project ‘DANTAK’.

VAJIRAM & RAVI 23

Cultural cooperation is also a very important pillar of India – Bhutan relationship. Buddhism
connects both the countries on similar ideologies (soft power). The India-Bhutan
Foundation, established in 2003, aims to enhance people-to-people exchanges in the cultural
field.

Bilateral Trade

India is Bhutan's largest trading partner. India accounts for more than 80 % of Bhutan’s total
imports and exports. Balance of trade is in India’s favour.

The trade between the two countries is governed by the India Bhutan Trade and Transit
Agreement 1972 which was last renewed in November 2016 (agreement on trade,
commerce and transit). The Agreement established a free-trade regime between the two
countries. As per the provisions of the bilateral trade agreement, trade between two countries
is to be transacted in Bhutanese Ngultrums and INR. The Agreement also provides for duty-
free transit of Bhutanese exports to third countries (Bhutan is dependent on India for its
external trade as it is a land-locked nation).

Since 1961, India has been giving financial assistance to Bhutan’s five year development
plans. During the recent visit of Bhutan’s Prime Minister Dr Lotay Tshering, India
announced grant assistance of 4500 for Bhutan’s 12th five year plan (November 2018 –
October 2023). Moreover, India also announced 400 crores as transitional trade support
facility.

Hydropower Cooperation

Hydropower projects in Bhutan are an example of win-win cooperation, providing a reliable

source of inexpensive and clean electricity to India, generating export revenue for Bhutan and
cementing our economic integration. India has helped Bhutan in developing dams for
hydroelectricity through a combination of aid and loans and buys excess electricity at low
prices. So far, Government of India has constructed three Hydroelectric Projects (HEPs) in
Bhutan totaling 1416 MW (336 MW Chukha HEP, 60 MW Kurichhu HEP and 1020 MW
Tala HEP), which are operational and exporting surplus power to India About three-fourth of
the power generated is exported and rest is used for domestic consumption.

The ongoing cooperation between India and Bhutan in the Hydropower sector is covered
under the 2006 Agreement on Cooperation in Hydropower and the Protocol to the 2006

VAJIRAM & RAVI 24

agreement signed in March, 2009. Under this Protocol, Government of India has agreed to
assist Royal Government of Bhutan in developing a minimum of 10,000 MW of hydropower
and import the surplus electricity from this to India by the year 2020.

During the recent visit of Prime Minister Modi to Bhutan, both Prime Ministers formally
inaugurated the recently completed 720 MW Mangdechhu Hydroelectric Plant. Both Prime
Ministers also resolved to continue working together to expedite the completion of other
ongoing projects such as Punatsangchhu-1, Punatsangchhu-2 and Kholongchhu.

Educational and Cultural Cooperation

A large number of college going Bhutanese students are studying in India. It is estimated that
approximately 4000 Bhutanese are studying in Under Graduate courses in Indian Universities
on self-financing basis. Moreover, Government of India scholarships are granted to
Bhutanese students at Undergraduate level every year to study in prestigious Indian
Institutions of higher learning e.g. Nehru- Wangchuck Scholarships, Ambassador’s
Scholarship, ICCR Scholarship, Nalanda University scholarship, SAARC scholarship and
ITEC Training Programme scheme.

Prime Minister Modi’s visit to Bhutan in 2019

Besides inaugurating Mangdechhu, PM Modi also inaugurated ground earth station of South
Asian satellite in Thimpu constructed by ISRO. Moreover, 10 MOUs were also signed in the
field of space research, aviation, IT, power and education.

Prime Minister Modi also reiterated Government of India’s commitment to advancing the
economic and infrastructural development of Bhutan. He congratulated the Government and
the people of Bhutan for the Kingdom’s imminent graduation to the category of a Middle-
Income country. He complimented the people of Bhutan for this achievement while
simultaneously preserving their rich cultural heritage and precious environment, in line with
Bhutan’s unique development philosophy of ‘Gross National Happiness’.

Moreover, both Prime Ministers also launched the facility of use of Indian-issued RuPay
cards in Bhutan, which would greatly facilitate Indian travellers to Bhutan by reducing the
need to carry cash, while at the same time boosting the Bhutanese economy and further
integrating the economies of both countries.

VAJIRAM & RAVI 25

Assistance during the Covid-19 Pandemic:

Bhutan was the first country to receive the Made in India Covishield vaccines under Ministry
of External Affairs Vaccine Maitri Initiative. The first consignment of 150,000 vaccines was
gifted on January 20, 2021. On March 22, 2021, the Government of India (GoI) gifted a
second consignment of 400,000 doses of the ‘Made in India’ COVID-19 vaccine to the Royal
Government of Bhutan (RGoB) in keeping with the uniquely close and friendly relations
between both countries.

The Government of India has handed over a total of 13 consignments of medical supplies,
portable X-Ray machines, essential medicines and medical equipment in addition to the
vaccine consignments to strengthen Bhutan‘s fight against the COVID-19 pandemic.

Recent visit of The King of Bhutan to India in 2023

Jigme Khesar Namgyel Wangchuck visited India to strengthen the bilateral relationship
between the two countries. Following are the major outcomes of the summit:

➢ Support to Bhutan: Additional Standby Credit Facility (SCF) for a period of five
years. SCF provides financial assistance to low-income countries with short-term
balance of payments needs.
➢ Assistance in digital infrastructure such as establishment of Third International
Internet Gateway for Bhutan. International gateway is any facility that provides an
interface to send and receive electronic communications (i.e., voice, data and
multimedia images/ video) traffic between one country’s domestic network facilities
and those in another country. In India, there are multiple International Internet
Gateways like in Mumbai, Chennai, Agartala etc.
➢ Integration of Bhutan's Druk Research & Education Network (DrukREN) with
India's National Knowledge Network: key cooperation in the domain of eLearning.
➢ Security: Established first integrated check post at Jaigaon (West Bengal, India) and
Phuntsholing (Bhutan)
➢ Connectivity: Expedited Kokrajhar (Assam) - Gelephu rail link and supported
Gelephu airport construction for investment attraction.

VAJIRAM & RAVI 26

 Challenges in the bilateral relationship

The China Question:

Bhutan is the only neighbor of India which has not joined BRI. It also does not have
diplomatic relations with China.

However, an assertive china has been making continuous attempts to make inroads into
Bhutan. Doklam standoff is a glaring example of how china tried to creep towards India’s
Chicken neck corridor (siliguri corridor). In the past china has also offered territory swap
agreements to Bhutan with respect to Doklam territory.

China disputes following territories with Bhutan:

➢ In the north, Pasamlung and Jakarlung valleys, both of which are culturally vital for
Thimphu. Worryingly China has been trying to pursue unsanctioned construction
activity in North Bhutan's Jakarlung Valley.
➢ In the west, Doklam, Dramana, Shakhatoe, Yak Chu, Charithang Chu, Sinchulungpa
and Langmarpo valleys.
➢ India backs Bhutan's claim over Doklam as it is strategically important for India's
security. Dominance of the region by China could threaten the Siliguri Corridor, a
narrow stretch that connects the Indian mainland with its north-eastern states.

Bhutan’s concerns on the ‘BBIN’ Motor Vehicle Agreement (MVA):

The Bhutanese legislature has rejected BBIN. The lower house called national assembly
passed BBIN, but upper house national council rejected BBIN. The main concern expressed
by Bhutanese citizen groups and politicians is over increased vehicular and air pollution in a
country that prides itself on ecological consciousness.

India described Bhutan's decision as a "setback" and not a "rejection" of the agreement
stating that it was natural that all members could not proceed at the same pace, and that India
would continue its engagement with Bhutan on the issue. As of now, Bhutan’s legislature is
reconsidering BBIN bill.

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Unresolved grievances of Bhutan:

Bhutan has been demanding a review of the power purchasing policy and rigid rates.
Moreover, India has also refused to allow Bhutan to join national power grid and trade with
third countries like Bangladesh.

Way Forward:

China has been trying to make inroads into Bhutan. Thus, India should not take Bhutan
relations for granted. Therefore all grievances of Bhutan should be speedily addressed. India
should further take concrete efforts to address economic and other grievances on the part of
Bhutan. It is only thereafter the relationship can touch a new height in the future.

There is an urgent need to diversify economic engagements: For now, India’s economic
relations with Bhutan continue to be dominated by hydropower projects. Strengthening
collaboration in fields such as fintech, space tech, and biotech between the two countries can
lead to a stronger partnership.

Moreover, people-to-people ties should be strengthened. Soft power diplomacy can be

induced through Buddhism and by encouraging more tourist exchanges between the two
countries.

Act East Policy

India Act East Policy was unveiled by Prime Minister of India, Narendra Modi, at the 12th
ASEAN-India Summit in 2014 held in Myanmar. Act East Policy is the successor of Look
East Policy.

Look East Policy: In order to recover from the loss of the strategic partner -USSR (end of
the Cold war 1991), India sought to build up a relationship with the USA and allies of the
USA in Southeast Asia. In this pursuit, former Prime minister of India P V Narasimha Rao
launched Look East policy in 1992, to give a strategic push to India’s engagement with
South-East Asia region.

How Act East is different from Look East policy?

Look East policy focused on the Association of Southeast Asian Nations (ASEAN) countries

VAJIRAM & RAVI 28

+ Economic Integration. However, Act East Policy is a revamped version of Look East.
Act East focuses on ASEAN countries + Economic Integration + East Asian countries +
Security cooperation.

PM Modi has highlighted 4C's of Act East Policy:

➢ Culture
➢ Commerce
➢ Connectivity
➢ Capacity building

Security is an important dimension of India's Act East Policy. In the context of growing
Chinese assertiveness in the South China Sea and the Indian Ocean, securing freedom of
navigation and India's own role in the Indian Ocean is a key feature of Act East Policy. In
pursuance of its goal, India has been engaged under the narrative of Indo pacific and
informal grouping called Quad.
Act East Policy and North East India:

The Objective of ''Act East Policy” is to promote economic cooperation, cultural ties and
develop strategic relationship with countries in the Asia-Pacific region through continuous
engagement at bilateral, regional and multilateral levels thereby providing enhanced
connectivity to the States of North Eastern Region including Arunanchal Pradesh with
other countries in our neighbourhood.

The North East of India has been a priority in India’s Act East Policy (AEP). Greater
connectivity and economic integration of India’s Northeast with its eastern neighbours is
considered a key focus area for growth and development of the region.

AEP provides an interface between North East India including the state of Arunachal
Pradesh and the ASEAN region. Various plans at bilateral and regional levels include
steady efforts to develop and strengthen connectivity of Northeast with the ASEAN region
through trade, culture, people-to-people contacts and physical infrastructure (road, airport,
telecommunication, power, etc.).

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 India’s Indo-pacific policy

What is Indo-Pacific?

According to USA, Indo- pacific stretches from the west coast of India to the west coast of
USA. As per India’s Indo-pacific vision, it stretches from west coast of USA to eastern shore
of Africa. Thus, geographically the term Indo-pacific stretches from Africa to the western
shore of USA.

It is an integrated theatre that combines the Indian Ocean and the Pacific Ocean, and
the land masses that surround them. Moreover, Indo-Pacific is a geopolitical construct
that has emerged as a substitute to the long-prevalent “Asia-Pacific”. The use of the term
indo-pacific acknowledges India’s central role in regional security and commercial
dynamics.

The United States first identified the Indo-Pacific as the new theater in its national security
strategy in 2017 and then renamed the U.S. Pacific Command as the Indo-Pacific
Command in 2018. In the same year 2018, Prime Minister Narendra Modi unveiled India's
vision for the Indo-Pacific region and vibrancy of India's Act east policy.

What are India’s interests in the Indo-Pacific region?

➢ Peace and security in the Indian Ocean: Nearly 50% of India’s trade is centered in
the Indo-Pacific Region and the Indian Ocean carries 90% of India’s trade and its
energy sources. Thus, India wants to assure freedom of navigation, secure choke
points, resolve conflicts peacefully and address non-traditional security threats
in the region.
➢ Geo-political aspirations: To expand its own presence in the region, especially in
Africa, the Middle East and Southeast Asia and maintain its role as a net security
provider in the Indian Ocean region.
➢ Countering China’s BRI and string of pearls policy: Ensuring that China does not
gain a significant strategic foothold in the region.
➢ Enhancing Trade and Investment Cooperation: by encouraging greater flow of
goods, services, investment and technology between India and other countries in the
region.

VAJIRAM & RAVI 30

 ➢ Promoting sustainable development: In the coming times, climate change is set to
adversely affect India. Thus, India favors sustainable development of the region
through development of blue economy.
➢ Moreover, other interests include combating marine pollution, Regulating illegal,
unregulated, and unreported (IUU) fishing, deep sea mineral exploration and effective
disaster risk management

India’s vision for the Indo – Pacific region - PM Modi gave 6 basic elements of India‘s
policy for the region:

1. Stand for a free open and inclusive Indo-Pacific region.

2. South East Asia remains at the center of Indo-Pacific region. (ASEAN centrality)
3. The necessity to evolve through dialogue, a common rule-based order for the
region dialogue.
4. All nations should have equal access as a right under international law to use of
common places on the sea and in the air.
5. Solutions cannot be found within Walls of protectionism but in embracing change.
6. If connectivity initiatives have to be successful they must be built on bridges of
trust highlighting need to respect the sovereignty and territorial integrity.

Policy put to action: important steps taken by India:

➢ In 2019, MEA setup a dedicated indo-pacific division for the matters related to the
indo-pacific. Previously there were separate divisions for ASEAN and Indian Ocean.
This unified division will bring all issues related to indo-pacific under one umbrella
for greater cohesion and focus. This will also give much needed impetus and
extension to India’s Act East policy.
➢ India’s robust participation QUAD security dialogue.
➢ India’s increased engagement with major regional groupings: BIMSTEC, Indian
Ocean Rim Association (IORA), Mekong Ganga Cooperation and Forum for India-
Pacific Islands cooperation (FIPIC)
➢ ASEAN: India has emphasized upon ASEAN unity and centrality in its Indo-Pacific
framework. ASEAN centrality is an implicit rejection of China‘s claims to centrality.
➢ India utilizing its Soft Power: This has been achieved with the help of Indian
Diaspora and cultural exchanges. A noteworthy example in this direction is Ministry

VAJIRAM & RAVI 31

 of Culture’s Project Mausam. It aims to understand how the knowledge and
manipulation of the monsoon winds has shaped interactions across the Indian Ocean
and led to the spread of shared knowledge systems, traditions, technologies and ideas
along maritime routes.
➢ Following policies like Act East Policy and vision of SAGAR: Vision ‘SAGAR’
(Security and Growth for All in the Region) is a holistic policy that aims to pursue
and promote India’s geo-political, strategic and economic interests on the seas,
particularly in the Indian Ocean.
➢ Asia Africa Growth Corridor (AAGC): It was launched by India and Japan in 2017
and has four key components – development and cooperation projects; quality
infrastructure and institutional capacity; capacity and skill development; and people-
to-people partnerships.
➢ Environmental initiatives: India has played a significant role in spearheading global
efforts towards climate change mitigation and adaptation, clean energy, disaster
management etc. in the region through initiatives like International Solar Alliance
(ISA) and Coalition for Disaster Resilient Infrastructure (CDRI).

Indo-Pacific Oceans Initiative:

In 2019 Prime Minister Narendra Modi launched the Indo-Pacific Oceans Initiative (IPOI) at
the East Asia Summit. IPOI seeks to ensure security and stability of the regional
maritime. It is an open, non-treaty based initiative for countries to work together for
cooperative and collaborative solutions to common challenges in the region. IPOI draws on
existing regional architecture and mechanisms to focus on seven pillars:
• Maritime Security
• Maritime Ecology
• Maritime Resources
• Capacity Building and Resource Sharing
• Disaster Risk Reduction and Management
• Science, Technology and Academic Cooperation
• Trade Connectivity and Maritime Transport

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“ASEAN Outlook” on the Indo-Pacific:

This document outlines ASEAN’s strategy of the Indo-Pacific. It highlights centrality of the
ASEAN, rules-based order anchored upon international law, openness, transparency,
inclusivity and commitment to advancing economic engagement in the region. Furthermore,
document states that Indo-Pacific region should be looking at achieving “dialogue and
cooperation instead of rivalry”.

Given that India also champions the need for a free, open, inclusive, rules-based Indo-Pacific,
it has warmly welcomed the ASEAN Outlook on the Indo-Pacific. There are several areas
where India can work with ASEAN for enhancing cooperation in the Indo-Pacific.

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