10 Jun 2014

INDIA-CHINA BILATERAL UNDER NARENDRA MODI

As the recently formed government in New Delhi is
settling down, the domestic and external policies to be
adopted are being worked out. While no specific blue
print is available, one can take the ruling Bharatiya
Janata Party (BJP) election manifesto, speeches of the
BJP leaders during the election campaign, actions taken
over the past two weeks, the president’s address to the
Joint Session of the parliament on June 9, and the
contextual aspects into considerations to reflect on the
new government’s policies.
First, a common denominator among the
aforementioned aspects is Prime Minister Narendra
Modi and his team’s domestic rejuvenation agenda.
President Pranab Mukherjee’s address to the parliament
outlines the new government’s agenda for the next 60
months. A majority of the points in this address were
taken verbatim from the BJP manifesto. These include
enhancing the role of the manufacturing sector,
improving infrastructure projects across the country and
overall capacity build-up. It is clear, however, that for
this to happen, the foreign policy front needs to be re-
calibrated for the domestic agenda.
For instance, China had become the global
manufacturing hub thanks to its vigorous efforts over
the past two decades of reform and opening policies
and financial and technical assistance from Japan,
South Korea, Taiwan, Singapore and the US. In this
regard, if Modi’s efforts are to transform India into a
“globally competitive manufacturing hub powered by
Skill, Scale and Speed,” he needs active cooperation of
all the countries mentioned above.
Additionally, for setting up “world class investment and
industrial regions, particularly along the Dedicated
Freight Corridors and Industrial Corridors,” the new
government needs Japan and the other countries.
Japan, in the recent period, committed nearly $92 billion
for the Delhi-Mumbai Industrial Corridor and had also
been exploring the Bangalore-Chennai sector. While
clearances on land acquisition, environmental issues,
and labour reforms have delayed the project, more
thrust could be expected during Modi’s visit to Tokyo
next month.
Chinese Foreign Minister Wang Yi, in his meetings with
the Indian officials during his recent visit, reiterated
China’s interest in setting up industrial zones in five
states and Beijing’s participation in railway projects. For
Japan, China and the EU countries, the proposed
diamond quadrilateral project of high speed trains, the
Sagar Mala port project, substantially augmenting
electricity generation capacity, the national solar
mission, etc. are lucrative and mutually beneficial.
Concerns on foreign investments closer to the security
establishments of course, prevail in India; and so are
anti-dumping duties on solar panels from China.
There are several commonalities in the new
government’s path forward and that of China’s. Both
leaderships emphasise on nurturing innovation; urban
mission programmes; renewable sources of energy;
among others. China’s 12th Five Year Plan outlined
these aspects, and both could learn from each other’s
experience.
Second, several items on the Modi government’s
domestic agenda could provide for opportunities or even
frictions with neighbours in the longer run. The BJP
manifesto and the presidential address suggested to
building world-class infrastructure, including the
“expansion of railways in hilly states and Northeast
region, conservation of Himalayan ecology; creating 50
tourist circuits and establishing a Central University of
Himalayan Studies.” While China itself had expanded its
infrastructure projects towards its peripheries in Tibet
and Xinjiang – often intruding into disputed territories
between India and Pakistan in the Northern areas – it is
suspicious of the dual-use aspects of these initiatives
by India.
Third, during the election campaign – such as at
Pasighat in February this year when Modi chastised
China for its “expansionist mindset” – and subsequently,
it is clear that securing the borders will be among the
priorities of the new government’s agenda. This is
reflected in the appointments of Gen. (Retd) VK Singh,
and Kiran Rejiju, among others. The presidential address
simply stated that the new government will “strengthen
defence preparedness,” but there was no mention of
revising the nuclear doctrine as stated earlier by the
BJP manifesto.
Fourth, the BJP-led government clearly identified the
Indian neighbourhood as its foreign policy priority. It
was reflected in the invitation to the South Asian
neighbours to Prime Minister Modi’s swearing-in
ceremony, and in his choice of Thimphu for his maiden
foreign visit. The presidential address also identified
China, Japan, Russia, the US and the EU; but it is clear
that India’s relations with the US and Japan are poised
to be on the upswing. Specifically on China, the
address, while reiterating the “strategic and cooperative
partnership” agreement of 2005, stated that the new
government “will engage energetically” with Beijing.
Fifth, the BJP manifesto and the presidential address
clearly identified zero tolerance to internal disturbances,
including terrorist incidents. While in the foreign policy
domain, this issue is mainly directed towards Pakistan,
there was also a mention during Foreign Minister Yi’s
visit to New Delhi that counter-terrorism efforts
between India and China will be furthered. So far,
although both India and China have acceded to the UN
Security Council resolutions 1267, 1373 and 1540 on
counter-terrorism, no effective coordination or
cooperation exists between the two nations that identify
this issue as number one security challenge.

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