(V) International Relations by Sushant Verma Sir
(V) International Relations by Sushant Verma Sir
(V) International Relations by Sushant Verma Sir
(V) INTERNATIONAL RELATIONS between India and China was based on the
shared sense of anticolonialism.
BY SUSHANT VERMA SIR It was also highlighted by India and China both
1. IMPORTANCE OF CHINA that they share the responsibility to provide
2. BRIEF HISTORY-THREE PHASES leadership to the newly emerging countries of
3. 3Cs Asia and Africa both. They also shared the
COOPERATION feeling that they should support newly emerging
COMPETITION countries in their quest for peace and prosperity.
CONFLICT In the year 1954 India and China signed the
4. MAJOR IRRITANTS IN BILATERAL TIES- treaty of friendship called as Panchsheel treaty.
a) BORDER DISPUTE The five principles of this strategy are:
b) SINO-PAK NEXUS 1. Mutual respect for each other‘s territorial
c) BELT AND ROAD INITIATIVE (BRI) integrity and sovereignty.
d) GEO-POLITICAL TUSSLE IN INDO-PACIFIC- 2. Mutual non-aggression.
STRING OF PEARLS 3. Mutual non - interference in each other‘s
NECKLACE OF DIAMONDS, internal affairs.
SOUTH CHINA SEA DISPUTE 4. Equality and cooperation for mutual benefit.
e) TRADE DEFICIT 5. Peaceful coexistence.
f) RIVER WATER SHARING Panchsheel formed a basis for a principled
5. CONCLUSION approach to international relations and it was
suggested to guide the future of India China
SINO-INDIA RELATION- I relationship.
Importance of China Three issues led to deterioration of
1. Largest neighbor bilateral ties
2. Economic and Military Power
3. One of biggest trading partner 1. Issue of Tibet:-
4. Important factor India’s foreign policy Political buffer b/w India and China at time of
5. At the geo-political level, China and India have Indian independence
much in common. Both are ancient civilisations 1951 China conquered Tibet:- Tibet No more
that carry the scars of past imperial conquests. buffer and India accepted Tibet as part of China
6. Both are rapidly modernising and regaining their but expected to maintain autonomy of Tibet {
status as global trading and economic Panchsheel treaty.}{TAR-Tibet Autonomous
powerhouses. Region}
7. And they are the two most populated nations— 1959 Dalai Lama head of Tibetan administration
collectively home to over one-third of the and came to India Via Arunachal and India Gave
world’s population. Political Asylum
China Got Disappointment by action of India
BRIEF HISTORY 2. Issue of Border:-
The history of Sino-Indian relations since 1950 1955:- China India had published their maps and their
can be divided into distinct phases discussed claims and counter claims over Aksai Chin and
Arunachal Pradesh
below
China built road in Aksai Chin and claim Arunachal
India and China are called “Civilizational states” (Southern Tibet)
Why 1950:- because in 1947 India 1961:- Nehru’s Forward Policy :- Army to move
1949 :- revolution in China and Chinese communist forward to those areas which we claim and put up
party under Mao post theirs
India became one of the few non-socialist bloc 1962:- Forward policy some experts say is triggering
country to develop diplomatic ties with China for 0ctober 1962 war b/w India and China
“Hindi Chini Bhai Bhai Slogan” 3. Competition for 3rd world leadership
A. PHASE I - 1950-1962: PERIOD OF India and China’s models were different as India Got
Independence Through Peace methods of Gandhi but
IDEOLOGICAL ENTHUSIASM Mao belived in Quote that “Power comes through
This was a period of friendship and ideological barrel”
convergence around anti-imperialist foreign However, there were also differences in the
policy objectives. Source of initial bonhomie ideology of Mao and Nehru which were as
follows-
2020:-THE STANDOFF IN EASTERN Gogra (PP 17 and 17 A) area and, crucially, the
Depsang Plains.
LADAKH (SINCE MAY 2020) The Patrolling Points we have referred to are not
Face-off and stand-off situations occur along the new. They were set up in the late 1970s by the
LAC in areas where India and China have Government of India’s China Study Group.
overlapping claim lines.
The LAC has never been demarcated. Differing
perceptions are particularly acute in around two
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This means Indian patrols have been going there triggers cited for the People’s Liberation Army’s
routinely all these years and the Chinese could (PLA) targeting of Indian territory along the Line
not have but known about them. of Actual Control (LAC) in eastern Ladakh was
In turn, India is familiar with where the Chinese the construction of the 255-km long Darbuk-
patrol, and hence claim. And while there is an Shyokh-Daulat Beg Oldie (DSDBO) all-weather
overlap of claims in Depsang and Pangong Tso, road and the revocation of statehood of Jammu
there was none in Gogra, Hotsprings and and Kashmir.
Galwan river valley. b) The DSDBO road’s strategic importance is that it
connects Leh to DBO, virtually at the base of the
Karakoram Pass that separates China’s Xinjiang
Autonomous Region from Ladakh. The DSDBO
highway provides the Indian military access to
the section of the Tibet-Xinjaing highway that
passes through Aksai Chin. The road runs almost
parallel to the LAC at Aksai Chin.
c) Daulat Beg Oldie (DBO) has the world’s highest
airstrip, originally built during the 1962 war but
abandoned until 2008, when the Indian Air Force
(IAF) revived it as one of its many Advanced
Landing Grounds (ALGs). The strip is critical to
sustain Indian operations in the region,
particularly in the winter when road access gets
cut off because of heavy snowfall, particularly
along passes. The Daulat Beg Oldie airstrip also
enables Indian armed forces to speedily move in
Perhaps the Chinese want the LAC to be at the reinforcements and weapons including artillery
estuary, because that will give them a clear view guns into the region.
of the Daulat Beg Oldi-Darbuk road. d) There are additional strategic considerations in
the area. To the west of DBO is the region where
China abuts Pakistan in the Gilgit-Baltistan area,
once a part of the erstwhile Kashmir principality.
This is also the critical region where China is
currently constructing the China-Pakistan
Economic Corridor (CPEC) in Pakistan-Occupied
Kashmir (PoK), to which India has objected. The
revocation of statehood of Jammu and Kashmir
heightened China’s fear about Indian stand on
CPEC.
e) In the wake of Galwan faceoff, India banned 59
Chinese apps and PM Modi commented that
―era of expansionism is over‖ and ―history is
witness that such forces have been wiped out, or
have been forced to turn around‖. Certainly,
Galwan faceoff has overshadowed Wuhan spirit
and Chennai connect (Mamallapuram summit
SALAMI SLICING
Salami Slicing is a divide-and-conquer tactic used
to dominate opposition territory, piece by piece.
Such military operations are too small to result
TRIGGER FACTOR FOR CHINA’S in a war.
ACTION They leave a neighbouring country confused as it
a) Darbuk-shyokh-daulat beg oldie (DSDBO)+ is not able to decide how and how much should
Revocation of statehood of Jammu and it respond.
Kashmir :- In view of some experts, the possible These small military actions also help avoid
Republic of China brings in ethnic Han areas, the broader de-escalation is nowhere
pastoralists and giving them cover to use the near the horizon. The standoff remains
land across the areas of unprotected Line of unresolved with about 50,000 troops amassed
Actual Control. on either side of the LAC and still are facing each
In the process, they drive away from the Indian other at PP 15(hot spring), Depsang And
herdsmen from their traditional pastureland, Demchok
thus opening the path for Salami slicing Border remains tense as China is not inclined to
move back and reports say that China is
‘THREE WARFARE’S’ (3WS) STRATEGY
upgrading infrastructure and installing radars
In 2003, China’s Central Military Commission
swiftly along the LAC.
(CMC) approved the guiding concepts for
India also described China's renaming of some
“information operations for the PLA, also known
places in Arunachal Pradesh as a "ridiculous
as “Three Warfares” (san zhong zhanfa).
exercise" to support "untenable territorial"
For the past decade, China is known to have
claims, asserting that the state has always been
actively used ‘three warfares’ (3Ws) strategy—
and will always remain an "inalienable" part of
1) Media
India.
2) psychological and
In May 2022, both countries have agreed to hold
3) legal warfare—to weaken its adversaries in
the next (16th) round of the Senior Commanders
regions constituting what it perceives to be its
meeting at an early date to achieve the objective
‘core interests’.
of complete disengagement from all friction
WOLF WARRIOR STRATEGY points along the LAC in the Western Sector
It describes offensives by Chinese diplomat to CHINA’S NEW LAND BORDER
defend China’s national interests, often in
confrontational ways.
LAW (2021)
In view of Harsha V.Pant, China’s wolf warrior Legal warfare of China
Recently, China has adopted a new land border
strategy has meant cultivating a diplomatic style
which is inherently undiplomatic, as it seeks to law amid the continued standoff between Indian
confront, attack, demean and even abuse other and Chinese militaries in eastern Ladakh. The
nations when Beijing is challenged. law will govern how Beijing guards its 22,000-km
This was done at the behest of China’s top long land border that it shares with 14 countries,
leadership that wanted to showcase to the including India, Russia, North Korea and Bhutan.
The new law stipulates that Chinese state shall
world that today’s China, rather than being
bullied, would itself become a bully. take measures to safeguard territorial integrity
and land boundaries. For this, The People's
Wolf Warrior and Wolf Warrior II are Chinese
Liberation Army (PLA) shall carry out border
action blockbusters that highlight agents of
duties including organizing drills and resolutely
Chinese special operation forces. They have
prevent, stop and combat invasion,
boosted national pride and patriotism among
encroachment, provocation and other acts.
Chinese viewers.
Moreover, law necessitates China to take
As international criticism has mounted about
measures to support economic and social
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development in border areas. comment. They should note that India refrains
Impact on India: Experts in India say that the law from public judgement of their internal issues,
would formalize some of China’s recent actions New Delhi also reminded the leadership in
in disputed territories with both India and Beijing that India refrains from public judgment
Bhutan, including the PLA‘s deployment of of their internal issues. India usually does not
troops in forward areas along the India border criticise China over its internal issues including
and multiple transgressions across the LAC. The those related to Taiwan, Tibet, Hong Kong,
passing of the law coincides with increased human rights violations and atrocities against
Chinese activity along the land borders, which Uyghurs in Xinjiang province.
have mirrored actions in disputed waters in the Earlier India had outlined eight principles to
East and South China Sea. help repair strained relations with China-
Worryingly, China in recent years has been 1. Agreements already reached must be adhered to
strengthening border infrastructure, including in their entirety, both in letter and spirit.
the establishment of air, rail and road networks, 2. The LAC must be strictly observed and respected,
launching bullet train in Tibet which extends up and any attempt to unilaterally change the status
to Arunachal Pradesh border, and the quo is completely unacceptable.
3. Peace and tranquillity in the border areas is the
construction of new frontier villages along the
basis for development of relations in other
border with Bhutan.
domains. If they are disturbed, so inevitably will
VISIT OF CHINESE FOREIGN MINISTER the rest of the relationship be.
4. While both nations are committed to a multi-
WANG YI, MARCH 24, 2022 polar world, there should be a recognition that a
Key takeaways from the meeting between multipolar Asia is one of its essential
the two Foreign Ministers constituents.
External Affairs Minister S Jaishankar Friday told 5. Each state will have its own interests, concerns
visiting Chinese State Councilor and Foreign and priorities, but sensitivity to them cannot be
Minister Wang Yi those bilateral relations have one-sided as relationships between major states
are reciprocal in nature.
been “disturbed as a result of Chinese actions
6. As rising powers, each will have their own set of
since April 2020”. This naming of “Chinese
aspirations and their pursuit too cannot be
actions” and its impact is one of the most candid ignored.
articulations of New Delhi’s assessment, directly 7. There will always be divergences and differences
conveyed to the Chinese Foreign Minister. but their management is essential to bilateral
Jaishankar said the presence of a large number ties
of troops there, in contravention of 1993 and 8. Civilisational states like India and China must
1996 agreements is an abnormality, so always take the long view.
restoration of normalcy will obviously require (A civilisation state is a country that claims to
restoration of peace and tranquility. India has represent not just a historic territory or a particular
language or ethnic-group, but a distinctive
been demanding status quo ante or positions
civilisation. It is an idea that is gaining ground in
prior to April 2020. In his view, the onus of
states as diverse as China, India, Russia, Turkey etc.)
normalisation of ties lies with Beijing.
He further argued that our relationship is best Reasons for Beijing’s outreach
served by observing the three mutuals By reaching out with a Foreign Minister-level
1) Mutual respect, visit, Beijing is signaling that it is keen to bring
2) Mutual sensitivity and ties back on track.
3) Mutual interest China’s ultimate and clear objective, however,
He raised the issue of Wang’s statement at the was to host Prime Minister Narendra Modi for
OIC conference in Islamabad which was criticised the BRICS summit held in China in June 2022.
by the Indian government. China should follow The timing for beginning the groundwork for the
an independent policy in respect of India, and proposed BRICS summit is also significant –
not allow its policies to be influenced by other Russia is facing a global criticism for its war on
countries and other relationships — a reference Ukraine.
to Pakistan. Despite the unresolved border standoff with
India asserted that matters related to the Union India in eastern Ladakh, which continues to
Territory of Jammu & Kashmir are entirely the block any forward movement in bilateral ties,
internal affairs of India. Other countries, Beijing has sought to give the impression that on
including China, have no locus standi to major regional and international issues both
countries share similar positions.
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China has been more supportive of Russia than any way signal that relations are moving towards
India on the Ukraine issue but India too hasn’t normalisation, especially in view of the
condemned Moscow and its neutrality has been differences between New Delhi and Beijing over
taken to mean tacit support for Russia by some the military standoff in Ladakh sector, the
in the West. people said.
What’s India’s thinking? THE 16TH ROUND OF CORPS
From Delhi’s calculus, Beijing’s outreach is an COMMANDER-LEVEL TALKS
opportunity since two years of strained ties has The 16th round of corps commander-level talks
led to the slide of gains made in the last three between India and China held on July 17, 2022 at the
decades. While India has always maintained that Chushul-Moldo border meeting point on the Indian
the border situation has adversely impacted side. It built on the progress made at the last round of
bilateral ties, China has insisted that the border meeting on March 11.
dispute should be handled appropriately and the The 16th round of talks failed to yield any significant
larger picture of bilateral ties should be kept in outcome with both sides, in a joint statement,
mind. reaffirming that resolution of the issues would help
restore peace and tranquillity in the region and
This divergence of approach has meant that
facilitate progress in bilateral relations.
there have been no bilateral visits, although
While an agreement for disengagement from Patrolling
there have been focused bilateral meetings Point-15 was close by in the last few rounds of talks,
between Indian and Chinese Foreign Ministers China’s refusal to discuss other friction areas, Demchok
and Defence Ministers in other countries and Depsang maintaining that they are not a part of
perceived to be neutral venues, like Russia and the current stand-off, has stalled any progress. India
Tajikistan. The two sides have also participated has been insisting on comprehensive disengagement
in several multilateral summits including virtual and de-escalation to end the ongoing standoff in
summits of BRICS, G-20, SCO among others. eastern Ladakh.
Over 50,000 troops and heavy equipment continue to
External Affairs Minister S Jaishankar met
be deployed on both sides close to the LAC. In the last
Chinese Foreign minister and State Councillor
two years, China has also undertaken massive
Wang Yi on July 7, 2022 in Bali for the G-20
construction of infrastructure, habitat and support
foreign ministers’ meeting, amid the ongoing structures to maintain the troops close to the LAC,
standoff between troops along the India-China altering the ground status
border. He also called for an early resolution to
the more than two-year-long standoff. SINO-PAK NEXUS
China’s special envoy on Afghan affairs Yue China and Pakistan have been described as "all
Xiaoyong made a low-key visit to New Delhi on weather friends. Founded on a shared enmity
August 1, 2022 for talks with the Indian diplomat for India, the relationship has in some respects
handling matters related to Afghanistan. This run deeper than formal alliances have been
was the first visit to India by Yue, who was remarkably resilient over the dramatic economic
named the special envoy for Afghan affairs a and geopolitical shifts of the last few decades.
year ago, and follows trips by him to Pakistan In a boundary agreement in 1963, Pakistan
and Turkey for discussions on the situation in ceded the Shaksgam Valley to China. The
Afghanistan. The Chinese side had sought the Shaksgam Valley or the Trans Karakoram Tract is
meeting and the move was being seen in New part of the Hunza-Gilgit region of Pakistan-
Delhi as an acknowledgement by Beijing of occupied Kashmir and is a territory claimed by
India’s important role in Afghanistan. India but controlled by Pakistan. The agreement
This is also the first time that senior officials of laid the foundation of the Karakoram highway,
the two sides have discussed Afghanistan since built jointly by China and Pakistan in the 1970s.
the takeover of the country by the Taliban India has long standing grievances against
almost a year ago. China was among a handful of China’s secret nuclear and missile technological
countries that didn’t close its embassy in Kabul help to Pakistan which enabled Pakistan to
after the Taliban grabbed power on August 15 emerge as the nuclear power. This eroded
last year, and though it has not formally conventional Indian military superiority and
recognized the regime, it has said it wants emboldened Pakistan to wage a proxy war
“friendly and cooperative” ties. against India in the state of Jammu and
The meeting is also being seen in the context of Kashmir. This Pakistani policy of inflicting
recent one-off engagements that the two sides thousand cuts on India via state sponsored
have had on important matters and does not in
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terrorism has been a major security challenge time under the Security Council’s procedures,
for India. effectively blocks the proposal to designate Makki as
Chinese backing for Pakistan's nuclear, missile a terrorist until the “technical hold” is withdrawn.
and defence supply program ensured that it Makki is the deputy chief of LeT and head of the
group’s political affairs department. Both LeT and its
could maintain its role as a balancer in South
front organisation, Jamaat-ud-Dawah (JuD) have been
Asia and continuing to keep Delhi strategically
banned as terrorist entities by the UN. Makki also
tied down by its western neighbour. served as head of LeT’s foreign relations department.
Convergence between the two countries raises The method adopted by China, a close ally of
the real spectre of a ‘two-front’ war. Pakistan, is identical to the steps it took to repeatedly
India is keeping a vigilant eye on air bases in block the listing of Jaish-e-Mohammed (JeM) chief
Pakistan-Occupied Kashmir (PoK) where there is Masood Azhar under the UN Security Council’s Al-
possibility of PLA Air Force (PLAAF) using air Qaeda and ISIL Sanctions Committee, before finally
bases in PoK. The Gwadar naval base in Pakistan relenting in May 2019 in the face of international
has emerged as an important naval base for pressure. Beijing caved in because of mounting
international pressure and its own efforts at the time
Chinese Navy with serious security implications
to improve ties with New Delhi in the wake of the
for India.
2017 border standoff at Doklam.
Pakistan has a crucial intermediary for Beijing in Any designation of Makki by the UN Security Council
establishing its relationship with the United would have required Pakistan to take three steps –
States, with Saudi Arabia, and with the Taliban. 1. freeze his funds and financial assets,
Its intelligence services' ties with militant groups 2. enforce a travel ban, and
in the region helped, for many years, to ensure 3. cut off access to arms and related materials.
that China was never a top-tier jihadi target On 11th August 2022, China prevented a joint India-
Pakistan is a key partner under the China- U.S. bid to list Jaish-e-Mohammad deputy chief Rauf
proposed Belt and Road Initiative whose flagship Asghar as a UN Security Council designated terrorist
by placing a “technical hold” on the process, a move
project China-Pakistan Economic Corridor (CPEC)
India called “politically motivated” and evidence of
passes through Pakistan-Occupied Kashmir
China’s “doublespeak” on Pakistan-based terrorism.
(POK). Rauf Asghar, the brother of JeM leader Masood
During an April 2015 visit to Islamabad, Chinese Azhar, is accused of masterminding a number of
President Xi Jinping and Pakistani PM Nawaz terror attacks from the IC-814 hijacking in 1999, the
Sharif unveiled the $46 billion China-Pakistan Parliament attack in 2001, as well as a number of
Economic Corridor (CPEC). CPEC quickly attacks on security forces personnel from 2014-
ballooned to $62 billion in pledges—one-fifth of 2019.
Pakistan’s GDP—covering dozens of envisioned
high-profile projects.
CHINA’S AMBIGUOUS STAND ON
CROSS-BORDER TERRORISM
China has an ambiguous stand on cross-border
terrorism which profoundly affects India. Despite
suffering terrorist incidents in its Xinjiang province at
the hands of Uighur Islamists who have close ties
with terrorist groups operating in Af-Pak region,
China refuses to acknowledge the state sponsored
terrorism emanating from Pakistan into India for
strategic reasons
On 18th June 2022, China put a last-minute block on
a joint proposal by India and the United States in the The corridor links Xinjiang with Gwadar, and also
UN to list Pakistan-based terrorist Abdul Rehman passes through Pakistan-occupied Kashmir (PoK)
Makki as a 'Global Terrorist' under 1267 ISIS and Al where China is investing in a number of projects.
Qaeda Sanctions Committee of the UN Security In total, the economic corridor project aims to
Council. add some 17,000 megawatts of electricity
Makki is a US designated terrorist and the brother-in-
generation at a cost of around $34 billion.
law of Lashkar-e-Taiba (LeT) chief and 26/11
mastermind Hafiz Saeed. All decisions of the The rest of the money will be spent on transport
committee are taken through consensus. infrastructure, including upgrading the railway
China put a “technical hold” on the proposal. This line between the port megacity of Karachi and
measure, which can last for up to six months at a the northwest city of Peshawar.
of the “far seas”, it provides conditions for the China, by building a network of commercial and
PLA’s navy to navigate and operate in a deep- military bases and ports in many countries. This
water region. strategy has been deployed by China to protect
The “two-ocean” strategy is a major backbone its trade interests, as a major chunk of its trade
of the power-projection plans of China. The passes through the Indian Ocean and various
countermoves by the US through its Indo-Pacific choke points like Strait of Hormuz, Strait of
strategy have compelled China to push the two- Malacca and Lombok Strait.
ocean strategy through its Belt and Road
Initiative (BRI) infrastructure projects, especially
the sea-based portion of the initiative, known as
the Maritime Silk Road.
INDIAN OCEAN REGION- STRING OF
PEARLS AND NECKLACE OF DIAMOND
US defence contractor Hamilton gave term in
2004 “string of pearls”
Term given by “Lalit man Singh 2011” :-
Necklace of diamond
It is important to note that phrases such as
China’s One Belt One Road initiative, India’s Look
East/Act East Policy and SAGAR (Security and
Growth for All in the Region) doctrine, etc., have
been officially announced/promulgated to
describe specific policies/strategies of the
respective governments.
However, some popular phrases in strategic
discourse such as China’s ‘string of pearls ‘in the
Indian Ocean or India’ ‘necklace of diamonds’
strategy are not officially promulgated strategies
of the government, but these are the
interpretation of respective government policies
by commentators.
The geopolitical competition for strategic
influence in the Indo-Pacific region between China has also reportedly established a maritime
India and China has progressively been reconnaissance and electronic intelligence station on
intensifying. India’s ‘Act East policy and the Myanmar’s Great Coco Island in the Bay of Bengal, about
Chinese efforts to extend its strategic influence 300 kilometers south of Myanmar’s mainland, and on
in the IOR have brought pressure and influence Little Coco Island in the Alexandra Channel between the
on each other’s traditional sphere of strategic Indian Ocean and the Andaman Islands
China is expanding its footprint in the Indian
interest. As a result, the Indian Ocean has
emerged as a key intersection zone of Indian and Ocean through its 'Debt Trap Diplomacy' and
Chinese strategic interests. 'String of Pearls Strategy'. Ever since MSR’s
In 2004, US defense contractor Booz Allen inception, China managed to build its first
Hamilton, in a report titled ‘Energy Futures in overseas military base in Djibouti and ports like
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Gwadar in Pakistan, Lamu in Kenya, Maputo in despite India being its biggest backer in its worst
Mozambique, Hambantota and Colombo in Sri- economic crisis. India’s clout in the country is still not
Lanka, Chittagong in Bangladesh, Kyaukpyu in as much as that of China. This is why Chinese
Myanmar to name a few. pressure to allow the ship's visit prevailed over the
Indian prodding to not allow it. Moreover, it has also
Apart from ports, China has managed to increase
been reported that China's international clout also
its influence by heavy investments, for example,
outdid India. Sri Lanka is looking for a bailout from
in the east African states alone, China has been the International Monetary Fund (IMF) and China
involved in nearly 600 projects. A country that reportedly threatened it if ship was not allowed.
had no substantial presence or influence in There is also the possibility of Sri Lanka playing the
Indian Ocean Region (IOR) in the 20th century "China Card" and balancing the two regional powers
has over the last decade increased its presence — India and China. Countries such as Sri Lanka and
substantially. This is a great concern for India Nepal have often used the prospect of getting closer
since it looks at IOR as its backyard. with China —India's principal rival— to level up their
There is rising incidence of Chinese intelligence place in their dealings with India. Chinese
Ambassador in Sri Lanka Qi Zhenhong, in an article
ship sightings in the IOR. Chinese Dongdiao class
published in the Sri Lanka Guardian, attacked India
intelligence-gathering ships – known earlier to
for Sri Lanka’s initial rejection of the Chinese request
stalk US, Australian and Japanese warships in the to dock the ship in Hambantota and linked it with
Western Pacific – are now operating in the Nancy Pelosi’s recent visit to Taiwan. The Indian High
waters of the Eastern Indian Ocean, keeping an Commission in Sri Lanka criticized remarks of Chinese
eye on India’s naval movements. Ambassador as a violation of basic diplomatic
YUAN WANG - 5 INCIDENT etiquette which may be a personal trait or reflecting a
The most recent controversy began with the docking larger national attitude of China.
of a Chinese research vessel, the Yuan Wang 5, at the RESPONSES BY INDIA TO COUNTER
strategically significant Hambantota Port in southern CHINA’S RISE IN IOR
Sri Lanka on August 16, 2022. The Chinese military
The phrase ‘necklace of diamonds’ was first
research vessel was originally supposed to arrive at
mentioned by India’s former Foreign Secretary Lalit
the Sri Lankan port on August 11 but Sri Lankan
Mansingh while speaking at a think tank in August
officials had not cleared it due to “security concerns
2011 on ‘India’s Regional Strategic Priorities‟. He had
raised by India.”. China was later granted permission
argued that “India is doing everything it is supposed
on August 13 2022 “on condition that it will keep the
to do in terms of protecting its interests. To the
Automatic Identification System (AIS) switched on
doctrine of the String of Pearls, India has its own
within the Exclusive Economic Zone (EEZ) of Sri Lanka
doctrine, the Necklace of Diamonds. Just as the
and no scientific research to be conducted in Sri
Chinese are building port facilities, we are tying up
Lankan waters.
naval cooperation with almost all the major powers
The nature of the Chinese vessel added to the
of the Indian Ocean region.” Even though
controversy, with China stating that it is a research
commentators often use ‘necklace of diamonds ’to
vessel on scientific missions, whereas the U.S.
describe India’s strategic approach to counter China’s
Department of Defense said that the ship is “under
growing influence in the IOR, it has not found any
the command” of the People’s Liberation Army, with
mention in the Government of India’s official
capabilities to track satellites and missile launches.
discourse.
India suspects that its spaceport in Sriharikota, its
In response to China’s strategy, India has started
missile test range in Odisha, as well as several other
working on the 'Necklace of Diamonds' strategy. This
sensitive facilities are within the tracking range of
strategy aims at garlanding China or in simple words,
Yuan Wang 5. It has also been noted that the ship
the counter encirclement strategy. India is expanding
could also be used to survey the ocean which would
its naval bases and is also improving relations with
help the Chinese in planning submarine operations in
strategically placed countries to counter China's
the region. The docking of the ship is being seen in
strategies. Important initiatives undertaken in this
the context of China's security challenges to India and
regard are as follows-
its neighbourhood and the competition and
Iran -India is developing Chabahar port in Iran,
challenges it brings to the broader Indo-Pacific
opening a new land-sea route to Central Asian
region. India considers South Asia its strategic
countries by-passing Pakistan. It is strategically
backyard where China has made considerable
located close to the Chinese Gwadar Port in Pakistan
inroads. Therefore, its continued and increasing
and is close to the Strait of Hormuz. Chabahar gives
presence in the region challenges India's clout in the
India a strategic position since it overlooks the Gulf of
region. This is why the presence of a potentially
Oman, a very strategic oil supply route.
espionage vessel in the immediate neighborhood is a
Indonesia –, India got the military access to Sabang
concern to India. In view of strategic experts this
Port which is located right at the entrance of Malacca
episode is being seen as an embarrassment of India
Strait. This strait is one of the world's famous choke
as Sri Lanka violated Indian concerns and sensitivities
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point. A large chunk of trade and crude oil passes on Acquisition and Cross-Servicing Agreement
to China through this region. The Strait is China’s (ACSA) will allow access to each other’s provision
strategic Achilles’ Heel – better known as its Malacca of supplies and services during the bilateral
Dilemma – through which pass over 80% of Beijing’s exercises and training, UN Peacekeeping
oil and hydrocarbon imports from West Asia. Operations, and other Humanitarian activities.
Vietnam: India is maintaining good relations with
Vietnam. India and Vietnam had upgraded their
ties to the level of Comprehensive Strategic
Partnership (CSP) in 2016 and India's $100
million defence Line of Credit to Vietnam has
been utilised for naval equipment. India has been
training Vietnamese military personnel and also
helping them with maintenance of some defence
products. Vietnam is also interested in
purchasing the Brahmos missile jointly produced
by India and Russia.
Philippines: In 2017, during the visit of Prime
Minister Narendra Modi to the Philippines, the
two countries had signed a Memorandum of
Understanding on defence industry and logistics
cooperation which provides a “framework for
Myanmar – India built a deep-water port in
enhancing and strengthening cooperation in
Sittwe in 2016.
logistics support and services and in the
Bangladesh – India would help Bangladesh development, production and procurement of
modernize Sea Port in Mongla. India can also use defence materials.” In 2022, Philippines signed a
the Chittagong port in Bangladesh. $374.96 million deal with BrahMos Aerospace
Oman – India has signed agreements to access Pvt. Ltd. for the supply of shore based anti-ship
strategically located Naval facilities of Oman at variant of the BrahMos supersonic cruise
Duqm. This facility is close to the Strait of missiles.
Hormuz. The port facilitates India’s crude BrahMos is a joint venture between DRDO and
imports from the Persian Gulf. In addition to Russia’s NPO Mashinostroyeniya and the missile
derives its name from Brahmaputra and Moskva
this, Indian facility is located right between the
rivers. The missile is capable of being launched from
two important Chinese pearls-- Djibouti in Africa
land, sea, sub-sea and air against surface and sea-
and Gwadar in Pakistan. based targets and has been long inducted by the
Singapore – India has signed an agreement to Indian armed forces.
access Changi Naval Base of Singapore, which is Central Asia: in 2015, Prime Minister Modi visited all
strategically located close to the Strait of the 5 countries of Central Asia in one go and becomes
Malacca. The agreement has provided direct the first Indian Prime Minister to do this. Since then,
access to this base to the Indian Navy. While trade with Central Asian countries has doubled after
sailing through the South China Sea, the Indian his visit. In 2022, PM Modi hosted first India – Central
Navy can refuel and rearm its ships through this Asia Summit.
LEMOA with the United States- India and USA had
base.
signed the Logistic Exchange Memorandum of
Assumption Island, Seychelles: In 2015, India and
Agreement (LEMOA) in 2016. LEMOA basically makes
Seychelles agreed upon the development of the countries eligible to have access to US bases across
naval base in this region. This gives the military the world for multiple purposes. Indian Navy can now
access to India. This base is of strategic have access to atolls like Diego Garcia, in the middle
importance to India as China desperately wants part of Indian Ocean, currently operating by the US
to increase its presence in the African continent Navy.
through the maritime silk route. SAGAR- In 2015, India unveiled its strategic vision for
Apart from getting direct access to the strategically the Indian Ocean i.e., Security and Growth for All in
placed naval bases, India is also enhancing strategic the Region (SAGAR). It is an increasing recognition of
relations with other nations to garland China: the increasing importance of maritime security,
Mongolia: Prime Minister Modi is the first Indian maritime commons and cooperation. Through
Prime Minister to visit this country. Both the SAGAR, India seeks to deepen economic and security
countries have agreed and will collaborate to cooperation with its maritime neighbors and assist in
develop a bilateral air corridor using India's credit building their maritime security capabilities. For this,
line. India would cooperate on the exchange of
Japan: India and Japan have jointly declared to information, coastal surveillance, building of
build the Asia-Africa Growth Corridor (AAGC). infrastructure and strengthening their capabilities.
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Further, India seeks to safeguard its national interests The Scarborough Shoal: claimed by
and ensure Indian Ocean region to become inclusive, Philippines, China and Taiwan.
collaborative and respect international law. SAGAR Almost all the South China Sea, its land
provides a mechanism for India to expand strategic features, and resources: claimed by China by
partnerships with other IOR littorals in Asia and
its nine dash line
Africa.
Modernizing India’s Naval Power: India is
modernizing its naval power it has completed its
Nuclear Triad by commissioning INS Arihant and
has inducted INS Vikramaditya, in Navy in 2013.
Further it is indigenously building another
aircraft carrier INS Vikrant.
Thus, India is trying to balance China’s rise in IOR
through multiple policy interventions which
include building bilateral and multiple regional
alliances and Asia-Africa Growth Corridor
building, naval infrastructure and naval capacity.
PACIFIC OCEAN- SOUTH CHINA SEA
(SCS) DISPUTE
The territorial and maritime disputes along the
South China Sea (SCS) remain unresolved and
continue to impede the path to peace and
security in the Indo-Pacific region.
IMPORTANCE OF SCS
About a third of all the world’s maritime trade This map shows the South China Sea,
goes through the South China Sea carrying surrounding nations, and the “nine dash line,”
trillions of dollars of trade which makes it a which indicates the extent of China’s claims of
significant geopolitical water body. Half of all oil control over these waters.
and gas tankers from the Middle East sail into it Previous Year Question
on their way to China, Japan, the U.S., and 2014 Q16. With respect to the South China sea,
elsewhere. maritime territorial disputes and rising tension
The Sea itself is rich in fish, Oil and natural gas affirm the need for safeguarding maritime security
reserves which are estimated at 11 billion to ensure freedom of navigation and over flight
barrels of untapped oil and 190 trillion cubic feet throughout the region. In this context, discuss the
of natural gas. bilateral issues between India and China. (200
The location of the Sea also makes it militarily Words) 12.5 Marks
strategic, valuable for national security. China claims it occupied South China Sea islands
55% of India’s trade with Indo-pacific passes in ancient times. It progressively asserted its
through south-China sea and ONGC exploring oil claim over entire SCS through following steps-
& gas in Vietnam water. In 2009, China presented the “nine dash line” for
COMPETING CLAIMS the first time at an international conference
Beginning in the 1970s, these conflicts have asserting its indisputable sovereignty over the
involved China and countries of Southeast Asia, islands in the South China Sea and the adjacent
primarily Vietnam, Indonesia, Malaysia, Taiwan, waters. When connected, the dashes form a U
Brunei, and the Philippines: these countries that encloses most of the South China Sea.
claim that China has been encroaching on their In 2012, China asserted its “nine dash line”
sovereign territories and Exclusive Economic by trying to take Scarborough Shoal as its
Zones (EEZs) with its aggressive land reclamation territory.
and island-building activities. China added a tenth dash in 2013 to include
China, Vietnam and the Philippines are the Taiwan.
most active claimants. These disputes include: Earlier China drove out Vietnamese troops
Paracels: claimed by China, Taiwan, Vietnam from the western Paracels in 1974. By the
Spratlys: claimed by China, Taiwan, Vietnam, late 1980s, China controlled all of the
Brunei, Malaysia, Philippines Paracels . China built oil-drilling rigs in
EXPANSION OF NATO
NATO was formed as a collective defence
organisation on 4 April 1949 by 12 founding members
led by USA. Later Greece and Turkey (1952), West
Germany (1955), Spain (1982) and reunified Germany
(October 1990) became members of NATO.
The Soviet Union formed Warsaw Pacton May 14,
1955composed originally of 8 nations in response to
expansion of NATO. After the democratic revolutions
of 1989 in eastern Europe, the Warsaw Pact was
formally declared “non-existent” on July 1, 1991.
Against informal understanding among USA and
Russia that NATO would not be expanded into ex-
b) NATO’s support to Ukraine: Russia is not happy Soviet territories, 5 waves of expansion of NATO were
carried out after 1991-
with efforts by the US and European Union to
a) 1999: Accession of the Czech Republic, Hungary
induct Ukraine into the US-led military alliance and Poland
of NATO and keep it out of Russian control. b) 2004: Accession of Bulgaria, Estonia, Latvia,
Ukraine acts a crucial buffer between Russia and Lithuania, Romania, Slovakia and Slovenia.
West.Russia views the growing support for c) 2009: Accession of Albania and Croatia
Ukraine from NATO - in terms of weaponry, d) 2017: Accession of Montenegro
training and personnel - as a threat to its own e) 2020: Accession of the Republic of North
security. Ukraine is a red line for Moscow, Macedonia
equivalent to what Cuba was to USA in 1962 Russia views NATO as a vestige of the cold war,
Cuban missile crisis.Russia is worried about the inherently directed against it. Russia points out that it
has disbanded the Warsaw Pact, its military alliance,
consequences of the US-led military alliances
and reasons why the west should not do the same.
expanding right up to its doorstep Russia considers post-soviet space its traditional
RUSSIAN INTEREST IN THE BLACK SEA sphere of influence, in the so called ‘Near Abroad’.
The unique geography of the Black Sea region In March 2007, in the Munich Security Conference,
confers several geopolitical advantages to Russia Putin complained that NATO expansion represented a
a) Firstly, it is an important crossroads and serious provocation that reduces the level of mutual
strategic intersection for the entire region. trust and asked against whom was this expansion
intended.
Access to the Black Sea is vital for all littoral and
neighboring states, and greatly enhances the RUSSIA’S GRIEVANCES WITH WEST
projection of power into several adjacent a) EXPANSION OF NATO
regions. COLOUR REVOLUTION:- Political interference by west
b) Secondly, the region is an important transit in Ex-Soviet Countries to install a Pro-West Regime.
Example 2004-05 there was a Tulip revolution in
corridor for goods and energy.
Kyrgyzstan and 2004 orange revolution in Ukraine
c) The Black Sea is bordered by countries which are
either NATO members or aspiring to be one. Due BACKGROUND OF THE LATEST CRISIS
to this faceoff between NATO countries and a) The conflict has been developing since a long
Russia, the Black Seais a region of strategic time.
importance & a potential maritime flashpoint. b) May 2002: President Leonid Kuchma announces
d) Thirdly, Russia needs warm water ports on Black Ukraine’s goal of eventual NATO membership.
Sea coast. Its northern ports are ice-bound for c) 2004- Orange Revolution in Ukraine- Pro-
much parts of the year. Its black sea fleet was Russian Viktor Yanukovych’s presidential win
also based in Sevastapol. It also provides Russia was cancelled following widespread protests –
access to the Mediterranean Sea and its bases at known as the Orange Revolution—against
Latakia and Tartus in Syria. electoral fraud. This protest was instigated by
CIA (of USA)
CONCERN OVER AN ECONOMICALLY d) 2008- NATO agrees that Georgia and Ukraine will
RESURGENT, DEMOCRATIC UKRAINE become members in future.
In view of Some experts, emergence of an
economically resurgent and democratic Ukraine
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e) 2010:- Viktor Yanukovych’s was got selected of goods and services, and visa-free travel to the
president as in legitimate manner EU for Ukrainians
f) 2013- The Obama administration’s interference
in Ukraine’s internal political affairs in 2013 and
2014 to help demonstrators overthrow Ukraine’s
elected, pro‐Russia president Viktor
Yanukovych’s was the single most brazen
provocation, and it caused tensions to spike. The
trigger factor was his decision to reject the
European Union’s terms for an association
agreement in late 2013, in favour of a Russian
offer. It resulted Euromaidan Protests in which
he had to flee Ukraine and later he was removed
from office and he fled to Russia.
g) 2014- Moscow immediately responded by seizing and
annexing Crimea, and a new cold war was underway.
A disputed and internationally rejected referendum
was held on March 16, 2014, in which Moscow claims
96.77 per cent of Crimeans voted to become part of
Russia. Despite international outcry, Russia formally
incorporated Crimea as two Russian federal subjects
– the Republic of Crimea and the federal city of
Sevastopol – on 18 March 2014.Russia seized Crimea
from Ukraine in what was the first time a European
country annexed territory from another country since
World War II.
President Vladimir Putin had insisted Russia annexed BUILT UP OF WAR
Crimea to protect ethnic Russians from “far right Jan. 2021: Zelenskiy appeals to U.S. president
extremists” whom Russia claimed overthrown Joe Biden to let Ukraine join NATO. In February,
President Yanukovych. his government freezes the assets of opposition
The Donbass region (the Donetsk and Luhansk leader Viktor Medvedchuk, the Kremlin's most
regions) of eastern Ukraine has been facing a pro-
prominent ally in Ukraine.
Russian separatist movement since 2014. Almost 40%
of the people in these two areas are ethnic Russians,
Dec. 17 2021: Russia presented security
forming the largest minority in the Donbass region. demands to West. Washington later responded
According to the Ukrainian government, the to Russia's security demands, repeating a
movement is actively supported by the Russian commitment to NATO's "open-door" policy
government and Russian paramilitaries make up while offering a "pragmatic evaluation" of
between 15% to 80% of the separatists fighting Moscow's concerns. Two days later Russia says
against the Ukraine government. its demands not addressed.
h) 2015- Minsk I and II agreements: France and On Feb. 21, 2022, Putin ordered what he called
Germany initiated talks between Ukraine and peacekeeping forces into two breakaway regions
Russia under the Normandy format leading to in eastern Ukraine after recognising them as
the Minsk agreements, in 2014 and 2015. The independent- the Luhansk “People's Republic”
first was for a ceasefire between Ukraine and and Donetsk “People's Republic”. Three days
the Russian-backed separatists. The second was later Putin authorized "special military
between Ukraine, Russia, the two separatist operations" in Ukraine. Russian forces begin
regions of Luhansk and Donetsk and the missile and artillery attacks, striking major
Organization for Security and Co-operation in Ukrainian cities including Kiev. As per Russian
Europe (OSCE). It set out military and political President, the military action announced by
steps that remain unimplemented. It was more Russia will seek to demilitarize Ukraine and
elaborate than the first on ceasefire, and the came in response to threats from Ukraine.
holding of elections for local governance. A Russia has sought to justify its “special military
major blockage has been Russia’s insistence that operation” as a response to the alleged act of
it is not a party to the conflict and therefore is genocide of the Russian speaking people in the
not bound by its terms. territories of Donetsk and Luhansk. Russia's
i) 2017: An association agreement between invasion has sent more than 2.5 million people
Ukraine and the EU opens markets for free trade
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fleeing across Ukraine's borders and trapped direct intervention, such as imposing no-fly zone
hundreds of thousands in besieged cities over Ukraine for fear of being dragged into a war
with Russia.
WHAT ARE RUSSIA’S DEMANDS?
4. The West has sanctioned Russian business,
Russia wants a guarantee that Ukraine can never
frozen state assets and cut off much of the
join NATO Russia's main demand is a
Russian corporate sector from the global
commitment from NATO to end its further
economy in an attempt to force Putin to change
expansion into former Soviet republics —
course. Following the invasion of Ukraine, Russia
especially Ukraine. Russia wants NATO to rescind
was partially banned from SWIFT. French
a 2008 promise that Ukraine could someday join
Finance Minister Bruno Le Maire had described
the defence alliance. It wants Ukraine to amend
the measure as a “financial nuclear weapon”.
the country’s Constitution to drop attempts to
join any bloc (NATO) and reinstate its neutrality. WHAT IS SWIFT?
Russia wants NATO arms out of Eastern Europe The SWIFT system stands for the Society for
Russia wants NATO to stop deploying its Worldwide Interbank Financial Telecommunication
weapons and forces in countries in Central and and is a secure platform for financial institutions
Eastern Europe that joined the alliance after to exchange information about global monetary
1997.Russia has nervously watched as NATO has transactions such as money transfers. It operates
demonstrated it can deepen its involvement in as a middleman to verify information of
Ukraine — providing weapons and training. transactions by providing secure financial
NATO missiles on Ukrainian soil might pose messaging services to more than 11,000 banks in
serious threat to Russia’s security. over 200 countries.
Russia’s demands in Ukraine’s territory It wants Based in Belgium, it is overseen by the central
Kyiv banks from eleven industrial countries. Cutting
a) to accept Crimea as a Russian territory, off a country from SWIFT in the financial world is
b) to recognize Donetsk and Luhansk as equivalent to restricting Internet access of a
independent republics nation. Prior to this, only one country had been
cut off from SWIFT — Iran. It resulted in it losing
RESPONSE OF INTERNATIONAL a third of its foreign trade.
COMMUNITY The Western countries have said that cutting
1. Several rounds of talks have been held between Russian banks out of Swift will ensure they are
Russian and Ukrainian officials to discuss the disconnected from the international financial
opening of humanitarian corridors for the system and harm their ability to operate
evacuation of civilians, resuming export of globally. The aim is for Russian companies to
foodgrains via Black Sea port, etc .The Ukrainian lose access to the normal smooth and instant
President, Volodymyr Zelensky, is reported to transactions provided by Swift, disrupting
have said that he is prepared not to insist on his payments for its valuable energy and agricultural
country’s North Atlantic Treaty Organization exports.
(NATO) membership and he is ready to discuss 5. US announced a total ban on American imports
the status of the eastern region of Donbas. of Russian oil and gas and gold etc. while EU
2. NATO strongly condemned Russia’s invasion of announced a plan for gradual reduction in its
Ukraine, which is entirely unjustified and dependence on Russian energy supply and
unprovoked. It considered it as a grave violation diversification of its energy imports basket.
of international law and a serious threat to Euro- 6. Sports and cultural bans—the FIFA World Cup
Atlantic security. NATO Allies call on President (both men’s and women’s), International Ice
Putin to immediately stop the war, withdraw all Hockey Federation, Formula 1, and Eurovision
his forces from Ukraine, and engage in good Song Contest—tried to foster a sense of isolation
faith in diplomatic efforts. Furthermore, NATO for the average Russian.
calls on Russia to fully respect international 7. The West's withering set of sanctions on Russia
humanitarian law and to allow safe and has taken a dramatic toll, the country defaulted
unhindered humanitarian access and assistance on its foreign debt for the first time since the
to all persons in need. Bolshevik revolution more than a century ago. At
3. The Western countries led by the US, have the same time, the sanctions have inflicted pain
offered Ukraine financing, military equipment on Americans and Europeans who are suffering
and training and have applied increasingly strict high gas prices. Due to adverse impact of
sanctions on Russia. But they have ruled out any sanctions, a deep recession is expected and
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Russia's economy is expected to shrink by 10% in push it back toward its traditional role of
2022. Moscow is still reaping massive revenues protecting Europe and, by extension, North
from its oil exports -- due in part to the America.
skyrocketing prices. Europe’s strategic geography is changing – to
8. On September 2, 2022, Finance Ministers of all NATO’s advantage. Sweden and Finland shed
G7 countries as well as the European Union their policy of neutrality between Russia and the
announced their plan to impose a ‘PRICE CAP’ West and applied for NATO membership. The
on Russian Oil exports. It would mean simply addition of Finland and Sweden to NATO means
not buying Russian oil unless the price is reduced that all of the Baltic Sea’s littoral states except
to where the cap is determined. For countries Russia will be NATO members. Their
that don’t join the coalition, or buy oil higher membership will double the length of NATO's
than the cap price, they would lose access to all border with Russia and make the Baltic states
services provided by the coalition countries easier to defend. The inclusion of the two will
including for example, insurance, currency give NATO a whole new range of ports and air
payment, facilitation and vessel clearances for bases, and the ability to reinforce the Baltic
their shipments. States more easily.
9. G7 countries say they are aiming to reduce the Putin’s decision to invade is in direct violation of the
price of oil, but not the quantity of oil that Russia Budapest Memorandum, a key instrument assuring
sells, so as to control inflation globally while Ukraine’s sovereignty and territorial integrity. This
hurting the Russian economy and its ability to may have far-reaching consequences for the future of
nuclear non-proliferation and disarmament. Russia’s
fund the war in Ukraine
actions will weaken
As far as global institutions is concerned:- In UN a) The credibility of major power security
general assembly ,UN security council, UN assurances,
Human rights commission , in IAEA , all have b) Undermine the nuclear non-proliferation regime
passed resolutions against Russia. and
RUSSIAN RESPONSE TO WESTERN c) Dampen prospects for future disarmament.
In light of Ukraine’s experience, the pursuance of
SANCTIONS nuclear weapons to safeguard one’s sovereignty and
Russia has resorted to three main sanctions defense independence may be seen as more legitimate. It
strategies to contain those costs: may trigger a resurgent interest in nuclear weapons.
a) alternative trade partners,
b) sanctions busting, and 2) ECONOMIC IMPACT
c) domestic offsets. In an increasingly interconnected world, the impact
Russia has banned exports of more than 200 of war do not confine to Ukraine and Russia, it has far
products, including telecoms, medical, vehicle, more effect on other economies.
agricultural, electrical equipment and timber. The a) Rising energy costs and disruptions to supply chains
SWIFT threat did prompt Russia to develop its own, caused by the fighting and sanctions have fuelled
very fledgling, cross-border transfer system called the inflationary pressures worldwide, thereby sapping
System for Transfer of Financial Messages (SPFS) as growth world-wide. Most of the world can be
an alternative to Swift. Separately, Moscow is counted as economic losers from the conflict, with
working with Beijing to connect to China's Cross- rising food and energy prices set to push up inflation
Border Interbank Payment System (CIPS) - another from Asia to Europe and the U.S. squeezing
alternative to Swift which processes payments in household budgets just as economies were beginning
Chinese yuan. to put the worst of the pandemic behind them. Prices
Russia has diversified its energy exports by selling oil have surged as investors judge those Western
at steep discounts to different countries including sanctions and logistical disruptions could choke off
India and China. Russia’s abundant supplies of oil, gas, grains, metals
US announced to provide another $4.5bn to Ukraine. and fertilizers, while the war has disrupted Ukrainian
Moscow suspended nuclear arms inspections under and Russian exports of food staples such as wheat
2010 new START treaty with Washington. and sunflower seeds.
b) Supply of semiconductors, which decreased as a
IMPACT OF RUSSIAN INVASION result of Covid-related disruptions but started picking
1) GEO-STRATEGIC IMPACT up as manufacturing chains normalized, is now being
threatened once again by the Ukraine War. This is on
Shift NATO focus to Europe again from China-
account of supply of two key raw materials — neon
An escalating crisis in Ukraine threatens to
and palladium — that are at a risk of being
overturn recent efforts by the United States and constrained. Russia supplies over 40 per cent of
NATO to shift the alliance’s attention to the world’s palladium and Ukraine produces 70 per cent
security challenge posed by China, and would of neon.
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c) Energy politics- the politics around energy has EU feared deliberate disruption in Russian gas
been a subtext to the Ukraine crisis. Soon, and oil supplies- driving energy prices up.
thereafter, Germany halted the Nord Stream 2 Russian countersanctions, most significantly
— a 1,230- km-long gas pipeline — that would cutting natural gas supplies to the European
have dramatically increased availability of Union, are having a bite of their own.
Russian gas in Germany. Sanctions prevent On September 5, 2022, in response to ‘price cap’
Russia from pumping Russian gas through the plan of G 7, Russia also announced a halt on all
newly built Nord Stream 2 pipeline to Germany. supplies via the Nord Stream 1 pipeline to
Nord Stream 2 is one of two pipelines that Europe due to “maintenance issues” arising from
Russia has laid underwater in the Baltic Sea in the EU sanctions already in place, raising fears of
addition to its traditional land-based pipeline a very difficult winter for European countries.
network that runs through Eastern Europe, Gas shortages are already causing major
including Ukraine industries to cut back production. Conservation
as well as fuel- and supplier-switching measures
have helped but only somewhat. The EU’s recent
gas-sharing agreement has enough loopholes to
still leave the specter of winter rationing
looming. Indeed, some rationing has already
started. Amid one of the hottest summers on
record,
a) Spain is requiring commercial air
conditioning to be set no lower than 27
degrees Celsius
b) The Netherlands is encouraging 5-minute
limits on showers, and
c) In France, “urban guerrillas” are shutting off
storefront lights.
4) GLOBAL PEACE:
The conflict has heightened tensions in Russia’s
relations with both the United States and
Europe, complicating the prospects for
cooperation elsewhere including on issues of
terrorism, arms control, and a political solution
in Syria.
INDIA’S STAND RUSS-UKR CRISIS
India has been neutral in this matter
The Volodymyr Zelenskyy-led government
requested India to intervene and hold talks with
Russian President Vladimir Putin. After the
conflict began, Modi has held many telephonic
conversations with Russian President Vladimir
Putin and spoke to Ukrainian President
Volodymyr Zelenskyy twice. Indian PM Modi
appealed for an immediate cessation of violence
in his phone call to Russian President Putin. He
expressed his long-standing conviction that the
differences between Russia and Ukraine can only
be resolved through honest and sincere
dialogue.
Since the start of the Russia-Ukraine war India
has abstained from voting more than 11 times
3) ENERGY CRISIS whenever this issue has come up – be it the
In any conflict- Europe worries Russia will use United Nations General Assembly (UNGA), the
energy as a weapon to pressurize Europe which United Nations Security Council (UNSC), the
is heavily dependent on Russian energy supplies. United Nations Human Rights Council (UNHRC),
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or the International Atomic Energy Agency the three other Quad member countries have
(IAEA). It was justified on the ground of national been severely critical of Russia for its military
interest. aggression against Ukraine.
However, India has unequivocally condemned India’s stand is criticized by Western Countries.
the violence and called for the resolution of the The West views India’s stand as condoning
conflict through dialogue and diplomacy. India Russia’s actions and applying double standards.
called for urgent de-escalation of tensions and As per them, India raises the issue of “territorial
expressed deep concern over the developments. integrity and sovereignty” when it comes to
Russia had welcomed India’s balanced, China. However, it chose to remain neutral on
principled and independent approach after the Ukrainian issue.
India’s statement at UNSC. Further India has U.S. President Joe Biden said India’s position was
called for respecting the sovereignty and “somewhat shaky”. His Deputy National Security
territorial integrity of all countries. India also Adviser for International Economics warned
sent humanitarian aid to Ukraine and expressed India of “consequences” if it conducts trade with
its outrage at the civilian killings in Ukraine’s Russia circumventing American sanctions.
Bucha, calling for an independent probe into this India and the West may have their own
incident. India has explained its abstentions as perspectives about the Russia-Ukraine conflict,
taking a neutral approach since this is not India’s but India is making an effort to work around the
war. differences, while maintaining its focus on the
In his meeting with President Putin on the Indo-Pacific Region. In the past two months,
sidelines of SCO summit in Samarand on 17 India has had a hectic diplomatic schedule with a
September 2022, PM Modi told Putin that this flurry of high profile meetings. These
was not an “era” of war and “dialogue” was the engagements with the United States, Japan,
only way forward. This indicated India’s Australia, the U.K., and the EU indicate India is
discomfort with Russia’s attack on Ukraine for maintaining its focus on the Indo-Pacific Region.
the first time in public, although New Delhi has REASONS FOR INDIA’S DIPLOMATIC
not criticized Russia for its action so far. The
conversation between the leaders also revolved DILEMMA:-
around major food, energy security crisis the 1. TO MAINTAIN BALANCE BETWEEN RUSSIA
world is facing. AND US
Earlier in 2014, India had not joined the Western a) India has good relations with its strategic
powers’ condemnation of Russia’s intervention partners Russia and the US and siding with
in Crimea and kept a low profile on the issue. one of these countries could cost India its
Also in November 2020, India had voted against relationship with the other. India’s position
a Ukraine-sponsored resolution in the UN that on the ongoing Ukraine crisis is guided by
condemned alleged human rights violations in the desire to keep clear of the crosshairs of
Crimea thereby backing old ally Russia on the big power rivalry and is reminiscent of its
issue. In times of the previous three crises – quintessential ‘strategic autonomy’.
a) the Hungarian Revolution of 1956, b) Like any other country, India also retains the
b) the Prague Spring of 1968, and right to take policies based on pragmatic
c) the Soviet occupation of Afghanistan in 1979 realism and its core national interests. And
– India chose not to use condemnatory India thinks that a neutral position anchored
language against Russian foreign policy. in strategic autonomy which keeps channels
Russia, for its part, was seen as a steadfast open with both sides is what serves its
supporter of India in the United Nations interests.
Security Council, particularly with respect to c) India has maintained its neutrality from
the Kashmir dispute and India’s nuclear distant conflict in Eastern Europe.
ambitions. Strategically, this is the most important
At the recent Quad meeting in Australia, India global crisis since the end of the Cold War.
did not publicly express concern about Russia’s India has improved its strategic partnership
military build-up. Australia, Japan came out with the U.S., and the West in general, over
more explicitly on the American side during the the last 30 years, while at the same time
Quad meeting. Australia said that the Quad retaining warm ties with Russia. This
member countries have accepted India's balancing was not tested in the recent past.
position on the crisis in Ukraine Except for India, But with the Russian attack on Ukraine and
the near-total breakdown in ties between
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Russia and the West, countries such as India b) The new sanctions could exclude Russia
are now faced with a difficult choice of from the Swift payments system.
picking a side. IMPACT ON INDIA
d) Given the transformation of India’s
1) The external sector shocks and tremors quickly
partnership with the U.S., which also sees
overwhelm the domestic stock markets.
India as a counterweight to China in the
Investors have lost millions of wealth due to the
Indo-Pacific region, many expected India to
market fluctuations arising out of brewing
give up its strategic autonomy and take a
conflict that started in early February and
stand that aligns with that of the West. It did
culminated in invasion on February 24. With
not happen.
razing levels of invasion without any sign of
2. THE INDIA’S OWN VULNERABILITY IN abatement, the losses could be deeper.
NEIGHBORHOOD 2) Weak rupee against US $ is another major
a) Given its experiences in its own macroeconomic concern leading to widening
neighborhood, with China and Pakistan, current account deficit (CAD). Rating agency
India is also wary of the implications of not ICRA expects CAD to widen to 3.2 percent in
condemning one country unilaterally FY23 if the crude prices continue to stay
attempting to change the borders it shares elevated at a threatening level. The continued
with another. fall of rupee is pushing exporters into new
b) India urges that all member States dimensions of exchange rate risk. It has touched
demonstrate their commitment to the a low of Rs.80 to dollar at its all-time low. There
principles of the UN Charter, to international are indications that if Russia does not sell crude
law and respect for sovereignty and oil and OPEC does not increase supply, there is a
territorial integrity of all states. hovering further upside risks to inflation.
3. INCREASING SINO-RUSSIA PROXIMITY 3) Exports to Russia account for less than 1% of
a) India is worried about the Russia-China axis India’s total exports, but exports of
too. India is also conscious that the hostility pharmaceuticals and tea could face some
between the West and Russia is likely to challenges, as will shipments to CIS countries.
push Moscow further in the direction of Freight rate hikes could make overall exports
Beijing. The West not only failed to deter less competitive, too.
Russia, but its limited responses to war are 4) In June 2022, Russia has overtaken Saudi Arabia
also pushing Russia deeper into the Chinese to become India's second-biggest supplier of oil
embrace. The crisis will make Moscow more behind Iraq as refiners buy Russian crude
dependent on friends like China and build a available at a deep discount following the war in
regional bloc of sorts that India is not a part Ukraine. The pressure on India to stop purchase
of. of Russian oil and gas has increased in the
b) Russia is already averse to the Indo-Pacific backdrop of intensifying attacks on Ukraine.
concept and the Quad as a revival of Cold Similar geopolitical crises in the past, relating to
War bloc politics and views them as being Iran and Venezuela, had forced India to opt for
against its Asia-Pacific interests. Any Ukraine alternative sources of energy, which came “at a
conflict and a resulting breakdown of Russia- higher cost.
West ties will strengthen Russian opposition 5) The assertion of India’s position came as
to these concepts and forums which are international demand increased on India to stop
binding us to the US. India’s relation with buying Russian energy. The Indian side argued
the Beijing is at an abysmal low since the that a large number of Western and European
Galwan clash of June 2020. India can’t afford countries, in particular, were purchasing energy
to alienate Russia particularly when Indian from Russia even though Moscow was carrying
and Chinese troops remain in a border out an aggressive military operation across
stand-off. Ukraine. Among the top buyers of Russian oil
4. INDIA’S INVESTMENT IN RUSSIA and gas are Germany, Italy, France, and the
a) India’s plans in Russia’s energy sector and in Netherlands. The source pointed out that apart
the development of its Far East, in general, from the major countries of Europe, even
would become problematic, especially by frontline states such as Poland, Lithuania,
the reluctance of the private sector due to Romania and Finland were importing vast
the complex US sanctions. quantity of oil.
INDIA & THE PALESTINIAN CAUSE the Israel-Palestine violence last year, India
Keeping India’s wider strategic interests in expressed India’s “strong” support to the “just
perspective, successive Indian governments Palestinian cause” and “unwavering” support for
since the early 1990s have walked nuanced line the two-state solution.
between expressing genuine concern for the India believes that the peaceful resolution of the
Palestinian cause and expanding its commercial Israel-Palestine conflict would bring lasting
and defense ties with Israel. peace and stability to the region and reiterated
Over the years, the Indian government has the need for an early resumption of the political
toned down its reactions to Israel’s treatment of course by launching credible direct negotiations
Palestinians. India has also begun denouncing on all final status issues. India has consistently
Palestinian suicide bombings and other terrorist called for direct peace negotiations between
acts in Israel, something that was seen earlier as Israel and Palestine taking into account the
rather justified in light of the Israeli policies legitimate aspirations of the Palestinian people
against the Palestinians. India is no longer for statehood and Israel’s legitimate security
initiating anti-Israel resolutions at the United concerns
Nations. TIES DURING MODI REGIME
During the UPA’s 10 years in office, Mahmoud a) Political ties
Abbas, head of the Palestinian Authority that Israeli policy makers and analysts have often
administers the West Bank, visited four times — expressed displeasure at the lack of high-level
in 2005, 2008, 2010 and 2012. India voted for political interactions with Indian leaders, despite
Palestine to become a full member of UNESCO in the robust strategic engagement between the
2011, and a year later, co-sponsored the UN two countries. During Modi Regime, high level
General Assembly resolution that enabled bilateral visits have been a remarkable feature of
Palestine to become a “non-member” observer bilateral ties.
state at the UN without voting rights. India also PM Modi’s meeting with Prime Minister
supported the installation of the Palestinian flag Benjamin Netanyahu on September 28, 2014, at
on the UN premises in September 2015, a year the side lines of the 69th UNGA sessions was the
after Modi was voted to power. first interaction between the Indian and Israeli
The first big shift in India’s policy came during Prime Ministers since the September 2003 visit
the visit of Mahmoud Abbas in 2017 when India of Ariel Sharon to India. PM Netanyahu had
in a statement dropped the customary line in remarked that “sky is the limit” that can be
support of East Jerusalem as the capital of a
g) Constraints to bilateral ties maximise its own national interests. Egypt and
India’s huge reliance on Arab countries and Iran
Jordan have peace treaties with Israel. Abraham
for energy security, diaspora interests, security accords have normalized relations between
and connectivity issues force it to have a several Arab countries and Israel. The Palestinian
nuanced approach for ties with Israel so as not leadership, despite disagreements and
foreign policy stances witnessed with respect to economic realm in recent years, acquiring a
Russia. Barring the US, no other country in the strategic sense and pushing both countries to
I2U2 — Israel, India, or the UAE — has followed beef up their security partnership.
the Western lead of imposing sanctions on India would also not prefer to sit on the margins
Russia. at a time when China is raising its profile in West
Furthermore, while the Indo-Pacific Quad was Asia. Chinese President Xi Jinping recently visited
primarily focused on defence and security, the Egypt, Saudi Arabia and Iran and the relationship
West Asia Quad seems to focus more on between Beijing and Tehran is particularly going
economic cooperation, and not security strong especially with rising tensions between
cooperation USA and Iran.
Even on the issue of China, the grouping doesn’t For Saudi Arabia
seem to have converging interests. The UAE is Enhanced ties with India are important for Saudi
already a signatory to China’s Belt and Road Arabia as well. The kingdom is facing economic
Initiative (BRI) and Israel is expected to gain strain in the wake of persistently weak oil prices.
from the initiative due to its strategic The U.S. is no longer as dependent on the region
geographical positioning as a transit country, for energy as it used to be, due to the shale
connecting Europe, Asia and Africa. The BRI gives boom. Demand from China is also receding in
greater scope and reach to Israeli technology, the wake of a slowdown. In this context, India is
and it also helps in boosting tourism. Maybe this a vital market for Saudi Arabia.
is why, while Beijing has often attacked the Indo- There is believed to be friction between
Pacific Quad grouping as ‘Asian NATO’, it has Islamabad and Riyadh over the former warming
avoided being overly critical of the I2U2 yet. up to Tehran and their growing energy
CONCLUSION cooperation. Pakistan had refused to join Saudi
Arabia’s war coalition that has been bombing
I2U2 is an ideal example of how ‘minilaterals’
Yemen for the past couple of years in the name
can reshape West Asia’s geopolitical landscape,
of fighting the Iran-backed Shia rebels. So
enabling India to establish both economic
growing ties with India enables Saudi Arabia to
relations and long-term security cooperation
have a more balanced South Asia policy
through a comprehensive engagement strategy.
especially with the world’s emerging economy –
In recent years, India’s footprint in the region
Indian economy
has grown substantially, making the I2U2
alliance natural next step for India to further Recent Steps taken
consolidate those ties. For decades, India was a passive player in West
Asia — a beneficiary of good relationships with
INDIA –SAUDI ARABIA TIES multiple actors. Despite the growing economic
IMPERATIVES FOR BETTER TIES ties, political contacts between Saudi Arabia and
For India India were at minimum till the Manmohan Singh
There’s a consensus in India’s foreign policy government took office in 2004.
establishment that maintaining vibrant ties with The broader framework for reactivating India’s
Saudi Arabia is imperative to its national Saudi ties was set in the post-9/11 world where
interest. Today, Saudi Arabia is India’s second counter-terror cooperation became a new
largest supplier of crude oil which makes Riyadh diplomatic norm between terror-affected
a vital player in the country’s quest for energy countries. Dr. Singh found it an opportunity to
security.
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deepen security ties with Sunni Muslim joint statement, issued had during first visit had
countries. indirect references to Pakistan’s dual policy
West Asia acquired great significance in Dr. towards terrorism. In view of some experts, it is
Singh’s world view; he even appointed a special clear that Mr. Modi is giving a Pakistan spin to
envoy for the whole region. the ‘Act West Asia’ policy of his predecessor.
The January 2006 visit of the late King, Abdullah India’s objective appears to be to build a
bin Abdulaziz, to Delhi set a new tone for “counter-terror narrative” in diplomatic
bilateral ties. Dr. Singh reciprocated the visit in engagements with Pakistan’s close allies which
2010 — the first Indian Prime Minister visiting could complicate the latter’s foreign policy.
Saudi Arabia in nearly 30 years — and signed the The Crown Prince Mohammed Bin Salman
Riyadh Declaration, which set the framework for visited India in February 2019, giving a further
enhanced cooperation in the security, defence boost to the bilateral ties. Prince Salman
and economic spheres. declared his country’s intention to invest up to
Since then, there has been marked improvement $100 in India over the next few years, including a
in security cooperation and intelligence sharing plan by the Saudi Basic Industries Corp. to
between India and Saudi Arabia. Riyadh also acquire two LNG plants.
extradited several terror suspects to India in a During his second visit to Riyadh in October
clear departure from its established policy 2019, Prime Minister Modi delivered a keynote
towards New Delhi. address at the high-profile Future Investment
Saudi Arabia is India’s fourth largest trade Initiative (FII), dubbed as 'Davos in the desert'.
partner. The bilateral trade was valued at US Under its vision 2030, Riyadh has termed India
$42.8 billion during FY 2021-22. India also as its strategic partner, making India fourth
intends to further promote bilateral trade and country after France, the UK and China to earn
widen its scope particularly in the non-oil such a significant status in Riyadh.
sectors. Also, Strategic Partnership Council was
PM Modi’s visits to Saudi Arabia- April 2016 established to coordinate on important issues.
and October 2019 This is a major development since Saudi Arabia is
PM Modi’s visits have further accelerated this now only the fourth country with whom India
movement with the two countries agreeing to has an intergovernmental mechanism headed by
deepen ties in energy infrastructure and the Prime minister. Germany, Russia and Japan
undertake joint ventures in the energy sector. are the other three.
This is a significant step forward towards This was PM Modi’s 1st visit to Riyadh after
building a strategic energy partnership with the removal of J&K’s special status. Pakistanis were
Kingdom. told by the Saudi that they consider Kashmir as
PM Modi, during his visit to Riyadh, encouraged India’s internal matter in which they do not want
more investments from Saudi Arabia into India. to interfere.
According to the Sovereign Wealth Fund The two sides stressed on energy security and
Institute, Saudi Arabia holds the world’s fourth "Strategic Petroleum Reserves" (SPRs). ISPRL
largest sovereign wealth fund with the present (Indian Strategic Petroleum Reserves Limited)
holding standing at USD 632.3 billion. India signed an agreement with Saudi Aramco to lease
intends to tap into this huge fund by inviting part of the 2.5 million-tonne Padur storage in
investments from the Kingdom. Saudi southern Karnataka state and Indian Oil Corp
investments in India during the last 15 years signed a preliminary deal with Saudi Arabia’s’ Al
have totalled only USD 53.37 million, which is far Jeri company for cooperation in the downstream
below the potential. Both sides signed an sector, including setting up fuel stations in the
agreement to promote investment and Saudi kingdom.
Arabia has shown interest in investing in India’s India’s influence in the Gulf region was starkly
infrastructure sector. visible when India was invited to the Foreign
Both countries have an MoU concerning Ministers’ meeting of the Organisation of Islamic
Cooperation in the Exchange of Intelligence Cooperation (OIC) States in Abu Dhabi in 2019.
related to Money Laundering, Terrorism In 2020, Pakistan was constantly requesting
Financing and Related Crimes. Saudi Arabia to convene a meeting on Kashmir
The main focus of PM Modi’s first trip to Saudi at the 57member council of Organisation of
Arabia was counter-terrorism. Both Abu Dhabi Islamic Cooperation (OIC) but Riyadh continued
and Riyadh are Pakistan’s historical allies. The to refuse. Experts believe that Pakistan’s
towards the Saudis, even though it might help its strategic and economic ties with Iran under
meet its short-term goals, New Delhi also runs the shadow of Western-led sanctions. America’s
the risk of antagonizing Iran which is still a CAATSA Sanctions on Iran are a big challenge for
stronger player in West Asia post despite India to balance ties between US and Iran. India
imposition of sanctions. So, India needs to do a stopped importing oil from Iran in mid-2019
fine balancing act between two regional following sanctions on Iran by the Trump
heavyweights. administration. India plan to resume buying
Then there’s the ideological problem. While crude oil from Iran the moment U.S. sanctions
Saudi Arabia denounces all forms of terrorism, are eased.
Saudi money is funding Wahhabi Islamic groups Despite that, New Delhi made efforts to work
around the world. Many extremist outfits are through various mechanisms to enhance its
inspired by the Wahhabi branch of Islam. Saudi cooperation with Iran, supplemented by many
Arabia’s aggressive foreign policy in West Asia in important visits by business delegations, high
Yemen and Syria under King Salman bin level officials and Ministers. These visits
Abdulaziz al Saud is doing great damage to reflected not only New Delhi’s desire to
regional stability, which is India’s most reinvigorate bilateral cooperation.
important goal in the region. India’s ties with Iran are actually largely
The poor treatment of Indian workers in Saudi underdeveloped as compared to its much more
Arabia is one of the irritants. The blue collared substantive engagement with the Arab States in
workers always complain about harsh working the Persian Gulf and Israel. Hence India-Iran
conditions and poor treatment. The much relations can be best described as developing
controversial Nitaqat law has already reduced relations.
opportunities for Indian Workers in high paying IMPERATIVES FOR COOPERATION
jobs. Nitaqat is an initiative launched by the Iran with its substantial energy reserves can
Saudi Ministry of Human Resources and Social contribute substantially in ensuring India’s
Development(“HRSD”) to encourage the private energy security as well as to get access to oil and
sector to hire Saudi Nationals, thus, decreasing gas-rich Central Asian nations. On the other
Saudi unemployment and increasing the share of hand, India can provide investment to further
their participation in the labour market. The develop Iranian petrochemical sector, both
initiative restricts certain positions in the private
and religious extremism. To date, the SCO’s platform which can play an important role in
priorities also include regional development. The Afghanistan.
SCO has been an observer in the UN General SCO is a potential platform to advance India’s
Assembly since 2005. Connect Central Asia policy and formulate an
appropriate Eurasian strategy. India can push
OBJECTIVE
for the Chabahar port project and International
The SCO's main objectives are as follows:
North-South Transport Corridor (INSTC).
a) Strengthening mutual trust and
neighbourliness among the member states; b) Security
The SCO provides India with an opportunity to
b) Promoting their effective cooperation in
politics, trade, the economy, research, initiate multilateral and regional initiatives on
technology and culture, as well as in counterterrorism and deal with the illicit drug
education, energy, transport, tourism, trade. Regional Anti-Terrorist Structure (RATS) is
environmental protection, and other areas; a permanent body of the SCO and is intended to
c) Making joint efforts to maintain and ensure facilitate coordination and interaction between
peace, security and stability in the region; the SCO member states in the fight against
and terrorism, extremism and separatism.
d) Moving towards the establishment of a c) Energy
democratic, fair and rational new The Central Asian region is richly endowed with
international political and economic order natural resources and vital minerals. SCO
provides a platform for India’s efforts to connect
STRUCTURE
with Central Asia. SCO can unblock India’s access
Heads of State Council - The Council of Heads of
to Eurasia and provide a fillip to projects like
States is the apex decision-making body in the
Turkmenistan-Afghanistan-Pakistan-India(TAPI)
SCO. This Council meets at the SCO summits,
pipeline.
which are held each year in one of the member
states' capital cities. INDIA’S ENGAGEMENT
SCO Heads of Government Council (HGC)- The At the July 2005 Astana Summit, India, Iran and
Council of Heads of Governments is the second Pakistan were granted Observer status. In July
highest council in the organization. It meets 2015 in Ufa, Russia, the SCO decided to admit
once a year to discuss the organisation's India and Pakistan as full members. On 9 June
multilateral cooperation strategy and priority 2017, at the historic summit in Astana, India and
areas, to resolve current important economic Pakistan officially joined SCO as full- members.
and other cooperation issues, and also to India had assumed the Chair of the SCO HGC, in
November 2019, at the conclusion of the term of
important pillar of bilateral ties between the two across diverse spheres. This includes
countries over the years. With grants alone the iconic Jaffna Cultural Center,
amounting to around USD 570 million, the construction of 153 houses and
overall commitment by GOI is to the tune of infrastructure facilities in ShobithaThero
more than USD 3.5 billion. Demand driven and Village in Anuradhapura;
people-centric nature of India’s development Upgradation of Saraswathy Central College
partnership with Sri Lanka have been the in Pusselawa, Kandy;
cornerstone of this relationship. Grant projects Construction of 600 houses under Model
cut across sectors such as education, health, Village Housing Project in 25 districts of Sri
livelihood, housing, industrial development etc. Lanka;
The Indian Housing Project, with an initial 5000 MT temperature-controlled warehouse
commitment to build 50,000 houses in war in Dambulla;
affected areas and estate workers in the Kandian Dancing School at Pallekelle
plantation areas, is Government of India (GoI)’s DaladaMaligawa Cultural Heritage project,
flagship grant project in Sri Lanka. Overall Kandy;
commitment of INR 1372 crores makes it also 144 transit housing units in Madhu Shrine,
one of the largest projects undertaken by GoI Mannar etc.
abroad. As on date, close to 49,300 houses
The fishermen in Tamil Nadu feel, with the largest foreign investor in Sri Lanka. China’s
justification, that the two agreements have investment stands at $12 billion between 2006
struck a death blow to their livelihood. The and 2019. These investments include two
Island’s importance stems from the fact that the controversial projects: the Colombo Port City
sea around it is rich in white and brown prawns Project and the investment in Hambantota Port
and other varieties of fish. by the China Merchants Port Company. Unable
In 2009, Tamil Nadu Government declared that to service its debt, in 2017, Sri Lanka lost the
the area is controlled by Sri Lanka against the unviable Hambantota port to China for a 99-year
original pact of allowing Indian fishermen to lease.
access the water of Sri Lanka. This resulted in Sri Lanka passed the Colombo Port City
escalation of tensions. The problem continued to Economic Commission Act, which provides for
grow and prop in at times whenever fishermen establishing a special economic zone around the
move in to the Sri Lankan sea area. In 2010, the port and also a new economic commission, to be
Sri Lankan government issued a notice to the funded by China.
Tamil Nadu government saying the Indian court The Colombo port is crucial for India as it
cannot nullify the 1974 agreement handles 60% of India’s trans-shipment cargo.
However, in June 2011, the new Tamil Nadu Most of the government and private investment
government led by Jayalalithaa filed a petition in by China is in major infrastructure projects -
Supreme Court seeking the declaration of the especially ports and airports. In December 2020,
1974 and 1976 agreements as unconstitutional Sri Lanka announced the first large-scale Chinese
on the ground that cession of Indian territory to investment in manufacturing in the country, a
another country should be ratified by parliament $300-million tyre factory near a strategic deep-
through amendment of the constitution.
YUAN WANG - 5 INCIDENT the "China Card" and balancing the two regional
The most recent controversy began with the
powers — India and China. Countries such as Sri
docking of a Chinese research vessel, the Yuan Lanka and Nepal have often used the prospect of
Wang 5, at the strategically significant getting closer with China —India's principal
Hambantota Port in southern Sri Lanka on rival— to level up their place in their dealings
August 16, 2022. The Chinese military research with India. Chinese Ambassador in Sri Lanka Qi
vessel was originally supposed to arrive at the Sri Zhenhong, in an article published in the Sri Lanka
Lankan port on August 11 but Sri Lankan officials Guardian, attacked India for Sri Lanka’s initial
had not cleared it due to “security concerns rejection of the Chinese request to dock the ship
raised by India.”. China was later granted in Hambantota and linked it with Nancy Pelosi’s
permission on August 13 2022 “on condition recent visit to Taiwan. The Indian High
that it will keep the Automatic Identification Commission in Sri Lanka criticized remarks of
System (AIS) switched on within the Exclusive Chinese Ambassador as a violation of basic
Economic Zone (EEZ) of Sri Lanka and no diplomatic etiquette which may be a personal