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INTERNATIONAL RELATIONS
Part 2
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INDEX

Chapter 1 : India - Japan Relationship

Chapter 2: India - Australia Relationship

Chapter 3 : India - US Relationship

Chapter 4 : India - South Africa Relationship

Chapter 5 : India- West Asia Relationship

Chapter 6 : India and Central Asia Relationship

Chapter 7 : India-EU Relationship

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CHAPTER 1: INDIA-JAPAN RELATIONS

The visit of Japanese PM Shinzo Abe to India last year and the commencement of Bullet Train project in
India has highlighted the India-Japan relations once again. The recent talks about a possible QUAD (India-
USA - Japan - Australia) has also given some air to multilateral strategic engagements in the Indo-Pacific
region.

1. Context:
● Japan has been made a permanent participant in the Malabar exercise that also involves the USA
● India-Japan nuclear deal - it is the first time Japan has had a nuclear deal with a non-NPT
country
● The India-Japan-USA trilateral has been upgraded to the ministerial level.
● Japanese FDI and ODA (Overseas Development Assistance) - USD 4 Billion FDI as of 2017 - India
is the highest recipient of Japan’s ODA.
● Bullet train project - involves a loan from Japan to the tune of USD 12 billion for 50 years
● DMIC - Delhi Mumbai Industrial Corridor and Mumbai Trans-harbour link project are through
Japanese assistance.
● Strategic convergence - the Malabar exercises and QUAD developments as a response to the rising
Chinese presence in the Indo-Pacific region.

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2. Historical Background:
The people of India and Japan are guided by common cultural traditions including the heritage of
Buddhism, Democracy, Tolerance, Pluralism and open societies. Buddhism reached Japan through Korea
and China and has been a unifying factor since its reach there.

Ancient times
● Though Hinduism is a little practised religion in Japan, out of the “Seven Gods of Fortune” in
Japan, 4 bears a resemblance to Hindu deities - Saraswati, Kuber, Shiva and Lakshmi. Garura,
the mount of Vishnu is known by the name of Karura in Japanese.
● Buddhism reached Japan through Korea and China and has been a unifying factor since its reach
there. The Indian monk Bodhisena arrived in Japan to spread the teachings of Buddha as far back
as 736 AD. ancient records from the now destroyed Nalanda University revealed the presence of
Japanese students as well.
● One of the most famous Japanese travellers to India was Tenjiku Tokubei named after Tenjiku
(Heavenly abode) the name for India in Japanese.
● In addition to Buddhist connections, Shintoism an animist religion in Japan has its resemblance
to animist traditions of Hinduism.

Medieval times
● During the 16th century, Japan established political contact with Portuguese colonies in India.
They thought that Portuguese were Indians and that Christianity was a new Indian faith. These
mistaken beliefs arose due to Goa being the centre of Portuguese activity in India.

● During the anti-Christian persecutions during 1596, many Japanese Christians fled to the
Portuguese colony in India. By the early 17th century there was a community of Japanese traders
in Goa apart from the slaves brought by the Portuguese from Japan.
● The direct political exchange between India and Japan began during the Meiji restoration period
(1868-1912) when Japan embarked on the path to modernisation. Japan-India Association was
founded in 1903. Further, the cultural exchange occurred through cinema, during the mid to late
20th century. Both Indian and Japanese cinema witnessed their golden period during the 1950s
and 60s. Satyajit Ray and Gurudatt were very popular in Japan and the same went with Japanese
films by Akira Kurosawa.

Indian Independence Movement

● As far back as in 1899, Tokyo University had set up a chair in Sanskrit and Pali each. This led to
an influx of Indian students in Japan. They founded the Oriental Youngman’s Association in
1900. The organization carried out anti- British activities and propaganda in Japan.
● The Anglo-Japanese alliance came to an end in 1932. This resulted in mutual resentment against
Britain by both Indians and Japanese.

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● Many Indian independence activists fled India and stayed in Japan. Rash Behari Bose created
India-Japan relations during the national movement itself. There were constant engagements
between Rabindranath Tagore and Japanese writer Mitsuru Toyama.
● Subhash Chandra Bose used the Japanese endorsement to from the Indian National Army. This
army was composed of former Prisoners of War from the British Indian Army who had been
captured by the Japanese after the fall of Singapore.
● The Japanese government built, supported and controlled the INA as well as the Indian
Independence League. Japanese forces included INA units in many battles, most notably at the U
Go Offensive/Operation C at Manipur. The offensive led to Battle of Imphal and Kohima where
the Japanese forces were pushed back and the INA lost cohesion with them.

Modern Relations
● At the International Military Tribunal for the Far East, Indian Judge, Justice Radhabinod Pal
delivered his dissenting judgement in favour of Japan. This judgement became a symbol of the
beginning of modern relations between India and Japan.
● India also refused to attend the San Francisco Peace Conference in 1951 due to its concerns over
limitations imposed upon Japanese sovereignty and national independence. After the restoration
of Japan’s sovereignty, Japan and India signed a peace treaty establishing official diplomatic
relations in 1952.
● Relations between the two nations were constrained by Cold War politics. Japan was a US ally
owing to its restoration efforts after World War 2. India, on the other hand, pursued a non-aligned
foreign policy with occasional leanings towards the Soviet Union.
● Since the 1980s there were considerable efforts to improve bilateral relations. India’s Look East
Policy posited Japan as a key partner. Since 1986 Japan has also become India’s biggest donor
and aid partner.
● Relations between the two nations reached a brief low in 1988 after the Pokhran nuclear tests.
Japan imposed sanctions on India and cut off all political as well as economic ties.
● As recently as 2016 India and Japan signed the “Agreement for Cooperation in Peaceful Uses of
Nuclear Energy”. Japan under this agreement will supply nuclear reactors, fuel and technology to
India. India is also the only non-NPT signatory to have made a civil nuclear deal with Japan.

3. Significance of Japan for India:

Both India and Japan are Asian democracies and have natural convergence in international policies. Both
these countries have often emphasised on a rule-based international order and commitment to institutions
of international governance.
The significance of Japan for India can be seen in the following aspects:-
● Indo-Pacific region - being the two large economies in the region both have stakes in a peaceful
Indo-Pacific - the convergence in this regard has been seen in QUAD and Malabar exercises of
which Japan is a part
● FDI and Development assistance - Japan is important for India as it is the largest donor of
development assistance to India - Japanese FDI in India also amount to USD 4 Billion (MEA data)

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● Infrastructure development - Japan is an active partner for India in several infrastructure

development projects - most notable DMIC (Delhi-Mumbai Industrial Corridor) - Mumbai
Ahmedabad Bullet train project and various projects in the North-East Road Connectivity
Project region as well
● Countering Chinese hegemony in Asia - India sees Japanese economic prowess as an answer to
the aid diplomacy being carried out by China-Japan is making investments in Sri Lanka and other
South Asian countries to counter the Chinese
● Connectivity - under India’s Act East Policy we are building the India-Myanmar-Thailand
trilateral highway project - Japan and India together are investing in the Asia Africa Growth
Corridor to counter China’s BRI
● Technology cooperation - Japanese technology is going to be a boost for India’s renewable energy
push - Solar, Wind and battery technologies for electric mobility

4. Areas of Cooperation
India and Japan have cooperated in various areas ranging from economy, trade, defence, nuclear energy
and cultural relations as well.

4.1 ECONOMIC COOPERATION - India and Japan have a bilateral trade of USD 13.6 billion in the year
2016-17. India is also a destination for Japanese FDI and Development Assistance.
I. India and Japan have established ‘Japan-India Global Partnership in the 21st Century’
II. The Comprehensive Economic Partnership Agreement (CEPA) envisages abolition of tariffs for
94% of items traded between India and Japan over the 10 years starting 2011
III. India’s primary exports to Japan are - Petroleum products, Chemicals, Non-metallic mineral ware,
metalliferous ores and scraps, fish and fish products,
IV. Primary imports from Japan - machinery, transport equipment, iron and steel, electronic goods,
machine tools etc.
V. The presence of Japanese companies in India is also steadily increasing - as of 2016 there were
1305 Japanese companies registered in India

4.2 SCIENCE AND TECHNOLOGY - the bilateral Science and Technology Cooperation Agreement
between India and Japan, 1985 underpins the cooperation in this field.
I. The India-Japan Science Council was established in 1993 and has had 19 annual meetings,
supported 250 joint projects and 1600 exchange visits of scientists
II. The Department of Science and Technology, India initiated a value-based partnership working on
the principles of ‘reciprocity and co-funding’ with Japan Society for the Promotion of Science
(JSPS) & Japan Science and Technology Agency (JSTA)
III. There is also a ‘Japan-Asia Youth Exchange Program in Science’ also known as the ‘SAKURA
Exchange Program’

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4.3 CULTURAL COOPERATION - A cultural agreement was signed between India and Japan in 1956 that
came into effect in 1957.
I. In 1951, India established a scholarship system for young Japanese students to study in India.
II. PM Rajiv Gandhi attended the opening ceremony of 1988 Festival of India
III. The Vivekananda Cultural Centre in Tokyo opened in 2009
IV. The Indian Council of Cultural Research(ICCR) has set up 2 chairs on India studies at Ryukoku
University and Reitaku University.
V. Japan is also an active participant in International Yoga Day celebrations
VI. In pursuance of the MoU signed between Yoga Organisation of Japan and Quality Council of
India(QCI) for the promotion of Scheme for Voluntary Certification of Yoga the first QCI
examination outside India was conducted in Japan
VII. The first ever Parliamentary League for the Promotion of Yoga was launched in Japan in 2017.
VIII. The year 2018 was designated as the Year of Friendly Exchanges by both India and Japan

4.4 INDIAN COMMUNITY - the arrival of Indians to Japan for business and commerce purposes began as
early as the 1870s to the two ports of Yokohama and Kobe. Presently the Indian community is 27,000
strong.
I. Indian entered Japan during WW1 when Japanese products were needed for the markets in war-
torn Europe
II. The old Indian community in Japan focussed on trading in textiles, commodities and electronics.
III. Recent years has seen an influx of IT professionals working for both Indian and Japanese firms.
IV. The Nishikasai area in Japan is labelled as a Mini-India

5. Asia-Africa Growth Corridor (AAGC)

● AAGC is an economic cooperation agreement between India, Japan and various African countries
for sustainable growth and innovative development.
● The AAGC will be raised on 4 pillars :
1. Development and Cooperation projects
2. Quality Infrastructure and Institutional Connectivity
3. Enhancing Capacities and Skills
4. People to People partnership
● The centrality of people to people partnership is a unique feature of this initiative. The strengths of
AAGC will be aligned with the development priorities of different countries and Subregions of Africa
and Asia. This will be undertaken to improve growth and interconnectedness between and within
Asia and Africa for a free and open Indo-Pacific region.

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● A vision document of AAGC has been developed by Research and Information System for
Developing Countries(RIS), Economic Research Institute for ASEAN & East Asia (ERIA) and
Institute of Developing Economies(IDE-JETRO), Tokyo.

5.1 India and AAGC : Development and Security for all

The AAGC echoes India’s current development agenda - Sabka Saath Sabka Vikas - both at the domestic
and global level :
● AAGC acknowledges the symbiotic relationship between security and growth via SAGAR - Security
and Growth for All in the Region
● Support the local initiatives to promote economic development and security in the Indian Ocean
region.
● Maritime connectivity in the Indian Ocean region via India’s SAGARMALA project.

5.2 What can the AAGC provide?

● The AAGC offers a benevolent alternative to the China’s BRI that holds significant potential for
regional connectivity on a state-to-state level.

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● Given Japan’s experience with mass projects and expertise in developing cutting edge train
networks, such as the Shinkansen, there is room for cooperation.
● In the current situation, Africa is invaluable for India both economically and geopolitically. Besides,
this being a nation that is rich in mineral resources, it can help in diversifying India’s energy
sources. It can also help in resolving the food security challenges and providing space for Indian
investments. Geopolitically, African countries can help India in reforming the UN.
● It also provides India with a space to display its soft and hard power. India can and is assisting
African countries in capacity building. Africa’s geostrategic importance is also significant for India.
The threats of radicalism, piracy and organised crimes originate from this region and therefore the
assistance of the African countries can be invaluable.

5.3 How AAGC is different from China’s OBOR initiatives ?

A comparison between the two projects- India-Japan AAGC and the Chinese One Road One Belt (BRI)
reflects several differences.
● First, while the Chinese project is centrally designed, the AAGC is based on consultations with all
concerned and their approval.
● Second, the Chinese project is designed to serve its interests, while AAGC is for common benefit of
all in the region.
● Third, while the Chinese projects are to generate employment for the Chinese companies, the AAGC
is to focus on generating employment for local population.
● Fourth, while BRI does not bother about the sovereignty of nations from where it passes through,
the AAGC does pay attention to ensure that sovereignty of nation is respected.
● Fifth, While BRI is Eurasia focussed, the AAGC is focussing on connectivity between Asia and
Africa.
In essence, the AAGC is a positive initiative and would be to the advantage of both Asian and African
countries. Its real worth would be known after sometime. The nations concerned should give it a greater
push to achieve its objectives within a reasonable timeframe.

6. NUCLEAR DIPLOMACY: INDIA AND JAPAN

India and Japan have signed a Civil Nuclear Deal to enhance cooperation on nuclear energy for peaceful
purposes. It is a historic deal as India is the only non-NPT country which has a civil nuclear deal with
Japan.

6.1 Significance of the deal

Presently India’s nuclear power accounts for only 3% of its total electricity production, India wants to
augment it to 25%. In this regard, the Indo-japan nuclear deal becomes a significant step for the following
reasons :
● The dire need to augment our energy resources for a sustained GDP growth rate of 8% or above
● Remove dependence from the import of crude oil as an energy source - 3rd largest importer
currently
● Curtail emissions out of fossil fuel sources of energy

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● Advanced technology provided by Japanese nuclear reactors

● Recognition of India as a responsible nuclear power - push for NSG membership as well

6.2 Key points of the deal

● Japan can now supply nuclear reactors, fuel and technology to India
● India will get fuel fabrication and breeder technology from Japan
● No commitment on NPT form India in civil nuclear arrangements
● India ay reprocess nuclear materials and by-products
● India cannot make highly enriched Uranium without approval from Japan
● If India were to conduct nuclear tests again, Japan will suspend cooperation

7. ACT EAST POLICY AND JAPAN

The Act East policy by India provides a platform for multilateral engagement which is at the forefront of
both India’s and Japan's foreign policy. ASEAN has been at the centre of India’s Act East policy and Japan
has had traditionally good relations with the South East Asian countries - a convergence point between
India and Japan.

7.1 Convergence areas :

● Via multilateral fora such as USA-India- Japan as well as India-Australia-Japan for better
integration of Indo-Pacific region
● Myanmar as a crucial link - between South Asia and Southeast Asia - Japan is building a port
and SEZ in Myanmar
● Cooperation in areas of connectivity, port development, humanitarian assistance and disaster
management - Japan’s technological expertise can be use here.
● Countering China’s aid diplomacy - japan has the economic strength to counter the debt based
infrastructure projects being carried out by China
● Converging Japanese technological expertise with India’s IT power to offer services in East
Asian countries
● Adherence to a rule-based sea order - compliance with the UNCLOS of which China has been a
violator recently
● Japan and India both are developing hydrocarbon infrastructure through harbours and oil fields
to cater to energy demands - Southeast Asia can be the area of operation
● Japan’s Bay of Bengal Industrial Growth Belt (BIG-B) for industrial development is another area
of common interest
● Deep-sea mining as another area of cooperation for Polymetallic nodules extraction - Japanese
expertise can be used

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7.2 India-Japan Act East Forum

The forum aims to provide a platform for India-Japan collaboration under India's Act East policy.
● It will identify specific projects for economic modernisation of India’s North East region including
those pertaining to connectivity, developmental infrastructure, industrial linkages as well as people
to people connect

8. CHALLENGES IN INDIA-JAPAN RELATIONS

Despite convergence in various aspects of foreign policy there still remain challenges in various aspects of
India-Japan relations :
● Low bilateral trade - only USD 14 Billion - India China trade in comparison in USD 70 Billion and
China-japan trade is USD 350 Billion
● Low presence of business enterprises - Japanese companies in India are only 1/8th of their
presence in Chinese markets
● Anti-China perception - Both these countries are always seen to act in consonance only to cater
china - be it QUAD, Act East Forum etc. - casts a negative shadow on their engagements with China
in bilateral terms
● Clash of interests in multilateral institutions - India has joined the AIIB but Japan refused to
do so seeing it as a counter to Japan led Asian Development Bank - an alliance with the USA has
also dictated Japanese policies in multilateral fora
● Poor collaboration in the Bay of Bengal region - the island development proposals by Japan have
still not materialised - also power plants in the Andaman and Nicobar Islands with Japanese help
are stuck in paperwork stage itself
● Challenges of geography - being far off from each other with hostile neighbours around - does not
allow both India and Japan to take clear cut stands on either country’s bilateral disputes e.g. Kuril
and Senkaku islands for Japan and Aksai Chin for India.

9. WAY FORWARD
● Leveraging Comprehensive Economic Partnership Agreement to boost India and Japan trade
● AAGC as an area of cooperation has the potential to be a game-changer in the Indian Ocean region
● Enhancing defence cooperation by early resolution of US-2 amphibious aircraft deal
● India should enhance its engagements with Japan in its BIG-B project for Bay of Bengal
development - countering Chinese presence there
● QUAD as a forum can be used to put international pressure for a rule-based sea order
● Invitations to more Japanese companies for their offices in India especially in the IT sector

10. CONCLUSION
Japan is an ageing society and India has a labour surplus. India and Japan are two Asian democracies that
have mutual interests without conflicts. The areas of convergence need to be strengthened and labour
mobility enhanced for the two countries to complement each other in sustained growth and development.

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CHAPTER 2: INDIA - AUSTRALIA RELATIONSHIP

Context:
● Indian Air force participated in Pitch Black Exercise 2018 in Australia.
● India Australia held 2nd 2+2 dialogue in october 2018.
● India excluded Australia from Malabar Naval Exercises 2018 organised by India in the Pacific
Ocean.
● Australia announced the implementation of ‘An India Economic Strategy to 2035’ a vision
document to shape India-Australia ties.

1. Introduction:
The India-Australia bilateral relationship has undergone evolution in recent years, developing along a
positive track, into a friendly partnership. The two nations have much in common, underpinned by shared
values of pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic
engagement and increasing high-level interaction. Their several commonalities including strong, vibrant,
secular and multicultural democracies, free press, an independent judicial system and English language,
serve as a foundation for a closer cooperation and multifaceted interaction. The long-standing people-to-
people ties, ever increasing Indian students coming to Australia for higher education, growing tourism and
sporting links, especially Cricket and Hockey, have played a significant role in further strengthening
bilateral relations between the two countries.

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2. Historical Background:

PHASE 1: 1947 TO 1970

India, after its independence in 1947, established a mission in Australia. India had already had its mission
opened in 1944, and took this opportunity to convert it to an Indian High Commission in 1947. Under
Robert Menzies, Australia supported the admission of India as a Republic to the Commonwealth Nations.
Afterwards, India adopted non-alignment policy at foreign policy level while Australia remained inclined
towards the USA and established its alliance with America very firmly.

PHASE 2: 1970 TO END OF COLD WAR

This period witnessed the change in domestic politics in Australia which also brought change in India-
Australia Relations. In 1971, India and Australia envisaged cultural cooperation. The relationship went on
an upswing but it was short-lived. After the Indo–Pak war of 1971 and the subsequent conclusion of the
India–Russia Treaty of Friendship, the relationship began to slow down. The dip in the Indo–Australia
relations came in 1975 when Malcolm Fraser, Australian PM criticised India’s proximity to the USSR.

PHASE 3: STRATEGIC CONVERGENCE:

After the end of the cold war, a growing cooperative spirit began to emerge between the two countries. Both
nations began to recognise the shared ideals of democracy and peace. Both countries identified economic
cooperation as an area for strengthening bilateral relations. An Australia-India council to promote long
terms interest in India was established in1992. With the changing global scenario, Australia has come to
look at India as a potential partner in promoting regional security and stability. This led to upgradation of
the bilateral relationship between the two nations to a ‘Strategic Partnership’, including a Joint
Declaration on Security Cooperation in 2009. Over the years an array of institutional mechanism has
been put in place to promote bilateral cooperation such as exchange of high-level visits, Foreign Ministers’
Framework Dialogue, Joint Trade & Commerce Ministerial Commission, Defence Policy Talks including
Policy talks at the level of Senior Officials, Staff Talks, Energy Security Dialogue and Australia-India
Education Council, Track-2 Dialogues like Australia-India Leadership Dialogue, Youth Dialogue, etc.

3. Importance of Australia for India:

● Australia is a natural ally to secure the nuclear energy of India.
● Australia is important for securing the maritime security in the Indian ocean region.
● Australia is one of the important bilateral partners of India.
● Australia supports India’s bid as a permanent member of the security council.
● Australia is already a member of NSG, a friendly relationship with Australia will enable India to get
membership of NSG.

4. Area of cooperation:

4.1 Economic and Trade Relations:

● India is Australia’s fifth largest export market with Australian merchandise and services exports.

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● India's exports to Australia stood approximately US$4.6 billion in 2016 while India's import from
Australia during the same period stood at US$11 billion (A$14.6 bn). India’s main exports to
Australia are Passenger Motor Vehicle & machinery, Pearls, Gems and Jewellery, medicaments
and Refined Petroleum while our major imports are Coal, Non-monetary Gold, Copper, Wool,
Fertilizers and education-related services.
● The two countries are currently discussing a Comprehensive Economic Cooperation Agreement
(CECA) which will provide greater market access to exporters of goods and services.

4.2 Civil Nuclear Cooperation:

● A Civil Nuclear Cooperation Agreement between the two countries was signed in
September 2014 during the visit of then PM Tony Abbott to India.
● The agreement provides the framework for a substantial new trade in energy between Australia and
India.
● India operates 20 nuclear reactors, mostly small, at six sites, with a capacity of 4,780 MW. This
accounts for a meagre 2 percent of overall capacity, according to the Nuclear Power Corporation of
India. The Government hopes to increase the nuclear capacity to 63,000 MW by 2032 by adding
about 30 reactors, at a cost of $85 billion.
● Australia, which has no nuclear power plants of its own, holds 31 per cent of the world’s uranium
reserves and is one of the top exporters of the commodity.

4.3 Defence Relations:

● Australia and India have a positive defence relationship, underpinned by the 2006 Memorandum
on Defence Cooperation and the 2009 Joint Declaration on Security Co-operation.
● AUSINDEX is bilateral maritime exercise between India and Australia since 2015 that developing
deeper understanding and cooperation between the Indian Navy and the Royal Australian Navy
(RAN).
● Indian Air force participated in Exercise Pitch Black 2018 (PB-18) a biennial multinational large
force employment warfare exercise was hosted by Royal Australian Air Force (RAAF) from 24 Jul
18 to 18 Aug 18 in Darwin, Australia.
● The exercise provided a unique opportunity for exchange of knowledge and experience with the
participating nations in a dynamic warfare environment.

4.4 Strategic cooperation

● Both India and Australia are situated in the most dynamic region on the planet where the centre
of economic and strategic gravity is shifting to the Indo–Pacific. India and Australia are wary of
China’s assault on maritime security and freedom of navigation in the Indo–Pacific region. These
common concerns have strengthened the need for greater maritime cooperation between the two
nations.
● In a bid to boost their bilateral strategic partnership keeping the Indo-Pacific region in mind and to
increase Defence cooperation, India and Australia hold their inaugural 2+2 Foreign Secretaries
and Defence Secretaries Dialogue.

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● India and Australia along with USA and Japan maintained The Quadrilateral Security Dialogue
(QSD, also known as the Quad).

4.5 Education Diplomacy

● Australia has come out with a white paper plan in education that places Hindi as one of the four
priority languages along with Chinese, Japanese and Indonesian. Australia aims to
equip their children with Asian languages.
● Australia is promoting higher education and skill development for foreign students. If we compare
Australia vis-à-vis Europe in post-study work permit, part-time work permit and permanent
residency permits, Australia stands positive on all three areas over and above Europe.
● In 2014, during the visit of Tony Abbott to India, he unveiled the New Colombo Plan for education.
Under the plan, 1800 students from Australia will pursue internship and short programmes in
India. Australia shall be training Indians in vocational skills to make them job ready in India.

4.6 Multilateral Cooperation

● India and Australia cooperate in various multilateral fora. Australia supports India’s candidature
for a permanent seat in an expanded UN Security Council.
● Both India and Australia are members of the Commonwealth, IOR-ARC, the ASEAN Regional
Forum, the East Asia Summit and the Asia-Pacific partnership on climate and clean development.
In 2008, Australia became an observer in the SAARC.
● India and Australia are also members of the three multilateral export control regime namely
Missile Technology Control Regime (MTCR), Wassenaar Arrangement and Australia Group.

5. Challenges:
Despite an increasingly solid foundation and viable driving force for deepening their relationship as well as
significant progress achieved, the relations between Australia and India have not yet reached a level
anticipated by the two sides, and a strategic partnership remains a goal rather than a reality. There are
many issues that put the bilateral relations at a suboptimal level. Some of them are as follows-
1. Adani Group and Carmichael Coal Mine Issue: Adani Group is facing opposition to its plans to
invest $16.5 billion in Carmichael coal mine is located in Queensland. Australia’s largest coal
project—which could fuel power generation for 100 million Indians and create 10,000 jobs in
Queensland—has ignited protests from environmental groups who are concerned that the
development will increase carbon pollution and endanger the health of the Great Barrier Reef
marine park in northern Queensland. Environmental opposition to the mine, which could begin
production in 2020, has delayed the first phase of the project and prompted the company to cut
underground capacity by 38%.
2. Attacks on India Students in Australia: The racial attacks on the Indian student in Australia
during 2009 and 2010, created tension between the two countries. It also Undermined the
government's efforts to increase people to people ties between India and Australia.

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3. China Factor: China and Australia have signed a free trade agreement in 2015, while no such free
trade agreement is in operation between India and Australia. Increasing ties between China and
Australia is not good for India’s economic interest.
4. Malabar Exercise: India excluded Australia from Malabar Naval Exercise 2018, hosted by India in
the Pacific Ocean participated by USA and Japan.

6. Way Forward:
● Today India is the fastest growing economy in the world and Australia is the world’s 12th largest
economy with significant strength in mining, agriculture, technology and services. The two
countries must avail this opportunity to forge an enduring partnership underpinned by common
strategic and economic interest.
● India-Australia needs to formulate a comprehensive shared Indo pacific vision which ensures
inclusivity, transparency, openness and a rule-based order.
● India must remove governance bottlenecks to and ensure speedy engagement. strengthen bilateral
trade and investment, Comprehensive Economic Cooperation Agreement (CEPA) need to be
concluded immediately in order to realize the untapped trade potential.

7. Conclusion:
● We share strategic interests in Asia, our economies are highly complementary, the values are closely
aligned. We both value democracy, liberty, the rule of law, human rights and freedom of expression.
We are both maritime nations for whom regional stability is of paramount importance. And this is
recognised by the expansive agenda set out in our Framework for Security Cooperation.
● There is a Little India in Melbourne, Diwali celebrations are carried out in Brisbane, and the long-
established Sikh community on the North Coast of New South Wales, Indian-Australians are
contributing a lot to the modern society of Australia.

We, therefore, have all the ingredients of a strong Australia-India relationship going forward.

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CHAPTER 3: INDIA - US RELATIONS

Context:
● USA planning to end preferential trade benefit to India under the Generalised System of
Preference.
● Ex Cope 2018, bilateral drills between the Indian Air Force and the US Air Force held in West
Bengal in December 2018.

1. Introduction:
India-U.S. bilateral relations have developed into a "global strategic partnership", based on shared
democratic values and increasing convergence of interests on bilateral, regional and global issues. Regular
exchange of high-level political visits has provided sustained momentum to bilateral cooperation, while the
wide-ranging and ever-expanding dialogue architecture has established a long-term framework for India-
U.S. engagement. Today, the India-U.S. bilateral cooperation is broad-based and multi-sectoral, covering
trade and investment, defence and security, education, science and technology, cyber security, high-
technology, civil nuclear energy, space technology and applications, clean energy, environment, agriculture
and health. Vibrant people-to-people interaction and support across the political spectrum in both
countries nurture our bilateral relationship. However, India - US relations has not been smooth always, it
has witnessed several ups and down since independence of India in 1947.

2. Historical Background:
● The relationships between India in the days of the British Raj and the US were thin. Swami
Vivekananda promoted Yoga and Vedanta in America at the World's Parliament of Religions in

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Chicago, during the World's Fair in 1893. Mahatma Gandhi had an important influence on the
philosophy of non-violence promoted by Martin Luther King, Jr. in the 1950s.In the 1930s and
early 1940s the United States gave very strong support to the Indian independence movement in
defiance of the British Empire.
● There wasn’t a cordial relationship between India and USA post Indian independence and until the
end of the Cold War.
● This was mainly due to US’s inclination to Pakistan and India’s policy of being not aligned with
either the US or the Soviet Union, but maintaining close ties with the latter.
● During India-China war [1962], the US President Kennedy, had supported India, while in
Indo-Pak wars of 1965 and 1971, the US had criticized India’s stand against Pakistan.
● The US was strategically in opposite camp to India throughout the ideological clashes of two
superpowers [US and USSR] in Cold War.
● Since the Cold War culmination, Indo-US bilateral relationship has been on the track to reinforce
strategic ties. Both countries want to enhance cooperation through strategic partnership and
defence collaboration. Both sides have identified potential areas of strategic cooperation, especially
in defence, space, maritime and science and technology.

3. Important Events
● 1959: President Dwight Eisenhower was the first serving U.S. president to visit the country.
● 1962: War broke out between India and China over a disputed frontier. Washington supported
India in the conflict, recognizing the McMahon line as the border, and provided air assistance and
arms.
● 1968: India refused to sign the Nuclear Non-proliferation Treaty on the grounds that it is
discriminatory.
● 1974: India first tested a nuclear weapon in an underground explosion. The move contributes to
a period of estrangement between the United States and India that lasted over two decades.
● 1978: US President Carter administration enacted the Nuclear Nonproliferation Act, which
required countries not included in the Nonproliferation Treaty—which included India—to allow
inspections of all nuclear facilities by the International Atomic Energy Agency. India refused, and
Washington ended all nuclear assistance to Delhi.
● 1991: Economic reforms carried out by the India, helped expand economic ties with the United
States.
● 1998: Indian Prime Minister Atal Bihari Vajpayee authorized five underground nuclear tests in
response to Pakistan’s test firing of a surface-to-surface missile. This had set India and U.S at a
confrontational footing.
● 2000: President Bill Clinton makes the first U.S. presidential trip to India since 1978. The visit
ends the estrangement of the post-1998 Indian nuclear weapons tests, although the Clinton
administration presses India’s government to sign the Comprehensive Test Ban Treaty. The Indo-
U.S. Science and Technology Forum is also established during the visit. As India’s economy
begins to take off, the trip indicates a further shift in Washington’s regional orientation away from
its Cold War alliance with Pakistan.

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● 2001: The George W. Bush administration lifts all remaining U.S. sanctions that were imposed on
India after its 1998 nuclear test.
● 2005: ‘New Framework for India-U.S. Defense Relations’ signed, which set priorities for defense
cooperation in maritime security, humanitarian assistance/disaster relief, and counterterrorism.
● 2005: India and the United States inked the Civil Nuclear Cooperation Initiative, a ten-year
defense framework that lifts a three-decade U.S. moratorium on nuclear trade with India. Under
the agreement, India agrees to separate its civil and military nuclear facilities and place all its civil
resources under IAEA safeguards. In exchange, the United States agrees to work toward full civil
nuclear cooperation with India. Congress gives final approval in October 2008.
● 2007: The nuclear deal, completed in July 2007, made India the only country outside of the
Nonproliferation Treaty that has nuclear capabilities and is allowed to participate in nuclear
commerce.
● 2010: India-US Counter-Terrorism Cooperation Initiative was signed
● 2013: U.S. filed a complaint to the WTO arguing that the domestic content requirement imposed
under India’s national solar programme is in violation of the global trading rules.
● 2016: Agreements signed to boost bilateral ties in the presence of PM Narendra Modi and US
President Barack Obama.
● Memorandum of Understanding (MoU) between the Government of India and the Government of
the United States of America to enhance cooperation on Energy Security, Clean Energy and Climate
Change
● Technical Arrangement between the Indian Navy and the United States Navy concerning
Unclassified Maritime Information Sharing
● August 2016: India and the U.S signed the bilateral Logistics Exchange Memorandum of
Agreement (LEMOA). The Agreement would give the militaries of both countries access to each
other’s facilities for supplies and repairs.
● September 2016: India lost WTO appeal in U.S Solar Dispute.
● September 2018: India USA held first ever 2+2 Dialogue during which they signed long- pending
COMCASA agreement and that would open the way for sales of more sensitive US military
equipments to India.

4. Bilateral Relations between India and US

4.1 Trade and Economic Relations:

● India-US bilateral trade in goods and services increased from $104 billion in 2014 to $126.2 billion
in 2017. India’s goods and services trade surplus with India was $27.3 billion in 2017.
● India is currently 9th largest goods trading partner of USA with $74.3 billion in total (two way)
goods trade during 2017. Goods exports totaled $25.7 billion; goods imports totaled $48.6 billion.
The U.S. goods trade deficit with India was $22.9 billion in 2017
● Export: India was the United States' 15th largest goods export market in 2017.
● Imports: India was the United States' 11th largest supplier of goods imports in 2017.
● India and USA have set a target to increase bilateral trade in goods & services to $500 billion.

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● The cumulative FDI inflows from the US from April 2000 to December 2015 amounted to about $
17.94 billion constituting nearly 6% of the total FDI into India, making the U.S. the fifth largest
source of foreign direct investments into India.

4.2 Defence Relations:

● Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with the
signing of ‘New Framework for India-U.S. Defense Relations’ in 2005 and the resulting
intensification in defence trade, joint exercises, personnel exchanges, collaboration and cooperation
in maritime security and counter-piracy, and exchanges between each of the three services. The
Defence Framework Agreement was updated and renewed for another 10 years in June 2015.
● In 2010, the Indo–US counter terrorism cooperation initiative was launched.
● The U S has signed three of four "foundational" agreements that it signs with its defence partners.
These three agreements are as follows:
I. GSOMIA (General Security of Military Information Agreement) was signed by India and the
U.S. in 2002. The agreement enables the sharing of military intelligence between the two
countries and requires each country to protect the others' classified information.
II. LEMOA (Logistics Exchange Memorandum of Agreement) was signed by the two countries
on 29 August 2016. The LEMOA permits the military of either country to use the others'
bases for re-supplying or carrying out repairs. The agreement does not make the provision
of logistical support binding on either country, and requires individual clearance for each
request.
III. COMCASA (Communications Compatibility and Security Agreement) was signed during the
inaugural 2+2 dialogue in September 2018. It is an India-specific variant of
Communications and Information Security Memorandum of Agreement (CISMOA) that
enables the two countries to share secure communication and exchange information on
approved equipment during bilateral and multinational training exercises and operations.
● The two countries conduct more bilateral exercises with each other than they do with any other
country. The three forces of India and USA take part in various defence exercises.
I. Exercises conducted by Army: Ex YUDHABHAYAS, Ex VAJRA PRAHAR
II. Exercises conducted by Navy: MALABAR and EX Rim of the Pacific RIMPAC (Multilateral)
III. Exercises conducted by Air Force: RED FLAG 16-1 (held in 2016) , Cope India 2019 held
in December 2018 in West Bengal.
These exercise designed to improve mutual cooperation, enhance trust between the two nations,
and build on existing capabilities, aircrew tactics and force employment.
● Defence Technology Trade Initiatives (DTTI): India and the United States have launched DTTI
in 2012 aimed at simplifying technology transfer policies and exploring possibilities of co-
development and co-production to invest the defence relationship with strategic value

4.3 ENERGY:
● The U.S.-India Energy Dialogue was launched in May 2005 to promote trade and investment in the
energy sector.

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● There are six working groups in oil & gas, coal, power and energy efficiency, new technologies &
renewable energy, civil nuclear cooperation and sustainable development under the Energy
Dialogue.
● As a priority initiative under the PACE (Partnership to Advance Clean Energy), the U.S. and India
have established the Joint Clean Energy Research and Development Center (JCERDC) designed to
promote clean energy innovations by teams of scientists from India and the United States, with a
total joint committed funding from both Governments of US$ 50 million.
● U.S.-India Strategic Energy Partnership: The Partnership affirms the strategic importance of
energy cooperation to the U.S.-India bilateral relationship and sets the stage for deeper and more
meaningful engagements through government and industry channels. As leading global partners,
the United States and India believe that energy cooperation can serve as a centerpiece in the
bilateral relationship.
● Mission Innovation (MI) is a global initiative of 23 countries and the European Commission (on
behalf of the European Union). India and USA are the member countries of Mission Innovation.
These 24 members have committed to seek to double public investment in clean energy RD&D and
are engaging with the private sector, fostering international collaboration and celebrating
innovators.

4.4 Climate Change:

● In recognition of the urgent threat of climate change, the United States and India recognize the
urgency of the threat of climate change and are therefore committed to cooperate to reduce the
Green House Gas emissions and develop alternate clean energy.
● India and the U.S. are advancing cooperation and dialogue on climate change through a high level
Climate Change Working Group and a Joint Working Group on Hydrofluorocarbon.
● A new U.S.-India Partnership for Climate Resilience has been agreed to, in order to advance
capacity for climate adaptation planning, as also a new U.S.- India Climate Fellowship Program to
build long-term capacity to address climate change-related issues.

4.5. Science & Technology (S&T)

● Scientific and economic links between India and the United States have remained strong since the
early 1960s, first in agriculture, and then spreading into a broad range of areas involving most of
the U.S. Government technical agencies. The United States and India established a $110 million
Public Law 480 "Rupee Fund” in 1987 to promote and fund science and technology collaboration
and educational and cultural exchanges.
● The Indo-U.S. Science and Technology Forum (IUSSTF) was established in 2000. IUSSTF’s
mandate is to promote, catalyze and seed bilateral collaboration in science, technology, engineering
and innovation through substantive interactions amongst government, academia and industry.
● A "monsoon desk" has been established at the U.S. National Centers for Environmental
Prediction. India's contribution of $250 million towards Thirty-Meter Telescope Project in Hawaii
and Indian Initiative in Gravitational Observations (IndiGO) with U.S.
● LIGO Laboratory are examples of joint collaboration to create world-class research facilities.

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4.6 Health Sector:

● Under the 2010 U.S.-India Health Initiative, four working groups have been organized in the areas
of Non-Communicable Diseases, Infectious Diseases, Strengthening Health Systems and Services,
and Maternal and Child Health.
● In order to build up the disease surveillance and epidemiological capacity in India, Global Disease
Detection-India Centre was established in 2010 and an Epidemic Intelligence Service program
launched in Oct 2012.
● U.S. National Institutes of Health, the Indian Council of Medical Research, and India's Department
of Biotechnology have developed a robust relationship in the biomedical and behavioral health
sciences, research related to HIV/AIDS, infectious diseases, diabetes, cardiovascular diseases, eye
disease, hearing disorders, mental health, and low-cost medical technologies.

4.7 People to people ties: Diaspora

● The 3.5-million-plus strong Indian American community is an important ethnic group in the U.S.,
accounting for about 1% of the total population in the country.
● Indian American community includes a large number of professionals, business entrepreneurs and
educationalists with increasing influence in the society.
● The Indian Diaspora is not only a source of India’s soft power but is also an agent of India’s soft
power. The Indian Diaspora in the U.S. is contributing in reconstructing the relation between the
two countries.
● e two countries have been working together to facilitate travel of their respective citizens, and to
this end an MOU has been signed in June 2016 to facilitate India's joining of the Global Entry
Programme for expedited immigration for eligible Indian citizens at U.S. airports.

4.8 Education:
● Cooperation in education sector has been made an integral part of the strategic partnership
between the two countries.
● The Fulbright program was renewed in 2008, with enhanced mandate and joint funding, to provide
more student and scholar exchange grants.
● India is learning from the U.S. experience in community colleges in order to meet our demands for
skill-development. It has been agreed to collaborate with U.S. institutions in the area of Technology
Enabled Learning and Massive Open Online Courses (MOOCs) to extend the reach of education
in India.
● Under the Global Initiative of Academic Networks (GIAN) launched by India, upto 1000 American
academics will be invited and hosted each year to teach in Indian universities at their convenience.

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5. Issues between India and USA

5.1 Visa Issue:

● The U.S. has tightened the norms for issuing the most sought-after H1B and L1 visas in line with
the Trump administration’s goal to protect American workers from discrimination and replacement
by foreign labour.
● Trump wants the IT companies to hire more local citizens instead of placing Indians in US on H1-
B visa.
● This will affect many young Indians who are seeking for making a better career growth in USA.
Moreover, remittances received by India will be reduce.

5.2 Trade disputes:

● India had increase import tariffs on 30 items from the U.S. amounting to $240 million, in retaliation
against tariffs imposed by the latter on aluminium and steel imports in 2018.
● U.S. President Donald Trump, in March 2018, signed an order imposing a 25% tariff on steel
imports and a 10% tariff on aluminium imports. India’s decision to hike tariff was in line with the
ongoing trade war between USA and India.
● Impact of trade war: Ongoing trade disputes with the USA is not good for Indian Economy on
account of the following reasons-
I. The trade with US is very favourable for India, which means we export more than we import
from them. This brings much needed dollar inflows into the country. If the trade war
with US escalates, this will widen our trade deficit and also current account deficit. This
trade war will further weaken the currency value against the US dollar.
II. An escalating trade war with the US has potential to impact the domestic industry
especially pharmaceuticals, apparel and textiles, iron and steel, mineral fuels and also
fisheries. All these industries are manpower intensive. At a time when unemployment is a
big issue in India and economy is also slowly coming back to normal, a trade war with US
will impact the economy's growth momentum.
III. India's import items from the US are critical: India's highest imports from US are very
critical in nature like nuclear reactors, boilers, mineral fuels, aircrafts, space crafts,
medical equipments etc. Any higher duty on these products will impact India's key sectors.
While the US or its companies could absorb the impact, India and Indian companies don't
have the kind of strength, which a developed country has to absorb the higher costs.

5.2.1 Generalised System of Preference:

● United States President Donald Trump has announced to end the preferential trade terms for
India under the U.S.’s Generalized System of Preferences (GSP) program.
● The Generalized System of Preferences (GSP) is a U.S. trade program designed to promote economic
growth in the developing world by providing preferential duty-free entry for up to 4,800 products
from 129 designated beneficiary countries and territories. GSP was instituted on January 1, 1976,

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by the Trade Act of 1974. It is a preferential arrangement in the sense that it allows concessional
low/zero tariff imports from developing countries.
● The GSP removal will leave a reasonable impact on India as the country enjoyed preferential tariff
on exports worth of nearly $ 5. 6 billion under the GSP route out of the total exports of $48 bn in
2017-18. In total India exports nearly 1,937 products to the US under GSP.
● Removal of GSP indicate a tough trade position by the US; especially for countries like India who
benefited much from the scheme. The US was insisting India to reduce its trade surplus. India is
the 11th largest trade surplus country for the US and India enjoyed an annual trade surplus of $
21 bn in 2017-18.

5.2.2 Agriculture:
● Sanitary and phytosanitary (SPS) barriers in India limit U.S. agricultural exports. Recent issue is
India’s purported compliance with a WTO decision against its ban on U.S. poultry imports and live
swine due to avian influenza concerns; the WTO held that India’s measures violated WTO SPS rules.

5.2.3 Intellectual Property (IP):

● The two sides differ on how to balance IP protection to incentivize innovation and support other
policy goals, such as access to medicines. India’s IP regime remains a top concern for the United
States, which designated India again on its “Special 301” Priority Watch List for 2017.

5.2.4 India- US Solar Disputes:

● The US trade complaint at WTO Dispute Resolution Body in 2013 made the case that Jawaharlal
Nehru National Solar Mission subsidies were available only if developers used equipments produced
in India, thus violating a key global trade rule. The US considers the program as discriminatory
points out that the U.S. solar exports to India had fallen by 90 percent since 2011.
● India lost the solar dispute in September 2016, after the WTO’s highest court—the Appellate Body—
upheld a ruling that India violated several core provisions on national treatment and trade-related
investment measures. Under national treatment, governments are required to treat imported
products on par with the domestically manufactured products.
● However, US has complained that India has failed to comply with the ruling, triggering a fresh
round of litigation.

5.3 Pakistan Factor:

● Pakistan remained extremely crucial factor in Indo-US relations during the Cold War era.
● Pakistan’s assets such as its Islamic identity and closeness with Muslim countries of the Middle
East, its geographical proximity to the Persian Gulf rich in oil and to Communist adversaries like
the Soviet Union and China and above all its role as a competitor and regional balancer to India,
compels the US to join hands with Pakistan.
● The issue of F-16 fighter aircrafts that the US supplied to Pakistan (Pakistan used F16 fighter
plane against India on 27th february 2019) and the India’s objection to the deal can be cited as one
of the latest examples that Pakistan as a factor in Indo-US relations cannot be completely ignored.

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5.4 Iran Factor:

● The US is implementing economic sanctions on Iran after pulling out of the nuclear deal. India
could face the impact of the U.S. decision on the deal as well as instituting the “highest level of
economic sanctions” in several ways:
I. Oil Prices: India's oil imports from Iran in February 2019 plunged by over 60 per cent from
a year ago. Iran was the eighth biggest oil supplier to India in February compared with
seventh in January, and slipped from third position it held a year ago, the data showed.
Any increase in prices will hit both inflation levels as well as the Indian rupee.
II. Chabahar: India has already committed about $85 million to Chabahar development with
plans for a total of $500 million on the port, the new U.S. sanctions could slow or even
bring those plans to a halt depending on how strictly they are implemented.
III. INSTC: India has been a founder of the International North South Transport Corridor
(INSTC) since it was ratified in 2002. It starts from Iran and aims to cut right across Central
Asia to Russia over a 7,200-km multi-mode network, cutting down transportation and time
taken by trade by about 30%. Plans for INSTC sped up after the JCPOA was signed in 2015
and sanctions on Iran were lifted. New U.S. sanctions will affect these plans immediately,
especially if any of the countries along the route or banking and insurance companies
dealing with the INSTC plan also decide to adhere to U.S. restrictions on trade with Iran.
IV. Shanghai Cooperation Organisation: China supports Iran’s membership of the Shanghai
Cooperation Organisation (SCO) security bloc, jointly led by China and Russia. If Iran joins
SCO then India will be perceived as a member of a bloc (SCO) that will be seen as anti-
American, and will run counter to some of the government’s other initiatives, for eg. the
Indo-Pacific quadrilateral with the U.S., Australia and Japan.

6. Opportunities for India: Despite several irritants with US, India have many opportunities which have
potential to take Indo-US relations to a new level.
● The trade disputes posed bumps on the road as President Donald Trump called India a "tariff king"
in September. However, two months later, he praised Indians as tough negotiators as the two
countries started talks on a bilateral trade deal.
● India was among the few countries, which received a waiver on Iran sanctions from the Trump
administration.
● India was the only country for which the Trump administration came out with a 100-year plan; an
honour not accorded to even America's top allies.
● Trump administration rechristened the Asia Pacific region as Indo-Pacific, giving a greater role
and space for New Delhi in the entire region, but also for the first time the United States stated in
clear terms that India is a key player in Afghanistan
● For the first time a US president aligned himself with New Delhi's position that terrorism emanates
from Pakistan.

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7. Conclusion:
India and USA are the two largest and the strongest democracies in the world. Both the countries share
common democratic wavelength. There were apparent signs of improvement in India-US relations in recent
years. Economy became the engine of their better ties. Also in the strategic field, both the countries came
closer. However, numerous variables such as trade disputes, Pakistan Factor, Visa Issues etc. have
contributed towards low improvement in relations. However, for better ties both the countries should not
permit these impediment to come in way of conducive and constructive engagement between them. Both
the counties should give priority to ‘Pragmatic Model’ of relationship which implies that improvement in
relationship should not be hampered by the darkness of their past relationship.

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CHAPTER 4: INDIA- SOUTH AFRICA RELATIONS

1. Context:
● South Africa’s President Cyril Ramaphosa was the chief guest at India's 70th Republic Day
celebrations on January 26, 2019.
● India and South Africa sealed three-year strategic programme (2019-21) to further boost
cooperation in a range of areas including defence and security, trade and investment, the blue
economy, tourism, IT and agriculture.
● In 2018 India and South Africa celebrated the birth of Mahatma Gandhi's 'Satyagraha' movement
125 years ago in this nation.
● The year 2018 marks 25 years since the resumption of diplomatic relations with South Africa in
1993. 2018 also marks the 125th year of the Pietermaritzburg railway station ‘incident’ involving
Mahatma Gandhi.

2. Introduction:
India’s relationship with South Africa is both fundamental and unique, dating back several centuries and
is anchored in common ideals, ideas, interests, and icons – like Mahatma Gandhi and Nelson Mandela.
The relations between the two countries has grown from strength to strength over the years. This is due to
historical links, mutual support of their struggle against colonialism and racism, the presence of Indian
diaspora in South Africa and common perceptions of major global issues.

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3. Historical Background:
● India’s relations with South Africa date back several centuries. India was at the forefront of the
international community in its support to the anti-apartheid movement; it was the first country
to sever trade relations with the apartheid Government (in 1946) and subsequently imposed a
complete - diplomatic, commercial, cultural and sports - embargo on South Africa.
● India restored relations with South Africa after a gap of over four decades with the opening of a
Cultural Centre in Johannesburg in May 1993. Diplomatic and consular relations with South
Africa were restored in November 1993.
● South Africa's relations with India in the post-apartheid period have improved considerably.
Subsequently, Nelson Mandela visited India in January 1995 as the Chief Guest of India's
Republic day celebration.
● In March 1997 the Red Fort Declaration on Strategic Partnership between South Africa and India
was signed.
● Further the Tshwane Declaration, 2006 strengthened the cooperation in various fields such as
Education, Railways, science and technology, visa regime, etc.

4. Areas of Cooperation between South Africa and India:

4.1 Economic Cooperation:

● India's economic and commercial relationship with South Africa, in many ways, can be described
as unique. An active trading relationship existed even before India's independence in 1947 and
India was a major supplier of commodities like jute and tea to South Africa. However, India was
among the first countries to impose sanctions against South Africa following the introduction of
apartheid in 1948.
● India is South Africa’s fifth-largest export destination, and fourth-largest import origin and is
the second-largest trading partner in Asia.
● Both countries are working to boost trade volumes in the coming years. Bilateral trade between
India and South Africa currently stands at $10 billion. In 2016, both countries set a target of
doubling bilateral trade and investment to $20 billion by 2021.
● With a view to encourage investments, the two countries signed a Double Taxation Avoidance
Agreement (DTAA) in 1998.
● A recent joint study by Confederation of Indian Industries (CII) and Price Waterhouse Cooper (PwC)
published in May 2018, suggested that around 140 Indian companies have invested close to $4
billion in South Africa, thereby creating direct employment for over 18,000 people. The leading
Indian companies are Wipro, Coal India, Cipla, HCL Technologies, Tata Motors, Zomato, Mahindra
and Mahindra, Vedanta, and Motherson Sumi. South African companies which have invested in
India are SASOL, FirstRand, Old Mutual, ACSA, Shoprite and Nandos.

4.2 UN Reforms and Peacekeeping Operations: The UN reform is another important area where South
Africa and India could cooperate to each other. An issue to which both South Africa and India attach the
greatest importance is the reform and expansion of the UN Security Council. India

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believes that the reform and expansion of the UN Security Council in both permanent and non-permanent
categories is central to the process of UN reform. India also believes that South Africa can play an important
role in the overall process, within AU and in coordinated efforts of the AU and G- 4.

4.3 Defence Cooperation:

● There is a significant potential for defence trade and joint ventures between India and South Africa.
● In defence cooperation, a memorandum of understanding on cooperation in the field of defence
equipment was signed between the two countries in December 1996.
● There has been keen interest shown by both sides towards maritime cooperation. India was a key
participant in Exercise Blue Crane with South Africa and other SADC countries in 1999.
● Exercise IBSAMAR, a joint multinational maritime exercise between India, Brazilian, South
African Navies was initiated in 2006. It is considered as the most visible manifestation of
convergence of democratic values, economic interest and maritime cooperation. The last edition of
IBSAMAR VI was held at Simons Town, South Africa on October 2018
● India Africa Field Training Exercise (AFTX) 2019, the joint training Exercise conducted in March
2019 at Pune, in which India and many African nations including South Africa were participants.
The exercise aims at synergising humanitarian mine action and joint peace operation.

4.4 Partnership in multilateral fora’s: India and South Africa have a long history of working together by
coordinating their views and efforts in institutions of global governance/multilateral fora’s, in order to
achieve greater autonomy and ensure that the agenda of ‘South’ is prioritised.

4.4.1 BRICS (Brazil, Russia, India, China and South Africa): In 2010, the formerly known grouping of
BRIC, became BRICS with the induction of South Africa. The BRICS Forum’s valuable contribution in
reforming the global financial and economic architecture is well-appreciated by both India and South Africa.
During the sixth BRICS summit in Fortaleza in 2014, a decision was taken to establish the New
Development Bank (NDB) which aims to mobilise resources for the development project in BRICS,
emerging economies, and developing countries. BRICS leadership in creating alternative institutions like
the NDB is indeed noteworthy. Although the NDB is not envisaged as rivals to the International Monetary
Fund and World Bank, as an additional mechanism, the political message is clear. Both India and South
Africa remain committed to work together to enhance intra-BRICS trade, investment, and financial
cooperation.

4.4.2 IBSA (India, Brazil, and South Africa) – Established in 2003, the IBSA Dialogue Forum brings
together three large democracies and major economies from three different continent’s facing similar
developmental challenges and represents three developing, pluralistic, multicultural, multiethnic,
multilingual, and multi-religious nations. India and South Africa appreciates the work carried out by the
IBSA Facility for Poverty and Hunger Alleviation (IBSA Fund), established in March 2004, and became
operational in 2006, in sharing experiences, expertise, and capacities with developing countries in a South-
South Cooperation framework.

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4.4.3 G20 – Both India and South Africa recognises G20 as the premier forum for coordination in
international financial and economic matters, and calls upon the world-community to utilise monetary,
fiscal, and structural reforms to jump-start the global economy. During his meeting with former President
Zuma in 2016, PM Modi agreed on India’s continued support for the South African proposals on the illicit
financial flows, the Antimicrobial Resistance (AMR) and for the industrialization of Africa and Least
Developed Countries (LDCs) as well as the G20 Action Plan on the implementation of the 2030 Sustainable
Development Agenda.

4.5 Cooperation in the Indian Ocean:

● During the recent visit of South Africa’s President in January 2019, both countries agreed to
enhance cooperation in the field of the Oceans Economy and to cooperate in multilateral forums
on the Blue Economy including in the framework of Indian Ocean Rim Association (IORA), the
organization was formally launched in 1997.
● The idea of IORA is said to have taken root during a visit of former South African Foreign Minister,
Pik Botha, to India in November 1993. It was cemented during the subsequent presidential visit of
Nelson Mandela to India in January 1995. Consequently, an Indian Ocean Rim Initiative was
formed by South Africa and India. Indian Ocean Rim Association (IORA) has identified six priority
areas for cooperation, namely:
I. maritime security,
II. trade and investment facilitation,
III. fisheries management,
IV. disaster risk reduction,
V. academic and scientific cooperation and
VI. tourism promotion and cultural exchanges.
● The Indian Ocean Naval Symposium (IONS) of which both India and South Africa are members,
is a regional forum of Indian Ocean littoral states, represented by their Navy chiefs, was initiated
and launched by India in February 2008. It provides a forum to increase maritime security
cooperation, providing a forum for discussion of regional maritime issues and promote friendly
relationships among the member nations.

5. Recent Developments:
President Cyril Ramaphosa’s visited Delhi as the chief guest of Republic Day, 2019. During the visit, a
Three-Year Strategic Programme of Cooperation (2019-2021) was signed by the two sides, aimed at
further enhancing the strategic partnership between the two countries. During the visit, the two countries-
I. recalled the Strategic Partnership established between India and South Africa through the Red
Fort Declaration of March 1997 and the Tshwane Declaration of October 2006.
II. agreed that the 10th Session of the India-South Africa Joint Ministerial Commission will be
held in 2019 in New Delhi led by the Foreign Ministers of both the countries.
III. agreed to cooperate, share best practices, technology and expertise on the Ease of Doing Business
Reform Programme.

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IV. committed to cooperate in all relevant multilateral forums through the groupings of G20, BRICS,
IBSA, BASIC, NAM, WTO and the Commonwealth, as well as the strengthening of the Indian Ocean
Rim Association (IORA).

6. Conclusion:
India and South Africa have immense opportunity to make their strong presence in the African continent.
Both the country can take the most benefit of it and ultimately will be beneficial for all the African nations
too.
India has a better opportunity to establish herself as a strong leader among BRICS nation if they continued
their momentum with South Africa as well. Apart from bilateral relations with South Africa, India should
also focus on the groups like IBSA (India, Brazil, South Africa) and IORA (Indian Ocean Rim Association)
which will help India to make it a strong presence in littoral nations of the African continent. India also has
an advantage of support while at of bidding for permanent membership of UN Security Council.

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CHAPTER 5 : INDIA - WEST ASIA RELATIONS

Introduction:
India has always shared a special relationship with its West Asian neighbours and that India had emerged
as the second largest trading partner, after the US, of Gulf Cooperation Council (GCC) member countries
Saudi Arabia, Oman, the United Arab Emirates, Kuwait, Bahrain and Qatar. India given its uniqueness
with a fully functioning democracy, a multi-religious, multi-ethnic and multi-lingual pluralist society is also
being viewed by many as a model to the societies in West Asia.
India’s engagement with West Asia and the Gulf region has become increasingly more intense and wide-
ranging in scope and dimension is apparent from the number of recent top-level visits exchanged between
their leaders.

Fig. West Asia

Historical Background:
● India and West Asia have a civilizational link. India has historical ties with West Asia going back to
the tie of Indus Valley civilization when trade in turquoise, copper and spices were common. Indian
merchants were present in WA even before the coming of Islam and the Indian merchants had trade
with Mecca. Since the 6th century BCE, Indians also undertook trade with Jews, who were the
only community to trade along India’s west coast. The coming of the British added a new geo-
strategic outlook to the Indo–West Asia trade. For the British, West Asia acted as a land bridge to
Asia, Afghanistan, Europe and was strategically located with links to the Mediterranean

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Sea, Red Sea and access to the Arabian Sea. The WA politics was influenced by Nationalism in the
Arab world, western imperialism and the Zionist movement.
● Indian foreign policy engagement in West Asia after the independence of India can be divided into
two distinct phases, pre- and post-1991.
● Prior to 1991 India’s engagement with the region was one of “political distance,” on account of the
dynamics of Cold War politics and the fact that India purchased the bulk of its hydrocarbons needs
(15-25 per cent) from Russia and had nothing substantial to offer to the Arab world: trade, goods,
services, technology, or economic assistance. India’s relationship with Israel was frozen due to its
pro-Arab and pro-Palestine position.
● Post 1991 India’s engagement with the region began to increase and solidify due to a multitude of
factors: the end of the Cold War, the disintegration of Soviet Union, and India’s growing demand
for oil and gas due to its accelerated economic development and propensity to acquire great power
status fuelled by aggressive economic and political nationalism. This set of objectives drew India
closer to the United Arab Emirates (U.A.E.), the Kingdom of Saudi Arabia, the Islamic Republic of
Iran, and Israel — the very same countries around which Indian foreign policy in the region revolves
today.
● With the advent of the new millennium, there has been an extraordinary turnaround in the
relationship between the Gulf Cooperation Council (G.C.C.) countries and India.

Importance of West Asia for India:

1. Energy Security:
● Energy security, of course, is a key ingredient of India’s interest in West Asia. It is dependent on
imports for 80% of its oil needs, of which more than 60% sourced from the West Asia or middle
east. India’s region-wise crude oil import data for the past five years shows Middle-East countries
have increased their market share while the share of Africa and South America has decreased
during the period.
● The growing energy necessity has undoubtedly dictated India’s initiative of building up a ‘strategic
energy partnership’ with the region to secure long term energy supply for the country.

2. Trade and Investment:

● The Gulf remains a favourite trading partner for India and the trade figures have been consistently
going up especially with countries like the UAE, Saudi Arabia and Iran. The UAE is India’s foremost
non-oil trading partner in the world.

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● The Gulf countries look at India as a fast growing economy which holds the potential to compete
with the major world economies. Realising the trade potential of the Gulf countries, India has
entered into a negotiation with the GCC to finalise a Free Trade Agreement.
● Attracting Foreign Direct Investment from the cash rich Gulf region is also a priority for India. The
Gulf countries have huge potential for investing in different sectors in India for mutual benefit.
According to the Department of Industrial Policy and Promotion, from April 2000 to October 2010
the UAE was the top investor in India from the region with investments worth US$ 1,815.29 million,
followed by Oman which has invested US$ 326.55 million.
● Iran and Kuwait have, extended loans respectively for the Kudremukh iron ore mine and the
Kalinadi hydro-electric project-both in Karnataka- Iraq has invested in the multi-million oil refinery
now being set up at Mathura.

3. Military Cooperation:
● The growing threats of Islamic extremism, terrorism and maritime piracy have become concerns for
both India and the Gulf countries. There is a growing concern over the rise of criminal activities,
money laundering and illegal arms trade between the two regions.
● India has signed defence cooperation agreements with the UAE, Oman, Qatar and Saudi Arabia.
● India and Oman conduct defence exercises. Al- Nagah, Naseem-al- Bahr and Eastern Bridge are
the name of military, Navy and Airforce exercise respectively between the two countries.
● Desert Eagle is the exercise between India and UAE conducted by Air force.

4. India Diaspora:
● India’s diaspora in the Gulf, numbering between around 7 and 8 million, has of course always been
important to the country’s economy and its policy objective of alleviating poverty. The Gulf is India’s
main source of expat remittances. In 2015-2016, Indian workers sent back $35.9 billion in valuable
foreign exchange.
● The diaspora also contributes to India’s soft power independent of government policy, providing a
steadfast anchor in relations unaffected by policy shifts in Delhi.

5. UNSC Reforms:
● Many West Asian Countries support India’s bid to United Nations Security Council Reforms.

India’s Strategy to West Asia:

● Ensuring the stability and security of the Persian Gulf region, including the protection of the large
Indian expatriate community in the context of persistent conflict and violence across the region,
has emerged as the top priority of Indian foreign policy toward West Asia in recent years.
● The high degree of political unpredictability and deteriorating security environment in the region,
along with the growing possibility of the reduction if not withdrawal of the American security role
in the region, has led India to follow two simultaneous, though not necessarily contradictory, paths
in conducting its relations with West Asia.

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I. One path is marked by the continuation of India’s traditional diplomatic line of “non-
interference” in the internal affairs of its counterparts in the region, coupled with a “wait
and watch” posture that is punctuated by condemnations of terrorism and sectarian
violence and appeals to regional stakeholders to pursue negotiated settlements of disputes.
II. The other path is marked by the deepening of India’s security ties with its Gulf Arab
partners, including in the area of counterterrorism, along with exploring the possibility of
an alternative multilateral Asian security framework for the Gulf involving important
stakeholders such as China, Japan, and South Korea.
This approach has led the Indian government to invest in overseas oil and gas fields,
to conduct defence exercises and modernise India Navy with a view to protecting sea lines
of communication (SLOCs) in the Indian Ocean.

Challenges:
● Pakistan Factor: India’s “trust deficit” with Pakistan has incapacitated India from advancing its
commercial interests in the region. Moreover, Pakistan continues to have a strong political
constituency across Muslim West Asia — nurtured by its Islamic identity, the image of victimhood,
and military-security ties — which tilts the balance of political support in the region in its favour
vis-a-vis India.
● China Factor: A second external challenge to India’s foreign policy in West Asia comes from China.
China has acquired immense global influence and prestige. There is a huge power disparity between
China and India in terms of hard cash and military prowess. And China has already made rapid
inroads in the Gulf by virtue of having acquired equity stakes in the region’s upstream oil and gas
sector, and having successfully penetrated Arab markets. Finally, India’s incapacity to manage its
own periphery, South Asia, has arguably made Gulf Arabs more inclined to seek Chinese, rather
than Indian protection, if the situation so warrants.
● Israel factor: India close relationship with Israel and increasing cooperations between the two
countries has been another sore point with West Asia.
● Rise of Extremism: Terrorism has emerged as the biggest security threat to the region. The rise of
the Islamic State in Iraq and Syria (ISIS) is the most disturbing trend,
and it has emerged as the biggest security challenge in the whole region.
● US Sanctions on Iran: US has put several economic sanctions on not only Iran but also the
countries dealing with Iran. Consequently, India’s oil imports from Iran declined more than 20%
from November 2017 to November 2018 period.

Way Forward
● India has huge stakes and interest in the region. It is time for India to adopt a formally articulated
Look West Policy, in line with the successful Look East Policy.
● Along with strengthening bilateral ties with the countries of the region, India must also deal with
the countries at multilateral forum- like the GCC and the Arab League.

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● The rise of extremism in the region will have unpleasant consequences for India. India must be
prepared to deal with the fundamentalist blow back from the region by strengthening its internal
security systems.
● India’s bilateral trade is heavily dominated by the energy supplies from the region. Also, a large
chunk of the India’s total trade is exchanged with big trading partners like UAE and Saudi Arabia.
Thus, there is a need to diversify trade with other countries of the region which needs special effort
by India. Early conclusion of the Free Trade Agreement (FTA) will provide a boost to the India-GCC
economic relations.
● India needs to take concrete steps to attract foreign investment by further relaxing regulatory
restrictions, and inviting investors from this region to actively participate in India’s robust growth
story for mutual benefit.

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CHAPTER 5 : INDIA- SAUDI ARABIA RELATIONS

Context
● India and Saudi Arabia has signed Bilateral Annual Haj 2019 Agreement at Jeddah. The agreement
will facilitate India Muslim women to go to Haj without “Mehram” (male companion).
● Saudi Arabia Prince Mohammed bin Salman (MBS) visited India in February 2019.

Historical Background:
● India- Saudi Arabia established diplomatic relations in 1947 which was followed by high-level visits
from both sides. King Saud visited India in 1955 and the Prime Minister Jawaharlal Nehru visited
the Kingdom in 1956.
● However, the relations with Saudi Arabia have not been very smooth during the Cold War. Saudi
Arabia supported Pakistan in Indo- Pak War in 1948, 1965 and 1971. Saudi Arabia also supported
Pakistan on Kashmir issue. Pakistan was able to garner Saudi support owing to its religious
foundation and its emergence as an Islamic state.
● In January 2006, King Abdullah bin Abdul-Aziz visited India — the first visit by a Saudi monarch
in 51 years and the first top level bilateral visit since Indira Gandhi’s trip to Saudi Arabia in 1982.
● The Delhi Declaration signed in 2006 aimed to strengthen ties in areas of energy, trade, science
and technology, education, health, and political cooperation on regional and international issues.
● The 2010 Riyadh Declaration furthered on this agreement and focuses on enhancing cooperation
on counterterrorism, money laundering, narcotics, arms and human trafficking, and defence and
economic cooperation.

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● Prime minister Modi visited Riyadh in 2016 and in 2018 met MBS in Argentina on the sideline of
the G-20 summit.

Significance of Saudi Arabia for India:

1. Saudi Arabia’s growing regional profile: Saudi Arabia has been an important regional player in the
Gulf and West Asia region owing to its huge petroleum reserves, the presence of the two holy mosques,
and its growing military power among other factors. It has substantial influence on the regional politics.
This increasing profile of the country is a call for India to engage further with Saudi Arabia in areas
beyond bilateral trade and energy supply.
2. Saudi Arabia as a gateway to the Arab and Islamic world: Saudi Arabia enjoy considerable clout in
the Arab and Islamic worlds owing to the presence of the two holy mosques in Mecca and Medina.
Strengthening ties with Saudi Arabia will provide a unique platform for India to promote its interest and
to enable greater access to other countries in the region.
3. Economic & Commercial Relations: Saudi Arabia today is India’s 4th largest trade partner (after
China, USA and Japan) and is a major source of energy as India import around 17 % of our crude oil
requirement from the Kingdom. Saudi Arabia is the 15th largest market in the world for Indian exports
and is destination to 1.85% (2017-18) of India’s global exports. On the other hand, Saudi Arabia is the
3rd largest source (4.74% in 2017-18) of India’s global imports.
4. India’s stakes in the security of the Gulf region: India sees the Gulf region as falling within its security
parameter and has shown readiness to contribute to the security and stability of the region through
sharing its own experiences in the areas of counter-terrorism, maritime security and military training.
5. Cooperation against terrorism: Following the 9/11 attacks, Saudi Arabia has taken steps to check the
flow of money and disrupting terrorist networks. It has condemned extremism and has been preaching
moderation including through religious leaders. Strengthening India’s relations with Saudi Arabia will
allow new avenues for India to manage relations within its own neighbourhood and also contribute to
the security of the Gulf region.
6. To bring peace in Afghanistan: India and Saudi Arabia share a common interest is Afghanistan. Saudi
Arabia recently played a major role in bringing some sections of the Taliban to the conference table, and
facilitated the dialogue between them and the US.
7. Energy Security: Saudi Arabia is also a key pillar of India's energy security, being a source of 17 percent
or more of crude oil and 32 percent of LPG requirements of India. With particular reference to the
‘Strategic Petroleum Reserve’ Saudi Arabia is a key player of securing India’s Energy Security.
8. Indian Community in Saudi Arabia: The 2.7 million (as of Dec, 2018) strong Indian community in
Saudi Arabia is the largest expatriate community in the Kingdom and is the ‘most preferred community.

Area of Concern:
● The Pakistan factor has also been an important element of the India-Saudi Arabia relationship.
Pakistan’s influence over Saudi Arabia in hindering a stronger Indo-Saudi relationship. Although
India’s deepening engagements with Saudi Arabia over the recent past has resulted in building a
stronger bilateral relationship

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● Saudi Arabia concerns with respect to India’s engagements in the West Asian region, particularly
with reference to India’s engagement with Iran, be it on oil trade or the Chabahar port, and the
supply of arms to India from Israel
● Saudi policy of ‘Nitaqat’ under which Saudi companies and enterprises are required to fill up their
workforce with Saudi nationals up to certain levels, would potentially upset the large expatriate
community of Indian working in the Kingdom.

Conclusion:
Over the span of a mere decade, the India-Saudi Arabia relationship has been transformed from a
transactional relationship to a strategic partnership. Accordingly, the scope of cooperation has widened not
just within traditional areas such as energy, migration, and trade but has expanded to other sectors,
including investment, health, pharmaceuticals, IT, ICT, and space. India and Saudi Arabia have also
reached a greater understanding on security and defense matters. Importantly, India and Saudi Arabia
seem to have reached the point where, unlike in the past, they are both determined not to permit the further
development of ties between them to be bracketed by their relations with third countries (e.g., Iran or
Pakistan).

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CHAPTER 6 : INDIA AND CENTRAL ASIA RELATIONSHIP

Context:
● First India- Central Asia Dialogue held in Samarkand, Uzbekistan on January 12 and 13, 2019.
● India became the full member of Shanghai Cooperation Organisation in 2017

Historical Background:
● The relation between India and Central Asia are ancient and civilization. India has had relations
with the Central Asia since 3rd century as the country fell on route to Ancient Silk Route
● The Silk Route connected India with Central Asia not only for transportation of goods and wares
like silk, textiles, spices etc but was an effective channel of exchange of thoughts, ideas, religion
and philosophy. Buddhism travelled over this route from India to Central Asia and from there to
West China in contemporary Xinjiang region.
● Babar the Founder of Mughal Dynasty came from Fergana Valley (in Central Asia spread across
eastern Uzbekistan, southern Kyrgyzstan and northern Tajikistan.) in 1526.
● During the Soviet period culture, music, dance, movies and literature bound the Soviet Republics
closely with India.
● Bilateral relation however suffered great neglect after the disintegration of former USSR and the
emergence of these Central Asian Countries in 1991.

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Importance of Central Asia for India:

1. Strategic location:
● The region is a land bridge between East Asia and Europe, between South Asia and Europe and
between West Asia and East Asia/Europe. The geostrategic location of the Central Asian states has
made this region extremely pivotal.
● India’s first and only foreign military airbase is in Farkhor (Tajikistan), which is operated by Indian
Air Force and Tajik Air Force. Considering the proximity of Tajikistan to the Pakistan-occupied
Kashmir (PoK), Farkhor Airbase is very significant for security architecture of India.
● Central Asian Regions lie at the crossroads of Russia, the Middle East, South Asia and the Far
East. Any geopolitical changes in the region inevitably extend their impact on several states in the
neighbourhood.

2. Energy Security:
● The countries of Central Asia are endowed with significant hydrocarbon and mineral resources.
● Kazakhstan is the largest producer of uranium and has huge gas and oil reserves as well.
● Uzbekistan is also rich is gas, and is an important regional producer of gold along with Kyrgyzstan.
● Tajikistan has vast hydropower potential besides oil, deposits, and Turkmenistan has the fourth
largest gas reserves of the world.

3. Trade and Investment Potential:

● The economic development of Central Asia, especially in Kazakhstan, Turkmenistan and
Uzbekistan, leads to development of sectors like IT, pharmaceuticals and tourism.
● India has expertise in these sectors and deeper cooperation will give a fresh impetus to trade
relations with these countries.

4. Security:
● To tackle the challenge of terrorism, narcotics trafficking and arms smuggling.
● Central Asian region holds strategic significance for India in its fight against terrorism.
● Indian and Kazakh armies engaged in a joint exercise such as 'Prabal Dostyk’ to strengthen
bilateral army-army ties and exchange information and skills.
● Central Asian countries and India share long cultural links, which will be crucial in reducing the
threat of radicalisation by cooperating with each other.

India’s approaches and initiative to Central Asia

India’s ‘Connect Central Asia’ policy: India’s Connect Central Asia policy is a broad-based approach,
including political, security, economic and cultural connections. Unveiled in June 2012, the policy reflects
India’s greater interest in connecting with its ‘extended neighbourhood’
The major element of India’s Connect Central Asia Policy are as follows:
● To build on strong political relations through the exchange of high level visits and to interact closely
both in bilateral and multilateral fora.

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● Strengthening India’s strategic and security cooperation over the region by military training, joint
research, counter-terrorism coordination and close consultations on Afghanistan.
● Multilateral engagement through the existing organisation like the SCO, Eurasian Economic
Community (EEC) and the Custom Union.
● Establishment of a Central Asian e-network with its hub in India, to deliver tele-education and tele-
medicine connectivity, linking all the five Central Asian States.
● To build up a long term partnership in energy and natural resources and to cooperate in other field
such as health, education, banking etc.

Initiatives taken so far: India has taken many initiatives to increase the connectivity and alleviate bilateral
relations with the Central Asian countries. Some of the initiatives are as follows:
1. Chabahar Port
● Chabahar is a seaport in Chabahar located in southeastern Iran, on the Gulf of Oman. The port is
jointly developed by India, Iran and Afghanistan.
● Chabahar is India’s most viable gateway to Afghanistan and Central Asia with Pakistan denying
India any land access to Afghanistan. Central Asian powerhouses – Uzbekistan and Kazakhstan –
also view Chabahar Port as their gateway to the Indian Ocean Region.

2. International North - South Corridor:

● The International North–South Transport Corridor (INSTC) is a 7,200-km-long multi-mode network
of ship, rail, and road route for moving freight between India, Iran, Afghanistan, Armenia,
Azerbaijan, Russia, Central Asia and Europe.
● The primary objective of the NSTC project is to reduce costs in terms of time and money over the
traditional route currently being used. Analysts predict by having improved transport connectivity
between Russia, Central Asia, Iran and India their respective bilateral trade volumes will increase.

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3. Ashgabat Agreement:
● The Ashgabat agreement is a multimodal transport agreement between the governments of
Kazakhstan, Uzbekistan, Turkmenistan, Iran, India and Oman for creating an international
transport and transit corridor facilitating transportation of goods between Central Asia and the
Persian Gulf.
● India formally joined Ashgabat Agreement in February, 2018
● For enhanced connectivity, the Ashgabat Agreement will also synchronize with the International
North–South Transport Corridor.

4. TAPI Gas Pipeline:

● The Turkmenistan–Afghanistan–Pakistan–India Pipeline (TAPI), also known as Trans-Afghanistan
Pipeline, is 1814km natural gas pipeline.
● The pipeline will transport natural gas from the Galkynysh Gas Field in Turkmenistan through
Afghanistan into Pakistan and then to India.
● The TAPI project is considered as an important initiatives of the four countries to connect energy
rich Central Asia with energy starved South Asia.

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5. India-Central Asia Development Group:

● India proposed to set up an ‘India-Central Asia Development Group’ at the first India-Central Asia
dialogue 2019 in Samarkand, Uzbekistan. The group is expected to enable New Delhi to expand
its horizons in the resource-rich region amid China’s massive inroads and to fight against terror
effectively, including Afghanistan.

Challenges:
1. Lack of Physical connectivity: Lack of physical connectivity is the main hurdles in India’s relations
with Central Asia. Poor Connectivity is major bottlenecks in promoting and expanding trade, commerce,
energy, tourist links with the Central Asian countries.
All these countries are landlocked. Some of them are doubly landlocked. It is generally assumed that
unless countries have access to warm-water seas, they will not be able to develop fruitful economic
relations with the outside world.
2. China Factor: Unlike India, China shares long borders with three Central Asian states: Kazakhstan,
Kyrgyzstan, and Tajikistan. China, due to its growing military, economic, and defense cooperation with
Central Asia, has become a threat to India’s ambitions in the region. While China has advanced in its
efforts to build its own new silk road, India is still struggling to capitalize on its potential role in Central
Asia.
3. Problems of Drugs and Arms Trafficking: Drugs trafficking in Central Asia poses a major threat to the
stability of both the regions. Drugs are penetrating into the region along two main channels, the golden
triangle and the golden crescent. Since much of the money generated through drug trafficking is used
to support the activities of extremist Islamist terror networks that possess the ability to play havoc in
India.
4. Security Concerns: Both India and Central Asian Region are close to each other and sharing border
with Pakistan and Afghanistan which are epicentre of terrorism and religious extremism. The security

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concerns like terrorism, drug trafficking, arms trafficking, organized crime, separatism and ethnic
conflicts etc. have been the major problems. Central Asia finds itself exposed and vulnerable to
influences like Al Qaeda, Islamic State, Taliban, IUM, Hizb-ut-Tahrir and others.

Way Forward:
● To follow up the points mentioned in Connect Central Asia Policy with adequate resources and
implementation mechanism.
● To institute and strengthen defence and security dialogue with Central Asian Countries.
● Education and medical field provide an excellent opportunity for India to showcase its soft power.
However, this will require considerable strengthening of infrastructure at home so that the Central
Asians, who come to India, find it a hospitable and comfortable country.
● There should be finalization of Free Trade Agreement between India and Eurasia Economic Union
(EAEU). Trade revenue between the EAEU and India could grow by 30 to 40 percent through
effective tariff liberalization

Conclusion:
Strengthening of relations between India and Central Asia is to the mutual benefit of all the countries
involved. It is not directed at countering China’s presence in the region. India is interested in expanding its
ties with the region as it will promote security, stability, economic growth and development of all countries.
Good relations with India will provide an assured market to these countries for their energy, raw materials,
oil and gas, uranium, minerals, hydroelectric power etc. India is the fastest growing economy in the world
today and can be a stable, assured, expanding market for these countries.
The current political, strategic and economic scenario, both regionally and internationally, presents
immense challenges but also the potential for India and Central Asia to qualitatively enhance their
engagement. Both India and Central Asia are factors of peace, stability, growth and development, in the
region and the world. Stronger relations between them will contribute to increased security and prosperity
of these countries and the world.

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CHAPTER 7: INDIA-EU RELATIONS

Introduction:
India and the EU are natural partners. India-EU bond is built on their shared beliefs. India and the EU are
the two largest democracies in the world. They share the same values of freedom, equality and tolerance.
India is one of the fastest growing economies and EU being the biggest open market and the world’s 2nd
largest economy, provide ample opportunities to cooperate in economic spheres.

Background:
● India-EU bilateral relations date to the early 1960s with India being amongst the first countries to
established diplomatic relations with EU in 1962.
● The Current relations between India-EU are defined by the 1994 EU-India Cooperation
Agreement.
● The first India-EU Summit took place in Lisbon on 28 June 2000 and marked a watershed in the
evolution of the relationship.
● The relationship was upgraded to a ‘Strategic Partnership’ during the 5th India-EU Summit held
at The Hague in 2004.

European Union : Some key Facts

● European Union is a political and economic union of 28 member states that are located primarily
in Europe.
● The EU was created by the Maastricht Treaty, which entered into force on November 1, 1993.
● Covering 7.3% of the world population, the EU in 2017 generated a nominal gross domestic
product (GDP) approximately 24.6% of global nominal GDP.
● Schengen Area is an area comprising 26 European states that have officially abolished all
passport and all other types of border control at their mutual borders.
● Institutions: The European Union has seven principal decision making bodies, its institutions:
I. The European Parliament,
II. The European Council,
III. The Council of the European Union,
IV. The European Commission,
V. The Court of Justice of the European Union,
VI. the European Central Bank and
VII. the European Court of Auditors.

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Area of Cooperation:

1. Trade:
● The EU is India's largest trading partner, accounting for €85 billion worth of trade in goods in 2017
or 13.1% of total India trade, ahead of China (11.4%) and the USA (9.5%).
● India is the EU’s 9th largest trading partner, accounting for 2.3% of the EU’s total trade in good.
● Trade in goods between the EU and India almost doubled in the last decade.
● Trade in services between the EU and India increased from €23 billion in 2010 to €29 billion in
2016. India is now the 4th largest service exporter to the EU and the 6th largest destination for EU
services exports.
● With investments in India of $83 billion over 2000- 2017, it is 24% of total FDI flows into the
country.
● Some 6,000 EU companies are present in India, providing directly 1.7 million jobs and indirectly 5
million jobs in a broad range of sectors.

2. Maritime Security Cooperation:

● Maritime security is of increasing importance for India and the EU. The two partners are affected
by both traditional and non-conventional security challenges, including piracy, human and drug
trafficking and maritime terrorism.

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● This led to This led the EU to launch Operation Atalanta and the Indian Navy to carry out anti-
piracy patrols in the Gulf of Aden.
● Tackling traditional challenges of maritime security and maintaining freedom of navigation in the
Indian Ocean region has assumed greater salience for both India and the EU.

3. Cyber Security:
● India and Europe face common cyber threats – critical infrastructure protection, deep web, cyber-
crimes, espionage (commercial and strategic), and online radicalisation.
● Both sides began cooperating on cyber security issues after the 2010 Brussels Summit, where
they agreed to closer cooperation and mutual assistance in this field.
● Initial steps were limited to a bilateral consultation on cyber security and cybercrime.
Subsequently, in May 2015, consultations were upgraded to a Cyber Dialogue, within the
framework of the bilateral Security Dialogue.
● ‘Digital India’ initiative and the EU’s ‘Digital Single Market’ strategy, through increased
cooperation in cybersecurity, ICT standardisation, and internet governance, research and
innovation.

4. Renewable Energy and Climate Change:

● The EU and India consider climate action and the clean energy transition as an imperative for the
future development of our societies. They confirm their commitments under the historic Paris
Agreement, adopted under the UNFCCC.
● India and the EU committed to lead and work together to combat climate change, implement the
2030 Agenda for Sustainable Development and encourage global low greenhouse gas emissions,
climate resilient and sustainable development.
● India and the EU also cooperate to promote wind and solar energy under the various platform.

5. Terrorism and Security:

● Terrorism and security are the two areas where India and the EU have tremendous convergence.
● India has been a victim of terrorism for a while, and the resurgence of the ISIS in the recent times
has led to Europe becoming its latest victim. In 2016 itself, attacks in Paris, Nice, Brussels, and
London have made Europe extremely vulnerable to attacks.
● India and the EU adopted a declaration to counter terrorism at the 14th India-EU summit India.
The declaration is a joint statement and an action plan to combat international terrorism. The
leaders also criticized the terror act by Rohingya terrorists and also sent a clear message to China
by emphasizing on the United Nations Convention on the Laws of the Seas (UNCLOS) for resolving
all maritime territorial disputes.

Recent Development:
A. 14th India EU Summit: The 14th annual Summit between India and the European Union (EU) was
held in New Delhi on 6 October 2017.The summit marked the 55th anniversary since the establishment of

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EU-India diplomatic relations. The leaders reviewed the wide-ranging cooperation under the India-EU
Strategic Partnership.
Some of the major outcomes of this summit are as follows:
I. India and the EU reaffirmed their commitment to enhance maritime security cooperation in the
Indian Ocean and beyond.
II. Both sides agreed to enhance the India-EU space cooperation, including Earth observation.
III. India and the EU reaffirmed their support for the continued full implementation of the Joint
Comprehensive Plan of Action (JCPOA) regarding the Iranian nuclear issue
IV. India and the EU reiterated the importance they attach to human rights cooperation, including
on gender equality and women empowerment in all spheres of life.

B. EU-India Agenda for Action-2020: EU- India agenda for Action 2020 is a common roadmap to jointly
guide and strengthen the India-EU Strategic Partnership in the next five years. The agenda further builds
upon the shared objectives and outcomes of the Joint Action Plans of 2005 and 2008.
Some of the key component this agenda are as follows:
I. Foreign Policy: To strengthen foreign policy cooperation by regular dialogue at appropriate level
and to explore possibilities for development partnership and triangular cooperation.
II. Security: Strengthen cooperation and work towards tangible outcomes on shared objectives of non-
proliferation & disarmament, counter-piracy, counter-terrorism (including counterradicalisation)
and cyber securit.
III. Transport: To Strengthen cooperation and dialogue on transport policy, and to On civil aviation,
implement the EU-India horizontal agreement (signed in 2008) and enhance cooperation
including on aviation safety.
IV. Space: Enhance space cooperation including earth observation and satellite navigation for the
strengthening of interaction between the Indian Regional Navigation Satellite System (IRNSS) and
EU's Galileo as well as joint scientific payloads.
V. 2030 Agenda for Sustainable Development: Establish an EU-India dialogue to share experiences
on the implementation of the 2030 Agenda for Sustainable Development.

Issues Between India and EU:

1. India-EU Broadbased Trade and Investment Agreement:
● Broadbased Trade and Investment Agreement is a Free Trade Agreement between India and the
EU, which was initiated in 2007.
● Talks on an EU-India Bilateral Trade and Investment Agreement have stalled after failing to resolve
differences related to matters such as the level of FDI & market access, manufacture of generic
drugs, greenhouse gas emissions, civil nuclear energy, farming subsidies, regulation & safeguards
of the financial sector, cooperation on tax evasion, overseas financing of NGOs in India, trade
controls, technology transfer restrictions and cooperation on embargoes.

Points of contention between India and EU:

I. India has not been granted “data secure” status by EU.

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II. U.K. visa rules discriminate against Indian technical professionals including because they have
hiked visa fees and have numerical caps on visas.
III. EU imposed a ban on sale of 700 pharmaceutical products even though they were clinically
tested by GVK Biosciences.
IV. India cancelled most bilateral investment agreements with EU member states in 2016 on
grounds that they were outdated.

2. Issues of Non-Tariff Barrier:

● In goods trade, the real issue for India is non-tariff barriers such as sanitary and phytosanitary
measures, and technical barriers to trade.
● The EU has been imposing stringent labeling requirements and trademark norms, for instance,
which have dented India’s exports. About two years ago, India’s export of Alphonso mangoes to the
EU suffered due to stringent non-tariff barriers.

3. Brexit:
● Brexit is an abbreviation for "British exit," referring to the U.K.'s decision in a June 23, 2016
referendum to leave the European Union (EU).
● Britain always provided a gateway to the European Union. Many Indian businesses have their
offices in Britain so they can avail benefits and continue to remain a part of the EU. But with Brexit,
this benefit will be taken away and may result in companies relocating their business set ups to
other place.
● Automobile, Pharma and IT might be the most affected. NASSCOM has predicted that the effect of
Brexit will be felt on the $108 Billion Indian IT sector in the short term.

4. IPR Issues:
● In the area of intellectual property (IP), the major disagreement is regarding IP protection standards.
The EU is keen that India should adopt stringent IP protection standards, even if that means going
beyond the WTO specified standards.
● For India such additional measures could compromise public health and raise other compelling
concerns.

5. Impacts of USA
● The challenge posed by the Indo-US partnership to the India EU strategic relationship has hardly
been publicly discussed. Many Indians believe that given the complexities and sensitivities of India’s
difficult neighbourhood and the threat of terrorist strikes from across its borders, an alliance with
the US is the need of the hour, rather than with the EU which appears divided and in decline.

Way Forward:
● There is need to address various issues plaguing finalization of Broadbased Trade and Investment
Agreement, in a time bound manner.

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● To protect its interest India should bring about comprehensive structural and legal reforms, such
as making it easier to do business and invest in India.
● India should invest in greater coordination security cooperation with Europe in overlapping spheres
of influence. For example, it is puzzling that India continues to stay away from the EU-coordinated
naval escort missions for the UN World Food Programme in the Indian Ocean, when China has
already participated 11 times till October 2017.

Conclusion:
India-EU relations are coming such a junction, where both have to seriously calibrate their partnership.
Merely reiterating that India and the EU are “natural partners” is not enough. There is need to look beyond
economic relations and area from security sector cooperation to countering terrorism and regional security,
need to be focused on.

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