Friday, October 16, 2020

India’s neighbours drifting towards China: Has PM Modi’s “Neighbourhood First” policy failed?

This article is by

Share this article

Article Contributor(s)

Syed Ahmed Uzair

Article Title

India’s neighbours drifting towards China: Has PM Modi’s “Neighbourhood First” policy failed?

Publisher

Global Views 360

Publication Date

October 16, 2020

URL

Prime Minister Narendra Modi in a 2014 SAARC Meeting

Prime Minister Narendra Modi in a 2014 SAARC Meeting | Source: Wikimedia

Back in 2014, when BJP came to power in India under the leadership of Narendra Modi, he invited the heads of government from Nepal, Bangladesh, Pakistan, Afghanistan, the Maldives, Bhutan, and Sri Lanka to his swearing-in ceremony at the Rashtrapati Bhavan.­ The move set the tone nicely for Modi’s “Neighbourhood First” foreign policy and was hailed by experts and critics alike as a positive step towards bolstering regional connectivity and improving cross border relations. Cut to 2020, and the ongoing China-India conflict has exposed plenty of problems for New Delhi regarding its relations with its neighbouring countries, particularly, Pakistan, Bangladesh, Sri Lanka, and Nepal.

In recent days China has increased its investments in Asia and beyond even as India and the West have watched from close quarters. Most of the investments have revolved around Chinese President Xi Jinping’s Belt and Road (BRI) Initiative , which aims to create a Sino-centric global trading network and sphere of influence. The BRI initiative is a matter of concern particularly for India because of the China-Pakistan Economic Corridor (CPEC) that is perhaps the most important project under the BRI initiative.

India has, traditionally, played a dominant role in economic and political matters concerning most of its smaller neighbours. However, with the BRI initiative, China gradually built up its political ties with countries such as Nepal, Sri Lanka, and Pakistan, while India’s relations with these countries have become less cordial in recent years. Nepal, Sri Lanka, and Bangladesh, who were once considered allies to India appear to have tilted in favour of China.

The changing nature of India’s and China's relation with India’s neighbouring countries was evident in the silence of these countries when there was a serious flare-up on the India-China border. It is important to note that every South-Asian nation except Bhutan has signed on to China’s BRI. Bhutan is still following India’s lead in not joining BRI due to its own border dispute with China, for which India’s support is essential.

Nepalese Prime Minister KP Oli with PM Modi | Source: Wikimedia

Nepalese PM KP Oli had called Indian PM Narendra Modi, on 15th August, India’s seventy-third Independence anniversary. A statement by India’s Ministry of External Affairs stated, “‘The leaders expressed mutual solidarity in the context of the efforts being made to minimise the impact of the Covid-19 pandemic in both countries.” However, in June 2020, the Nepalese Armed Police Force fired upon a group of Indian citizens at the India-Nepal border, killing one person and injuring two others. A third Indian who had been detained was released later. The move came in the aftermath of the Nepalese Parliament declaring the Indian territories of Limpiyadhura, Lipulekh and Kalapani as a part of Nepal.

Historically, India and Bangladesh have maintained close ties with each other. Modi’s rise to power in 2014 had no effect as Bangladesh’s PM Sheikh Hasina continued to maintain relations with India. In June 2015, when Modi visited Bangladesh 22 bilateral agreements were signed, including the resolution to a border issue that had existed since 1947 through a successful land boundary agreement (LBA). India also pledged $5 billion worth of investments in Bangladesh. When Sheikh Hasina visited New Delhi in April 2017, a civil nuclear tripartite pact was signed between India, Russia, and Bangladesh. Under the pact India will play an important role in establishing a nuclear power plant in Bangladesh. Even as late as March 2019, Narendra Modi had launched four projects in Bangladesh.

PM Modi, during a meeting with Bangladeshi PM Sheikh Hasina donates the steering wheel of INS Vikrant (R11) to the Bangladesh War Museum | Source: Wikimedia

However, India’s relationship with Bangladesh turned sour post August 2019, when the BJP government implemented the NRC in Assam, a north-eastern Indian state. The process of NRC was meant to identify illegal immigrants from Bangladesh. The 1.9 million people left out in the Assam NRC were a cause of concern for Bangladesh owing to the fear of a sudden influx of people forced out of the Indian state. Bangladesh thus turned to China under its “look East” policy in a bid to reduce its dependence on India. China replaced India to become the top trade partner of Bangladesh in 2015 and has provided assistance to Bangladesh through the BRI via 27 agreements signed on Xi Jinping’s visit to the nation in 2016.

“China is behaving how emerging superpowers generally tend to behave—they try to flex muscles and project power—all of which China is trying to do at the moment," says Happymon Jacob, associate professor of disarmament studies at Jawaharlal Nehru University (JNU). “When that happens, states around that emerging power will either stand up against it (like India) or jump on the bandwagon (like other smaller south Asian countries)."

While China continues to make rapid strides, India is left to wonder as to how to deal with this apparent crisis surrounding its neighbouring countries. Modi’s neighbourhood first policy has certainly failed to deliver the promises it made and relations with most neighbouring countries have worsened over the past six years. New Delhi has missed out on several economic gains that would have strengthened ties with neighbouring countries and thereby would have helped to counter the growing Chinese influence in the region. It remains to be seen as to how India decides to get over this tricky situation and improves its ties with its neighbouring countries.

Support us to bring the world closer

To keep our content accessible we don't charge anything from our readers and rely on donations to continue working. Your support is critical in keeping Global Views 360 independent and helps us to present a well-rounded world view on different international issues for you. Every contribution, however big or small, is valuable for us to keep on delivering in future as well.

Support Us

Share this article

Read More

February 4, 2021 4:52 PM

Can Vietnam leverage its COVID-19 success for economic growth?

While the entire world is battling with COVID-19, Vietnam, in a country of over 100 million recorded just 330 cases as of early June 2020 and zero death in May 2020.

A professor at Nagasaki University’s Institute of Tropical Medicine Vietnam Research Station said that "Vietnam has no special test kits or drugs to treat the disease, but the government decided to do what it had to do at an early stage and put that plan straight into practice."

Vietnam was quick in its action. As soon as the first case was confirmed, the government had called upon measures for serious quarantine, implemented strict border control measures, and curbed unnecessary local movement. Close to a million people were isolated to halt the spread of further infections.

The strict measures helped Vietnam to quickly control the COVID situation and put the focus back on the economy. The mainstay of Vietnam's economy, garment export and tourism witnessed steep fall resulting in loss of employment to over 3.5 million people in the first half of 2020. Still Vietnam’s economy has expanded by 0.36% over last year in the same period unlike other countries in the region where it contracted as compared to last year. The annual GDP growth for Vietnam in 2020 is expected to be around 2.7% to 3% which again is the best in the region.

Vietnam , today is the safest country in the region to travel, work, or stay amidst the worldwide COVID pandemic. It is being favourably considered as an alternative destination by many companies who are looking to cut down their reliance on China in their supply chain.  The Free Trade Agreement (FTA) between the European Union and Vietnam which will be operational in August, may help Vietnam grow its exports.

Apart from export led growth, the tourism sector may also grow significantly as the other major tourist destinations in the region, Singapore and Thailand, are still battling with the pandemic, while Vietnam has successfully overcome the same.

The government is also looking to support the local business by slashing the corporate income tax to 30 percent which increased the liquidity for some sectors of economy. Special tax benefits and deferred tax payments(in some cases) are also in  line for small and medium enterprises (SMEs) which constitutes almost 97% of all the businesses in Vietnam. All these measures are expected to lead to a 7% GDP growth for Vietnam in 2021.

The miraculous recovery from the pandemic, government incentives to industry, and the willingness of many companies to relocate from China present such a perfect mix of opportunities for Vietnam to leap ahead and become the fastest-growing economies in SouthAsia. What remains is to see how fast and how effectively the country is able to act while this window of opportunity is open.

Read More