A Year of Smart Diplomacy: Milestones 2015
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Year End
Review, 2015
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Path-breaking, Proactive, Pragmatic – these
three P’s encapsulate the diplomatic initiatives and outreach of the Government
of India led by Prime Minister Narendra Modi in 2015
It was a year marked by out-of-box thinking, boldness
of vision and energetic execution, which has reignited the ‘India Story’. In the
process, India proved itself to be a major player in shaping evolving debates
across issues, ranging from global governance reforms and climate change to
trans-national terrorism and cyber security.
The neighbourhood continued to be the primary focus of
attention as a historic agreement with Bangladesh was completed, and India
rushed to assist Nepal after a devastating earthquake. The Afghan President
came calling, while relations with Sri Lanka received new impetus. 2015 was a
milestone in Indian diplomacy in reinvigorating India’s ties with all P5
powers, with Prime Minister Narendra Modi visiting the US, China, France,
Britain and Russia, paving the way for marked acceleration of multi-faceted
relations with all these countries. It was also a year in which India’s multi-hued
engagement with crucial regions of the world, including Africa, West Asia,
Central Asia and South-East Asia acquired a new vitality and a long-term
vision, opening new vistas for mutually empowering cooperation. The Third
India-Africa Forum Summit rejuvenated old historical and cultural ties between
the two growth poles of the world and placed the special partnership at the
heart of an evolving world order. India’s summit with Pacific Island
states signaled a new thrust in India’s diplomacy, which entails
taking major powers as well as small and significant states together in the
pursuit of common goals and shared interests. Relationships with multilateral
groupings such as BRICS, G-20 & Commonwealth were strengthened. The last
twelve months also saw India celebrating and bolstering its connections with
the 25-million strong Indian diaspora spread across hemispheres, through a host
of new initiatives.
Insofar
as foreign policy aims to create the environment for domestic growth and
prosperity, even while it seeks to raise the country’s global stature, the list
of achievements in 2015 is significant. Beyond the photo-ops, visits and
agreements, a wide range of possibilities has been translated into tangible
outcomes. On the economic front, the sentiments for private investment and
inflow of foreign investment have turned positive. FDI inflows have also gone up by 40% in this year
alone. Much of India’s foreign policy outreach has been driven by the need to
translate partnerships into benefits for key domestic initiatives such as Make
in India, Skill India and Digital India, and agreements with key countries have
reflected this requirement. The Make in India initiative, for instance, has
received a tremendous response, with some foreign countries allocating specific
funds towards creation of manufacturing hubs in India. The recent agreements
with Japan, for instance, outline a partnership in a large number projects
cutting across sectors, including the high profile bullet train project between
Mumbai and Ahmedabad.
The Skill India project has found resonance with
countries such as Germany, Singapore, South Korea and Japan willing to offer
their expertise to benefit India’s growing workforce. Similar has been the case
for the Smart Cities initiative and Ganga Rejuvenation. In a landmark visit to California, the Prime
Minister’s pitch for a Digital India that would transform access to technology
for the majority of the population received an enthusiastic response by leading
technology and social media companies. By opening India’s doors to the
best of foreign expertise and leveraging partnerships for common benefit,
Indian diplomacy seeks to take the goal of foreign policy for domestic
transformation for the common man further than ever before.
India’s
growth story this last year has been noticed amongst financial institutions and
organizations. The country has been recently ranked as the most attractive
investment destinations by Ernst & Young. In a ranking of the top
greenfield investment destinations in the first half of 2015, India is at number
one. Foreign Policy magazine of the US has also ranked India as number one
FDI destination. India has improved its UNCTAD ranking of investment
attractiveness from 15th to 9th, moved up 12 ranks in the World Bank’s Ease of Doing
Business report of 2016, and jumped 16
places on the World Economic Forum’s global competitive index. Projecting
the changes underway in India abroad has been a key focus of our diplomacy.
Neighbourhood Diplomacy: Mapping New Frontiers
Building
upon Prime Minister Modi’s path-breaking initiative of inviting all SAARC
leaders to his swearing-in ceremony last year, India continued
to reach out proactively to its immediate neighbours in South Asia for a
sustained engagement.
Transformational
Diplomacy acquired a new resonance with the Prime Ministerial
visit to Bangladesh in June that saw the exchange of instruments of
ratification of the landmark land boundary agreement. It was literally ushering
in a new dawn for thousands of people living on tiny islands of land as India
and Bangladesh swapped enclaves, bringing to an end their 68-year-old boundary
dispute. The formal swapping of enclaves has brought a new life of hope and
dignity for around 51,000 people living in 162 enclaves across both countries,
and underlined possibilities of how diplomacy can provide a new direction to the
lives of ordinary people.
The
June 6-7 visit of PM Modi also saw India-Bangladesh developmental cooperation
scaling new heights, with India pledging a $2 billion Line of Credit for
Bangladesh, the largest single LOC for any country committed by India. The $2
billion LOC has raised the bar for India’s engagement with Bangladesh and
is set to bring the two neighbours in a web of trade, connectivity and shared
prosperity. Projecting a narrative of interlinked destinies, the two countries
took a host of steps to enhance connectivity, including the launch of two new
bus services. The two countries are a part of the sub-regional cooperation
between Bangladesh, Bhutan, India and Nepal to enhance connectivity and
regional integration.
Similarly,
India’s relations with Sri Lanka scaled new frontiers with a
spate of two-way visits by the leaders and foreign ministers of the two
countries, within months of the newly-elected Sri Lanka President Maithripala
Sirisena taking charge of the island nation. During PM Modi’s visit
to Sri Lanka in March, India pledged $318 million Line of Credit for railway
upgradation (New Delhi’s development assistance is already about $1.6 billion),
unveiled a currency swap agreement of US $1.5 billion to help stabilise the Sri
Lankan rupee and to develop Trincomalee as a regional petroleum hub with the cooperation
of Lanka IOC (Indian Oil Corp’s subsidiary in Sri Lanka) and Ceylon Petroleum Corporation.
Both countries also signed four pacts regarding visa exemption for official
passport holders, youth exchanges, customs agreement (to address trade concerns
and reduce non-tariff barriers) and the construction of the Rabindranath Tagore
auditorium at the Ruhuna University with India’s aid.
Amid
the backdrop of the unfolding transition in Afghanistan, India sustained its
engaged with Afghanistan and promoted a narrative of friendship in the
strife-torn country. The visit of Afghan President Ashraf Ghani to India in
April 2015 saw India reiterating its commitment to the reconstruction of
Afghanistan. With the economic flowering of Afghanistan in mind, the two sides
focused on working towards a more liberalized business visa regime. Afghanistan
welcomed India's decision to extend the 1000 scholarships per year scheme by
another 5 years as part of capacity building initiatives. India continues its
assistance to the construction of the India-Afghanistan Friendship (Salma) Dam in Herat, expected to be completed in the first half of the coming
year. The Parliament Building in Kabul constructed with Indian
assistance has already been completed as well as on the Doshi and Charikar
power stations.
India’s all-weather friendship with Bhutan, which was
galvanized after PM Modi’s visit to the country last year, continued on an
upward curve. The visit of Bhutan’s Prime Minister Tshering Tobgay to India in January
focused on optimizing cooperation in the field of hydropower – the
centerpiece of economic cooperation between the two countries. The two sides
expressed satisfaction over the progress of the three ongoing HEPs totaling
2940 MW under the inter-governmental model. They reiterated their commitment to
the 10,000 MW initiative and in this context, to the early implementation of
the four JV-model projects, totaling 2120 MW.
When Nepal was
hit by a massive earthquake on April 25, India was the first to respond to the
calamity and the humanitarian
tragedy that followed by launching
its largest disaster response abroad, Operation Maitri. During EAM’s visit
to Kathmandu in June, India pledged $1 billion grant for the reconstruction of
the quake-hit Nepal. However, the political situation within Nepal offered
challenges in the wake of the promulgation of a new constitution that did not
take into account the concerns of all sections of the populations. India
continues to push for an early resolution of the internal crisis by urging
dialogue amongst all sections of society and a consensus driven political
solution.
India
also engaged with the Maldives leadership despite political volatility in the
island country. This was reflected in the meeting between the foreign ministers
of India and the Maldives on the sidelines of the UN summit in New York in
September. External Affairs Minister Sushma Swaraj followed it up with a visit
to the island nation from October 10-11 to reinvigorate ties.
India
has consistently said that it wants better relations with Pakistan, but this
can be only possible in an atmosphere free of terror and violence. Improving
relations remained a major challenge in the backdrop of terror attacks but
India made a bold beginning with a meeting between PM Modi and Pakistan Prime
Minister Nawaz Sharif on the sidelines of the BRICS summit in Ufa, Russia. The
meeting ended with a shared position that India and Pakistan have a collective
responsibility to ensure peace and promote development. The two sides unveiled
a five-point agenda to address concerns on terrorism and to promote
people-to-people contact. Despite a number of hurdles including on account of
terror attacks in the aftermath of Ufa, and Pakistan calling off the initial round
of NSA level talks, a significant breakthrough was achieved in December with
the NSAs meeting in Bangkok, followed by the EAM’s visit to Islamabad for the
Heart of Asia Conference. On its sidelines, EAM called on PM Nawaz Sharif and
met with her counterpart, Sartaj Aziz following which they issued a joint
statement condemning terrorism, noting that NSAs would continue discussions on
all aspects related to it and Pakistan would expedite the trial in the Mumbai
attacks case. Accordingly, both sides agreed to initiate a comprehensive
bilateral dialogue, the modalities of which would be worked out by the Foreign
Secretaries.
With Myanmar on the cusp of a historic democratic transition, India welcomed the elections and the PM congratulated Aung San Suu Kyi for her victory in Parliament. Bilateral relations remained on the upward trajectory with the First India-Myanmar Joint Consultative Commission (JCC) Meeting held in New Delhi on July 16, 2015, steps to further enhance the existing air connectivity, extending a US$ 500 million Line of Credit to the Government of Myanmar for development priorities, and a commitment to enhance the regional and sub-regional cooperation under the BCIM-EC and the BIMSTEC framework. India also played an instrumental role in providing disaster relief support to Myanmar in response to widespread floods and landslides caused by Cyclone Komen.
Act East Policy: Vision, Vigour and Plan of Action
India's
'Act East Policy,' enunciated with great vigour and foresight by the new
leadership, acquired a new force in 2015 and manifested itself in the deepening
of economic and strategic partnership with ASEAN countries and the extended
East Asia region. India’s diplomatic efforts focused on leveraging synergies
with this economically vibrant region and linking up these countries with India’s
development agenda, pivoted around interlinked programmes of Make in India,
Digital India, Smart Cities, Start-up India, M-Governance and Skill India.
The
year also saw a marked upgrade of India’s security cooperation with the
region, with the two sides mapping out concrete steps to intensify cooperation
in combating terrorism, piracy and traditional and non-traditional security
threats. These key drivers of Act East policy were reflected in PM Modi’s
participation in India-ASEAN and EAS summits in Kuala Lumpur in November and in
his bilateral visits to Malaysia, Singapore and South Korea. Singapore
President’s visit to India, Vice-President Hamid Ansari’s trip
to Laos, Cambodia and Indonesia, Myanmar’s foreign minister’s visit
to India and visits of EAM Sushma Swaraj to Indonesia and Thailand telescoped
multiple strands of intensified and reinvigorated engagement between India and
the East Asia region across the spectrum.
ASEAN and EAS
The
10th India-ASEAN summit culminated in the adoption of an ASEAN-India
plan of action for the period 2016 to 2020, entitled “Partnership for
Peace, Progress and Shared Prosperity.” Underscoring the centrality of
ASEAN in India’s diplomatic outreach to the region, PM Modi pledged a
Line of Credit of USD 1 billion at the 13th India-ASEAN summit in
Kuala Lumpur to promote projects that support physical and digital connectivity
to transform the corridors of connectivity into corridors of economic growth
and prosperity. A Project Development Fund to develop manufacturing hubs in
CLMV countries, an Innovation Platform to facilitate commercialization of low
cost technologies, the enhancement of the ASEAN-India Science and Technology
Development Fund from the current USD 1 million to USD 5 million were some of
the key announcements. On the trade side, the India-ASEAN Investment Centre,
which is set to become functional very soon, will enable the two sides to scale
up bilateral trade to $100 billion. India has also called for spurring progress
in negotiations for a balanced and ambitious Regional Comprehensive Economic
Partnership Agreement that covers goods and services as well as investments.
Enhanced
security cooperation, the exhortation to delink terror from religion, and push
to adopt the CCIT were important thrust areas. With maritime security becoming
increasingly pivotal to secure global sea lanes of communication, India
underlined its shared commitment with ASEAN towards freedom of navigation, over
flight and unimpeded commerce, in accordance with accepted principles of
international law, including the 1982 UN Convention on the Law of the Sea.
In
terms of bilateral interactions, PM Modi’s visit to South Korea in May,
followed by bilateral trips to Malaysia and Singapore in November, reflected in
a nutshell, the key emphasis of the country’s Act East
policy. During PM Modi’s May visit, India and South Korea agreed to upgrade the
bilateral relationship to a ‘Special Strategic Partnership’ as the two
sides decided to establish annual summit meetings, in either country, or on the
margins of multilateral events. They infused a new energy into their
multi-faceted partnership by signing seven bilateral agreements in diverse
areas. The decision to launch a diplomatic and security dialogue in 2+2 format,
making Republic of Korea the second country with which India has such a
dialogue, reflected the deepening strategic content of the relationship. South
Korea is set to play a crucial role in India’s economic
modernization, with its companies excited about supporting large infrastructure
projects in India. Seoul signaled confidence in the India Story by unveiling
$10 billion package to support India’s ambitious projects, including Make in India and
smart cities.
PM Modi’s bilateral visit to Malaysia (November 23) saw the
two countries enhance their strategic partnership by signing three pacts, which
encompassed diverse areas, including cooperation in cyber security, public
administration and culture. Malaysia is set to play a more proactive role in
India’s development journey with Malaysian companies
offering to be a part of India's smart cities project and to help in
infrastructure development of India.
India’s ties with Singapore, a crucial plank of our Act East
policy and the second largest source of FDI, experienced a distinct upward
movement during Singapore President’s state visit to India in February to celebrate 50
years of the establishment of diplomatic ties and PM Modi’s November
23-24 visit to the city state. Prime Minister Modi was one of the few world
leaders invited to visit Singapore in March 2015, to join the island
nation in mourning the demise of its founding father Lee Kwan Yew. During his
November visit, India and Singapore signed a joint declaration on a Strategic
Partnership agreement and signed 10 bilateral agreements in the areas of
defence, cyber security and civil aviation. The strategic partnership has
identified five focal areas to strengthen economic cooperation which includes
scaling up of trade and investment, speeding up air and maritime connectivity
and coastal development, smart city development and urban rejuvenation, skills
development and capacity building.
The
Vice President’s visit to Cambodia, Laos and Indonesia and EAM’s visit to Thailand and
Indonesia also helped consolidate our partnership with key ASEAN partners. With
Thailand, the signing of a revised treaty to avoid double taxation is set to
upscale trade and investment and an exchange of Instruments of Ratification of
Extradition Treaty will enhance security cooperation between the two countries.
Cultural ties are set to get a boost with the signing of a MoU on Thailand
joining the establishment of Nalanda University and a MoU on the establishment
of an Ayurveda Chair in one of the Thai universities.
Engaging
Major Powers: New Dynamism, New Vistas
Moving
beyond our immediate neighbourhood, the new government energetically engaged
with key major powers of the world, with the Prime Minister visiting all P5
countries and aspiring members of the UN Security Council, including Japan and
Germany. The sustained and variegated engagement with established and emerging power
centres opened new vistas for upgrading these crucial partnerships and sealed
India’s stature as a rising global power which is central to sculpting an
inclusive global order.
US
The
new government’s diplomatic calendar began with a trailblazing visit by US
President Barack Obama to India as the chief guest at the country’s Republic
Day celebrations, the first American president to be thus invited. Building
upon PM Modi’s visit to the US last year, President Obama’s second trip to
India saw India-US relations scale new milestones as the world’s oldest and
largest democracies unveiled a transformative all-encompassing agenda in the
form of the joint statement entitled “Sanjha Prayas, Sabka Vikas (Shared
Effort, Progress for All), which establishes the US as a prime partner in
India’s ongoing national resurgence. The breakthrough achieved in implementing
the landmark civil nuclear deal was the most visible outcome of the ongoing
transformation in India-US ties. The relations saw a marked upswing in
diverse areas, spanning enhanced defence cooperation through pathfinder
projects for joint production, green energy, development of smart cities and
infrastructure. Underscoring their increasing congruence over a host of global
and regional issues, India and the US articulated a joint strategic vision for
the Asia-Pacific region and the Indian Ocean. Buoyed by increasing optimism
about the India Story, the two countries have set a target of multiplying
bilateral trade five times to US$ 500 billion.
President
Obama’s visit was followed by that of PM Modi to the US in September, making
2015 a unique year in the annals of India-US relations with two-way visits by
the leaders of both countries. PM’s second visit to the US was singular in so
far as this was the first prime ministerial visit from India to the US’ West
coast in nearly 60 years, with PM Modi connecting with the corporate and
digital elite of Silicon Valley in California. PM Modi’s meeting with President
Obama in New York underlined the changed climate in India-US relations as the
two leaders sought to upgrade cooperation across an entire spectrum of issues
ranging from climate change and economic ties to counter-terrorism, cyber
security and UN Security Council reform. Put together, the two visits minted an
emerging template of India-US relations, which will be underpinned by Business,
Technology, Innovation and Entrepreneurship (BITE), as “the defining
partnership of the 21st century” looks set to cross new milestones
in the days to come.
PM’s
visit was preceded by the launch of the first-ever India-US Strategic and
Commercial Dialogue in Washington DC, which was attended by EAM Sushma Swaraj
and Minister of State for Commerce and Industry, Nirmala Sitharaman.
China
In
our extended neighbourhood, India’s relations with China acquired a new
stability and added economic and strategic content. Building upon the State
Visit of President Xi to India in September last year, PM Modi undertook a
three-city tour of China, which was unique in many ways. PM’s visit was
preceded by that of EAM’s visit to Beijing in February that saw the launch of
the ‘Visit India Year’ in China and extensive discussions with the Chinese
leadership on a host of bilateral and regional issues.
Blending
diplomacy, culture, business and geopolitics, the May 14-16 visit forged a new
narrative of “major powers” engagement and placed the burgeoning relations
between India and China as central to the realisation of an emerging Asian
century. In a rare gesture, Chinese President Xi Jinping welcomed Prime
Minister Modi in Xi'an, the first time President Xi hosted a visiting foreign
leader in his ancestral province. The renewed vitality in India-China relations
was reflected in the signing of 24 agreements in diverse areas, ranging from infrastructure,
smart cities and railways to culture, skill development, space and climate
change.
Intensifying
diplomatic engagement across the spectrum, the two sides decided to hold
regular summit meetings and agreed to open new consulates in Chengdu and
Chennai. PM Modi’s emphasis on cooperative federalism in the arena of foreign
policy was reflected in the launch of the first-of-its kind State/Provincial
Leaders’ Forum that will facilitate greater interaction between states and
provinces of the two countries.
What
set apart the summit-level interaction was the “candour” and “constructive”
approach to all outstanding issues, including the decades-long boundary
question. Building on China’s pledge of $20 billion investment in India for the
next five years, which was unveiled during the Chinese president’s visit to
India in September 2014, India and China signed business deals worth $22
billion even as the Chinese leadership assured to bridge the trade deficit by
providing more market access to Indian IT and pharma companies. Positioning
cultural diplomacy and people-to-people contact at the heart of the expanding
India-China partnership, PM Modi announced e-visa facility for Chinese
tourists. In cheering news for Indian pilgrims, the two sides signed an
agreement that provides an additional route for the annual Mansarovar Yatra
through Nathu La Pass in Sikkim, in addition to the existing Lipulekh Pass in
Uttarakhand. The visit of the PM was followed up with Home Minister’s visit to
China, and visits to India by the Chinese Vice President Li Yuanchao and
General Fan Changlong, Vice Chairman of the Central Military Commission.
Japan
Our
relations with Japan were revitalised by Prime Minister Shinzo Abe’s landmark
visit to India in December. The visit reflected the personal rapport PM Modi has
forged with PM Abe during the former’s visit to Japan last year. Following wide
ranging talks that covered a number of issues, the two sides reached 16
agreements including one on Cooperation in the Peaceful Uses of Nuclear Energy.
Of particular significance was Japan’s partnership on India’s economic
development through supporting a number of initiatives – the bullet train
between Mumbai and Ahmedabad, the Make in India Fund, the ODA assistance for 13
different big projects, dedicated Japan Industrial Townships, the Chennai
Bengaluru Industrial Corridor all of which add up to more than $35 billion which
the two Prime Ministers had agreed to last year. Defence and security as well
as maritime security also were also high priority items for discussion, with an
agreement on transfer of defence technology and equipment and regular
participation in Malabar. UNSC reform, India’s participation in export control
regimes, and India’s membership of APEC were all discussed positively.
Highlighting
the civilizational ties between the two nations, and mirroring the PM’s visit
to Kyoto last year the PMs visited the city of Varanasi to take forward the
ties between the two cities. In a unique ceremony, both the PMs participated in
the Ganga Aarti at the Dashashwamedh Ghat in Varanasi. The visit imparted a new
resonance to the ‘Special Strategic and Global Partnership’ and envisaged
India-Japan relations as critical to the evolving Asian Century.
Russia
Our
relations with Russia, a time-tested strategic partner, were bolstered by a
slew of high-level visits, culminating in the annual summit between PM Modi and
Russian President Vladimir Putin in December.
PM
Modi’s meeting with the Russian president on the sidelines of the BRICS summit
in July outlined future areas of cooperation, with special focus on scaling up
economic relations, civil nuclear energy partnership and enhanced participation
of Russia in the Make in India project.
President Pranab Mukherjee’s visit to
Russia (May 7-11) to attend the V-day celebrations saw the signing of seven
pacts to enhance educational and innovation cooperation between the two
countries. This included setting up of a Network of Indian and Russian Universities
and an agreement on encouraging young researchers in both countries to work on
innovative research projects.
The
visit of EAM Sushma Swaraj to Russia (October 19-21) saw the two countries sign
the protocol for the 21st session of India-Russia Inter-Governmental Commission
on Trade, Economic, Scientific, Technological and Cultural Cooperation
(IRIGC-TEC).
Europe: France, Germany and Britain
The
Indian government was proactive in stepping up engagement with major European
powers. Prime Minister Modi conducted hugely successful visits to France and
Germany in April 2015. In France, he focused on seeking French investment in
infrastructure, sanitation, waste management, smart cities, Clean Ganga
programme, and defence manufacturing. Major decisions were announced with
respect to the acquisition of Rafale fighter aircraft by India, and cooperation
between NPCIL and AREVA on the Jaitapur Civil Nuclear Plant. Twenty agreements
were signed in diverse areas, ranging from civil nuclear energy, defence and space
to smart cities, business, tourism and the promotion of cultural heritage.
France’s support for Make in India was reflected in a pact on
forging cooperation between Indian and French railways for semi-high speed rail
link and station renovation and pledges by French defence majors to undertake
co-development of high-value weaponry. In a boost for India’s green
drive, French companies agreed to support India’s sustainable
development with 2 billion Euros investment by French companies.
In
Germany, Prime Minister represented India as the Partner Country for the
Hannover Messe Business Fair, the largest such exposition in the world, and
made a robust pitch to seek German investment and expertise to support the ‘Make in India’ programme, especially in areas like skill development,
renewable energy and defence manufacturing. Several far-reaching collaborative
projects in diverse areas were discussed, which were crystallised during German
Chancellor Angela Merkel’s trip to India (October 4-6). The German leader’s visit
saw a landmark joint announcement on setting up a Fast-Track System for
clearing investments by German companies in India and a pact to promote
cooperation in the field of manufacturing.
India-UK
relations moved into a high-growth phase during PM Modi’s maiden visit
to the UK (November 12-14) and included many symbolic gestures by Britain that
included iconic British monuments being bathed in the colours of the Indian
flag, an overnight stay by PM Modi at British Prime Minister David Cameron’s official
country retreat, lunch with the Queen of England and the first ever address by
an Indian prime minister to the British parliament. The talks in London
outlined substantive outcomes that included a bigger role for Britain in India’s plans
of national renewal, including Make in India and Smart Cities, reinvigoration
of economic ties, enhanced defence and security partnership, a separate joint
statement on energy and climate change and a separate statement of intent on partnering
in third countries. The signing of a civil nuclear cooperation pact, the
decisions to hold PM-level biennial summits and a new Defence and International
Security Partnership are set to bring tangible benefits to both countries in
days to come. Britain’s support for CCIT and action against anti-India
terrorist outfits operating from India’s neighbouring country was
significant. Economic ties are set to climb new peaks with the sealing of
private sector deals amounting to 9.2 billion pounds, including a £1.3
billion pound investment by Vodafone. The decision to issue rupee bonds to be
listed at the London Stock Exchange for financing railway infrastructure, the
clean energy package worth 3.2 billion pounds of commercial agreements and the
visit by PM Modi to the Jaguar Land Rover (JLR) plant in Solihull were symbolic
of the win-win economic partnership.
Other Regions
West Asia: Raising the Bar
India’s relations with West Asia, home to over 7
million-strong Indian diaspora and the source of over 70 per cent of the
country’s oil imports, moved onto an upward trajectory in the
last twelve months.
In
the first quarter of 2015, the visit of the Emir of Qatar March 24-25 enhanced
diplomatic, economic and strategic cooperation between the two countries. The
visit saw the signing of 4 MOUs and 2 agreements in diverse areas, including
ICT, scientific and technical cooperation and media. The two sides signed an
important agreement on the transfer of sentenced persons and decided to upscale
security and counter-terrorism through regular dialogue, sharing of
information, intelligence and assessments and training of personnel.
PM Modi’s visit to the UAE (August 16-17) was a game-changer,
which elevated the relationship to the level of a strategic partnership and
opened new doors for expanding economic and security cooperation between the
two countries. The visit was followed by that of UAE Foreign Minister Sheikh
Abdullah bin Zayed Al Nahyan to India (September 3-4). The talks upscaled
relations across key areas, including the forging of strategic energy
partnership, and cooperation in space, nuclear energy, renewables and higher
education. There was a major breakthrough in enhancing counter-terror and
security cooperation, with the two countries launching a security dialogue and
stepping up coordination in counter-terrorism operations, de-radicalization,
intelligence sharing and capacity building. The UAE’s support for
the adoption of India-backed Comprehensive Convention on International
Terrorism in the United Nations and support for dismantling terrorism
infrastructure and isolating state supporters of terrorism was especially
significant.
The
visit of Iran’s Foreign Minister Javad Zarif in August focused on
raising the economic relationship between India and Iran in the backdrop of the
historic nuclear deal between Iran and the P5+1 countries. The talks have set
the stage for transforming India-Iran relations and enhancing two-way trade and
investment. The decision to move from the existing buyer seller relationship to
a genuine energy partnership involving both upstream and downstream is a
potential game-changer. Issues relating to the two ongoing projects related to
Chahbahar and the International North South Transport Corridor (INSTC) and
India’s participation in the Iranian railways sector were
also discussed.
President Pranab Mukherjee’s visit to
Jordan, Palestine and Israel (October 10-15) signaled the Indian government’s
strategic intent and commitment to simultaneously enhance relations with the
Arab world as well as Israel, without allowing it to become a zero sum game.
In Israel, the
two sides developed a roadmap for expanding cooperation in solar energy, dairy
development, water management, horticulture, animal husbandry and agriculture
as well as cooperation between Indian Space Research Organization and Israeli
Space Agency. India and Israel discussed new possibilities and synergies to
diversify trade as well as mutual investments. Two inter-governmental
agreements were signed and eight MoUs were exchanged between the educational
institutions of India and Israel.
In
Jordan, 16 MoUs and agreements, including between academic institutions, were
signed as the two sides explored opening up new synergies in diverse areas
including counter terrorism, defence, IT, and energy.
During
his visit to Palestine, the President reiterated India’s principled
support to the Palestinian cause, calling for a negotiated solution towards a
united Palestine, existing peacefully with Israel as endorsed in the Quartet
Roadmap and relevant UNSC Resolutions. Six MOUs and Agreements were signed,
with India announcing an increase in ICCR scholarships from 10 to 25 per annum,
and ITEC slots from 50 to 100. India also extended budgetary support amounting to
US $5 million to the Palestinian authority.The India-Palestine Center for Excellence in ICT was inaugurated, and another
was announced in Gaza. A IT park (Ramallah) and a Palestinian Institute of
Diplomacy, at an estimated costs of US $12 million and US $4.5 million
respectively, were also announced.
Africa: Transformative Agenda
It
was the year of Africa for India’s diplomacy as New Delhi hosted the third India-Africa
Forum Summit (October 26-29) by inviting all 54 countries. The summit, which
was attended by 41 heads of state/government and representatives of other
countries marked the biggest ever gathering of African leaders and unveiled a “dynamic
and transformative agenda” of mutual resurgence by dovetailing the India growth
story with Africa’s vision of its own resurgence, as reflected in Agenda
2063. The IAFS-III also saw Prime Minister Modi engaging in bilateral meetings
with all leaders of African countries who had come for the summit. The summit
was preceded by important initiatives focused on building up a knowledge bridge
and bolstering people-to-people contact, which was reflected by the Editor’s Forum
and Academics’ Forum. Development cooperation in Africa is set to
scale new heights as India announced Lines of Credit worth USD 10 billion in
concessional credit to Africa, apart from an additional grant assistance of USD
600 million, which included an India-Africa Development Fund of $100 million
and an India-Africa Health Fund of $10 million. Significantly, the total
financial pledge for projects to be executed over the next 5 years (till 2020)
is more than double of the LOCs and grants committed by India over the last two
summits. The $100 million development fund will be used for setting up training
institutes and other showpiece projects of India-Africa development cooperation
which will be finalized in the plan of action to be launched with the AU next
year. With a view to harnessing the youth power of the continent, India more
than doubled scholarships for Africans to 50,000 over the next five years.
India also decided to expand the Pan Africa E-Network, a defining digital
connectivity project that currently encompasses 48 African countries for
tele-medicine and tele-education. The IAFS-III mapped out a blueprint for joint
development of the blue economy and forged a comprehensive framework for
proactive collaboration on a range of cross-cutting issues, including
terrorism, piracy, cyber security, climate change, sustainable development, WTO
negotiations and UNSC reform. Looking ahead, the summit underlined the
convergence of India and Africa on fast-tracking the expansion of the UNSC,
with both sides supporting permanent seats for India and Africa in a reformed
UNSC. We also agreed to set up a joint monitoring mechanism to track
implementation of agreed projects to ensure that there is no gap between ideas
and action.
The
summit was the high moment in India-Africa relations, but it was preceded by
important visits by EAM to South Africa and Egypt and incoming visits of the
presidents of Tanzania and Mozambique.
The
visit of EAM to South Africa (May 18-21) saw the two sides fleshing out a
framework of a five year strategic programme of cooperation as they identified
priority areas of cooperation: defence, deep-mining, science and technology,
agriculture & food processing and insurance. The two sides also decided to
launch an India-South Africa Preferential Trade Agreement (PTA). EAM’s visit to
Egypt (August 23-25) resulted in the two sides scaling up security and
counter-terror cooperation and the signing of pacts on enhancing tourism and scientific
and technical cooperation. During the visit of Tanzania President to India
(June 17-21), the outcomes included setting up of a Joint Working Group on
bolstering counter-terror cooperation, India’s assistance to development of gas
sector in Tanzania and the signing of an agreement on hydrography. The visit of
President of Mozambique to India (August 4-8) reflected in a miniature key
elements of India’s Africa policy, with its focus on trade, training,
technology and capacity building.
FIPIC
Taking
off from PM’s visit to Fiji to attend the first meeting of the Forum for
India-Pacific Islands Cooperation (FIPIC), India hosted the second edition of
the summit to reach out to 14 island states which culminated in a host of
initiatives in areas of capacity building, developmental cooperation, renewable
energy and blue economy. Firming up a template for accelerating this crucial
partnership across the spectrum, FIPIC-II saw India offering to set up an
information technology laboratory in each Pacific island country that will
enable people in the region to get access to tele-medicine and tele-education.
In areas of training and capacity building, India increased the slots under the
Indian Technical and Economic Cooperation (ITEC) training programme, with Fiji
getting 110 slots, and the number of slots for the other 13 countries to be
doubled from 119 to 238. Other important initiatives by India included
partnering in the development of micro, small and medium enterprises in the
region, the setting up of an Institute for Sustainable Coastal and Ocean
Research with a network of marine biology research stations and offer of
assistance in establishing a ‘Space Technology Applications Centre’ in any
one of the Pacific island countries for the entire region. The summit with
large ocean states, as PM Modi called it, saw substantive discussions on closer
cooperation in UN reform and combating climate change.
Central Asia: Higher Trajectory
India’s Connect Central Asia policy moved into high gear in
2015, with the unique journey by PM Modi to all five Central Asian states (July
6-13), including Uzbekistan, Kazakhstan Turkmenistan, Kyrgyzstan and
Tajikistan. Together with our participation in the SCO summit in Russia it sent
a strong message on the importance of building on India’s civilisational links
with this resource-rich, strategically located region. The path to India’s
inclusion in the SCO has nearly been completed and the Ufa gathering has
imparted greater coherence and traction to our Connect Central Asia policy. The
outcomes were reflected in scaling up economic ties, forging energy
partnership, deepening security cooperation and focus on cultural diplomacy to
qualitatively transform relations with the region. EAM’s trips to
Turkmenistan in April and Tajikistan in May set the stage for PM Modi’s
transformational visit to the region in July.
India
and Uzbekistan signed three pacts in areas of tourism, culture and cooperation
between foreign offices of the two countries. The decision to fast-track
implementation of the contract for the supply of 2,000 metric tonnes uranium to
India, enhancing counter-terror cooperation and consultations on shaping a
stable and inclusive Afghanistan were among key themes of PM Modi’s
discussions in Uzbekistan. In Kazakhstan, PM Modi witnessed the drilling of
the first oil well in the Satpayev block, in which ONGC has 25 per cent stake.
The two countries also signed a pact for renewal of long term supply of natural
uranium to India and agreed to explore the transportation of oil and gas
through pipeline or LNG from Kazakhstan to India. The “Tej Kadam,” joint
statement outlines the template for developing India-Kazakhstan relations as
the two sides signed five agreements, including a pact on enhancing defence and
military-technical cooperation.
Another
major development, which is going to shape the energy landscape of the region,
is the decision to operationalise the Turkmenistan-Afghanistan-Pakistan-India
(TAPI) gas pipeline, the groundbreaking ceremony of which was witnessed by the
Vice President during his visit in December. India and Turkmenistan firmed up a
template for long-term energy partnership, with ONGC Videsh Ltd opening its
office in Turkmenistan and the two countries signing a MoU between the State
Concern “Turkmenhimiya” and Indian PSU Rashtriya Chemicals and Fertilizers
Limited, to provide a framework for long-term sourcing of urea from
Turkmenistan. The signing of the Defence Cooperation Agreement is expected to
boost counter-terror cooperation. With Kyrgyzstan also, the key takeaway was
the signing of the defence cooperation agreement, which envisages intensifying
joint military exercises, exchange of military instructors and observers,
military education and training. During PM Modi’s visit to
Tajikistan, India’s core strengths in training and capacity building
were lauded as India offered to set up computer labs in 37 schools in
Tajikistan. The two sides also firmed up a 7-step framework for enhancing
cooperation in agriculture.
Latin America and Caribbean: Revitalising Ties
A
series of two-way visits and initiatives for the Latin America and Caribbean
(LAC) region built upon PM Modi’s visit to Brazil last year
Guyana’s
President Donald R. Ramotar, was chief guest at Pravasi Bhartiya Divas held in
Gandhinagar in Gujarat (January 7 -12) where he was conferred the Pravasi
Bharatiya Samman Award. Enhancing development cooperation, India announced
concessional credit of $10 million and grant assistance of $8 million. Suriname’s
Foreign Minister visited India (January 11-16), and the visit saw the
two sides discussing initiatives to upscale economic and developmental
cooperation.
Minister
of State for External Affairs, Gen. V.K Singh attended the India-SICA
Ministerial Meeting in Guatamela (May 28-29). In a major initiative, India
offered a Line of Credit of US $240 million to SICA countries (US $30 million
to each SICA country), in addition to enhancing ITEC slots.
During Uruguay’s Foreign Affairs Minister’s India
visit (October 6-11) the two sides decided to give a fresh impetus to the
Preferential Trade Agreement between India and MERCOSUR to boost trade and
services. India plans set up a Centre for Excellence and Information
Technologies in Uruguay.
Brazil’s
Foreign Minister’s visit (November 17-20) also gave fresh impetus to the
important relationship. FM-EAM talks bolstered strategic coordination between
the two countries on a host of issues, including UNSC reform, terrorism and
cyber security. Free Trade Agreement (FTA) between MERCOSUL and India, and
talks on resuming the trilateral talks amongst MERCOSUL, India and SACU were
explored. This agreement could visibly transform India’s economic
relations with not just Brazil but the entire region. Discussions on initiating
civil nuclear cooperation were also significant.
PM Modi met with
the Presidents of Mexico and St. Lucia on the sidelines of the UNGA in
September. Based on discussions, India and Mexico (an influential player in
CELAC), can be expected to expand their economic and energy partnership. Discussions
on UNSC reform and India’s membership in global export regimes, including NSG,
were significant. St. Lucia thanked PM for giving importance to small countries
and their voices.
Multilateral Relations
India’s global stature was on the ascent in 2015, with the
last twelve months witnessing the country’s robust engagement in the world’s
leading multilateral fora, including UNGA, G20, BRICS, SCO, ASEAN and EAS.
UNGA
The
70th session of the UNGA was special in many ways as we joined in
the 70th anniversary celebrations of the world body and robustly
backed the adoption of the Sustainable Development Goals (SDGs) at the SDG
summit. Supporting the adoption of Agenda 2030, PM Modi outlined steps taken by
India in reducing poverty and proactively joining the world in promoting green
development. Fast-tracking reform and expansion of the UNSC was the
cross-cutting theme of PM Modi’s address at different events related to the UNGA,
including the summit of leaders of G4 countries.
Sustainable
development, promotion of renewable energy and climate justice were other
refrains in PM’s interventions. In a separate address to the UN
Peacekeeping Summit on September 28 in New York, PM Modi pitched for a greater
role for troop-contributing countries in the decision-making process related to
peacekeeping operations and unveiled new contributions by India. These include,
among other things, additional battalions of up to 850 troops in existing or
new operations, additional three Police units with higher representation of
female peacekeepers, and additional training for peacekeepers at facilities in
India and in the field.
Making
an eloquent case for making the UNSC more credible and representative by
including aspiring members, to address the challenges of the 21st
century, EAM’s address at the UN also underlined the need for achieving the
Security Council reform “within a fixed time frame.”
BRICS
The
BRICS summit in July saw the operationalisation of two key India-backed
initiatives, including the New Development Bank (NDB) and $100 billion
Contingent Reserve Agreement (CRA), which reinforced the collective BRICS
commitment to reconfiguring the global financial architecture. The NDB, with an
initial start-up capital of $50 billion, and a veteran Indian banker as its
first President, is expected to approve its inaugural investment project in
2016, and is a game-changer in bolstering infrastructure development in the
global South.
PM
Modi made a robust pitch for fast-tracking IMF quota reforms to enable a larger
say for developing and emerging economies in top global financial institutions
of governance, imparting a push to the ongoing project of recasting the global
financial system. We also backed the intra-BRICS strategic economic partnership
which will upscale trade and investment among emerging economies, and
positioned them as the future hub of economic growth. India made valuable
contributions by making a compelling case for enhancing civil society
interaction among BRICS countries as PM Modi unveiled 10 proposals for
bolstering the BRICS, which includes, among others, the holding of an annual
BRICS trade fair, the setting up of a Railway Research Centre, cooperation
among supreme audit institutions, a BRICS digital initiative, the BRICS
Agricultural Research Centre, a BRICS Sports Council, and an annual BRICS
Sports Meet. PM Modi also forcefully advocated urgent reform and expansion of
the UNSC, with a permanent seat for India in the reformed body.
SCO
India’s elevation from an observer to a full-member at the
SCO summit in Ufa on July 10 was a milestone that will provide more ballast to
its Connect Central Asia policy and promote an integrated and connected Eurasia
to become one the most dynamic regions in the world. India offered support for buttressing physical and
digital connectivity and backed the International North South Transport
Corridor. India also focused on enhancing security cooperation to combat
terrorism and the SCO’s key role in stabilisation process in Afghanistan.
G20
The Prime Minister’s participation in the G20 summit in Turkey was marked by important
contributions to shape the G20 agenda for restoring global economic growth and
creating an inclusive global financial architecture. India backed the G20’s
outcome on developing ambitious country-specific investment strategies, and its
proposals for alternative financing structures, such as asset-based financing,
and simple and transparent securitization. The PM underlined that his
government has zero tolerance for both corruption and black money. In the
aftermath of the Paris terror attacks, PM also laid out a 10 point plan to
combat terrorism, underscoring the need to deepen cooperation against terrorism
financing, including through targeted financial sanctions and more effective
counter-terrorism financing tools, while calling for countries to join hands to
isolate states that support and sponsor terrorism.
COP21
At COP 21 in Paris, India played a key role in the
final Agreement ensuring that its own concerns, as well as those of other developing
countries, were suitably addressed. The Agreement recognized the principle of
Common but Differentiated Responsibilities, expanding the term to include ‘in
the light of different national circumstances.’ It has also specific
provisions on climate finance and mitigation actions that indicate developed
country obligations, although much work remains to be done.
Speaking at the Plenary, PM expounded on India’s
ambitious INDCs which include reducing emissions intensity per unit GDP by
33-35% per cent of 2005 levels by 2030, and ensuring that 40 % of our installed
capacity for electricity would be from non- fossil fuels. PM underlined the
needs of the developing world, of lifting billions of people into
prosperity, which would require advanced countries leaving enough carbon space
– the need for climate justice. The PM also launched the International Solar
Alliance, co-chaired by India and France, to promote greater use of solar
energy. All countries lying between the Tropics of Cancer and Capricorn are eligible
to be members of the ISA. India would be hosting the initiative in the National
Institute of Solar Energy and announced US $30 million for the secretariat
infrastructure.
Diaspora & Consular, Passport Services
The
25-million strong NRI and PIO populations abroad have become a brain trust and
bridge-builders between the mother country and their adopted homelands. With
their potential role in the unfolding of a national renaissance, diaspora
outreach has become the signature diplomatic style of PM Modi and the Indian
government’s unstinting commitment to their welfare.
The
diplomatic calendar in 2015 fittingly began with the holding of the 13th
Pravasi Bhartiya Diwas in Gandhinagar, which was attended by over 4,000
delegates. This year, it was a special moment as it coincided with the 100th
anniversary of the return of Mahatma Gandhi, the exemplar NRI, from South
Africa to India. The celebration of the Indian community abroad that was staged
with pomp and panache last year at MSG in New York acquired more colour and
vibrancy this year, with PM Modi addressing rapturous crowds across
hemispheres, including Paris, Berlin, Toronto, London, San Francisco, Dubai,
Kuala Lumpur and Singapore. In all these places, PM Modi feted their successes
in their adopted countries and encouraged them to contribute to ongoing
programmes for national resurgence, including ‘Swachh Bharat’, ‘Make in India’, Skill India and ‘Clean
Ganga’. To make it easier for diaspora to visit India and feel more connected,
PM announced the merging of NRI/ OCI status, lifelong visas to OCIs, and doing
away with police registration upon their visits to India. The government eased
diaspora investment in India for funding flagship schemes of the government,
the Swachh Bharat Kosh and Clean Ganga Fund. The pilot launch in 5 GCC countries of MADAD - an online
grievance monitoring system for the diaspora which allows for time bound
redressal, tracking monitoring and feedback on issues – also elicited a huge
response.
To
facilitate engagement with the diaspora, and to assist business, educational
and tourist travelers, the Government has taken a slew of initiatives to
simplify and improve passport, visa and consular services. The passport
services became the embodiment of service excellence, having achieved the
unique distinction of becoming the only Mission Mode Project to receive three
ISO certifications (9001:2008, 20000: 2011, 27001: 2013) together. The facts
tell their own story. A strategic reserve of 1 crore passport booklets has been
created to ensure that shortage of booklets never becomes a constraint on
timely issue of passports. More than 10,00,000 passport-related applications
were processed and over 1,00,000 Common Service Centres across the country
co-opted for filing passport applications online. The average passport issuance
time (excluding police verification process) has been brought down to under 21
days for 96% of the applications. The government expedited operationalisation
of new Passport Seva Kendras (PSK) in the north-eastern states of India—
Meghalaya, Manipur, Mizoram and Sikkim besides the one already functional in
Assam. PSKs in the remaining north-eastern states viz. Arunachal Pradesh,
Nagaland and Tripura will be set up in the coming months. EAM issued special
instructions to all Indian Missions abroad to scale up quality and speed in
delivering consular, passport and visa services. Several visa outsourcing
contracts were finalised to better utilise the limited manpower resources of
Missions.
Finally,
one of the most pressing concerns of the Government in the last twelve months
has been to ensure the safety and security of Indians entangled in conflict
situations abroad. India evacuated not just its own citizens from conflict
situations in Syria and Libya but also those of many other neighbouring and
other countries. Operation Rahat in Yemen was a major operation, involving
chartered flights and ships, with the Indian Navy and Air Force pitching in to
rescue 4741 Indians and 1947 foreigners stranded in the war zone. Underlining
the government’s undying commitment to aiding Indians abroad in distress, all
these operations entailed wide-ranging coordination between different civilian
and military agencies, under the direct leadership of EAM and Minister of State
in MEA.
Conclusion
As
we come to the close of 2015, we take special pride in India’s ascending
diplomatic graph, with the world looking at India as a source of hope and
renewal to address a host of cross-cutting challenges. Our relations with
countries of the neighbourhood and with major power centres have been
consolidated and we have been successfully able to remap our ties with the
emerging regions of the world, including Africa, Central Asia and West Asia.
With such robust multi-layered achievements in 2015 and India’s global role
becoming more evident in every multilateral fora, India’s foreign policy and
diplomacy are set to cross new milestones and open new vistas for the nation.
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