A Year of Smart Diplomacy: Milestones 2015
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, Indiacontinued 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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