Soft Copy-Part-III-UAI S Study Material 2014

PART-III-CONTENTS UAIs STUDY MATERIAL 2014
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CONTENTS PART-III-2014

I. NATIONAL CURRENT EVENTS

1. Role of Governors---3

2. Jammu & Kashmir---9

3. North-East---19

4. Assam---27

II. INDIAN ECONOMY

1. State of Indian Economy---39

2. Budget Terminology---44

3. Union Budget 2014-15---47

4. Railway Budget 2014-15---65

5. India Ratified IAEA Additional Protocol---72

III. WORLD ECONOMY

1. W.T.O. (Update)---75

IV. DEFENCE- NATIONAL

1. The Naxalite Problem---76

2. Defence Modernisation & Maritime Security---85

3. FDI in Defence---88

V. FOREIGN POLICY

1. Direction of Indias Foreign Policy---90

2. Indo-Bhutan Relations---95

3. Indo-Bangladesh Relations---106

4. Indo-Russian Relations (Update)---119

5. India-China Relations (Update)---121

6. Indo-French Relations---130

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7. Indo-Britain Relations---140

VI. INTERNATIONAL CURRENT EVENTS

INDIAS NEIGHBOURS

1. Pakistan (Update)---147

ASIA

2. Afghanistan---150

3. Indo-Afghan Relations---170

4. Iraq Crisis---183

5. Syria (Update)---204

6. Japan (Update)---208

EUROPE

7. Ukraine Crisis (Update)---211

VII. INTERNATIONAL ORGANISATIONS

1. BRICS (Update)---218

VIII. SCIENCE & TECHNOLOGY

1. Indias Space Programme (Update)---223

2. MACE Telescope---226

IX. ENVIRONMENT

1. Cleaning the Ganga---227

2. El-Nino & Delayed Monsoon---232

3. Large Dams---236

4. Narmada Dam---239

X. SPORTS

1. Cricket IPL Scandal---248

2. FIFA World Cup---256

XI. PERSONALITIES---257
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I. NATIONAL CURRENT EVENTS
1. ROLE OF GOVERNOR

I. Introduction:

1. Constitutional Head of the State: The Governor is the Constitutional Head of the State
and is seen as a neutral person. But the office of the Governor has been a controversial one
since the beginning.

2. Appointment of the Governor - Article 156 (1): The Governor is appointed by the
President of India and holds office during the pleasure of the President (Article 156 (1)). His
tenure of office is five years but he could be removed anytime by the President.

3. Empowered to Safeguard the Constitution: The Governor occupies in his State the
position parallel to that of the President. Apart from the largely ceremonial function, the
Governor is also empowered to safeguard the Constitution.

4. Governor has Powers to Appoint a Chief Minister: Article 164 (4) gives the Governor of a
State unfettered powers to appoint any person as a Minister/Chief Minister.

II. Controversy over the Role of Governor:

1. Absence of Safeguards in the Constitution for Guaranteeing the Independence of the
Governor: Legal experts point out that the systematic failures thrown up by some of the
controversies with regard to the Governors role could be attributed to the absence of
safeguards in the Constitution for guaranteeing the independence of the Governor. At the
same time, the Constitution confers on the Governor vast and unbridled powers.

2. Silences in the Constitution Exploited for Political Ends: Legal experts point out that
democratic institutions in the country have at times exploited the silences of the Constitution
for their own political ends. Article 164 of the Constitution merely declares that the Chief
Minister shall be appointed by the Governor. It is silent on the considerations that go into the
selection and appointment of a Chief Minister and the procedure to be followed in making the
choice.

III. Debate on the Appointment and Removal of the Governors:

A. Appointment of Governors:

1. No Qualitative Criteria for the Appointment of the Governor:

Article 157 of the Constitution merely lays down two basic qualifications: Indian
citizenship and a minimum age of 35 years.

Article 157 of the Constitution prescribes that the Governor shall not hold office
of profit and shall not be a member of the Parliament or a State Legislature.

Analysts point out that no qualitative criteria for appointment of the Governor have
been laid down by the Constitution nor have they evolved in practice over the
years.

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2. Recommendation of the Sarkaria Commission on the Appointment of the Governor:

The Sarkaria Commission appointed in 1983 to examine the whole gamut of
Centre-State relations declared that the Governor should be a detached figure,
someone who has not taken too great a part in politics generally and particularly in the
recent past.

Recommended that the Vice-President of India and the Speaker of Lok Sabha
should be consulted by the Prime Minister in selecting a Governor.

Recommended a Constitutional Amendment to make such a consultation
mandatory.

3. Consensus on the Criteria for Appointment of Governor:

There is a general consensus that a very senior eminent person, belonging to an
outside State should be appointed as Governor for a fixed term of five years.

Should not have been involved in active politics in the recent past.

Should not belong to the ruling party at the Centre.

Appointment after prior consultation and approval of a committee comprising of
the Prime Minister, the Speaker of Lok Sabha, the Chairperson of the Rajya
Sabha and the Chief Minister of the concerned State.

A Constitutional Amendment must be made to make such consultation
mandatory.

No further appointment in the Government.

Provisions for post-retirement benefits.

B. Removal of a Governor:

Procedure for the Removal of Governors Must be Evolved to Ensure that
Appointment or Removal is Not Based on Political Considerations: Experts
suggest that a procedure for the removal of a Governor must be evolved to ensure that
political considerations do not preclude the requirements of impartiality during the
process of appointment and removal of a Governor.

Governors should be Removed only through a Process of Impeachment: Legal
experts opine that the Governors should be removed only for misconduct and through a
process of impeachment or through an independent judicial body.

Security of Tenure Should be Provided to the Governor: Legal experts argue that
the Governor should be given full protection to hold office for five years. There should
be a Constitutional amendment to provide security of tenure.

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IV. Debate on the Need to Have Governors:

A. Arguments in Favour of Having Governors:

Can be Used as a Tool for Monitoring and Fixing State Policy: The office of the
Governor when used efficiently can be a tool for monitoring and fixing state policy.

The Governor has Legal Authority and Legislative Oversight to Play a Key Role:
The Governor being the Executive Head of the State has legal authority and legislative
oversight. He is called upon to act in case of a legislative deadlock or if the elections
result in a hung Assembly.

Crucial Role in the Era of Coalitions: In an era of coalitions the role of the Governor is
very crucial and must be exercised in an independent and impartial manner.

The Executive Needs a Head when the State Machinery Breaks Down: Experts feel
that the Executive needs a Head all the time especially when the State machinery
breaks down in the absence of a Chief Minister.

Governor can Function as an Ombudsman and a Guide: The Governor has the
authority to function as an ombudsman and a guide if he/she acts with dignity and
responsibility that the Constitution bestows on the office of the Governor.

B. Arguments Against Having Governors:

Misuse of the Office by the Political Class: The political class will continue to misuse
the office of the Governor to accommodate disgruntled politicians.

Puppet of the Centre: The Governor will always be the puppet of the Centre with
Article 356 empowering the Centre to dismiss State Governments.

Not Having Governors will Save Substantial Expenditure: Critics argue that not
having a Governor will save the state substantial expenditure and free prime real estate
for better uses.

Role of Governor can be Executed by the Chief Justice of High Court: The
Constitutional role envisaged for a Governor can be executed by the Chief Justice of the
High Court, according to critics.

Governors with Political Affiliations will not Play an Independent Role: It is also
pointed out that Governors with political affiliations will not play an independent role in
the event of a constitutional breakdown.

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V. Supreme Court Judgement on the Removal of Governors (May 07, 2010):

On May 07, 2010, the Supreme Court held that the Governor cannot be removed on
the ground that he/she was out of sync with the policies and ideologies of the
Union Government or the party in power at the Centre.

The Governor cannot be removed on the ground that the Union Government had
lost confidence in him/her.

The Supreme Court Bench headed by the Chief Justice K.G. Balakrishnan was
disposing a writ petition filed as a public interest litigation in the wake of the removal
of the Governors of Uttar Pradesh, Gujarat, Haryana and Goa on July02, 2004, by then
President of India on the advice of the Union Council of Ministers.

The Governor was neither an employee nor an agent of the Union Government
who can be arbitrarily removed by the Centre during change of party in power.

A change in Government at the Centre was not a ground for removal of
Governors to make way for others favoured by the new Government.

What Article 156 (1) of the Constitution dispenses with is the need to assign
reasons or the need to give notice, but the need to act fairly and reasonably cannot
be dispensed with by Article 156 (1).

The President, in exercising power under Article 156 (1), should act in a manner
that is not arbitrary or unreasonable. In the event of challenge of withdrawal of the
pleasure, the court would necessarily assume that it was for compelling reasons.
Consequently, where the aggrieved person is not able to establish a prima facie
instance of arbitrariness or mala fides in his removal, the court would refuse to interfere.

Where a case a prima facie case of arbitrariness or mala fides was made out, the
Court could require the Union Government to produce records/material to satisfy
itself that the withdrawal of pleasure was for good and compelling reasons.

VI. Conclusion:

1. The Flaw in Selection can be Rectified by Appointing Governors by a Non-Partisan
Committee:

Replacement of Governors, Either through Forced Resignation or Dismissal, is
Integrally Linked to the Process of Appointment: Successive Governments at the
Centre have appointed partisan political Governors. Analysts feel that the issue of
replacement of Governors, either through forced resignation or dismissal, is integrally
linked to the process of appointment.

To rectify the flawed selection, Governors need to be appointed by a
non-partisan and independent appointing committee, according to legal experts.

2. Criteria for Appointment and Removal of Governors Should be Clearly Laid Down:
Analysts opine that in the current situation there is an imperative need to clearly lay down the
criteria for the appointment and removal of Governors giving equal powers to the State so as to
prevent the abuse of power by the Centre.

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SUMMARY
I. Introduction:
1. Constitutional Head of the State
2. Appointment of the Governor: President of India (Article 156 (1))
3. Empowered to Safeguard the Constitution
4. Powers to Appoint a Chief Minister: Article 164 (4)

II. Controversy over the Role of Governor:
Absence of Safeguards in the Constitution for Guaranteeing the Independence of the Governor
Silences in the Constitution Exploited for Political Ends

III. Debate on the Appointment and Removal of the Governors:

A. Appointment of Governors:
1. No Qualitative Criteria for the Appointment of the Governor:
Article 157 of the Constitution merely lays down two basic qualifications: Indian citizenship and a
minimum age of 35 years.
Article 157 of the Constitution prescribes that the Governor shall not hold office of profit and shall not be a
member of the Parliament or a State Legislature.
No qualitative criteria for appointment of the Governor have been laid down by the Constitution nor have
they evolved in practice over the years.
2. Recommendation of the Sarkaria Commission on the Appointment of the Governor:
The Sarkaria Commission appointed in 1983 to examine the whole gamut of Centre-State relations
declared that the Governor should be a detached figure
Recommended that the Vice-President of India and the Speaker of Lok Sabha should be consulted by the
Prime Minister in selecting a Governor.
Recommended a Constitutional Amendment to make such a consultation mandatory.
3. Consensus on the Criteria for Appointment of Governor:
There is a general consensus that a very senior eminent person, belonging to an outside State should be
appointed as Governor for a fixed term of five years.
Should not have been involved in active politics in the recent past.
Should not belong to the ruling party at the Centre.
Appointment after prior consultation and approval of a committee comprising of the Prime Minister, the
Speaker of Lok Sabha, the Chairperson of the Rajya Sabha and the Chief Minister of the concerned
State.
A Constitutional Amendment must be made to make such consultation mandatory.
No further appointment in the Government.
Provisions for post-retirement benefits.

B. Removal of a Governor:
Procedure for the Removal of Governors Must be Evolved to Ensure that Appointment or Removal is Not
Based on Political Considerations
Governors should be Removed only through a Process of Impeachment
Security of Tenure Should be Provided to the Governor

IV. Debate on the Need to Have Governors:
A. Arguments in Favour of Having Governors:
Can be Used as a Tool for Monitoring and Fixing State Policy
The Governor has Legal Authority and Legislative Oversight to Play a Key Role
Crucial Role in the Era of Coalitions
The Executive Needs a Head when the State Machinery Breaks Down
Governor can Function as an Ombudsman and a Guide
B. Arguments Against Having Governors:
Misuse of the Office by the Political Class
Puppet of the Centre
Not Having Governors will Save Substantial Expenditure
Role of Governor can be Executed by the Chief Justice of High Court
Governors with Political Affiliations will not Play an Independent Role

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V. Supreme Court Judgement on the Removal of Governors (May 07, 2010):
The Governor cannot be removed on the ground that he/she was out of sync with the policies and
ideologies of the Union Government or the party in power at the Centre.
The Governor cannot be removed on the ground that the Union Government had lost confidence in
him/her.
The Supreme Court Bench headed by the Chief Justice K.G. Balakrishnan was disposing a writ petition
The Governor was neither an employee nor an agent of the Union Government who can be arbitrarily
removed by the Centre during change of party in power.
A change in Government at the Centre was not a ground for removal of Governors to make way for others
favoured by the new Government.
What Article 156 (1) of the Constitution dispenses with is the need to assign reasons or the need to give
notice
The President, in exercising power under Article 156 (1), should act in a manner that is not arbitrary or
unreasonable
Where a case a prima facie case of arbitrariness or mala fides was made out, the Court could require the
Union Government to produce records/material to satisfy itself

VI. Conclusion:
1. The Flaw in Selection can be Rectified by Appointing Governors by a Non-Partisan Committee:
Replacement of Governors, Either through Forced Resignation or Dismissal, is Integrally Linked to the
Process of Appointment
To rectify the flawed selection, Governors need to be appointed by a non-partisan and independent
appointing committee
2. Criteria for Appointment and Removal of Governors Should be Clearly Laid Down

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i.2. JAMMU & KASHMIR

I. Background:

1. Oct 22, 1947: Northern tribals along with Pakistani irregulars invaded Kashmir. Maharaja Hari Singh sought
Indias help and signed the instrument of Accession.

2. 1948: Indias Prime Minister, Mr. Jawaharlal Nehru, took the Kashmir issue and Pakistans intrusion to the UN
Security Council. Regular Pakistani soldiers entered Kashmir. The UN issued a resolution calling for a cease-fire,
withdrawal of Pakistani forces from the occupied territory, a cut in the Indian forces in Kashmir and the holding of
Plebiscite.

3. 1949: Cease-fire came into effect but Pakistan did not withdraw its troops from POK (Pakistan Occupied
Kashmir).

4. 1951-54: The Indian Constituent Assembly agreed to link Kashmir to the Indian Union through Article 370 of the
Indian Constitution. Kashmirs Constituent Assembly approved the Article and then dissolved itself.

5. 1965-66: Pakistan attacked India on September 3, 1965, and a 22-day war broke out. The Soviet Union
brokered a cease-fire and the Tashkent Agreement was signed.

6. 1972: The Simla Agreement was signed between India and Pakistan. The Agreement calls to restraint the use
of force and to resolve all outstanding issues bilaterally including the dispute over Kashmir.

7. 1987: There was widespread alienation after the alleged rigging of the elections.

8. 1989: Insurgency escalated in the Kashmir valley.

9. 1990-91: Presidents Rule was imposed in the Kashmir valley. The exodus of Kashmiri Pundits from the valley
started. In a spate of terrorist violence, thousands of people have died so far, and 300,000 people have been
driven out of their homes. Pakistan has been actively involved in this carnage of violence.

10. 1999: The Kargil conflict. Indian and Pakistan troops fight a 50-day war. India successfully drives out
infiltrators from the area.

11. 2002: In order to stop cross-border terrorism, India mobilises the Armed Forces on the border with Pakistan.

12. ARTICLE 370:

a. 1950: The Indian Constitution came into effect embodying the constitutions of all States. Jammu and Kashmir
is linked to the Indian Union through Article 370 which is incorporated as transitional and provisional. Article 370
limits the power of Parliament to make laws for Jammu and Kashmir and the State is left free to handle all aspects
except defence, foreign affairs and communications.

b. Four Main Features of Article 370: According to experts, Article 370 has the following four main features:
The Unions legislative power extends to all matters on the instrument of Accession in consultation with the J
& K Government.
The concurrence of the J & K Government is required to apply or extend Union laws beyond, the Instrument of
Accession.
The concurrence of the J & K Government is also required to apply or extend any parts of the Indian
Constitution to J & K.
J & K was entitled to, and drafted, its own constitution in 1957.

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c. 1952: Sheikh Abdullah signed the Delhi Agreement with Prime Minister Jawaharlal Nehru under which Article
370 is formally accepted.

d. 1954: Sheikh Abdullah was removed from power and imprisoned after he expressed doubts about acceding to
India.

e. 1954: Under Bakshi Ghulam Mohammed, the Kashmir Assembly ratified the legality of the States accession to
India.

f. 1954: The jurisdiction of the Indian Government is extended to all subjects on the Union List. Custom barriers
between India and Kashmir are removed and central excise, civil aviation and posts and telegraph extended.

g. 1964-66: Article 356 and 357 are extended to Jammu and Kashmir, whereby the Centre can declare
Presidents Rule. Provisions of the Constitution relating to the direct election of the representatives to the Lok
Sabha are applied, whereby Members of Parliament from Kashmir would be directly elected by the people instead
of the Kashmir Legislative Assembly.

h. 1975: Mrs. Indira Gandhi and Sheikh Abdullah sign an Accord with an understanding that Article 370 would be
restored to its pre-1953 status. It was also agreed that the powers of the State Governor, which till then could be
changed only by the State Assembly would come under the purview of the President.

13. 1975 Accord:

The highlights of the Accord signed between Prime Minister Indira Gandhi and Sheikh Abdullah on
February 24, 1975, are as follows:
Jammu and Kashmir in its relations with the Union of India continue to be governed by Article 370.
The residuary powers of legislation will continue to be with the State; however, Parliament will continue to
have powers to make laws relating to the prevention of activities relating to disclaiming, questioning or
disrupting the sovereignty and territorial integrity of India, secessionist activity, insult to the Constitution or the
national flag.
Where any provision of the Constitution of India has been applied to the State, with adaptions and
modifications such be altered or repealed by an order of the President under Article 370, but provisions of the
Constitution of India already applied to the State of J & K without adaptation or modification are unalterable.
The State of J & K can have its own legislation on many matters.

14. Autonomy Resolution Passed by the J & K Assembly:

a. Acceptance of the State Autonomy Committee Report: On June 26, 2000, the Jammu and Kashmir State
Legislative Assembly adopted by voice vote a resolution accepting the State Autonomy Committee (SAC) report,
recommending greater autonomy to the State.

b. Plea to the Centre to Implement the Report: This House having discussed the report of the SAC, tabled on
April 13, 1999, records its approval of the same and its acceptance of the recommendations made and demands
that the Centre and the Government of Jammu and Kashmir take positive steps for implementing the same,
according to the resolution.

15. Central Governments Response:
Rejection of the Autonomy Resolution
Union Government Committed to Federal Harmony
Devolution Powers to States
Recommendations of the SAC will Reverse the Application of Constitutional Provisions to the State
1975 Accord Between Centre and State Affirms that Provisions of the Constitution of India are Unaltered

16. Reasons for Indias Rejection of Pakistans Claims on Kashmir:

UN Proposal Nullified: In 1948, the UN Commission for India and Pakistan (UNCIP) had made it
conditional that the plebiscite will not be binding on India as long as Pakistani troops continue to occupy
part of Kashmir. Pakistan has not fulfilled the condition and hence the proposal is nullified.

UN Resolution Unimplementable: The UN mediator Gunar Jarring in his 1957 report emphasised that if
UN resolutions were not immediately implemented, ground realities tended to change rapidly rendering
such resolutions unimplementable.
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Shimla Accord Overrides UN Resolution: The Simla Accord of 1972 specifies that both the countries
should resolve the Kashmir dispute bilaterally. India views this as automatically overriding the UN
resolution on Kashmir.

Kashmir is Not the Core Issue: Finally, analysts feel that the Kashmir issue is not the core issue as
claimed by Pakistan. It is a symptom of a deeper issue- the two-nation theory proclaimed by Pakistan.
Even under the two-nation theory, India with a larger Muslim population has a better claim to Kashmir.
Therefore, India can question the credentials of Pakistan to raise the Kashmir issue.

17. Militancy in the State:

a. Shadow of Militancy Since 1989: The Kashmir valley has been under the shadow of militancy since 1989.
The militants are divided into those who want the State to join Pakistan and those who want to be independent.
There is large-scale infiltration of foreign mercenaries from across the border.

b. ISI Running Proxy War: Pakistans Inter-Services Intelligence (ISI) spends about Rs.60 to 80 crores every
year for running proxy war in Jammu and Kashmir, according to reports.

c. Foreign Mercenaries: Besides youths from Jammu and Kashmir and POK, a large number of heavily armed
foreign mercenaries are also operating in the State, attacking military and civil targets.

d. Major Militant Groups:

Jammu and Kashmir Liberation Front (JKLF): Pro-independence Kashmiri group. It was set up in the
1960s by Maqbool Butt and Amanullah Khan and revived in the late 1980s. It is no more an active militant
outfit but is politically relevant.

Hizb-ul-Mujahideen: Pro-Pakistani outfit. It was formed in 1989 and is regarded as the strongest militant
group. It nurtures political ambitions. Syed Salahuddin is its chief.

Al-Umar-Mujahideen: Deadly group of downtown Srinagar. It was founded in 1990 and is headed by
Mushtaq Zargar. It is politically not in the reckoning and is struggling to gain prominence among militants
of various hues.

Harkat-ul-Mujahideen: Pan-Islamic group formed in 1993, known as Harkat-ul-Ansar and Al-Faran.
Very active and ruthless.

Lashkar-e-Taiba: Pan-Islamic group formed in 1994. Operates from Pakistan. Introduced Fidayeen
(suicide squad) attacks. It is one of the strongest outfits which are backed by Pakistan.

Al-Badr: Pan-Islamic group, operates mostly in border areas. Formed in 1999. Dominated by foreigners,
operates under the direct control of Pakistans ISI.

Jaish-e-Mohammed: Fanatic Pan-Islamic group. Formed in January 2000 by Maulana Masood Azhar,
notorious for human bombs. Gets lavish patronage from ISI.

e. APHC: The All Party Hurriyat Conference is a conglomerate of Jamaat-i-Islami, Peoples Conference, JKLF
(Jammu and Kashmir Liberation Front) and many other groups that have been leading the secessionist
movement. The APHC boycotted the elections in the State.

18. Elections in Jammu & Kashmir - 2002: Free and fair elections were held in Jammu and Kashmir from
September 15 to end of October 2002. The result was a fractured verdict with the ruling National Conference
winning 28 seats, the Congress 20, the Peoples Democratic Party (PDP) 16, and independents 15 seats out of
the 87 Assembly seats for which elections were held.

19. November 2002 - Coalition Government:
On November 2, 2002, Mufti Mohammed Sayeed of the PDP was sworn in as the Chief Minister of
Jammu and Kashmir. Mr. Sayeed headed a coalition government of the PDP-Congress alliance. He was
the Chief Minister for three years.

On November 2, 2005, Senior Congress leader Ghulam Nabi Azad was sworn in the tenth Chief Minister
of Jammu and Kashmir.
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20. More Powers to Ladakh Hill Development Council:
On December 29, 2002, the Jammu and Kashmir Government announced devolution of powers to the
Ladakh Autonomous Hill Development Council (LAHDC) of Leh District. It was promised that Kargil would
also get a similar council by June 2003.
Broadly, the decision of the Government gives the LAHDC greater executive powers over the use and
management of land, better control over the staff at the higher echelons and enhanced sanctioning authority
over development works, apart from conferring of a higher status in the official hierarchy on the Executive
Councillors as also their Chief.
There has been a long pending demand for the empowerment of the LAHDC, which came into being in 1995.
Analysts feel that the J & K Government has taken a significant step towards addressing the much-neglected
regional autonomy concerns.

21. Significance of the Successful 2002 Elections in Jammu & Kashmir:
Vote for Indias Unity
Courageous and Patriot People of the State
People of the State have Rejected Terrorism and Want Peace
People have Rejected Secessionist Overtures and Want to Remain as Part of India
People of the State have Shown Faith in the Integrity of the Election Process
Primacy of Ballot Over the Bullet
Free and Fair Elections have Enhanced Indias Democratic Credentials Internationally
India has Regained Political Initiative in Kashmir

22. Factors Behind the Success of the Electoral Process - Overall Credit to Indias Institutions:
Analysts point out that it is to Indias credit that its institutions, its law enforcing agencies and its people - the
Centre and the Jammu and Kashmir Government, the Election Commission, security personnel and the
people of Jammu and Kashmir - refused to be demoralised by mockery and guns.
It is to Indias credit that it did not lose faith in popular sovereignty, even in the face of cross-border
terrorism.

23. The Role of the International Community in Kashmir:

a. Defusing Indo-Pak Tensions: Analysts point out that the international community is actively interested in
defusing Indo-Pak tensions and impelling them towards the negotiating table on the Kashmir issue.

b. Reasons Behind the International Communitys Concern:
Fears about an Indo-Pak military conflict spiralling into a nuclear confrontation.
The impact such a conflict will have on the long-term plans of the on-going campaign against
international terrorism by the US-led coalition.
The impact an Indo-Pak conflict will have on the stability of the Governments in India and Pakistan,
particularly Pakistan.

c. India Against Third Party Intervention in Kashmir: Since 1950s, India has insisted that it will not
countenance third-party intervention in resolving the Kashmir issue. Indias experience has been that third-party
mediation has not been even-handed, objective or even impartial.

24. Counter-Terrorism Strategy in Jammu and Kashmir:

a. Three Pronged Strategy - Blocking Infiltration Routes, Reviewing Troop Deployment along the LoC
and Installing Electronic Warfare System: As part of a three-pronged counter-terrorist strategy in Jammu and
Kashmir, India has started blocking infiltration routes preferred by militants, reviewing troop deployment along the
Line of Control (LoC) and installing an electronic warfare system to cut off communication between terrorists and
their mentors across the border.

b. Blocking the Infiltration Routes:
The Army has begun placing barbed wire inside the Indian territory, parallel to the LoC, on certain
stretches in the higher reaches known to be used by infiltrators.
A considerable part of the International Border in Rajasthan has already been fenced without much
opposition, as there is no dispute over it.
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c. Review of Troop Deployment:
The exhaustive review of troop deployment along the LoC is the second leg of the counter-terrorism
strategy in Jammu and Kashmir.

The focus would be on the second tier of defence which, unlike the first, keeps an eye on both
infiltration and exfiltration.

The review will also consider stepping up the supply of force multipliers such as night vision
devices and thermal imagers to detect body heat.

d. Installing Electronic Warfare Systems:
The third part of the counter-terrorism strategy is installing electronic warfare systems to nullify the ability
of Pakistan-based commanders of terrorist organisations to communicate with and pass instructions to
militants operating in India.

The Government is in the process of finalising an elaborate electronic system that would detect and
jam all transmissions from Pakistan to operatives in Jammu and Kashmir.

The electronic system will also be able to record most of the transmissions between terrorists
groups inside Indian territory, thereby considerably cutting down the reaction time of the
Security Forces.

25. Ceasefire Along the International Border and the LoC - 2003:

November 2003 - Ceasefire Came Into Being: The then Pakistan Prime Minister Mir Zafarullah Khan
Jamali called for a unilateral ceasefire on November 23, 2003. India responded positively to Pakistan's
offer and the ceasefire came into being on November 26, 2003.

Decline in Infiltration After the Ceasefire: Analysts point out that the infiltration from Pakistan declined
after the ceasefire. However, intelligence agencies point out that though there is a decline in infiltration
from across the border, it has not completely ended.

Firing by Pakistan Troops Across the LoC: In May 2008 Indian troops stationed along the Line of
Control (LoC) in Poonch came under intensive fire from the Pakistani side. An Indian jawan was killed in
the assault on Kranti Post, an Indian forward position near Salhotri village. The Indian Army launched a
protest with Pakistan against the firing on the Indian Post. The series of assaults by the Pakistani troops
could lead to the unravelling of the ceasefire.

26. Assembly Elections in Jammu & Kashmir (November-December 2008):

A. National Conference Forms Coalition Government with Congress

B. Omar Abdullah Sworn in the 11
th
Chief Minister of Jammu and Kashmir

C. Reasons behind the Successful Conduction of the Assembly Elections in J & K:
Less fear factor due to reduced militancy was the cause for the higher voter turnout
People wanted to participate in the democratic process in a big way
The 2008 Assembly elections in Jammu and Kashmir were conducted without any major incidents
The credit for the successful conduction of the elections goes to Indias exemplary Election Commission,
people of the State, Governor of the State N.N. Vohra, the Security Forces, National Security Advisor
M.K. Narayanan and the State Government officials
The successful conduction of the Assembly elections in Jammu and Kashmir enabled democracy to
triumph amidst difficult circumstances.

D. Significance of the Successful Assembly Elections in Jammu & Kashmir:
Vote for Democracy and National Integration
Large Voter Turnout Despite Boycott Call by Separatists a Demonstration of Peoples Faith in the
Credibility of the Electoral Process
Setback to Separatists
Successful Election Offers an Opportunity to take Advantage of the Transformative Moment
Diplomatic Significance - Successful Election Sends a Strong Message to the World that Democratic
Process is Thriving in Jammu and Kashmir

14

27. Armed Forces Special Powers Act (AFSPA):

The Armed Forces Special Powers Act (AFSPA) was approved by the Parliament on May 22, 1958
and was amended in 1972.

The AFSPA gives the security forces extraordinary powers and protection.

The Supreme Court upheld the Constitutionality of AFSPA in 1997 but directed the security
forces to strictly observe certain guidelines while exercising the special powers conferred on them by
the Act.

Defence analysts point out that the provisions of the AFSPA and the safeguards that accompany its
imposition are intended to prevent the possibility of any arbitrariness in the exercise of power
under the Act.

28. Arguments in Defence of AFSPA:

AFSPA the Cornerstone of the Armys Functioning in Terrorism-Hit Areas: The Army has
emphasised that the AFSPA was the cornerstone of its functioning in terrorism-hit areas. Fighting
low-intensity wars was near impossible without it.

Army Needs Special Legal Powers in Areas of its Operation: A concept paper on Management of
Internal Conflicts pointed out that the Army needed special legal protection and powers in the areas
where it operated. It was argued that it was imperative to use special legislation from the point of view of
morale as well as operational efficiency to protect the rights of soldiers. Thus, the imposition of the
AFSPA and the Disturbed Areas Act (DAA) where ever the Army is deployed in internal security
operations, should be axiomatic.

AFSPA is Essential in Areas where the Civil Forces have Failed to Contain a Situation: The Armys
argument in favour of AFSPA is self-evident as the very presence of it in an area, means that normal laws
and civilian forces have failed to contain a situation.

Terrorists and Insurgents Could be Emboldened by the Withdrawal of AFSPA: It is also argued that
withdrawal of AFSPA could embolden the insurgent and terrorist outfits, which are relatively subdued due
to the action taken by the security forces.

II. Current Situation in Jammu & Kashmir:

1. Return of Kashmiri Pandits to the Valley:

The President Pranab Mukherjee in his address to the Parliament in June 2014 said
that the Government would make efforts to ensure the return of Kashmiri Pandits
with full dignity, security and assured livelihood.

In June 2014, the State Government in Jammu and Kashmir proposed a Rs.5,800
crore Prime Ministers Reconstruction Programme aimed at incentivising
Kashmiri Pandits return to the Valley.

The Rehabilitation Package includes providing security and jobs for the
returning Pandits and repair of their houses that were burnt and destroyed and
repurchase of those they had disposed of in distress sales.

In June 2014, the Union Home Minister Rajnath Singh directed the Ministry to
take measures for the return of Kashmiri Pandits to the Valley by taking them
into confidence.

The NDA Government under Prime Minister Narendra Modi was also finalising a
Return and Rehabilitation Package for the Valleys displaced population after a
discussion with the stakeholders.
15

2. Defence Minister Arun Jaitleys Visit to Jammu & Kashmir (June 14-15,
2014):

Defence Minister Arun Jaitley visited Jammu and Kashmir on June 14-15, 2014.

Mr. Jaitley reviewed the Jammu and Kashmir security scenario with the State
Chief Minister Omar Abdullah, Governor N.N. Vohra, Army Chief General Bikram
Singh and other senior officials.

Special Security Review Meeting: The Defence Minister flew to the 15 Corps
headquarters to attend a review meeting on the infiltration of militants; ceasefire
violations; casualties suffered by the Indian Security Forces on the LoC and the
International Border; overall defence preparedness and the latest situation on the Line
of Actual Control (LAC) and the behaviour of Chinese troops in recent times.

Upgradation of Communication and Surveillance Infrastructure: The Defence
Minister was briefed by the officials about the need for upgradation of the
communication and surveillance infrastructure.

Centre Ready for a Dialogue with the Separatists Without Compromise on Indias
Constitution and Sovereignty: Mr. Jaitley said that the Centre was ready to engage
Kashmiri separatists in a dialogue process without any compromise on Indias
Constitution and sovereignty.

Return and Rehabilitation of Kashmiri Pandits High on the Agenda of the
Government: The Defence Minister emphasised that the return and rehabilitation of
the displaced Kashmiri Pandits was high on the agenda of the Government. He pointed
out that all political groups on the Valley support the idea of return and rehabilitation .

Al-Qaeda Video Calling for a Jihad Against India a Threat to Indian Security: The
Defence Minister said that the al-Qaedas Afghanistan unit had purportedly released a
video on social media calling for full-fledged jihad against India and the asking the
Kashmiris to prepare for a major combat offensive. Mr. Jaitley said that the video was a
threat to Indian security but was confident that Indias Security Forces would be in a
position to repulse any such attempt.

Ceasefire Violations by Pakistani Troops along the LoC Must Stop and that itself
would be a CBM: The Defence Minister said that the Army had maintained dominance
along the LoC and the ability of the Army to counter infiltration attempts by militants was
up to the mark. He emphasised that the ceasefire violations by the Pakistani troops
must stop. That itself would be a Confidence Building Measure (CBM) before any
country to proceed further, according to Mr. Jaitley.

Revoking AFSPA would depend on the Progress in the Situation in the State: The
Defence Minister said that revoking the Armed Forces Special Powers Act (AFSPA)
would depend on the progress in the situation in the State over a period of time.

16

3. Prime Minister Narendra Modis Visit to Jammu and Kashmir (July 04,
2014):

Development and Security the Focus of the Visit: Prime Minister Narendra Modi
visited Jammu and Kashmir on July 04, 2014. The agenda of the visit was focused on
development and security.

Prime Minister Inaugurated the Katra-Udhampur Railway Line and a 240 MW
Hydroelectric Power Plant at Uri: Prime Minister Narendra Modi inaugurated the
Katra-Udhampur railway line and a 240 MW hydroelectric power plant by the National
Hydroelectric Power Corporation in Uri.

Himalayan Model of Growth Wining the Hearts and Minds of the People of
Jammu and Kashmir through Development: The Prime Minister pitched for the
Himalayan model for growth. Mr. Modi stressed that he wished to win the hearts and
minds of the people of Jammu and Kashmir through development. He also stressed that
the journey begun by the former Prime Minister Atal Behari Vajpayee would be taken
ahead by the present Government.

Security Brief at the Armys 15 Corps Headquarters: The Prime Minister was given
a security brief at the headquarters of the Armys 15 Corps by the Vice-Chief of Army
and other senior officers, including the General Officer Commanding-in-chief of the
Northern Command and four Corps Commanders.

Prime Minister Addressed Indian Army Jawans at Badami Bagh Cantonment in
Srinagar: Prime Minister Narendra Modi addressed the Indian Army Jawans at the
Badami Bagh Cantonment in Srinagar. In his address, Mr. Modi emphasised on
indigenising weaponry.

Separatist Called for a Bandh During the Prime Ministers Visit: The separatist
All-Parties Hurriyat Conference (APC) issued a call of a bandh during the Prime
Ministers visit to Jammu and Kashmir. A joint statement of the APC said that the strike
was being called to demand a resumption of the peace process in Kashmir.

4. Significance of the Prime Ministers Visit to Jammu and Kashmir:

Prime Ministers First Visit to Jammu and Kashmir with Emphasis on Winning
the Hearts and Minds of the People through Development: Analysts point out that
Prime Minister Narendra Modis first visit to Jammu and Kashmir was significant as it
laid emphasis on winning the hearts and minds of the people of the State through
development.

Visit Conveyed a Clear Message of the Governments Dual Approach of No
Compromise on Security along with the Stress on Development: Analysts point
out that the Prime Ministers visit conveyed a clear message of the Governments dual
approach of no compromise on security along with the stress on development. The
inauguration of the railway line and hydel project and the security review meeting were
in line with this approach.

17

The States Opposition Leader Welcomed the Prime Ministers Comments on
Taking Forward Former Prime Minister Vajpayees Initiatives on Jammu &
Kashmir: The leader of the Opposition Peoples Democratic Party (PDP) Mehbooba
Mufti appreciated the Prime Ministers comments on taking forward former Prime
Minister Atal Behari Vajpayees initiatives on Jammu and Kashmir. She welcomed the
Prime Ministers visit to Jammu and Kashmir while pointing out that there were many
takers in the State for Mr. Vajpayees thinking.

SUMMARY

I. Current Situation in Jammu & Kashmir:

1. Return of Kashmiri Pandits to the Valley:

Government would make efforts to ensure the return of Kashmiri Pandits with full dignity,
security and assured livelihood.

In June 2014, the State Government in Jammu and Kashmir proposed a Rs.5,800 crore Prime
Ministers Reconstruction Programme aimed at incentivising Kashmiri Pandits return to the
Valley.

The Rehabilitation Package includes providing security and jobs for the returning Pandits and
repair of their houses that were burnt and destroyed and repurchase of those they had disposed
of in distress sales.

In June 2014, the Union Home Minister Rajnath Singh directed the Ministry to take measures for
the return of Kashmiri Pandits to the Valley by taking them into confidence.

The NDA Government under Prime Minister Narendra Modi was also finalising a Return and
Rehabilitation Package for the Valleys displaced population after a discussion with the
stakeholders.

2. Defence Minister Arun Jaitleys Visit to Jammu & Kashmir (June 14-15, 2014):

Mr. Jaitley reviewed the Jammu and Kashmir security scenario with the State Chief Minister
Omar Abdullah, Governor N.N. Vohra, Army Chief General Bikram Singh and other senior
officials.

Special Security Review Meeting

Upgradation of Communication and Surveillance Infrastructure

Centre Ready for a Dialogue with the Separatists Without Compromise on Indias Constitution
and Sovereignty

Return and Rehabilitation of Kashmiri Pandits High on the Agenda of the Government

Al-Qaeda Video Calling for a Jihad Against India a Threat to Indian Security

Ceasefire Violations by Pakistani Troops along the LoC Must Stop and that itself would be a CBM

Revoking AFSPA would depend on the Progress in the Situation in the State

18

3. Prime Minister Narendra Modis Visit to Jammu and Kashmir (July 04, 2014):

Development and Security the Focus of the Visit

Prime Minister Inaugurated the Katra-Udhampur Railway Line and a 240 MW Hydroelectric Power
Plant at Uri

Himalayan Model of Growth Wining the Hearts and Minds of the People of Jammu and Kashmir
through Development

Security Brief at the Armys 15 Corps Headquarters

Prime Minister Addressed Indian Army Jawans at Badami Bagh Cantonment in Srinagar

Separatist Called for a Bandh During the Prime Ministers Visit

4. Significance of the Prime Ministers Visit to Jammu and Kashmir:

Prime Ministers First Visit to Jammu and Kashmir with Emphasis on Winning the Hearts and
Minds of the People through Development

Visit Conveyed a Clear Message of the Governments Dual Approach of No Compromise on
Security along with the Stress on Development

The States Opposition Leader Welcomed the Prime Ministers Comments on Taking Forward
Former Prime Minister Vajpayees Initiatives on Jammu & Kashmir

19
i.3. NORTH-EAST

I. Introduction:

1. Eight States Share only 2% of the Border with the Rest of the Country: The North-East
comprising of eight States called the eight sisters shares only 2 per cent of its borders (about
17 km) with the rest of India, while 98 per cent of its border is surrounded by Bangladesh,
Bhutan, Myanmar and the Tibetan region of China.

2. 8% of the Area of the Country, 4% of India's Population: The total area of the North-East
accounts for 8 per cent of the country. It has a population of about 31.4 million (1991) which is
about 4 per cent of Indias total population.

3. Diversity - 262 Tribes: The North-East is known for its ethnic, linguistic, cultural, religious
and physiographical diversity. There are about 262 tribes in a population of 31 million.

4. Underdeveloped: The land-locked North-East is predominantly agricultural but all the
States are underdeveloped. The economic development of the region has suffered due to the
following reasons:
Isolation from the rest of the country.
Primitive agricultural practices.
Poor transport and other infrastructural facilities.
Natural calamities.
Lack of investment and political stability.

5. Insurgency One of the Prime Reasons for the Regions Backwardness: Analysts point
out that insurgency is deeply rooted in the North-East, the last few decades have seen a
number of insurgent groups emerging in the region. This has been one of the prime reasons for
the backwardness of the region. In the North-East there have been relatively small periods of
calm separated by long periods of turmoil in the form of insurgency and demands for autonomy
and even outright secession from India.

II. Background:

1. Connected with the Rest of India through the Chickens Neck: The North-East comprises of the eight
States of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The
North-East is connected with the rest of India through a 50 km corridor termed the Chicken Neck via West
Bengal.

2. North-Eastern Areas Reorganisation Act 1971: Except Manipur, all the States making up the North-East
have been carved out from Assam after 1947 by the North-eastern Areas Reorganisation Act-1971.

3. Insurgency in the North-East:

Nagaland: The first prolonged insurgency in the North-East occurred in Nagaland in 1956. This was
followed by insurgency in Manipur and then Mizoram in 1966.

Mizoram: The Mizoram insurgency was successfully terminated in the 1980s by a combination of army,
civic action and good administration.

20

Insurgency in the North-East Supported by Foreign Hands: Insurgency in North-East is supported by
foreign hands because of the easy access of the region to the neighbouring countries like China,
Myanmar, Bangladesh and Bhutan. The insurgents have their base camps in these neighbouring
countries.

Insurgent Groups in the North-East Aided by ISI: Pakistans Inter-Services Intelligence (ISI) has been
actively aiding and training the insurgent groups in the North-East.

Insurgency in the North-East a Challenge to National Integrity: Insurgency in the North-East is
posing a challenge to national integrity. Insurgent groups in Nagaland, Assam and Manipur and other
areas have paralysed normal life.

Problem States - Assam, Nagaland, Manipur and Tripura: Finally, analysts feel that Mizoram,
Arunachal Pradesh and Meghalaya are relatively peaceful States. The problem States were Assam,
Nagaland, Manipur and Tripura.

4. Quadrangular Zone a Vortex of Militant Activities: Analysts point out that the quadrangular zone covering
northern Bengal, eastern Nepal, southern Bhutan and Mid-western Assam has emerged as a vortex of
militant activities. These militant groups have links with other militant groups of the north-eastern India and
neighbouring countries like Bangladesh and Myanmar.

A. ULFA (United Liberation Front of Asom):

Formation: Founded by Paresh Barua and others in 1979 in Assam. It was set up to establish an
independent Assam through an armed struggle.

Current Leadership: Arabinda Rajkhowa is the current chairman.

Military Capabilities: ULFA established links with Pakistans ISI and the Afghan Mujahideen. According
to reports, ULFA activists have received training in Pakistan and Afghanistan. The ISI is believed to have
enabled ULFA to buy arms from Cambodia. According to reports, ULFA has around 14 camps functioning
in Bangladesh since 1989.

B. NDFB (National Democratic Front of Bodoland):

Formation: Originally called the Bodo Security Force was formed in 1988. Seeks to secure a sovereign
Bodoland in the areas north of Brahmaputra river.

Current Leadership: Founded by Ranjan Daimary who is also the current chairman.

Military Capabilities: Estimated strength of 3,500 fighters, most of whom were present in training camps
in Bhutan. The NDFB depends largely on ULFA for its weapons and infrastructure.

C. KLO (Kamtapur Liberation Organisation):

Formation: Came into existence in 1995. Aims to carve out a separate State from six districts of West
Bengal and four contiguous districts of Assam.

Current Leadership: Tamir Das, alias Jiban Singha, is the chairman.

Military Capabilities: Most active in the Jalpaiguri and Siliguri subdivision of Darjeeling. Security experts
believe that Pakistans ISI has a special interest in KLO, since the latter helps to escalate sabotage
activity along the strategically and economically vital Siliguri corridor of West Bengal.

5. Reasons for the Rise in Insurgency in the North-East:

a. Many Facets: Insurgency in the North-East has many facets and its causes are numerous including: a)
historic, b) socio-economic, c) political and d) international.

b. Sharing of international borders: with neighbouring countries has helped the insurgents in cross-border
arms supply and to have base camps in neighbouring countries.

21

c. Large-scale influx of migrants from Bangladesh: has led to demographic disequilibrium casting a heavy
burden on the economy of the region. This has led to violence and demand for the ouster of foreigners

d. Nexus between the politicians and the insurgent groups: is one of the prime reasons behind the rise of
insurgency in the region. Politicians give patronage to certain insurgent groups to meet their political ends.

e. Negligence of the region over the years by the Centre: had made it easy for the anti-India forces across the
border to lure people towards insurgency.

f. Subversive Activities carried out by Pakistans ISI:

Two Pronged Strategy of the ISI: Defence analysts point out that there is a clear evidence that
Pakistans Interservices Intelligence (ISI) has launched a two-pronged strategy as follows:

Exploiting existing terrorist and insurgent groups to encourage insurrections and chaos
wherever it can on Indian soil.

To mobilise fundamentalist Muslim forces.

ISI Exploiting the Porous North-East Border: The basic problem in the North-East, particularly in
Assam, is the infiltration of illegal immigrants from Bangladesh. The illegal immigrants easily get mixed
with the local population because of similarities in language and culture. This is being exploited by the ISI
which is sending its trained cadres to create trouble in the region, according to the then Union Home
Secretary, Mr. Kamal Pande.

Pakistans Intentions to Destabilise the Region: According to analysts the heightened ISI activities in
Assam and neighbouring states and North Bengal are indicative of Pakistans intention to destabilise the
region and create a Kashmir like situation.

6. North-East Militant Sanctuaries in Bangladesh:

Bangladesh is seen as a hub of militants attacking Indias North-East. All top leaders of the ULFA
and the NDFB are allegedly taking shelter in Bangladesh.

India wants Bangladesh to cooperate in matters of blocking insurgent cells from retreating
across the border.

The crackdown by the Bangladesh authorities helped in the arrest of top leaders on ULFA in
November-December 2009.

India acknowledged and appreciated the cooperation extended by Bangladesh in the arrest of the
top ULFA leaders.

7. Armys Role in Curbing Insurgency in the North-East:

The Indian Army has been playing a key role in containing the insurgency in the North-East. The
Army Special Powers Act along with the Disturbed Areas Act gives the Army considerable freedom to act
on its own.

Various Operations to Curb Insurgency in the North-East: Operation Bajrang launched by the
Army in 1990 was very successful in containing the ULFA in Assam. In 1991, the Army launched
Operation Rhino which led to the surrender of many cadres of ULFA.

Need for Socio-Political and Economic Inputs to Eliminate Insurgency: The Army itself cannot
eliminate insurgency, according to analysts. There have to be accompanying socio-political and
socio-economic inputs.

The Army can only exert pressure on the insurgents and take the situation to a level which
enables the Government to negotiate a settlement from a position of strength.

The counter-insurgency operations were part and parcel of national security and a co-ordinated
effort would have to be made to combat the menace, according to defence analysts.

22

The Unified Command of the Army, the Para-Military forces and the Police was formed in Assam
in January 1997. The arrangement resulted in better efficacy of anti-insurgency operations. The Army
has been advocating a Unified Command for the entire North-East region. The Unified Command can
help in combating the movement of the insurgents from one State to another.

Kargil Review Committee Recommendations: Finally the Kargil Review Committee has pointed out
that the widespread deployment of the Army in counter-insurgency operations in Jammu and Kashmir
and the North-East has really worn out the Armed Forces and there is need to consider raising a separate
force specifically trained and equipped for such duties.

8. Steps Taken by the Centre and the States to Tackle Insurgency in the North-East:

A. Coordinated Action by the North-Eastern States: The Centre accepted the suggestion of the Assam Chief
Minister, Tarun Gogoi for coordinated action by the North-Eastern States against the militant outfits spreading
terror in the region.

B. Long-Term Strategy to Tackle Insurgency: The then Home Minister, Shivraj Patil, said that the Centre
would try to put in place a long-term strategy to tackle the insurgency in the North-East. Stress would be laid on
coordination among the law-enforcing agencies, the Army, the paramilitary forces and support from the common
people in the North-East.

C. Two-Pronged Strategy: The Assam Chief Minister stressed the need for a two-pronged strategy:
Undertaking developmental activities in a big way to prevent further recruitment of youths by
militant groups.
Curbing insurgency with a firm hand.

D. The cross-border movement of insurgents, illegal migrants and smuggling of arms and contraband
posed serious security threat to the region, according to the Chief Secretary of Assam

E. Government Actively Engaging Bangladesh, Bhutan and Myanmar:

Indias Vast Border with Neighbouring Countries: India shares a 4,053 km border with Bangladesh, a
1,463 km border with Myanmar and a 605 km border with Bhutan. These porous borders pose a serious
security threat to India.

Engaging Bangladesh: India has sought Bangladeshs help in curbing the activities of militants camping
in Bangladesh.

Engaging Bhutan and Myanmar: The Government of India is actively engaging neighbouring countries
like Bhutan and Myanmar for renewed action against militants in light of intelligence reports of growing
links between the North-East militant groups and the Al-Qaeda and the ISI. The Head of State of
Myanmar visited India and assured of his countrys cooperation against the North-East militants. India is
providing military hardware and other packages of cooperation with Bhutan.

F. Unified Command for All North-Eastern States Suggested:

On February 1, 2005, the Centre suggested the setting up of a Unified Command in all
North-Eastern States for better coordination between the security forces and the Governments to deal
with insurgency.

Assam and Manipur already have a Unified Command Structure and a similar mechanism has
shown positive results in Jammu and Kashmir. Centre has suggested the other six States also create
a similar set up which could be headed by the Chief Minister.

The Centre could not form such a command because of Constitutional obligations and various
agreements, the responsibility now lay with the States.

23

9. New North-East Industrial and Investment Policy - 2007:

New Policy Valid for the Next 10 Years: The Centre unveiled the new North-East Industrial and
Investment Policy on March 31, 2007. It would be valid for the next 10 years.

Liberal Policy Provides Enhanced Fiscal Incentives: Inaugurating the third Northeast Business
Summit, the then Vice-President Bhairon Singh Shekhawat pointed out that the new North-East Industrial
and Investment Policy was a "liberal policy" that provided enhanced fiscal incentives to industries as also
to units in the services sector, biotechnology and power generation.

Plans to Improve Infrastructure to Make North-East Industry-Friendly: The Centre plans to improve
infrastructure including transport and air travel to make the north-east industry-friendly and ensure overall
development of the region.

Increased Money Flow Under the XI
th
Plan: The Central money flow for the north-east under the XI
th
Plan is to be around Rs. 1,20,000 crore as against Rs. 80,000 in the X
th
Plan.

Private Sector Asked to Invest in a Big Way to Encourage Employment Generation in the
North-East: The Minister for Development of the North Eastern Region Mani Shankar Aiyar appealed to
the private sector to invest in a big way in ventures in the power, tourism, food processing, handicrafts
and other sectors to encourage employment generation.

Security Situation Conducive to Business: Mr. Aiyar dispelled the notion that the entire north-east
was insurgency ridden. He stressed that barring a few pockets, the security situation was most conducive
to business.

10. Myanmar Agreed to Joint Operations to Flush Out North-East Militants from Its Territory:

On January 24, 2010, India and Myanmar conclude home-secretary level talks in Myanmars
capital Nay Pay Taw.

The security forces of India and Myanmar would conduct coordinated operations in their
respective territories in the next two-three months.

The objective of the operations was that no militant should escape to the other side after facing
the heat on one side.

The coordinated operations would be similar to what Bhutan did against ULFA by launching
Operation All Clear in 2003.

The ruling Junta of Myanmar has also promised to track down the ULFA commander-in-chief
Paresh Baruah who is believe to be hiding in Myanmars Kachin province bordering China.

Apart from ULFA, there are other north-east militant outfits like NSCN(IM), NSCN(K), PLA and
UNLF, having their camps within the territory of Myanmar.

II. Current Situation in the North-East:

1. General (retd.) V.K. Singh the New Union Minister of State for Development of the
North Eastern Region:

Former Army Chief General (retd.) V.K. Singh is the new Union Minister of State
for the Development of the North Eastern Region.

General (retd.) Singh served in the North Eastern region in several capacities
during his career in the Army.

The new Minister sought feedback to help him discharge his function for
development of the North-East.

24

For people of the region living in various parts of the country, various activities
like awareness creation and meetings would be taken up, according the Minister.

Gen. (retd.) Singh strongly condemned the harassment of the people from the
region and said that it would be his priority to find a solution to this.

2. Government Started Informal Talks with Insurgent Groups:

The new NDA Government has started informal talks with insurgent groups in
the northeast to find a lasting solution to the militancy in the region.

The Minister of State for Home Affairs, Kiren Rijiju said that he had full charge of
the North East Division and had been informally meeting representatives of
some of the outfits and had conveyed to them to come on board and shun
violence.

Mr. Rijiju said that he had asked officials in his Ministry to initiate formal dialogue
and expressed optimism that some of the militant groups would come on board
in the near future.

The Government was also considering relaxing the restricted area permit
required for domestic and foreign tourists visiting areas along the Sino-Indian
borders in Arunachal Pradesh and Ladakh in Jammu and Kashmir to give a
boost to tourism.

Analysts point out that this was part of a larger plan to open these areas, which are
considered as tourist attractions, and integrate them with mainland India and
open the Indian economy to South-East Asia.

3. Recent Violence in Assam, Manipur and Meghalaya a Challenge to the New
Government in the Centre:

Analysts point out that the recent violence in States like Assam, Manipur and
Meghalaya by armed Non-State groups represented a challenge for the New
Government under Prime Minister Narendra Modi.

The rise in insurgent groups in the region underlines the ethnic and social
complexity of the North-East region which is home to more than 200 ethnic
communities, according to analysts.

In recent years, political mobilisation and armed violence has changed in the
North-eastern region with the principle militant factions engaged in negotiations
with the Centre while they are challenged by smaller, more violent, break-away
factions, according to analysts.

The smaller and more violent militant factions are armed with new weapons
which are easily available in the arms market in the region. With new technology
and better connectivity, these groups are able to easily move across State borders,
according to analysts.

Analysts also point out that in every State in the North-East that is experiencing
conflict, there is a non-violent process by a group demanding greater autonomy
or a separate State. Thus, the demand by the non-violent groups runs parallel with the
violent movements.

25

III. Conclusion:

1. Strategic Importance of the North-East: Although the North-East accounts for less than
four per cent of the countrys population, its strategic importance to national security warrants a
high priority on the Governments agenda, according to analysts.

2. Systematic Multi-Level Interaction: The insurgency problem in the North-East has both
external and domestic dimensions. The problem stems from the feeling of neglect nursed by
the local population. Apart from tightening security and modernising the police force, effort
should be made to narrow the emotional, social and cultural distance between the North-East
and the rest of the country through systematic multi-level interaction, according to analysts.

3. North-East Key to Indias Economic and Foreign Policy:

The North-East has the potential to play a key role in Indias Look East Policy
and in its relations with ASEAN.

Analysts suggest that the North-East can be opened up to ASEAN for trade,
commerce and education.

India also needs to invest in infrastructure with neighbouring countries to
connect its North-eastern region with ASEAN through ports and international
highways, according to analysts.

4. Economic Development Key to Peace: Analysts point out that the real challenge is to
formulate a concrete plan for the economic transformation of the North-East from an
underdeveloped region into a region of education, employment, technology and real
opportunity for its people. This is the only way to integrate the North-East with the rest of India.

5. Centre Needs to Put in Place Strategies to Settle the Insurgencies and Economically
Integrate the Region with the Rest of India and Connect with East Asia: Analysts opine
that the Central Government needs to put in place proper strategies to settle the insurgencies
on a permanent basis while removing political grievances and economically integrate the
North-East with the rest of the country. The on-going projects to connect the North-East with
East Asia will accrue immense benefits for the region as well as for the country.

SUMMARY
I. Introduction:

1. Eight States Share only 2% of the Border with the Rest of the Country
2. 8% of the Area of the Country, 4% of India's Population
3. Diversity - 262 Tribes
4. Underdeveloped: The economic development of the region has suffered due to the following reasons:
Isolation from the rest of the country.
Primitive agricultural practices.
Poor transport and other infrastructural facilities.
Natural calamities.
Lack of investment and political stability.
5. Insurgency One of the Prime Reasons for the Regions Backwardness

II. Current Situation in the North-East:

1. General (retd.) V.K. Singh the New Union Minister of State for Development of the North
Eastern Region:
Former Army Chief General (retd.) V.K. Singh is the new Union Minister of State for the
Development of the North Eastern Region.

26

General (retd.) Singh served in the North Eastern region in several capacities during his career in
the Army.

The new Minister sought feedback to help him discharge his function for development of the
North-East.

For people of the region living in various parts of the country, various activities like awareness
creation and meetings would be taken up

Gen. (retd.) Singh strongly condemned the harassment of the people from the region and said
that it would be his priority to find a solution to this.

2. Government Started Informal Talks with Insurgent Groups:

The new NDA Government has started informal talks with insurgent groups in the northeast to
find a lasting solution to the militancy in the region.

The Minister of State for Home Affairs, Kiren Rijiju said that he had full charge of the North East
Division and had been informally meeting representatives of some of the outfits and had
conveyed to them to come on board and shun violence.

Officials in the Home Ministry to initiate formal dialogue and expressed optimism that some of
the militant groups would come on board in the near future.

The Government was also considering relaxing the restricted area permit required for domestic
and foreign tourists visiting areas along the Sino-Indian borders in Arunachal Pradesh and
Ladakh in Jammu and Kashmir to give a boost to tourism.

Part of a larger plan to open these areas, which are considered as tourist attractions, and
integrate them with mainland India and open the Indian economy to South-East Asia.

3. Recent Violence in Assam, Manipur and Meghalaya a Challenge to the New Government in
the Centre:
Recent violence in States like Assam, Manipur and Meghalaya by armed Non-State groups
represented a challenge for the New Government under Prime Minister Narendra Modi.

The rise in insurgent groups in the region underlines the ethnic and social complexity of the
North-East region which is home to more than 200 ethnic communities

In recent years, political mobilisation and armed violence has changed in the North-eastern
region with the principle militant factions engaged in negotiations with the Centre while they are
challenged by smaller, more violent, break-away factions

The smaller and more violent militant factions are armed with new weapons which are easily
available in the arms market in the region

In every State in the North-East that is experiencing conflict, there is a non-violent process by a
group demanding greater autonomy or a separate State

III. Conclusion:
1. Strategic Importance of the North-East
2. Systematic Multi-Level Interaction

3. North-East Key to Indias Economic and Foreign Policy:
The North-East has the potential to play a key role in Indias Look East Policy and in its relations with
ASEAN.
North-East can be opened up to ASEAN for trade, commerce and education.
India also needs to invest in infrastructure with neighbouring countries to connect its North-eastern region
with ASEAN through ports and international highways

4. Economic Development Key to Peace
5. Centre Needs to Put in Place Strategies to Settle the Insurgencies and Economically Integrate the
Region with the Rest of India and Connect with East Asia

27
i.4. ASSAM

I. ULFA PROBLEM

A. Background:

1. Problems Faced by Assam: All the North-Eastern States except Manipur were carved out of Assam in 1947.
The problems faced by the State can be listed under three heads: A) The ULFA secessionist movement B)
Foreigners issue, and c) the Bodoland Agitation.

2. Insurgent Groups in Assam:

a. ULFA (United Liberation Front of Asom):

Formation: Founded by Paresh Barua and others in 1979 in Assam. It was set up to establish an
independent Assam through an armed struggle.

Objective: To establish a sovereign socialist Assam.

Leadership: Arabinda Rajkhowa is the chairman and Paresh Baruah is the commander-in-chief.

Military Capabilities: ULFA established links with Pakistans ISI and the Afghan Mujahideen. According
to reports, ULFA activists have received training in Pakistan and Afghanistan. The ISI is believed to have
enabled ULFA to buy arms from Cambodia. According to reports, ULFA has around 14 camps functioning
in Bangladesh since 1989.

Foreign links: Camps in Bangladesh along with business establishments like hotels, departmental
stores and travel agencies.

b. Bodo Militant Outfits: demand a separate State within the Union of India.

c. Support Base in State: The ULFA and the Bodos have support base in the State. Both the outfits have military
wings who carry on hit-and-run operations on the security forces and other targets perceived to be hostile to their
interests.

d. Camps in Neighbouring Countries: According to analysts the ULFA and Bodo leaders have safe refuge
outside India in Bangladesh, Myanmar and Bhutan.

e. Peak Activities of ULFA: ULFAs activities peaked in the late Eighties because the AGP could not tackle the
menace. This led to the imposition of Presidents rule in Assam in 1990.

3. Operation Bajrang: The Army launched Operation Bajrang to nab the ULFA militants. This resulted in
curbing the ULFA activities with most of its cadre going underground. Operation Bajrang was withdrawn before
the June 1991 elections.

4. Operation Rhino: was launched by the Army in 1991. It resulted in mass surrenders by the ULFA cadres.

5. Split in ULFA: The ULFA split into two groups, the SULFA (the Surrendered ULFA) and the underground
ULFA. The chairman of ULFA, Arabinda Rajkhowa, ULFA army chief, Paresh Barua and others went
underground as they could not face the might of the Indian Army.

6. Funding: According to reports, the ULFA has build up a corpus of about Rs.300 crore through extortions to
finance its insurgency activities.

7. ULFAs Bases in Bangladesh:
Analysts point out that ULFA and various other north-eastern insurgent groups have operating bases in
Bangladeshi territory, which they use for their subversive activities against India.
Analysts also point out that there is evidence to show that ULFA had started the process of relocation of its
bases from Bhutan to Bangladesh ever since the Bhutanese Government started turning the heat on them a
couple of years ago.

28

8. ISI Help: The ULFA leaders based in Bangladesh are said to be acting under the orders of Pakistans Inter
Services Intelligence (ISI) which is arming, equipping and funding them.

9. ULFAs Threat to Outsiders in Assam:

a. January 2007 - ULFA Attacked Bihari Migrant Workers: In January 2007, ULFA launched serial attacks on
Bihari migrant workers in Assam in the upper districts of Tinsukia, Dibrugarh and Dhemaji killing 62 persons.
Earlier, the ULFA had targeted Bihar migrant workers in 2000 and 2003 killing several persons.

b. ULFA Threatened Outsiders: On January 18, 2007, the ULFA issued a threat to Hindi-speaking and other
outsiders, asking them to stay away from Assam during its conflict with the security forces.

c. Centres Response:

An Act of Cowardice: Prime Minister Manmohan Singh termed the killings of the Bihari migrant workers
in Assam by the ULFA as an act of cowardice and inhumanity.

Compensation to the Families of Victims: As a mark of solidarity with the victims the Prime Minister
announced compensation of Rs.2 lakh to the family of each of the killed.

Joint Action of Centre and State Against ULFA: The Defence Minister A.K. Antony said that in joint
cooperation with the State Government, the Centre would deal strongly with ULFA.

Two Pronged Initiative to Deal with ULFA: Mr. Antony said that the Government had embarked on a
two pronged strategy to deal with ULFA - enhancing people-to-people cooperation and
strengthening the security apparatus.

Centre Open to Talks with only the Main Leaders of ULFA if it Abjures Violence: The Centre said
that it was open to talks with ULFA if it abjures violence and agrees to unconditional talks. However, the
talks would be only with the main leaders and not intermediaries.

Prime Minister Visited Assam to Review the Security Situation: On January 16, 2007, Prime Minister
Manmohan Singh visited Assam and reviewed the security measures and counter-insurgency operations
at a meeting with Chief Minster Tarun Gogoi and senior officials of the Army, the Assam police and the
Central paramilitary forces. Dr. Singh stressed that his Government would not tolerate violence and
would ensure the safety of all citizens in Assam using all resources at its command. However, he kept
open the option of dialogue with the ULFA if it abjures violence.

10. Army Launched Rhino-II:

January 2007 - Third Military Operation Against ULFA: On January 9, 2007, the Army launched a
full-scale operation code named "Rhino-II" across Assam to tame the ULFA cadre. This was the third
military operation against the ULFA; the previous operations were Bajrang and Rhino in the 1990s.

Aim to Safeguard the Life and Property of the People: The operation was basically aimed to
safeguard the life and property of people according to reports. The focus of the operation would be on
extensive patrolling and calming the tense situation.

11. Unified Command in Assam Following the Kashmir Pattern:

The Unified Command in Assam - a three-tier command structure of the Army, the Assam police
and the Central paramilitary forces - spearheading the operations against the ULFA, was following the
Kashmir pattern with Chief Minister Tarun Gogoi heading it , according to the Defence Minister A.K.
Antony. Earlier, the Chief Secretary headed the Unified Command in Assam and the chief of the Army's 4
Corps was the chief operations executive.

Mr. Antony pointed out that the Government had suspended military operations against ULFA from
August 13, 2006 to September 24, 2006, even though the Army had opposed it, because the
intermediaries acting on behalf of ULFA misled the Centre when they insisted that the militant
organisation wanted peace.

12. November 2007 - 66 ULFA Militants Surrender in Assam: In November 2007, 66 ULFA militants and two
militants of the All Assam Adivasi National Liberation Army (AANLA) surrendered in Assam. They pledged to
protect the country's unity and integrity.
29

13. Efforts to Start a Dialogue with ULFA:

a. People's Consultative Group (PCG) Appointed by ULFA for Dialogue with the Centre:

In September 2005, the ULFA constituted the People's Consultative Group (PCG) - a committee of 11
civil society notables of Assam led by noted writer and Jnanpith Award winner Mamoni Raison Goswami
- for entering into a dialogue with the Centre.

The People's Committee for Peace Initiatives in Assam (PCPIA) also initiated efforts for a dialogue
between the Government and ULFA.

b. PCG Held Three Rounds of Talks with the Centre: The PCG held three rounds of talks with the Central
Government on behalf of ULFA. The PCG has again decided to open channels of dialogue with the Centre.

14. Arrest of ULFA Leaders - 2009:

On November 08, 2009, two top leaders of the United Liberation Front of Asom (ULFA) - Sashadar
Choudhary and Chitraban Hazarika were produced before the Chief Judicial Magistrate Court in
Guwahati by the Special Operation Unit of the Assam police.

The Assam police maintained that the ULFA leaders had surrendered before the Border Security
Force (BSF) in Tripura while fleeing crackdown against the outfit by Bangladesh.

Of the 16 members of the ULFAs central executive committee four are in Guwahati jail including
vice-chairman Pradip Gogoi.

On December 04, 2009, the chairman of ULFA Arabinda Rajkhowa and the deputy
commander-in-chief of the outfit Raju Baruah along with their family members were arrested by
the BSF in the Dawki sector of the India-Bangladesh border in Meghalaya.

Arabinda Rajkhowa and Raju Baruah were produced before the Chief Judicial Magistrate Court in
Guwahati on December 05, 2009. They were sent to jail at the end of their 21-day police custody.

The commander-in-chief of the ULFA, Paresh Baruah, who had shifted base and was somewhere on
the China-Myanmar border, denied any split in the outfit and claimed the Rajakhowa had not
surrendered.

15. ULFAs Unconditional Talks with the Centre (New Delhi, February 10, 2011):

ULFA Opens Unconditional Talks with the Union Government for the First Time in 31 Years: On
February 10, 2011, leaders of the banned United Liberation Front of Asom (ULFA) opened unconditional
talks with the Union Government in New Delhi.

The aim of the talks was to find a just and honourable solution to the problem of insurgency in
Assam.

The ULFA delegation led by its chairman Rajakhowa met the Union Home Minister P.
Chidambaram and Home Secretary G.K. Pillai. The Home Minister assured them that the Government
of India and the Government of Assam would engage them in sincere and meaningful talks.

Through talks, the ULFA proposed to evaluate various facets of the Constitution of India and
explore the viability of protection and enrichment of sovereignty of the people of Assam in all
dimensions - political, economic, social and cultural within the flexibility of the Constitution as proposed
by the Prime Minister.

The leaders of ULFA called upon the Prime Minister Manmohan Singh and conveyed to him that
the ULFA had decided to come forward for talks on the basis of a letter written by the Prime
Minister to the ULFA on May 25, 2005 in which he had promised to discuss all core issues with ULFA.

30

16. ULFA Declared Unilateral , Indefinite Ceasefire (July 12, 2011):

The United Liberation Front of Asom (ULFA) declared a unilateral indefinite ceasefire on July 12,
2011.

The ULF with a view of exploring a lasting peaceful resolution of the ongoing conflict, had
resolved to cease all forms of armed campaign for an indefinite period, according to a statement by
the ULFA chairman Arabinda Rajkhowa.

The ULFA chairman asked all members of the outfit to scrupulously implement the decision in
letter and in spirit. He warned that any violation of the decision would be considered as an
anti-organisational act and shall be dealt with accordingly.

This was the first time the ULFA had formally declared ceasefire at the highest level, after 32
years of insurgency, to enter into a dialogue with the Centre.

A faction of the ULFA cadres, led by the self-styled commander-in-chief Paresh Barua, is
opposed to talks with the Centre.

17. ULFA Presented a Charter of Demands to the Centre (August 5, 2011):

On August 5, 2011, a delegation of the ULFA led by their chairman Arabinda Rajkhowa met the
Union Home Minister P. Chidambaram in New Delhi.

The Charter of demands made it clear that the ULFA no longer wanted to secede from India. They
just wanted more autonomy and constitutional safeguard for people of Assam.

The Charter of demands included status report on missing ULFA leaders and cadres, reforms
that include protection of identity and material resources of local indigenous population of
Assam, financial and economic arrangements, ban on illegal migrants, education and health reforms,
agriculture and rural development, land and natural resources, right to engage in specific relationship with
foreign countries for promotion of mutual trade, restoration, protection, preservation and spread of
indigenous culture of Assam in all its variety.

The grounds for the ULFAs struggle and their genuineness should be the basis of negotiations
between India and people of Assam, according to the ULFA leaders.

Sovereignty did not mean secession from India. But is must be ensured that people of Assam
could assert their inalienable rights and control over their lands and resources and protect their
identity, according to the ULFA leaders.

The Union Home Minister P. Chidambaram promised to resolve all the issues within the
framework of the Indian Constitution.

18. Tripartite Talks with ULFA (New Delhi, October 25, 2011):

On October 25, 2011, a tripartite meeting between representatives of the United Liberation Front of
Asom (ULFA), the Assam Government and the Centre was held in New Delhi to discuss the
charter of demands submitted by the ULFA in August 2011.

The discussion also included ways to protect the rights and identity of the indigenous people of
Assam.

The meeting discussed the various aspects of the charter, which sought amendment to the
Constitution to find a lasting solution to the three-decade-old insurgency problem.

The ULFA led by its chairman Arabinda Rajkhowa held a meeting with the Union Home Secretary
R.K. Singh and held point-by-point discussion on their demands.

The ULFA chairman described the meeting as positive and hoped that the positive attitude of the
Centre would continue and help in finding an amicable solution to ULFAs demands.

31

19. Conclusion:

A. Reasons behind the ULFAs Agreement for Unconditional Talks:

ULFA had previously insisted that the talks must include its demand for sovereignty for Assam.

Over the last one year, the ULFA evolved politically to realise that its pre-condition on
sovereignty was unrealistic.

The ULFA suffered reverses in operations by the Indian Security Forces, ULFA leaders and
cadres could no longer seek safe havens in Bangladesh and Bhutan. Bangladesh handed over to
India the top leaders of ULFA in 2009.

The people of Assam were also put off by the ULFAs violent methods that led to the death of
hundreds of civilians.

C. The Grievances of the People of Assam Need to be Addressed for a Permanent Peace in the
State:
The long-held grievances of the people of Assam include - economic underdevelopment, the
presence of a large number of illegal immigrants from Bangladesh, and the need for a just share
of revenue from tea and oil, according to analysts.

For a permanent peace in the State, the peoples grievances need to be addressed.

The opposition to talks without preconditions by the military wing leader of ULFA Paresh Barua
poses a challenge to peace in the State. Analysts feel that the overwhelming public opinion in favour of
talks would compel Barua to change his mind.

II. Illegal Migrants in Assam:

1. Infiltration of Foreigners: Basically involves the large-scale infiltration of Bangladeshis into Assam. The
agitation against the foreigners in Assam started in 1979.

2. Organisations Formed: The agitation resulted in the formation of organisations like All Assam Students Union
(AASU), All Assam Gana Sangram Parishad later renamed as AGP and the ULFA. The six year agitation ended in
the signing of the Assam Accord in 1985.

3. IMDT Act, 1983:
The Illegal Migrants Determination by Tribunal (IMDT) Act came into existence on October 15, 1983
when the anti-foreigners agitation launched by the All Assam Students Union (AASU) was at its peak.

The IMDT Act is an instrument for detection of illegal migrants (from Bangladesh) and their expulsion
from Assam.

The IMDT Act is applicable to those Bangladeshi nationals who settled in Assam on or after March 25,
1971.

The IMDT Act operated only in Assam. The Foreigners Act (1946) applies to the rest of the country.

4. Assam Accord: The Assam Accord, signed in August 1985 between the Centre, the AASU and the State
Government, among other things, provided for the identification and deportation of all illegal migrants entering
Assam after March 25, 1971. As a result, the Illegal Migrants Determination by Tribunal Act (IMDT) was legislated
and all issues relating to foreigners were handed over to the tribunal.

5. Controversial Provisions of the IMDT:

Onus of Proving Citizenship Rested with the Complainant: The onus of proving the citizenship of a
suspected illegal foreigner rested on the complainant - the police. Whereas, under the Foreigners Act, the
onus lies with the person suspected to be an illegal migrant.

2.5 Lakh Cases Pending with 16 IMDT Tribunals: The IMDT Act had a provision for setting up tribunals
in different districts having borders with Bangladesh to decide the cases against illegal migrants.
However, there are nearly 2.5 lakh cases pending with 16 IMDT tribunals.

32

6. Protests Against the IMDT Act: The AASU and the Asom Gana Parishad (AGP) have been protesting
against the IMDT Act, claiming it had not helped in detection of foreigners and only provided protection to a large
number of infiltrators.

7. State Government's Favoured the Continuance of the IMDT Act in Assam: The Tarun Gogoi Government
in Assam supported the IMDT Act on the ground that it was the only way by which illegal immigrants could be
identified and deported. It withdrew the affidavit filed earlier supporting repeal of the Act and favoured its
continuance in Assam alone.

8. Supreme Court Strikes Down the IMDT Act (July 12, 2005):

IMDT Act Ultra Vires the Constitution: On July 12, 2005, the Supreme Court struck down the IMDT
Act. A three-Judge Bench declared as ultra vires the Constitution the controversial 1983 Act and the
Rules framed there-under in 1984.

All Tribunals Constituted Under the IMDT Act will Cease to Function: Allowing a writ petition filed by
AGP MP Sarbananda Sonowal challenging the validity of the Act the Supreme Court directed all tribunals
constituted under the IMDT Act adjudicating the cases for identification of illegal migrants from
Bangladesh cease to function with immediate effect.

Pending Cases to be Transferred to Tribunals Under the Foreigners Act: The cases pending before
the tribunals under the IMDT Act would stand transferred to tribunals under the Foreigners Act.
Considering the huge pendency of applications, the Court directed the Assam Government to constitute
sufficient number of tribunals under the Foreigners Act to deal with the situation.

IMDT Act Biggest Hurdle to Identification and Deportation of Illegal Migrants: The Supreme Court
held that the IMDT Act and the rules made there-under created the biggest hurdle to identification and
deportation of illegal migrants. Though enquiries were initiated in 3,10,759 cases under the Act, only
10,015 persons were declared illegal and just 1,481 were physically expelled up to April 30, 2000. This
comes to less than half per cent of the cases initiated. On the contrary in West Bengal, where the
Foreigners Act was applicable, 4, 89,046 persons were deported between 1983 and November 1998, a
smaller period.

Presence of a Large Number of Illegal Migrants Contributes to Internal Disturbances: The Court
observed that the presence of a large number of illegal migrants from Bangladesh, which runs into
millions, is in fact an aggression on Assam and also contributed significantly to causing serious internal
disturbances in the shape of insurgency of alarming proportions.

IMDT Act Advantageous to Illegal Migrants: The three-judge Bench observed that the IMDT Act is
coming to the advantage of such illegal migrants as any proceedings almost entirely end in their favour,
enabling them to have a document having official sanctity to the effect that they are not illegal migrants.

IMDT Act and Rules Negate the Constitutional Mandate Contained in Article 355: The Supreme
Court declared that the IMDT Act and the rules clearly negate the Constitutional mandate contained in
Article 355, where a duty has been cast upon the Union of India to protect every State against external
aggression and internal disturbance.

Influx of Bangladeshi Nationals Posed a Threat to Integrity and Security of the Northeast: The
Court observed that the large-scale illegal migrants not only affected Assam but also the other
north-eastern States as the route to these places passed through Assam. The influx of Bangladeshi
nationals into Assam posed a threat to the integrity and security of the northeast. Their presence changed
the demographic character of the region and the locals of Assam were reduced to a minority in certain
districts.

Enforcement of IMDT Act Facilitating the Continued Stay of Illegal Migrants: The three-judge
Bench said that the enforcement of the IMDT Act facilitated the continued stay of illegal migrants from
Bangladesh. Their presence in huge numbers affected the language, script and culture of the locals.

9. Foreigners (Tribunals for Assam) Order, 2006:

The Foreigners (Tribunals for Assam) Order, 2006 was promulgated in February 2006.

In essence, it was an amendment to the Foreigners (Tribunals) Order of 1964 promulgated under the
provisions of the Foreigners Act for determining illegal immigrants.
33

The 1964 Order was amended in February 2006 to make it inapplicable to Assam.

The Foreigners (Tribunals for Assam) Order, 2006 shifted the burden of proving that a person was a
foreign national to the complainant unlike the Foreigners (Tribunals) Order, 1964 that requires a person
brought before a tribunal to prove his Indian citizenship.

10. Supreme Court Holds Unconstitutional the Foreigners (Tribunals for Assam) Order, 2006:

Foreigners (Tribunals for Assam) Order, 2006 Declared Unreasonable and Arbitrary: On
December 5, 2006, the Supreme Court held unconstitutional the Foreigners (Tribunals for Assam) Order,
2006, declaring it unreasonable, arbitrary and in contravention of Article 14 of the Constitution (equality
before law) since it was applicable only to Assam and not to other States bordering Bangladesh.

Violative of the Centre's Obligations to Protect the States Under Article 355: The Supreme Court
said that the Foreigners (Tribunals for Assam) Order, 2006, does not serve the purpose sought to be
achieved by the 1946 Foreigners Act or the Citizenship Act and the obligations cast on the Centre to
protect the nation in terms of Article 355 of the Constitution.

Centre Directed to Constitute Sufficient Number of Tribunals Under the 1964 Order: The Supreme
Court directed the Centre to constitute within four months a sufficient number of Tribunals under the
Foreigners (Tribunals) Order, 1964, to effectively deal with the foreigners who have illegally come from
Bangladesh or are residing in Assam.

Political Parties and Student Bodies Hail Supreme Court Verdict:
Student bodies and political parties in Assam hailed the Supreme Court verdict quashing the notification
on amendment to the Foreigners Act.
The All-Assam Students Union (AASU) and the North-East Students Organisation (NESO) pointed out
that the verdict had vindicated their stand that there cannot be two pieces of legislation - one for Assam
and another for the rest of the country - to deal with the foreigners' problem.

11. Conclusion:
Foreigners (Tribunals for Assam) Order, 2006 Flawed: Analysts point out that the Foreigners
(Tribunals for Assam) Order, 2006 was flawed as it applied only to Assam and was conceived as
pro-immigrants as it puts the onus of proving a person foreigner on the complainant. On the other hand,
the Foreigners Act of 1946 and the Foreigners (Tribunals) Order, 1964, put the onus of proving
citizenship on the person complained against while bestowing maximum powers on the police.

Adverse Impact of the Presence of Illegal Migrants in Assam: In July 2005, the Supreme Court
observed that the presence of large number of illegal migrants from Bangladesh was an aggression on
Assam. The aggression made the life of the people of Assam wholly insecure and the panic generated
thereby created a fear psychosis. This hampered the growth of Assam though it had vast natural
resources. The rest of the country perceived it as a disturbed area and hence there were no investments
or employment opportunities, giving rise to insurgency.

The Question of Illegal Migrants should be Treated as a National Concern: Analysts point out that
the Supreme Court verdict is significant not only for Assam but for the whole country. The politics over the
influx of illegal Bangladeshi migrants has overshadowed the larger issue of threat to demography and
national security. It is essential that Governments and political parties treat the question of illegal migrants
as a major national concern.

Need for a Uniform Law on Foreign Nationals Applicable to All States: Analysts stress on the need
for a uniform law relating to foreign nationals applicable to all States.

12. Assam Chief Minister Released a White Paper on Foreigners Issue (October 20,
2013):
On October 20, 2013, Assam Chief Minister Tarun Gogoi released a White Paper on
Foreigners Issue brought out by the Home and Political Department at the
Secretariat in Guwahati.

The problems of unemployment, providing healthcare and education were more
serious ones for Assam than the issue of cross-border undocumented migration,
according to the Chief Minister.
34

Mr. Gogoi said that undocumented migration of people to Assam from across the
international border was not as alarming as in the past or as the Opposition
parties were trying to project.

Undocumented migration from erstwhile East Pakistan (Bangladesh) had been
an issue agitating the minds of the people for a long time and up to 1971, Assam
recorded large-scale migration, according to the Assam Chief Minister.

From 1991 the migration started declining. The higher decadal population growth
rate of the State had been attributed to migration of people from outside, according to
Mr. Gogoi.

The White Paper on Foreigners Issue stated due to the various measures taken by
the Government to curb cross-border migration, among other things, growth rate
of population in 1991-2001 (18.9 per cent) and 2000-2011 (16.9 per cent)
Censuses had shown a declining trend.

According to the 1985 Assam Accord , the 1966-71 migrants would not be
deported but would be given time to register themselves as Indian citizens while
the migrants who came after 1971 would be deported.

Mr. Gogoi pointed out that in 1997 during an intensive revision of electoral rolls in
Assam, the letter D (doubtful/disputed) was marked against 2,31,657 persons
who could not prove their citizenship, according to the Election Commission.

The cases of D voters were referred to the tribunals for determining their
citizenship. Till April 2012, 88,192 cases were deposed with 6590 persons declared
foreigners while 44,220 were declared Indian citizens and in 37,382 cases, the tribunals
could not express any opinion, according to Mr. Gogoi.

The Assam Chief Minister said that after the signing of the 1985 Assam Accord,
4,52,667 cases had been registered of which 1,85,275 were deposed of with
61,744 persons being declared foreigners.

13. The All-Assam Students Union Rejects the White Paper on Foreigners:

The All-Assam Students Union (AASU) termed the White Paper on Foreigners
Issue a white lie.

The AASU accused the State Government and Centre of betraying the people by
not implementing the 1985 Assam Accord for 27 years. The Assam Accord was
signed after six years of anti-foreigners agitation spearheaded by the AASU.

The AASU leaders pointed out that some of the vital documents pertaining to the
implementation of the Assam Accord and updating the National Register of
Citizens (NRC) were not included in the White Paper.

It was pointed out that both the Centre and the State Government had given their
commitment as shown by the documents, to implement various clauses of the
Assam Accord, including detection and expulsion of undocumented migrants,
sealing of the India-Bangladesh border and updating of the NRC within a definite
time frame.

35

III. Bodoland:

A. Background:

1. Largest Tribal Group in Assam: The Bodos are the largest tribal group in Assam speaking a language
belonging to the Indo-Tibetan family. They have been demanding a homeland on the northern bank of
Brahmaputra.

2. Bodo Movement: The Bodo Movement which gained momentum in the early Eighties was against
encroachment on Bodo lands by migrants from other parts of the country. These migrants included Muslims,
labourers from Bihar, Santhalis and other ethnic groups.

3. Bodo Accord: In 1993, the Bodo Accord was signed between the All Bodo Students Union (ABSU) Chief,
S.K. Biswamutiary and the Assam Government. This resulted in the formation of the Bodoland Autonomous
Council (BAC).

4. Accord Not Accepted by All Bodos: However, the Accord was not accepted by all Bodos. The militant
groups like the Bodo Liberation Tiger Force (BLTF) and the National Democratic Front of Bodoland (NDFB)
denounced the Accord and stepped up their terrorist activities.

5. Demands: The BAC, which remains an interim body, is hardly functional. Even the boundary of BAC remains
undefined and a matter of dispute. The Bodos want a 10 km belt along the Assam-Bhutan border to be included
into the BAC.

6. Defect in the Accord: Analysts feel that the most serious defect of the Bodoland Accord is that it lacks a
constitutional guarantee. No amendment was made in the Indian Constitution to recognise the Accord. The State
Government is empowered to dissolve the BAC at its will.

7. JWG on Bodo Problems: A Joint Working Group (JWG) was formed in September 1997 to study all aspects
of Bodo problems. The JWG failed to take off owing to differences between the Centre and the Bodo groups over
its terms of reference.

8. Talks between the Centre and Bodo Groups:

a. Tripartite Talks: On May 25, 1998, a tripartite meeting was held between the Centre, State Government and
the Bodo leaders. The meeting was attended by about 40 Bodo leaders belonging to the All Bodo Students Union
(ABSU), Bodo Peoples Action Council (BPAC), Progressive Democratic Front (PDF), etc.

b. Demand Statehood: The Bodo leaders insisted that the BAC could not solve the Bodo problem and that only
the creation of a separate State of Bodoland in lower Assam could resolve the Bodo problem.

c. Additional Areas for BAC: The Government on its part persuaded the Bodos to drop their demand for a
separate State and offered additional areas for the BAC, greater financial autonomy and a special package for the
development of the council area.

d. More Autonomy for BAC: The Centre feels that a BAC with more autonomy would take better care of Bodos
problems. The Rs. 40 crore budget of the BAC which was earlier routed through the Assam Government, may
now be extended directly to the Council.

e. BLT:
The Bodo Liberation Tigers (BLT) emerged in 1996 after the Bodo Accord of 1993 turned out to be a
non-starter.
The BLT began its violent campaign with the bombing of the Brahmaputra Mail on December 30, 1996.
On March 2000, the BLT entered into a ceasefire with the Government and began peace negotiations
that culminated in the February 10, 2003, MoS.

f. Positive Signal to Other Outfits: The Centre hopes that the agreement with the BLT will send a positive signal
to other underground outfits in Assam, including the ULFA and the National Democratic Front of Bodoland
(NDFB) and the Dima Halam Daoga (DHD) operating in the Karbi Anglong districts of Assam.

g. Demands of the NDFB: The banned NDFB has demanded that unless the Centre gives an assurance about
the formation of a separate State of Bodoland, its leaders will not participate in any peace talks. However the
State Government and a majority of the people of the Brahmaputra valley are against further division of Assam.

36

9. Bodo Accord - 2003:

a. MoS Signed: On February 10, 2003, the Centre, the Assam Government and the Bodo Liberation Tigers (BLT)
signed a Memorandum of Settlement (MoS) reviving hopes for peace in Assam after 15 years of armed struggle.

b. Bodoland Territorial Council (BTC):

The MoS will result in the formation of a 46-member Bodoland Territorial Council under the Sixth
Schedule of the Constitution comprising of the districts Kokrajhar, Chirang, Baska and Udalguri.

40 members of the Council would be elected, with 30 seats being set aside for tribals, five for
non-tribals and five for other groups. Six members would be nominated by the Governor from
communities not otherwise represented.

The existing Bodo Autonomous Council would be abolished. Elections to the new BTC would be
held after its formation.

The BTC, covering about 8,000 sq. km, would comprise of about 3,082 villages and a population
of about 23 lakhs. The status of an additional 95 villages would be considered by a three-member
committee.

The BTC will have control, administration and virtual governance over 10 socio-political areas.

The BTC will also have 40 departments transferred by the State Government to its control; receive
Rs. 100 crore assistance a year for five years to develop the socio-economic infrastructure in BTC areas,
a Centrally-funded university and a Central institute of technology.

The Bodo Liberation Tigers (BLT) will be disbanded and disarmed within a week of the formation
of the BTCs interim committee that can be in power for a maximum of six months till the first elections
to the Council are held.

10. Significance of the Accord:

a. Gains for the Bodos:
Analysts point out that the accord gives the Bodos an area they can call their homeland and the right to
govern themselves.
It helps in preserving the identity of the Bodos which they felt was being threatened.

b. BTC more powerful than Autonomous Bodies: Although the Bodo Territorial Council is to be formed under
the Sixth Schedule of the Constitution, the accord gives it more powers than many other autonomous bodies.
Wide-ranging powers have been given to the BTC in many socio-political areas.

c. Basis for a Lasting Settlement: Analyst point out that the Memorandum of Settlement (MoS) entered into by
the Union Home Ministry and the Assam Government with the BLT, could be the basis for a lasting settlement of
the Bodo Problem that has been affecting the region for over a decade.

d. Generating a Sense of Hope Among the Ethnic Communities in the Northeast: Analysts feel that the
Bodo Accord has generated a sense of hope among the ethnic communities in the Northeast. It also underlines
the fact that a solution to all contentious issues can be found only through a peaceful dialogue.

11. Bodo Militants Lay Down Arms: On December 6, 2004, the Bodo Liberation Tigers (BLT) laid down their
arms at a function, signalling the end of years of armed struggle. About 2,623 BLT cadres laid down their arms.
The Assam State Government has announced amnesty to all cadres and withdrawal of cases against them.

12. Proper Implementation of the Accord Including All the People of the Region in the Democratic Set Up:
Analysts opine that the MoS in the Bodo-dominated areas will achieve its purpose only if the political leadership at
all levels displays a sense of purpose and includes all the people of the region in the democratic set-up.

13. ABSU Intensifies Demand for a Separate State of Bodoland:

On March 2, 2010, the All Bodo Students Union (ABSU) decided to revive the movement for the
formation of a separate State of Bodoland accusing the Bodoland Territorial Council (BTC) of failing to
meet the hopes of the Bodos and also charged the Assam Government of not protecting their identity,
culture and language.

37

On March 2, 2012, the ABSU held a rally to mark the completion of 25 years of the statehood
movement and vowed to intensify their struggle for the creation of a separate State of Bodoland to be
carved out of Assam.

The ABSU president Pramod Boro demanded that the Centre should immediately initiate a political
dialogue on the statehood issue.

After the statehood movement was revived in 1996, the Centre had told the Bodo leaders that it
had no policy to create new States, according to the ABSU president. He pointed out that in 2000 the
Centre created three States while turning down the demand for a separate Bodoland.

ABSU insisted that Assam must be divided to ensure tribal rights as once the land belonged to
the tribals of Bodo origin and other ethnic groups.

14. Violence in Bodo Territorial Areas (July 2012):

On July 19, 2012, unidentified gunmen injured two student leaders of the All Bodoland Minority
Students Union and All Assam Minority Students Union in Kokrajhar district.

On July 20, 2012, four Bodo youths of the former Bodo Liberation Tigers were killed by a mob in
Joypur village.

The incident sparked a series of attacks and counter-attacks blowing up into a full-scale conflict
in Kokrajhar district and spread to three other districts - Chirang, Dhubri and Bongaigaon.

The rioting between Bodos and Muslims led to the death of around 40 people and an exodus of
over 1,70,000 people who took shelter in relief camps.

The Army deployed in the riot-affected districts of Assam.

The Bharatiya Janata Party (BJP) team which visited the area said that illegal migration was at the
heart of the problem. It demanded that the border with Bangladesh must be sealed.

The Bodo leaders wanted the Dhubri-Kokrajhar and Chirang-Gossaigaon borders leading to the
Bodoland Territorial Autonomous District (BTAD) be sealed so that the miscreants from other areas
could not enter these four districts.

The leaders of the Muslim students unions alleged that it was clear case of genocide as only
non-Bodos in the BTAD areas were being targeted by the Bodos armed with guns and traditional
weapons.

Analysts point out that tension in the areas had been brewing for some time with the Bodos
complaining that non-tribals were entering the tribal council lands and settling there.

The non-tribals alleged that they were in majority in BTAD but enjoyed no special facilities.

15. Prime Ministers Visit to the Areas:

On July 28, 2012, Prime Minister Manmohan Singh visited the riot-affected areas of Assam and
called for a healing touch to the victims of violence.

Dr. Singh said that an impartial inquiry would be conducted into the cause of the violence,
stressing that if the conflict had been instigated, the guilty must be punished.

The Prime Minister announced compensation to the riot victims and Rs.300 crore in Central
assistance to Assam.

B. Assam Violence Bodo Militants Kill Migrants (May 02, 2014):

On May 02, 2014, the Army was called out and an indefinite curfew imposed in the
Bodoland Territorial Area Districts (BTAD) of Korajhar and Baksa in Assam after
suspected National Democratic Front of Boroland (NDFB) militants killed 30
Muslim migrants in three separate attacks.
38

According to the Assam police the National Democratic Front of Boroland
(Songbijit) carried out the attacks.

The Assam Government decided to hand over the probe to the National
Investigation Agency (NIA).

The Assam Government also announced that a judicial inquiry would be
conducted into the violence in the BTAD.

VI. Conclusion:

The Bodo-Muslim Violence in Western Assam in July/August 2012 resulted in the
displacement of 4.85 lakh people.

In May 2014 attacks in three Bodo districts 30 people were killed.

Analysts suggest that the first step to stop the menace is to disarm Bodos.

Analysts suggest that the Assam Government needs to work towards achieving a
right balance of development activity with focus on restoring of mutual trust.

Systematic measures need to be taken to address the fears over loss of
ownership and right to land, and concerns over denial of access to resources,
development and means of livelihood, according to analysts.

In the long-term, it is essential to check the flow of illegal migrants from
Bangladesh, which fuels ethnic tensions throughout the region, according to
analysts.
SUMMARY
I. Assam Violence Bodo Militants Kill Migrants (May 02, 2014):

Indefinite curfew imposed in the Bodoland Territorial Area Districts (BTAD) of Korajhar and
Baksa in Assam after suspected National Democratic Front of Boroland (NDFB) militants killed 30
Muslim migrants in three separate attacks.

According to the Assam police the National Democratic Front of Boroland (Songbijit) carried out
the attacks.

The Assam Government decided to hand over the probe to the National Investigation Agency
(NIA).

The Assam Government also announced that a judicial inquiry would be conducted into the
violence in the BTAD.

II. Conclusion:
The Bodo-Muslim Violence in Western Assam in July/August 2012 resulted in the displacement
of 4.85 lakh people.

In May 2014 attacks in three Bodo districts 30 people were killed.

First step to stop the menace is to disarm Bodos.

The Assam Government needs to work towards achieving a right balance of development activity
with focus on restoring of mutual trust.

Systematic measures need to be taken to address the fears over loss of ownership and right to
land, and concerns over denial of access to resources, development and means of livelihood

In the long-term, it is essential to check the flow of illegal migrants from Bangladesh, which fuels
ethnic tensions throughout the region
39
II. INDIAN ECONOMY
1. STATE OF INDIAN ECONOMY

I. Introduction:

1. Economic Survey: The Economic Survey is an annual commentary on the state of the
economy which is put together by the Finance Ministry. It is presented in Parliament each year
shortly before the general Budget and just after the Railway budget.

2. Objective: The Economic Survey provides an opportunity for the Finance Ministry to spell
out its reform agenda. It also provides an opportunity to urge reform on Ministries which are
lagging behind in implementation.

II. Highlights of the Economic Survey 2013-14:

The Gross Domestic Product (GDP) this fiscal would be in the range of 5.4- 5.9%

GDP growth can be 7-8% after 2015/16

Poor monsoon and external factors are a risk to economic growth

Subsidy reforms needed for fiscal consolidation

Tax-to-GDP ratio should be raised for fiscal consolidation

Current Account Deficit (CAD) should be contained at 2.1% of GDP in 2014-15

Wholesale Inflation would moderate by 2014-end

Retail inflation showing signs of moderation

Revenue shortfall can be contained through better mobilisation, reforms

Need to move towards simple tax regime, fewer exemptions, GST rate

DTC needed as a clean modern replacement for the IT laws

Need for changes in tax administration

Sharp fiscal correction required, new FRBM Act with teeth

Rupee stabilised, showing an overall sense of confidence

Industrial growth would revive gradually over 2 years

Foodgrains production to cross 264.4 million tonnes in 2013/14

Plan to add 88,537 MW of power capacity over the next five years

Decline in poverty ratio from 37.2% in 2004/05 to 21.9% in 2011/12
40

III. Economic Survey 2013-14 - Sectoral Analysis:

1. New Budget Process:

Measurable outcomes which could be seen by citizens

Report cards by independent technical experts for every Ministry

2. Macro Economy:

Macro economy has stabilised

Dramatic improvement in external situation

Growth would remain on the lower side 5.4-5.9% due to:
The steps to restart investment cycle would show effect gradually
Expected below normal monsoon
Still elevated levels of inflation, limiting scope for RBI to cut rates
Not so good growth outlook in Asian economies, especially China

Fiscal deficit (difference between the governments expenditure and revenues)
declined for the second year in a row

The surging markets were reflecting the expectations of a change for the better

Current Account Deficit (imports more than exports) as a percentage of GDP in
the range of 2.0-2.5%.

Both wholesale and consumer price inflation would slow, giving RBI the scope to
reduce interest rates

Need to tackle high food inflation to ensure continued economic growth.

Presence of intermediaries in the different tiers of marketing, shortage of storage
and processing infrastructure, inter-State movement of agricultural produce etc.
need to be addressed

To improve the Macro Economic situation the Government can:
Simplify tax regime, GST, DTC
Liberalise Agriculture
Enhance infrastructure investment
Step up the business environment
Target subsidies
Amend labour laws

3. New Subsidy Regime:

Subsidies burden leads to higher food prices while having zero or negative
impact on agricultural output.

Need for shift to income support instead of price subsidies

Review of Nutrient Based Subsidy which does not have urea

Phased shift to direct transfer of fertilizer and food subsidies
Decentralised procurement for PDS
41

4. Agriculture:
El Nino would impact foodgrains output and put pressure on prices in the
current year

Call for creation of a national common agriculture market by removing
restrictions and bottlenecks for free trade

Current year would see a record output of foodgrains at 264.4 million tonnes.

For agricultural growth of above 4% there needs to be a fresh look at
procurement, marketing, transport, storage and processing.

Need for crop protection and insurance

5. Industry and Infrastructure:

The downturn is an opportunity to push critical reforms and remove
infrastructure bottlenecks.

Issues that need urgent attention:
Increasing coal production
Permitting commercial coal mining
Restructuring power distribution
Upgrading road and rail networks
Reducing delays in regulatory approvals
Land acquisition and rehabilitation

In the near-term industrial growth is conditional on continued improvements in
the policy environment and a faster return to peak investment rates

Policy focus needs to be on revival of private investment which could be a key
growth driver in the short-term

Once the overall macro-economic environment improves, Industry would revive
and growth would accelerate in the next two years

Need to maintain consistency in Government infrastructure policies to support
economic growth

Need to step up investment, improve governance and remove procedural
bottlenecks to bring infrastructure out of the cycle of delays and slow growth

6. Simplified Tax Administration and Structure:

Lower Corporate tax rate

Replacing all existing indirect tax with Goods and Services Tax (GST) would
create a national market, eliminate cascading taxes and align taxation of exports
and imports

GST should be started at the Centre as a first step and thereafter, estimation risk
would be lower and it would be easier for Centre and the States to move to GST

Direct Tax Code (DTC) would help remove distortions of individual and corporate
decision-making reduce compliance cost and litigation as well as improve tax
collection
42

7. Suggested Reforms:

New Fiscal Responsibility and Budget Management (FRBM) Act: The modified
FRBM Act needs to take into account business cycles and to impose strong penalties
that cannot be ignored.

Reworking Budgeting Process: Expenditure reform was required to achieve desired
outcomes with minimum cost. Need to create feedback loops for accountability.

Cash Transfers for Subsidies: Instead of procurement and distribution of cereals,
cash transfers could be given to poor households to save on the subsidy bill.

Education Reforms: Format of government programmes in elementary education
needs change so that it becomes outcome oriented.

Health Reforms: Focus needs to be on epidemiological interventions such as
vaccination programmes and control of diseases and may also include focus on water
and sanitation.

Infrastructure Reforms: The role of government in infrastructure should be divided
into planning, contracting and regulating.

Market Reforms: All laws that empower the government to interfere in markets need to
be re-examined.

Institutional Reforms: Need to set up productivity commission to review laws, norms,
organisation structures and process designs.

IV. Conclusion:

1. Structural Constraints Behind the Recent Slowdown of the Indian Economy:

The Economic Survey 2013-14 said that the accentuation of structural constraints
had been one of the factors contributing to sub-5% growth without a
commensurate large decline in investment rate.

Difficulties in taking quick decisions on project proposals had affected the ease
of doing business. This resulted in considerable project delays and insufficient
complementary investments.

The slowdown in investment growth over the last five years was partly due to
difficulties in land acquisition, delayed environment clearances, infrastructural
bottlenecks, problems in coal linkages and ban on mining in some areas.

Poorly-targeted subsidies had cramped the fiscal space.

Manufacturing was hampered by absence of simple procedures, easy credit and
high transaction costs.

Low agricultural productivity was another factor behind the slow growth.

High food inflation also contributed to the slow growth.

The slowdown in corporate investment might have occurred due to high and
volatile inflation rates coupled with increasing global uncertainty.

43

A subdued business environment and bleak business confidence could also
have caused a decline in the investment rate.

2. Three Steps to Increase the Economic Growth to 7-8% by 2015/16:

The government needs to bring in legislative, administrative and regulatory
changes for transition to a pure market economy. The transition required repealing
the old legacy laws, flexible labour markets and new regulators and laws for pure
market economy.

Need for tax and expenditure reforms including the implementation of the Goods
& Services Tax (GST). The expenditure reforms need to include a new subsidy regime.

The government needs to put in place a framework for monetary policy, fiscal
consolidation and food market reforms to achieve low inflation rates.

SUMMARY

1. Structural Constraints Behind the Recent Slowdown of the Indian Economy:

Accentuation of structural constraints had been one of the factors contributing to sub-5% growth
without a commensurate large decline in investment rate

Difficulties in taking quick decisions on project proposals had affected the ease of doing
business

The slowdown in investment growth over the last five years was partly due to difficulties in land
acquisition, delayed environment clearances, infrastructural bottlenecks, problems in coal
linkages and ban on mining in some areas

Poorly-targeted subsidies had cramped the fiscal space

Manufacturing was hampered by absence of simple procedures, easy credit and high transaction
costs

Low agricultural productivity was another factor behind the slow growth

High food inflation also contributed to the slow growth

The slowdown in corporate investment might have occurred due to high and volatile inflation
rates coupled with increasing global uncertainty

A subdued business environment and bleak business confidence could also have caused a
decline in the investment rate

2. Three Steps to Increase the Economic Growth to 7-8% by 2015/16:

The government needs to bring in legislative, administrative and regulatory changes for
transition to a pure market economy

Need for tax and expenditure reforms including the implementation of the Goods & Services Tax
(GST)

The government needs to put in place a framework for monetary policy, fiscal consolidation and
food market reforms to achieve low inflation rates

44
ii.2. BUDGET TERMINOLOGY

Definition: Budget is a statement of estimated receipts and expenditure of a Government
during a financial year. It is an Annual Financial Statement required to be laid before both
the houses of the Parliament in terms of Article 112 of the Constitution.

Budget Group: It is the team which decides who pays how much tax. It comprises of the
Finance Minister, the Finance and Revenue Secretaries, Chief Economic Advisor and Heads
of Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC).

Annual Financial Statement: This is the main Budget document.

Consolidated Fund Of India (CFI): All revenues received by the Government, loans raised by
it, and also its receipts from recoveries of loans granted by it, form the consolidated fund. The
Parliament has to sanction every transaction from the CFI.

Contingency Fund: This is an imprest fund placed at the disposal of the President to enable
the Government to meet urgent unforeseen expenditure, pending authorisation from the
Parliament.

Public Account: Besides the normal receipts and expenditure of the Government which
relates to the Consolidated fund, certain other transactions enter the Government accounts in
respect of which the Government acts more as a banker, for example the transactions relating
to provident funds, small savings collections, etc. The money thus received is kept in the Public
Account.

Revenue Budget: This consists of the revenue receipts of the Government (tax revenues and
other revenues) and the expenditure met from these revenues.

Tax Revenues: These comprise of proceeds of taxes and other duties levied by the Union
Government.

Other Revenues: These receipts of the Government mainly consist of interest and dividend
on investment made by the Government, fees and receipts of other services rendered by the
Government.

Revenue Expenditure: This is the expenditure for the normal running of the Government
departments and various services, interest charges on debt incurred by the Government,
subsidies, etc.

Capital Budget: This consists of capital receipts and payments. It also incorporates
transactions in the Public Account.

Capital Receipts: The main items of capital receipts are loans raised by the Government from
public which are called market loans, borrowings by the Government from the RBI and other
parties through sale of Treasury Bills, loans received from foreign bodies and Governments
and recoveries of loans granted by the Union Government to State and Union Territory
Governments and other parties.

45

Capital Payments: These payments consist of capital expenditure on acquisition of assets
like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and
advances granted by the Union Government to the State and Union Territory Governments,
Government Companies, Corporations and other parties.

Demand for Grants: This is the form in which estimates of expenditure included in the annual
financial statement and required to be voted in the Lok Sabha are submitted.

Finance Bill: The proposals of the Government for levy of new taxes, modification of the
existing tax structure or continuance of existing tax structure beyond the period approved by
Parliament are submitted to Parliament through this bill.

Appropriation Bills: After the Demand on Grants are voted by the Lok Sabha, Parliaments
approval to the withdrawal from the Consolidated fund of the amounts so voted and the
amount to meet the expenditure charged on the Consolidated fund is sought through the
Appropriation Bill.

Balance of Payment ( Bop): Statement of the countrys trade and financial transactions with
the rest of the world during the year.

Convertibility: The extent to which one foreign currency or international reserve asset can be
exchanged for some other foreign currency or international reserve asset.

Countervailing duty: A tax levied on an imported product which raises the price of the
product in the domestic market as a means of counteracting unfair trade practices by other
countries.

Direct Tax: Tax levied by the Government on the income and wealth received by households
and businesses.

Indirect Tax: A tax levied by the Government on goods and services.

Ad Valorem Tax: An indirect tax which is expressed as a proportion of the price of a
commodity.

Fiscal Policy: An instrument of demand management which seeks to influence the level of
economic activity in an economy through the control of taxation and Government expenditure.

Monetary Policy: The tool of macroeconomics policy which involves the regulation of money
supply, credit and interest rates in order to control the level of spending in the economy.

National debt: The money owed by the Union Government to domestic and foreign lenders.

Public debt: National debt and other miscellaneous debt for which the Government is
ultimately responsible. This includes the accumulated debt of nationalised industries and local
authorities.

Value Added Tax (VAT): A general tax applied at each point of exchange of goods or services
from primary production to final consumption. It is levied on the difference between the sale
price of output and the cost inputs.

46

Deficits:

Budget Deficit: Total receipts (revenue and capital) minus total expenditure (revenue and
capital).

Revenue Deficit: Revenue expenditure minus revenue receipts.

Fiscal Deficit: The fiscal deficit measures the shortfall in governments ability to fund its
expenditure through regular sources (revenue and capital). Technically Fiscal deficit is the
sum of overall budgetary deficit and borrowings and other liabilities

Importance of Fiscal Deficit:
Fiscal deficit has a lot of impact on government policy. If it is very high in a year, the
government will have to either borrow a lot or print more money.
Borrowing a lot will push up interest rates thereby making the economy costlier and
reducing competitiveness of goods produced vis--vis those made by other countries.
Printing a more money will lead to inflation, which is also bad beyond a point.
Sustained high deficits can lead to a very high accumulation of debt by the government
leading to an internal debt trap.

Controlling Fiscal Deficit:
Fiscal deficit can be controlled by increasing revenues or cutting expenses or both.
Revenues can be increased in three ways- increase tax rate or tax more things or reduce
tax evasion.

Primary Deficit: Fiscal Deficit minus interest payments.

Trade Deficit: Total export earnings minus total import earnings.

Current Account Deficit: The current account measures the difference between total imports
and exports including invisibles like remittances. A current account deficit means imports are
more than exports, which can be balanced by borrowing from the foreign exchange (forex)
reserves. The behaviour of the current account reflects the strength of the economy.

Gross Domestic Product (GDP): One of the measures of the size of the economy. GDP is
defined as the market value of all final goods and services produced within the geographical
boundaries of a country during a given period of time.

Gross National Product (GNP): It is the total value of all goods and services produced by a
country's nationals. The difference between GNP and GDP is that the former is not confined to
value of final goods and services produced within the country, but also includes net factor
income receipts from abroad as well.

47
II.3. UNION BUDGET 2014-15

I. State of the Economy:

On July 10, 2014, the National Democratic Alliance (NDA) Governments First Union
Budget for the Year 2014-15 was presented by the Union Finance Minister Arun Jaitley.
In his Budget speech Mr. Jaitley highlighted the following aspects of the state of Indias
economy:

Two years of sub 5% growth in the Indian economy had resulted in a challenging
situation.

The slowdown in India broadly reflected the trend in many economies.

As per the International Monetary Fund (IMF), the world economy is projected to
grow at 3.6% in 2014 vis--vis 3.0% in 2013.

The performance of the US economy with attendant implication for the
unconventional monetary policy stance and global financial conditions is pivotal
to the fate of the global recovery in the coming years.

In this global situation the Indian economy would have to manoeuvre its way to
attain high growth trajectory.

The task before the Government is very challenging because growth needs to be
revived particularly in manufacturing and infrastructure to raise adequate
resources for the countrys development needs.

On the other hand there is a need to introduce fiscal prudence that would lead to
fiscal consolidation and discipline.

There is an urgent need to generate more resources to fuel the economy and for
this the tax to GDP ratio must be improved and non-tax revenues increased.

The decline in Fiscal Deficit (difference between the governments expenditure
and revenues) from 5.7% of GDP in 2011-12 to 4.8% in 2012-13 and 4.5% in
2013-14 was mainly achieved by reduction in expenditure rather than by way of
higher revenue.

In the current year, the reduction in Current Account Deficit (imports more than
exports) to 1.7% of the GDP against 4.7% in 2012-13 was mainly achieved
through restriction on non-essential imports and slowdown in overall aggregate
demand.

Roadmap for Fiscal Consolidation Fiscal Deficit of 3.6% for 2015-16 and 3% for
2016-17.

Moderation in the WPI inflation from a high of 7.35% in 2012-13 to 5.98% in
2013-14.

Need to address fully the problem of black money which is a curse to the
economy.

Need to undertake bold steps in order to enhance economic activity and spur
growth in the economy. These steps were only the beginning of the Governments
effort to revive the growth spirit of the Indian Economy.
48

II. Broad Policy Indicator Announced in the Union Budget 2014-15:

Aim to lay down a broad policy indicator of the direction in which the
Government wished to take the country.

Steps announced in the Budget were only the beginning of a journey towards a
sustained growth of 7-8% or above in the next 3-4 years along with
macro-economic stabilisation that includes lower levels of inflation, lesser fiscal
deficit and manageable Current Account Deficit (CAD).

1. Expenditure Management Commission:

Government was committed to the principle of Minimum Government Maximum
Governance.

To achieve this goal, the allocative and operational efficiencies of Government
expenditure have to be reviewed to achieve maximum output.

The Government would constitute an Expenditure commission which would look
into various aspects of expenditure reforms to be undertaken by the
Government.

The Commission would give its interim report within the current financial year.

2. Overhaul of Subsidy Regime:

Proposal to overhaul the subsidy regime including food and petroleum subsidies
and make it more targeted while providing full protection to the marginalised,
poor and SC/STs.

A new Urea policy would also be formulated

3. Goods and Services Tax (GST):

Hope of approving the legislative scheme which enables the introduction of GST
in the course of the year.

Introduction of GST would streamline the tax administration, avoid harassment
of the business and result in higher revenue collection both for the Centre and
the States.

4. Tax Administration:

Government committed to a stable and predictable taxation regime that would be
investor friendly and spur growth.

Henceforth all fresh cases arising out of the retrospective amendments of 2012
in respect of indirect transfers and coming to the notice of the Assessing
Officers would be scrutinised by a High Level Committee to be constituted by the
CBDT before any action is initiated in such cases.

5. Foreign Direct Investment (FDI):

The NDA Governments policy was to promote FDI selectively in sectors where it
helps the larger interest of the Indian Economy.
49

FDI in several sectors is an additionality of resource which helps in promoting
domestic manufacture and job creation.

India is the largest buyer of Defence equipment in the world. The countrys
domestic manufacturing capacities were still at a nascent stage. It was buying
substantial part of its Defence requirements directly from foreign players.

Companies controlled by foreign governments and foreign private sector were
supplying Indias Defence requirements at a considerable outflow of foreign
exchange.

Currently India permits 26% FDI in Defence Manufacturing.

Proposal to increase the FDI in Defence Manufacturing to 49% with full Indian
management and control through the Foreign Investment Promotion Board
(FIPB) route.

Proposal to increase the FDI in Insurance from the current level of 26% to 49%
with full Indian Management and control, through the FIPB route.

6. Bank Capitalisation:

Banking system needs to be further strengthened.

To be in line with Basel-III norms there was a requirement to infuse Rs.2,40,000
crore as equity in banks by 2018.

Need for additional resources to fulfil this obligation.

While preserving the public ownership, the capital of the banks would be raised
by increasing the shareholding of the people in a phased manner through sale of
shares largely through retail to common citizens of the country.

7. PSU Capital Expenditure:

To give a thrust to investment in the economy, Public Sector Units (PSUs) would
also play their part constructively.

In the current financial year the PSUs would invest through capital investment a
total sum of Rs.2,47,941 crores to create a virtuous investment cycle.

8. Smart Cities:

The Prime Minister Narendra Modi has a vision of developing One Hundred
Smart Cities as satellite towns of larger cities and by modernising the existing
mid-size cities.

A sum of Rs.7,060 crore in the current fiscal to provide the necessary focus to
develop smart cities.

9. Skill India:

Proposal to launch a national multi-skill programme called Skill India.

It would skill the youth with an emphasis on employability and entrepreneur
skills.
50

It would also provide training and support for traditional professions like
welders, carpenters, cobblers, masons, blacksmiths, weavers etc.

Convergence of various schemes to attain this objective was also proposed.

10. Pradhan Mantri Krishi Sinchayee Yojana:

To improve access to irrigation, proposal to initiate the scheme Pradhan Mantri
Krishi Sinchayee Yojana.
A sum of Rs.1,000 crore proposed for the scheme.

11. Swatchh Bharat Abhiyan:

The Government intends to cover every household by total sanitation by the year
2019 the 150
th
year of the Birth anniversary of Mahatma Gandhi through Swatchh
Bharat Abhiyan.

12. Shyama Prasad Mukherjee Rurban Mission:

Gujarat has demonstrated successfully the Rurban development model of
urbanisation of the rural areas, through which people living in rural areas can get
efficient civic infrastructure and associate services.

Shyama Prasad Mukherjee Rurban Mission would be launched to deliver
Integrated project based infrastructure in the rural areas, which would also
include development of economic activities and skill development.

The preferred mode of delivery would be through Public Private Partnerships
(PPPs) while using various scheme funds for financing.

13. Deendayal Upadhyaya Gram Jyoti Yojana:

Power is a vital input for economic growth and the Government was committed
to providing 24x7 uninterrupted power supply to all homes.

Deendayal Upadhyaya Gram Jyoti Yojana for feeder separation would be
launched to augment power supply to the rural areas and for strengthening
sub-transmission and distribution systems.

Rs. 500 crore proposed for this purpose.

III. Union Budget 2014-15:

1. Revenue:

Income Tax 13%
Service Tax and other Taxes 10%
Corporation Tax 21%
Union Excise Duties 10%
Customs 9%
Non-Tax Revenue 10%
Non-Debt Capital receipts 3%
Borrowings & other Liabilities 24%
51

2. Expenditure:

Defence 10%
Central Plan 11%
Plan Assistance to States & Union Territories 15%
Non-Plan Assistance to States & Union Territories 3%
Other Non-Plan Expenditure 11%
States share of taxes and duties 18%
Subsidies 12%
Interest Payment 20%

IV. Highlights of Union Budget 2014-15:

Costlier Cigarettes, pan masala, tobacco, aerated drinks, gutka and cabs

Cheaper LCD, LED, TV, cars, footwear, soaps and cosmetics

Income tax exemption limit for all taxpayers increased by Rs.50,000 from
Rs.2,00,000 to Rs.2,50,000

For senior citizens the exemption limit increased from Rs.2,50,000 to Rs.3,00,000

Aim to achieve an annual growth of 7-8% in 3 to 4 years

4.1% Fiscal deficit target for the current year retained

Fiscal deficit to be reduced to 3.6% in 2015-16 and 3% in 2016-17

FDI in Defence and Insurance sectors increased to 49% from 26%

100 smart cities proposed to be set up in the country

5 new IITs and 5 new IIMs to be established across different States

Kisan Vikas Patra to be re-introduced for small savers

Modernisation of Madrassas

15% investment allowance for manufacturing firms that invest more than Rs.25
crore

V. Proposals for Key Sectors in Union Budget 2014-15:

1. Defence
2. Education
3. Agriculture
4. Industry & Infrastructure
5. Financial Sector

52

1. Defence:

A. Defence Expenditure:

Rs.2,29,000 crore allocated for the defence sector in 2014-15, an increase of
Rs.5,000 crore over the previous interim Budget.

The Defence Allocation has been increased by 12.5% over last years Budget

The pattern of modest increase in Defence allocations reveals the Governments
intent to step up modernisation of the Army, along with renewed focus on
indigenously developed weaponry, according to analysts.

Army:
Rs.1,18,867.23 crore or 51.91% of the total Defence expenditure.
Rs.25,197.91 crore allocated for capital expenditure for inducting new equipment
in the Army, which is in the process of raising a mountain strike corps, equipped with a
Quick Reaction Force, armed with aviation assets.

Air Force:
Rs.53,817.02 crore or 23.50% of the total Defence expenditure
Budget allocated 2,127.99 crore for aircraft and aero-engines a nearly 80%
increase over the previous Budget under this head.

Navy:
Rs.36,779.59 crore or 16.06% of the total Defence expenditure
Rs.21,190.93 crores allocated for capital expenditure as the Navy is going ahead
with its new submarine and aircraft carrier projects.

Research and Development:
Defence Research and Development Organisation (DRDO) allocated
Rs.15,282.92 crore or 6.67% of the total Defence Expenditure
Ordnance Factories allocated Rs.2,481.99 crore or 1.08% of the total Defence
expenditure
Miscellaneous 0.78%

Defence Modernisation:
Rs.5,000 crore added to the Rs.8958.95 crore for the acquisition of new weapon
systems in the interim Budget.

Technology Development Fund:
Rs.100 crore to provide necessary resources to public and private sector companies to
support research and development of Defence systems that enhance cutting-edge
technology capability in the country.

One Rank One Pension:
A policy of One Rank One Pension has been adopted by the Government to address
the pension disparities.
A further sum of Rs.1,000 crore to meet this years requirement.

53

Foreign Direct Investment (FDI) in Defence Manufacturing:
Increased from 26% to 49%
The increase of FDI in defence manufacturing signalled the intention of the
Government to infuse foreign capital to modernise domestic defence industry,

B. Comparison of Indias Defence Expenditure with Other Countries:

Defence experts pointed out that Indias budgeted defence expenditure was just
around 1.74 per cent of the projected GDP for 2014-15

China defence budget was Rs.11,95,000 crore which was more than three times
Indias defence expenditure.

Chinas defence expenditure is doubling almost every five years. China also has
the largest Army in world with about 2.3 million personnel compared to 1.6 million of the
US.

The defence expenditure of the US is around $531 billion.

Pakistans defence expenditure was Rs.71,000 crore which 3.3% of its GDP.

The defence expenditure of Asian countries would soon surpass that of Europe,
according to a defence survey by the International Institute of Strategic Studies based in
London.

Asian countries like Japan, South Korea, Vietnam, Indonesia, Thailand and
Singapore are strengthening their Armed Forces, especially the naval ones,
according to the study.

India is expected to spend around $100 billion towards defence acquisition over
the next five to 10 years.

C. Internal Security:

The Union Budget 2014-15 proposed allocation for internal security showed a
sharp increase in the current fiscal reflecting the priorities of the Government.

Modernisation of the Police Force:
The scheme for the modernisation of the police force to be reviewed
Allocation enhanced from Rs.1,847 crore in 2013-14 to Rs.3,000 crore in 2014-15

Additional Central Assistance for Left Wing Extremist Affected Districts:
Allocated adequate funds for carrying out small but much needed developmental
activities.

Strengthening and Modernising Border Infrastructure: Rs.2,250 crore

Socio Economic Development of Villages Along the Borders: Rs.990 crore

Coastal Security: Rs.150 crore for the construction of Marine Police Station, Jetties,
for the purchase of boats etc.
54

The Government through the Presidents address to the Parliament had
announced its intention to maintain utmost vigil in the area of internal security
and a policy of zero tolerance towards terrorism, extremism, riots and crime.

In his address to the Parliament the President Pranab Mukherjee promised special
emphasis on improving intra-region connectivity and border infrastructure in the
North-East as well as Jammu and Kashmir.

The President had also emphasised that the issue of infiltration and undocumented
migration in the North-East region would be tackled on priority basis and all
pending fencing work along the North-East border would be completed.

2. Education:

Elementary education is one of the major priorities of the Government.

Rs.28,635 crore for Sarva Shiksha Abhiyan

Rs.4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan.

Rs.100 crore for setting up virtual classrooms as Communication Linked
Interface for Cultivating Knowledge (CLICK) and online courses

Proposal to set up Jai Prakash Narayan National Centre for Excellence for
Humanities in Madhya Pradesh

Proposal to set up 5 more IITs in Jammu, Chhattisgarh, Goa, Andhra Pradesh
and Kerala

Five IIMs in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra

Rs.5,000 crore allocated setting up higher education institutions

3. Agriculture:

Farming as an activity contributes nearly 1/6 to the countrys GDP and a major
portion of the population is dependent on it for livelihood.

To make farming competitive and profitable, there was an urgent need to
increase investment, both public and private, in agro technology development and
creation and modernisation of existing agri-business infrastructure.

Agriculture education and research would be strengthened through new
agriculture universities or institutions in Assam, Jharkhand, Andhra Pradesh
and Rajasthan, and horticulture universities in Telangana and Haryana.

FDI would be encouraged to fill gaps in critical infrastructure

Agriculture credit availability would be Rs.8 lakh crore

The National Rural Livelihood Mission would be extended to 100 more districts

Reform of the Public Distribution System (PDS) would be undertaken to make it
more efficient and user-friendly

Food Security Mission would cover 100 more districts
55

4. Industry and Infrastructure:

National Industrial Corridor Authority, with its headquarters in Pune, being set
up to coordinate the development of the industrial corridors, with smart cities
linked to transport connectivity. Rs.100 crore allotted as initial corpus

This would be the cornerstone of the strategy to drive Indias growth in
manufacturing and urbanisation.

The Government committed to revive the Special Economic Zones (SEZs) and
make them effective instruments of industrial production, economic growth,
export promotion and employment generation.

Effective steps to be undertaken to operationalise the SEZs, to revive investors
interest to develop better infrastructure and to effectively and efficiently use the
available unutilised land.

India has emerged as the largest Public Private Partnership (PPP) market in the
world with over 900 projects in various stages of development.

PPPs have delivered some iconic infrastructure like airports, ports and highways

Institution to provide support to mainstreaming PPPs called 3P India would be
set up with a corpus of Rs.500 crore.

5. Financial Sector:

Financial sector is the heart of the growth engine and it is essential to strengthen
and modernise the legislative regulatory framework.

Recommendations of the Financial Sector Legislative Reforms Commission for
better governance and accountability Government to complete the ongoing
process of consultations with all stakeholders expeditiously.

Government agreed in principle, to consider the suggestions for consolidation of
Public Sector Banks.

The FDI in Insurance raised from 26% to 49%

A special small savings instrument to cater to the requirements of educating and
marriage of the Girl Child would be introduced.

VI. Impact of the Union Budget 2014-15 on Different Sectors:

1. Impact on the Economy:

The Union Budget 2014-15 proposed various measures for social, manufacturing and
financial sectors and consumers.

The Government would constitute an Expenditure commission which would look
into various aspects of expenditure reforms to be undertaken by the
Government.

56

Proposal to overhaul the subsidy regime including food and petroleum subsidies
and make it more targeted while providing full protection to the marginalised,
poor and SC/STs.

Hope of approving the legislative scheme which enables the introduction of .
Goods and Services Tax (GST)

Introduction of GST would streamline the tax administration, avoid harassment
of the business and result in higher revenue collection both for the Centre and
the States.

Government committed to a stable and predictable taxation regime that would be

The NDA Governments policy was to promote FDI selectively in sectors where it
helps the larger interest of the Indian Economy.



Government expenditure as percentage of the GDP for 2014-15 proposed at
13.9%

2. Taxpayers:

No changes in the Income Tax rate

Exemption limit raised to 2.5 lakh for all taxpayers and to Rs.3 lakh for senior
citizens

Tax deduction on home loan interest payments raised to Rs.2 lakh; people
buying homes can save Rs.15,000

Deductions available under Section 80C raised to Rs.1.5 lakh

PPF saving limit raised to Rs.1.5 lakh from 1 lakh

No relief for those earning more than one crore, the super-rich surcharge of 10%
stays

3. Consumers:

Computer monitors, footwear, diamonds, small LCD/LED TVs, bath soaps
become cheaper.

Cigarettes, gutka and aerated drinks become costly

Radio Taxis to cost more as the service would come under service tax.

Shopping up to Rs.45,000 abroad would not attract customs duty

No change in gold import duty

57

4. Corporates:

High-Level Committee under CBDT would be set up to review retrospective tax
claims such as Vodafone.

Government promised a stable tax regime

Proposal to revive the Special Economic Zones (SEZs) and make them effective
instruments of industrial production, economic growth, export promotion and
employment generation.

International settlement of Indian depository receipts

VII. Implications of the Union Budget 2014-15:

A. Positive Aspects of the Union Budget 2014-15:

1. Budget Proposals would Work to Kick-Start a Moribund Economy and Usher in
Inclusive Growth in Line with the Governments Vision of Skilled and Digital India:

Prime Minister Narendra Modi hailed the Union Budget 2014-15 and said that read
along with the Railway Budget 2014-15 would work to kick-start a moribund economy
and address the peoples hopes and aspirations.

Mr. Modi said that the Government would work for the inclusive growth stressing that
development should be all encompassing and also reach those parts of the country
which have so far remained under-developed.

The Budget was in line with the Governments vision for a skilled and digital India,
according to the Prime Minister.

Mr. Modi said that for the moribund economy, the Budget 2014-15 had come as a
sanjeevani (a new lease of life).

2. Pragmatic, Growth-Oriented and Forward-Looking Budget that would Address the
Aspirations of all Sections of 125 Crore Indians:

The President of the Bharatiya Janata Party (BJP), Amit Shah, said that the Union
Budget 2014-15 was pragmatic, growth-oriented and forward-looking, one that would
address the aspirations of all sections of 125 crore Indians.

The Government had charted a roadmap for the economic resurgence of India and
addressed issues raised in the BJP manifesto, the motto of Sabka, Saath, Sabka
Vikaas was truly reinforced in the Budget, according to Mr. Shah.

The common man would immensely benefit from the relief to small income tax payers
and senior citizens, impetus on agriculture and rural economy and plans for urban
renewal.

58

3. Budget Gives a New Direction to the Economy by Comprehensively Articulating the
Governments Approach in a Range of Areas to Meet the Expectations of the
Stakeholders in the Indian Economy:

Economists point out that the Union Budget 2014-15 gives the Indian Economy a new
direction by comprehensively articulating the Governments approach in a range of
areas to meet the expectations of the stakeholders in the economy.

The Budget addressed two key areas for clarity Fiscal path and retrospective taxation.

The fiscal deficit target of 4.1% was retained with the objective of bringing it down to 3%
in 2016-17.

On retrospective tax, the Government announced a mechanism for scrutiny and
assured its commitment to a stable tax regime.

The Budget significantly focuses growth with announcements for a number of reforms
like raising the FDI limit in Defence and Insurance.

There is a strong focus on infrastructure development as indicated by the measures
announced for the development of ports, urban infrastructure, railways, roads, rural
infrastructure etc.

The Budget also focused on manufacturing which is significant for growth, job creation,
reducing import dependence and boosting exports.

Economists point out that the Budget signals that the Government has taken many
positive steps to a direction for the economy to move forward.

4. Budget Gives Indications of a Credible Vision of Economic Governance Removal of
Policy Ambiguity, Efficient Administration and Implementation, Better Control of
Government Expenditure:

Indian Industry chiefs pointed out that the Union Budget 2014-15 gives indications of a
credible vision of economic governance which includes removal of ambiguity, efficient
administration and implementation, better control of government expenditure and
strong emphasis on infrastructure and institutional capacity creation.

5. The Budget Boosts Infrastructure Development by Allowing Banks to Raise
Long-Term Funds from the Markets to Finance Infrastructure Projects:

Analysts point out that the Union Budget 2014-15 boots infrastructure development by
allowing banks to raise long-term funds from the markets to finance infrastructure
projects.

Thus for the infrastructure project funds, the banks would be free from the requirements
of the Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR) and Priority Sector
Lending.

Analysts point out that the Budget proposals have a twin objective, first to address the
concerns of asset-liability mismatch for banks lending to infrastructure projects and
second to bring down the financing cost for the infrastructure projects.

59

6. Budget Aims to Make the Financial Sector More Efficient:

Analysts point out that the various announcements in the Budget 2014-15 concerning
the financial sector aim to bring more efficiency to the capital market, the insurance
sector and banks, apart from providing them resources and helping them to function in a
competitive environment.

7. The Budget Sends a Positive Message for Investors to Invest in India in a Stable and
Predictable Way:

Analysts point out that the Budget sends a positive message to investors to invest in
India in a stable and predictable way with assurance of no retrospective changes in the
tax regime, the expanded scope of advance ruling or changes in transfer pricing
regulations.

Raising the FDI limits in the Defence and Insurance sectors would also be welcomed by
investors.

The Goods and Services Tax (GST) would be implemented before the end of the
current year.

8. Budget Placed Considerable Emphasis on Agricultural Renewal and Agrarian
Prosperity:

Agricultural scientist M.S. Swaminathan observed that the Union Budget 2014-15
placed considerable emphasis on agricultural renewal and agrarian prosperity.

Although the allocations were small, a beginning had been made to look at the
problems in the agricultural sector in a holistic way.

The Budget has indicated a roadmap for accelerated growth in agriculture and industry,
according to Mr. Swaminathan.

9. The Increase in Income-Tax Exemption Limit and the High Priority Accorded to
Manufacturing and Infrastructure would Boost Consumption:

Economists felt that the Union Budget 2014-15 had put more money in the hands of the
middle-class by increasing the income-tax exemption limit and manufacturing and
infrastructure had been accorded high priority which would boost consumption.

The Finance Minister had provided a perfect atmosphere for generating growth,
domestic demand, innovation, entrepreneurship and urbanisation which would help in
boosting consumption, according to economists.

The Budget 2014-15 would work as a catalysts for economic resurgence in India,
according to Kishore Biyani, Group CEO Future Group.

B. Criticism of the Union Budget 2014-15:

1. Most Proposals in the Budget Devoted to Providing Additional Funding to the UPA
Programmes:

In the Budget 2014-15 presented by the NDA Government most of the proposals were
devoted to providing additional allocations for programmes launched by the Manmohan
Singh-led UPA Government, according to the Congress.
60

2. Budget Lacked a Clear Roadmap on How to Achieve its Objectives:

The Congress felt that the Union Budget 2014-15 lacked a clear roadmap on how to
achieve its objectives.

The Budget lacked any new Idea but there was emphasis on the Defence sector,
according to Congress spokesperson Abhishek Manu Singhvi.

The Budget did not show any signs of a directional change, according to Former Union
Rural Development Minister Jairam Ramesh.

3. Budget Corporate-Friendly Exercise with Focus on FDI and PPP, A Recipe for Further
Enriching the Rich and Impoverishing the Poor:

The Left Parties felt that the Union Budget 2014-15 was a corporate-friendly exercise
with focus on Foreign Direct Investment (FDI) and Public-Private Partnership (PPP).

The Budget expressed deep commitment to continue the trajectory of reforms of
benefiting foreign and domestic capital by emphasising on larger FDI flows and
enlarged avenues for PPP projects, according to the CPI(M) Polit Bureau.

Fiscal consolidation was sought to be effected through contraction of public
expenditures and not by increasing revenues through taxing the rich. Thus, it was a
recipe for further enriching the rich and impoverishing the poor, according to the CPI(M)
Polit Bureau

4. Budget Does Not Address Some of Challenges and Decisions Faced by the Economy
Issues like Retrospective Tax Resolution, The Rising Fuel/Food Subsidies,
Governments Bank Ownership and Land/Labour Law:

Economists point out that Union Budget 2014-15 does not address some of the
challenges and decisions that the Indian Economy faced, and which the Budget was
expected to address.

It is pointed out that issues like retrospective tax resolution, the rising fuel/food
subsidies, the governments bank ownership and capital issue and the land/labour law
issues were not addressed in the Budget 2014-15.

5. FDI in Defence and Insurance would Undermine Self-Reliance and Growth of
Domestic Industry and Impact the Countrys Sovereignty and Security:

D. Raja of CPI said that Foreign Direct Investment (FDI) in Defence and Insurance
sectors would undermine self-reliance and growth of domestic industry and impact the
countrys sovereignty and security.

Selling shares of public sector banks would weaken the domestic financial sector,
according to Mr. Raja.

6. The Budget Does Not Increase Allocations for Social and Rural Sectors:

The Union Budget 2014-15 does not increase allocations for social and rural sectors,
according to D. Raja of CPI.

61

The Budget was silent on allocations for the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) and for health and education sectors,
according to the former Union Minister for Commerce, Industry and Textiles, Anand
Sharma.

Industrial activity, manufacturing, job creation and urbanisation must receive attention
from the Government, but not at the cost of social sector spending, according to Mr.
Sharma.

7. The Steps in the Overall Strategy of the Budget have Not been Integrated to Tell How
they were going to Help Solve the Countrys Problems:

Analysts opine that the many positive steps in Union Budget 2014-15 are well aligned to
fulfil peoples aspirations but they are not integrated to tell how they were going to help
solve the countrys problems.

VIII. Conclusion:

1. The Union Budget 2014-15 Brought Clarity in Tax Policies and would Bring the
Impulses Back into the Economy:

The Government said that the Union Budget 2014-15 had brought about clarity in tax
policies.

It was a growth-oriented Budget and would bring the growth impulses back to the
economy amidst fiscal constraints, according to the Finance Secretary Arvind
Mayaram.

2. On the Direct and Indirect Tax Side, the Main Focus of the Government was to Revive
Growth:
Revenue Secretary Shaktikanta Das said that on the direct and indirect tax side, the
main focus of the Government was to revive growth, to revive the manufacturing
sector, to take steps that would result in creation of jobs, to go in for tax
rationalisation, to reduce tax litigations and ambiguity in policies.

3. Reforms Indicated in the Union Budget 2014-15:

Analysts point out that the Union Budget 2014-15 indicated reforms in fuel subsidy,
plan schemes and a push to the disinvestment programme.

The Budget proposed the complete decontrol of diesel prices before March 2015
with the gap between administered and market prices being eliminated.

The Direct Benefit Transfers (DBT) scheme for subsidies paid directly into
Aadhaar-linked ban accounts would continue. It would cover 7 crore consumers.

The Budget indicated a big push to the disinvestment programme with the
Budget estimates for disinvestment proceeds for the current year at Rs.63,000
crore higher than the Interim Budgets target of Rs.56,000 crore.

Analysts point out that another reform indicated by the Budget was proposed
composition of the Union Governments expenditure where the bulk of the
revenue transfers to the States would go into the creation of capital assets,
rather than operational expenses.
62

There was also a proposal in the Union Budget 2014-15 for a progressive reduction in
debt-GDP ratio of the Government from the current 47 per cent to 41.4 per cent in
2016-17.
SUMMARY
I. Broad Policy Indicator Announced in the Union Budget 2014-15:
Aim to lay down a broad policy indicator of the direction in which the Government wished to take the
country.
Beginning of a journey towards a sustained growth of 7-8% or above in the next 3-4 years along with
macro-economic stabilisation that includes lower levels of inflation, lesser fiscal deficit and manageable
Current Account Deficit (CAD).

1. Expenditure Management Commission

2. Overhaul of Subsidy Regime

3. Goods and Services Tax (GST)

4. Tax Administration: Government committed to a stable and predictable taxation regime that would be

5. Foreign Direct Investment (FDI): The NDA Governments policy was to promote FDI selectively in sectors
where it helps the larger interest of the Indian Economy.

6. Bank Capitalisation: While preserving the public ownership, the capital of the banks would be raised by
increasing the shareholding of the people in a phased manner through sale of shares largely through retail to
common citizens of the country.

7. PSU Capital Expenditure: In the current financial year the PSUs would invest through capital investment a
total sum of Rs.2,47,941 crores to create a virtuous investment cycle.

8. Smart Cities: The Prime Minister Narendra Modi has a vision of developing One Hundred Smart Cities as
satellite towns of larger cities and by modernising the existing mid-size cities.

9. Skill India: Proposal to launch a national multi-skill programme called Skill India.

10. Pradhan Mantri Krishi Sinchayee Yojana: To improve access to irrigation, proposal to initiate the
scheme Pradhan Mantri Krishi Sinchayee Yojana.

11. Swatchh Bharat Abhiyan: The Government intends to cover every household by total sanitation by the
year 2019 the 150
th
year of the Birth anniversary of Mahatma Gandhi through Swatchh Bharat Abhiyan.

12. Shyama Prasad Mukherjee Rurban Mission: Shyama Prasad Mukherjee Rurban Mission would be
launched to deliver Integrated project based infrastructure in the rural areas, which would also include
development of economic activities and skill development.

13. Deendayal Upadhyaya Gram Jyoti Yojana: Deendayal Upadhyaya Gram Jyoti Yojana for feeder
separation would be launched to augment power supply to the rural areas and for strengthening sub-transmission
and distribution systems.

II. Impact of the Union Budget 2013-14 on Different Sectors:

1. Impact on the Economy:

The Union Budget 2014-15 proposed various measures for social, manufacturing and financial
sectors and consumers.

The Government would constitute an Expenditure commission which would look into various
aspects of expenditure reforms to be undertaken by the Government.

63

Proposal to overhaul the subsidy regime including food and petroleum subsidies and make it
more targeted while providing full protection to the marginalised, poor and SC/STs.

Hope of approving the legislative scheme which enables the introduction of . Goods and
Services Tax (GST)

Introduction of GST would streamline the tax administration, avoid harassment of the business
and result in higher revenue collection both for the Centre and the States.

Government committed to a stable and predictable taxation regime that would be investor
friendly and spur growth.

The NDA Governments policy was to promote FDI selectively in sectors where it helps the larger
interest of the Indian Economy.



Government expenditure as percentage of the GDP for 2014-15 proposed at 13.9%

2. Taxpayers:
No changes in the Income Tax rate
Exemption limit raised to 2.5 lakh for all taxpayers and to Rs.3 lakh for senior citizens
Tax deduction on home loan interest payments raised to Rs.2 lakh; people buying homes can save
Rs.15,000
Deductions available under Section 80C raised to Rs.1.5 lakh
PPF saving limit raised to Rs.1.5 lakh from 1 lakh
No relief for those earning more than one crore, the super-rich surcharge of 10% stays

3. Consumers:
Computer monitors, footwear, diamonds, small LCD/LED TVs, bath soaps become cheaper.
Cigarettes, gutka and aerated drinks become costly
Radio Taxis to cost more as the service would come under service tax.
Shopping up to Rs.45,000 abroad would not attract customs duty
No change in gold import duty

4. Corporates:
High-Level Committee under CBDT would be set up to review retrospective tax claims such as Vodafone.
Government promised a stable tax regime
Proposal to revive the Special Economic Zones (SEZs) and make them effective instruments of industrial
production, economic growth, export promotion and employment generation.
International settlement of Indian depository receipts

III. Implications of the Union Budget 2014-15:

A. Positive Aspects of the Budget 2014-15:

1. Budget Proposals would Work to Kick-Start a Moribund Economy and Usher in Inclusive Growth in
Line with the Governments Vision of Skilled and Digital India

2. Pragmatic, Growth-Oriented and Forward-Looking Budget that would Address the Aspirations of all
Sections of 125 Crore Indians

3. Budget Gives a New Direction to the Economy by Comprehensively Articulating the Governments
Approach in a Range of Areas to Meet the Expectations of the Stakeholders in the Indian Economy

4. Budget Gives Indications of a Credible Vision of Economic Governance Removal of Policy
Ambiguity, Efficient Administration and Implementation, Better Control of Government Expenditure

5. The Budget Boosts Infrastructure Development by Allowing Banks to Raise Long-Term Funds from
the Markets to Finance Infrastructure Projects
64

6. Budget Aims to Make the Financial Sector More Efficient

7. The Budget Sends a Positive Message for Investors to Invest in India in a Stable and Predictable Way

8. Budget Placed Considerable Emphasis on Agricultural Renewal and Agrarian Prosperity:

9. The Increase in Income-Tax Exemption Limit and the High Priority Accorded to Manufacturing and
Infrastructure would Boost Consumption

B. Criticism of the Budget 2014-15:

1. Most Proposals in the Budget Devoted to Providing Additional Funding to the UPA Programmes

2. Budget Lacked a Clear Roadmap on How to Achieve its Objectives

3. Budget Corporate-Friendly Exercise with Focus on FDI and PPP, A Recipe for Further Enriching the
Rich and Impoverishing the Poor

4. Budget Does Not Address Some of Challenges and Decisions Faced by the Economy Issues like
Retrospective Tax Resolution, The Rising Fuel/Food Subsidies, Governments Bank Ownership and
Land/Labour Law

5. FDI in Defence and Insurance would Undermine Self-Reliance and Growth of Domestic Industry and
Impact the Countrys Sovereignty and Security

6. The Budget Does Not Increase Allocations for Social and Rural Sectors

7. The Steps in the Overall Strategy of the Budget have Not been Integrated to Tell How they were going
to Help Solve the Countrys Problems

IV. Conclusion:

1. The Union Budget 2014-15 Brought Clarity in Tax Policies and would Bring the Impulses
Back into the Economy

2. On the Direct and Indirect Tax Side, the Main Focus of the Government was to Revive
Growth:
On the direct and indirect tax side, the main focus of the Government was to revive growth, to revive the
manufacturing sector, to take steps that would result in creation of jobs, to go in for tax rationalisation, to
reduce tax litigations and ambiguity in policies.

3. Reforms Indicated in the Union Budget 2014-15:

Union Budget 2014-15 indicated reforms in fuel subsidy, plan schemes and a push to the
disinvestment programme.

The Budget proposed the complete decontrol of diesel prices before March 2015 with the gap
between administered and market prices being eliminated.

The Direct Benefit Transfers (DBT) scheme for subsidies paid directly into Aadhaar-linked ban
accounts would continue

The Budget indicated a big push to the disinvestment programme with the Budget estimates for
disinvestment proceeds for the current year at Rs.63,000 crore

Another reform indicated by the Budget was proposed composition of the Union Governments
expenditure where the bulk of the revenue transfers to the States would go into the creation of
capital assets, rather than operational expenses.

Progressive reduction in debt-GDP ratio of the Government from the current 47 per cent to 41.4
per cent in 2016-17.

65
ii.4. RAILWAY bUDGET 2014-15

I. Introduction:

1. Fourth Largest Railway Network in the World: Indian Railways is the Fourth-largest
railway network in the world, but, in proportion to the population served, the track length is one
of the lowest in the world.

2. Large Railway Network Spread Over 64,000 Km: The Indian Railway network is spread
over 64,000 route kms and has about 7,083 stations.

3. 2001 - Integrated Transport Policy Enunciated to Provide Level Playing Fields to the
Various Transport Modes: In 1998, the Government recognised the railways as
infrastructure. In October 2001, an integrated transport policy was enunciated by the Planning
Commission with a view to make use of the various transport modes in the most optimal
manner by providing them with a level playing field.

4. Key Role of Railways and Roads in Transportation: About 95% of the traffic in India is
carried by rail and road. Roads are constructed with Government funds. With High speed
trains, transport by rail could compete with air travel up to a distance of 500 km, according to
rail experts.

II. Highlights of the Railway Budget 2014-15 (July 08, 2014):

The first Railway Budget of the National Democratic Alliance (NDA) Government under Prime
Minister Narendra Modi was presented by the Railway Minister D.V. Sadananda Gowda on
July 08, 2014.

1. Railway Finances:

A. Budget estimates for 2014-15:
Total Receipts Rs.1,64,374 crore
Total Expenditure Rs.1,49,176 crore

B. Annual Plan:

Total Rs.65,445 crore
Budgetary Support Rs.30,100
Railway Safety Fund Rs.2,200 crore
Public Private Partnership Rs.6,005 crore
Market Borrowing Rs.11,790 crore
Internal Resources Rs.15,350 crore

C. Project Backlog:

Rs. 5 Lakh crore required over the next 10 years to complete existing projects

66

2. Fare Revision:

There was no increase in fare in the Railway Budget 2014-15 but there would be
periodic revision in fares to adjust for increase in fuel cost.

On June 22, 2014, the Indian Railways announced an increase in the passenger
fares by 14.2 per cent and freight charges by 6.5 per cent. The increase was
affected from June 25, 2014.

The fare revision would generate an additional revenue of Rs.8,000 crore.

3. New Trains:

58 New Trains
5 Jansadharan, 5 Premium, 6 AC Express, 27 Express, 8 Passenger, 2 MEMU & 5
DEMU services

4. Bullet Trains and Diamond Quadrilateral Network:

Bullet Trains to be introduced starting off with the Mumbai-Ahmedabad sector

Diamond Quadrilateral Network of High Speed Rail for Metros

The Diamond Quadrilateral project of high speed trains is modelled on the
Golden Quadrilateral national highways programme and could provide special
high-speed corridors to link the four metros.

Plan to increase the speed of trains to 160-200 kmph in 9 sectors

5. Railway Infrastructure Development:

Cabinet approval sought to allow Foreign Direct Investment (FDI) in railway
infrastructure development.

Future railway projects to be managed through Public Private Partnership (PPP)
mode.

Developing select stations to global standards like newly developed airports
through PPP

6. Passenger Amenities:

Railway reservation system to be revamped into next generation e-ticketing
system

Booking tickets through mobile phones and Post Offices to be popularised

Wi-Fi services in all A1 and A category stations and select trains

40% increase in budget allocation for cleanliness and sanitation at stations

Battery-operated carts for differently-abled and senior citizens

Work stations on select trains on payment

67

Special package trains on pilgrim circuits; tourist trains

Mobile base wakeup call system for passengers

Introduction of branded ready-to-eat meals

7. Security:

International safety standards to be adopted

4,000 women RPF constables to ensure security of women passengers

17,000 RPF constables to be deployed at stations

Simulation centre to study causes of accidents

Ladies coaches to be escorted, extra care for women travelling alone

8. Railway Reforms:

Restructuring of the railway board to separate operations from policy

Close monitoring of the dedicated freight corridor project and transparency in
execution of projects

Project management groups to expedite projects

Incubation centres to harness new ideas

Railway University to train railway staff

III. Positive Aspects of the Railway Budget 2014-15:

1. Futuristic and Growth-Oriented Budget for the Common Man Aspiring for Better
Service, Speed and Safety: Prime Minister Narendra Modi congratulated the Railway
Minister for presenting a futuristic and growth-oriented Budget for the common people. He
stressed that the Railway Budget 2014-15 aspires for better services, speed and safety. It was
an effort to create a modern Railways contributing towards a developed India.

2. Revolutionary Budget A First Step towards putting Railways Back on Track and
Ensuring World-Class Services to Travellers: The Bharatiya Janata Party (BJP) said that
the Railway Budget 2014-15 was revolutionary and the first step towards putting Railways
back on track and ensuring world-class services to travellers.

3. Railway Budget 2014-15, sets Safety, Hygiene and Speed as Priority Areas for the
Indian Railways: The Union Home Minister Rajnath Singh said that the Railway Budget
2014-15 sets safety, hygiene and speed as priority areas for the Indian Railways. He was
confident that the Budget would put the Indian Railways back on the fast track of development
and expansion.

68

4. Practical and Execution Oriented Budget, Laying Emphasis on Implementation of
On-going Projects and Focusing on Monitoring Them: The Confederation of Indian
Industry (CII) chairman designate Sumit Mazumder said that the Railway Minister had
presented a practical and execution oriented Budget, laying emphasis on implementation of
on-going projects and focusing on monitoring them for an early closure. The CII also
appreciated the increased attention to improvement in passenger amenities and safety.

5. Budget Attempts a Balance Between Commercial and Social Obligations: The Indian
Industry also applauded the Railway Budget 2014-15 as an attempt to balance the commercial
and social obligations while trying to put the Indian Railways back on track.

6. Proposal to Finance Future Projects through PPP would Help Overcome the
Constraint of Low Investment, Enhance Connectivity and Accelerate Modernisation:
Indian Industry chiefs also welcomed the proposal of financing future rail projects through
Public Private Partnership (PPP) route that would help overcome the constraint of low
investment, enhance connectivity and accelerate the process of modernisation.

7. Focus on Passenger Amenities and Introduction of Bullet Trains and High Speed
Trains Addresses the Need for Modernisation of Indian Railways: Infrastructure experts
felt that the focus on passenger amenities in the Railway Budget 2014-15 and the introduction
of bullet trains, high speed trains, upgradation of IT infrastructure including the revamped next
generation e-reservation system were the steps in the right direction and addressed the need
for modernisation of the Indian Railways.

8. Budget Sets a Bold Target of Making the Railways the Backbone of Freight
Movement in the Country and Opens the Sector to Foreign Investment: Analysts point
out that the maiden Railway Budget of the NDA Government sets a bold target of making the
Railways the backbone of freight movement in the country and also opens the sector to foreign
investments with the proposal to allow FDI in rail projects.

9. Railway Budget 2014-15 Offers Three Messages Consolidation, Limited Populism
and Expansion with PPP: Analysts point out that the Railway Budget 2014-15 offers three
key messages consolidation, limited populism and expansion mainly through Public Private
Partnership.

IV. Criticism of the Railway Budget 2014-15:

1. Railway Budget 2014-15 Does Not Offer Any New Scheme, Plan, and Railway Line:
Former Railway Minister of the Congress Mallikarjun Kharge called the Railway Budget
2014-15 pro-rich and stressed that there was no new scheme, no new plan and no new
railway line.

2. Railway Budget Neither Outlined any Future Road Map nor did It Provide Any Long
Term Perspective: The Congress said that the Railway Budget 2014-15 neither outlined any
future road map nor did it provide any long term perspective for the railway sector.

3. Railway Budget Pro-Privatisation and Lacked Vision and Clarity: The Congress and
the Left Parties criticised the Railway Budget 2014-15 as pro-privatisation and lacking in
vision and clarity. It was pointed out that the Railway Budget ignored party-ruled States and the
promises made by the Railway Minister would remain unfulfilled.

69

4. West Bengal and the Eastern Part of the Country Ignored in the Railway Budget: The
Left Parties and the Trinamool Congress (TMC) said that West Bengal and the entire eastern
part of the country was ignored in the Railway Budget 2014-15. It was pointed out that the
Diamond Quadrilateral proposed in the Budget cannot happen by not keeping Kolkata in the
loop.

5. Railway Budget Full of Ideas and Policy Formulations but Lacked Concrete
Proposals to take the Indian Railways Forward: Analysts point out that the Railway Budget
2014-15 was full of ideas and policy formulations, but lacked concrete proposals or a road map
to take the Indian Railways forward. With the Railways having poor finances a course
correction was imperative to improve the operating ratio - total expenses as a percentage of
the revenue. The Railways spend 94 paise for every rupee earned leaving a surplus of only six
paise which cannot provide the investment required to complete the ongoing projects.

6. The Proposal to Finance Future Projects through PPP would Not Go Forward Without
Concrete Proposals for Land Utilisation: Analysts point out that proposal in the Railway
Budget 2014-15 to finance future projects through Public Private Partnership (PPP) would not
go forward without concrete proposals for land utilisation, or the development of major stations
on the lines of newly developed airports.

7. Markets React Negatively to the Railway Budget, Rail Stocks Crash: The markets
which expected some major policy announcements in the Railway Budget 2014-15 reacted
negatively with the Sensex losing 518 points and the stocks of companies dependent on the
Indian Railways called rail stocks plunging sharply.

V. Conclusion:

1. Railway Budget 2014-15, an Exercise in Balancing Competing Demands in a
Resource-Constrained Enterprise:

According to Anil Kakodkar, former Chairman of Atomic Energy Commission, the
Railway Budget 2014-15 was an exercise in balancing competing demands in a
resource-constrained enterprise.

He pointed out that it reflected a pragmatic approach at least in terms of the
statement of objectives, in somewhat qualitative terms.

2. Railway Minister Rightly Observed the Need to Harmonise the Functioning of
Railways as a Commercial Enterprise as Well as a Welfare Organisation:

Mr. Kakodkar pointed out that the Railway Minister D.V. Sadananda Gowda had
rightly observed the need to harmonise the functioning of the Indian Railways as
a commercial enterprise as well as a welfare organisation.

In view of the assets available with the Indian Railways, this harmony needs to be
brought about in a manner that is not exploitative of the poor, according to Mr.
Kakodkar.

70

3. Future of the Railways Depends for the Next Five Years would Depend on how Fast
Three Major Projects can be Activated The East-West Dedicated Freight Corridors,
Evacuation of Coal from Three Areas and Getting the Piecemeal Traffic Back:

Senior Railway officials point out that the after subsiding passenger operations the
Railways have freight to raise money but most of the existing tracks that carry
the bulk of the freight have become super saturated.

Industrial growth would depend on how fast the Railways could activate the
East-West Dedicated Freight Corridors (DFCs) Delhi-Mumbai, Delhi-Howrah
and others.

The railways could save foreign exchange and contribute to lowering the cost of
thermal power generation by taking the railway line to three coal rich regions
Tori-Kathuatia, Ib Valley and Bhupdeopur-Raigarh Mand area which have the
capacity to bring 100 million tonnes per annum (mtpa) of coal traffic, according to
railway officials.

The third area is to implement the Public Private Partnership (PPP) and the
Foreign Direct Investment (FDI) in railway projects to get the railway traffic back.

SUMMARY
I. Introduction:

1. Third Largest Railway Network in the World

2. Large Railway Network Spread Over 64,000 Km

3. 2001 - Integrated Transport Policy Enunciated to Provide Level Playing Fields to the Various Transport
Modes

4. Key Role of Railways and Roads in Transportation

II. Positive Aspects of the Railway Budget 2014-15:

1. Futuristic and Growth-Oriented Budget for the Common Man Aspiring for Better Service, Speed and
Safety

2. Revolutionary Budget A First Step towards putting Railways Back on Track and Ensuring
World-Class Services to Travellers

3. Railway Budget 2014-15, sets Safety, Hygiene and Speed as Priority Areas for the Indian Railways

4. Practical and Execution Oriented Budget, Laying Emphasis on Implementation of On-going Projects
and Focusing on Monitoring Them

5. Budget Attempts a Balance Between Commercial and Social Obligations

6. Proposal to Finance Future Projects through PPP would Help Overcome the Constraint of Low
Investment, Enhance Connectivity and Accelerate Modernisation

7. Focus on Passenger Amenities and Introduction of Bullet Trains and High Speed Trains Addresses the
Need for Modernisation of Indian Railways

8. Budget Sets a Bold Target of Making the Railways the Backbone of Freight Movement in the Country
and Opens the Sector to Foreign Investment

71

9. Railway Budget 2014-15 Offers Three Messages Consolidation, Limited Populism and Expansion
with PPP

III. Criticism of the Railway Budget 2014-15:

1. Railway Budget 2014-15 Does Not Offer Any New Scheme, Plan, and Railway Line

2. Railway Budget Neither Outlined any Future Road Map nor did It Provide Any Long Term Perspective

3. Railway Budget Pro-Privatisation and Lacked Vision and Clarity

4. West Bengal and the Eastern Part of the Country Ignored in the Railway Budget

5. Railway Budget Full of Ideas and Policy Formulations but Lacked Concrete Proposals to take the
Indian Railways Forward

6. The Proposal to Finance Future Projects through PPP would Not Go Forward Without Concrete
Proposals for Land Utilisation

7. Markets React Negatively to the Railway Budget, Rail Stocks Crash

IV. Conclusion:

1. Railway Budget 2014-15, an Exercise in Balancing Competing Demands in a Resource-Constrained
Enterprise:

It reflected a pragmatic approach at least in terms of the statement of objectives, in somewhat
qualitative terms.

2. Railway Minister Rightly Observed the Need to Harmonise the Functioning of Railways as a
Commercial Enterprise as Well as a Welfare Organisation:

Railway Minister D.V. Sadananda Gowda had rightly observed the need to harmonise the
functioning of the Indian Railways as a commercial enterprise as well as a welfare organisation.

In view of the assets available with the Indian Railways, this harmony needs to be brought about
in a manner that is not exploitative of the poor.

3. Future of the Railways Depends for the Next Five Years would Depend on how Fast Three Major
Projects can be Activated The East-West Dedicated Freight Corridors, Evacuation of Coal from Three
Areas and Getting the Piecemeal Traffic Back

72
ii.5. India ratified iaea
additional prototcol

I. Background:

On August 1, 2008 the IAEA Board of Governors adopted the Indian safeguards
agreement by consensus without a vote. The agreement was reached to place
Indian civilian nuclear facilities under the International Atomic Energy Agency (IAEA)
safeguards.

On October 10, 2008 the Indo-US Civil Nuclear Agreement was signed by India
and the US.

On March 15, 2009, the Additional Protocol was signed between India and the
IAEA

II. India Ratified the Additional Protocol with the IAEA (June 2014):

In June 2014, India ratified the Additional Protocol (AP) with the International
Atomic Energy Agency (IAEA).

The Additional Protocol with IAEA would cover only those nuclear facilities
which are monitored by the IAEA, and would have no bearing on the
non-safeguarded facilities used for building nuclear weapons.

The 20 facilities covered under the Additional Protocol are as follows:
Six facilities in the Nuclear Fuel Complex (NFC), Hyderabad
Unit 1 and 2 and two more facilities in Tarapur, Maharashtra
Units 1-6 of the Rajasthan Atomic Power Station
Units 1 and 2 of Kundankulam Nuclear Power Plant, Tamil Nadu
Kakrapar Atomic Power Station, Gujarat

Analysts point out that the Additional Protocol signed with India is less intrusive
than the model document signed by the IAEA with other Non-Nuclear Weapon
States.

The Additional Protocol would ensure the collection of data of Indias nuclear
exports, to guarantee that the material is not diverted for unauthorised use,
according to experts.

The Additional Protocol signed with India would facilitate regular visits of IAEA
personnel by providing them with multi-entry visas apart from guaranteeing free
communication generated by the surveillance or measurement devices of the
IAEA that are already installed in facilities that are under international safeguards.

III. Significance of the Ratification of the Additional Protocol with the IAEA:

The ratification of the Additional Protocol by India was timed to coincide with a
meeting of the Nuclear Suppliers Group (NSG) in late June 2014.

India aspires to join the Nuclear Suppliers Group (NSG) - a 48-member body - that
controls transfers of nuclear goods globally.

73

Indias ratification of the Additional Protocol has strengthened its case for NSG
membership which would create openings for easier access to advanced nuclear
technology, according to analysts.

Indias membership of the NSG would help India in protecting its core interests
as it has not signed the Nuclear Non-Proliferation Treaty (NPT).

In September 2008 the NSG lifted sanctions on India following the Indo-US
nuclear deal.

Following the NSG waiver, Russia, France, the UK, South Korea, Canada,
Argentina, Kazakhstan, Mongolia and Namibia signed bilateral civilian nuclear
cooperation agreements with India.

Analysts point out that the ratification of the Additional Protocol by India enhanced
Indias credentials as a country committed to non-proliferation, as the transfer of
data on Indias nuclear exports is the core element of the Additional Protocol.

The Additional Protocol signed with the IAEA fulfils Indias commitment in the
Indo-US joint statement of July 2005, which stated that India would conclude an
Additional Protocol with the IAEA.

The ratification of the Additional Protocol would also send the right signals
before the Prime Ministers visit to the US in September 2014, according to
analysts.

Analysts feel that the ratification of the Additional Protocol is tied to the NDA
Governments push for enhancing energy security, which would have a
significant nuclear component.

The US, France, Japan and others could now enhance the level of civilian nuclear
trade with India, according to analysts.

SUMMARY
I. Background:

On August 1, 2008 the IAEA Board of Governors adopted the Indian safeguards agreement by
consensus without a vote

On October 10, 2008 the Indo-US Civil Nuclear Agreement was signed by India and the US.

On March 15, 2009, the Additional Protocol was signed between India and the IAEA

II. India Ratified the Additional Protocol with the IAEA (June 2014):

In June 2014, India ratified the Additional Protocol (AP) with the International Atomic Energy
Agency (IAEA).

The Additional Protocol with IAEA would cover only those nuclear facilities which are monitored
by the IAEA, and would have no bearing on the non-safeguarded facilities used for building
nuclear weapons.

The 20 facilities covered under the Additional Protocol are as follows:
Six facilities in the Nuclear Fuel Complex (NFC), Hyderabad
Unit 1 and 2 and two more facilities in Tarapur, Maharashtra
Units 1-6 of the Rajasthan Atomic Power Station
Units 1 and 2 of Kundankulam Nuclear Power Plant, Tamil Nadu
Kakrapar Atomic Power Station, Gujarat
74

Additional Protocol signed with India is less intrusive than the model document signed by the
IAEA with other Non-Nuclear Weapon States.

The Additional Protocol would ensure the collection of data of Indias nuclear exports, to
guarantee that the material is not diverted for unauthorised use

The Additional Protocol signed with India would facilitate regular visits of IAEA personnel by
providing them with multi-entry visas apart from guaranteeing free communication generated by
the surveillance or measurement devices of the IAEA

III. Significance of the Ratification of the Additional Protocol with the IAEA:

The ratification of the Additional Protocol by India was timed to coincide with a meeting of the
Nuclear Suppliers Group (NSG) in late June 2014.

India aspires to join the Nuclear Suppliers Group (NSG) - a 48-member body - that controls
transfers of nuclear goods globally.

Indias ratification of the Additional Protocol has strengthened its case for NSG membership
which would create openings for easier access to advanced nuclear technology

Indias membership of the NSG would help India in protecting its core interests as it has not
signed the Nuclear Non-Proliferation Treaty (NPT).

In September 2008 the NSG lifted sanctions on India following the Indo-US nuclear deal.

Following the NSG waiver, Russia, France, the UK, South Korea, Canada, Argentina, Kazakhstan,
Mongolia and Namibia signed bilateral civilian nuclear cooperation agreements with India.

Ratification of the Additional Protocol by India enhanced Indias credentials as a country
committed to non-proliferation, as the transfer of data on Indias nuclear exports is the core
element of the Additional Protocol.

The Additional Protocol signed with the IAEA fulfils Indias commitment in the Indo-US joint
statement of July 2005

The ratification of the Additional Protocol would also send the right signals before the Prime
Ministers visit to the US in September 2014

Ratification of the Additional Protocol is tied to the NDA Governments push for enhancing
energy security, which would have a significant nuclear component.

The US, France, Japan and others could now enhance the level of civilian nuclear trade with India

75
iii. world economy
1. W.T.O. (Update)

1. India Refused to Ratify the Trade Facilitation (TF) Protocol at the WTO
Meeting (Geneva, July 02, 2014):

On July 02, 2014, India protested against the imbalance in favour of developing
countries at the ongoing World Trade Organisation (WTO) negotiations in
Geneva.

India refused to ratify the Trade Facilitation (TF) agreement as a follow up to the
Bali Ministerial decisions of December 2013.

India said that it would support the TF agreement only if there was progress in
the ongoing negotiations in Geneva on mechanisms for ensuring permanent
protection of the Governments Minimum Support Price (MSP) against the WTOs
subsidy caps.

India was deeply concerned that the Ministerial Decision on Public Stockholding
for Food Security purposes was getting sidelined. Members had been attempting to
divert attention of policies and programmes of select developing country members.

There was growing disenchantment, anguish and anger in Indias domestic
constituencies and a sense of dj vu as once again they saw the interests of
developing countries being subordinated to the might of the developed world,
India said in its statement.

It was agreed at the Doha Round that the WTO would correct the faulty subsidy
rules that mighty countries had thrust upon in the 1990s, these rules suited the
subsidy systems of the developed countries and not the developing ones even
though the subsidies that the developed countries gave were much larger and
far more trade distorting than the developing ones, according to Indian officials.

SUMMARY
1. India Refused to Ratify the Trade Facilitation (TF) Protocol at the WTO Meeting (Geneva, July
02, 2014):
India protested against the imbalance in favour of developing countries at the ongoing World
Trade Organisation (WTO) negotiations in Geneva
India refused to ratify the Trade Facilitation (TF) agreement as a follow up to the Bali Ministerial
decisions of December 2013.

India said that it would support the TF agreement only if there was progress in the ongoing
negotiations in Geneva on mechanisms for ensuring permanent protection of the Governments
Minimum Support Price (MSP) against the WTOs subsidy caps.

India was deeply concerned that the Ministerial Decision on Public Stockholding for Food
Security purposes was getting sidelined

There was growing disenchantment, anguish and anger in Indias domestic constituencies and a
sense of dj vu as once again they saw the interests of developing countries being
subordinated to the might of the developed world

It was agreed at the Doha Round that the WTO would correct the faulty subsidy rules that mighty
countries had thrust upon in the 1990s, these rules suited the subsidy systems of the developed
countries and not the developing ones even though the subsidies that the developed countries
gave were much larger and far more trade distorting than the developing ones
76
iv. defence - national
1. THE NAXALITE PROBLEM

I. Introduction:

1. Naxalites: The naxalites or naxals is an informal name given to revolutionary communists
groups waging a violent struggle to establish a 'people's government' through a 'people's war'.
They claim to represent the oppressed people like the landless labourers, dalits and adivasis
against the powerful like the landlords.

2. The Naxalite Movement:

The naxalite movement began as a peasant uprising in Naxalbari, a village in
West Bengal in 1967.

In the 1970s the naxalite movement gained cadre in urban India.

In the 1980s the naxalite movement retreated to rural India from Andhra Pradesh
up to Nepal.

3. Two Major Groups of Naxalites Merged in 2004 to Form the Communist Party of India
(Maoist): Two major groups involved in violent activities over the years have been the
Communist Party of India (Marxist-Leninist) People's War or People's War Group (PWG) and
the Maoist Communist Centre (MCC). The two groups merged in 2004 to form the Communist
Party of India (Maoist).

4. Left-Wing Extremist Violence has Affected 76 Districts Across 10 States:

States Severely Affected by Left-Wing Extremism: Chhattisgarh, Jharkhand,
Odisha and Bihar.

States Partially Affected by Left Wing Extremism: West Bengal, Maharashtra,
Andhra Pradesh and Telangana.

States Slightly Affected by Left Wing Extremism: Uttar Pradesh and Madhya
Pradesh

5. International Linkages:
The then Union Home Minister P. Chidambaram said that there was evidence of
Maoists acquiring arms through Bangladesh, Myanmar and possibly Nepal.
The naxal groups have linkages in Peru, Philippines, Turkey, Bangladesh and Bhutan.
Naxal groups plan a passage between Nepal, India, Sri Lanka and Bangladesh.
Naxalites use the sea route to enter Sri Lanka. Those from Central and Eastern India
enter Bangladesh and Myanmar via Assam.

6. Change in Character of the Naxalite Movement: Analysts point out that in the process of
spreading its base, the naxal movement has undergone a change in character. It is no longer
confined to agrarian concerns but represents the dalit and tribal identities and also supports
ethnic and regional concerns. It supports the demand for a separate Telangana State in
Andhra Pradesh and tries to represent the rights of dalits in Bihar.

77

7. Politics of Terror the Unifying Character of Different Naxal Groups: Analysts point out
that the belief in politics of terror and violence are the unifying characters of the different naxal
groups.

8. Development Schemes for Districts Affected by Left Wing Extremism:

A. The Additional Central Assistance (ACA):

Focus on creation of public infrastructure and services

Scheme covers 88 districts include the 76 affected ones

Rs.30 crore of fund allocation per district per year till the end of XII Plan (2017).

B. The Road Requirement Plan (RRP-I):

The RRP is being implemented in 34 affected districts since 2009-10 with the
targeted completion date of March 31, 2105.

Total length covered in 8 affected districts 5,447 km

Length completed by RRP 3,075 km

Estimated Cost 7,300 crore

II. Background:

1. Chhattisgarh Worst Hit by Naxal Violence:

2007 - Naxal Attack on Police Base camp in the Bastar Region: On March 15, 2007, 54 persons,
including 15 personnel of the Chhattisgarh Armed Force, were killed in an offensive by 300 to 350 CPI
(Maoist) cadres on a police base camp in the Bastar region. The remaining victims were tribal youths of
the Salwa Judum, designated as Special Police Officers (SPOs) to combat the naxal menace.

May - 2007, Nine Policemen Killed in the Bastar Region: On May 28, 2007, nine policemen were killed
by the Maoist extremists in the Bastar region of Chhattisgarh. The policemen on an anti-naxal patrol in a
remote area were killed in a series of landmine explosions and a volley of gunfire.

Maoists Killed More Security Personnel in Chhattisgarh than in any other State: According to the
date compiled by the Institute of Conflict Management, Maoists had killed more security personnel in
Chhattisgarh in 2005, 2006 and 2007 than in any other States.

2. Reasons behind the Increase in Naxal Violence in Chhattisgarh:

A. Salwa Judum (Anti-Naxal Campaign) is Based in Dantewada District of Chhattisgarh:

Self-Initiated People's Movement for Peace: Salwa Judum or the 'march for peace' is a spontaneous,
self-initiated people's movement for peace. Analysts point out that it is an officially-sponsored
anti-insurgency campaign against Naxalites in Dantewada district of Chhattisgarh. 'Operation Salwa
Judum' started from January 2005 when police launched operations to mobilise villagers against the
Maoists.

Increased Naxal Violence Against Salwa Judum Activists Leads to Large-Scale Exodus of People
in Chhattisgarh: Analysts point out that although the Salwa Judum is a peace campaign it has
nevertheless led to increased naxal violence in Chhattisgarh. The Naxalites have launched some violent
attacks against the activists of Salwa Judum in 2006 leading to large-scale exodus of people in the
Dantewada district in Chhattisgarh. The people took shelter in Relief camps.

78

B. Huge Forest Cover: Analysts point out that the Dantewada district of Chhattisgarh, the target of naxal
violence, has a huge forest cover which is used by the naxalites to escape after attacks.

C. Borders with Other States: The Dantewada district of Chhattisgarh shares borders with Andhra Pradesh,
Orissa and Maharashtra. This makes it easy for the naxalites to escape to other States after attacks.

D. Merger of Two Major Extremist Groups Led to the Increase in Naxal Activity in Chhattisgarh: Analysts
point out that the merger two major extremist groups - the People's War Group and the Maoist Communist Centre
of India - led to the marked increase in naxal activity in Chhattisgarh in the past three years.

3. Supreme Court Disapproves Arming of Salwa Judum:

On March 31, 2008, the Supreme Court expressed its disapproval of the constitution of the 'Salwa
Judum' (self-defence groups) by the Chhattisgarh Government and giving them arms to tackle the
naxalite menace.

The two-judge Bench headed by Chief Justice K.G. Balakrishnan pointed out that the State would be
abetting in a crime if these private persons killed others.

The Bench was hearing a petition filed by Nandini Sundar, Ramachandra Guha and E.A.S. Sarma
challenging the setting up of Salwa Judum. The petitioners alleged that in the guise of countering the
naxalite movement, the Salwa Judum was indulging in killings and committing atrocities against
tribals.

The counsel for the petitioners said that the National Commission for Protection of Child Rights had
visited the camps and submitted a report on the sorry state of affairs at the camps where people
caught in the crossfire between naxalites and the Salwa Judum have been rehabilitated. He
wanted the Court to set up a committee to visit the camp.

4. Supreme Court Asks the Chhattisgarh Government to Implement NHRC Recommendations
on Salwa Judum: On September 19, 2008 the Supreme Court asked the Chhattisgarh Government to
implement some of the recommendations of the National Human Rights Commission (NHRC). On the directions
of the Supreme Court the NHRC had probed the allegations and submitted its report making various
recommendations to the State Government.

5. Supreme Court Asks the Chhattisgarh Government to File ATR on the Findings of the NHRC
Report: On December 16, 2008 the Supreme Court directed the Chhattisgarh Government to file an Action
Taken Report (ATR) on the findings of the NHRC on the allegations of atrocities committed by Salwa Judum
against innocent people.

6. Response of the Chhattisgarh Government:

On February 5, 2009 the Chhattisgarh Government submitted that it had taken firm action on the
findings of the NHRC on allegations of atrocities committed by the Salwa Judum against innocent
people.

The Chhattisgarh Government said that it ordered payment of compensation and had undertaken
rehabilitation measures and that residents of camps would be given rations and health protection.

FIRs (First Information Report) were registered wherever recommended, the Chhattisgarh
Government told the Court.

The Salwa Judum was slowly disappearing and does not exist, the Chhattisgarh Government
informed the Court.

79

7. Naxal Violence in Lalgarh Area of West Bengal - June 2009:

A. Protests against Police Atrocities by Activists of the Maoists-backed PSBJC:

PSBJC Activists Attack Police Post and Ransack a CPI (M) Office and Torch Houses of CPI (M)
Leaders: On June 15, 2009 the situation in the troubled Lalgarh area of Paschim Medinipur district in
West Bengal, turned violent as the activists of the Maoist-backed local resistance group - The Police
Santrosh Birodhi Janashadharaner Committee (PSBJC) (Peoples Committee against Police Atrocities)
allegedly set ablaze, a police outpost, ransacked an office of the CPI (M) and torched the houses
belonging to the partys leaders.

Violence Attributed to the Power Struggle between CPI (M) and the Maoists-backed PSBJC: The
violence in Lalgarh was attributed to the power struggle between the ruling CPI (M) and the Maoists
backed PSBJC which was trying to extend its sphere of influence beyond those parts of Lalgarh declared
by it as out of bounds to the police.

PSBJC was set up in November 2008 to provide leadership to a pre-dominantly tribal agitation
against alleged excesses of the police while trying to track down those responsible for the Salboni
blast.

Maoists using Tribals as Human Shields to Further their Goal of Establishing a Corridor through
Lalgarh to Other Parts of the State: The West Bengal Government expressed concerns that the
naxalites were using tribals as human shields to further their goal of establishing a corridor through
Lalgarh to other parts of the State.

The Maoists wanting to create terror in West Bengal were entering the State from adjoining
Jharkhand.

PSBJC Hinted at Establishing a Parallel Administration in Lalgarh: The convener of the allegedly
Maoist-backed PSBJC hinted at establishment of a parallel administrative system. He called for
strengthening the outfits units in the areas where it had gained control from the CPI (M).

B. Central Paramilitary Forces Launch Operation Against Maoists and the PSBJC in Lalgarh
and other Areas:
On June 18, 2009, the Central Paramilitary Forces and the State Armed Police launched an
offensive against the Maoists and the PSBJC who had been active in Lalgarh for more than seven
months.

The operation aimed to flush out left-wing extremists from 18 thana areas in the southwest
region.

The security forces reclaimed Lalgarh on the third day of their operation to drive out the Maoists.

Lalgarh had been under the control of Maoists since November 2008.

The security forces were able to free nearly 95 per cent of Lalgarh and its adjoining areas from
Maoists since the operation began, the then West Bengal Chief Minister Buddhadeb Bhattacharjee
told a Cabinet Committee on June 29, 2009.

Most of the extremists had fled toward Jharkhand, while some went into hiding in parts of the
neighbouring Purulia district, according to the Chief Minister of West Bengal.

8. Centre Bans CPI (Maoists):

On June 22, 2009 the Centre banned the Communist Party of India (Maoist) terming it a terrorist
organisation.

The CPI (Maoist) came into existence following the merger of the Communist Party of India
(Marxist-Leninist), the Peoples War Group (PWG) and the Maoist Communist Centre (MCC).

The Unlawful Activities (Prevention) Act (UAPA) enabled the Centre to declare an association
unlawful under Section 3. It also contained a definition of terrorist organisation in Section 2 (1) (m) and
the terrorist organisations were listed in the schedule of the Act.

80

Many States including Andhra Pradesh, Madhya Pradesh and Chhattisgarh had declared the CPI
(Maoist) an unlawful association. Bihar, Orissa, Jharkhand and Tamil Nadu had done so under the
unlawful Activities (Prevention) Act

West Bengal Chief Minister said that the State had to accept the Unlawful Activities (Prevention)
Act (UAPA) as it was passed by Parliament. However, it would not be enforced indiscriminately in
West Bengal.

9. Armed Forces Not to be Involved in Anti-Naxal Operations:

Army could give Logistic Support by way of Training to Police Forces: The then Defence Minister
A.K. Antony made it clear in February 2008 that the Army would not be involved in operations against the
naxalites. He stressed that the Army could give logistic support by way of training to police forces but
would not be involved directly.

If the Army is used for every situation, it would become another police or paramilitary force,
according to Mr. Antony. He stressed that the Army should be used only as the last resort. The
Government has to be discreet in using the Army for civilian law and order purposes.

Army Chief Against the Army being Dragged into Tackling the Naxal Problem: The then Chief of
Army Staff General Deepak Kapoor has also expressed his opposition to the 1.13 million strong Indian
Army, already involved in counter-militancy operations in Jammu and Kashmir and North-East, being
dragged into tackling the naxal problem as well.

The Army is willing to assist in training Central Police Organisations (CPOs) and other security
forces in combating naxalism. Already, 85 companies of CPOs have been trained by the Army.

The Army is also helping naxal-affected States like Chhattisgarh, Jharkhand, Orissa and Bihar to
raise auxiliary forces of ex-servicemen to help mine detection, counter improvised explosive devices
and other jobs.

The Army is guiding the Union Home Ministry and the Government in naxal-affected States on
procurement of explosive detection equipment and sophisticated jammers.

In October 2009, the then Prime Minister Manmohan Singh said that the Government was not in favour
of use of Armed Forces against Maoists. There were other instruments - police and paramilitary forces
adequate to tackle them, according to Dr. Singh.

The then Union Home Minister P. Chidambaram said that the Indian Air Force (IAF) would take
adequate counter-measures if the naxals fire upon its helicopters and crew operating in
Maoist-hit areas.

10. Armys Stand:

The naxalite problem is a law and order problem, which is a State subject. It stems from certain
issues on the ground, be it of governance, be it of administration, be it of socio-economic factors,
according to the then Army Chief Vijay Kumar Singh.

Since the naxalite problem it was not a secessionist movement, and Indian polity is astute and wise
enough to know the implications of using the Army against their own people, according to the Army
Chief.

The Army Commanders Conference in May 2010 was scheduled to discuss the naxalism
problem.

Naxalism is a security challenge and the Army has to discuss it. This did not mean that the Army
was directly joining the battle against the naxals, according to Army officials.

The Army is already providing training and advise to the Central Paramilitary as well as State
Police forces.

The Army had already trained almost 200 companies of State Police forces and Paramilitary
battalions.

81

11. Air Forces Stand:

The then IAF Chief, Air Chief Marshal P.V. Naik said that he was not in favour of using air power
against naxalites.

The use of air power in internal security duties was not a viable option since it could lead to
heavy collateral damage in terms of innocent civilians being killed on the ground, according to the
IAF Chief.

It was up to the State Governments concerned to assess the situation and decide on using air
power in the anti-naxal operations, according to the IAF Chief.

The IAF has currently deployed four Mi-17 helicopters for reconnaissance, logistical and casualty
evacuation duties in the anti-naxal operations.

12. Naxal Violence in the Dantewada District of Chhattisgarh (April-May 2010):
On April 06, 2010, naxalites or Maoist rebels killed 74 members of the Central Reserve Police Force
(CRPF) and two policemen from the Chhattisgarh police, and also destroyed an Armoured Personnel
Carrier (APC) in the Dantewada district.

13. Naxals Attack CRPF Men in Chhattisgarh (June 29, 2010):
On June 29, 2010, Naxals attacked the 39 Battalion of the Central Reserve Police Force (CRPF) in
Chhattisgarhs Narayanpur district killing 27 personnel.

14. Supreme Court Declared Salwa Judum Illegal (July 5, 2011):

On July 5, 2011, the Supreme Court declared illegal and unconstitutional the deployment of tribal
youth as Special Police Officers (SPOs) - either as Salwa Judum, Koya Commandos or any other
force - in the fight against the Maoist insurgency. The Court ordered their immediate disarming.

The Supreme Court ruling was issued on the writ petition filed by social anthropologist Professor
Nandini Sundar and others.

The Court said that the State of Chhattisgarh should forthwith make every effort to recall all
firearms issued to any of the SPOs, whether current or former.

The Supreme Court directed Chhattisgarh to immediately cease and desist from using SPOs in
any manner or form in any activities, directly, or indirectly aimed at controlling, countering,
mitigating or otherwise eliminating Maoist/Naxalite activities.

The Court held that the policy of the State violated the rights under Article 14 and 21 of the
Constitution of those being employed as SPOs and used in counter-insurgency measures against
Maoists/Naxalites, as well as of citizens living in those areas.

The Supreme Court said that the primordial value is that it was the responsibility of every organ
of the State to function within the four corners of Constitutional responsibility. That was the
ultimate rule of law.

15. State Governments Stand:

The Chief Minister of Chhattisgarh Raman Singh said that the State would go for a review petition
on the Supreme Courts ruling disbanding and disarming Special Police Officers (SPOs).

The Chief Minister pointed out that other States like Madhya Pradesh, Jharkhand and Jammu and
Kashmir have something equivalent to the SPOs in the form of village defence committees as the
first line of defence against naxals or other insurgents.

82

III. New Governments First Review Meeting of Left Wing Extremism:

On June 27, 2014, the Union Home Minister Rajnath Singh chaired a meeting of
Chief Secretaries and Police Chiefs of 10 Left Wing Extremism-affected States
and the Chiefs of the Central Armed Police Forces (CAPFs).

The Union Home Minister assured that enough funds would be provided to
States to equip and modernise the police forces.

It was emphasised that any attack by Maoists should be retaliated effectively and
States were asked to allocate more funds for new projects in the affected areas.

Mr. Singh ruled out talks with the Maoists but stressed that the Government
would adopt a balanced approach to resolve the problem through administrative
leadership and political commitment.

The Home Minister said that the Central forces would give a befitting reply if
attacked.

The Centre would raise funds for an elite commando force on the lines of the
Greyhounds of Andhra Pradesh. This force would be for other Left Wing
extremism-affected States like Chhattisgarh, Jharkhand, Bihar and Odisha.

The meeting also discussed the performance of different States in
counter-insurgency measures, anti-Left Wing Extremism operations, road
connectivity and installation of mobile towers.

As Prime Minister Narendra Modi had accorded high priority on improving Centre-State
relations, the Centre would respond positively to suggestions of the States in
overcoming the Naxal extremism in a coherent and cohesive manner, according
to the Union Home Minister.

The road construction and telecom connectivity would be taken up on a priority
basis, according to Mr. Singh.

The meeting also decided that the Centre would micro-manage the ongoing road
construction works in Naxal violence-affected States to ensure their completion
in a time-bound manner.

IV. Conclusion:

1. Solution to Naxalism:

Stopping the leakages in Governments policy implementation, creating jobs and
delivering healthcare and educational services, according to analysts.

The West Bengal Chief Ministers proposal to recruit tribals in the police force is
a positive step as it makes them stakeholders in the peace process, according to
analysts.

Observers feel that the Maoists should give up arms and engage in peaceful talks
to take forward the peace process.

83

2. Identifying the Socio-Economic Problems which Provide Ground for the Growth of
Naxalism: Analysts point out that State Governments need to identify the socio-economic
issues that provide a fertile ground for the growth of naxalism, especially in tribal areas and
pockets. The socio-economic issues relate to the following
A lack of development, the non-availability of land
The absence of basic health and education
Transport and communication
Infrastructure.
When these problems are neglected over the years they lead to violence.

3. Modernising the Police Force:
Analysts point out that the attack by Maoists on the ERF camp in West Bengal indicate
that the police forces in States are not adequately trained to tackle the violence
unleashed by the Maoists.

For effectively tackling the Maoist violence, States need to create the kind of
infrastructure built by Andhra Pradesh where the Greyhounds counter-insurgency
force demonstrated that the Maoist units crumble when confronted by a skilled police
force, according to analysts.

The Centre has extended its cooperation in terms of modernising the police
force and providing funds to support the developmental projects in tribal areas.

The Centre and the State Governments need to draw up a clear map to build a
modern police infrastructure to effectively tackle the naxal menace, according to
analysts.
SUMMARY
I. Introduction:

1. Naxalites: An informal name given to revolutionary communists groups waging a violent struggle to
establish a 'people's government' through a 'people's war'.

2. The Naxalite Movement:
The Naxalite movement began as a peasant uprising in Naxalbari, a village in West Bengal in 1967.
In the 1970s the Naxalite movement gained cadre in urban India.
In the 1980s the Naxalite movement retreated to rural India from Andhra Pradesh up to Nepal.

3. Two Major Groups of Naxalites Merged in 2004 to Form the Communist Party of India (Maoist)

4. Left-Wing Extremist Violence has Affected 76 Districts Across 10 States:
States Severely Affected by Left-Wing Extremism: Chhattisgarh, Jharkhand, Odisha and Bihar.
States Partially Affected by Left Wing Extremism: West Bengal, Maharashtra, Andhra Pradesh and
Telangana.
States Slightly Affected by Left Wing Extremism: Uttar Pradesh and Madhya Pradesh

5. International Linkages

6. Change in Character of the Naxalite Movement: No longer confined to agrarian concerns but
represents the Dalit and tribal identities and also supports ethnic and regional concerns

7. Politics of Terror the Unifying Character of Different Naxal Groups

8. Development Schemes for Districts Affected by Left Wing Extremism

A. The Additional Central Assistance (ACA):
Focus on creation of public infrastructure and services
Scheme covers 88 districts include the 76 affected ones
Rs.30 crore of fund allocation per district per year till the end of XII Plan (2017).
84

B. The Road Requirement Plan (RRP-I): Being implemented in 34 affected districts since 2009-10 with
the targeted completion date of March 31, 2105.

II. New Governments First Review Meeting of Left Wing Extremism:

On June 27, 2014, the Union Home Minister Rajnath Singh chaired a meeting of Chief Secretaries
and Police Chiefs of 10 Left Wing Extremism-affected States and the Chiefs of the Central Armed
Police Forces (CAPFs).

The Union Home Minister assured that enough funds would be provided to States to equip and
modernise the police forces.

It was emphasised that any attack by Maoists should be retaliated effectively and States were
asked to allocate more funds for new projects in the affected areas.

Ruled out talks with the Maoists but stressed that the Government would adopt a balanced
approach to resolve the problem through administrative leadership and political commitment.

Central forces would give a befitting reply if attacked.

The Centre would raise funds for an elite commando force on the lines of the Greyhounds of
Andhra Pradesh

The meeting also discussed the performance of different States in counter-insurgency measures,
anti-Left Wing Extremism operations, road connectivity and installation of mobile towers.

The Centre would respond positively to suggestions of the States in overcoming the Naxal
extremism in a coherent and cohesive manner, according to the Union Home Minister.

The road construction and telecom connectivity would be taken up on a priority basis

The Centre would micro-manage the ongoing road construction works in Naxal violence-affected
States to ensure their completion in a time-bound manner.

III. Conclusion:

1. Solution to Naxalism:
Stopping the leakages in Governments policy implementation, creating jobs and delivering healthcare
and educational services
The West Bengal Chief Ministers proposal to recruit tribals in the police force is a positive step as it
makes them stakeholders in the peace process
The Maoists should give up arms and engage in peaceful talks to take forward the peace process.

2. Identifying the Socio-Economic Problems which Provide Ground for the Growth of Naxalism:
A lack of development, the non-availability of land
The absence of basic health and education
Transport and communication
Infrastructure.
When these problems are neglected over the years they lead to violence.

3. Modernising the Police Force:
The police forces in States are not adequately trained to tackle the violence unleashed by the
Maoists.

For effectively tackling the Maoist violence, States need to create the kind of infrastructure built
by Andhra Pradesh

The Centre has extended its cooperation in terms of modernising the police force and providing
funds to support the developmental projects in tribal areas

The Centre and the State Governments need to draw up a clear map to build a modern police
infrastructure to effectively tackle the naxal menace

85
iv.2. Defence Modernisation &
Maritime Security

1. Prime Minister Dedicated Indias Largest Warship INS Vikramaditya to
the Nation (June 14, 2014):

On June 14, 2014, Prime Minister Narendra Modi dedicated Indias largest
warship, the Russian-made aircraft carrier INS Vikramaditya, to the nation.

The Prime Minister, on board of INS Vikramaditya off the Goa coast, said that it
was an important day for the nation and a golden day in the history of Indian
Navy.

Addition of INS Vikramaditya would add tremendous might to the Indian Navy,
according to Mr. Modi.

2. Prime Minister Called for Self-Reliance and Modernisation of Indias
Defence Infrastructure FDI in the Defence Sector Raised to 49%:

Prime Minister Narendra Modi said that the Government was focused on
modernisation of the countrys defence infrastructure.

Mr. Modi emphasised on the infusion of new technology and indigenisation to
produce weapons and platforms.

The Prime Minister indicated that Indian-made military hardware could find a
market in countries belonging to the South.

The Prime Minister conveyed the perception that the Armed Forces were also an
engine for boosting the economy, according to analysts.

For reviving domestic manufacturing in the defence sector, the Government
raised the Foreign Direct Investment (FDI) cap to 49% in the defence sector with the
prior approval of the Foreign Investment Promotion Board (FIPB).

The current FDI cap in the defence sector was 26% although higher FDI could be
allowed on a case-by-case basis.

Raising the FDI in the defence sector would attract top foreign defence
manufacturers like Boeing, British Aerospace, Rolls Royce and several others with
investments potentially in billions of dollars.

The Government could also open the defence sector to encourage local
manufacturing of defence items currently imported by the country, according to
analysts.

Defence and Finance Minister Arun Jaitley assured the Armed Forces that the
Government was working towards finding funds for expediting acquisition
process.

86

3. Indias Defence Modernisation Since the 1999 Kargil Conflict:

Since the 1999 Kargil conflict, India has signed defence deals over $50 billion,
majority of them with foreign countries like Russia, Israel, France, UK and the US,

Currently a major part of the arms requirement of the Indian Armed Forces is
imported and India would remain a major arms importer for quite some time, although
the Government is focusing on indigenisation.

The current big defence projects in the pipeline:
The $11 billion project to acquire 126 Medium Multi-Role Combat Aircraft
(MMRCA)
The over $2.1 billion deal for the Mirage-2000 fighter upgrade with France
The $4.1 billion deal for 10 C-17 Globemaster-III strategic airlift aircraft with the
US.

The Navy is set to acquire six new-generation stealth submarines worth Rs.
50,000 crore.

The Indo-Russian project to build Sukhoi T-50 fifth generation fighter aircraft is
another mega project. The IAF was likely to induct 250 to 300 of the fifth generation
fighter aircraft from 2020 onwards. The estimated cost of the project is $35 billion.

4. Armys Plan to Modernise Artillery:
Ultra-light howitzers, being pursued through foreign military sales.
Tracked and wheeled self-propelled guns
Multiple barrel long range rocket systems
Cruise missiles
Surveillance systems

5. Modernisation of the Air Force:
The induction of first of the three Airborne Warning and Control System (AWACS)
The AWACS are described as a force multiplier
Radars and Aerostat acquisitions
Modern business jets for ferrying VVIPs
Programme to seek new trainer aircraft along with attack and heavy lift helicopters.

6. Maritime Security:
During his interaction with the personnel on board INS Vikramaditya, the Prime
Minister stressed upon the importance of keeping the sea lanes open to boost
commerce.

Analysts point out the presence of the Prime Minister Narendra Modi on board INS
Vikramaditya signalled Indias aspiration of establishing a footprint on the Indian
Ocean where there were several competing powers.

The Prime Minister called for the establishment of a robust maritime
infrastructure.

The Prime Minister witnessed naval and aerial manoeuvres and the ceremonial
steam past of warships belonging to the western fleet past the INS
Vikramaditya.
87
SUMMARY

1. Prime Minister Dedicated Indias Largest Warship INS Vikramaditya to the Nation (June 14,
2014):
On June 14, 2014, Prime Minister Narendra Modi dedicated Indias largest warship, the
Russian-made aircraft carrier INS Vikramaditya, to the nation.

The Prime Minister, on board of INS Vikramaditya off the Goa coast, said that it was an important
day for the nation and a golden day in the history of Indian Navy.

Addition of INS Vikramaditya would add tremendous might to the Indian Navy

2. Prime Minister Called for Self-Reliance and Modernisation of Indias Defence Infrastructure
FDI in the Defence Sector Raised to 49%:

Prime Minister Narendra Modi said that the Government was focused on modernisation of the
countrys defence infrastructure.

Mr. Modi emphasised on the infusion of new technology and indigenisation to produce weapons
and platforms.

The Prime Minister indicated that Indian-made military hardware could find a market in countries
belonging to the South.

The Prime Minister conveyed the perception that the Armed Forces were also an engine for
boosting the economy

For reviving domestic manufacturing in the defence sector, the Government raised the Foreign
Direct Investment (FDI) cap to 49% in the defence sector

The current FDI cap in the defence sector was 26% although higher FDI could be allowed on a
case-by-case basis.

Raising the FDI in the defence sector would attract top foreign defence manufacturers

The Government could also open the defence sector to encourage local manufacturing of
defence items currently imported by the country

Defence and Finance Minister Arun Jaitley assured the Armed Forces that the Government was
working towards finding funds for expediting acquisition process.

3. Indias Defence Modernisation Since the 1999 Kargil Conflict:

Since the 1999 Kargil conflict, India has signed defence deals over $50 billion

Currently a major part of the arms requirement of the Indian Armed Forces is imported
The current big defence projects in the pipeline:
The $11 billion project to acquire 126 Medium Multi-Role Combat Aircraft (MMRCA)
The over $2.1 billion deal for the Mirage-2000 fighter upgrade with France
The $4.1 billion deal for 10 C-17 Globemaster-III strategic airlift aircraft with the US.

The Navy is set to acquire six new-generation stealth submarines worth Rs. 50,000 crore.

The Indo-Russian project to build Sukhoi T-50 fifth generation fighter aircraft is another mega
project

4. Maritime Security:
Prime Minister stressed upon the importance of keeping the sea lanes open to boost commerce.

Presence of the Prime Minister on board INS Vikramaditya signalled Indias aspiration of
establishing a footprint on the Indian Ocean where there were several competing powers.

The Prime Minister called for the establishment of a robust maritime infrastructure.
The Prime Minister witnessed naval and aerial manoeuvres and the ceremonial steam past of
warships belonging to the western fleet past the INS Vikramaditya.
88
iv.3. FDI IN DEFENCE

I. Government Proposed to Increase the FDI in Defence to 49% in the Union
Budget 2014-14:

India is the largest buyer of Defence equipment in the world. The countrys
domestic manufacturing capacities were still at a nascent stage. It was buying
substantial part of its Defence requirements directly from foreign players,
Finance and Defence Minister Arun Jaitley said in his speech while presenting the
Union Budget 2014-15 in the Parliament on July 10, 2014.

Companies controlled by foreign governments and foreign private sector were
supplying Indias Defence requirements at a considerable outflow of foreign
exchange.

Currently India permits 26% Foreign Direct Investment (FDI) in Defence
Manufacturing.

The Government Proposed to increase the FDI in Defence Manufacturing to 49%
with full Indian management and control through the Foreign Investment
Promotion Board (FIPB) route.

II. Debate over FDI in Defence:

1. Arguments Against FDI in Defence:

FDI in defence would finish the nascent Indian Defence industry and would result
in dumping of obsolete technology on India.

Allowing more FDI in Defence would lead to handing over the control of
manufacturing critical defence equipment in India to a foreign entity.

D. Raja of CPI said that Foreign Direct Investment (FDI) in Defence and Insurance
sectors would undermine self-reliance and growth of domestic industry and
impact the countrys sovereignty and security.

2. Arguments in Favour of FDI in Defence:

FDI in Defence is required as the Indian Defence industry is nascent and the lack
of technology is leading nowhere.

FDI in Defence with transfer of technology would help Indias nascent Defence
industry.

Manufacturing of weapons using the latest technology in the country by foreign
Defence manufacturers would instil a sense of security, save the revenue spent
on imports and benefit the economy through a multiplier effect.

The Indian Defence industry needs Rs.50,000 crore in the next three years to
fulfil the requirement of the Governments Defence procurement plan. The public
sector units do not have the resources to make this kind of investment and the private
industry is concerned over the risks of making such an investment.

89

FDI in Defence Manufacturing could help in buying the latest technology through
government to government interactions.

FDI in Defence can consolidate national security by ensuring that the technology
is utilised to manufacture weapons and equipment within the country.

FDI in Defence could also help in obtaining the state-of-the-art technology which
is not available in the open market.

With certain precautions, FDI could be the best option to boost domestic
Defence manufacturing.
SUMMARY
I. Government Proposed to Increase the FDI in Defence to 49% in the Union Budget 2014-14:

India is the largest buyer of Defence equipment in the world. The countrys domestic
manufacturing capacities were still at a nascent stage. It was buying substantial part of its
Defence requirements directly from foreign players

Companies controlled by foreign governments and foreign private sector were supplying Indias
Defence requirements at a considerable outflow of foreign exchange.

Currently India permits 26% Foreign Direct Investment (FDI) in Defence Manufacturing.

The Government Proposed to increase the FDI in Defence Manufacturing to 49% with full Indian
management and control through the Foreign Investment Promotion Board (FIPB) route.

II. Debate over FDI in Defence:

1. Arguments Against FDI in Defence:

FDI in defence would finish the nascent Indian Defence industry and would result in dumping of
obsolete technology on India.

Allowing more FDI in Defence would lead to handing over the control of manufacturing critical
defence equipment in India to a foreign entity.

Foreign Direct Investment (FDI) in Defence and Insurance sectors would undermine self-reliance
and growth of domestic industry and impact the countrys sovereignty and security.

2. Arguments in Favour of FDI in Defence:

FDI in Defence is required as the Indian Defence industry is nascent and the lack of technology is
leading nowhere.

FDI in Defence with transfer of technology would help Indias nascent Defence industry.

Manufacturing of weapons using the latest technology in the country by foreign Defence
manufacturers would instil a sense of security, save the revenue spent on imports and benefit
the economy through a multiplier effect.

The Indian Defence industry needs Rs.50,000 crore in the next three years to fulfil the
requirement of the Governments Defence procurement plan

FDI in Defence Manufacturing could help in buying the latest technology through government to
government interactions.

FDI in Defence can consolidate national security by ensuring that the technology is utilised to
manufacture weapons and equipment within the country.

FDI in Defence could also help in obtaining the state-of-the-art technology which is not available
in the open market.
With certain precautions, FDI could be the best option to boost domestic Defence manufacturing.

90
v. FOREIGN POLICY
1. DIRECTION OF INDIAS FOREIGN
POLICY
I. Background:

1. Definition: Foreign Policy can be defined in a broad sense as the sum total of the Principles, Aims and
Objectives which a country evolves in conducting its relations with other countries.

2. Foreign Policy during Cold War: Indias first Prime Minister, Mr. Jawaharlal Nehru laid down the broad
parameters of Indias foreign policy. These were based on the twin concept of Non-Alignment and Panch-Sheel.
This policy was followed by India during the Cold War period.

3. Non-Aligned Policy: Indias non-alignment policy was designed to not only stay out of the blocs system but
also to try and bring the blocs together on various issues as far as possible.

4. Transformation of Indias Foreign Policy Objectives in the Nineties:

a. National Security and economic interests gained a prominent place in foreign policy thinking.

b. The CTBT became a crucial test to Indias assertion of an autonomous security policy.

c. The `look East policy signalled Indias awareness of economic imperatives in an increasingly globalising world.

d. With the establishment of the WTO, India had to work out a new strategy to facilitate economic growth. There
was better understanding about the inevitability of marketisation and expanding global financial markets.

5. Gujral Doctrine: named after the former Prime Minister, Mr. I.K. Gujral it was based on the compelling vision
for regional cooperation and Indias readiness to go the extra mile in achieving it.

6. Challenges on the Foreign Policy Front:
According to the late J.N. Dixit, former National Security Adviser, the challenges that face Indias foreign policy
are as follows:

a. Safeguarding Unity of the Country: The highest priority should be to ensure the continuity, unity and
territorial integrity of India. The foreign policy would have to create a regional atmosphere and equations with
important powers of the world to prevent external encouragement to the centrifugal forces affecting the country.

b. Peace and Stability: Indias foreign policy should ensure an atmosphere of peace and stability in which India
can focus on its economic development. Along with an appropriate domestic economic policy a foreign economic
policy should also be formulated to ensure the necessary financial, technological and foreign trade inputs to meet
Indias developmental requirements.

c. National Defence Capacities: Indias unity and territorial integrity can be protected by creating national
defence capacities. These capacities should primarily rely on indigenous resources and technologies based on a
balanced and sufficiently diversified pattern of external inputs.

d. Strengthen Regional Cooperation: Strengthening regional cooperation and working for mutually beneficial
equations between South Asian and other regional groups will ensure peace and stability and long-term security
and economic well-being.

e. Strengthen the UN: The UN, its organs and its specialised agencies should be strengthened keeping in mind
two goals:
To enable the UN to truly reflect the interests and aspirations of the majority of its members.
To restrict to the extent possible the UNs becoming an instrumentality of super power policies.

91

II. The Parameters of a Strategic Partnership:

In current foreign policy discussions, strategic partnership is one of the most
widely used phrases.

Relations between countries is defined in terms of partnership and alliance, but when
the relationship is described as strategic, it is seen as raising the ties to a new
level, according to analysts.

The word strategic is defined as relating to long-term interests and goals and
hence a strategic partnership would mean a long-term shared interests and ways
of achieving them, according to analysts.

Strategic partnerships between countries cover a wide range of bilateral
relations including defence, economic relations (trade, investment, banking),
education, health and agriculture.

Currently, India has strategic partnership agreements with more than 12
countries. This is seen as an acknowledgement of Indias growing economic clout, its
democracy and shared values with the democratic world, its neighbourhood and it
having the worlds second largest population.

A study conducted by the Foundation for National Security Research assessed
Indias strategic partnerships with six countries - Russia, the US, U.K., France,
Germany and Japan.

The study graded Indias strategic partnerships based on the dividends they
have given to India in terms of political and diplomatic ties, defence ties and
economic ties. Based on these parameters the strategic partnerships were graded on
a 10-point scale for present performance, sustainability and potential.

Indo-Russian strategic partnership was graded first with Russia consistently
backing India on Kashmir, Pakistan, Afghanistan and terrorism. Moreover, Russia
was most comfortable with Indias rise while sharing Indias concerns on the
implications of Chinas rise. Indo-Russian defence is strong with India sourcing most of
its military hardware from Russia and civilian nuclear cooperation with Russia is better
than the Indo-US nuclear deal. However, Russia scores the least on trade relations as
the annual trade between the two countries is just over $5 billion.

Indo-US strategic partnership which started in 2004 comes second. According to
the study, the US support for India on Kashmir, Pakistan and Afghanistan as
insubstantial and inconsistent. The US support for Indias permanent membership
of the UNSC is seen as the weakest. However, Indo-US trade relations are the best with
a lot of potential for the future.

Indo-Japanese strategic partnership is seen as the least developed and the
potential would be slow to realise.

The study concludes that India should bestow the strategic partnership
nomenclature to only those countries with which there is a strong and mutually
beneficial relationship in the areas of political, diplomatic, defence and economic
cooperation.

92

III. Five Key Aspects of the New Governments Policy:

Analysts point out that the foreign policy priorities listed by the President Pranab
Mukherjee in his address to the First Joint Sitting of both Houses of Parliament on June
09, 2014, five key aspects can be deduced as follows:

1. Foreign Policy of Enlightened National Interest:

A strong, self-reliant and self-confident India would pursue a foreign policy of
enlightened national interest.

Analysts feel that enlightened national interest would lead to the possibilities of
creating cooperative outcomes including ensuring peace with one, while not
letting down the other.

2. Focus on Neighbourhood:

Analysts point out that the foreign policy would focus on neighbourhood where
India would help in building a democratic, peaceful, stable and economically
interlinked neighbourhood.

Analysts point out that Prime Minister Narendra Modis invitation to the SAARC
leaders to attend his swearing-in ceremony clearly sent a message to the region
and beyond, including China that the new government in India intends to
proactively engage the region.

The Indian Prime Ministers invitation was accepted by the SAARC leaders and
beyond including the Prime Minister of Mauritius Navin Ramgoolam, boosting Indias
centrality to the region.

Analysts point out that the new Prime Minister Narendra Modis invitation to SAARC
leaders has raised huge expectations in South Asia regarding his foreign policy.

Prime Minister Narendra Modi also held bilateral talks with the SAARC leaders
during their visit to India for the swearing-in ceremony.

In late June 2014, the Government convened a meeting of envoys of South Asian
countries, China, Central Asian Republics, Iran and Myanmar as part of Prime
Minister Narendra Modis policy of increasing engagement with immediate
neighbours and extended neighbourhood.

Prime Minister Narendra Modis visit to Bhutan on June 15-16, 2014, and External
Affairs Minister Sushma Swarajs visit to Bangladesh on June 25-27, 2014,
pointed to the emphasis on neighbourhood in the new Governments foreign
policy.

3. Emphasis on Soft Power, 5Ts Trade, Tourism, Talent, Technology and Tradition:

The new Governments foreign policy also lays emphasis on soft power to
persuade others based on the attractiveness of their technology, politics,
culture, idea or ideals.

India would offer the world 5 Ts Trade, Tourism, Talent, Technology and
Tradition
93

4. Multi-Alignment Policy:

The new Governments foreign policy indicated that it would adopt a
multi-alignment policy with all major powers.

The Government would work with China to develop a strategic and cooperative
partnership.

The Government would work with Japan to build modern infrastructure.

The Government would build on the firm relations with Russia.

The Government would bring renewed vigour in Indias engagement with the US
and to operationalise the civil nuclear agreement.

It would make efforts to achieve progress in key areas with European Union and
its leading members.

5. Willing to Raise Issues of Concern at a Bilateral Level:

Analysts point out that another key element of the new foreign policy is the
willingness to raise issues of concern at the bilateral level.

Prime Minister Narendra Modi raised all issues of concern in his bilateral
meetings with the SAARC leaders after his swearing-in ceremony.

India has made it clear that stability can be built in the region only if there is an
end to the export of terrorism.

IV. Conclusion:

1. Foreign Policy to Help Reviving the Economy and make India a Major Player on the
Global Stage: Analysts feel that the foreign policy of the Narendra Modi Government is
focussed on realising the twin goals of reviving the economy and making India a major player
on the global stage.

2. Foreign Policy has an Integrated Approach to Adapt to Challenges of a Complex
Interdependent World: Analysts point out that the new Governments foreign policy reflects a
thoughtful and integrated approach that would help the country in adapting to the challenges of
a complex interdependent world which requires greater coordination in confronting common
global threats.
SUMMARY

I. The Parameters of a Strategic Partnership:

In current foreign policy discussions, strategic partnership is one of the most widely used
phrases.

When the relationship is described as strategic, it is seen as raising the ties to a new level

The word strategic is defined as relating to long-term interests and goals and hence a strategic
partnership would mean a long-term shared interests and ways of achieving them

Strategic partnerships between countries cover a wide range of bilateral relations including
defence, economic relations (trade, investment, banking), education, health and agriculture.

Currently, India has strategic partnership agreements with more than 12 countries
94

A study conducted by the Foundation for National Security Research assessed Indias strategic
partnerships with six countries - Russia, the US, U.K., France, Germany and Japan.

The study graded Indias strategic partnerships based on the dividends they have given to India
in terms of political and diplomatic ties, defence ties and economic ties

Indo-Russian strategic partnership was graded first with Russia consistently backing India on
Kashmir, Pakistan, Afghanistan and terrorism

Indo-US strategic partnership which started in 2004 comes second. According to the study, the
US support for India on Kashmir, Pakistan and Afghanistan as insubstantial and inconsistent.

Indo-Japanese strategic partnership is seen as the least developed and the potential would be
slow to realise.

India should bestow the strategic partnership nomenclature to only those countries with which
there is a strong and mutually beneficial relationship

II. Five Key Aspects of the New Governments Policy:

1. Foreign Policy of Enlightened National Interest:

A strong, self-reliant and self-confident India would pursue a foreign policy of enlightened
national interest.

Enlightened national interest would lead to the possibilities of creating cooperative outcomes
including ensuring peace with one, while not letting down the other.

2. Focus on Neighbourhood:

The foreign policy would focus on neighbourhood where India would help in building a
democratic, peaceful, stable and economically interlinked neighbourhood.

Prime Minister Narendra Modis invitation to the SAARC leaders to attend his swearing-in
ceremony clearly sent a message to the region and beyond, including China that the new
government in India intends to proactively engage the region.

The Indian Prime Ministers invitation was accepted by the SAARC leaders and boosting Indias
centrality to the region.

Prime Minister Narendra Modis invitation to SAARC leaders has raised huge expectations in
South Asia regarding his foreign policy.

Prime Minister Narendra Modi also held bilateral talks with the SAARC leaders during their visit
to India for the swearing-in ceremony.

In late June 2014, the Government convened a meeting of envoys of South Asian countries,
China, Central Asian Republics, Iran and Myanmar as part of Prime Minister Narendra Modis
policy of increasing engagement with immediate neighbours and extended neighbourhood.

Prime Minister Narendra Modis visit to Bhutan on June 15-16, 2014, and External Affairs Minister
Sushma Swarajs visit to Bangladesh on June 25-27, 2014, pointed to the emphasis on
neighbourhood in the new Governments foreign policy.

3. Emphasis on Soft Power, 5Ts Trade, Tourism, Talent, Technology and Tradition

4. Multi-Alignment Policy: The new Governments foreign policy indicated that it would adopt a
multi-alignment policy with all major powers.

5. Willing to Raise Issues of Concern at a Bilateral Level: India has made it clear that stability can be
built in the region only if there is an end to the export of terrorism.

III. Conclusion:
1. Foreign Policy to Help Reviving the Economy and make India a Major Player on the Global Stage
2. Foreign Policy has an Integrated Approach to Adapt to Challenges of a Complex Interdependent World
95
v.2. INDO-BHUTAN RELATIONS

I. Introduction:

1. Indo-Bhutan Relations Governed by the Friendship Treaty Updated in 2007: The
relations between India and Bhutan are governed by the 1949 Indo-Bhutan Friendship Treaty
which was updated in 2007. The updated Treaty Freed Bhutans external relations from India,
but still subjected the Bhutans security needs to supervision.

2. Indias Financial Assistance to Bhutans Five-Year Development Plans:

Since 1961, India has provided financial assistance to Bhutans five-year
development plans.

In 2013, India committed Rs.4,500 crore for the period up to 2018.

The Indo-Bhutan ties also include cooperation and investment in infrastructure
development, health, education and hydropower projects.

3. Trade and Energy Ties:

India accounts for more than 90 per cent of Bhutans exports and imports.

Bhutan supplies India with 1,416 MW of power from its three major hydroelectric
power projects.

In 2013, there was a problem between the two countries on the decision of
Bhutan to raise power tariffs and delay in projects.

The problem was sorted out at a meeting in April 2014 when India and Bhutan signed
the framework Inter-Governmental Agreement for the development of joint
venture hydropower projects through the public sector undertakings of the two
Governments.

4. Security:

From India's security point of view a democratic, friendly and confident Bhutan
is very significant.

Although Bhutan is a small nation it is strategically very important for India.

India and Bhutan have a 699 km common border which is manned by the
Sashastra Seema Bal (SSB) on the Indian side and the Royal Bhutan Army (RBA)
on the Bhutan side.

The Indian Army maintains a training mission in Bhutan called the Indian Military
Training Team which is responsible for the military training of the RBA.

The RBA has close ties with India where its officers are also trained. The RBA
depends on Indias eastern air command for air assistance.

In 2003, Bhutan had launched Operation All Clear to dismantle the camps of
ULFA, Bodo insurgents and the KLO (Kamtapur Liberation Organisation) from
southern Bhutan.

96

The Indian Army played a key role in the operation where 30 camps of the
anti-India terror groups were dismantled.

Currently, Bhutan has assured India that it would soon launch an operation to
flush out anti-India insurgent groups active in West Bengal and the northeastern
States operating from its territory.

Bhutan is expected to launch the operation in the coming months to flush out the
KLO and insurgent groups of northeastern India.

The KLO was seeking a separate State of Kamtapur including six districts of
West Bengal and four districts of Assam.

5. Bhutans Transition to Democracy:

Bhutan has undergone radical changes from a monarchy to a democracy.

In 2013, Bhutan held its second democratic elections where for the first time
resentment against India was openly expressed for the cutting of fuel subsidies.

The Peoples Democratic Party (PDP) led by Tshering Tobgay won a majority 32
seats in the 47-seat National Assembly.

The ruling Druk Phuensum Tshogpa (DPT) could win only 15 seats.

PDP focused on the strained relations with India, where it laid the blame for
Indias withdrawal of subsidy to Bhutan for cooking gas and kerosene among
other things on the mishandling by the ruling DPT.

6. Chinas Growing Ties with Bhutan:

China has is trying to establish formal ties with Bhutan, where it does not have a
diplomatic mission despite sharing a 500 km border with Bhutan.

China and Bhutan have to resolve the border issue with the Chinese territorial
claims in western Bhutan close to the Siliguri Corridor, called the Chickens
Neck, the narrow strip of land connecting West Bengal to the Northeastern
States of India.

China and Bhutan have held many rounds of talks on the border issue but have
not come close to resolution.

India was surprised by the previous Bhutanese Prime Minister Jigme Thinley
reaching out to China and establishing diplomatic ties with many other countries
without taking India into confidence.

The new Prime Minister of Bhutan Tshering Tobgay has said that his government
would deepen the understanding and goodwill existing between India and
Bhutan, so that both countries can move forward with total trust and confidence in each
other.

97

II. Background:

1. Bhutans Crackdown on Anti-India Militants (December 2003):

A. Military Operation:
Launch of Operations: On December 15, 2003, the Royal Bhutan Army launched a crackdown on
anti-India militants camping on its soil for the last 12 years.

Troops Involved: 7,000 soldiers belonging to the Royal Bhutan Army took part in the operation to flush
out 3,000 anti-India militants. The Bhutan Army has been trained by the Indian Army. The Indian Army
took necessary measures to intercept movement of militants from Bhutan to India.

Bhutans First Combat: The operation to flush out anti-India militants was Bhutans first combat in 138
years.

Rebel Bases in Bhutan: United Liberation Front of Asom (ULFA), the National Democratic Front of
Bodoland (NDFB) and the Kamtapur Liberation Organisation (KLO) have 13, 12 and five camps
respectively in the Bhutanese territory that were used to train cadres, store arms and ammunition and
launch surprise attacks inside India.

Camps Destroyed and Militants Neutralised: The military operation by the Royal Bhutan Army
destroyed 30 camps including the Central Command Headquarters of the ULFA. About 650 militants
were neutralised of which 150 were killed.

Bhutan Handed Over the Ultras to India: On December 20, 2003, the Indian Army Chief, N.C. Vij, said
that Bhutan had handed over seven captured militants to the Indian Army. The militants handed over to
the Indian Army included key underground leaders.

B. Bhutans Stand:
Military Action After Peace Efforts Were Exhausted: According to the Bhutan Embassy, the Army had
been asked to remove militant elements after six years of consistent and strenuous efforts to find a
peaceful solution to the problem had failed and the process of a peaceful dialogue fully exhausted.

Militant Camps a Threat to Bhutans Sovereignty and National Security: According to the Bhutan
Embassy statement, the militants camps had become a direct threat to Bhutans sovereignty and
national security. Their long term presence had undermined the peace, stability and socio-economic
development enjoyed by the Bhutanese people.

C. Indias Stand:

India Informed About the Operation: According to Indias then External Affairs Minister, Yashwant
Sinha, Bhutans then King Jigmye Singye Wangchuk telephoned Indias then Prime Minister, Atal Behari
Vajpayee and informed him of the impending action.

India Promised Assistance to Flush Out the Militants: Mr. Sinha told the Rajya Sabha that India had
promised Bhutan whatever assistance it required to flush out the militants.

Blow to Terrorists Activities in the Entire Region: Mr. Sinha pointed out that the launch of operations
against the anti-India militants in Bhutan has struck a blow against terrorism and terrorist activities in the
entire region. It was also emphasised that the action would prevent further loss of innocent lives in
terrorist activities.

Cements the Strong Friendship and Cooperation between India and Bhutan: The Bhutan
crackdown on anti-India militants would promote peace, stability and security in the region and further
cement the strong friendship and cooperation between India and Bhutan, according to Mr. Yashwant
Sinha.

2. Significance of Bhutans Crackdown on Anti-India Militants:

Turning Point in Bilateral Ties: Bhutans offensive against rebels from Indias North-East could be seen
as a turning point in bilateral relations, according to Indias then Deputy Prime Minister, L.K. Advani. India
is Bhutans biggest trading partner as well as the major provider of development aid. There is an excellent
rapport between Bhutan and India despite such unequal relationship. India has not pressurised Bhutan
on the issue of insurgents, instead, engaged it in quiet diplomacy.
98

Addressed Indias Security Concerns: Analysts feel that the military action by Bhutan against
anti-India militants in its southern jungles goes a long way in addressing Indias security concerns in the
region. The operation is a set back to the ULFA which has been involved in spreading terror in Assam.
Since the early 1990s much of ULFAs terrorism has originated from its bases in Bhutan.

Signalled Importance of Security Cooperation in South Asia: Analysts point out that Bhutans
offensive against the Northeast rebels from India, signalled the importance of security cooperation in
South Asia. The fact that Bhutan took India into confidence about the impending offensive points to a
diplomatic appreciation of regional cooperation. If such cooperation is emulated by other countries in the
region it could clear the bitterness and generate enormous goodwill leading to the strengthening of
commercial as well as developmental cooperation.

Commendable Action by Bhutan: Analysts point out that the then King of Bhutan deserves to be
commended for his resolve to play his full partnership role in the South Asian community. Bhutan which
has a 265-km border with India has found the presence of Northeast insurgents a growing hindrance to its
governance of the region. Bhutans Government thought it wiser to act before the situation worsened.

3. New Bhutan King's Visit to India (February 8, 2007):

A. New Indo-Bhutan Friendship Treaty Signed: On February 8, 2007, India's External Affairs Minister
Pranab Mukherjee and Bhutan's new King Jigme Khesar Namgyel Wangchuck signed a new Indo-Bhutan
Friendship Treaty in New Delhi in the presence of the Prime Minister Manmohan Singh. The new Treaty updates
the August 4, 1949 Indo-Bhutan Friendship Treaty.

B. Updated Treaty Removed Provisions that had become Obsolete: According to a MEA spokesperson, the
updated Indo-Bhutan Friendship Treaty removed provisions that had become obsolete over time. The text of the
Treaty was not made public.

C. Highlights of the Updated Indo-Bhutan Friendship Treaty:

Bhutan No Longer Guided by India on Foreign Affairs:
Article 2 of the 1949 Treaty stressed that the Government of India undertakes no interference in the
internal administration of Bhutan. On its part, the Government of Bhutan agrees to be guided by the
advice of the Government of India in regard to its external relations.
The Article 2 of the updated Treaty has dropped the provision of India's guidance on Bhutan's external
affairs. It emphasises that Bhutan and India shall cooperate closely with each other on issues relating to
their national interests.

Neither Government Would Allow the Use of Its Territory for Activities Harmful to the National
Security and Interest of the Other, according to the Updated Treaty.

Bhutan Does Not Require India's Approval to Buy Arms and Ammunition:
The 1949 Treaty required Bhutan to take assistance and approval of India for the import of arms,
ammunition and machinery.
The updated Treaty stated: "The Government of India agrees that the Government of Bhutan shall be free
to import, from or through India into Bhutan, whatever arms, ammunition, machinery, warlike material, or
stores as may be required or desired for the strength and welfare of Bhutan.... as long as the Government
of India is satisfied that the intentions of the Government of Bhutan are friendly and there is no danger to
India from such importations.

New Clause on Extradition in the Updated Treaty: There is a new clause that deals with extradition in
the updated Treaty. Analysts point out that this is critical in view of the fact that anti-India rebels had,
previously, set up training camps in Bhutan, which had to be cleared by military action.

New Treaty Includes Provisions for Expanding Cooperation in the Economic and Other Fields:
The updated Indo-Bhutan Friendship Treaty includes fresh provisions for expanding economic relations
and cooperation in the fields of science and technology, education, health, sports and culture. It also
contains a reference to cooperation in the hydroelectric sector.

No Change in the Treatment of Nationals of Both Countries and Free Trade Regime: The MEA
spokesperson stressed that the updated Treaty does not envisage a change in the treatment of nationals
of both countries, or in the free trade regime between the two nations. Under the old Treaty both countries
are obliged to accord national treatment to each other's citizens.

99

D. Significance of the New Treaty:

Goodwill Gesture by India When Bhutan is Moving Towards Implementing Constitutional
Democracy: The move is seen as a goodwill gesture by India when Bhutan is moving towards
implementing Constitutional democracy. King Jigme Khesar also stressed that India and Bhutan have
signed the Treaty of Friendship to usher in the momentous changes that would come to Bhutan in 2008.

Signing of the Treaty Symbolised India's Commitment to Global Equality: The King of Bhutan said
that the signing of the new Treaty symbolised India's commitment to liberty, global equality and justice
and confirmed its rightful role as a leader in international affairs.

A step Towards Modernising India's Primacy in the Neighbourhood: Analysts point out that India's
old Friendship Treaty with Bhutan was unequal and could have been counter-productive in the long-run.
India has rightly concluded that such a treaty was neither credible nor sustainable. The updated Treaty
signifies the political recognition that India's primacy in the neighbourhood could be ensured by
leveraging its geographic, cultural and economic strengths, according to analysts.

4. Indian Prime Minister's Visit to Bhutan (May 16-17, 2008):

First Visit by an Indian Prime Minister to Bhutan in 15 Years: Indian Prime Minister Manmohan Singh
visited Bhutan on May 16-17, 2008. This was the first visit by an Indian Prime Minister in 15 years.

5. Bhutan Kings Visit to India (December 21-23, 2009):

First State Visit to Country After his Formal Coronation as the Fifth King of Bhutan: The King of
Bhutan Jigme Khesar Namgyel Wangchuck visited India in December 2009. This was his first visit to a
country after his formal coronation as the fifth King of Bhutan in 2008.

India and Bhutan Signed 12 Pacts Including 4 MoUs for Hydel Projects: The pacts included setting
up of a superspeciality hospital, preventing drug trafficking, expanding air services, promoting
e-governance and e-literacy, cooperating in search and rescue, providing technical help to the National
Environment Secretariat of Bhutan and aiding in the setting up of a Bhutanese national transmission grid.

Memorandum of Understanding (MoUs) on Power Projects:

India would import 10,000 MW from Bhutan by 2020 under an accelerated hydel power
development agreement.

Four MoUs on initiating the detailed project reports (DPRs) on hydel projects was inked under the
60-year umbrella agreement signed in 2006.

Under the MoUs signed, the projects would generate over 3,500 MW.

The aim was to extract economically feasible power from the four major rivers - Torsa, Wangchu
(Raidak), Sankosh and Manas.

The projects would ease power shortage in eastern India and also earn revenue for Bhutan.

Bhutan currently produced about 1,500 MW from the existing power projects of which 80 per cent
is sold to India.

Due to the sale of power, Bhutan enjoys a trade surplus of Rs.414 crore with India which would
further grow when the new projects are implemented.

100

III. Indian Prime Ministers Visit to Bhutan (June 15-16, 2014):

1. First Bilateral Visit by Indias New Prime Minister Narendra Modi:

Indias Prime Minister Narendra Modi visited Bhutan from June 15-16, 2014.

It was the first bilateral visit by Indias new Prime Minister.

Prime Minister Narendra Modi was accompanied by the External Affairs Minister
Sushma Swaraj, National Security Adviser Ajit Doval and Foreign Secretary
Sujatha Singh.

2. B4B Ties:

Indian Prime Minister Narendra Modi met his Bhutanese counterpart Tshering
Tobgay and the King Jigme Khesar Namgyel Wangchuk.

Mr. Modi vowed to nurture Indo-Bhutan bilateral relations which he described as
B4B Bharat should stand for Bhutan and Bhutan for Bharat.

The primary focus of both the meetings was the extensive development
cooperation between the two countries and measures to enhance the economic
ties, according to officials.

India was committed to Bhutans happiness and progress, according to the Indian
Prime Minister.

Peace, security, development and tourism were the areas specified by the Indian
Prime Minister to push bilateral ties.

3. Indian Prime Minister Inaugurated the Supreme Court Complex and Unveiled the
Foundation Stone of a 600 MW Hydropower Project:

Indian Prime Minister Narendra Modi inaugurated the Supreme Court complex in
Bhutan built by India.

Mr. Modi also unveiled the foundation stone of the 600 MW Kholongchu hydropower
project between the Public Sector Units (PSUs) of India and Bhutan SJVNL and
Druk Green Power Corporation.

The project is located in eastern Bhutan and the construction would commence
in the later part of 2014.

4. Doubling of Scholarships to Bhutanese Students and Assistance for a Digital
Library:

Prime Minister Modi announced the doubling of scholarships being provided to
Bhutanese students in India to Rs.2 crore.

India also promised to assist Bhutan in setting up a digital library.

5. Stepping Up Security Ties:

India and Bhutan decided to step up their security ties to cover security interests
and cooperation in a wide variety of fields.
101

India and Bhutan agreed to closely cooperate on issues of national interests and
not to allow each others territory to be used for interests inimical to each other.

The two sides expressed satisfaction with the cooperation between the two
countries related to their mutual security. They agreed to continue with their close
coordination and cooperation on issues relating to their national interests, according to
a joint statement issued at the end of the Indian Prime Ministers visit.

6. Prime Minister Narendra Modis Address to a Joint Session of Bhutans Parliament:

A strong Bhutan would benefit India like a strong and prosperous India would be
beneficial for the countries of the region, especially the SAARC members.

Indias prosperity was important, as then it could help small countries and
perform its duty of a good neighbour. But if India was weak and struggling with its
own problems, then how it could it help others?

Praised Bhutan for allocating a large portion of its budget to education. It showed
the commitment to wellbeing of future generations.

India planned to create an e-library network in Bhutan and would double
scholarships being given to students in Bhutan.

In a short span of time, Bhutan has developed immense faith in democratic
institutions. This was wonderful for Bhutans development journey.

7. Significance of the Visit:

The first foreign visit by Indian Prime Minister Narendra Modi to Bhutan
underlined the special and unique status for Bhutan in Indias foreign policy,

India was extremely satisfied with Prime Minister Narendra Modis visit to Bhutan
and the Indian side gave an assurance to Bhutan that a change of Government
would not affect their ties and the past commitments would be fulfilled, according
to the External Affairs Minister Sushma Swaraj.

The visit reinforced the relations between the two countries, according to Ms.
Swaraj. Though it was a short visit, the Prime Minister was able to interact with the
members of the Legislature, Judiciary and the Executive.

Prime Minister Narendra Modi was of the view that the hydropower projects
being implemented in Bhutan should be completed in a speedy manner,
according to Indias External Affairs Minister.

The visit to Bhutan was also in conformity the Mr. Modis desire to establish
better relations with Indias neighbours, according to analysts.

During his visit the Prime Minister emphasised that a strong and economically
vibrant India was necessary for peace and stability in the region.

Chinas growing influence in Indias neighbouring countries is a cause of
concern, with China financing and building ports in Sri Lanka, Bangladesh and
Pakistan. For the first time, Chinas investment in Nepal has surpassed Indias,
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The Prime Ministers visit was also significant in the context of the diplomatic
challenges faced by India in the whole of South Asia, according to analysts.

During the Prime Ministers visit to Bhutan both sides reiterated that neither side
would allow its territory to be used for purposes inimical to the other.

The visit signified that India needs to protect and nurture its relations with
Bhutan to cement bilateral relations and expand the friendship, according to
analysts.

8. China Welcomed Indian Prime Ministers Visit to Bhutan:

On June 16, 2014, China rejected suggestions of any competition with India for
strategic space in Indias neighbourhood by emphasising that it was happy to
see the development of friendly, cooperative, mutually beneficial relations
between its other neighbours.

China said that it was full of confidence over the future of relations with India.

IV. Conclusion:

1. India's Relations with Bhutan an Enduring Element of India's Foreign Policy:
According to the MEA spokesperson, India's relations with Bhutan had been an enduring
element of the Government's foreign policy. They symbolise India's belief that the people of
South Asia share a common destiny. India-Bhutan relations are characterised by maturity,
trust, respect and understanding and joint endeavours in ever-expanding areas of activity.

2. Restructuring India's Relations with Bhutan: As part of restructuring relations with
Bhutan, India completed the demarcation of the boundary between the two nations in
December 2006. Bhutan's boundary with China is under dispute. Bhutan does not have
diplomatic relations with China but the two countries have regular exchanges.

SUMMARY
I. Introduction:

1. Indo-Bhutan Relations Governed by the Friendship Treaty Updated in 2007

2. Indias Financial Assistance to Bhutans Five-Year Development Plans:
Since 1961, India has provided financial assistance to Bhutans five-year development plans.
In 2013, India committed Rs.4,500 crore for the period up to 2018.
The Indo-Bhutan ties also include cooperation and investment in infrastructure development, health,
education and hydropower projects

3. Trade and Energy Ties:

India accounts for more than 90 per cent of Bhutans exports and imports.

Bhutan supplies India with 1,416 MW of power from its three major hydroelectric power projects.

In 2013, there was a problem between the two countries on the decision of Bhutan to raise power
tariffs and delay in projects.

India and Bhutan signed the framework Inter-Governmental Agreement for the development of
joint venture hydropower projects through the public sector undertakings of the two
Governments.

103

4. Security:

From India's security point of view a democratic, friendly and confident Bhutan is very
significant.

Although Bhutan is a small nation it is strategically very important for India.

India and Bhutan have a 699 km common border which is manned by the Sashastra Seema Bal
(SSB) on the Indian side and the Royal Bhutan Army (RBA) on the Bhutan side.

The Indian Army maintains a training mission in Bhutan called the Indian Military Training Team
which is responsible for the military training of the RBA.

The RBA has close ties with India where its officers are also trained. The RBA depends on Indias
eastern air command for air assistance.

In 2003, Bhutan had launched Operation All Clear to dismantle the camps of ULFA, Bodo
insurgents and the KLO (Kamtapur Liberation Organisation) from southern Bhutan.

The Indian Army played a key role in the operation where 30 camps of the anti-India terror groups
were dismantled.

Currently, Bhutan has assured India that it would soon launch an operation to flush out anti-India
insurgent groups active in West Bengal and the northeastern States operating from its territory.

Bhutan is expected to launch the operation in the coming months to flush out the KLO and
insurgent groups of northeastern India.

The KLO was seeking a separate State of Kamtapur including six districts of West Bengal and
four districts of Assam.

5. Bhutans Transition to Democracy:

Bhutan has undergone radical changes from a monarchy to a democracy.

In 2013, Bhutan held its second democratic elections where for the first time resentment against
India was openly expressed for the cutting of fuel subsidies.

The Peoples Democratic Party (PDP) led by Tshering Tobgay won a majority 32 seats in the
47-seat National Assembly.

PDP focused on the strained relations with India, where it laid the blame for Indias withdrawal of
subsidy to Bhutan for cooking gas and kerosene among other things on the mishandling by the
ruling DPT.

6. Chinas Growing Ties with Bhutan:

China has is trying to establish formal ties with Bhutan, where it does not have a diplomatic
mission despite sharing a 500 km border with Bhutan.

China and Bhutan have to resolve the border issue with the Chinese territorial claims in western
Bhutan close to the Siliguri Corridor, called the Chickens Neck, the narrow strip of land
connecting West Bengal to the Northeastern States of India.

China and Bhutan have held many rounds of talks on the border issue but have not come close to
resolution.

India was surprised by the previous Bhutanese Prime Minister Jigme Thinley reaching out to
China and establishing diplomatic ties with many other countries without taking India into
confidence.

The new Prime Minister of Bhutan Tshering Tobgay has said that his government would deepen
the understanding and goodwill existing between India and Bhutan

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II. Indian Prime Ministers Visit to Bhutan (June 15-16, 2014):

1. First Bilateral Visit by Indias New Prime Minister Narendra Modi

2. B4B Ties:

Indian Prime Minister Narendra Modi met his Bhutanese counterpart Tshering Tobgay and the
King Jigme Khesar Namgyel Wangchuk.

Mr. Modi vowed to nurture Indo-Bhutan bilateral relations which he described as B4B Bharat
should stand for Bhutan and Bhutan for Bharat.

The primary focus of both the meetings was the extensive development cooperation between the
two countries and measures to enhance the economic ties

India was committed to Bhutans happiness and progress

Peace, security, development and tourism were the areas specified by the Indian Prime Minister
to push bilateral ties.

3. Indian Prime Minister Inaugurated the Supreme Court Complex and Unveiled the Foundation
Stone of a 600 MW Hydropower Project

4. Doubling of Scholarships to Bhutanese Students and Assistance for a Digital Library:
Prime Minister Modi announced the doubling of scholarships being provided to Bhutanese students in
India to Rs.2 crore.
India also promised to assist Bhutan in setting up a digital library.

5. Stepping Up Security Ties:

India and Bhutan decided to step up their security ties to cover security interests and
cooperation in a wide variety of fields.

India and Bhutan agreed to closely cooperate on issues of national interests and not to allow
each others territory to be used for interests inimical to each other.

The two sides expressed satisfaction with the cooperation between the two countries related to
their mutual security

6. Prime Minister Narendra Modis Address to a Joint Session of Bhutans Parliament:

A strong Bhutan would benefit India like a strong and prosperous India would be beneficial for
the countries of the region, especially the SAARC members.

Indias prosperity was important, as then it could help small countries and perform its duty of a
good neighbour

Praised Bhutan for allocating a large portion of its budget to education

India planned to create an e-library network in Bhutan and would double scholarships being
given to students in Bhutan.

In a short span of time, Bhutan has developed immense faith in democratic institutions


The first foreign visit by Indian Prime Minister Narendra Modi to Bhutan underlined the special
and unique status for Bhutan in Indias foreign policy.

India was extremely satisfied with Prime Minister Narendra Modis visit to Bhutan and the Indian
side gave an assurance to Bhutan that a change of Government would not affect their ties and
the past commitments would be fulfilled

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The visit reinforced the relations between the two countries

Prime Minister Narendra Modi was of the view that the hydropower projects being implemented
in Bhutan should be completed in a speedy manner

The visit to Bhutan was also in conformity the Mr. Modis desire to establish better relations with
Indias neighbours

During his visit the Prime Minister emphasised that a strong and economically vibrant India was
necessary for peace and stability in the region.

Chinas growing influence in Indias neighbouring countries is a cause of concern, with China
financing and building ports in Sri Lanka, Bangladesh and Pakistan

The Prime Ministers visit was also significant in the context of the diplomatic challenges faced
by India in the whole of South Asia

During the Prime Ministers visit to Bhutan both sides reiterated that neither side would allow its
territory to be used for purposes inimical to the other.

The visit signified that India needs to protect and nurture its relations with Bhutan to cement
bilateral relations and expand the friendship

8. China Welcomed Indian Prime Ministers Visit to Bhutan:

China rejected suggestions of any competition with India for strategic space in Indias
neighbourhood by emphasising that it was happy to see the development of friendly,
cooperative, mutually beneficial relations between its other neighbours.

China said that it was full of confidence over the future of relations with India.

III. Conclusion:

1. India's Relations with Bhutan an Enduring Element of India's Foreign Policy

2. Restructuring India's Relations with Bhutan

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v.3. INDO-BANGLADESH RELATIONS

I. Introduction:

1. Salient Features of Indo-Bangladesh Relations:
Interdependent: India and Bangladesh are interdependent on each other.
Commonalities: The two countries share the same rivers, common past, cultural heritage
and a language.
Bangladeshi Migrants in India: Hundreds of thousands of Bangladeshi migrants reside in
India and thousands cross over every year.
Porous Border: The porous border is a concern because it has been used by terrorists to
cross over to India.
Sharing of Ganga Waters Treaty: The 1996 Treaty on the sharing of Ganga waters has
been working.
Repatriation of Chakmas: The Chakmas have been repatriated and bilateral trade has
grown.
Demarcating the Border: After the border skirmishes in early 2001, there is determination
on both sides to complete the task of demarcating the border.
Transit Facilities through Bangladesh: The issue of transit facilities for Indias
north-east, and the utilisation of Bangladeshs natural gas remain.
Presence of Indian Insurgent Groups in Bangladesh: Indias concern over the
utilisation of Bangladeshs territory by anti-India elements.
Both Countries Members of SAARC and BIMST-EC: The two countries are members of
SAARC and BIMST-EC- an economic grouping formed in 1997 linking Bangladesh, India,
Myanmar, Sri Lanka and Thailand.
Issues Provide Opportunity and Challenges: All these issues provide both an
opportunity and challenge for the two countries to take steps in this direction.

2. Indias Concerns over the Emerging Security Threat from Bangladesh:

Presence of Pakistani Intelligence Officials and Indian Insurgent Groups in
Bangladesh: The areas of concern to India include the presence of Pakistani
intelligence officials in Bangladesh, the use of communal forces and the presence of
Indian insurgent groups in Bangladesh.

Illegal Immigrants: The illegal immigrants from Bangladesh settled in India have
crossed 15 million. Of these 80 lakh were in West Bengal and 50 lakh in Assam. The
illegal immigration from Bangladesh has significantly altered the demographic character
of the states bordering Bangladesh. This is a cause of grave concern to Indias security.

3. Sheikh Hasina Government has Cracked Down on Indian Insurgents and LeT
Militants in Bangladesh:

Since the Awami League headed by Sheikh Hasina came to power in January
2009, Bangladesh has responded positively to Indias concerns about
terror-related activities being directed against India from Bangladesh.

The Bangladesh Governments help in facilitating the arrest of top ULFA leaders
hiding in Bangladesh testified the cooperative attitude. The Government has also
cracked down on Lashkar-e-Taiba (LeT) militants in Bangladesh.
107

Bangladeshs cooperation is essential as the militants from Pakistan have been
reportedly using Bangladesh as a corridor to interfere in Assam and other
North-eastern States. The banned anti-India terror outfit Harkut-ul-Jedhai Islami, was
still active in Bangladesh.

II. Background:

1. High & Lows of Indo-Bangladesh Relations:
After India helped Bangladesh in its Independence struggle in 1971, the military rulers who succeeded
Mujib-ur-Rahman in Bangladesh distanced themselves from India.
Agreements reached between India and Bangladesh- including the Ganga Water-sharing- could not
be implemented because of the problematic relationship.
Bangladeshs tilt towards Pakistan and its participation in anti-Indian resolutions at the Organisation
of Islamic Conference (OIC) was also responsible for the friction in Indo-Bangladesh relations.
The Change of Governments in Bangladesh and India was responsible for breaking the impasse in
bilateral relations. The United Front Government succeeded in reaching the Ganga water sharing
agreement with the Sheikh Hasina Government of Bangladesh in December 1996.

2. Irritants in Indo-Bangladesh Relations:
A. River Water Sharing.
B. The Chakma Refugees Problem.
C. Transit and Shipping facilities.
D. Insurgents having basecamps in Bangladesh.
E. Huge trade imbalance between India and Bangladesh.
F. Border Problem.

A. River Water Sharing:
a. 35
th
Indo-Bangladesh Joint Rivers Commission (Oct. 1, 2003, New Delhi):
India and Bangladesh share 54 rivers.
Bangladesh expressed apprehensions that Indias rivers-linking project might affect its environment and
ecology.
Both sides agreed that the implementation of the Indo-Bangladesh Ganga Waters Treaty of 1996 was
progressing well.
Discussions were held on the sharing of Teesta and the waters of six smaller rivers between the two
neighbours.

B. The Chakma Refugees Problem:
The Chakmas who follow Buddhist religion inhabit the Chittagong Hill Tracts (CHT) in Bangladesh. About
60,000 Chakma refugees had crossed to Tripura in India since April 1986 following disturbances in the
region.
With the signing of the Peace Accord between the Bangladesh Government and the Chakmas, the 12-year
old Chakma refugee crisis between India and Bangladesh came to an end on February 27, 1998.
The 60,000 Chakma refugees in Tripura were repatriated to Bangladesh in six phases.

C. Transit and Shipping Facilities:
Transit through Bangladesh for connecting North-East India with the mainland has been a contentious issue
between the two countries.
India wants the transit facilities for movement of Indian citizens and goods to the North-East through
Bangladesh. Such transit facilities will reduce the cost of goods and overcome communication bottlenecks.
India has stated that such a transit would economically benefit Bangladesh to a great extent.
Transit facilities are also important to India for security reasons in view of the insurgency in the North-East.
India also wants the reopening of the river route connecting Assam with Bangladesh as it would give the
North-East direct access to international market through the Chittagong port.

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D. Insurgent Bases in Bangladesh:
India has told Bangladesh that insurgents from the North-East of India are having bases in Bangladesh which
is a threat to Indias security.
Bangladesh has clarified that it has no interest in supporting any insurgency-related activity against India or
harbouring in Bangladesh any such insurgents which vitiates friendly relations with India.

E. Trade Imbalance: The trade imbalance between the two countries is in favour of India. Bangladesh seeks
the withdrawal of countervailing duty imposed by India and duty cuts on 106 items to reduce the imbalance.
Bangladesh has a $2 billion annual trade deficit with India.

F. Border Problem:

a. Indo-Bangladesh Border: India and Bangladesh share 4,096 km of border based on a dividing line drawn
by Sir Cyril Radcliffe during the partition. India and Bangladesh have done considerable work over the years to
sort out many problems on their long border, but a lot remains to be done.

b. Pending Problems on the Border:
Enclaves in Each Others Territory: There are 111 Indian enclaves inside Bangladesh and 51 Bangladesh
enclaves inside India. For the last 50 years there has been no administration in these enclaves, no police, on
revenue, no taxation, no government services, according to analysts.
Six-and-Half Kilometre Stretch Yet to be Demarcated: A six-and-half kilometre stretch is yet to be
demarcated.
Adverse Possessions: The problem of territories in adverse possession- belonging to one side but in control
of the other- has remained unresolved. The Pyrdiwah post and the Boraibari post are examples of this
adverse possession. There are scores of such territories along the Indo-Bangladesh border. India and
Bangladesh agree there must be an end to this untenable adverse possession.

c. 1974 Indo-Bangladesh Border Agreement:
The 1974 Indo-Bangladesh Border Agreement was signed between the then Prime Minister of India, Mrs.
Indira Gandhi and Sheikh Mujibur Rehman founder of Bangladesh to settle such disputes.
Bangladesh wants India to ratify the 1974 agreement in the latest context, while India seems inclined to sort
out all boundary related matters first under a mechanism that was mutually agreed upon in December 2000.

d. Joint Working Groups (JWGs):
In December 2000, the foreign Secretaries of India and Bangladesh agreed to set up two Joint Working
Groups (JWG) to demarcate the boundary and exchange enclaves.
One JWG was set up to address the issue of territories in adverse possession of the two sides. Currently, the
total area under Bangladeshs adverse possession is 2,749.16 acres whereas India holds 2,972.25 acres,
according to media reports. These areas fall in West Bengal, Meghalaya and Assam.
The second JWG is looking into the issue of border demarcation.

e. Border Clashes:
On the night of April 15-16, 2001, the Bangladesh Rifles (BDR) captured India-held Pyrdiwah village in
Meghalaya. Three battalions comprising of 3,000 men of the BDR and the Bangladesh Army occupied the
Pyrdiwah outpost, held by the BSF (Border Security Force).
According to V.K. Gour, the Inspector General of the BSF, the BDR made an unprovoked attack in Boraibari
of Assams Mankachar sector on April 18, 2001, three days after the take-over of Pyrdiwah. During the
exchange of fire a patrol of 16 BSF jawans got separated from the rest of the troops and fell into the hands of
the Bangladeshis. The BSF men were murdered in cold blood and not in border clash, according to Mr. Gour.
3. Bangladesh Prime Minister Sheikh Hasinas Visit to India (January 11-14, 2010):
A. Five Agreements Signed to Add Thrust to the Relations:
Mutual legal assistance in criminal matters
Transfer of sentenced persons
Fight against terror, organised crime and illegal drug trafficking
Power cooperation
Cultural exchange programmes
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B. India Announced a Credit Line of $1 Billion to Bangladesh for strengthening Its Infrastructure:
India announced a credit line of $1 billion to Bangladesh for strengthening its infrastructure.
It was the highest-ever credit line extended to any country by India.
The credit line would be used for railway infrastructure, supply of broad gauge locomotives, rehabilitation
of Saidpur workshop, procurement of buses and dredging projects.

C. Significance of the Bangladesh Prime Ministers Visit to India:

The Visit Marked an End to the Mutual Distrust between the two Countries: The visit to India by the
Bangladesh Prime Minister Sheikh Hasina was viewed as a significant success. It marked an end to the
mutual distrust that characterised bilateral relations between the two countries, according to analysts.

The Visit Presented a Historic Opportunity to Build a New and Forward Looking Relationship: The
Bangladesh Prime Minister emphasised that her visit presented a historic opportunity to build a new and
forward-looking relationship between India and Bangladesh.

The Visit Served to Underline that Strong Indo-Bangladesh Relations are Vital for the Entire
Region: The visit served to underline that strong Indo-Bangladesh relations were vital; not just for both
countries, but for the entire region and the international community, according to Indias Foreign
Secretary Nirupama Rao.

The Intention was to put in place mechanisms that would be irreversible regardless of the nature
of the regimes in both countries, according to Foreign Ministry officials.

The Visit would help in Forging a Long-Term, Stable and Durable Bilateral Relationship: It was
also pointed out that the visit of the Bangladesh Prime Minister to India would help in forging a long-term,
stable and durable bilateral relationship.

Bangladesh Agreed to Cooperate with India to Curb Terrorist and Insurgent Activities on Its Soil:
Sheikh Hasina Government has taken action against terror groups targeting India. It also facilitated the
handover of ULFA leaders like Paresh Barua. During her visit to India, the Bangladesh Prime Minister
agreed to not allow domestic or foreign terror groups or insurgents to use the countrys territory for
anti-India activities.

India promised $1 billion credit line to Bangladesh and a pruning of negative list of products from
Bangladesh that were denied preferential access to Indian markets.

Both Sides agreed on better border connectivity for increasing bilateral trade.

Bangladesh dropped its opposition for granting India transit rights.

The Agartala-Akhaura rail link would be developed to send railway freight from Kolkata to Tripura
and the rest of the North-East through Bangladesh.

4. India and Bangladesh Opened their First Border Haat - a Common Marketplace (July 23,
2011):
India and Bangladesh signed an agreement in October 2010, to set up two border haats or
common marketplace.

Both countries identified 13 items - locally grown agricultural and manufactured finished
products - for being traded at these haats.

On July 23, 2011, India and Bangladesh opened their first border haat, reviving the traditional
border trade after almost 40 years.

The haat is located at 60 from Tura, the headquarters of Meghalayas West Garo Hills district

The haat would not only help the people living on both sides of the border to improve their lot
through bilateral trade but also strengthen economic and cultural ties

It was estimated that bilateral trade worth $20 million would take place every year in the haats
which would make the border villages more prosperous due to improved market access for their goods.

110

5. Prime Minister Manmohan Singhs Visit to Bangladesh (September 6-7, 2011):

A. Prime Minister Accompanied by Chief Ministers of Four States: Prime Minister Manmohan Singh visited
Bangladesh on September 6-7, 2011. He was accompanied by the Chief Ministers of Meghalaya, Tripura, Assam
and Mizoram.

B. West Bengal Chief Minister Opted Out Due to Reservations about the Proposed Pact on Sharing of
Teesta River Water: West Bengal Chief Minister Mamata Banerjee decided not to accompany the Prime Minister
as she had some reservations about the agreement that was to be signed between India and Bangladesh on the
sharing of the Teesta river water. Ms. Banerjee reportedly felt that the proposed Teesta river water-sharing ratio
would go against the interests of West Bengal.

C. Agreements Signed During the Visit:

a. Landmark Border Agreement Signed:
Both sides signed a new land border agreement which would end the longing running friction between
India and Bangladesh.

India and Bangladesh signed the protocol under the 1974 Indira-Mujib Land Boundary
Agreement, which would deal with five long-standing issues:
Exchange of enclaves and adversely possessed lands
Demarcation of 6.5km of un-demarcated border
Allowing Bangladeshis to use Tin Bigha Corridor for 24 hours
Finalisation of a strip map

India has 111 enclaves in Bangladesh covering an area of 17,158 acres with an estimated 150,000
residents.

Bangladesh has 51 enclaves in India covering an area of 7,110 acres with an estimated
population of 50,000.

In addition, 38 patches of Indian territory covering an area of 3,000 acres are in the possession of
Bangladesh.

50 patches of Bangladesh territory covering about 3,345 acres are held by India.

b. Framework Agreement on Cooperation and Development Signed:
Prime Minister Manmohan Singh and his Bangladesh counterpart Sheikh Hasina signed the Framework
Agreement on Cooperation and Development.

The Framework Agreement lays out a long-term roadmap for transforming the bilateral relations
between the two countries including cooperation in water, trade, culture, education and other fields.
India and Bangladesh had a 25-year Treaty of Friendship, Cooperation and Peace, which expired
in 1997.

c. Agreement to Allow Duty-Free Imports of 46 Lines of Textiles from Bangladesh:

India agreed to allow duty-free imports of 46 lines of ready-made textiles from Bangladesh.

The agreement would address the trade imbalance between the two countries. The bilateral trade
between India and Bangladesh is around $5.1 billion with exports from Bangladesh accounting for only
$500 million.

d. Power-Sharing Agreements:

India would supply bulk power to Bangladesh by connecting its national grids.

India agreed to assist Bangladesh in setting up a 1,320 MW joint venture power plant in Khulna.

e. MoU Signed to Facilitate Overland Transit Traffic between Bangladesh and Nepal: Both countries signed
a Memorandum of Understanding (MoU) to facilitate overland transit traffic between Bangladesh and Nepal.

111

D. Significance of the Prime Ministers Visit to Bangladesh:

Prime Minister Manmohan Singhs maiden visit to Bangladesh was significant and resulted in
impressive diplomatic gains, according to analysts.

The signing of the historic land boundary pact between the two countries is very significant as
the entire land boundary between the two countries stands demarcated and the difficult issue of
enclaves settled.

The land boundary agreement grants basic citizenship rights, which was pending for over three
decades, to thousands of people living in 162 enclaves.

The land boundary pact sets the stage for more effective border management by the two
countries.

The land boundary agreement would also help in checking illegal movement of people and goods
across the border, according to the Prime Minister Manmohan Singh.

Indias agreement to allow duty-free access to the Indian market for 46 Bangladeshi
textile-product lines was welcomed by Bangladesh as it addressed the issue of trade imbalance
between the two countries.

The Framework Agreement signed between the two Prime Ministers focuses on connectivity, power,
and infrastructure development among other things and would serve as a blue print for future bilateral
cooperation between the two countries.

The Prime Ministers visit to Bangladesh also helped in reducing the trust deficit between the two
countries, according to analysts.

The Prime Ministers visit was significant in underscoring the fact that regional disputes could be
settled amicably, setting a template for the whole region, according to analysts.

6. Bangladesh Prime Minister Declared the Tin Bigha Corridor Open for 24 Hours (October 19,
2011):
The Tin Bigha Corridor is a strip of land belonging to India on the West Bengal-Bangladesh
border leased to Bangladesh to allow access to its Dahagram-Angarpota enclaves.

The opening of the Tin Bigha Corridor ended 64 years of captivity for the inhabitants. It took nearly
four decades to implement the 1974 agreement signed between Indian Prime Minister Indira Gandhi and
Sheikh Mujibur Rahman.

A historic land boundary agreement was signed during Prime Minister Manmohan Singhs visit to
Bangladesh in September 2011 resolving the dispute over exchange of adversely-held enclaves.

7. Indo-Bangladesh Talks on Teesta Treaty (Kolkata, February 10, 2012):

On February 10, 2012, India and Bangladesh exchanged river flow data of the Teesta river during
the Inter-Governmental Joint Rivers Commission meeting in Kolkata.

India had put the Teesta River Treaty on hold after the West Bengal Chief Minster Mamata
Banerjee was unhappy with the Treatys provision and pulled out of Prime Minister Manmohan
Singhs delegation to Bangladesh in September 2011.

The Centre has now taken the West Bengal Government on board. It was pointed out that West Bengal
or any other State through which over 50 rivers flow into Bangladesh would be kept in the loop
while signing water sharing agreements.

The States were briefed and their advice taken during the negotiations on the protocol on land
boundary that was signed during the Prime Ministers visit to Bangladesh in September 2011.

On February 20, 2012, India, Bangladesh and Nepal discussed collaboration in river water
sharing, an emotive issue in all three nations. The move was aimed at keeping in line with the other
linkages developing in these countries like rail, road and maritime connectivity.
112

III. Indian External Affairs Ministers Visit to Bangladesh (June 25-27,
2014):

1. Three-day Visit:

Indias External Affairs Minister Sushma Swaraj visited Bangladesh from June
25-27, 2014.

Ms. Swaraj met the Bangladesh Prime Minister Sheikh Hasina and the
Bangladesh Foreign Minister Abul Hassan Mahmood Ali.

2. Indian Prime Ministers Letter to the Bangladesh Prime Minister:

Indias External Affairs Minister Sushma Swaraj handed over a letter from Indias Prime
Minister Narendra Modi to the Bangladesh Prime Minister Sheikh Hasina.

In the letter, Indias Prime Minister Narendra Modi said that he was convinced that the
wellbeing of every nation was linked to its neighbourhood, and therefore, he placed
special emphasis on Indias engagement with its neighbours.

Mr. Modi hoped that India and Bangladesh would usher in a new era of cooperation and
connectivity.

India was keen for a structured and permanent transit route via Bangladesh for its
landlocked Northeastern region.

Bangladesh was not merely a neighbour but a nation with which India shared history,
culture, civilization, and enduring links between people, according to Mr. Modi.

The ideals of democracy, secularism, pluralism and rule of law also serve as a link
between India and Bangladesh, according to the Indian Prime Minister.

Mr. Modi said that his Government would apply itself further accelerating the engagement
and strengthening the frame work of Indo-Bangladesh relations.

The Indian Prime Minister accepted his Bangladesh counterparts invitation to
visit Bangladesh and invited Ms. Hasina to visit India at her earliest convenience.

3. India Relaxed Visa Restrictions for Bangladeshi Senior Citizens and Children:

India decided to relax visa restrictions for Bangladeshi senior citizens above the
age of 65 and children below the age of 13, this was conveyed by the Indias External
Affairs Minister to her counterpart during the talks.

The senior citizens and the young from Bangladesh would be eligible for
five-year multiple entry visas as against the one-year visa available earlier.

There was no proposal for visa free travel for Bangladeshi nationals to India,
according to Indias External Affairs Ministry spokesperson Syed Akbaruddin.

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4. India Offered to Increase Power Supply by 100 MW from the Palatana Project in
Tripura:
During the talks between the two Foreign Ministers, India confirmed the offer to
increase power supply on the newly opened power-grid connection between India and
Bangladesh by 100 MW from the Palatana project in Tripura.

5. Land Border Agreement Issue and Teesta River Water Settlement:

Both sides discussed the Land Border Agreement (LBA).

Indias External Affairs Minister said that its ratification in Parliament was under
active consideration.

The Indian Government was also trying to build a national consensus on the
Teesta river water settlement promised by India in 2011, according to Ms. Swaraj.

6. The Entire Gamut of Issues including the Concern over Illegal Bangladeshi Migrants
was discussed:
The entire gamut of staple issues between both countries were discussed, which were
understood to include Indias concerns over illegal immigration from Bangladesh,
according to the External Affairs Ministry spokesperson.

7. India Proposed a Dhaka-Shillong-Guwahati Bus Service:

Connectivity was the main theme of discussions between Indias External Affairs
Minister and her Bangladesh counterpart, according to the MEA spokesperson.

India announced that the frequency of the Dhaka-Kolkata Maitree Express would
be increased.

India proposed a Dhaka-Shillong-Guwahati bus service.


It was a conscious decision to make the first standalone visit of External Affairs
Minister Sushma Swaraj to Bangladesh to send a clear signal that India was keen
to enhance the bilateral relationship, according to the MEA spokesperson, Syed
Akbaruddin.

During her visit Ms. Swaraj held meetings with the Bangladesh Prime Minister, Foreign
Minister, Leader of Opposition and the Bangladesh Nationalist Party (BNP) chief
Khaleda Zia. The meetings were described as constructive and productive.

Bangladesh assured that it would not allow its territory to be used against India.

The clear message from the visit was that the NDA Government would continue
the policy of keeping Bangladesh as a priority neighbour, according to analysts.

The focus of the visit was on connectivity with the frequency of the cross-border
train to be increased and the proposal for a new bus service to connect
Guwahati, Shillong and Dhaka.

India relaxed the visa rules for senior Bangladeshi citizens and the young and
committed to sharing 100 MW of power from the Palatana power project in
Tripura.
114

Ms. Swaraj informed the Bangladeshi leadership that Indian Government was
working on evolving national consensus on sharing Teesta water and Land
Boundary Agreement (LBA).

In each of her meetings the External Affairs Minister specifically emphasised that the
new Government of India stood ready to enhance the momentum and build on the
cooperative relationship. In essence her message to the leadership of Bangladesh
was that India stood ready to break fresh ground in the relationship, according to
the MEA spokesperson.

IV. Bangladesh won the Maritime Dispute with India:

On July 07, 2014, the verdict on the dispute regarding the delimitation of the
maritime boundary between India and Bangladesh was delivered by the UN
Tribunal.

The United Nations Tribunal awarded Bangladesh 19,467 sq.km of the 25,602
sq.km sea area of the Bay of Bengal.

The verdict of the Permanent Court of Arbitration (PCA) came after five years of
arguments and counter-arguments, spot visit by judges and examination of
survey reports.

On October 8, 2009, Bangladesh went in for arbitration over the delimitation of
maritime boundary under the United Nations Convention on Law of Sea
(UNCLOS). The court concluded its hearings on December 18, 2013 in The Hague.

The focus of the argument was on issues like the location of the land boundary
terminus, delimitation of the territorial sea, exclusive economic zone, and the
continental shelf within and beyond 200 nautical miles.

This was a victory of friendship between Bangladesh and India. The maritime
dispute between the two countries had come to an end following the verdict,
according to the Bangladesh Foreign Minister Mahmud Ali.

Both the countries would act in accordance with the verdict since they went to
the court voluntarily, according to the MEA spokesperson, Syed Akbaruddin.

V. Conclusion:

1. Indo-Bangladesh Relations Passing through a Promising Phase:

Indo-Bangladesh relations were on the upswing since the Awami League
Government led by Sheikh Hasina came to power in 2009.

The closer security cooperation between the two countries led to the arrest of
anti-India insurgent groups in Bangladesh.

The trade between the two nations has also improved to a large extent.

The land boundary agreement signed by both sides during the visit of Prime Minister
Manmohan Singh to Bangladesh in September 2011 would go a long way in
addressing the irritants between the two neighbours.

115

Irritants in the relations remain in the form of river water sharing and border
firing incidents. Both sides are trying to improve the joint border management. The
settlement of the Teesta river water sharing is also progressing on a faster pace.

It is important for India and Bangladesh to leverage the current upswing in ties to
make them irreversible, according to analysts.

2. Significance of Improving Relations with Bangladesh:

Democratic and Pluralistic Society in Bangladesh in India's Interest: Bangladesh
is one of the few Islamic States of the world where a fragile democracy is taking root.
Maintenance of a healthy democratic and pluralistic society in Bangladesh is in Indias
interest.

Developments in Bangladesh Have a Bearing on India's Long-Term Security
Interests: Developments in Bangladesh have a close bearing on Indias long-term
security interests. It has a huge bearing on Indias security and development challenges
in the North-East.

Bangladesh Largest Market for Indian Goods: It is the largest market for Indian
goods. It will be in Indias self-interest to do freer trade with Bangladesh which could
facilitate faster growth in Bangladesh and make it a bigger market for Indian goods.

Shared Prosperity: India and Bangladesh could focus on problem-solving and create
new levels of shared prosperity in the eastern part of the subcontinent. It is also in
Bangladeshs interest to allow transit of Indian goods to the North-East.

India Only Potential Customer for Bangladesh's Gas Exports: India remains the
only potential customer to Bangladeshs gas exports which could generate the much
needed revenues for Bangladesh.

India wants to establish an inclusive partnership with Bangladesh by taking every
section of Bangladeshi society into confidence, according to the External Affairs
Minister Sushma Swaraj.

Transit through Bangladesh would help India transport goods and passengers to
its northeast through a much shorter route and would reduce distance, time and
costs and speed up the development of the region.

Bangladesh would also gain from providing transit facilities to India by way of
gaining the transit fee, improving its domestic transportation, stimulating domestic
trade and making Bangladesh an attractive destination for Indian and foreign
investment.

India and Bangladesh have charted a new course and their cooperative approach
serves as a model for other countries to resolve their problems with neighbours,
according to Dr. Gowher Rizvi, adviser to the Bangladesh Prime Minister.

3. Resolving the Issues that Still Divide the Two Countries:

There are a number of issues that still need to be resolved by the two countries.

These issues range from sharing of river waters

116

The water-sharing agreements on Teesta and Feni rivers and Indias desire for
transit rights through Bangladesh to the Northeast remain the unfinished tasks
from the Prime Ministers otherwise successful visit to Bangladesh.

The challenge lies in willingness of both countries to craft agreements on the
equitable sharing of all river waters.

As a larger economy, India needs to go a step ahead to boost Bangladeshs
economic potential as Bangladesh has addressed Indias longstanding request on
transit facilities, according to analysts.

4. Constructive Agreements between India and Bangladesh would Benefit the Entire
South Asian Region: Analysts point out that if the agreements reached during the visit of the
Bangladesh Prime Minister are implemented properly and if the issues that still divide the two
countries are amicably resolved then the entire South Asian region stands to gain. The mutual
suspicions between the two countries need to be discarded by the new transformation in
relations which would benefit the economy and polity of the region.

SUMMARY

I. Indian External Affairs Ministers Visit to Bangladesh (June 25-27, 2014):

1. Indian Prime Ministers Letter to the Bangladesh Prime Minister:

Convinced that the wellbeing of every nation was linked to its neighbourhood, and therefore, he
placed special emphasis on Indias engagement with its neighbours.

India and Bangladesh would usher in a new era of cooperation and connectivity.

India was keen for a structured and permanent transit route via Bangladesh for its landlocked
Northeastern region.

Bangladesh was not merely a neighbour but a nation with which India shared history, culture,
civilization, and enduring links between people

The ideals of democracy, secularism, pluralism and rule of law also serve as a link between India
and Bangladesh

Government would apply itself further accelerating the engagement and strengthening the frame
work of Indo-Bangladesh relations.

The Indian Prime Minister accepted his Bangladesh counterparts invitation to visit Bangladesh
and invited Ms. Hasina to visit India at her earliest convenience.

2. India Relaxed Visa Restrictions for Bangladeshi Senior Citizens and Children:

India decided to relax visa restrictions for Bangladeshi senior citizens above the age of 65 and
children below the age of 13.

The senior citizens and the young from Bangladesh would be eligible for five-year multiple entry
visas as against the one-year visa available earlier.

There was no proposal for visa free travel for Bangladeshi nationals to India

3. India Offered to Increase Power Supply by 100 MW from the Palatana Project in Tripura

117

4. Land Border Agreement Issue and Teesta River Water Settlement:

Both sides discussed the Land Border Agreement (LBA).

Indias External Affairs Minister said that its ratification in Parliament was under active
consideration.

The Indian Government was also trying to build a national consensus on the Teesta river water
settlement promised by India in 2011

5. The Entire Gamut of Issues including the Concern over Illegal Bangladeshi Migrants was
discussed

6. India Proposed a Dhaka-Shillong-Guwahati Bus Service:

Connectivity was the main theme of discussions between Indias External Affairs Minister and
her Bangladesh counterpart

India announced that the frequency of the Dhaka-Kolkata Maitree Express would be increased.

India proposed a Dhaka-Shillong-Guwahati bus service.


It was a conscious decision to make the first standalone visit of External Affairs Minister Sushma
Swaraj to Bangladesh to send a clear signal that India was keen to enhance the bilateral
relationship

Bangladesh assured that it would not allow its territory to be used against India.

The clear message from the visit was that the NDA Government would continue the policy of
keeping Bangladesh as a priority neighbour

The focus of the visit was on connectivity with the frequency of the cross-border train to be
increased and the proposal for a new bus service to connect Guwahati, Shillong and Dhaka.

India relaxed the visa rules for senior Bangladeshi citizens and the young and committed to
sharing 100 MW of power from the Palatana power project in Tripura.

Ms. Swaraj informed the Bangladeshi leadership that Indian Government was working on
evolving national consensus on sharing Teesta water and Land Boundary Agreement (LBA).

In essence her message to the leadership of Bangladesh was that India stood ready to break
fresh ground in the relationship

II. Bangladesh won the Maritime Dispute with India:

On July 07, 2014, the verdict on the dispute regarding the delimitation of the maritime boundary
between India and Bangladesh was delivered by the UN Tribunal.

The United Nations Tribunal awarded Bangladesh 19,467 sq.km of the 25,602 sq.km sea area of
the Bay of Bengal.

The verdict of the Permanent Court of Arbitration (PCA) came after five years of arguments and
counter-arguments, spot visit by judges and examination of survey reports.

On October 8, 2009, Bangladesh went in for arbitration over the delimitation of maritime
boundary under the United Nations Convention on Law of Sea (UNCLOS)

118

The focus of the argument was on issues like the location of the land boundary terminus,
delimitation of the territorial sea, exclusive economic zone, and the continental shelf within and
beyond 200 nautical miles.

This was a victory of friendship between Bangladesh and India. The maritime dispute between
the two countries had come to an end following the verdict

Both the countries would act in accordance with the verdict since they went to the court
voluntarily

III. Conclusion:

1. Indo-Bangladesh Relations Passing through a Promising Phase:
Indo-Bangladesh relations were on the upswing since the Awami League Government led by Sheikh
Hasina came to power in 2009.
The closer security cooperation between the two countries led to the arrest of anti-India insurgent groups
in Bangladesh.
The trade between the two nations has also improved to a large extent.
The land boundary agreement would go a long way in addressing the irritants between the two
neighbours.
Irritants in the relations remain in the form of river water sharing and border firing incidents
It is important for India and Bangladesh to leverage the current upswing in ties to make them irreversible

2. Significance of Improving Relations with Bangladesh:
Democratic and Pluralistic Society in Bangladesh in India's Interest
Developments in Bangladesh Have a Bearing on India's Long-Term Security Interests
Bangladesh Largest Market for Indian Goods
Shared Prosperity
India Only Potential Customer for Bangladesh's Gas Exports
India could not realise its full potential unless it strengthens its relations with neighbours particularly
Bangladesh
India was willing to work with all political parties and shades of public opinion and the people of
Bangladesh
Transit through Bangladesh would help India transport goods and passengers to its northeast through a
much shorter route
Bangladesh would also gain from providing transit facilities to India by way of gaining the transit fee,
improving its domestic transportation
India and Bangladesh have charted a new course and their cooperative approach serves as a model for
other countries to resolve their problems with neighbours

3. Resolving the Issues that Still Divide the Two Countries:
There are a number of issues that still need to be resolved by the two countries.
These issues range from sharing of river waters
The water-sharing agreements on Teesta and Feni rivers and Indias desire for transit rights through
Bangladesh to the Northeast remain the unfinished tasks
Challenge lies in willingness of both countries to craft agreements on the equitable sharing of all river
waters.
As a larger economy, India needs to go a step ahead to boost Bangladeshs economic potential

4. Constructive Agreements between India and Bangladesh would Benefit the Entire South Asian Region

119
v.4. INDO-rUSSIAN RELATIONS (update)

I. Russian Deputy Prime Ministers Visit to India (June 21, 2014):

Russian Deputy Prime Minister Dmitri Rogozin concluded his visit to India on
June 21, 2014 as Russian President Vladimir Putins envoy.

Mr. Rogozin said that his talks with Indias External Affairs Minister Sushma Swaraj
yielded the formation of a Working Group on Strategic Issues that would focus
on strategic projects.

The construction of a gas pipeline from Russia to India would be one of the
largest infrastructure projects that could be conceived, according to the Russian
Deputy Prime Minister.

If Russias proposed gas pipeline to China could be extended to India, it would
start a triangular energy partnership among the members of BRICS.

The move would also mark a strategic shift in Russias policy towards the East,
according to analysts. This is seen in line with the Ukraine crisis which has brought
Russias relations with the West to a new post-Cold War low, according to analysts.

A controversy was generated by the proposed sale of Russian Mi-35 helicopters
to Pakistan, however, India made it clear that the controversy would hardly
impair ties.

In his meeting with the Russian Deputy Prime Minister Dmitri Rogozin, Indias
Prime Minister Narendra Modi said that Indo-Russian relations should be taken
to a higher level.

A Joint Study Group would be formed that would analyse the possibility of
Indias partnership with the Eurasian Economic Union, according to Mr. Rogozin.

The Indo-Russian relationship was going beyond a buyer seller relationship and
India and Russia were partners in co-developing weapons, which include joint
forays in making a fifth generation fighter jet and a multi-role transport aircraft,
according to the Russian Deputy Prime Minister.

The negotiations on establishing two more nuclear reactors in Kundankulam
were underway, to complete the ambitious plan to set up 14 to 16 Russian
designed nuclear power plants in India, according to Mr. Rogozin.

II. Indian Prime Ministers Meeting with the Russian President on the
Sidelines of the Sixth BRICS Summit (Fortaleza, Brazil, July 16, 2014):

Prime Minister Narendra Modi hailed Russia as Indias greatest friend and told
the Russian President Vladimir Putin that India was committed to deepening ties
and cooperation between the two nations.

Mr. Modi invited Mr. Putin to visit the Kundankulam nuclear power plants in Tamil
Nadu.

Both leaders discussed major bilateral issues concerning strategic affairs,
defence cooperation and economic ties.

120

The discussions explored the possibility of supplying Russian gas to India
through pipelines via China or Pakistan, according to the website Russia and India
Report (RIR).

The Russian President offered comprehensive measures to raise bilateral trade
to $20 billion, according to RIR.

Mr. Modi said that he looked forward to Mr. Putins visit to India for the 13
th

Annual Indo-Russia Summit.

Mr. Putin said that he was pleased that India and Russia were in full consensus
on working together on the international stage.

SUMMARY
I. Russian Deputy Prime Ministers Visit to India (June 21, 2014):

Russian Deputy Prime Minister Dmitri Rogozin visited India as Russian Presidents envoy

Formation of a Working Group on Strategic Issues that would focus on strategic projects

The construction of a gas pipeline from Russia to India would be one of the largest infrastructure
projects that could be conceived

If Russias proposed gas pipeline to China could be extended to India, it would start a triangular
energy partnership among the members of BRICS

The move would also mark a strategic shift in Russias policy towards the East

A controversy was generated by the proposed sale of Russian Mi-35 helicopters to Pakistan,
however, India made it clear that the controversy would hardly impair ties

A Joint Study Group would be formed that would analyse the possibility of Indias partnership
with the Eurasian Economic Union

The Indo-Russian relationship was going beyond a buyer seller relationship and India and Russia
were partners in co-developing weapons, which include joint forays in making a fifth generation
fighter jet and a multi-role transport aircraft

The negotiations on establishing two more nuclear reactors in Kundankulam were underway, to
complete the ambitious plan to set up 14 to 16 Russian designed nuclear power plants in India

II. Indian Prime Ministers Meeting with the Russian President on the Sidelines of the Sixth
BRICS Summit (Fortaleza, Brazil, July 16, 2014):

Prime Minister Narendra Modi hailed Russia as Indias greatest friend and told the Russian
President Vladimir Putin that India was committed to deepening ties and cooperation between
the two nations.

Mr. Modi invited Mr. Putin to visit the Kundankulam nuclear power plants in Tamil Nadu.

Both leaders discussed major bilateral issues concerning strategic affairs, defence cooperation
and economic ties.

The discussions explored the possibility of supplying Russian gas to India through pipelines via
China or Pakistan

The Russian President offered comprehensive measures to raise bilateral trade to $20 billion

Mr. Modi said that he looked forward to Mr. Putins visit to India for Annual Indo-Russia Summit.

Mr. Putin said that he was pleased that India and Russia were in full consensus on working
together on the international stage.

121
v.5. India-china RELATIONS (update)

I. Chinese Foreign Ministers Visit to India (June 8-9, 2014):

1. Two-day Visit Focused on Trade and Investment:

On June 8-9, 2014, Chinese Foreign Minister Wang Yi visited India and held
meetings with President Pranab Mukherjee, Prime Minister Narendra Modi,
External Affairs Minister Sushma Swaraj and the National Security Adviser Ajit
Doval.

Trade and investment were driving force behind the first India-China talks under
the new Government of India, according to analysts.

The Chinese Foreign Minister and Indias External Affairs Minister spoke about
the India-China bilateral trade target of $100 billion by 2015.

India also conveyed its concern over the large trade deficit of $31 billion out of a
bilateral trade of $65 billion in 2013.

India also wanted more investment from China into Indias infrastructure,
particularly in the Railway sector.

2. Next Steps on the Border Dispute and the Upcoming High-Level Meetings:

The Indian and Chinese Foreign Ministers discussed the next steps on the
long-standing border dispute.

Both sides also discussed the roadmap for all the upcoming high-level meetings
between the two countries in the next few months including those between
Presidents, Prime Ministers, Vice-Presidents and Foreign Ministers.

The year 2014 has been designated as the China-India Year of Friendly
Exchanges.


The Chinese Foreign Minister Wang Yi said that the new Government of India had
injected new vitality into an ancient civilization by increasing the pace of
India-China engagement.

The Chinese Foreign Ministers visit was essentially seen by observers as an
ice-breaker for the two countries.

Mr. Wang said India and China were natural partners and both countries felt each
others development was a foreign policy priority.

The Chinese Foreign Minister was carrying a message from the Chinese
President Xi Jinping whom the Indian Prime Minister Narendra Modi would meet
at the July BRICS summit in Brazil.

The focus of the Chinese Foreign Ministers meeting with Indias Prime Minister
was on developing trade and people-to-people ties. Both sides reached an
agreement on visa facilitation, according to Mr. Wang.

122

Both sides discussed the contentious border issue in detail. The Chinese Foreign
Minister called the joint efforts to maintain peace along the LAC a hard fought
achievement and hoped that the question left by history could have a fair resolution.

The visit by the Chinese Foreign Minister pointed out that China was keen to
establish contact with the Narendra Modi Government in India and send positive
signals, according to analysts.

II. Indian Vice-Presidents Visit to China for the 60
th
Anniversary of
Panchsheel (June 28-30, 2014):

1. 60
th
Anniversary of the Signing of Panchsheel or Five Principles of Peaceful
Coexisting:

On June 28, 2014, Chinas President Xi Jinping, Indias Vice-President Hamid
Ansari and Myanmars President Thein Sein presided over the commemoration
of the 60
th
anniversary of the signing of the Panchsheel or Five Principles of
Peaceful Coexistence.

The Panchsheel enshrines the five principles of co-existence as follows:
Respect for Sovereignty and Territorial Integrity of all States.
Non-aggression.
Non-interference in Territorial affairs.
Equality and Mutuality.
Peaceful Co-existence.

The five principles of Panchsheel, promoted by Indias then Prime Minister
Jawaharlal Nehru and Chinas then Premier Zhou Enlai, were first invoked in a
1954 Treaty on Tibet and later came into prominence at the Asian-African
conference at Bandung.

Analysts point out that Chinas new diplomacy has seen the revival of Panchsheel
as it looks to recast its diplomacy in a region where its rise has evoked concern
and anxiety among many of its neighbours.

The five principles that China initiated together with India and Myanmar had
become a basic norm governing state-to-state relations, according to the Chinese
President Xi Jinping.

China would develop friendly relations and cooperation with other countries on
the basis of the Five Principles of Peaceful Co-existence, according to Mr. Xi.

Chinas peaceful development begins in Asia, finds its support in Asia, and
delivers tangible benefits to Asia, according to the Chinese President.

Speaking at the Great Hall of the People, Mr. Xi stressed on the need to revisit the five
guiding principles of Panchsheel, which had been endorsed by a host of
international organisations and instruments.

The Chinese President called for strengthening South-South Cooperation and
bettering North-South dialogue.

123

India believed that globalisation should transform the world into, as Mahatma
Gandhi had envisioned, a federation of friendly, interdependent nations,
without domination or exploitation. Panchsheel is the basis of such an order,
according to Indias Vice-President Hamid Ansari.

There was a need for a new paradigm for global action and Panchsheel could act
as a catalyst to better coordinate efforts, enhance mutual understanding, share
developmental experiences and tackle trans-national threats more effectively,
according to Mr. Ansari.

As co-originators of Panchsheel, it was the duty of India and China to revitalise
their friendly relations and to promote cooperation as the only way forward
towards the realisation of their common goals of progress and prosperity for their
peoples, according to Indias Vice-President.

Myanmar was confident that the five principles would play a greater role in
inter-state relations, according to the Myanmar President Thein Sein.

Mr. Sein acknowledged the significant role played by China and India in helping
the economy of Myanmar.

Having consistently followed the Panchsheel directives, and a non-aligned
foreign policy, Myanmar would cherish friendly ties with all nations, especially
its neighbours, according to the President of Myanmar.

2. India Raises All Issues of Concern with China:

During the discussions involving Indias Vice-President Hamid Ansari and Chinese
Premier Li Keqiang, India raised all issues of concern with China, according to
Indias Foreign Secretary Sujatha Singh.

The issues of concern included the planned railway line through Pakistan
occupied Kashmir (PoK) to link China with Pakistan and Chinese intrusions into
Indian territory.

India also raised the issue of a new Chinese map showing Arunachal Pradesh as
part of China.

Both sides emphasised the importance of maintaining peace and tranquillity on
the border, according to Indias Foreign Secretary.

3. Trade Talks:

Indias Commerce and Industry Minister Nirmala Sitharaman and her Chinese
counterpart Gao Hucheng signed a MoU to establish a formal framework for
Chinese companies to invest in dedicated industrial parks.

The industrial parks agreement allows China to explore the possibility of setting
up clusters in a range of areas.

The move could boost Chinese investment into India and reduce the increasing
trade deficit.

124

An Industrial Park Cooperation Working Group, made up of equal number of
representatives from both countries, would be set up to identify and agree upon
the modalities.

There was immense scope for Chinese investment, not just for manufacturing
but many sectors where Chinese had an advantage, according to Ms. Sitharaman.

Currently, Chinas investments in India are around $1.1 billion.

China invited India to participate in the Asian Infrastructure Investment Bank
(AIIB) to steer development along the ancient silk route free from the
influence of western-backed institutions like World Bank and the Asian
Development Bank (ADB).

4. China and India Signed an Agreement to Allow Indian Experts to Monitor
Brahmaputra in Tibet:

On June 30, 2014, a new agreement was signed between India and China during the
Vice-President Hamid Ansaris visit to China where for the first time China agreed to
allow Indian Hydrological experts to conduct study tours in Tibet to monitor the
flows on the upper reaches of the Brahmaputra.

China formally agreed to allow India to dispatch hydrological experts to conduct
study tours according to the principle of reciprocity.

The move is seen as Chinas bid to assuage Indias concern about the ongoing
dam projects in upper reaches of the Brahmaputra known as the Yarlung Zangbo
in Tibet.

China also agreed to extend provision of hydrological data from May 15 to
October 15 every year on a daily basis, with the addition of 15 days to an earlier
agreement.

In 2013 China gave the green signal to start three new hydrological dams on the
Brahmaputra or Yarlung Zangbo, ending two-year suspension on new projects.

China said that the projects would not affect downstream flows, but lack of
transparency has been a concern for India.

The MoU signed with China builds upon the agreement to cooperate on
transboundary rivers signed between the two countries in 2013, providing
technical details such as data transparency and cost settlement.

China would provide data on water flows and India would make available
information on data utilisation in flood forecasting and mitigation.

5. Significance of the Indian Vice-Presidents Visit to China:

Indian Vice-President Hamid Ansaris visit to China to mark the 60
th
anniversary of
Panchsheel was the start of a series of high-level bilateral visits to strengthen the
strategic and cooperative partnership between India and China.

125

The significance of the visit was seen by the signing of three important
agreements on the Brahmaputra, industrial parks and first-ever training
exchange programme for officials of both countries between the Lal Bahadur
Shastri National Academy of Administration (LBSNAA), Mussoorie, and the China
Executive Leadership Academy (CELAP) in Shanghai.

India called for forging an alliance with China to turn the 21
st
century into an
Asian Century.

With the world economy shifting towards Asia, India and China would have to
play a decisive role and create a world based on good-neighbourliness and
mutual prosperity rather than one based on the balance of power calculations
and animosity, to emerge as regional leaders, according to Indias Vice President.

Mr. Ansari advocated forging an alliance between India and China for mutual
benefit in the emerging era of multi-polarity.

On the global stage both countries were at the forefront of the emergence of a
more democratic global order and of multilateral approaches to resolving global
issues in an equitable order, according to Indias Vice-President.

III. Indian Army Chiefs Visit to China (July 02-04, 2014):

Indian Army Chief General Bikram Singh visited China from July 02 to July 04,
2014.

The visit was the first by an Indian Army Chief in nine years and was aimed at
increasing trust between the militaries of the two countries and firming up plans
for the most comprehensive agenda for defence exercises and exchanges set to
take place in the coming months.

General Singh met his counterpart, General Fang Fenghui, Chief of General Staff
of the Peoples Liberation Army (PLA) and called on both countries to increase trust
and reduce suspicion.

The agenda of the Indian Army Chiefs visit to China included reviewing the
implementation of the 2013 Border Defence Cooperation Agreement, aimed at
expanding communication along the border and formalising patrolling rules.

The PLA officials hailed the Indian Army Chiefs visit as a positive signal taking
place weeks after the election of a new Government in India.

General Bikram Singh said that the two militaries should take the occasion as an
opportunity to advance military-to-military ties.

The Indian Army Chief called upon both countries to strengthen strategic mutual
trust, practical cooperation and properly manage differences.

The common interests of both countries outweigh their differences and both
countries had sufficient wisdom and capability to deal with historical problems,
according to General Bikram Singh.

126

IV. Indian Prime Ministers Meeting with the Chinese President on the
Sidelines of the Sixth BRICS Summit (Fortaleza, Brazil, July 15, 2014):

Both sides emphasised on the need to find a solution to the boundary question.

Indias Prime Minister stressed on the importance of strengthening mutual trust
and confidence and maintaining peace and tranquillity on the border.

Mr. Modi said that there was a need for finding a solution and maintaining peace
on the border and stressed that the incidents on the border should not
undermine relations.

Indias Prime Minister also highlighted the growing economic ties between the
two countries and underlined his Governments willingness to welcome Chinese
investment in infrastructure and industrial parks.

The Chinese President Xi Jinping invited Mr. Modi to the Asia-Pacific Economic
Cooperation (APEC) summit in China in November 2014. The invitation was seen
as significant gesture.

Mr. Xi called for a negotiated resolution of the boundary dispute at an early date.

The Chinese President said that he was willing to work with the Indian Prime
Minister to constantly enhance China-India strategic and cooperative
partnership to a higher level and jointly safeguard their strategic period of
opportunities.

Both countries were long lasting strategic and cooperative partners, rather than
rivals, according to Mr. Xi.

If the countries speak in one voice, the whole world would attentively listen; if the
two countries join hand in hand, the whole world would closely watch, according
to the Chinese President.

Mr. Xi said that India should deepen its engagement with the Shanghai
Cooperation Organisation (SCO), a political, economic and military organisation
founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

SUMMARY
I. Chinese Foreign Ministers Visit to India (June 8-9, 2014):

1. Two-day Visit Focused on Trade and Investment:
Trade and investment were driving force behind the first India-China talks under the new
Government of India.
The Chinese Foreign Minister and Indias External Affairs Minister spoke about the India-China
bilateral trade target of $100 billion by 2015.
India also conveyed its concern over the large trade deficit of $31 billion out of a bilateral trade of
$65 billion in 2013.
India also wanted more investment from China into Indias infrastructure, particularly in the
Railway sector.

2. Next Steps on the Border Dispute and the Upcoming High-Level Meetings:
The Indian and Chinese Foreign Ministers discussed the next steps on the long-standing border dispute.
Both sides also discussed the roadmap for all the upcoming high-level meetings between the two
countries in the next few months
The year 2014 has been designated as the China-India Year of Friendly Exchanges.

127


New Government of India had injected new vitality into an ancient civilization by increasing the
pace of India-China engagement.

The Chinese Foreign Ministers visit was essentially seen by observers as an ice-breaker for the
two countries.

India and China were natural partners and both countries felt each others development was a
foreign policy priority.

The Chinese Foreign Minister was carrying a message from the Chinese President Xi Jinping
whom the Indian Prime Minister Narendra Modi would meet at the July BRICS summit in Brazil.

The focus of the Chinese Foreign Ministers meeting with Indias Prime Minister was on
developing trade and people-to-people ties

Both sides discussed the contentious border issue in detail

The visit by the Chinese Foreign Minister pointed out that China was keen to establish contact
with the Narendra Modi Government in India and send positive signals

II. Indian Vice-Presidents Visit to China for the 60
th
Anniversary of Panchsheel (June 28-30,
2014):

1. 60
th
Anniversary of the Signing of Panchsheel or Five Principles of Peaceful Coexisting:

On June 28, 2014, Chinas President Xi Jinping, Indias Vice-President Hamid Ansari and
Myanmars President Thein Sein presided over the commemoration of the 60
th
anniversary of the
signing of the Panchsheel or Five Principles of Peaceful Coexistence.

The Panchsheel enshrines the five principles of co-existence as follows:
Respect for Sovereignty and Territorial Integrity of all States.
Non-aggression.
Non-interference in Territorial affairs.
Equality and Mutuality.
Peaceful Co-existence.
The five principles of Panchsheel, promoted by Indias then Prime Minister Jawaharlal Nehru and
Chinas then Premier Zhou Enlai, were first invoked in a 1954 Treaty on Tibet and later came into
prominence at the Asian-African conference at Bandung.

Chinas new diplomacy has seen the revival of Panchsheel as it looks to recast its diplomacy in a
region where its rise has evoked concern and anxiety among many of its neighbours.

The five principles that China initiated together with India and Myanmar had become a basic
norm governing state-to-state relations

China would develop friendly relations and cooperation with other countries on the basis of the
Five Principles of Peaceful Co-existence

Need to revisit the five guiding principles of Panchsheel, which had been endorsed by a host of
international organisations and instruments.

India believed that globalisation should transform the world into, as Mahatma Gandhi had
envisioned, a federation of friendly, interdependent nations, without domination or exploitation.
Panchsheel is the basis of such an order

There was a need for a new paradigm for global action and Panchsheel could act as a catalyst to
better coordinate efforts, enhance mutual understanding, share developmental experiences and
tackle trans-national threats more effectively

As co-originators of Panchsheel, it was the duty of India and China to revitalise their friendly
relations and to promote cooperation as the only way forward

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2. India Raises All Issues of Concern with China:

The issues of concern included the planned railway line through Pakistan occupied Kashmir
(PoK) to link China with Pakistan and Chinese intrusions into Indian territory.

India also raised the issue of a new Chinese map showing Arunachal Pradesh as part of China.

Both sides emphasised the importance of maintaining peace and tranquillity on the border

3. Trade Talks:
Signed a MoU to establish a formal framework for Chinese companies to invest in dedicated
industrial parks.

The industrial parks agreement allows China to explore the possibility of setting up clusters in a
range of areas.

The move could boost Chinese investment into India and reduce the increasing trade deficit.

An Industrial Park Cooperation Working Group, made up of equal number of representatives
from both countries, would be set up to identify and agree upon the modalities.

There was immense scope for Chinese investment, not just for manufacturing but many sectors
where Chinese had an advantage

Currently, Chinas investments in India are around $1.1 billion.

China invited India to participate in the Asian Infrastructure Investment Bank (AIIB) to steer
development along the ancient silk route free from the influence of western-backed institutions
like World Bank and the Asian Development Bank (ADB).

4. China and India Signed an Agreement to Allow Indian Experts to Monitor Brahmaputra in
Tibet:
First time China agreed to allow Indian Hydrological experts to conduct study tours in Tibet to
monitor the flows on the upper reaches of the Brahmaputra.

China formally agreed to allow India to dispatch hydrological experts to conduct study tours
according to the principle of reciprocity.

The move is seen as Chinas bid to assuage Indias concern about the ongoing dam projects in
upper reaches of the Brahmaputra known as the Yarlung Zangbo in Tibet.

China also agreed to extend provision of hydrological data from May 15 to October 15 every year
on a daily basis, with the addition of 15 days to an earlier agreement.

In 2013 China gave the green signal to start three new hydrological dams on the Brahmaputra or
Yarlung Zangbo, ending two-year suspension on new projects.

China said that the projects would not affect downstream flows, but lack of transparency has
been a concern for India.

The MoU signed with China builds upon the agreement to cooperate on transboundary rivers
signed between the two countries in 2013, providing technical details such as data transparency
and cost settlement.

China would provide data on water flows and India would make available information on data
utilisation in flood forecasting and mitigation.

5. Significance of the Indian Vice-Presidents Visit to China:
Start of a series of high-level bilateral visits to strengthen the strategic and cooperative
partnership between India and China.
The significance of the visit was seen by the signing of three important agreements on the
Brahmaputra, industrial parks and first-ever training exchange programme for officials of both
countries

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India called for forging an alliance with China to turn the 21
st
century into an Asian Century.

With the world economy shifting towards Asia, India and China would have to play a decisive role
and create a world based on good-neighbourliness and mutual prosperity rather than one based
on the balance of power calculations and animosity, to emerge as regional leaders

Forging an alliance between India and China for mutual benefit in the emerging era of
multi-polarity.

On the global stage both countries were at the forefront of the emergence of a more democratic
global order and of multilateral approaches to resolving global issues in an equitable order

III. Indian Army Chiefs Visit to China (July 02-04, 2014):

Indian Army Chief General Bikram Singh visited China from July 02 to July 04, 2014.

The visit was the first by an Indian Army Chief in nine years and was aimed at increasing trust
between the militaries of the two countries and firming up plans for the most comprehensive
agenda for defence exercises and exchanges set to take place in the coming months.

General Singh met his counterpart, General Fang Fenghui, Chief of General Staff of the Peoples
Liberation Army (PLA)

The agenda of the Indian Army Chiefs visit to China included reviewing the implementation of
the 2013 Border Defence Cooperation Agreement, aimed at expanding communication along the
border and formalising patrolling rules.

The PLA officials hailed the Indian Army Chiefs visit as a positive signal taking place weeks after
the election of a new Government in India.

General Bikram Singh said that the two militaries should take the occasion as an opportunity to
advance military-to-military ties.

The Indian Army Chief called upon both countries to strengthen strategic mutual trust, practical
cooperation and properly manage differences.

The common interests of both countries outweigh their differences and both countries had
sufficient wisdom and capability to deal with historical problems

IV. Indian Prime Ministers Meeting with the Chinese President on the Sidelines of the Sixth
BRICS Summit (Fortaleza, Brazil, July 15, 2014):
Both sides emphasised on the need to find a solution to the boundary question.

Indias Prime Minister stressed on the importance of strengthening mutual trust and confidence
and maintaining peace and tranquillity on the border.

Mr. Modi said that there was a need for finding a solution and maintaining peace on the border
and stressed that the incidents on the border should not undermine relations.

Indias Prime Minister also highlighted the growing economic ties between the two countries and
underlined his Governments willingness to welcome Chinese investment in infrastructure and
industrial parks.

The Chinese President Xi Jinping invited Mr. Modi to the Asia-Pacific Economic Cooperation
(APEC) summit in China in November 2014

The Chinese President said that he was willing to work with the Indian Prime Minister to
constantly enhance China-India strategic and cooperative partnership to a higher level and
jointly safeguard their strategic period of opportunities.

Both countries were long lasting strategic and cooperative partners, rather than rivals

Mr. Xi said that India should deepen its engagement with the Shanghai Cooperation Organisation
(SCO)

130
v.6. INDO-FRENCH RELATIONS

I. Introduction:

1. Improvement in Indo-French Relations: There has been a marked improvement in
Indo-French relations after years of neglect, which saw a stagnation of trade, the limited
French interest in the Indian market, and the French interest in arms sale to Pakistan.

2. Reasons for Improvement in Indo-French Relations:

Common Strategic Interests: India and France share many common strategic
interests and concerns.

Political Autonomy: Both have strong traditions of political autonomy.

Multipolarity: Both have a stake in promoting multipolarity in international relations.
Both the countries favour a more equitable international system, in line with new
demographic, economic and geo-political realities. France wants Europe to be one of
the poles in the new order and India another.

Nuclear Issue - Bilateral Agreement on Civilian Nuclear Cooperation Signed:
France has shown a better understanding of the underlying reasons for Indias nuclear
tests. India and France signed a bilateral agreement on civilian nuclear cooperation in
September 2008. French help in talks with the Nuclear Suppliers Group (NSG) were
crucial in seeking changes to the rules governing exports of nuclear goods within the
NSG.

Defence Cooperation - Uninterrupted Sales and Maintenance Since 1950s: The
Indo-French defence cooperation goes back to the 1950s with uninterrupted sales and
maintenance despite India's 1998 nuclear tests. The French Mirage-2000 aircraft plays
a strategic role in the Indian defence plans. Currently, India and France are engaged in
increasing the military cooperation in many fields.

France Backs UN Security Council Membership for India: France has backed
Indias claim to permanent membership in an expanded UN Security Council. It is the
third permanent member of the Security Council - after Russia and Britain- to publicly
back Indias claim.

3. France Wants to Develop a General Relationship with India in Two Key Areas: French
Foreign Minister Bernard Kouchner who visited India in December 2007 stated that France
would like to develop a general relationship with India in the following two key areas:

Stronger Cooperation in the Key Areas of Future: Academic exchanges, scientific
and technical cooperation in high technology, and industrial cooperation through the
development of direct investment.

Development of Concertation with India on Global Issues that Require a
Collective Response: The combat against global warming and emerging diseases,
and world economic and financial regulation. In this regard, the suggestion of France to
enlarge the Group of 8 (G-8) to G-13 to include India, China, Brazil, South Africa and
Mexico is significant for India.

131

II. Background:

1. French Assistance during Wars: During the UN embargo on arms supplies to India in 1965 following the
Pakistani attack, France under the leadership of General De Gaulle came to Indias assistance. During the
Bangladesh war also the French attitude was sympathetic.

2. Foreign Policy of France: Analysts feel that France has been conducting three foreign policies- a) as part of
the Western alliance, b) in exercise of its own independence and c) to subserve its commercial interests. India
has experienced all the three foreign policies of France.

3. Indo-French Strategic Dialogue:

Proposal Formalised in 1988: The decision for a strategic dialogue was taken in January 1998, during
the French Presidents visit to India. The proposal was formalised during the former Prime Minister Atal
Behari Vajpayees visit to France in 1998.

Issues Covered by the Dialogue: The Indo-French Strategic Dialogue covers a wide range of issues
including the strategic balance in South Asia and the Indian Ocean, Indias relations with China and
Pakistan, Indias nuclear doctrine, the progress in the unification of European Union, and NATO and its
doctrine.

4. Significance of the Strategic Dialogue:

Global Role for India: Analysts feel that the on-going strategic dialogue between India and France will
lead to the identification of common global approach and to persuade Russia to share it. This is a right
step towards ending the unipolar world dispensation and establishing genuine multipolarity. This will give
India a meaningful global role in the changing international politics.

Adds Balance to Indias Nuclear Dialogue with the US: Defence analysts feel that the strategic
dialogue with France also adds some balance to the on-going Indo-US nuclear dialogue. A nuclear
dialogue with France can give a boost to Indias post-Pokhran diplomacy.

Transfer of Advanced Technology: According to analysts India and France are trying to arrive at a
formulation which will allow the transfer of advanced technology, including civilian nuclear know-how, to
India against Indias assured compliance to important non-proliferation rules.

5. Indo-French Defence Cooperation:

A. The blueprint for Indo-French defence cooperation was established in 1988. The idea was to start a
strategic dialogue, project the countrys defence needs and increase cooperation both in terms of direct contacts
between the armed forces and technological and scientific collaboration. However, Frances decision to sell
Mirage jets to Pakistan stalled the project and for seven years defence cooperation between India and France
was low. Interests again revived with the setting up of the High Committee on Defence.

B. 2005 - Defence Agreement to Establish a Framework for Cooperation (Signed During Indian
Prime Ministers Visit to France):
Aimed at Promoting Cooperation in Strategic Sectors
Establishes a Framework Aiming to Cover all Defence Cooperation Activities
India-France High Committee on Defence Cooperation will Coordinate all Bilateral Cooperation Activities

C. 2012 - French Dassault Rafale Wins the Indian Contract for Supply of 126 MMRCA:

On January 31, 2012, India selected Fighter Dassault Rafale over the Eurofighter Typhoon in the
$10 billion contract for the supply of 126 Medium Multi-Role Combat Aircraft (MMRCA), Indias
largest defence deal.

The cost of the deal is estimated to be $10.2 billion (Rs.54,000 crore).

This is the third big defence contract for France from India. The Government of India cleared a $2.1
billion upgrade of 51 Mirage-2000 aircraft and $970 million supply of MICA fire-and-forget missiles for the
Mirage-2000 aircrafts.

132

On February 17, 2012, the Defence Minister A.K. Antony said that the Contract Negotiation Committee
(CNC) had started its work for the procurement of the French Rafale aircraft in pursuit of the $10
billion deal for 126 MMRCA. The process would take several months.

India was strengthening its Armed Forces by providing most modern and complex equipment not
against any country, but to protect its territorial integrity and challenge from any quarter, from land,
skies and seas, according to Mr. Antony.

India had a long-standing relationship with Russia, and also had friendly ties with the US, the UK,
France, and Israel - countries which provide defence equipment to India, according to the Defence
Minister.

D. Significance of Acquiring the French Rafale MMRCA:

Features of Dassault Rafale MMRCA:
Length - 15.27m
Wingspan - 10.80m
Empty Weight - 9,500 kg
Loaded Weight - 14,016 kg
Fuel Capacity - 4,700 kg
Top Speed - 2,130 km/h
Range - 3,700 km
Powerplant - 2 x Snecma M88-2
Crew- 1-2

The Rafale is a twin-engined, delta-wing jet which can fly in high altitude with a speed of up to
2,130 km/hr.

It has been in service for the French Air Force since 2006 and has played air support roles in the
Afghan war and NATOs campaign in Libya in 2011.

India has chosen the Rafale MMRCA to replace the Indian Air Forces (IAF) ageing MiG-21s and
augment its fleet of Sukhoi 30MKIs.

The acquisition of the Rafale MMRCA would help the IAF to overcome the problem of reducing
number of squadrons.

The French Rafale is capable of air-to-air, air-to-surface and carrier-based missions. It has a more
advanced radar system and can be configured to land on an aircraft carrier.

Another advantage of the Rafale is that it is logistically and operationally similar to the
Mirage-2000, hence the IAF would require only a few changes to the existing infrastructure.

The Rafale can carry nuclear payloads and with modifications could be inducted by the Navy for
its aircraft carrier force.

The Rafale MMRCA would give the IAF capability of performing a variety of role with the same
number of platforms, according to defence analysts.

The acquisition of the French Rafale MMRCA widens Indias strategic options in a multi-polar
world, according to analysts. The deal could provide leverage to India to increase cooperation with
France in a wide range of sectors, especially in the defence and nuclear fields where technology and
expertise could be shared. France had said that it would not be bound by the new NSG ban on the
transfer of enrichment and reprocessing (ENR) equipment.

The French President Nicolas Sarkozy said that winning the contract for the supply of 126 MMRCA to
India concerns more than aviation, it was a vote of confidence in the entire French economy.

The deal would give momentum to Frances interest in working with India on important global
issues like bringing changes in the international nuclear order, according to analysts.

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6. Indo-French Cooperation in the Field of Nuclear Energy:

A. There has been a long period of Indo-French cooperation in the field of nuclear energy and space
technology. France replaced the US as the supplier of low enriched uranium for Tarapur reactor. The
arrangement continued till the 90s when the France joined the NPT.

B. 2010 - Nuclear Energy - Five Agreements Signed (During the Visit of the French President to India):

Framework Agreement for the construction of two 1,650-MWe European
Pressurised/Evolutionary Power Reactors (EPRs) at Jaitapur in Maharashtra.

Early Works Agreement between NPCIL and AREVA for implementation of EPR NPP Units at
Jaitapur in Maharashtra.

Cooperation Agreement between the Department of Atomic Energy (DAE) of India and CEA of
France in the field of Nuclear Science and Technology for Peaceful Uses of Nuclear Energy.

Agreement between India and France concerning Intellectual Property Rights on the
Development of the Peaceful Uses of Nuclear Energy.

Agreement between India and France on the Protection of the Confidentiality of the Technical
Data and Information Relating to Cooperation in the Peaceful Uses of Nuclear Energy.

7. French President Francois Hollandes Visit to India (February 14-15, 2013):

A. Economic Ties:

Agreed to give a boost to economic relations between India and France after disappointing
results from the earlier plans.

In 2012 the bilateral trade between the two countries was $9.4 billion as both countries failed to
meet the target of 12 billion.

B. Energy:

Agreed to strengthen bilateral civil nuclear scientific cooperation while expressing satisfaction
over the current collaborative projects in peaceful uses of nuclear energy.

Reviewed the progress on the initial setting up of two European Pressurised Reactors (EPRs) at
Jaitapur in Maharashtra by France. The plan is to construct six EPRs at Jaitapur.

Negotiations are being held since the last three years between Indias Nuclear Power Corporation
(NPC) and Areva SA of France for the construction of six EPRs at Jaitapur. The two sides are trying
to narrow the differences on cost and liability bill.

C. Defence:

Laid emphasis on strengthening cooperation in high technology programmes and projects
including joint research and development and transfer of technology.

The leaders noted that the projects for the Scorpene submarine and the upgrade of Mirage 2000
were moving forward.

Concluded negotiations for the Short-Range Surface-to-Air Missile (SRSAM). Once the
negotiations are approved, the SRSAM would be co-developed and co-produced in India.

Noted the progress of the on-going negotiations on the Medium Multi-Role Combat Aircraft
(MMRCA) programme and looked forward to the conclusion.

Wanted to continue the cooperation in combating piracy in the Gulf of Aden and other areas.

134

D. MoU Signed for Cooperation in Railways: A memorandum of understanding (MoU) was signed between the
Ministry of Railways and the French National Railways (SNFC) to give a boost to the cooperation in railways.

E. Significance of the French Presidents Visit:

First Visit to a Large Asian Country: The new French President Francois Hollandes visit to India was
his first visit to large Asian country. The French President had opted for India over Brazil, Russia and
South Africa, according to analysts.

The French President said that while India and France were strategic partners in defence, space
and energy, there was need to expand the cooperation and create economic and business
partnerships.

The French Presidents visit pointed to the keenness of taking the strong diplomatic, political and
strategic bilateral ties to a new level, according to analysts.

In January 2013, India had backed the decision of France to send troops to Mali to oust the
Islamist rebels who had taken over northern Mali. The move was in line with Indias view that the
French effort was against a terrorist takeover of Mali.

Analysts point out that Indo-French defence and security cooperation have gained momentum in
recent years with both countries having greater naval cooperation to combat sea piracy. Indias
defence deals with France include significant transfers of technology.

During the Mr. Hollandes visit, India and France agreed to enhance the two-way trade by having an
annual dialogue on economic and financial issues.

III. French Foreign Ministers Visit to India (June 30-July1, 2014):

1. First High-Level Western Visitor to India after the Formation of a New Government in
India:

French Foreign Minister Laurent Fabius visited India on June 30-July1, 2014.

Mr. Fabius was the first high-level Western visitor to India after the formation of a
new Government in India.

The French Foreign Minister met Prime Minister Narendra Modi, External Affairs
Minister Sushma Swaraj and Defence and Finance Minister Arun Jaitley.

Both sides reiterated their commitment to further strengthen and expand
bilateral relations, according to a statement from the Prime Ministers Office (PMO).

During the French Foreign Ministers meeting with Prime Minister Narendra Modi both
countries reiterated their commitment to take forward the bilateral relations in
defence, trade and nuclear energy.

Indias Prime Minister sought French cooperation in urban planning, tourism,
skill development and low-cost defence manufacturing, according to the PMO
statement.

France was keen to expand the cooperation and relationship following the
assumption of office by the new Government in India, according to Mr. Fabius.

The French Minister said the next step was for the French firm Dassault and for the
Indian government to discuss the details and hopefully reach a conclusion at the
earliest.

135

2. Focus of the Visit:

Two areas of strategic relationship Civilian Nuclear Energy and Space

3. Dassault Rafale Deal (Details given in the Background):

On January 31, 2012, India selected Fighter Dassault Rafale over the Eurofighter
Typhoon in the $10 billion contract for the supply of 126 Medium Multi-Role
Combat Aircraft (MMRCA), Indias largest defence deal.

On June 24, 2014, Defence Minister Arun Jaitley stated that the Centre would
take considered decision on the deal.

A work share formula between Dassault, the French firm manufacturing the
fighter jets, and Hindustan Aeronautics Limited (HAL) had been achieved,
according to media reports.

18 fighter jets would be flown in from France and the remaining 108 would be
manufactured in India.

HAL would have a technology transfer arrangement with Dassault and Snecma,
the French engine maker.

Analysts point out that the induction of Dassault Rafale fighter jets which have
been in action in Afghanistan and North Africa, would bolster the Air
Dominance doctrine of the Indian Air Force (IAF).

The IAF has already invested in the multi-role SU-30 planes and Mirage-2000
fighters, capable of launching deep strikes instead of restricting themselves to
only air defence.

Analysts point out that France has already converted part of their fleet for nuclear
weapons delivery, however, it is not clear if these fighter jets would become part
of Indias Nuclear Triad if the IAF inducts the Dassault Rafale jets in its fleet.

4. Cooperation in Civil Nuclear Energy:

France has submitted a tender for two 1,650 megawatts nuclear reactors for
Jaitapur site in Maharashtra and intends to add four more nuclear reactors at this
site.

Indias Nuclear Liability Law, which puts the onus of compensation on the
supplier, in case of a nuclear accident was not an issue between India and
France. Nevertheless, France was looking for greater clarity about the implementation
of the legislation to address the pricing and other related issues.

In his meetings with the Indian Government, the French Foreign Minister Laurent
Fabius was slated to discuss the nuclear cooperation over the Jaitapur nuclear reactors
and also take forward the negotiations on Indias civil nuclear liability law.

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5. Indo-French Cooperation on Co-Development of the SRSM Maitri Missile:

The French Foreign Minister was also slated to discuss with the Indian
Government, the conclusion of the SRSM (Short-Range Surface-to-air Missile)
Maitri missile programme to be co-developed by the DRDO and the French
MBDA.


Analysts point out that the visit to India by the French Foreign Minister Laurent Fabius
was very significant as it helped in removing hurdles to the emergence of a
full-fledged strategic partnership between the two countries.

India and France have a mutually beneficial relationship with France keen on
trading its high technology and India looking to boost its defence preparedness,
energy security and international profile, according to analysts.

During the French Ministers visit there seemed to be significant progress towards
concluding the Dassault Rafale fighter jets multibillion dollar deal and the stalled
contract for two French nuclear reactors at Jaitapur in Maharashtra.

The nuclear deal to set up two 1,650 megawatts nuclear reactors at Jaitapur and
add another four reactors would lead to an installed capacity of 10,000
megawatts which would be a valuable contribution to Indias energy security and boost
the French nuclear commerce, according to analysts.

The Rafale deal and the European Pressurised Reactors (EPR) would give India
advanced technology through transfers of state-of-the-art know how.

The political significance of the French Foreign Ministers visit was that it
provided India an opportunity to enhance its relations with Europe which
remained a major player in a multipolar world, according to analysts.

IV. Conclusion:

1. Growing Bilateral Ties:

France backed India at the Nuclear Suppliers Group (NSG) and the International
Atomic Energy Association (IAEA) meetings in 2008 that ended Indias isolation
from the civil nuclear mainstream.

France is one of the few countries, apart from the US and Russia, with whom
India has signed a nuclear cooperation agreement.

France is Indias third largest supplier of defence equipment and has maintained
it as a reliable partner.

Indo-French ties have been driven by the need to build multilateralism in the
complex global situation, according to analysts.

India and France continue to hold joint naval exercises and France was selected
as the Indian Air Forces first partner for joint fighter level exercises in 2003.

France has supported Indias efforts for a permanent seat in an expanded UN
Security Council (UNSC).

137

France has also backed Indias pursuit of the membership of the four multilateral
export control groups NSG, MTCR, Wasenaar Arrangement and the Australian
group.

2. Significance of the Indo-French Agreement on Cooperation in Civil Nuclear Energy:

Interest in Participating in India's Civil Nuclear Programme Not Limited to the US:
The signing of the Indo-French Agreement on cooperation in civil nuclear energy
reflects that interest in participating in India's civil nuclear energy programme is not
limited to the US only. India need not depend entirely on the US for nuclear fuel and
reactor supplies as and when it is able to import both for its civil nuclear programme,

There is more to Civil Nuclear Cooperation than the Supply of Fuel or Transfer of
Technology: The Agreement brings out the fact that there is more to civil nuclear
cooperation than mere supply of fuel or transfer of nuclear technology. India and France
have additional cooperation in the civil nuclear energy sector in the form of Indo-French
Joint Committee on Atomic Energy along with an ongoing dialogue between the nuclear
safety authorities of the two countries.

Strengthens India's Position as a Non-Proliferating Nuclear Power: Analysts point
out that the civil nuclear agreement strengthens India's position as a non-proliferating
nuclear power. The French President Nicolas Sarkozy complimented India on its
non-proliferation record and noted its moratorium on further nuclear weapon testing.

3. Indo-French Relations Need to Rest on Three Pillars - Academic Exchanges, High
Technology Cooperation and Industrial Cooperation: The then Union Commerce and
Industry Minister Kamal Nath pointed out that Indo-French relations need to rest on three
pillars - academic exchanges, scientific and technical cooperation in high technology, and
industrial cooperation through the development of direct investment.

SUMMARY
I. Introduction:

1. Improvement in Indo-French Relations

2. Reasons for Improvement in Indo-French Relations:
Common Strategic Interests
Political Autonomy
Multipolarity
Nuclear Issue - Bilateral Agreement on Civilian Nuclear Cooperation Finalised
Defence Cooperation - Uninterrupted Sales and Maintenance Since 1950s
France Backs UN Security Council Membership for India

3. France Wants to Develop a General Relationship with India in Two Key Areas
Stronger Cooperation in the Key Areas of Future
Development of Concertation with India on Global Issues that Require a Collective Response

II. French Foreign Ministers Visit to India (June 30-July1, 2014):

1. First High-Level Western Visitor to India after the Formation of a New Government in India:

French Foreign Minister Laurent Fabius visited India on June 30-July1, 2014.

Mr. Fabius was the first high-level Western visitor to India after the formation of a new
Government in India.

138

The French Foreign Minister met Prime Minister Narendra Modi, External Affairs Minister Sushma
Swaraj and Defence and Finance Minister Arun Jaitley.

Both sides reiterated their commitment to further strengthen and expand bilateral relations

Both countries reiterated their commitment to take forward the bilateral relations in defence,
trade and nuclear energy.

Indias Prime Minister sought French cooperation in urban planning, tourism, skill development
and low-cost defence manufacturing

France was keen to expand the cooperation and relationship following the assumption of office
by the new Government in India

Next step was for the French firm Dassault and for the Indian government to discuss the details
and hopefully reach a conclusion at the earliest.

2. Focus of the Visit: Two areas of strategic relationship Civilian Nuclear Energy and Space

3. Dassault Rafale Deal (Details given in the Background):

On January 31, 2012, India selected Fighter Dassault Rafale over the Eurofighter Typhoon in the
$10 billion contract for the supply of 126 Medium Multi-Role Combat Aircraft (MMRCA)

On June 24, 2014, Defence Minister Arun Jaitley stated that the Centre would take considered
decision on the deal.

A work share formula between Dassault, the French firm manufacturing the fighter jets, and
Hindustan Aeronautics Limited (HAL) had been achieved

18 fighter jets would be flown in from France and the remaining 108 would be manufactured in
India.

HAL would have a technology transfer arrangement with Dassault and Snecma, the French
engine maker.

Induction of Dassault Rafale fighter jets which have been in action in Afghanistan and North
Africa, would bolster the Air Dominance doctrine of the Indian Air Force (IAF).

The IAF has already invested in the multi-role SU-30 planes and Mirage-2000 fighters, capable of
launching deep strikes instead of restricting themselves to only air defence.

France has already converted part of their fleet for nuclear weapons delivery, however, it is not
clear if these fighter jets would become part of Indias Nuclear Triad if the IAF inducts the
Dassault Rafale jets in its fleet.

4. Cooperation in Civil Nuclear Energy:

France has submitted a tender for two 1,650 megawatts nuclear reactors for Jaitapur site in
Maharashtra and intends to add four more nuclear reactors at this site.

Indias Nuclear Liability Law, which puts the onus of compensation on the supplier, in case of a
nuclear accident was not an issue between India and France

5. Indo-French Cooperation on Co-Development of the SRSM Maitri Missile:

The French Foreign Minister was also slated to discuss with the Indian Government, the
conclusion of the SRSM (Short-Range Surface-to-air Missile) Maitri missile programme to be
co-developed by the DRDO and the French MBDA.

139


Significant as it helped in removing hurdles to the emergence of a full-fledged strategic
partnership between the two countries.

India and France have a mutually beneficial relationship with France keen on trading its high
technology and India looking to boost its defence preparedness, energy security and
international profile

Significant progress towards concluding the Dassault Rafale fighter jets multibillion dollar deal
and the stalled contract for two French nuclear reactors at Jaitapur in Maharashtra.

The nuclear deal to set up two 1,650 megawatts nuclear reactors at Jaitapur and add another four
reactors would lead to an installed capacity of 10,000 megawatts

The Rafale deal and the European Pressurised Reactors (EPR) would give India advanced
technology through transfers of state-of-the-art know how.

The political significance of the French Foreign Ministers visit was that it provided India an
opportunity to enhance its relations with Europe which remained a major player in a multipolar
world

III. Conclusion:

1. Growing Bilateral Ties:

France backed India at the Nuclear Suppliers Group (NSG) and the International Atomic Energy
Association (IAEA) meetings in 2008

France is one of the few countries, apart from the US and Russia, with whom India has signed a
nuclear cooperation agreement.

India and France continue to hold joint naval exercises and France was selected as the Indian Air
Forces first partner for joint fighter level exercises in 2003.

Trade, cultural and people-to-people contacts are being worked on by both sides.

France is Indias third largest supplier of defence equipment and has maintained it as a reliable
partner.

2. Significance of the Indo-French Agreement on Cooperation in Civil Nuclear Energy:

Interest in Participating in India's Civil Nuclear Programme Not Limited to the US

There is more to Civil Nuclear Cooperation than the Supply of Fuel or Transfer of Technology

Strengthens India's Position as a Non-Proliferating Nuclear Power

3. Indo-French Relations Need to Rest on Three Pillars - Academic Exchanges, High
Technology Cooperation and Industrial Cooperation

140
v.7. INDO-BRITAIN RELATIONS

I. Introduction:

1. Britain One of India's Closest Strategic Partner in Europe: Analysts point out that Britain
has been one of India's closest strategic partners in Europe. Britain is a permanent member of
the UN Security Council and a member of G-8 and the Nuclear Suppliers Group (NSG). India
needs support from countries like Britain as it raises its profile in the international arena.

2. Strong Indo-British Bilateral Relations: Britain and India share a strong bilateral
relationship covering a large number of areas. Both countries work closely as members of
many international organisations.

3. Nearly Two Million People of Indian Origin Living in the UK: There are nearly two million
people of Indian origin living in the United Kingdom (UK) and over 20,000 Indians are currently
studying in the UK. Indo-British relations acquire importance in this context and the
commonalities shared by both nations.

4. Britain Feels that India has an Increasingly Important Role in Global Affairs: Britain
feels that India is a beacon of democracy and the rule of law in a region that has more than its
fair share of problems. India has an increasingly important role in global affairs. Britain and
India agree that the global institutions established in the 1940s and 1950s are outdated and
must adapt to meet new global challenges.

5. Importance of India for Britain: The British Prime Minister David Cameron underlined the
following aspects as the key factors behind the importance of India for Britain:
Indias dynamic economy
Indias democracy with three million elected representatives - a beacon to the world
Indias tradition of Tolerance - dozens of faiths and hundreds of languages living side by
side
Indias sense of responsibility - reconstruction assistance to Afghanistan, peacekeeping
in Sierra Leone or providing intellectual leadership in the G-20
India a source of strength for the world

6. Importance of Britain for India: The British Prime Minister underlined the following
aspects as the key factors behind Britains importance to India:
Britain and India are natural partners
Both countries have deep and close connections among the people
Nearly two million people of Indian origin living in Britain
Britain and India are closer culturally
Britain is the worlds sixth largest manufacturer and the best base for companies
wanting to do business in Europe.
Britain is a hub of science and innovation with some of the best universities in the world

7. Irritants in Indo-Britain Relations:

Tax matters concerning British companies in India like Vodafone and Shell. The
telecom operator Vodafone has a tax liability of Rs.11,200 crore in India. Vodafone and
Shell have contested claims by the Indian tax authorities.

Indias serious concerns at charges of corruption in the VVIP helicopter deal with
Agusta Westland, and Anglo-Italian conglomerate.

141

II. Background:

1. New British Prime Minister David Camerons Visit to India (July 27-29, 2010):

A. British Prime Minister Visits India with a 100-Strong Delegation to Lay the Foundation of a New and
Deeper Relationship with India: The New British Prime Minister David Cameron accompanied by a 100-strong
delegation visited India from July 27-29, 2010, to lay the foundation for a new and deeper relationship with India.

B. British Prime Minister - Cannot Tolerate the Idea of Pakistan Exporting Terror to India:
British Prime Minister David Cameron started his visit to India from Bangalore.

Mr. Cameron said that although Britain stood for a stable and democratic Pakistan, it could not tolerate
the idea that Pakistan could look both ways and export terror to India, Afghanistan or anywhere else in the
world.

C. India and Britain Called on Pakistan to be Indiscriminate in Cracking Down on Terror Groups
Operating from Its Soil:
Indian Prime Minister Manmohan Singh and his British counterpart David Cameron underlined the need
to remain engaged with Pakistan. They called on Pakistan to be indiscriminate in cracking down on terror
groups operating from its soil.

Both leaders believed that Pakistan should be serious in paying attention to terror on its western
borders as on the eastern borders.

The Pakistan Government had taken steps and it needs to take further steps to reduce terrorism
in Afghanistan, India and the streets of London, according to Mr. Cameron.

D. Britain Signs an Agreement with HAL for Supply of 57 Hawk Advanced Jet Trainer Aircraft:

Britain signed an agreement with Hindustan Aeronautics Ltd. (HAL) for supplying 57 Hawk Advanced Jet
Trainer aircraft to the Indian Air Force and the Navy.

IAF will acquire 40 Hawk AJT aircraft, the Navy, for the first time, would obtain 17 Hawk AJT
aircraft.

The total cost of the deal was about Rs.5,100 crore.

In 2004, India had signed a deal for the acquisition of 66 Hawk AJT aircraft for the IAF.

The Hawk AJT fast jet solution enables the Air Force or Navy to provide front line pilots for even
the most modern fighter aircraft such as the Euro-fighter Typhoon or Sukhoi SU-30, according to
the BAE Systems CEO Andrew Gallagher.

E. Joint Statement:

Impetus to Trade and Security Ties: India and Britain decided to give impetus to their trade and
security ties during the high-level talks between the Prime Ministers of the two countries.

Decision to Step Up Cooperation in Counter-Terrorism and Welcomed Development of
Broad-based Cooperation in the Defence Sector: After a detailed discussion on global security
challenges, the Prime Ministers decided to step up their cooperation in counter-terrorism and welcomed
the development of broad-based cooperation in the defence sector. They also noted the joint army
exercises that took place in India in June 2010, the joint naval exercises underway in July 2010 and
looked forward to the joint air exercises scheduled for October 2010.

Signing of Civil Nuclear Cooperation Declaration had Created Opportunities for Wider
Cooperation: The two Prime Ministers felt a civil nuclear cooperation declaration signed earlier this year
had created opportunities for wide ranging cooperation, especially with regard to exchanges between
scientific institutions.

Decision to Constitute a Joint CEOs Forum and an India-U.K. Infrastructure Group to Double
Bilateral Trade in the Next Five Years: Both countries decided to constitute a Joint CEOs Forum to be
co-chaired by Peter Sands and Ratan Tata and an India-U.K. Infrastructure Group to double bilateral
trade in the next five years.

142

The two sides agreed to launch a new phase of the U.K.-India Education and Research Initiative.

Agreement to Review the Mandate, Composition and Structure of Existing Bilateral Trade Bodies
in Trade, Investment and Economic Cooperation: To give a fillip to bilateral ties with the help of
existing mechanisms, both sides agreed to review the mandate, composition and structure of existing
bilateral bodies in trade, investment and economic cooperation.

MoU Signed on Cultural Cooperation: An India-U.K. Memorandum of Understanding (MoU) on
Cultural Cooperation was signed to provide a framework for a significant expansion of the rich cultural
exchange between the two countries.

F. Significance of the Visit:

The Visit Set in Place a New Momentum to Drive the Strategic Partnership Forward: Prime Minister
Manmohan Singh said that British Prime Minister David Camerons visit to India set in place a new
momentum to drive the strategic partnership forward. He stressed that it would good for both countries,
and it responds to the wishes and aspirations of the people of both countries.

Visit Aimed at Forging a New Special Relationship with India for the 21
st
Century: British Prime
Minister hoped that his visit would deepen relations with India and forge a new special relationship for the
21
st
century.

Improving Economic Relations with India the Focus of the Visit: Analysts point out that the
recession hit Britain was looking at India specifically from the economic point of view. The British Prime
Minister made a strong pitch for improving bilateral trade and investment, especially for India to relax
rules on foreign direct investment in legal services, banking and insurance and in defence manufacturing.

Clinching the Hawk AJT Aircraft Deal with India was the Highlight of the Visit: Analysts point out
that the highlight of British Prime Minister David Camerons visit to India was the signing of the Rs.5,100
crore deal with HAL to supply 57 Hawk AJT aircrafts for the IAF and Navy.

British Prime Minister Candid on the Export of Terrorism from Pakistan to India and Afghanistan:
The British Prime Minister was candid on terrorism being exported from Pakistan to India, Afghanistan
and other parts of the world. Although his statements caused an outrage in Pakistan and cast a shadow
on Pakistan President Asif Ali Zardaris visit to Britain.

2. British Prime Minister David Camerons Visit to India (February 18-20, 2013):

A. Agreement to Begin Talks on Civil Nuclear Cooperation Agreement:

India and Britain agreed to begin talks on a Civil Nuclear Cooperation Agreement.

The Civil Nuclear Cooperation Agreement would build on the cooperation which began with a
Joint Declaration issued during the British Prime Ministers visit in 2010.

The Civil Nuclear Cooperation includes nuclear research projects which could lead to export of
advanced civil nuclear technology and exchanges among scientific institutions.

B. Britain Supports Indias Full Membership of the Multilateral Export Control Regimes: The British Prime
Minister extended his countrys support for Indias full membership of the four multilateral export control regimes
the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), the Wasenaar
Arrangement and the Australian Group.

C. Stepping up Discussions on Cyber Security: Both sides agreed to step up discussions on cyber security to
make Indias Information Technology (IT) networks safe.

D. India Sought Britains Help in the Investigations of the VVIP Helicopter Deal:
Prime Minister Manmohan Singh conveyed to the British Prime Minister David Cameron, Indias very
serious concerns at the allegations of unethical means used to secure the contract for the VVIP
helicopters by the Anglo-Italian company Agusta Westland.

The British Prime Minister assured the Indian Prime Minister of his governments cooperation in
the investigations.

143

E. Talks on Global and Regional Issues:
Prime Minister Manmohan Singh and his British counterpart David Cameron discussed global and
regional issues which included Afghanistan, Iran and Syria.

India and Britain have divergent approaches to the regional issues.

Britain agreed with Indias suggestion for a political and diplomatic solution to end the stand-off
on Irans nuclear programme.

F. Trade:
British Prime Minister David Cameron offered to relax visa norms by introducing same-day visa
services for investors.

Britain sought greater investments avenues by showing interest in participating in Indias
national manufacturing and investment zones and in a possible industrial corridor in the
Mumbai-Bangalore sector.

G. Tax Evasion:

Both sides expressed commitment to combat tax evasion and said that the Double Taxation Avoidance
Convention (DTAC) would improve transparency in tax-related matters and promote mutual
economic cooperation.

Both countries were committed to the fight against tax evasion and were strong proponents of
transparency in tax matters, according to the Joint Statement.

H. Financial Sector:

Britain asked India to further open up its financial sector services like banking and insurance to
increase investments between the two countries.

Mr. Cameron met Indias industrial leaders in Mumbai.

I. Significance of the Visit:

The British Prime Minister David Camerons second visit to India was aimed at revitalising
India-British relations at the strategic level, according to analysts.

Focus of the Visit on Economic Relations: Analysts point out the focus of the British Prime
Ministers visit was on economic relations as a 100-member business delegation (the biggest ever
from Britain) accompanied him.

Mr. Cameron sought special relationship with India to harness the immense potential of Indias
economy that was going to be one of the top three economies in world by 2030. He pointed out that
both countries need to remove the hurdles to cooperation by making it easy to invest in each other.

The British Prime Minister said that there would be no limit on the number of Indian students who
can study in Britain, and other who want to stay on and work.

Mr. Cameron became the first serving British Prime Minister to pay his respects to those who lost
their lives at the Jallianwala Bagh massacre of 1919 in which British troops led by Brigadier-General
Reginald Dyer fired on a peaceful gathering killing at least 1,000 people. He emphasised that the
Jallainwala Bagh massacre was a deeply shameful act in British history.

The British Prime Minister rejected any role for Britain in the India-Pakistan dispute.

144

III. Visit to India by the British Foreign Secretary and the Chancellor of
Exchequer (July 07, 2014):

1. Stepping Up Engagement with the New Government in India:

On July 07, 2014, British Foreign Secretary William Hague and his colleague
Chancellor of Exchequer George Osborne visited India as part of stepping up
Britains engagement with the new government under Prime Minister Narendra
Modi.

It was a measure of the ambition and drive and pace of the new government of
Prime Minister Modi, that this complete turnaround in sentiment about the Indian
economy had been achieved in just seven short weeks, according to Mr. Osborne.

Mr. Hague pointed out that the Modi governments bold programme would allow
India and the UK to build a special partnership as envisaged by Prime Minister
David Cameroon.

The importance of the Indo-UK relationship could be gauged by the fact that 50
British Ministers had visited India in recent years, according to Mr. Hague.

The British Foreign Secretary pointed out that the world was systematically less
stable and predictable and Indias clout should be more strongly felt around the
globe.

2. Deal Concluded for Supply of British Defence Equipment to the Indian Air Force:

A 250 million deal was concluded to supply British defence equipment to the
Indian Air Force (IAF), according to the British Chancellor of Exchequer George
Osborne.

The Defence Ministry signed a contract of 250 million with MBDA UK for the
supply of advanced short-range air-to-air missiles for the IAFs Jaguar fleet.

The IAF would call the missile the New Generation Close Combat Missile
(NGCCM), according a British statement.


The visit to India by the British Foreign Secretary William Hague and his colleague
Chancellor of the Exchequer George Osborne was seen as part of the trend of the
major powers stepping up their engagement with the new government in India
under Prime Minister Narendra Modi.

During the visit a contract for the supply of short-range air-to-air missiles for
IAFs Jaguar fleet was concluded.

Analysts point out that Indias terms of engagement with Britain were expanding
with Indian companies becoming major investors in Britain.

During the visit by the British Ministers, Indias Cipla announced that it would
invest $171 million for drugs research in the UK and the Mahindras would invest
$34 million to develop electric cars in Britain.

145

Analysts suggest that Indias thriving relations with Britain could be leveraged to
enhance relations with other major powers of a multi-polar world.

IV. Conclusion:

1. Strong India-Britain Relations:
Britain is the largest European investor in India
India is the second largest investor in Britain
Indian students are the second largest group in Britain
Both countries have strong historical, linguistic and cultural relations

2. Britain Looking Towards Asia to Develop New Partnerships: Analysts, point out that
currently Britain is looking towards Asia to develop new partnerships with the aim of using
Asias economic dynamism to enhance its position as a major global economy.

3. New Phase of Indo-British Relations with Britain deciding to Deal with India as a
Rising Power with Focus on Economics and Trade: Analysts point out that there is a new
phase in Indo-British relations where Britain has decided to deal with India as a rising power.
The focus of the relations has now shifted to economics and trade.

4. Need for a Stronger, Wider, Deeper Relationship between India and Britain: During his
visit to India in February 2013, British Prime Minister David Cameron made a case for a
stronger, wider, deeper relationship between India and Britain. Based on the shared values of
democracy and history, Britain should be Indias partner or choice in the years ahead.

5. Indias Security Concerns must be Integrated with the Western Moves in
Afghanistan: Analysts point out that Indias security concerns about terror groups in the
neighbourhood including the Taliban and the Lashkar-e-Taiba should be integrated into the
western moves in Afghanistan. Britain needs to keep these concerns in view as it talks with
Afghanistan and Pakistan before the 2014 withdrawal of western troops from Afghanistan.

SUMMARY
I. Introduction:
1. Britain One of India's Closest Strategic Partner in Europe
2. Strong Indo-British Bilateral Relations
3. Nearly Two Million People of Indian Origin Living in the UK
4. Britain Feels that India has an Increasingly Important Role in Global Affairs
5. Importance of India for Britain
Indias dynamic economy
Indias democracy with three million elected representatives - a beacon to the world
Indias tradition of Tolerance - dozens of faiths and hundreds of languages living side by side
Indias sense of responsibility - reconstruction assistance to Afghanistan, peacekeeping in Sierra Leone
or providing intellectual leadership in the G-20
India a source of strength for the world
6. Importance of Britain for India:
Britain and India are natural partners
Both countries have deep and close connections among the people
Nearly two million people of Indian origin living in Britain
Britain and India are closer culturally
Britain is the worlds sixth largest manufacturer and the best base for companies wanting to do business
in Europe.
Britain is a hub of science and innovation with some of the best universities in the world
7. Irritants in Indo-Britain Relations:
Tax matters concerning British companies in India like Vodafone and Shell.
Indias serious concerns at charges of corruption in the VVIP helicopter deal with Agusta Westland, and
Anglo-Italian conglomerate.

146

II. Visit to India by the British Foreign Secretary and the Chancellor of Exchequer (July 07,
2014):
1. Stepping Up Engagement with the New Government in India:

British Foreign Secretary William Hague and his colleague Chancellor of Exchequer George
Osborne visited India as part of stepping up Britains engagement with the new government
under Prime Minister Narendra Modi.

It was a measure of the ambition and drive and pace of the new government of Prime Minister
Modi, that this complete turnaround in sentiment about the Indian economy had been achieved in
just seven short weeks

Modi governments bold programme would allow India and the UK to build a special partnership
as envisaged by Prime Minister David Cameroon.

The importance of the Indo-UK relationship could be gauged by the fact that 50 British Ministers
had visited India in recent years

World was systematically less stable and predictable and Indias clout should be more strongly
felt around the globe.

2. Deal Concluded for Supply of British Defence Equipment to the Indian Air Force:

A 250 million deal was concluded to supply British defence equipment to the Indian Air Force
(IAF)

The Defence Ministry signed a contract of 250 million with MBDA UK for the supply of advanced
short-range air-to-air missiles for the IAFs Jaguar fleet.

The IAF would call the missile the New Generation Close Combat Missile (NGCCM)


Part of the trend of the major powers stepping up their engagement with the new government in
India under Prime Minister Narendra Modi.

During the visit a contract for the supply of short-range air-to-air missiles for IAFs Jaguar fleet
was concluded.

Indias terms of engagement with Britain were expanding with Indian companies becoming major
investors in Britain.

During the visit by the British Ministers, Indias Cipla announced that it would invest $171 million
for drugs research in the UK and the Mahindras would invest $34 million to develop electric cars
in Britain.

Indias thriving relations with Britain could be leveraged to enhance relations with other major
powers of a multi-polar world.

III. Conclusion:

1. Strong India-Britain Relations:
Britain is the largest European investor in India
India is the second largest investor in Britain
Indian students are the second largest group in Britain
Both countries have strong historical, linguistic and cultural relations

2. Britain Looking Towards Asia to Develop New Partnerships

3. New Phase of Indo-British Relations with Britain deciding to Deal with India as a Rising Power with
Focus on Economics and Trade

4. Need for a Stronger, Wider, Deeper Relationship between India and Britain

5. Indias Security Concerns must be Integrated with the Western Moves in Afghanistan

147
vi. international current events
1. PAKISTAN (UPDATE)

I. Tehreek-e-Taliban (TTP) Attack Karachi Airport (June 09, 2014):

On June 09, 2014, Tehreek-e-Taliban (TTP) gunmen attacked the Karachi airport
with rocket launchers and suicide vests killing 38 people with 10 militants among
the dead.

The TTP said that the attack was its revenge for the killing of its leader
Hakimullah Meshud in a US drone attack in November 2013.

The TTP said that the Pakistani government had used peace talks as ruse and
stressed that more attacks would be launched in retaliation against recent
airstrikes by the Pakistani forces in the tribal areas bordering Afghanistan.

The Pakistani government had engaged in peace talks with the TTP to end the
bloody seven-year insurgency. However, the talks did not make any progress
and more than 300 people were killed in militant strikes since the talks began.

The TTP attack on the Karachi airport raised concerns about the security
situation in Pakistan with questions being raised about how the militants were
able to penetrate the airport of Pakistans biggest city.

Pakistans military had carried out a series of airstrikes in North Waziristan in
recent weeks killing dozens of people.

Defence analysts in Pakistan pointed out that the airstrikes had not hindered the
ability of the TTP to launch massive retaliatory attacks due to its penetration of
major cities especially Karachi through sleeper cells.

II. Pakistan Military Launched Airstrikes and Ground Offensive Against the
TTP in North Waziristan (June 15, 2014):

On June 15, 2014, Pakistans military said that on the directions of the government,
armed forces of Pakistan had launched a comprehensive operation against
foreign and local terrorists who were hiding in sanctuaries in North Waziristan.

The coordinated operation named Zarb-e-Azb (Sword of the Prophet) involved air
force, artillery tanks and thousands of ground troops, according to military officials.

Abu Abdul Rehman Almani, the Uzbek mastermind of attack on Karachi airport,
and several other commanders had been killed in the strikes, according to military
officials.

On June 17, Pakistani jets bombed targets in North Waziristan killing 37
insurgents.

The military offensive marked the end of the governments peace negotiations
with the TTP. Prime Minister Nawaz Sharif said in the Parliament that the government
had tried for more than four months to talk to the militants but their violence continued.
He stressed that Pakistan could not become a safe haven for militants.

148

The military operation also resulted in the exodus of civilians from the North
Waziristan tribal area with 300,000 people fleeing into the Pakistani cities of Bannu,
Peshawar and Kohat and across the border into Afghanistan.

On June 30, 2014, Pakistani military launched a ground offensive against militant
strongholds near the border with Afghanistan after evacuating nearly half a million
civilians from the tribal region.

The ground offensive was the second phase of the operation against the
militants in North Waziristan tribal area a lawless area in northwest Pakistan.

III. Pakistan Needs to take Decisive Steps to Eliminate Terror
Infrastructure:
Analysts point out that a military operation by the Pakistan forces in North
Waziristan tribal region has been a long-standing demand by the US and the
West, which accused Pakistan of using the area to give sanctuary to the Haqqani
network of militants who had launched raids on NATO targets inside
Afghanistan.

The Pakistan government needs to go beyond airstrikes and put ground forces
in North Waziristan tribal areas, according to analysts.

Sustained counter-insurgency operations in Pakistans northwest region near
the Afghan border would effectively cut off the TTP from its Afghan counterpart
along with the Haqqani network, according to analysts.

Analysts point out that if the Pakistan state structure is to survive, then the
Pakistan military and government have to end the establishments link with the
militants.

There needs to be a two-pronged strategy one at the military level and other at
the societal level to end the selectivity policy of encouraging some militants
and taking on others, according to analysts.

The Pakistan military-intelligence establishment also needs to be cleansed of
elements with links to terrorists, according to analysts.

The international community would extend its full support to Prime Minister
Nawaz Sharif and the Pakistani establishment in eliminating the terror
infrastructure from the soil of Pakistan.

Analysts point out that the Pakistani society is now accepting the domestic source
of their terror problems. India can help by engaging with any section of Pakistani
society that is prepared for such engagement.

SUMMARY
I. Tehreek-e-Taliban (TTP) Attack Karachi Airport (June 09, 2014):
On June 09, 2014, Tehreek-e-Taliban (TTP) gunmen attacked the Karachi airport with rocket
launchers and suicide vests killing 38 people with 10 militants among the dead.

The TTP said that the attack was its revenge for the killing of its leader Hakimullah Meshud in a
US drone attack in November 2013.

The TTP said that the Pakistani government had used peace talks as ruse and stressed that more
attacks would be launched in retaliation against recent airstrikes by the Pakistani forces in the
tribal areas bordering Afghanistan.
149

The Pakistani government had engaged in peace talks with the TTP to end the bloody seven-year
insurgency. However, the talks did not make any progress and more than 300 people were killed
in militant strikes since the talks began.

The TTP attack on the Karachi airport raised concerns about the security situation in Pakistan
with questions being raised about how the militants were able to penetrate the airport of
Pakistans biggest city.

Pakistans military had carried out a series of airstrikes in North Waziristan in recent weeks
killing dozens of people.

Airstrikes had not hindered the ability of the TTP to launch massive retaliatory attacks due to its
penetration of major cities especially Karachi through sleeper cells.

II. Pakistan Military Launched Airstrikes and Ground Offensive Against the TTP in North
Waziristan (June 15, 2014):
On the directions of the government, armed forces of Pakistan had launched a comprehensive
operation against foreign and local terrorists who were hiding in sanctuaries in North Waziristan.

The coordinated operation named Zarb-e-Azb (Sword of the Prophet) involved air force, artillery
tanks and thousands of ground troops

Abu Abdul Rehman Almani, the Uzbek mastermind of attack on Karachi airport, and several other
commanders had been killed in the strikes

On June 17, Pakistani jets bombed targets in North Waziristan killing 37 insurgents.

The military offensive marked the end of the governments peace negotiations with the TTP

The military operation also resulted in the exodus of civilians from the North Waziristan tribal
area

On June 30, 2014, Pakistani military launched a ground offensive against militant strongholds
near the border with Afghanistan

The ground offensive was the second phase of the operation against the militants in North
Waziristan tribal area a lawless area in northwest Pakistan.

III. Pakistan Needs to take Decisive Steps to Eliminate Terror Infrastructure:

Military operation by the Pakistan forces in North Waziristan tribal region has been a
long-standing demand by the US and the West, which accused Pakistan of using the area to give
sanctuary to the Haqqani network of militants who had launched raids on NATO targets inside
Afghanistan.

The Pakistan government needs to go beyond airstrikes and put ground forces in North
Waziristan tribal areas

Sustained counter-insurgency operations in Pakistans northwest region near the Afghan border
would effectively cut off the TTP from its Afghan counterpart along with the Haqqani network

If the Pakistan state structure is to survive, then the Pakistan military and government have to
end the establishments link with the militants.

There needs to be a two-pronged strategy one at the military level and other at the societal level
to end the selectivity policy of encouraging some militants and taking on others

The Pakistan military-intelligence establishment also needs to be cleansed of elements with links
to terrorists

The international community would extend its full support to Prime Minister Nawaz Sharif and the
Pakistani establishment in eliminating the terror infrastructure from the soil of Pakistan.

Pakistani society is now accepting the domestic source of their terror problems. India can help
by engaging with any section of Pakistani society that is prepared for such engagement.
150
ASIA
vi.2. AFGHANISTAN

I. Background:

1. Location: Afghanistan is located in southern Central Asia, sharing borders with northwest Pakistan, eastern
Iran, and southern Turkmenistan, Uzbekistan and Tajikistan. It also shares a short border with western China. It is
a landlocked country with a rugged terrain and arid conditions.

2. Ethnic Groups: Pashtuns (38%), Tajiks (25%), Hazaras (19%) and Uzbeks (6%).

3. Centre of Transport Routes: Afghanistans geographic position has positioned it as the centre of transport
routes of global importance. Afghanistan was once a bustling Central Asian trade hub.

4. Early History:
1919: Afghan Monarchy is established with British support.
1933: Mohammed Zahir Shah becomes the king at the age of 18.
1973: Afghan king Zahir Shah overthrown by his cousin Mohammed Daoud in a coup. The coup set in motion
the events which culminated in the revolution of communist army officers in 1978.

5. Soviet Occupation 1979- 1989:
1979: The Soviets invades Afghanistan to support the government against the Mujahideen, who unite
disparate local factions under the banners of Islam and anti-Soviet nationalism.
The Mujahideen receive large financial, military and intelligence support from the US, channelled through
Pakistan and funded largely by Saudi Arabia and the Gulf Arab States.
1985-86: The Soviet army of 100,000 soldiers failed to subdue the Mujahideen factions that received US
arms. Najibullah was installed by the Soviet Union.
1989: The Soviets had to withdraw under intense pressure and resistance by the Afghan Mujahideen.

6. Civil War 1989-96:
1992: The pro-Soviet Government of Najibullah fell in 1992. The Mujahideen factions seized Kabul but
started fighting among themselves.
1994: The UN withdrew from Afghanistan on grounds of security. Gulbuddin Hekmatyar, leader of the
Hezb-e-Islami faction launched an attack to oust interim President Burhanuddin Rabbani. Since the
Mujahideen took control of Afghanistan in 1992, there has been anarchy in many parts of the country.

7. Taliban 1996- 2001:
Identity: The Taliban (students), a non-Mujahideen Pushtun dominated force came into being from
1994-95. Despite denials by both Pakistan and the US, it is suspected that Pakistan has blessed and fostered
the Taliban with strategic help from the US.
September 1994: The Taliban militia backed by Pakistan entered the fray, swiftly capturing the southern
province of Kandahar. In the following two years the Taliban captured many parts of the southern, western
and eastern Afghanistan.
September 1996: The Taliban militia captured Kabul from the forces of the Rabbani Government. The
Taliban proclaimed the conversion of Afghanistan into a full-fledged Islamic State and announced the
formation of an interim Administration.
Shura: The six-man Council (Shura) was constituted by the Talibans supreme leader Mullah Mohammed
Omar.

151

Leadership: The Taliban is a Sunni fundamentalist organisation headed by Mullah Mohammed Omar who
was educated in one of the religious schools run in Pakistan by the Jamait Ulema-e-Islam (JUI). He
participated in the Jihad (holy war) fought by the Afghans in 1980s against the Soviet occupation as a
member of the Harkat-e-Inquilab-e-Islami (HII) or Movement for Islamic Revolution.
Principles: Strict enforcement of a narrow interpretation of Islamic law that forbids women from working,
represses minorities, condemns television, film, singing and dancing, and imposed capital punishment for a
wide array of crimes.

8. Pakistan-Taliban Nexus:

a. Pakistans Stake in the Talibans Continuance in Afghanistan:
Russian Analysts point out that Pakistan played a key role in the installation of the Taliban regime in
Afghanistan. It had a serious stake in the continuance of the Taliban regime as it ensured huge finances from
the drug trade.
By keeping the Taliban regime in Afghanistan through massive financial and military aid, Pakistan managed
to protect a viable source of its income badly required for its survival and to maintain its diplomatic relevance
in the post-Cold war, according to a Russian daily.

9. Northern Alliance:
A core group of about 15,000 Tajik and Uzbek troops defending the north-eastern stronghold.
Gen. Ahmed Shah Masood was the leader of the alliance until his death in a suicide attack by the Taliban on
September 9, 2001.
The official head was the former President Burhanuddin Rabbani.

10. End of Taliban-Osama Axis in Afghanistan: Operation Enduring Freedom launched by the US on
October 7, 2001, to hunt down Osama Bin Laden and his Al Qaeda terrorist group resulted in the rout of the ruling
Taliban regime which had given refuge to him. The Northern Alliance backed by the coalition forces led by the US
gained full control of Afghanistan by December 2001. However, the Taliban leader Mullah Omar and Osama Bin
Laden have gone in hiding and are yet to be found.

11. UNs Attempt to Transform Afghanistan from a Failed State to a Stable Polity:
During the Taliban rule Afghanistan had become a lawless haven for transnational terrorists.
The rise of Al-Qaeda as an Afghanistan-based terrorist organisation coincided with the Talibans reign of
terror inside the country.
The rout of the Taliban by the US-led war against terrorism provided the UN with a unique opportunity to
guide Afghanistan to a more stable polity.
The UNs activism has been approved by the international community in view of the anti-terror objectives of
both the US and UN.
Multinational Peacekeeping Force - International Security Force in Afghanistan (ISAF): On January 5,
2002, the interim government of Afghanistan endorsed an agreement that paved way for a British led 4,500
strong multinational peacekeeping force called the International Security Force in Afghanistan (ISAF). The
mandate for the peacekeeping force is for six months. The peacekeeping force will be confined to Kabul and
its vicinity, according to the UN mandate.

12. Afghanistan's Democratic Set-up:

A. Executive:
President: Hamid Karzai
Two Vice-Presidents: Ahmad Zia Masood and Karim Khalili, members of the countrys two largest
ethnic minorities.
27-Member Cabinet: Appointed by the President and approved by the National Assembly.

B. Legislature - National Assembly:
Wolesi Jigra (Lower House - House of the People): 249 seats, elected by constituencies based on
provinces.
Meshrano Jigra (Upper House - House of Elders): 102 seats, drawn from provincial councils, district
councils, plus presidential appointees.
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C. Judiciary: Stera Mahkama (Supreme Court): Nine judges appointed for a 10-year term approved by Wolesi
Jigra.

13. Parliamentary Elections: On September 18, 2005, UN-organised elections were held for the first time in 30
years for the Lower House and 34 Provincial Councils. The elections were held on non-party basis with 5,800
candidates running as independents.

14. Significance of Democratic Elections:
Milestone in Afghanistan's Transition to Democracy
Completes the International Programme for Afghanistan's Transition to Democracy
Success of the Elections Points to the Defeat of the Taliban and Al-Qaeda
Elections Show Determination of the Afghans to Pursue Peaceful and Democratic Development
Parliament will Pass Laws and Act as a Check on Executive

15. Hurdles Facing the Parliament:
Partyless System Could Make the Legislation Contentious
Anger over Past Wrongs Could Lead to Conflict in Parliament
Inexperience with Elective Democracy Could Hamper Work

16. The US Role:
US War Against Terrorism in Afghanistan linked to the Eradication of the Infrastructure of Terror:
Analysts point out that the crux of the US War against Terrorism in Afghanistan is to eradicate the
infrastructure of the Taliban-Al-Qaeda terror axis. The US wants to see Afghanistan emerge as a terror-free
zone.
US Inclined to Preserve its Political Hold Over Afghanistan: Analysts feel that the US remains inclined to
preserve its political hold over Afghanistan as it sees that country as the first frontier in the global war on
terrorism. It is emphasised that the US should not lose the peace after having won the war against
terrorists in Afghanistan.

17. Set-Back to Pakistans Game Plan in Afghanistan:

A. Pakistans Role in Afghan Affairs:
Tried to Play a Key Role: Pakistan has always tried to play a key role in Afghanistan. It supported the
Mujahideen resistance against the Soviet occupation.
ISI Main Link Between the Mujahideen and Foreign Powers: Pakistani intelligence served as the main link
between Mujahideen and the foreign supporters, moving US weapons and Saudi money into Afghanistan. It
also facilitated the opium trade, according to analysts.
Created the Taliban: Pakistan created the Taliban from Afghan refugee youth studying in madrassas and
used it to oust the mujahideen from power in Kabul.
Pak Tribals Share Common Culture with Afghan Counterparts: The tribal areas in the northwest province
of Pakistan share a common history, border, religion and culture with counterparts in Afghanistan.
Common Views on Islam: Talibans interpretation of Islam is also shared by a number of Pakistanis who
have studied in the same madrassas (religious schools)
Finding a Strategic Depth in Afghanistan: Pakistan has nursed ambitions of finding strategic depth in
Afghanistan and exploiting its geopolitical location. However, these ambitions have come to an disastrous
end due to the fall of the Taliban regime.

B. Implications of Talibans Defeat for Pakistan:
Losing Political Clout in Afghanistan: With the fall of the Taliban regime in Afghanistan, Pakistan is now
faced with the prospect of losing all political clout in Afghanistan, which is crucial to its security and stability,
Deterioration in Afghan-Pakistan Relations: Analysts point out that Pakistan finds itself in a tight corner in
its relations with Afghanistan. Pakistan has to defend itself against allegations that it retains links with the
Taliban, actively assists insurgency, and is still obsessed with building strategic depth in Afghanistan.
Pakistan Backed the US Campaign Against the Taliban: Pakistan was in a difficult situation as the US
made the Taliban regime a prime target of war against terrorism. Pakistan reluctantly backed the US
campaign and ended up assisting the collapse of the Taliban which it had installed in Kabul five years ago.
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Hostile Government in Afghanistan may Spell Trouble on the Border: Analysts point out that any hostile
government in Afghanistan has the potential to create unrest along Pakistans western border.
Bitterness Among the Pashtuns of the Frontier: The fall of the Pashtun dominated Taliban has also
created feelings of bitterness and betrayal among ethnic Pashtuns who dominate the frontier tribal areas of
Pakistan.

18. August 2003 - NATO Takes Over Peacekeeping in Afghanistan:

North Atlantic Treaty Organisation (NATO), the 22-nation Western military alliance, took over the
peacekeeping operations in Kabul from August 2003.

This is NATOs first operation outside Europe since its establishment 54 years ago.

NATO took over the mission from the International Security Force for Afghanistan (ISAF). The ISAF
which looks after the security in Kabul.

October 2006 - Took Charge of the East from the US-led Coalition: On October 5, 2006, NATO
assumed control of the international forces across Afghanistan, taking charge of the east of the country
from the US-led coalition forces, the only area not under its control. The transfer led to 10,000 US troops
who had been operating in the east fall under the 37-nation International Security Assistance Force
(ISAF).

February 2006 - US Took Command of the 33,000 Strong NATO force: On February 4, 2006, US
General Dan Mcneil took over the command of NATO's 33,000 strong ISAF from British General David
Richard. The US doubled its combat troops in Afghanistan.

NATO's Anti-Taliban Offensive in Afghanistan: The year 2006 was the bloodiest since the US-led
forces ousted the Taliban in 2001. More than 4,000 people died in 2006. NATO launched air raids and
joint ground operations in southern Afghanistan killing many Taliban militants. The year 2006 was a year
of the ISAF and ANSF (Afghan Security Forces) and Taliban failure, according to the then ISAF Chief
David Richards.

19. Implications of NATOs Peacekeeping in Afghanistan:

A. Counter-Terrorism Included into the Military Strategy of NATO: The reason for NATOs peacekeeping
operations outside Europe is due to the inclusion of counter-terrorism and WMD as one of its military strategies in
the post-Cold War world order, according to analysts.

B. Testing NATOs Effectiveness as a Military Alliance: NATOs peacekeeping operations in Afghanistan
will test its effectiveness as a military alliance in countering violence arising out of religious extremism, ethnic
divides, collapse of state structures and foreign interference, according to analysts.

C. Presence of Neutral Armed Force Crucial to Contain Anarchy in Afghanistan: The expansion of NATO to
the interiors of Afghanistan is seen as crucial factor to contain anarchy and chaos and to prevent the return of
Taliban and extremists from Pakistan.

D. Impact on Regional Security:
Analysts point out that in Central Asia, two other regional security systems are already in place - the
Collective Security Treaty (CST) of the CIS (under Russias leadership) and the Shanghai
Cooperation Organisation (SCO, which includes China and Russia). The NATO also has partnership
programmes with Central Asian States.

It is to be seen whether three overlapping security alliances will work in harmony and enhance
stability in Central Asia or introduce competitive pressures in an already volatile region.

E. Political Implications of NATO's Expanding Role:

NATO's Operations No Longer Limited to any Geographical Region: Analysts point out that the
expansion of NATO's role in Afghanistan has made it clear that the alliance's operations will no longer be
limited to any geographical region.

Will Enhance the Role of NATO's Central Asian Partners for Peace: NATO's role in Afghanistan will
further enhance the role of its Central Asian partners for peace. NATO will require the assistance of these
countries for achieving the political goals of its operations. The Central Asian nations can exercise some
influence on important ethnic groups in Afghanistan.
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NATO will Have to Establish Regular Consultations with Pakistan: Analysts point out that as NATO
moves south it will have to establish contacts and regular consultations with Pakistan. NATO's initiatives
in the Pushtun dominated south and east require Pakistan's cooperation.

NATO Requires Regular Consultations with India, Russia and China: As NATO conducts its military
operations in an area adjoining Russia, China and India it needs to establish regular consultations with
these nations. Russia and China already maintain a regular political dialogue with NATO. India needs to
develop an institutional arrangement for a regular political dialogue with NATO. All these countries share
a common interest with NATO in eradicating terrorism and establishing stability in Afghanistan.

20. Key Elements of Insurgency in Afghanistan:

Taliban: Main force behind the insurgency in Afghanistan.

Al-Qaeda: Along with Taliban, the Al-Qaeda is also a significant factor behind the current rise in
insurgency in Afghanistan. Al-Qaeda's number two, Ayman al-Zawahiri was one of the main people
behind Afghanistan's suffering according to Mr. Karzai. In a video released on the Internet al-Zawahiri
called on Afghans to fight foreign invaders.

Gulbuddin Hekmatyar: Warlord, leader of the radical Hizb-i-Islami group and former Afghan Prime
Minister. Analysts point out that he has been loosely aligned with the Taliban and the Al-Qaeda against
the Afghan President Hamid Karzai.

Jalaluddin Haqqani: Senior Taliban commander believed to be operating on the Pakistan-Afghanistan
border.

Opium Traffickers: Want the Government to remain weak and unable to shut down their operations.
They often ally with anti-Government forces like the Taliban.

Tribes: 11 major tribes of Afghanistan compete for control of various regions. Some tribes have worked
with Haqqani to oppose the US troops. Insurgents have attacked Government targets in Afghanistan and
escaped into Pakistan.

21. Resurgence of Taliban:

New Phase of Insurgency: Analysts point out that the Taliban appear to be moving towards a new
phase of insurgency by flooding the rural areas of Afghanistan with weapons and men. The Taliban were
building on the campaign of suicide bombings and assassinations. The scale of the militants presence
has alarmed Afghan and foreign officials.

Biggest Show of Strength by Taliban: Analysts point out that in the biggest show of strength after
almost five years, pro-Taliban fighters have been terrorising southern Afghanistan - ambushing military
patrols, assassinating opponents and enforcing law in some villages where they operate with impunity.

Taliban's Growing Military Sophistication a Cause of Worry: The Taliban has been deploying suicide
bombers, improvised explosive devices, ambushes, ambushes, beheadings and sophisticated
propaganda techniques. Analysts point out that the Taliban's growing military sophistication is a cause of
worry. The Taliban is said to have a huge stockpile of lethal weaponry, including Stinger missiles.

Taliban's Pakistan Connection: Analysts point out that the Taliban movement is reported to have
headquarters in Quetta in Pakistan.

Failure of the US to Send Sufficient Troops to Afghanistan is Seen as the Reason Behind the
Taliban's Resurgence: Analysts feel that the refusal of the US to increase troops in Afghanistan was
one of the key reasons behind the resurgence of the Taliban. The report of the Iraq Study Group (ISG)
also highlighted the fact that soldiers on the ground are not enough in Afghanistan. The current ISAF
force was not enough to resist a regrouped Taliban.

Taliban's Control of Territory in Afghanistan Could Provide Al-Qaeda the Political Space to
Conduct Terrorist Operations: The ISG report pointed out that if the Taliban were to control more of
Afghanistan, it could provide Al-Qaeda the political space to conduct terrorist operations. Therefore, it
was critical for the US to provide additional political, economic and military support, according to the
report.

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Taliban Composed of Three-Tiers: The Taliban in Afghanistan is composed of three tiers, according to
the military commanders in Afghanistan. The three tiers are a hard core of ideologically committed
militants; a second tier of fellow travellers pursuing agendas that overlap with those of the Taliban such a
feuds or drug trafficking; and a third tier of foot soldiers fighting for a variety of reasons.

22. Taliban's Two-Pronged Strategy in Afghanistan:

Analysts point out that the Taliban has established a two-pronged strategy in Afghanistan. First to
re-establish its authority over the southern provinces around its former headquarters in
Kandahar.

Second to destabilise a ring of provinces around Kabul. Rear bases of Taliban in Baluchistan in
Pakistan also play a key role.

23. Pakistan Blamed for the Revival of Taliban in Afghanistan: Pakistan was blamed for failing to contain
militancy on its side of the border by the outgoing US commander of NATO forces in Afghanistan General McNeill.
He pointed out that militants stepped up attacks in recent months in the area as there was no pressure on them
from the Pakistani side.

24. Attacks by Taliban increase in 2008: The militancy in Afghanistan has claimed the lives of thousands of
Afghans and more than 1,000 foreign soldiers. The number of attacks by the Taliban had increased in 2008,
despite the presence of 70,000 international troops and the growing strength of Afghan security forces.

25. Taliban have a Permanent Presence in 72 Per Cent of Afghanistan: The International Council on Security
and Development pointed out that the Taliban have a permanent presence in 72 per cent of Afghanistan, up from
56 per cent in 2007. An average of 100 attacks are launched by the Taliban every week.

26. US Military Strikes on Militants Based in Pakistans Tribal Areas:

In 2008 the US launched at least 30 missile attacks on Pakistans tribal areas, which are used as a
haven by insurgents fighting international troops in Afghanistan.

Unmanned drones - launched and targeted by computers from the US - have been used to launch
the missile attacks on the insurgents in Pakistans tribal areas.

The US airstrikes have killed senior Al-Qaeda militants in Pakistan, but the tend to live with local
families in the tribal areas, making civilian casualties inevitable.

27. Protests against US Airstrikes in Pakistan and Afghanistan: The airstrikes by the US in Pakistans tribal
areas as well as within Afghanistan have caused widespread public anger, with resentment directed at the US, as
well as the Pakistan and Afghanistan governments.

28. Militants in Pakistans NWFP Torch NATO Supply Trucks: In December 2008, militants in Pakistans
North West Frontier Province (NWFP) torched trucks and containers bound for NATO troops in Afghanistan.
Around 75 per cent of supplies for NATO troops pass through Pakistan, carrying food, water, fuel, vehicles and
spare parts.

29. The US finds Alternative Route through Central Asia for Non-Lethal Supplies to Troops in
Afghanistan:
In February 2009, the US said that it had found new Central Asian routes for sending supplies for
expanded military operations in Afghanistan.

Tajikistan and Uzbekistan had agreed to the transit of non-lethal US supplies for troops in Afghanistan,
according to US Rear Admiral Mark Harnitchek.

Russia also agreed to a US request to ship non-military supplies for its forces in Afghanistan overland.

30. Obama Administrations New Af-Pak Policy:

Unveiling his Administrations new Afghanistan-Pakistan (Af-Pak) policy in March 2009, US President
Barack Obama vowed to wipe out terrorists from safe havens in Pakistan.

After years of mixed results the US will not provide a blank cheque to Pakistan, according to Mr.
Obama.
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Pakistan must demonstrate its commitment to rooting out the Al-Qaeda and violent extremists
within its borders, the US President emphasised.

Al-Qaeda a cancer that could devour Pakistan.

India, Russia and China Identified among countries having a stake in the security of the region.

The US must pursue constructive diplomacy with both India and Pakistan to lessen tensions
between the nuclear-armed nations that often teeter on the edge of escalation and confrontation.

The US would commit 4,000 more troops into Afghanistan.

The US would triple aid to Pakistan to $7.5 billion over five years.

The US would attempt to peel away more moderate Taliban factions and lead a global civilian
surge in Afghanistan.

The volatile Pakistan-Afghanistan border region was the most dangerous place in the world and
the situation in Afghanistan was increasingly perilous, according to Mr. Obama.

Multiple intelligence estimates warned that the Al-Qaeda was actively planning attacks in the US
from its safe havens in Pakistan.

If Pakistan did not act on intelligence on the whereabouts of terrorists, the US would.

31. Indias Role Critical in Af-Pak Strategy:

India was expected to play a critical role in rolling back the terror threat, according the US special
envoy for Afghanistan and Pakistan Richard Holbrooke, who visited India in April 2009.

The Indo-US relationship, hitherto restricted to bilateral issues, should now encompass regional
and global strategic issues, according to Mr. Holbrooke.

The situation in Afghanistan could not be settled without taking India on board, according to the
US special envoy for Afghanistan and Pakistan.

The US endorsed Indias regional primacy and the role it was playing in Afghanistan, against
objections from Pakistan.

India had a direct interest in the success of the Af-Pak strategy and was ready to play a
constructive role as a responsible power in working with the US and regional powers to defeat
extremism of all kinds, according to Indias Foreign Secretary Shiv Shankar Menon.

The US stressed that Pakistan needs to worry about its own terrorists rather than the presence of
Indians in Afghanistan.

In the post-Taliban era, India carried out massive development activities in Afghanistan; which
carved a very positive influence of India in Afghanistan.

32. Pakistan the Real Problem in the Region:

The situation in Afghanistan would remain the same if Pakistan does not Change, according to the
US special envoy for Afghanistan and Pakistan Richard Holbrooke.

The strategic review of Af-Pak policy contains a clear and unambiguous message Afghanistan
and Pakistan are integrally related it would not be possible to deal with Afghanistan if the situation
within Pakistan does not change, according to Mr. Holbrooke.

The US and Europe continue to remain under significant threat of attack by Islamist Jihadis, who
inhabit Pakistan. The terrorists in western Pakistan were responsible for 9/11, Madrid and Mumbai, and
were planning more attacks. So, it was important to move against them, according to Mr. Holbrooke.

The US view was significant for India, as it achieved Indias goal of making the US understand
that the war against terrorism cannot be segmented, it was the same for everyone.

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33. The second Presidential elections were held in Afghanistan on August 19, 2009:

On November 03, 2009, President Hamid Karzai was declared the winner after his rival Abdullah
Abdullah pulled out of the run-off elections accusing the Karzai-appointed Independent Election
Commission of bias.

34. International Conference on Afghanistan (London, January 28, 2010):

Conference was attended by representatives of more than 70 countries including India. The
Conference was also attended by the representatives of the UN, EU and NATO.

The Conference paved the way for moderate Taliban to be lured into the peace process with
offers of cash, jobs and security.

Donor countries, led by the US and UK agreed to set up a multi-million pound peace and
reintegration fund in return for an assurance from the Afghan President Hamid Karzai to fight
corruption and pursue a more coherent political strategy to push the peace process forward.

The Afghanistan President proposed to constitute a National Council for Peace, Reconciliation
and Reintegration. It would be followed by a peace Jigra.

Six-Point Programme to rebuild the country - Good Governance and Fighting Corruption would
be Its Key Focus.

The Afghan President appealed to the neighbouring countries, particularly Pakistan, to support
the Afghan Governments peace and reconciliation endeavours.

Those Taliban militants who agreed to renounce violence would be allowed to join the peace
process, according to the British Prime Minister Gordon Brown.

Those Taliban militants must cut any ties with Al-Qaeda, respect the Constitution and pursue
their political goals peacefully, according to Mr. Brown.

The process of handing over district-wise responsibility to the local forces in Afghanistan would
start by the end of 2010 marking a decisive stage in the Wests exit strategy, according to the British
Prime Minister.

35. Indias Role at the Conference:

India is among the major donors of development aid to Afghanistan.

India has a high-profile political and strategic presence in Afghanistan.

India was represented at the Conference by the External Affairs Minister S.M. Krishna.

India did not have a bigger role to play at the Conference.

India, Russia and Iran are of the view that there is no good or bad Taliban, they are all terrorists.

India considered the Taliban to be terrorists who have closer links with Al-Qaeda and other
terrorist groups, according to Mr. Krishna.

India would go along with the reconciliation programme announced in London.

Mr. Krishna said that a solution through military action was not the only alternative. There were
other alternatives that need to be tried.

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36. US President Barack Obama Announced Troop Withdrawal from Afghanistan (June
23, 2011):
On June 23, 2011, the US President Barack Obama announced that the US had largely achieved
its goals in Afghanistan.

Mr. Obama asserted that Afghanistan on longer represented a terrorist threat to the US and that
the tide of war was receding.

Mr. Obama acknowledged the economic strains by stressing that it was time for the US to focus
on nation-building at home.

Mr. Obama announced the withdrawal of 33,000 troops by 2012 amounting a third of the 100,000
troops now in Afghanistan. The President stated that 10,000 troops would be withdrawn from
Afghanistan by the end of 2011 and the remaining 23,000 troops from the 2009 surge of forces would
leave by the summer of 2012.

The drawdown would continue at a steady pace, until the US handed over security to the Afghan
authorities in 2014.

The US troop reductions would be faster than the recommendations made by the US military
commanders.

The troop reductions were announced in the wake of relentless budget pressures, an
increasingly restive US public and a re-election campaign in 2012, according to analysts.

The US President emphasised on ending Americas longest war responsibly and warned about the
risks of overextending the military by sending large number of soldiers into combat.

Mr. Obama acknowledged that Huge challenges remained before an end to the conflict in
Afghanistan that has cost 1,500 US lives and hundreds of billions of dollars.

The US troop withdrawals signal the beginning of the winding down of the militarys
counterinsurgency strategy adopted by the President in 2009. There would be more emphasis on
focused clandestine counterterrorism operations in case of substantial troop reduction, according to the
administration officials.

37. Bonn Conference (Germany, December 6, 2011):

The Bonn Conference on Afghanistan held on December 6, 2011, was attended by 1,000
delegates and 90 Foreign Ministers including Indias External Affairs Minister S.M. Krishna. The
conference was boycotted by Pakistan due to the killing of its soldiers by NATO forces.

The theme of the Conference was From Transition to Transformation.

The Declaration of the Bonn Conference outlined a series of measures of firm mutual
commitments for the decade following the foreign troop withdrawal by end 2014.

Afghanistan committed to do its homework in terms of reform, promoting good governance,
rooting out corruption and strengthening democracy.

Afghanistan estimated that it would need a contribution of around $10 billion in 2015 and onward,
slightly less than half of the countrys annual Gross National Product (GNP).

The international community pledged to direct financial support toward Afghanistans economic
development and security-related costs.

Iran attended the Conference and strongly condemned the idea of any military bases remaining
in Afghanistan after 2014. The US and the Afghanistan Government were finalising an agreement for
small number of remaining US forces after the troop withdrawal in 2014.

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38. Indias View at the Bonn Conference:

The international community needs to stay engaged in Afghanistan for the long term, for both its
security and development, Indias External Affairs Minister S.M. Krishna told the Bonn Conference.

Stressed that the root causes of intervention - the dangers of terrorism and radicalism - remain
potent as ever.

Afghanistan today faced at least four deficits:
a security deficit
a governance deficit
a development deficit
an investment deficit.

To address these deficits Afghanistan needs time, development assistance, preferential access
to world markets, foreign investment and a clear end-state and strategy to make sure that it does
not once again plunge into lawlessness, civil war and externally sponsored extremism and terrorism.

Conceptually there was need for something like a Marshall Plan for Afghanistan, involving all
major stakeholders. The Marshall Plan was devised by the US after the end of World War II to provide
monetary support to Europe to rebuild its economies and to combat the spread of Soviet Communism.

Afghanistan continued to face a potent threat to its security from terrorism and insurgency being
fuelled from outside its borders.

India had already pledged $2 billion till 2014 to rebuild Afghanistan and would continue to assist
in multifarious ways. Indian companies were willing to invest up to $10 billion in mining, setting up a
steel plant and related infrastructure in Afghanistan.

An Indian consortium of seven companies led by Steel Authority of India (SAIL) had won the right
to develop three iron ore blocks in Hajigak deposits in central Afghanistan.

The international community needs to offer a narrative of opportunity to counter the anxiety of
withdrawal, uncertainty, instability and foreign interference.

39. Taliban Opened a Political Office in Qatar for Negotiations with the International
Community:

In January 2012, the Taliban opened a political office in Qatar for negotiations with the
international community.

Secret discussions between the US and Taliban officials were on for months about taking
confidence building measures including the establishment of a political office outside the region and
release of Taliban prisoners.

A political office in Qatar would lessen Pakistans control of the Taliban, according to Western
diplomats.

40. US Briefs India on Dialogue with the Taliban:

On January 20, 2012, the US Special Representative for Afghanistan and Pakistan (AfPak) Marc
Grossman briefed Indian foreign policy officials in New Delhi on the US-Taliban dialogue.

The US sought greater cooperation from India in effecting political reconciliation.

The briefing to India was meant to address complaints from regional players that they were not
being informed on the latest moves by the US, according to analysts.

India was very much a player in the New Silk Road Initiative. These were all part and parcel of the
same fight, talk, build strategy, according to the US State Department spokeswoman Victorial Nuland.

India supports police training in Afghanistan and other things in Afghanistan, so its important
for the US to keep those lines of communication open, according to the US State Department
spokeswomen.
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41. Peace Process Roadmap laid out by the Afghanistans High Peace Council (December
2012):

Securing Collaboration with Pakistan in the Peace Process: The first stage calls for an end to
cross-border firing, release of Taliban detainees from Pakistan prisons, announcement by Taliban of
ending ties with the al-Qaeda, and renewal of negotiations for safe passage.

Formal Direct Negotiations with the Taliban in Saudi Arabia: The second stage calls for moves
towards formal direct negotiations with Taliban in Saudi Arabia in 2013, with US and Pakistan.

Agreements on Ceasefire and Transformation of the Taliban into Political Parties: The third stage
of the roadmap called for agreements on ceasefire and transformation of the Taliban into political parties.

Securing a Peaceful End of the Conflict during 2014: The final stages of the peace process roadmap
called for securing a peaceful end of the conflict during 2014.

42. Talks between the Government of Afghanistan and the Taliban (Chantilly, France, December
20-12, 2012):
In December 2012 two-day talks were held among various Afghan factions including the
Government representatives, the Taliban and the Northern Alliance in Chantilly, a suburb of Paris
in France.

The secret talks were set up by the Government of France seeking to play a bigger role in
Afghanistan, according to analysts. The talks were organised by the French Government supported
Foundation for Strategic Research (FRS).

This was the first time that the Taliban was in direct talks with other factions. The Government of
Afghanistan was represented by the Higher Peace Council.

The aim of the talks was to give the parties two days to hold candid and free discussions on
neutral territory, according to the FRS.

The talks focussed on the future stability of Afghanistan after the withdrawal of the NATO forces
in 2014.

43. Talibans Declaration at the Meeting:

Called for a new Constitution of Afghanistan as a pre-condition for it to join the countrys peace
process.

Stressed that Afghanistan needs a Constitution based on the principles of the holy religion of
Islam, national interest, historical achievements, and social justice.

The Taliban declaration displayed a lack of trust in the Government of Afghanistan.

44. Indias Views on Negotiations between the Government of Afghanistan and the Taliban:

Though there had been progress in the social and economic spheres, Afghanistan continued to
face an existential threat from terrorism, according to Indias Permanent Representative at the UN,
Hardeep Puri.

The infrastructure of terror was still intact, the syndicate of terrorism which included elements of
the al-Qaeda, Taliban, Lashkar-e-Taiba and other terrorist and extremist groups was active and
far from being isolated, according to Mr. Puri.

Although the security situation in Afghanistan remains fragile, ISAF withdrawal has proceeded
apace. This had accentuated the uncertainties with the risk of creating a security vacuum
coupled with an economic downturn in Afghanistan, which could undermine the hard fought gains
achieved during the last decade, according to Mr. Puri.

India stressed that it was important to ensure that the fight against terrorism was not diluted.

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It was pointed out that the linkages between al-Qaeda and Taliban were real and could not be
wished away. The recently adopted Security Council resolutions clearly recognised that aspect and had
tasked the Monitoring Team to report periodically on that matter.

45. Strained Relations between Afghanistan and Pakistan:
In April 2013, relations between Afghanistan and Pakistan were further strained as the Afghanistan
Government said that the Pakistani military had started unilateral construction and physical
reinforcement activities along the Durand Line.

Pakistan responded by saying that routine renovation was being carried out at an old post inside
its territory. It was stressed that the post was being renovated to interdict terrorists and criminals and
better manage the border area.

In May 2013, cross-border clashes erupted between the security forces of Afghanistan and
Pakistan.

Relations between Afghanistan and Pakistan have been increasingly strained despite renewed
efforts by the US Secretary of State John Kerry to get the two neighbours to work more closely
on peace efforts in Afghanistan.

Both countries are in dispute over a site where Pakistan is trying to construct a gate on what
Afghanistan considers its territory.

The Afghanistan-Pakistan border is unmarked in places where it becomes a battleground in the
fight against Taliban violence affecting both nations.

Afghanistan President Hamid Karzai warned Pakistan not to consider sending its forces in
Afghanistan.

Mr. Karzai emphasised that Pakistan should not try and force Afghanistan to accept the disputed
Durand partition line, set up in the 19
th
century, as the international border between Afghanistan
and Pakistan.

Analysts point out that Pakistan could try to exert its influence in Afghanistan through the Taliban
after the withdrawal of the NATO forces. Taliban has considerable influence in the southern and
eastern provinces of Afghanistan.

46. The US to Maintain 9 Military Bases after the Formal Withdrawal of NATO Forces in 2014:
On May 9, 2013, Afghanistan President Hamid Karzai announced that the US intends to maintain
nine military bases in Afghanistan after the withdrawal of its forces in 2014.

The US decision pointed to its intention to maintain a significant military profile in Afghanistan
for at least a decade, according to analysts.

The US wanted to establish military bases in major cities like Kabul, Bagram, Mazar-i-Sharif,
Jalalabad, Kandahar, Helmand, Shindand and Herat.

The Afghanistan Government was negotiating with the US and would not accept the US demands
unconditionally, according to Mr. Karzai.

Afghanistan Governments conditions were that the US intensify efforts in the peace process,
strengthen Afghanistans security forces, provide concrete support to the economy power,
roads and dams and provide assistance in governance, according to the Afghan President.

Afghanistan would be ready to sign a security pact, based on a Bilateral Security Agreement
(BSA), if these conditions were met.

In 2012, the Parliament of Afghanistan approved a deal in principle that allowed US forces to
remain in Afghanistan for another decade beyond 2014.

The establishment of permanent military bases by the US in Afghanistan would impact
neighbouring countries like Iran, Russia, the Central Asian Republics, China, Pakistan and India,
due to the strategic location of Afghanistan, according to analysts.
Afghanistan would maintain balanced relations with the neighbours, according to Mr. Karzai.
162

II. Current Situation in Afghanistan:

1. Presidential Election in Afghanistan in April 2014:

Presidential election was held in Afghanistan on April 5, 2014 to choose a
successor to President Hamid Karzai marking the countrys first democratic
transfer of power.

Afghanistan President Hamid Karzai, serving his second-term, is barred by the
Constitution from running for a third-term.

The President is elected as an individual and not as a representative of a party in
the Afghan system.

The front-runners in the Presidential election were Abdullah Abdullah the
runner up in the 2009 election, former World Bank academic Ashraf Ghani and
former Foreign Minister Zalmai Rasoul.

According to the Afghanistans Independent Election Commission (IEC) the
voter turnout was 60 per cent of the 12-million electorate. Compared to the 2009
elections, three million more people voted in 2014 election showing the public
confidence in the electoral process.

The voter turnout included all ethnic groups in Afghanistan and women voting in
large numbers estimated to be 35 per cent of the turnout.

2. India Lauded the High Voter Turnout:

India termed the Presidential election in Afghanistan as a resounding rejection of
the designs and ideology of terrorists and their supporters.

The Afghan people including women and youth had spoken in loud and clear
terms. This was an important message that everyone should listen to, according
to the Ministry of External Affairs spokesperson Syed Akbaruddin.

India appreciated the large turnout in the Presidential election in Afghanistan as
the resolve to exercise their franchise despite the threat of violence and
intimidation from terrorists and those who do not wish to see a strong
democratic and sovereign Afghanistan.

3. Second Round of Presidential Election as No Candidate Wins More than
50 Percent:

In the first round of Presidential election in Afghanistan no candidate could
secure more than 50 per cent of the vote which is mandatory according to the
Afghan Constitution.

Mr. Abdullah Abdullah secured 45 per cent of the vote and his main rival Ashraf
Ghani Ahmadzai 31.6 per cent.

The second round of the Presidential Election was held on June 14, 2014, which
again saw a higher voter turnout of 52 per cent despite threats and violence that
killed 50 people.

163

Preliminary results announced on July 8, 2014, gave Ashraf Ghani Ahmadzai a
vote of 56.44 per cent, but Abdullah Abdullah rejected the outcome, pointing out
that the vote had been marred by widespread fraud.

Thousands of supporters of Mr. Abdullah gathered in Kabul demanding that he
form a parallel government, a move which could create chaos in Afghanistan which is
already divided on ethnic lines.

On July 13, 2014, the Presidential rivals Abdullah Abdullah and Ashraf Ghani
agreed to an audit of all eight million votes cast in the run-off elections, following
intense shuttle diplomacy by the US Secretary of State John Kerry.

4. Significance of the Presidential Election in Afghanistan:

Observers feel that a credibly elected Afghan President and a Government with
the people behind them would be able to successfully tackle the challenge of
insurgency and also improve the economic situation.

The new President and Government of Afghanistan would require the financial
support of the international community and the help of US troops based in
Afghanistan, according to analysts.

The Presidential elections are seen as crucial for stability in Afghanistan after
the withdrawal of the NATO forces in 2014.

5. Attack on Indian Consulate in Herat (May 23, 2014):

On May 23, 2014, heavily armed terrorists attacked Indian consulate in Herat but
were repulsed by the Indo-Tibetan Border Police guards stationed at the
consulate in western Afghanistan. The Afghan military and police personnel gunned
down the three remaining attackers.

Indian Prime Minister Narendra Modi condemned the attack and applauded the
efforts of Indias security personnel and Afghan security forces for their valiant
efforts to fight the terrorists in Herat.

The attack on the Indian consulate in Herat was allegedly carried out
Pakistan-based terrorist outfit Lashkar-e-Taiba (LeT).

Indian intelligence officials felt that the attack on the Indian consulate was a
message to the Pakistan Prime Minister Nawaz Sharif, who was invited to Indian
Prime Minister Narendra Modis swearing-in ceremony, of the dangers of defying
military hawks hostile to peace with India.

The attack underlined that the threat to India interests in Afghanistan emerged as
a foreign policy challenge to the new NDA government under Prime Minister
Narendra Modi, according to analysts.

In June 2014, an Indian Jesuit priest was abducted in Herat province of
Afghanistan bordering Iran.

164

6. US Forces to Completely Withdraw from Afghanistan by End-2016:

On May 28, 2014, the US President Barack Obama announced that at the beginning of
2015, the US would have approximately 9,800 service members in different parts
of Afghanistan, together with its NATO allies and other partners.

By the end of 2015, the US would reduce that presence by roughly half,
consolidating US troops in Kabul and Bagram Airfield.

By the end of 2016, the US forces would complete their withdrawal from
Afghanistan.

Mr. Obama said that with the ending of the US presence in Afghanistan and the
gradual shift of US personnel to an advisory role, the Afghans would be
responsible for securing their country.

The US would no longer patrol Afghan cities or towns, mountains or valleys as
that was the task for the Afghan people, according to the US President.

7. Implications of the US Troop Withdrawal from Afghanistan:

The US forces would complete their withdrawal from Afghanistan 15 years after
they came to Afghanistan to oust the Taliban regime and hunt its ally Osama bin
Laden, the leader of the al-Qaeda, the author of the September 2001 terror
attacks in the US.

The Taliban crumbled in face of the US offensive in 2001, but later regrouped to
launch an insurgency drawing the US in its longest war.

Currently, there are around 51,000 US-led NATO troops are deployed in
Afghanistan.

Currently, the Afghan National Security Forces (ANSF) number 350,000.

The withdrawal of US troops from Afghanistan would be risky as the effort to
transfer responsibility for security to Afghan forces remains elusive as the
Afghan troops were proving to be unprepared for the job, according to analysts.

The resolve of the Afghan forces would be tested with the Taliban accelerating
the fighting with the killing of a number of high-prolife government functionaries.

The Afghan President Hamid Karzai welcomed the troop withdrawal, and termed
it as a good step in the favour of the US as well as Afghanistan, and extended his
support to it.

The Afghan President Hamid Karzai refused to sign the Bilateral Security
Agreement (BSA) with the US-led forces and has left to the new President who
would take office in August/September 2014.

The US Presidents announcement of having 9,800 troops in Afghanistan in the
beginning of 2015 was the bare minimum requirement to backstop the Afghan
forces, provide training, and conduct counterterrorism missions, according to
defence analysts.
165

Defence experts felt that the US should not have drawn an arbitrary timeline for the
withdrawal of troops from Afghanistan and instead the decision should have
been based on conditions on ground and whether it was confident that the
Afghan security forces could meet the Taliban threat.

The US intelligence agencies were also concerned that the complete withdrawal of
US forces from Afghanistan would lead to the loss of US air bases used for drone
attacks against al-Qaeda in Pakistan and for responding to a nuclear crisis in the
region.

The Taliban denounced US plans to have its troops in Afghanistan till 2016 and
threatened to wage war against the occupation until the very last foreign soldier
pulled out.

India would be little relieved that the US is not completely withdrawing its troops
from Afghanistan but it would also be compelled to engage more of its resources
in the fight in Afghanistan to keep the Taliban at bay, according to defence experts.

With Pakistan likely to revive its influence over the Taliban in Afghanistan, the
question remains if the international community would exert more pressure on it to
abandon its policy of using terror groups for strategic objectives.

After the withdrawal of all foreign troops from Afghanistan in 2014, there needs
to be a regional arrangement in place involving countries like Russia, China,
India and Pakistan, according to analysts.

8. US Soldier Released in Exchange of Five Taliban Militants (June 1, 2014):
On June 01, 2014, Bowe Bergdahl, the only US soldier captured by the Taliban
was freed in exchange for five Taliban insurgents in a deal brokered by Qatar.

The US Defence Secretary said that the prisoner swap could create an opening
for direct talks with the Taliban and provide a breakthrough for peace in
Afghanistan.

The spiritual leader of Taliban, Mullah Mohammad Omar issued a statement
praising the victory in a sign seen by analysts as potential confidence building
measure.

Many Republican lawmakers in the US criticised the prisoner swap with the
Taliban and wanted to know whether the Taliban prisoners would return to
fighting the US.

9. UN Report warned that the Taliban was Flush with Funds:
In June 2014, a UN report warned that the Taliban revenues were boosted in the
past year with narcotics income, revenue from corruption and extortion, and
increasingly drawing on revenue from the illegal exploitation of natural
resources.

The report of the UNs sanction monitoring team stated that as finances had grown,
the Taliban had become more of an economic actor, with incentives to preserve
this income and less potential incentive to negotiate with the government.

The UN report underlined growing concerns that a resurgent Taliban could
provide logistics and finances for Indian jihadists known to be with it.
166

III. Conclusion:

1. Afghanistan Remains Vulnerable as Foreign Forces Plan Withdrawal by End of 2014:
Observers opine that Afghanistan remains vulnerable and insecure as the NATO-led foreign
forces plan withdrawal from the country by the end of 2014. The US arrived in Afghanistan in
2001 to defeat the Taliban and has spent around $450 billion. The economy of Afghanistan is
dependent on military spending and two-thirds of Afghans earn less than $2 per day. More
than 30,000 children die of malnutrition problems every year in Afghanistan, according to aid
agencies.

2. Security Situation in Afghanistan a Matter of Concern for the Region: With the
resurgence of the Taliban, the security situation in Afghanistan has deteriorated. This is a
matter of serious concern for the whole region. Analysts point out that as long as the Taliban
remain capable of mounting attacks, the International Security Assistance Force (ISAF) cannot
leave Afghanistan.

3. The resurgence of Taliban a Grave Concern for India and Other Neighbours: Analysts
point out that the resurgence of Taliban in Afghanistan is of grave concern to India as Talibans
rise could provide strategic space to Pakistan-based groups like Lashkar-e-Taiba (LeT). This
would make India vulnerable to attack and would also push Pakistan into further destruction.

4. Pakistan Should Stop Supporting the Taliban and the Haqqani Terrorists: Analysts
point out that the international community and leaders in Afghanistan have been calling upon
Pakistan to crack down on the Taliban-linked Haqqani network of militants. However, elements
in Pakistans military establishment continue to support the proxies in Afghanistan looking at
them as allies. This linkage needs to be broken to make the region more secure.

5. Regional Arrangement for a Neutral Afghanistan:

After the phased withdrawal of the US and other foreign troops from Afghanistan
a regional agreement between Afghanistan and its neighbours has been
advocated.

The Shanghai Cooperation Organisation (SCO) which includes Russia, China
and the Central Asian Republics, came out in support of neutral Afghanistan
during its annual Summit in June 2011.

The concept of neutrality should be upheld as no peace deal will hold in
Afghanistan unless the outside interference by its neighbours comes to an end,

India and Iran have also extended their support to the SCOs position of
neutrality in Afghanistan.

SUMMARY
I. Current Situation in Afghanistan:

1. Presidential Election in Afghanistan in April 2014:

Presidential election was held in Afghanistan on April 5, 2014 to choose a successor to President
Hamid Karzai marking the countrys first democratic transfer of power.

Afghanistan President Hamid Karzai, serving his second-term, is barred by the Constitution from
running for a third-term.

167

The President is elected as an individual and not as a representative of a party in the Afghan
system.

The front-runners in the Presidential election were Abdullah Abdullah the runner up in the 2009
election, former World Bank academic Ashraf Ghani and former Foreign Minister Zalmai Rasoul.

According to the Afghanistans Independent Election Commission (IEC) the voter turnout was 60
per cent of the 12-million electorate

The voter turnout included all ethnic groups in Afghanistan and women voting in large numbers
estimated to be 35 per cent of the turnout.

2. India Lauded the High Voter Turnout:

India termed the Presidential election in Afghanistan as a resounding rejection of the designs
and ideology of terrorists and their supporters.

The Afghan people including women and youth had spoken in loud and clear terms. This was an
important message that everyone should listen to

India appreciated the large turnout in the Presidential election in Afghanistan as the resolve to
exercise their franchise despite the threat of violence and intimidation from terrorists and those
who do not wish to see a strong democratic and sovereign Afghanistan.

3. Second Round of Presidential Election as No Candidate Wins More than 50 Percent:
In the first round of Presidential election in Afghanistan no candidate could secure more than 50
per cent of the vote which is mandatory according to the Afghan Constitution.

Mr. Abdullah Abdullah secured 45 per cent of the vote and his main rival Ashraf Ghani Ahmadzai
31.6 per cent.

The second round of the Presidential Election was held on June 14, 2014, which again saw a
higher voter turnout of 52 per cent despite threats and violence that killed 50 people.

Preliminary results announced on July 8, 2014, gave Ashraf Ghani Ahmadzai a vote of 56.44 per
cent, but Abdullah Abdullah rejected the outcome

Thousands of supporters of Mr. Abdullah gathered in Kabul demanding that he form a parallel
government

On July 13, 2014, the Presidential rivals Abdullah Abdullah and Ashraf Ghani agreed to an audit
of all eight million votes cast in the run-off elections, following intense shuttle diplomacy by the
US Secretary of State John Kerry.

4. Significance of the Presidential Election in Afghanistan:

A credibly elected Afghan President and a Government with the people behind them would be
able to successfully tackle the challenge of insurgency and also improve the economic situation.

The new President and Government of Afghanistan would require the financial support of the
international community and the help of US troops based in Afghanistan, according to analysts.

The Presidential elections are seen as crucial for stability in Afghanistan after the withdrawal of
the NATO forces in 2014.

5. Attack on Indian Consulate in Herat (May 23, 2014):
On May 23, 2014, heavily armed terrorists attacked Indian consulate in Herat but were repulsed
by the Indo-Tibetan Border Police guards stationed at the consulate in western Afghanistan

Indian Prime Minister Narendra Modi condemned the attack and applauded the efforts of Indias
security personnel and Afghan security forces for their valiant efforts to fight the terrorists in
Herat.

168

The attack on the Indian consulate in Herat was allegedly carried out Pakistan-based terrorist
outfit Lashkar-e-Taiba (LeT).

The attack on the Indian consulate was a message to the Pakistan Prime Minister Nawaz Sharif,
who was invited to Indian Prime Minister Narendra Modis swearing-in ceremony, of the dangers
of defying military hawks hostile to peace with India.

The attack underlined that the threat to India interests in Afghanistan emerged as a foreign policy
challenge to the new NDA government under Prime Minister Narendra Modi

In June 2014, an Indian Jesuit priest was abducted in Herat province of Afghanistan bordering
Iran.

6. US Forces to Completely Withdraw from Afghanistan by End-2016:

Beginning of 2015, the US would have approximately 9,800 service members in different parts of
Afghanistan, together with its NATO allies and other partners.

By the end of 2015, the US would reduce that presence by roughly half, consolidating US troops
in Kabul and Bagram Airfield.

By the end of 2016, the US forces would complete their withdrawal from Afghanistan.

Ending of the US presence in Afghanistan and the gradual shift of US personnel to an advisory
role, the Afghans would be responsible for securing their country.

The US would no longer patrol Afghan cities or towns, mountains or valleys as that was the task
for the Afghan people

7. Implications of the US Troop Withdrawal from Afghanistan:

The US forces would complete their withdrawal from Afghanistan 15 years after they came to
Afghanistan to oust the Taliban regime and hunt its ally Osama bin Laden, the leader of the
al-Qaeda, the author of the September 2001 terror attacks in the US.

The Taliban crumbled in face of the US offensive in 2001, but later regrouped to launch an
insurgency drawing the US in its longest war.

Currently, there are around 51,000 US-led NATO troops are deployed in Afghanistan.

Currently, the Afghan National Security Forces (ANSF) number 350,000.

The withdrawal of US troops from Afghanistan would be risky as the effort to transfer
responsibility for security to Afghan forces remains elusive as the Afghan troops were proving to
be unprepared for the job.

The resolve of the Afghan forces would be tested with the Taliban accelerating the fighting with
the killing of a number of high-prolife government functionaries.

The Afghan President Hamid Karzai welcomed the troop withdrawal, and termed it as a good step
in the favour of the US as well as Afghanistan, and extended his support to it.

The Afghan President Hamid Karzai refused to sign the Bilateral Security Agreement (BSA) with
the US-led forces and has left to the new President who would take office in August/September
2014.

The US Presidents announcement of having 9,800 troops in Afghanistan in the beginning of 2015
was the bare minimum requirement to backstop the Afghan forces, provide training, and conduct
counterterrorism missions

US should not have drawn an arbitrary timeline for the withdrawal of troops from Afghanistan
and instead the decision should have been based on conditions on ground and whether it was
confident that the Afghan security forces could meet the Taliban threat.
169

Complete withdrawal of US forces from Afghanistan would lead to the loss of US air bases used
for drone attacks against al-Qaeda in Pakistan and for responding to a nuclear crisis in the
region.

The Taliban denounced US plans to have its troops in Afghanistan till 2016 and threatened to
wage war against the occupation until the very last foreign soldier pulled out.

India would be little relieved that the US is not completely withdrawing its troops from
Afghanistan but it would also be compelled to engage more of its resources in the fight in
Afghanistan to keep the Taliban at bay, according to defence experts.

With Pakistan likely to revive its influence over the Taliban in Afghanistan

After the withdrawal of all foreign troops from Afghanistan in 2014, there needs to be a regional
arrangement in place involving countries like Russia, China, India and Pakistan

8. US Soldier Released in Exchange of Five Taliban Militants (June 1, 2014):

On June 01, 2014, Bowe Bergdahl, the only US soldier captured by the Taliban was freed in
exchange for five Taliban insurgents in a deal brokered by Qatar.

The US Defence Secretary said that the prisoner swap could create an opening for direct talks
with the Taliban and provide a breakthrough for peace in Afghanistan.

The spiritual leader of Taliban, Mullah Mohammad Omar issued a statement praising the victory
in a sign seen by analysts as potential confidence building measure.

Many Republican lawmakers in the US criticised the prisoner swap with the Taliban and wanted
to know whether the Taliban prisoners would return to fighting the US.

9. UN Report warned that the Taliban was Flush with Funds:

In June 2014, a UN report warned that the Taliban revenues were boosted in the past year with
narcotics income, revenue from corruption and extortion, and increasingly drawing on revenue
from the illegal exploitation of natural resources.

As finances had grown, the Taliban had become more of an economic actor, with incentives to
preserve this income and less potential incentive to negotiate with the government.

The UN report underlined growing concerns that a resurgent Taliban could provide logistics and
finances for Indian jihadists known to be with it.

II. Conclusion:

1. Afghanistan Remains Vulnerable as Foreign Forces Plan Withdrawal by End of 2014

2. Security Situation in Afghanistan a Matter of Concern for the Region

3. The resurgence of Taliban a Grave Concern for India and Other Neighbours

4. Pakistan Should Stop Supporting the Taliban and the Haqqani Terrorists

5. Regional Arrangement for a Neutral Afghanistan:

After the phased withdrawal of the US and other foreign troops from Afghanistan a regional
agreement between Afghanistan and its neighbours has been advocated.

The Shanghai Cooperation Organisation (SCO) which includes Russia, China and the Central
Asian Republics, came out in support of neutral Afghanistan

The concept of neutrality should be upheld as no peace deal will hold in Afghanistan unless the
outside interference by its neighbours comes to an end

India and Iran have also extended their support to the SCOs position of neutrality in
Afghanistan.
170
vi.3. INDO-AFGHAN RELATIONS

I. Background:

1. Indias Interest in Afghanistan: Analysts point out that Indias interests in Afghanistan can be summed up as
follows:
Primary interest: To ensure the continuity of relations between the people of India and Afghanistan.
Stability of Polity: India believes that this process can be strengthened only if it supports the trends and
policies in Afghanistan which will ensure the economic well being of the Afghans, stability of the polity and
modernisation of that country, from the grip of extremist powers.
No intention of Interfering in the Internal Affairs: India has no interest of interfering in the internal affairs of
Afghanistan and will be willing to deal with whichever government is in effective power there. However, Indias
stand is clear that an Afghanistan dominated by externally supported Islamic extremist forces will not be in
Indias political and geo-strategic interests.
Willing to Continue Bilateral Cooperation: India will not participate in any manner in the conflicts in
Afghanistan, it will be willing to continue bilateral cooperation in those spheres which will be of mutual benefit,
especially those which benefit the Afghan people.

2. Economic Importance of Afghanistan: Indias then Foreign Secretary, Shyam Saran, quoted Mr. Karzai as
saying that India must look at Afghanistan as an economic opportunity and as a transit point to Central Asia. He
also said that India could help Afghanistan with capacity building in various fields.

3. Indias Role in the Post-Taliban Set Up in Afghanistan:

Positive Developments for India: The defeat of the Taliban by the Northern Alliance is seen as a very
positive development for India. The Northern Alliance was consistently supported by India even when it
appeared an insignificant force. India had also recognised the Rabbani Government and provided help to
the Northern Alliance.

Advantage to India Vis-a-Vis Pakistan: The fast changing ground realities in Afghanistan overtook the
political and diplomatic moves of both India and Pakistan, to the advantage of India and the discomfort of
Pakistan, according to analysts.

Re-establishing Indias Relevance: Analysts point out that the importance of Indias role in the Afghan
process is now being recognised by the international community especially by Russia and Iran. All the
three countries have been coordinating strategies. This informal arrangement could be strengthened and
formalised to re-establish Indias relevance.

Key Player in the Reconstruction of Afghanistan: India has reinforced its credentials as one of the key
players in the UN-led reconstruction of Afghanistan. India has already committed up to $750 million and
has taken up projects in several sectors including education, health, public transport and civil aviation.

4. Indias Engagement with the Government of Afghanistan:

A. High-Level Exchange of Visits: India and Afghanistan have engaged in a series of high-level exchanges
since the fall of the Taliban regime in 2001.

B. Reasons Behind Indias Active Engagement with Afghanistans Government:
Indias desire to re-establish its standing in Afghanistan by reviving its age-old ties with the Afghan
people.
To ensure that Afghan territory, as in the case of Taliban rule, is not used as a springboard for exporting
terrorism into Kashmir.
To marginalise Pakistans strategic influence in Afghanistan.

C. Reasons Behind Afghanistans Interim Governments Engagement with India:
Ensuring that countries in the region that have influence in major pockets of multi-ethnic Afghanistan are
restrained from destabilising the country.
Looking forward to Indias assistance for reviving Afghanistans war ravaged economy and institutions.
Indias contribution in rebuilding Afghanistans army and police. India is well -acquainted with the
Russian-origin equipment that is likely to form a major portion of Afghanistans future defence forces.
171

5. Indian Prime Minister's Visit to Afghanistan (August 28-29, 2005):
First Visit by an Indian Prime Minister in 29 Years
Emergence of a Moderate, Democratic Afghanistan Essential for Peace and Stability
India Offers $50-Million Aid to Afghanistan
Both Sides Reiterate Commitment to Work Together to Deal with Terrorism
Three MoUs Signed - education, health care and agricultural research.
India's Prime Minister Announces 1000 Scholarships for Afghan Students
Afghan's New Parliament Building to be Constructed with India's Assistance
India Supports Afghanistan's Engagement with SAARC
Greater Consultation and Cooperation Need for Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline

Restoring Historical Ties
The Potential for Constructive Interaction with Afghanistan is Enormous
India's Aid to Afghanistan Being Used to Create Tangible Public Assets
Afghanistan Pivotal to India's Security Concerns
The Visit Created the Goodwill for Greater Cooperation between the Two Countries

7. India's Assistance in Rebuilding Afghanistan:

A. India Increased Its Assistance to Afghanistan Above $1 Billion: On August 5, 2008 Prime Minister
Manmohan Singh announced the allocation of an additional $450 million in assistance to Afghanistan, during the
visit of the Afghan President Hamid Karzai to India. The additional aid would increase India's assistance to
Afghanistan to above $1billion. This signalled the importance India attached to peace and stability in Afghanistan,

B. Prime Minister Manmohan Singh pledged not to allow terrorism come in the way of India's abiding
commitment to Afghanistan's efforts to build a democratic, pluralistic and stable polity.

C. Afghanistan President Grateful to India for Its Assistance:
Afghanistan President Hamid Karzai was grateful to India for its assistance in the past as well as for the
additional $450 million pledged by Prime Minister Manmohan Singh.
Mr. Karzai Pointed out that India had been among the best contributors of assistance to the
rebuilding of Afghanistan.
India provided help in education in a significantly important way - a thousand scholarships a year
for five years.
India has been building transmission lines in Afghanistan
India is digging tube wells in six provinces
India is running sanitation projects in Kabul
India is working on lighting 100 villages using solar energy
India is building Afghanistan's new Parliament building
India has given three Airbus planes to Afghanistan's national airline
India was also constructing dams and building roads in Afghanistan.
Several thousand Indians are engaged in developmental work in Afghanistan
Afghan civil servants, diplomats, and police officials are being trained by India.

E. India Handed over the Delaram-Zaranj Strategic Highway Project to Afghanistan (January
2009):
215-km Long Highway, a Symbol of Indias Developmental Work in Afghanistan: On January 22,
2009, the Delaram-Zaranj strategic highway built by India braving Taliban attacks in which some Indians
were killed, was handed over to the Afghan authorities by External Affairs Minister Pranab Mukherjee in
the presence of Afghan President Hamid Karzai. The 215-km highway project built at a cost of Rs.600
crore is a symbol of Indias developmental work in Afghanistan.

The completion of the road reflects the determination of both India and Afghanistan that nothing
can prevent or hinder collaborations between the two countries, according to Indias External Affairs
Minister Pranab Mukherjee.

The strategic highway provides India easy and alternate access for its goods to Afghanistan and
Iran. The highway opened a shorter alternative route connecting Kabul to Iran. This was significant as
Pakistan has been denying transit facility to India for Afghanistan through its territory.

172

The highway project would further regional cooperation by encouraging new trade and transit
through Iranian ports and a supplementary access of Afghanistan to the sea.

India also constructed 58 km of inner city roads in Afghanistan.

Compared to other roads built in Afghanistan, the total cost of the highway project was modest.
The 339 engineers of Indias Border Roads Organisation (BRO) completed the construction of the
highway in three years, six months ahead of schedule.

8. Talibans Hostility towards India:

A. July 07, 2008 - Suicide Bomb Attack on Indian Embassy in Kabul: Over 40 people, including four Indians
(an Indian diplomat, a military attach and two jawans), were killed when a suicide bomber rammed his
bomb-laden car into the gates of the Indian Embassy in Kabul on July 7, 2008. Over 140 people were injured.

B. India has Refused to be Cowed down by Talibans Targeting of Indians in Afghanistan: The Taliban has
targeted Indians working in Afghanistan and a few Indians have been killed by the militants. However, India has
refused to be cowed down by the Taliban threats.

C. Reasons behind Talibans Hostility towards India: Analysts feel that the Talibans hostility towards India
could include the following reasons:
Indias support to the President of Afghanistan, Hamid Karzai, whom the Taliban consider a puppet
of the US.
Indias help in development projects in Afghanistan.

D. India's National Security Adviser (NSA) Points to the Involvement of Pakistan's ISI in the Attack on
Indian Embassy in Kabul:
India had intelligence inputs about Pakistan's involvement in the July 7 2008 suicide attack on
the Indian Embassy in Kabul, according to the then National Security Adviser (NSA) M.K. Narayanan.

India had no doubt that Pakistan's Inter-Services Intelligence (ISI) was behind the attack,
according to the NSA. He also stressed that the ISI needs to be destroyed. It was pointed out that India
had made this point whenever it had a chance, to interlocutors across the world. There might have been
some tactical restraint for some time, that restraint is no longer present, according to the NSA.

The NSA stressed that there was a need to retaliate against such acts. He felt that such retaliatory
acts would not impede the peace process as the ISI has never been a part of the peace process.

E. India and Afghanistan Favour Targeting Bases, Financial Links of Terror Outfits:

India's then Foreign Secretary Shiv Shankar Menon visited Afghanistan on July 13-14, 2008 to
review the security of the Indian Embassy, consulate and workers and held talks with the Afghan
President Hamid Karzai.

India and Afghanistan felt that the attack was the handiwork of enemies of relations between the
two countries.

Both sides agreed that terrorism is a threat to both countries, as well as the stability and
democracy of the region.

It was not enough to fight the symptom of terrorism that is visible in Afghanistan but the menace
needs to be rooted out from the region by targeting bases, recruitment places and financial links,
according to Mr. Karzai and Mr. Menon.

9. India's Concern at Violence in Afghanistan:

Increasing Terrorist Violence Undermines Security and Development in Afghanistan: India's
Prime Minister Manmohan Singh expressed India's concern over the increasing terrorist violence in
southern and south-eastern Afghanistan. It was stressed that the violence would undermine the security
of Afghanistan and would also hinder the ongoing development efforts.

Dealing with Challenge a Collective Responsibility of the International Community: Dr. Singh said
that dealing with the terrorist violence was a collective responsibility. He hoped that the conference would
reaffirm the international community's stake, responsibility and commitment to the reconstruction and
development of Afghanistan.
173

I0. October - 2009, Attack on Indian Embassy in Kabul :

A. Blast outside Indian Embassy in Kabul: On October 08, 2009, a Taliban suicide bomber blew up an
explosive-laden car outside the Indian Embassy in Kabul, killing 17 people and injuring 80, including three
Indo-Tibetan Border Police (ITBP) personnel. The embassy staff was safe. The explosion was more powerful
than the blast of July 07, 2008.

B. India Offered Assistance to Afghan Nationals who were Victims of the Attack: Indias Foreign Secretary
Nirupama Rao paid a two-day visit to Kabul and offered financial assistance to the families of two Afghan security
personnel who died in the attack. India also offered to treat Afghan nationals who were injured in the terror attack.

C. Implications of the Attack on Indian Embassy in Kabul:

Afghan Foreign Ministry - Attack Planned and Implemented from outside Afghanistan: While
strongly condemning the terrorist attack on the Indian Embassy, the Afghan Foreign Ministry said that the
attack was planned and implemented from outside the borders of Afghanistan and the matter was being
investigated. The apparent reference was to Pakistan, according to analysts.

Attempt to Undermine Indo-Afghan Friendship: Indias Foreign Secretary Nirupama Rao said that the
attack was clearly the handiwork of those who were desperate to undermine Indo-Afghan friendship and
do not believe in a strong, democratic and pluralistic Afghanistan.

International Community and the People of Afghanistan Faced a Clear Danger from the
Perpetrators of Terrorism: Ms. Rao said that the international community and the people of Afghanistan
faced a clear and present danger from the perpetrators of such wanton acts of terrorism and their patrons
residing across the border.

India becoming a Favoured Target of Terrorists in Afghanistan: Analysts point out that despite
playing no direct role in the US-led war against the Taliban and Al-Qaeda, India had become a favoured
target of terrorists in Afghanistan.

As a Target of Terror in Afghanistan, India had a Right to be More Assertive in Finding a More
Rational Approach to the Afghan Problem, according to analysts.

Fitting Response to the Attack would be for India to Step Up its Ongoing Efforts to Strengthen the
Development and Security Capabilities of Afghan Government: Afghanistan conveyed to India that
the most fitting response to the terrorist attack would be for India to step up its ongoing efforts to
strengthen the development and security capabilities of the Afghan Government through infrastructure
projects, police and human resource training.

India and Like-Minded Neighbouring Countries Need to Strengthen the Capabilities of the Afghan
Security Forces to Face the Situation After the Withdrawal of US Forces: Analysts point out that
although India has no intention of getting militarily involved in Afghanistan, it had to prepare for the
situation in Afghanistan after the withdrawal of US forces. India and like-minded countries in the region
need to work to strengthen the capabilities of the Afghan security forces.

11. Indians Killed in Suicide Attacks by Taliban on Two Hotels in Kabul (February 26, 2010): Nine
Indians, including two Major rank Army officers, and 10 others injured in suicide attacks by the Taliban at two
hotels in Kabul.

12. India Sent a Probe Team to Afghanistan to Discuss the Security of Indians in Afghanistan: In
the wake of the February 2010 bomb attacks, India sent a team of investigators to Kabul. The investigators
suspect the involvement of the Taliban, particularly the Haqqani group, league with elements of the
Lashkar-e-Taiba in the attacks.

13. Prime Minister Manmohan Singhs Visit to Afghanistan (May 12-13, 2011):

A. First Visit to Afghanistan in Six Years: Prime Minister Manmohan Singh visited Afghanistan on May 12-13,
2011. This was the first visit by the Prime Minister to Afghanistan in six years.

B. Expanding Bilateral Relations:

Prime Minister Manmohan Singh held wide-ranging discussions with the Afghan leadership to
advance Indias partnership to a new level in the coming years.

174

India cannot remain unaffected by developments in Afghanistan and it took a long-term view of
its partnership with Afghanistan, according to Dr. Singh. This included security, economy and
involvement of regional countries in Afghanistan.

C. Indias Development Assistance to Afghanistan:

Prime Minister Manmohan Singh announced a fresh commitment of $500 million to Afghanistan
in the next few years of development.

This would consist of specific projects and schemes and other initiatives that would be
developed in consultation with the Government of Afghanistan, according to Dr. Singh.

The Prime Minister reiterated Indias firm and unwavering commitment to assisting Afghanistan
in areas that were of priority and concern to them.

India would increase its focus the social sector, agriculture, capacity-building and access to the
Indian market and continue with its infrastructure projects.

Indias development assistance commitment to Afghanistan currently stood at $1.5 billion spread
over several sectors but there were still gaps. India now had a better idea of where it can and should
do more, according to the Prime Minister.

The presence of international forces in Afghanistan was a matter to be decided by the people and
the Government of Afghanistan.

Indo-Afghan strategic partnership would be implemented under the framework of a Partnership
Council, which would be headed by the two Foreign Ministers, according to Dr. Singh.

D. Significance of the Visit:
Prime Minister Manmohan Singhs visit to Afghanistan was significant in strengthening ties with
Afghanistan. Dr. Singh held productive and constructive discussions with the Afghan President Hamid
Karzai on issues like terrorism, recent developments in the region, especially the killing of al-Qaeda chief
Osama bin Laden in Abbottabad in Pakistan.

Both countries elevated their bilateral relations to a strategic partnership aimed at strengthening
their cooperation in the areas of security and combating terror. It was made clear that the strategic
partnership was not directed against any other state or group of states.

India increased its development aid to Afghanistan to$2 billion with the focus on capacity
building and human resources development.

14. Afghan Presidents Visit to India (October 4, 2011):

A. Third Extensive Meeting between the Afghan President and Indian Prime Minister in 2011: The
President of Afghanistan Hamid Karzai visited India on October 4, 2012 and held a meeting with Indias Prime
Minister Manmohan Singh. This was the third extensive meeting between the two leaders in 2011.

B. Strategic Partnership Agreement (SPA) between India and Afghanistan:

India and Afghanistan signed the first-ever Strategic Partnership Agreement (SPA) during Mr.
Karzais visit to India.

The SPA envisaged setting up of a Partnership Council, headed by Foreign Ministers of both
countries, which would be a nodal body for coordinating the SPA.

The Partnership Council would convene annually and would consist of separate joint working
groups on political and security consultations, trade and economic cooperation, capacity development
and education, and social, cultural and civil society.

There would be annual summits between the two countries, as well as a strategic dialogue which
would be led by the national security advisors.

India agreed to assist, as mutually determined in the training, equipping and capacity building
programmes for Afghan National Security Forces to deal with the withdrawal of foreign forces by
2014.
175

C. Two MoUs were Signed:
One in the field of mineral exploration.
Second for the development of hydrocarbons

D. Significance of the Strategic Partnership Agreement (SPA):

The agreement on a Strategic Partnership creates an institutional framework for future
cooperation in the fields of political and security, trade and economic cooperation, capacity building and
education, and social, cultural, civil society and people-to-people relations, according to Prime Minister
Manmohan Singh.

Both sides made it clear that the SPA was not directed against any country or group of countries.

The SPA confirmed that India was willing to play a larger role in Afghanistan after the withdrawal
foreign troops from that country by the end of 2014.

The proposal for a SPA was pending for six years since the Afghanistan President Hamid Karzai
proposed it. It was not implemented as Pakistan was not comfortable with the Idea of Indian-trained
forces on its eastern and western borders.

India has started increasing its exposure to the security scenario in Afghanistan with the
operationalisation of its airbase in Tajikistan, which was being used to strike at the Islamist militants
of Uzbekistan, according to analysts.

Both sides would also cooperate at the UN as one of the objectives was to help India attain a
permanent membership of the UN Security Council.

Apart from the security and political cooperation, the SPA details trade and economic
cooperation between the two countries ranging from assisting Afghanistan in developing trade routes
to exploration of mineral ores and oil in the country.

The trade and economic cooperation would mean that both countries would try to operationalise
the trilateral MoU with Iran to end Afghanistans isolation and dependence on Pakistan to reach the
sea.

The SPA confirmed Indias commitment to the development of Afghanistan. India is already the
sixth largest donor to Afghanistan with a commitment of $1.2 billion.

15. First Meeting of the Indo-Afghan Partnership Council (New Delhi, May 1, 2012):
The first meeting of the Indo-Afghan Partnership Council was held in New Delhi on May 1, 2012, and was
chaired by the two Foreign Ministers of India and Afghanistan, S.M. Krishna and Zalmai Rassoul.

India would get more involved in Afghanistans stabilisation process by hosting a conference of
regional investors which would look at the investment opportunities in Afghanistan.

Indias assistance to Afghanistan was neither transitory, nor in transition, according to Mr. Krishna.

India has won the Hajigak iron ore mine, which is know as the jewel of Afghanistans mining
sector. India is looking at six petroleum blocks in northern Afghanistan and copper mines in four different
parts of the country.

India would continue to partner Afghanistan to make sure that it would be a source of regional
stability and did not become a target for extremist forces, according to Indias External Affairs
Minister.

Afghanistans defence of its own territory was of extreme importance to India. Indias security was
entwined with the stability and security of Afghanistan, according to Mr. Krishna.

India underlined the need to adhere to the red lines in the reintegration process. The redlines for
reintegration were crucial in the common endeavour to prevent Afghanistan from sliding back to being a
safe haven for terrorists and extremist groups, and to preserve the gains made by the international
community in the past decade, according to Mr. Krishna.

India had been mentoring Afghan security forces, and both sides were in talks to refine the
process.
176

16. India-Afghanistan-US Trilateral Dialogue (September 26, 2012):

The first trilateral dialogue between India, Afghanistan and the US was held in New York on
September 26, 2012.

The three countries discussed the situation in Afghanistan along with other regional issues,
including terrorism.

The trilateral dialogue marked the further strengthening of Afghanistans cooperation with two of
its key friends and partners who were fully behind the vision of a secure, peaceful, democratic
and prosperous Afghanistan living in peace, security, friendship and cooperation with its region and the
wider world, according to a statement issued by Afghanistans Mission to the UN.

The trilateral dialogue set the tone for a series of consultations among the three countries having
common interests in south and central Asia.

The three countries pledged to work together on common challenges and opportunities
including combating terrorism and violent extremism, reviewing cultural exchanges and
increasing regional trade, investment and economic integration.

India and the US made it clear that the trilateral dialogue was not targeted against Pakistan,
which is wary of Indias role in Afghanistan.

17. India-China Dialogue on Afghanistan (Beijing, April 18, 2013):
On April 18, 2013, India and China held their first talks on Afghanistan in Beijing.

Both countries share common concerns on ensuring stability in Afghanistan in view of terrorism
and their investments in that country, according to analysts.

The two sides agreed the Afghanistan issue concerns regional security and stability, according to
Chinese officials.

Both countries reiterated their support for an Afghan-led and Afghan-owned reconciliation
process, and their commitment to working with regional countries and the international community to
help Afghanistan achieve objectives of peace and stability, independence and development, according to
the Chinese Foreign Ministry spokesperson.

The dialogue between India and China is part of the current bilateral and multilateral talks on
Afghanistan, in the lead up to the withdrawal of NATO forces in 2014.

18. Istanbul Process Conference on Afghanistan (Almaty, Kazakhstan, April 26, 2013):
The second follow-up conference of Foreign Ministers to the Istanbul meeting of 2011, was held
in Almaty, Kazakhstan on April 26, 2013.

The conference was attended by over 12 Foreign Ministers including Indias External Affairs
Minister Salman Khurshid.

The conference named as Heart of Asia was part of the Istanbul Process series which is aimed
at stabilising Afghanistan.

At the conference, India chaired the combined Confidence Building Measures (CBMs) of trade,
commerce and investment opportunities.

Indias External Affairs Minister pointed out that Indias leadership in the economic CBMs within the
Istanbul Process was rooted in the belief that Afghanistan would experience lasting peace only if
short-sighted perceptions of competition and strategic depth were replaced by collaboration and
economic investment in Afghanistan by countries of the region and the rest of the world.

India has focussed on economic empowerment of Afghanistan. This approach led India to
eliminate basic customs duties on all Afghan products, and the planned investment in Hajigak mines
was meant not only to evacuate iron ore but also to construct Afghanistans first steel plant, according to
Mr. Khurshid.

The greatest challenge to Afghanistan was the persistent threat of terrorism from beyond its
borders, according to Mr. Khurshid. India and other countries of the region were not immune to this
threat.
177

19. Afghanistan President Hamid Karzais Visit to India (May 20, 2013):

Mr. Karzai would discuss with India the flare-up on the Durand Line, the colonial-era border
between Afghanistan and Pakistan, in addition to ways to strengthen Afghan security situation.

Afghanistan had already agreed and signed a strategic pact with India and based on that
agreement, India assists Afghanistan on several grounds, including the military sector, according
to Mr. Faizi.

In order to strengthen Afghan security forces, the Afghan President would ask India to help his
country with military needs and shortages, according to Mr. Faizi.

In 2011, India signed a strategic partnership with Afghanistan, allowing the two countries to
expand training as the Afghan forces prepare to takeover security from foreign troops in 2014.

India has been training a limited number of Afghan military officers at its military institutions, but
has not provided weapons assistance except for some vehicles, according to analysts.

Indias cooperation with Afghanistan was focused on development projects but security was also
an important aspect given the challenges it faced.

Analysts point out that Pakistan has always resisted Indias involvement in Afghanistan, seeing it
as a plan to encircle it. However, some defence analysts in Pakistan felt that there would be no souring
of relations between Pakistan and India because of the likely arms deal between India and Afghanistan.

II. Implications of US Troop Withdrawal for India:

India told the US that it did not want to get involved in the security affairs of
Afghanistan but would continue its development efforts there.

In the wake of the US withdrawal of troops from Afghanistan, India needs to
calibrate its Afghanistan policy, according to analysts.

After the withdrawal of the US troops from Afghanistan, India faces the twin
threats of a resurgent Taliban and the ISI in Pakistan which looks at Afghanistan
as its exclusive playground, according to analysts.

India also needs to push for a regional approach that addresses the security
vacuum after the withdrawal of the US troops and takes care of the concerns of
all stakeholders.

India needs to diplomatically utilise the Shanghai Cooperation Organisation
(SCO) to evolve collective security in the region especially in Afghanistan.

As a major stakeholder, India must ensure that its interests and investments in
Afghanistan are not sidelined after the withdrawal of the US and other foreign
troops.

India needs to continue with its assistance projects and deepen its ties with the
Afghan Army and strengthen its relations with Pashtun political groups,

India also needs to engage Pakistan to make it clear that a stable Afghanistan
would be in the interest of both countries as gateway to Central Asia.

The main problem is from the safe sanctuaries provided to the Taliban in
Pakistans border areas with Afghanistan. As long as these safe havens remain, it
would not be possible to achieve peace and stability in Afghanistan and the region as a
whole, according to analysts.
178

A serious concern for India after the withdrawal of the US troops would be the
desire of the military establishment in Pakistan to control the government in
Afghanistan to gain strategic depth.

India has stressed the importance of improving the capacity of the Afghan
government to fight and overcome terrorism. The people of Afghanistan have the
right to decide their own destiny. It is felt that the time has not yet arrived.

India expressed hope that there would be no exit strategy for the international
community from Afghanistan.

India held talks with China, Japan and Iran to address the problem of funding the
security demands in Afghanistan which could cost around $4 billion a year after
the withdrawal of US forces.

Analysts point out that India needs to build on the trilateral engagement with the
US and Afghanistan to secure its assets in Afghanistan.

III. Afghanistan Keen on Indias Help After the US Troop Withdrawal:

After the withdrawal of the US troops from Afghanistan, the country would
witness a military vacuum and hopes that India would emerge as a major player
in filling the gap.

Afghanistan hopes that a prominent military dimension would raise the
Indo-Afghan relations to the next level.

By the end of 2014, the US would leave only 9,800 troops in Afghanistan, so the
Afghan government wants to boost its armed forces with military hardware from
India including Russian origin fighter aircrafts and tanks.

Afghanistan has requested India for military and training assistance as the
withdrawal date for US-led forces approaches.

India and Afghanistan must strengthen their strategic cooperation as
Afghanistan does not have the defence its needs to fight proxy terror groups,
according to Afghanistans Ambassador to India, Shaida Abdali.

In December 2013, Afghanistan requested India for supplying tanks, helicopters
and ground vehicles, which India politely turned down.

India supported infrastructure projects and provided military training to Afghan
troops and police forces in India.

India has refrained from supplying military hardware to Afghanistan to avoid
upsetting Pakistan which may construe the military help as interference in
Afghanistan, according to analysts.

Mr. Abdali confirmed that India and Afghanistan were working at a trilateral
transitory agreement with Iran to trade goods via the Iranian port of Chabahar,
which is being refurbished by India, as an alternative to the land route via
Pakistan.
179

IV. Conclusion:

1. India's Stakes in Afghanistan:

Afghanistan India's Gateway to the West: India looked upon Afghanistan not only as
a valued member of the South Asian fraternity but also as its gateway to the West.

High Strategic and Economic Stakes: Analysts observe that the terrorist attacks on
Indians in Afghanistan underlined the high strategic and economic stakes for India in
the reconstruction of Afghanistan.

India has Regained Influence in Afghanistan: India's resolve to continue providing
assistance to the people of Afghanistan is related to Afghanistan's importance in terms
of strategic location and history and the influence India has regained in that country
after September 11, 2001, according to analysts.

India's Growing Profile in Afghanistan: India's profile in Afghanistan is growing and
covers diverse sectors such as economy, technology and education. This situation is in
contrast to the one before the rout of Taliban where it had no contact with the
Government.

Engagement with Afghanistan Vital for the Fight Against Terrorism in the
Region: Analysts point out that India's engagement with Afghanistan is vital for the
ongoing fight against terrorism in the region that derives material and moral support
from the Taliban and the Afghan opium lords.

India's Participation in Afghanistan's Reconstruction: India has increased its
assistance to above $1 billion for Afghanistan's reconstruction in a number of projects
ranging from road construction, infrastructure and grassroots development.

Bright Prospects of Enhanced Trade and Investment between the Two Countries:
Analysts feel that there are bright prospects of enhanced trade and investment between
India and Afghanistan. This is evident from the interest shown by foreign investors in
Afghanistan and the Afghan economy showing signs of recovery.

A Close Relationship with Afghanistan Neutralises Pakistan's Clout in the
Region: Analysts point out that India's close relationship with Afghanistan helps to
neutralise Pakistan's clout in the region. The Taliban has been used as a weapon
against India by sections within the Pakistan establishment. Thus, a committed
relationship with Afghanistan has strategic advantages.

Need to Strengthen People-to-People Contacts in Afghanistan: Finally, analysts
feel that India needs to enhance its stake in the long-term development of Afghanistan
and strengthen people-to-people contacts.

2. Focus of Indias Afghan Policy:
Ensuring Afghanistan's territorial integrity and political stability
Preventing the Return of Taliban-inspired terrorism and religious extremism.
Afghanistan will emerge as a key land passage for the Caspian basin gas and oil which
are crucial for Indias growing energy requirements.

180

3. Securing Indias Interests in Afghanistan:

Indias development projects in Afghanistan remain the target of the Taliban.

Indias role in the long-term stability of Afghanistan is opposed by the Taliban as
it would strengthen the democratic Government in that country, according to
analysts.

India Needs to Consider Long-Term Scenarios of Its Political, Diplomatic and
Military Options in Afghanistan: Analysts point out that India needs to protect its
projects in Afghanistan while carving out a larger regional role for the long-term stability
of Afghanistan. In relation to the withdrawal of the US forces, India needs to consider
long-term scenarios of its political, diplomatic and military options in Afghanistan.

India can work towards the Creation of a Regional Grouping for Long-Term
Stability in Afghanistan: Analysts suggest that India could work towards the creation
of a regional grouping of like-minded countries including the US, Russia, Iran, the EU,
Central Asian Republics and China for a long-term stability in Afghanistan.

India also Needs to Widen Its Engagement with Different Sections in
Afghanistan: Analysts suggest that at the local level, India needs to widen its
engagement with different sections in Afghanistan. India needs to strengthen its
traditional support base among the Northern Alliance groups who are in need of Indias
support in building local capacities. The groups could help in protecting Indias aid
projects.

SUMMARY

I. Implications of US Troop Withdrawal for India:

India told the US that it did not want to get involved in the security affairs of Afghanistan but
would continue its development efforts there.

In the wake of the US withdrawal of troops from Afghanistan, India needs to calibrate its
Afghanistan policy

After the withdrawal of the US troops from Afghanistan, India faces the twin threats of a
resurgent Taliban and the ISI in Pakistan which looks at Afghanistan as its exclusive playground

India also needs to push for a regional approach that addresses the security vacuum after the
withdrawal of the US troops and takes care of the concerns of all stakeholders.

India needs to diplomatically utilise the Shanghai Cooperation Organisation (SCO) to evolve
collective security in the region especially in Afghanistan.

As a major stakeholder, India must ensure that its interests and investments in Afghanistan are
not sidelined after the withdrawal of the US and other foreign troops.

India needs to continue with its assistance projects and deepen its ties with the Afghan Army and
strengthen its relations with Pashtun political group

India also needs to engage Pakistan to make it clear that a stable Afghanistan would be in the
interest of both countries as gateway to Central Asia.

The main problem is from the safe sanctuaries provided to the Taliban in Pakistans border areas
with Afghanistan

A serious concern for India after the withdrawal of the US troops would be the desire of the
military establishment in Pakistan to control the government in Afghanistan

181

India has stressed the importance of improving the capacity of the Afghan government to fight
and overcome terrorism

India expressed hope that there would be no exit strategy for the international community from
Afghanistan.

India held talks with China, Japan and Iran to address the problem of funding the security
demands in Afghanistan which could cost around $4 billion a year after the withdrawal of US
forces.

India needs to build on the trilateral engagement with the US and Afghanistan to secure its assets
in Afghanistan.

II. Afghanistan Keen on Indias Help After the US Troop Withdrawal:

After the withdrawal of the US troops from Afghanistan, the country would witness a military
vacuum and hopes that India would emerge as a major player in filling the gap.

Afghanistan hopes that a prominent military dimension would raise the Indo-Afghan relations to
the next level.

By the end of 2014, the US would leave only 9,800 troops in Afghanistan, so the Afghan
government wants to boost its armed forces with military hardware from India including Russian
origin fighter aircrafts and tanks.

Afghanistan has requested India for military and training assistance as the withdrawal date for
US-led forces approaches.

India and Afghanistan must strengthen their strategic cooperation as Afghanistan does not have
the defence its needs to fight proxy terror groups

In December 2013, Afghanistan requested India for supplying tanks, helicopters and ground
vehicles, which India politely turned down.

India supported infrastructure projects and provided military training to Afghan troops and
police forces in India.

India has refrained from supplying military hardware to Afghanistan to avoid upsetting Pakistan
which may construe the military help as interference in Afghanistan

India and Afghanistan were working at a trilateral transitory agreement with Iran to trade goods
via the Iranian port of Chabahar, which is being refurbished by India, as an alternative to the land
route via Pakistan.

III. Conclusion:

1. India's Stakes in Afghanistan:

Afghanistan India's Gateway to the West

High Strategic and Economic Stakes

India has Regained Influence in Afghanistan

India's Growing Profile in Afghanistan

Engagement with Afghanistan Vital for the Fight Against Terrorism in the Region

India's Participation in Afghanistan's Reconstruction

Bright Prospects of Enhanced Trade and Investment between the Two Countries

A Close Relationship with Afghanistan Neutralises Pakistan's Clout in the Region

Need to Strengthen People-to-People Contacts in Afghanistan
182

2. Focus of Indias Afghan Policy:

Ensuring Afghanistan's territorial integrity and political stability

Preventing the Return of Taliban-inspired terrorism and religious extremism.

Afghanistan will emerge as a key land passage for the Caspian basin gas and oil which are
crucial for Indias growing energy requirements.

3. Securing Indias Interests in Afghanistan:

Indias development projects in Afghanistan remain the target of the Taliban.

Indias role in the long-term stability of Afghanistan is opposed by the Taliban as it would
strengthen the democratic Government in that country

India Needs to Consider Long-Term Scenarios of Its Political, Diplomatic and Military Options in
Afghanistan

India can work towards the Creation of a Regional Grouping for Long-Term Stability in
Afghanistan.

India also Needs to Widen Its Engagement with Different Sections in Afghanistan

183
vi.4. IRAQ

I. Background:

1. January 1991 - Operation Desert Storm: On January 16, 1991, Operation Desert Storm began after Iraq
Invaded Kuwait. The US launched massive air and missile attacks on Iraq.

2. February 1991- Ceasefire: Operation Desert Storm concluded after 38 days on February 22, 1991. Under the
ceasefire that ended the Gulf War, Iraq was to destroy its existing stock of WMD stockpiles and missiles with a
range greater than 150 km. The Resolution also created the UN Special Commission to carry out inspections and
verify compliance.

3. The UNSCOM: The UN Special Commission (UNSCOM) was created out of the 1991 Security Council
Resolution 687. It was set up to investigate Iraqs chemical and biological weapons programme as well as its
ballistic missile capability.

4. March 2003- War against Iraq:

Reasons for Going to War -The US-led coalition cited the following four main reasons for Iraqs war
of liberation:
Iraq possesses Weapons of Mass Destruction (WMD).
The WMD pose a grave threat because of Saddam Husseins record of reckless aggression
against neighbouring countries and his own people. The international community has waited for 12
years for Saddam to rid himself voluntarily of his WMD as he promised in 1991.
The UN inspectors were unable to eliminate that threat.
The threat could be best eliminated by war.

Launching Attack on Iraq: On March 19, 2003, the US-led coalition forces launched an attack on Iraq.

5. Operation Iraqi Freedom - Factors behind the Coalition Victory:

a. Quick Victory: The US-led coalition forces launched an attack on Iraq on March 19, 2003. Baghdad the capital
of Iraq fell to the coalition forces on April 10, 2003. In 21 days the coalition forces overtook Basra and Baghdad
and the rest of the cities followed without much resistance.

b. Air Power Played a Major Role: Air power played a major and decisive role in blunting Iraqs ability to resist
according to defence analysts. The Iraqi air force never entered the fray.

c. Psychological Tactics: In Baghdad, the US forces used the tactics of seeking the capitulation of Saddams
military forces through intense psychological operations, backed by demonstration of military capability and
coupled with commando raids.

d. Agile and Flexible Strategy: The US had put together its six military assets - the army, air force, navy,
marines, space-based assets and special forces - in a cohesive fashion.

6. Factors behind Iraqs Military Collapse:
Inequality of Forces - 12 Years of Sanctions Dented Iraqs Force Modernisation
Iraqi Air Force Completely Neutralised
Unity of Command Not Available to the Iraqi Forces
Limited Military Options Available to Iraqi Forces
Iraqi Troops Suffered Due to Heavy US Bombardments
Iraqi Forces Did Not Have the Will to Fight
Iraqi Army Suffered Due to Saddams Blunders

184

7. Superiority of Air Power:
Swiftest Campaign in Military History
Primacy Given to Air Power in Gulf War I for the First Time in Modern Warfare
Operational and Acquisition Strategy During Gulf War II
Operating in an Environment of Complete Air Superiority
Air and Space Technology have brought in Revolutionary Capabilities
Potency of Air Power
Round-the-Clock Air Surveillance

9. New Face of War:
Future Wars Networked by Information Technology
Availability of Maximum Battlefield Information
Speed
Accuracy of Firepower
Mobility
Well-Equipped Soldiers
Preparing the Force for a New Kind of War

10. Drawbacks of the New Face of War:

Information Overload: Analysts point out that in the networked war zone, commanders and troops can
be overwhelmed by information overload, especially if they are not trained properly.

If troops are given new untested technology then some systems may not work smoothly with
others.

Micromanagement could slow-down decision-making and lead to errors: Defence analysts point
out that when commanders have a real-time view of the battlefield, they could be tempted to
micro-manage the war. This could slow-down decision-making and lead to errors.

Sophisticated opponents could crash networks and cripple satellite communications and
guidance systems: Although the Iraqis could not jam or interfere with the coalition electronics systems,
a more sophisticated opponent could crash networks and cripple satellite communications and guidance
systems.

11. WMD Not Found in Iraq: On January 24, 2004, David Kay, the CIAs leader in Iraq looking for Weapons of
Mass Destruction (WMD) stepped down. Mr. Kay relinquished his position by emphasising that he did not believe
that there were any weapons stockpiles to be found in Iraq.

12. Formation of a Democratic Government in Iraq:
Elections for Interim National Assembly: On January 30, 2005, elections for a 275-member National
Assembly were held successfully. The United Iraqi Alliance (UIA) backed by the Shia spiritual leader,
Grand Ayatollah Ali Sistani gained 140 seats in the 275-member Parliament. The Kurdish coalition won
75 seats.

Interim National Assembly to Draft the Constitution: The National Assembly had to draw up a draft
Constitution for Iraq.

Referendum on Draft Constitution: On October 15, 2005 a referendum was held in Iraq on the
Constitution drafted by the National Assembly. This was the country's second national vote since
Saddam Hussein was toppled in April 2003. More than 61 per cent of the Iraqi voted in the referendum.
The draft Constitution could be rejected if two-thirds majority voted against it in any three provinces of
Iraq. Sunnis are a majority in four provinces.

Draft Constitution Approved: Iraq's Constitution was approved by almost four out of five voters;
however, the results released in the end of October 2005 underscored deep sectarian rifts the Charter
aimed to heal. Even though a large section of Iraq's Sunni community opposed the draft Constitution,
significant numbers from the community voted on the Charter.

Elections for Permanent National Assembly in Iraq: On December 15, 2005 elections to establish a
275-member permanent National Assembly were held in Iraq. The United Iraqi Alliance, a Shia-based
coalition, won 128 seats falling short of an absolute majority. The Kurdish alliance won 53 seats and the
two Sunni parties won a total of 55 seats.
185

New Prime Minister and President of Iraq: On April 22, 2006 Iraqi Parliament convened and elected
Kurdish leader Jalal Talabani President for a second time. Shia leader Nouri al Maliki was nominated as
the Prime Minister to head a national unity Government after months of wrangling.

Iraq's Parliament Approves a National Unity Government: On May 20, 2006 Iraqi Parliament
approved a new National Unity Government headed by Prime Minister Nouri al Maliki. The Government
has representatives from Iraq's majority Shia, minority Sunni and Kurdish communities.

13. Sectarian Violence:

A. Ethnic Groups in Iraq:

a. Shias - Majority:
The Largest Community: Analysts point out that the ouster of the Saddam Hussein regime has set off a
power struggle among Iraqs two main Muslim sects. The Shias and the Sunnis. The Shias form the
single largest community in Iraq and constitute 62 per cent of the population. Iraq was traditionally ruled
by the Sunnis but the Shias now see a historic opportunity to occupy the political centre stage.

SCIRI - The Supreme Council for the Islamic Revolution in Iraq: Founded in Iran in 1982. The armed
wing of the SCIRI fought with Iran against Saddam Hussein. Abdul Aziz Al Hakim, leader of SCIRI, seeks
an autonomous region in the mainly Shia dominated south Iraq.

Moqtada Al Sadr - Firebrand Preacher: Derives his power from his clerical lineage and a welfare
network modelled on Hezbollah of Lebanon. Sadr's Mehdi Army is blamed by Sunnis for many death
squad killings.

Dawa - Prime Minister's Party: Founded in 1957, it was the main underground opposition force to
Saddam Hussein. Leading members of Dawa include the Prime Minister Nouri Al Maliki.

b. Sunnis - Minority:

Ruled Iraq over the Years: The Sunnis, though in a minority (25 per cent), have ruled Iraq over the
years. The Current Iraqi resistance has been most fierce in the Sunni dominated areas.

Sunni Insurgents: A loose alliance of nationalist followers of Saddam Hussein's Baath party and
foreign-inspired Islamists who look to Al-Qaeda to attack the US. Reject the US occupation and Shia
domination.

Accordance Front: Secured a fifth of the seats in the Parliamentary elections. Important leaders include
the Vice President Tareq Al Hashemi.

Muslim Cleric Association: The main Sunni clerical body, justifies armed resistance against occupying
forces but not the killing of civilians.

c. Kurds - Minority:

Dominant in the Northern Part: The Kurds form about a fifth of Iraq's population and are dominant in
the northern part of Iraq. Analysts feel that the Kurds have realised that an independent Kurdistan is ruled
out, as all neighbouring countries - Iran, Syria and Turkey - oppose it.

KDP - Kurdistan Democratic Party: Based in Arbil, Masoud Barzani is the President.

PUK - Patriotic Union of Kurdistan: Based in Sulaimaniya, PUK leader Jalal Talabani is the current
President of Iraq.

B. Shia-Sunni Sectarian Divide: There is a growing sectarian divide between the majority Shias and the
minority Sunnis in Iraq. Both communities have well established militias. Sunnis who have been leading the
resistance against the coalition forces fear that the new Constitution of Iraq aims to deny them access to the
country's oil wealth. Most of the oil lies in areas dominated by the Shias and the Kurds who want carve out
autonomous zones in their areas.

C. Bombing of Shia Areas have Sharpened the Divide: Analysts point out that the major events that have
sharpened the divide between the Shias and Sunnis include the February 2006 bombing of the Al Askari shrine, a
historic Shia monument, which triggered a spate of reprisal attacks and the serial blast in Sadr city in November
2006.
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14. Regional Impact of Sectarian Violence:

Sunni Apprehensions Find Support in the Neighbouring Sunni Countries: Analysts point out that
Sunni apprehensions about their political and economic marginalisation in Iraq have found support in the
neighbouring Sunni countries like Saudi Arabia, Jordan and Egypt. Shia's domination in Iraq is seen as a
shadow of Iran's growing influence in the region.

Growing Sectarian Divide in Iraq Damaging Relations between Saudi Arabia and Iran: The growing
sectarian divide between Shias and Sunnis in Iraq is damaging relations between Saudi Arabia and Iran,
according to analysts. Observers feel that Saudi Arabia is worried about a new Iran imposing its political
agenda in the region.

Sectarian Divide in Iraq will have Ripple Effect in the Region: Analysts feel that the growing sectarian
divide in Iraq will have ripple effect in the region. It's impact could be felt in Bahrain which has dominant
Shia population, but is ruled by a Sunni ruler, as well as Saudi Arabia which has significant Shia
population in the oil-rich eastern provinces. Lebanon also looks vulnerable as the pro-Syria and Pro-Iran
Hezbollah, a Shia militia, is influential there.

Iraq Could become the Epicentre of a region-wide Shia-Sunni conflagration, according to the Iraq
Study Group.

Saudi Arabia: In a position to shape events in Iraq through cross-border tribal network and could play a
leading role in resurrecting a credible Sunni leadership in parts of Iraq.

Egypt: The region's most populous country with a dominant Sunni population. Part of Sunni bloc with
Saudi Arabia and Jordan.

Jordan: Most vocal about the perceived threat from Iran. Jordan feels that Iran is engaging with the
marginalised Shias of Saudi Arabia, Bahrain and Kuwait to challenge their Government's legitimacy.

Lebanon: Despite being the single largest community in the country, Shias feel alienated and
marginalised.

Iran:
Significant Role in Iraqs Domestic Scene: Analysts point out that Iran has emerged as a prominent
player in Iraqs domestic scene. Iran has been operating mainly through the Shias. It has links with the
SCIRI and the Badr Corps. The Grand Ayatollah, Sistani, is of Iranian descent. Iran has ties with both
Shia militias and the key members of Iraq's political and religious establishment.

Re-establishing Links with Iraq: Iran is re-establishing its links with Iraq by constructing a cross-border
railway line, an oil pipeline and resuming air services.

Cross-Border Trade Flourishing: Cross-border trade between Iran and Iraq is flourishing and could
reach the $1billion mark soon. Iraqi businessmen prefer imports from Iran as the southern land route is
safer compared to the western highways that link Iraq to Jordan and Syria.

Iranian Investments in Northern Iraq: Nearly 100 Iranian companies have pledged to invest around
$400 million in northern Iraq dominated by the Kurds.

Iran's Initiative to Consolidate Its Influence in Iraq: Analysts point out that Iran is apprehensive that a
Sunni resurgence could reduce Shia influence as well as its own clout in Iraq. Hence, Iran has taken up
the initiative to consolidate its influence in Iraq. The initiative includes efforts to integrate the
transportation links between the two countries and Iran's participation in key infrastructure projects in
Iraq.

US Accuses Iran of Stoking Iraq Militancy: The US officials said that they have hard evidence that Iran
was supplying Iraqi militants with arms and money.

Iran - US Fabricating Evidence to Further Its Aggressive Goals: Iran responded to the US accusation
by saying that the US was fabricating evidence to further its aggressive goal in Iraq.

15. Execution of Saddam Hussein: On November 5, 2006, the former Iraqi President Saddam Hussein was
sentenced to death by an Iraqi court following a controversial yearlong trial over the killings of 148 Shias in the
town of Dujail in 1982. Mr. Hussein was hanged on December 30, 2006.
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16. Motivations behind the US War on Iraq:

A. Bush Doctrine: Analysts point out that under this doctrine, the US was willing to use its military and economic
supremacy to protect its interests and assert its values with or without direct provocation. The US was also willing
to act with or without the backing of the global alliances it helped create after World War II.

B. US Justifies War on Iraq: The former US Secretary of State, Colin Powell, emphasised that Iraq did have
WMD and programmes of WMD and used the WMD against Iran and its own people. Iraq was dangerous and
therefore had to be disarmed by force.

C. Aim of the US Presence in Iraq: The then US President, George W. Bush, emphasised that the US was in
Iraq to achieve a result: a country that is democratic, representative of all its people, at peace with its
neighbours and able to defend itself. And when that result is achieved the US forces serving in Iraq will return
to the US.

D. Politico-Strategic Dimensions:

a. Influence in Iraq will Help in Acting Against Iran and Syria:

The US Influence in Iraq will enable it act against Iran, Syria and terrorist groups operating in West Asia.
The US then President, George W. Bush, emphasised that to promote peace in the broader Middle
East (West Asia), the US must confront regimes that continue to harbour terrorists and pursue
Weapons of Mass Destruction (WMD).

The then US President stressed that Iran remains the worlds primary state of sponsor of terror,
pursuing nuclear weapons while depriving its people of the freedom they seek and deserve. Mr.
Bush conveyed to the people of Iran that the US stands for their liberty.

Syria still allows its territory and parts of Lebanon to be used by terrorists who seek to destroy
every chance of peace in the region, according to Mr. Bush. The US expects the Syrian Government to
end all support for terror and open the door to freedom.

b. Stabilising West Asia: Analysts point out that the politico-strategic dimensions of West Asia are linked to the
US plans and policies to stabilise West Asia and impose some kind of solution of the Palestinian issue while
safeguarding the interests of Israel.

G. Geo-Political Control of Energy Resources:
Analysts also feel that the US may have had unarticulated policy objectives to have geopolitical control
of oil and natural gas resources, stretching from Central Asia to Saudi Arabia.
Iraq has proven oil reserves of more than 100 billion barrels and is second only to Saudi Arabias 265
billion barrel in the league of oil-rich states.
However, energy experts feel that oil is a consequence of war rather than a cause. But it is a very major
consequence in that there will potentially be a dramatic shift in the balance of power in the oil industry.

17. Implications of Changes in Iraq for India:

A. Indias Stand on Iraq War:

Middle Path to Defend Indias Long-Term Interests in Iraq and the Gulf: Analysts point out that India
followed a middle path to deal with the Iraq crisis. Despite considerable political pressure from the
Opposition, the Government held on to the cautious middle path.

Lok Sabha Resolution on Iraq War: On April 8, 2003, the Lok Sabha passed a resolution unanimously,
calling for an immediate end to the war against Iraq and demanded a quick withdrawal of the coalition
forces.

B. Indias Role in Post-War Iraq:

Flexible Foreign Policy: Analysts point out that the Government of Indias response to post-election Iraq
shows a new flexibility and vibrancy in the foreign policy. In a changing geo-political situation a flexible
foreign policy is required to adapt to the situation. Indias policy on Iraq can be used as a bench mark for
future foreign policy measures.
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Traditional Strong Ties with Iraq: Analysts point out that India has always had strong ties with Iraq and
has been one of the largest importers of Iraqi oil. Therefore, it is in Indias interest that oil production in
Iraq is restored quickly and that Indian firms play a significant role in the process.

Definitive Role in Shaping the Evolution of New Iraq: Analysts feel that India has an opportunity to
play a definitive role in shaping the evolution of a new Iraq. The Government of India has indicated that it
is ready to work with the UN and US on Iraq.

Indias Long-term Interests in Iraq: India has a big stake in the political stability of Iraq and the Persian
Gulf. Developments in that region comprehensively affect Indias economy and national security.

Bold Moves by India will help in Defending its Interests: Analysts feel that India should move boldly
to play a key role in post-war Iraq. This will help India to be in a better position to shape the international
debate on the future of Iraq and to defend its interests.

India Should have a Good Working Relationship with the New Political Dispensation in Iraq:
Analysts point out that it is important for India to have a good working relationship with the new political
dispensation in Iraq. This is significant from political and economic terms of countering militancy and
terrorism and having access to long-term energy supplies.

C. Military Lessons for India from the Iraq War:
Need for More and Robust Special Forces: Defence analysts point out that for the Indian Army, the Iraq
war has an important lesson - the need for more and robust Special Forces. It is argued that the ongoing
studies of Operation Parakaram and Operation Iraqi Freedom would lead to the urgency of establishing and
employing clandestine forces to raise the cost of Pakistan waging its proxy war.
New Potential of Air Power: Defence analysts argue that India needs to take serious note of the new
potential of air power as demonstrated in the Iraq war. Counter-air operations against enemy air-power to
enable limited or total air superiority make it essential for India to modernise its Air Force urgently.
High-Tech War: The new face of war - digital war, as demonstrated by the coalition forces in Iraq has many
important lessons for India. Defence analysts argue that India needs to urgently modernise its Armed Forces
and weapons and increase its defence spending.

18. The US and Iraq Sign Accord on Troop Pull Out: On November 17, 2009, Iraqs Foreign Minister
Hoshiyar Zebari and the US Ambassador Ryan Crocker signed the long-awaited accord requiring the US to
withdraw its troops from Iraq within three years.

19. Key Aspects of the Status of Forces Agreement (SOFA):
The main focus of the new Status of Forces Agreement (SOFA) between the US and Iraq is the
commitment by the US to withdraw its forces which are around 1,50,000 by December 31, 2011.

SOFA calls for the withdrawal of US forces from all Iraqi cities, towns and villages by the middle
of 2009.

The agreement also calls for the creation of mechanisms and arrangements to reduce the US
force levels within the specified time period.

The US also gave an undertaking to Iraq that its territory would not used to launch attacks
against any neighbouring country.

20. Iraqi Parliament Approved SOFA: On November 27, 2008, the Iraqi Parliament approved SOFA, after
11 months of negotiations with the US and a flurry of domestic political horse-trading leading to the vote. Iraqi
Prime Minister Nouri al-Maliki succeeded in bringing together a majority to support the historic agreement,
including the Sunnis and Kurds.

21. The US and Iraq Signed a Long-Term Strategic Framework: The US and Iraq also signed a
long-term strategic framework. The US Ambassador said that the strategic framework would define relations
between the two countries for years in economy, culture, science, technology, health and trade.

22. UK Troops to Withdraw from Iraq in May 2009: After six years of presence in Iraq, the British troops would
start withdrawing from their base in Basra in May 2009, with the last of the forces expected to return home by July
2009.
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23. End of US Military Operations in Iraq (December 18, 2011):

On December 18, 2011, the US concluded its military withdrawal from Iraq after nearly nine years.

Around 170,000 US troops were in Iraq operating from more than 500 bases around Iraq during
the peak of the operation.

A few hundred US military personnel and civilians would remain working with the US embassy to
assist weapon sales and training.

The Iraq war killed between 100,000 and a million Iraqis.

Around 4,487 US troops also died in the war and 32,226 were wounded, according to Pentagon
figures.

The cost of the Iraq war for the US was $1 trillion.

The withdrawal of the US troops led to a wave of celebrations inside Iraq especially among the
residents of Fallujah which became the epicentre of the resistance to the US troops.

The Iraq war led to sectarian violence between the Shia and Sunni communities.

The Iraq war also led to the increased presence of al-Qaeda in Iraq, with the Jordanian born Abu
Musab Al Zarqawi masterminding many sectarian killings.

The dream of an independent and sovereign Iraq was now a reality, according to the US Defence
Secretary Leon Panetta.

The US President Barack Obama praised the US troops for their role in Iraq.

The withdrawal of the US troops from Iraq could increase Irans influence in Iraq, according to
analysts.

With the US free from its mission in Iraq, it would be in a better position to mount pressure on
Iran to dismantle its nuclear programme, according to analysts.

24. Political Crisis in Iraq:
General elections were held in Iraq in March 2010 and a coalition government was formed 289
days after the election.

In December 2011, the Iraqiya coalition with 82 seats declared that it was suspending its
participation in the 325-member Parliament. The Iraqiya coalition has the support of Sunni groups.

The Iraqiya coalition accused the Prime Minister Nouri Al-Maliki of monopolising all decision
making.

The Prime Minister warned that if the Iraqiya coalition did not participate in the Parliament, he
would appoint new Ministers.

The political crisis has exposed Iraqs fragile system of governance based on religious, sectarian
and ethnic fault lines.

25. Surge in Sectarian Violence:

The political crisis in Iraq led to a surge in sectarian violence with a series of bombings that killed
many people and injured many others.

The sectarian tensions were already on the edge following the withdrawal of US forces.

In February 2012 a series of bombings and shooting spread over Iraq killed 50 people, targeting
security forces. The attacks were seen as the handiwork of al-Qaeda militants.

The series of large-scale attacks have been launched by insurgents every few weeks since the
US troops left Iraq in December 2011.
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II. Current Situation in Iraq:

1. ISIS militants Seize many Cities in Northern Iraq (June 2014):

On June 10, 2014, the jihadist Sunni militant group called the Islamic State of Iraq
and Syria (ISIS) or Islamic State of Iraq and Levant (al-Sham, Syria) (ISIL), seized
Iraqs second largest city of Mosul.

Earlier in January 2014, the ISIS had taken control of Fallujah and Ramadi.

On June 11, 2014, the ISIS militants seized Tikrit, the hometown of former
dictator Saddam Hussein.

On June 11, 2014, Baiji the home of Iraqs largest oil refinery fell to ISIS.

The ISIS and its allies, included loyalists of Saddam Hussein, captured a large
swathe of northern and north-central Iraq within days resulting in more than half
a million people fleeing their homes.

The ISIS captured mainly Sunni Arab towns where resentment against the
Shia-led government is high.

On June 22, 2014, the ISIS militants seized Iraqi border towns near Syria. The
seizure of Al-Qaim left only one of the three official border crossing with Syria in federal
governments control. The third crossing is controlled by Kurdish forces.

The ISIS was targeting the Iraqi capital Baghdads periphery by firing rockets on
the citys southern fringes in late June 2014.

The ISIS offensive led to the death of more than 1,000 people, according to the UN.

2. ISIS or ISIL:

The Islamic State of Iraq and Syria (ISIS) or the Islamic State of Iraq and Levant
(refers to Syria) ISIL is an armed militant group active in Iraq and Syria seeking to
establish an Islamic caliphate.

Origin the group was formed in early years of Iraq war under the name of Al-Qaeda in
Iraq (AQI).

In 2006, the AQI leader Abu Musab al-Zarqawi was killed by the US forces.

In 2011 following the departure of US forces, the AQI began its bomb attacks and
the US placed a $10 million bounty on their leader Abu Bakr al-Baghdadi.

In 2012, the AQI launched over 500 bomb attacks and released more than 500
inmates of the Abu Ghraib prison.

In 2013, Abu Bakr al-Baghdadi announced merger with Syrian jihadist rebel
group, al-Nusra Front to create the ISIS. The merger was rejected al-Nusra.

In late 2013 and early 2014 the ISIS took control of Syrian border provinces of
Raqqa and Deir al Zawr, beheading rival jihadists.

Since June 10, 2014, ISIS captured a series of towns in northern and central Iraq.

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On June 30, 2014, the ISIS declared an Islamic caliphate and asked Muslims
worldwide to pledge their allegiance to the chief Abu Bakr al-Baghdadi as the
caliph and leader of Muslims everywhere.

The emergence of ISIS with thousands of Arab and foreign fighters under its
wing is seen as a challenge to the al-Qaeda for the control of the global jihadist
movement, according to analysts.

The ISIS has live-tweeted amputations and carried out public crucifixions of its
perceived enemies.

The ISIS is believed to be the richest terrorist group with funds of around $12
million per month on account of extortion, ransom payments and corruption in
Mosul.

The main sources of income for the ISIS are believed to be from kidnapping and
other criminal activity as well as from private wealthy individuals in the Gulf.

ISIL also controlled oil fields in eastern Syria and reportedly even sold back
some to the Syrian regime.

The military equipment and vehicles abandoned by the Iraqi soldiers were used
by the ISIS.

Analysts point out that the ability of the ISIS to generate funds directly without
depending on sponsors makes it difficult for the authorities to cut the flow of
funds to them.

3. ISIS Leader Abu Bakr al-Baghdadi:

The ISIS chief was born in 1971 in Samara in Iraq and named Awwad Ibrahim
al-Badri al Samarri.

In 2003, he joined the rebel fighters during the US invasion of Iraq.

In 2006, he was captured by US forces and kept in the US-run prison in Iraq Camp
Bucca. He is believed to have joined forces with the al-Qaeda here.

On release from prison he joined ISIS and became its chief in 2010 with the name
Abu Bakr al-Baghdadi.

In late June the ISIS declared Islamic caliphate and released an audio recording
online declaring its chief Abu Bakr al-Baghdadi the caliph and leader of Muslims
everywhere.

In early July, a video was released by the ISIS showing Abu Bakr al-Baghdadi at
the Great Mosque in the northern city of Mosul. He urged his followers to jihad, and
emphasised the implementation of a strict interpretation of Islamic law.

4. The Offensive by ISIS Allowed the Iraqi Kurds to Take Control of
Disputed Territory:

The ISIS launched a major offensive on four provinces in northern Iraq
Nineveh, Salaheddin, Kirkuk and northern Diyala.

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All four provinces include territory claimed by both the federal government of
Iraq and the Kurdistan region, which has its own borders, security forces and
government but is dependent on the Iraqi government for financial assistance.

After the Iraqi forces abandoned their posts, the Kurdish forces known as
peshmerga, took control to defend them from the ISIS militants.

The Kurdish forces took control for the first time of the oil hub of Kirkuk the city
is the main part of the territory the Kurds want to incorporate in their region.

The ISIS offensive in northern Iraq has thus allowed the Iraqi Kurds to take
control of disputed territory which they want to add to their autonomous
northern region, a move long opposed by the government of Iraq.

5. Iraqi Governments Response:

On June 12, 2014, Iraqi forces launched air strikes on ISIS militants occupying
the former dictator Saddam Husseins palace compound in the city of Tikrit.

On June 13, 2014, the Shia Grand Ayatollah Ali al-Sistani urged the people to
defend the country against the offensive by the ISIS.

The call by the Grand Ayatollah led to thousands of volunteers joining the Iraqi
army.

The Iraqi forces retook areas north of the capital Baghdad and along with the
volunteers prepared to defend the capital.

The Iraqi security forces who had performed poorly in the initial onslaught by the
ISIS militants started recovering and regaining ground by repel the militants and
recapturing towns north of Baghdad.

Iraq officially asked the US to help under the security agreement between the two
countries, and to conduct air strikes against terrorist groups, according to the Iraqi
Foreign Minister Hoshyar Zebari.

Iraqi Prime Minister Nouri al-Maliki vowed to face terrorism and bring down the
conspiracy.

On June 19, 2014, the Iraqi security forces gained full control of the Baiji oil
refinery in Salaheddin province.

On June 24, 2014, Iraqi forces recaptured from the ISIS a border crossing with
Syria. The capture was marred by air strikes that killed civilians.

Iraqi Prime Minister Nouri al-Maliki said that political measures were needed
along with military offensive to repel the ISIS. He stressed that apart from the
military operations against the terrorists, there was need to hold a meeting of the
Parliament to elect a head of Parliament, a President and forming the government.

On June 28, the Iraqi forces launched a counter-offensive clearing the road north
of Samarra, and surrounding Tikrit from south, east and west. The Forces also
pushed west of Fallujah.

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The Iraqi military has overwhelming superiority over the ISIS. According to the
International Institute of Strategic Studies authoritative Military Balance, Iraq had
2,71,400 active military personnel in 2013 and the Iraqi military was well funded
receiving a record $17.1 billion in 2013.

On June 29, 2014, the Iraqi warplanes bombed Tikrit as Russia delivered the first
batch of Su-25 warplanes designed for ground attack to aid the Iraqi government
in the crisis.

On July 04, 2014, the Iraqi forces retook Saddam Husseins home village of Awia
after an hour-long battle with the ISIS militants. The town is 8 km from Tikrit.

On July 1, 2014, the first sitting of the Iraqi Parliament ended in chaos with
Parliamentarians threatening each other and walking out despite calls by the
international community to form a government to face the ISIS onslaught.

The members of the Parliament were elected in April 2014 and Prime Minister
Nouri al-Maliki is bidding for a third-term.

The reconvening of the Parliament was postponed.

On July 24, 2014, Kurdish politician Fuad Masum was elected as the new
President of Iraq by the Parliament by an overwhelming majority of 211 votes to
17.

Under the unofficial power-sharing deal, Iraqs Kurds get the post of President.

The move could pave the way for a deal on the post of the Prime Minister and the
formation of a new Government which needs to be inclusive for the country to
survive, as emphasised by the UN Secretary-General Ban Ki-moon.

6. The US Stand:

On June 13, 2014, the US President Barack Obama ruled out sending US troops
back into combat in Iraq, but asked his national security team to prepare a range
of other options that could help support Iraqi forces.

The US would not involve itself in military action in the absence of a political plan
by the Iraqis that gives it some assurance that they were prepared to work
together, according to Mr. Obama.

The US spent billions of dollars in training and providing equipment for the Iraqi
forces and around 4,500 US soldiers died between the US-led invasion in 2003
and the withdrawal in 2011.

On June 19, 2014, the US President Barack Obama announced that he would be
sending 300 military advisers to Iraq to take targeted, precise, military actions in
future.

The military advisers would be sent to Iraq to examine how to train and equip
Iraqi forces, according to Mr. Obama.

The US increased its intelligence, surveillance and reconnaissance operations to
better understand the situation in Iraq.

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The key priorities for the US in Iraq were to create joint operation centres in
Baghdad and northern Iraq, which would share intelligence and coordinate
planning to confront the terrorist threat of ISIS, according to the US President.

The US hoped that success would be achieved through diplomatic efforts with
Iraqi leadership and countries in the region, according to Mr. Obama.

The US Secretary of State John Kerry departed to the Middle East and Europe to
consult the US allies and partners.

The US President said that Iraqs neighbours should respect Iraqs territorial
integrity and all of them have a vital interest in ensuring that Iraq does not
descend into civil war or become a safe haven for terrorists.

The US President hinted at a joint Iraq-Syria counterterror platform by pointing out that
the key to both Syria and Iraq was going to be a combination of what happens
inside the country, working with moderate Syrian opposition, working with an
Iraqi government that is inclusive, and the US laying down a more effective
counterterrorism platform that gets all the countries in the region pulling in the
same direction.

To tackle terrorists organisations like the ISIS, the focus had to remain on
building effective partnerships, according to Mr. Obama.

During his visit to the Middle East in late June 2014, the US Secretary of State John
Kerry urged the Iraqi leaders to rise above sectarian motivations and form a
government that was united in its determination to meet the needs and speak to
the demands of all their people.

The US had shed blood and worked hard for years to provide Iraqis with the
opportunity to have their own governance but the ISIL crossed the line from
Syria, began plotting internally, and they have attacked communities. This was
about ISILs terrorist designs on the state of Iraq, according to Mr. Kerry.

The US military was flying a few armed drones over Baghdad to defend American
troops and diplomats in the Iraqi capital if necessary, according to a US official.

The armed robotic planes were in addition to other manned and unmanned US
aircraft that were conducting surveillance to gain a better understanding of
events on the ground. The surveillance included armed F-18 fighter jets, flying from
the George H.W. Bush aircraft carrier in the Gulf.

7. Irans Stand:

On June 14, 2014, Iran offered to work with the US if took the lead in helping push
back Sunni ISIS militants who seized a number of cities and towns in northern
Iraq.

Iranian President Hassan Rouhani said that Iran would do everything to protect
Shia shrines in Iraqi cities against the ISIS militant assault.

Iran flew surveillance drones over Iraq and was sending military equipment to
help the government of Iraq fight the Sunni insurgents in late June 2014,
according to western media reports.
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On July 16, 2014, the US Secretary of State said that the US was open to
discussions with Iran if that could help end the violence.

8. Saudi Arabias Stand:

On July 18, 2014, Saudi Arabia warned of the risks of a civil war in Iraq with
unpredictable consequences for the region.

Saudi Arabia also insisted on the formation of an inclusive government in Iraq.

9. Syria:

On June 24, 2014, Syrian warplanes bombed positions of the ISIS militants near
the border crossing in the town of Qaim.

The airstrikes by Syria came after the ISIS insurgents took control of town of
Al-Qaim on the Iraqi side of the border, providing them a strategic route to Syria.

10. Indias Stand:

India backed the government of Iraq in maintaining the territorial integrity of Iraq
and expressed deep concern over the takeover of Mosul and Tikrit by the
terrorist outfits.

About 46 Indian nurses were stranded in Tikrit in Iraq.

Around 40 Indian construction workers in the Iraqi city of Mosul were kidnapped
by the ISIS militants when they were being evacuated from the area.

The government of India began planning for the possible evacuation of 10,000 or
more Indians from Iraq.

The Indian Navy put two warships on standby for possible evacuation of Indians
stranded in Iraq. INS Mysore, a powerful Delhi class destroyer was deployed in the
Persian Gulf and INS Tarkash, involved in anti-piracy operations, was in the Gulf of
Aden.

The Ministry of External Affairs (MEA) coordinated with the Gulf countries
Kuwait, Saudi Arabia, Bahrain, Qatar, Oman and UAE.

On July 04, 2014, the efforts of the Indian government to rescue its nationals
from Iraq met with success with the release of 46 Indian nurses from captivity in
Tikrit. The nurses were flown back home in an Air India flight.

Analysts point out that the safe return of the Indian nurses from Iraq was the result
of Indias diplomatic outreach by multiple agencies of the government.

The External Affairs Minister Sushma Swaraj spoke to her counterparts in West
Asia, including the Gulf countries and adequate ground work was also done by
the National Security Adviser Ajit Doval and Foreign Secretary Sujatha Singh.

The Indian government is also making efforts for the release of 40 Indian
construction workers kidnapped by the ISIS.

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11. India Needs to Build Strategic Intervention Capabilities to Secure Its
Citizens in Foreign Nations:

Analysts point out that the kidnapping of around 40 Indian construction workers in
Mosul by the ISIS is a reminder that India needs to urgently build strategic
intervention capabilities to secure its citizens in foreign nations.

Indias strategy has to be innovative without putting to risk the lives of its
citizens.

Analysts suggest that India needs to build up special operations squads to
intervene in vulnerable areas worldwide where the Indian immigrants are in
larger numbers.

Elite commando units need to be trained to specialise in those areas and kept as
standby for rapid deployment during contingencies, according to analysts.

India has enormous goodwill in the region and the people-to-people diplomacy
has given the country valuable influence which has yielded success as seen by
the successful evacuation of the Indian nurses from Iraq, according to analysts.

India demonstrated its capacity to deploy warships and aircraft to evacuate
Indians and other nationals from South Asia during the Asian tsunami in 2004
and the evacuations in Beirut in the 2006 war between Israel and Hezbollah.

Analysts suggest that India needs to refocus its policy on pre-positioning and
deployment overseas of civil and military assets for mass evacuations whenever
required.

12. Implications of the Iraq Crisis on India:

India was monitoring the overall situation in Iraq and there was no cause for
alarm, according to officials.

Indias Finance Secretary said that there were reasons to hope that the Iraq crisis
would blow over.

Iraq is Indias second largest oil supplier, meeting 20 per cent of its demand.

It was pointed out that the fighting has not reached the southern energy hub, which
produced two-thirds of Iraqs oil is a Shia majority area with close ties to Iran.

India is among the targets of ISIS with the groups chief Abu Bakr al-Baghdadi
vowing to wage war against several countries including India.

Analysts point out that Indias primary interest in Iraq is in its oil which is in areas
controlled by the Shias and Kurds. So the current crisis does not affect Indias
interest but a civil war in Iraq would harm Indias interests.

Analysts point out that military intervention by the US or Iran would be harmful to
the long-term interests in Iraq as it would divide the people of Iraq permanently
on sectarian lines.

197

Analysts suggest that India can play a key role in bringing about peace in Iraq by
urging both the US and Iran not to intervene military and allow the government of
Iraq to defeat the ISIS on its own.

India also needs to influence Saudi Arabia not to increase their support for the
tribes in Iraq to a point that the government of Iraq and Iran perceive it as a
threat, according to analysts.

India should also try to influence the Iraqi Prime Minister to rise above sectarian
differences and include the Sunni leadership in an inclusive government as fellow
citizens.

The Kurdish Democratic Party hopes to deepen political and economic ties with
India and looks at India as an important partner.

13. Global Economic Implications of the Iraq Crisis:

In mid-June global crude oil prices rose to a nine-month high over concerns that
the ISIS attacks could disrupt oil exports from Iraq, the second-largest OPEC
(Organisation of Petroleum Exporting Countries) oil producer.

The major concern driving the crude oil prices was the possibility of the ISIS
taking control of the south later this year when the demand of oil peaks in
Europe and the US.

Currently, Iraqs oil fields located in the south are safe and the northern oil field
are safe under the Kurds.

The International Energy Agency (IEA) said that OPEC would need to produce 1
million barrels per day (bpd) more oil on average in the second half of 2014 to
balance the global market, which would see a sharp seasonal increase in
demand.

The Iraqi crisis also caused concerns among the international airlines as the
rising crude oil prices could hurt the airlines in the second quarter in terms of
travel demand. The airlines cannot pass on the crude oil hike to the travellers as it
would further hurt the demand.

Analysts feel that the crude oil prices could ease with international intervention in
the Iraq crisis.

The Iraq crisis also adversely impacted the global markets with the stocks
dropping to a four months low and the Indian rupee depreciating against the US
dollar.

14. Implications of the Iraq Crisis for the Region and the World:

Division of Iraq on Sectarian Lines: The seizure of large number of cities and towns
by the ISIS militants in northern and central Iraq has led to concerns of Iraq being
divided on sectarian lines A Kurdish north, a Sunni centre, and a Shia south. Analysts
point out that fragmentation of power was being witnessed in Iraq. The idea of dividing
Iraq on sectarian lines was first suggested during the countrys formation at the end of
World War I.

198

Conflicts in Iraq and Syria could Continue but National Borders are Unlikely to be
Changed: Analysts point out that the conflicts in Syria and Iraq may continue for some
time but they are unlikely to result in any change of national borders. The Iraqi Kurds
would press for increasing autonomy with more financial freedom from oil exports, but
are unlikely to aggravate the already tense scenario in Iraq by declaring independence.

A Unity Government in Iraq Based on Broad Consensus is the Way Forward from
the Current Crisis: Analysts point out that the current sectarian approach in Iraq needs
to be replaced by a Unity Government that is inclusive of all sections of the society. A
pointer in this direction was provided by the appeal of the Grand Ayatollah al-Sistani for
all Iraqis to shed sectarian and ethnic identities and come together to save the country
from the ISIS.

The US and Iran are Unlikely to Intervene Militarily in Iraq unless Baghdad is in
threat of being Overrun by ISIS: Analysts point out that the US has already ruled out
sending back troops to Iraq and has only send military advisers. The US and Iran are
unlikely to intervene militarily in Iraq unless there is a threat of the capital Baghdad
being overrun by the ISIS or if the Shia shrines are threatened.

Saudi Arabia and Iran Need to Give Up their Sectarian Approach to Regional
Affairs and Address the Regional Security through Dialogue: Analysts point out
that Saudi Arabia and other Gulf countries are in a dilemma as the ISIS threatens their
security but are also concerned about the Shia upsurge in Iraq and the growing US-Iran
engagement as well as the likelihood of Irans intervention in Iraq. However, this
problem can be resolved if Saudi Arabia and Iran give up their sectarian approach to
regional affairs and try to address the issues of regional security through dialogue.

India and other Asian Countries who have a Stake in the Regional Stability Need
to Consult and Promote Dialogue and CBMs in the Gulf Region: Analysts opine
that the crisis in Iraq has given an opportunity for India and other Asian countries like
China, Japan and South Korea which have a stake in the regional stability to consult
each other and promote dialogue and Confidence Building Measures (CBMs) in the
Gulf region. The Asian countries should resume the responsibility of their own security
as the US has withdrawn from military interventions.

SUMMARY
I. Current Situation in Iraq:

1. ISIS militants Seize many Cities in Northern Iraq (June 2014):

On June 10, 2014, the jihadist Sunni militant group called the Islamic State of Iraq and Syria (ISIS)
or Islamic State of Iraq and Levant (al-Sham, Syria) (ISIL), seized Iraqs second largest city of
Mosul.

The ISIS and its allies, included loyalists of Saddam Hussein, captured a large swathe of northern
and north-central Iraq within days resulting in more than half a million people fleeing their
homes.

The ISIS captured mainly Sunni Arab towns where resentment against the Shia-led government is
high.

The ISIS offensive led to the death of more than 1,000 people, according to the UN.

199

2. ISIS or ISIL:

The Islamic State of Iraq and Syria (ISIS) or the Islamic State of Iraq and Levant (refers to Syria)
ISIL is an armed militant group active in Iraq and Syria seeking to establish an Islamic caliphate.

Origin the group was formed in early years of Iraq war under the name of Al-Qaeda in Iraq (AQI).

On June 30, 2014, the ISIS declared an Islamic caliphate and asked Muslims worldwide to pledge
their allegiance to the chief Abu Bakr al-Baghdadi as the caliph and leader of Muslims
everywhere.

The emergence of ISIS with thousands of Arab and foreign fighters under its wing is seen as a
challenge to the al-Qaeda for the control of the global jihadist movement, according to analysts.

The ISIS has live-tweeted amputations and carried out public crucifixions of its perceived
enemies.

The ISIS is believed to be the richest terrorist group with funds of around $12 million per month
on account of extortion, ransom payments and corruption in Mosul.

The main sources of income for the ISIS are believed to be from kidnapping and other criminal
activity as well as from private wealthy individuals in the Gulf.

The military equipment and vehicles abandoned by the Iraqi soldiers were used by the ISIS.

Ability of the ISIS to generate funds directly without depending on sponsors makes it difficult for
the authorities to cut the flow of funds to them.

3. ISIS Leader Abu Bakr al-Baghdadi:

The ISIS chief was born in 1971 in Samara in Iraq and named Awwad Ibrahim al-Badri al Samarri.

In 2003, he joined the rebel fighters during the US invasion of Iraq.

In 2006, he was captured by US forces and kept in the US-run prison in Iraq Camp Bucca. He is
believed to have joined forces with the al-Qaeda here.

On release from prison he joined ISIS and became its chief in 2010 with the name Abu Bakr
al-Baghdadi.

In late June the ISIS declared Islamic caliphate and released an audio recording online declaring
its chief Abu Bakr al-Baghdadi the caliph and leader of Muslims everywhere.

4. The Offensive by ISIS Allowed the Iraqi Kurds to Take Control of Disputed Territory:

The ISIS offensive in northern Iraq has thus allowed the Iraqi Kurds to take control of disputed
territory which they want to add to their autonomous northern region, a move long opposed by
the government of Iraq.

5. Iraqi Governments Response:

On June 12, 2014, Iraqi forces launched air strikes on ISIS militants occupying the former dictator
Saddam Husseins palace compound in the city of Tikrit.

On June 13, 2014, the Shia Grand Ayatollah Ali al-Sistani urged the people to defend the country
against the offensive by the ISIS.

The call by the Grand Ayatollah led to thousands of volunteers joining the Iraqi army.

The Iraqi forces retook areas north of the capital Baghdad and along with the volunteers
prepared to defend the capital.

200

The Iraqi security forces who had performed poorly in the initial onslaught by the ISIS militants
started recovering and regaining ground by repel the militants and recapturing towns north of
Baghdad.

Iraq officially asked the US to help under the security agreement between the two countries, and
to conduct air strikes against terrorist groups

Iraqi Prime Minister Nouri al-Maliki vowed to face terrorism and bring down the conspiracy.

On June 19, 2014, the Iraqi security forces gained full control of the Baiji oil refinery in
Salaheddin province.

On June 24, 2014, Iraqi forces recaptured from the ISIS a border crossing with Syria. The capture
was marred by air strikes that killed civilians.

Iraqi Prime Minister Nouri al-Maliki said that political measures were needed along with military
offensive to repel the ISIS

The Iraqi military has overwhelming superiority over the ISIS

On June 29, 2014, the Iraqi warplanes bombed Tikrit as Russia delivered the first batch of Su-25
warplanes designed for ground attack to aid the Iraqi government in the crisis.

On July 04, 2014, the Iraqi forces retook Saddam Husseins home village of Awia after an
hour-long battle with the ISIS militants.

On July 1, 2014, the first sitting of the Iraqi Parliament ended in chaos with Parliamentarians
threatening each other and walking out despite calls by the international community to form a
government to face the ISIS onslaught.

The members of the Parliament were elected in April 2014 and Prime Minister Nouri al-Maliki is
bidding for a third-term.

The reconvening of the Parliament was postponed.

On July 24, 2014, Kurdish politician Fuad Masum was elected as the new President of Iraq by the
Parliament by an overwhelming majority of 211 votes to 17.

Under the unofficial power-sharing deal, Iraqs Kurds get the post of President.

The move could pave the way for a deal on the post of the Prime Minister and the formation of a
new Government which needs to be inclusive for the country to survive

6. The US Stand:

On June 13, 2014, the US President Barack Obama ruled out sending US troops back into combat
in Iraq, but asked his national security team to prepare a range of other options that could help
support Iraqi forces.

The US would not involve itself in military action in the absence of a political plan by the Iraqis
that gives it some assurance that they were prepared to work together

The US spent billions of dollars in training and providing equipment for the Iraqi forces and
around 4,500 US soldiers died between the US-led invasion in 2003 and the withdrawal in 2011.

300 military advisers to Iraq to take targeted, precise, military actions in future.

The military advisers would be sent to Iraq to examine how to train and equip Iraqi forces

The US increased its intelligence, surveillance and reconnaissance operations to better
understand the situation in Iraq.

201

The key priorities for the US in Iraq were to create joint operation centres in Baghdad and
northern Iraq, which would share intelligence and coordinate planning to confront the terrorist
threat of ISIS, according to the US President.

The US hoped that success would be achieved through diplomatic efforts with Iraqi leadership
and countries in the region

The US Secretary of State John Kerry departed to the Middle East and Europe to consult the US
allies and partners.

Iraqs neighbours should respect Iraqs territorial integrity and all of them have a vital interest in
ensuring that Iraq does not descend into civil war or become a safe haven for terrorists.

Both Syria and Iraq was going to be a combination of what happens inside the country, working
with moderate Syrian opposition, working with an Iraqi government that is inclusive, and the US
laying down a more effective counterterrorism platform that gets all the countries in the region
pulling in the same direction.

To tackle terrorists organisations like the ISIS, the focus had to remain on building effective
partnerships

Urged the Iraqi leaders to rise above sectarian motivations and form a government that was
united in its determination to meet the needs and speak to the demands of all their people.

The US had shed blood and worked hard for years to provide Iraqis with the opportunity to have
their own governance but the ISIL crossed the line from Syria, began plotting internally, and they
have attacked communities

The US military was flying a few armed drones over Baghdad to defend American troops and
diplomats in the Iraqi capital if necessary

The armed robotic planes were in addition to other manned and unmanned US aircraft that were
conducting surveillance to gain a better understanding of events on the ground

7. Irans Stand:

offered to work with the US if took the lead in helping push back Sunni ISIS militants who seized a
number of cities and towns in northern Iraq.

Iranian President Hassan Rouhani said that Iran would do everything to protect Shia shrines in
Iraqi cities against the ISIS militant assault.

Iran flew surveillance drones over Iraq and was sending military equipment to help the
government of Iraq fight the Sunni insurgents in late June 2014, according to western media reports.

On July 16, 2014, the US Secretary of State said that the US was open to discussions with Iran if
that could help end the violence.

8. Saudi Arabias Stand:

On July 18, 2014, Saudi Arabia warned of the risks of a civil war in Iraq with unpredictable
consequences for the region.

Saudi Arabia also insisted on the formation of an inclusive government in Iraq.

9. Syria:

On June 24, 2014, Syrian warplanes bombed positions of the ISIS militants near the border
crossing in the town of Qaim.

The airstrikes by Syria came after the ISIS insurgents took control of town of Al-Qaim on the Iraqi
side of the border, providing them a strategic route to Syria.

202

10. Indias Stand:

India backed the government of Iraq in maintaining the territorial integrity of Iraq and expressed
deep concern over the takeover of Mosul and Tikrit by the terrorist outfits.

About 46 Indian nurses were stranded in Tikrit in Iraq.

Around 40 Indian construction workers in the Iraqi city of Mosul were kidnapped by the ISIS
militants when they were being evacuated from the area.

The government of India began planning for the possible evacuation of 10,000 or more Indians
from Iraq.

The Indian Navy put two warships on standby for possible evacuation of Indians stranded in Iraq

The Ministry of External Affairs (MEA) coordinated with the Gulf countries Kuwait, Saudi
Arabia, Bahrain, Qatar, Oman and UAE.

On July 04, 2014, the efforts of the Indian government to rescue its nationals from Iraq met with
success with the release of 46 Indian nurses from captivity in Tikrit

Safe return of the Indian nurses from Iraq was the result of Indias diplomatic outreach by
multiple agencies of the government.

The External Affairs Minister Sushma Swaraj spoke to her counterparts in West Asia, including
the Gulf countries and adequate ground work was also done by the National Security Adviser Ajit
Doval and Foreign Secretary Sujatha Singh.

The Indian government is also making efforts for the release of 40 Indian construction workers
kidnapped by the ISIS.

11. India Needs to Build Strategic Intervention Capabilities to Secure Its Citizens in Foreign
Nations:
Kidnapping of around 40 Indian construction workers in Mosul by the ISIS is a reminder that India
needs to urgently build strategic intervention capabilities to secure its citizens in foreign nations.

Indias strategy has to be innovative without putting to risk the lives of its citizens.

India needs to build up special operations squads to intervene in vulnerable areas worldwide
where the Indian immigrants are in larger numbers.

Elite commando units need to be trained to specialise in those areas and kept as standby for
rapid deployment during contingencies

India has enormous goodwill in the region and the people-to-people diplomacy has given the
country valuable influence which has yielded success as seen by the successful evacuation of
the Indian nurses from Iraq

India demonstrated its capacity to deploy warships and aircraft to evacuate Indians and other
nationals from South Asia during the Asian tsunami in 2004 and the evacuations in Beirut in the
2006 war between Israel and Hezbollah.

India needs to refocus its policy on pre-positioning and deployment overseas of civil and military
assets for mass evacuations whenever required.

12. Implications of the Iraq Crisis on India:

India was monitoring the overall situation in Iraq and there was no cause for alarm

Indias Finance Secretary said that there were reasons to hope that the Iraq crisis would blow
over.

Iraq is Indias second largest oil supplier, meeting 20 per cent of its demand.

203

Fighting has not reached the southern energy hub, which produced two-thirds of Iraqs oil is a
Shia majority area with close ties to Iran.

India is among the targets of ISIS with the groups chief Abu Bakr al-Baghdadi vowing to wage
war against several countries including India.

Indias primary interest in Iraq is in its oil which is in areas controlled by the Shias and Kurds

Military intervention by the US or Iran would be harmful to the long-term interests in Iraq as it
would divide the people of Iraq permanently on sectarian lines.

India can play a key role in bringing about peace in Iraq by urging both the US and Iran not to
intervene military and allow the government of Iraq to defeat the ISIS on its own.

India also needs to influence Saudi Arabia not to increase their support for the tribes in Iraq to a
point that the government of Iraq and Iran perceive it as a threat

India should also try to influence the Iraqi Prime Minister to rise above sectarian differences and
include the Sunni leadership in an inclusive government

The Kurdish Democratic Party hopes to deepen political and economic ties with India and looks
at India as an important partner.

13. Global Economic Implications of the Iraq Crisis:

In mid-June global crude oil prices rose to a nine-month high over concerns that the ISIS attacks
could disrupt oil exports from Iraq, the second-largest OPEC (Organisation of Petroleum
Exporting Countries) oil producer.

The major concern driving the crude oil prices was the possibility of the ISIS taking control of the
south later this year when the demand of oil peaks in Europe and the US.

Currently, Iraqs oil fields located in the south are safe and the northern oil field are safe under
the Kurds.

The International Energy Agency (IEA) said that OPEC would need to produce 1 million barrels
per day (bpd) more oil on average in the second half of 2014 to balance the global market, which
would see a sharp seasonal increase in demand.

The Iraqi crisis also caused concerns among the international airlines as the rising crude oil
prices could hurt the airlines in the second quarter in terms of travel demand

Crude oil prices could ease with international intervention in the Iraq crisis.

The Iraq crisis also adversely impacted the global markets with the stocks dropping to a four
months low and the Indian rupee depreciating against the US dollar.

14. Implications of the Iraq Crisis for the Region and the World:

Division of Iraq on Sectarian Lines

Conflicts in Iraq and Syria could Continue but National Borders are Unlikely to be Changed

A Unity Government in Iraq Based on Broad Consensus is the Way Forward from the Current
Crisis

The US and Iran are Unlikely to Intervene Militarily in Iraq unless Baghdad is in threat of being
Overrun by ISIS

Saudi Arabia and Iran Need to Give Up their Sectarian Approach to Regional Affairs and Address
the Regional Security through Dialogue

India and other Asian Countries who have a Stake in the Regional Stability Need to Consult and
Promote Dialogue and CBMs in the Gulf Region
204
vi.5. Syria (update)

I. US-Russia Tensions in Ukraine Echo in Syria:

1. US Closed Syrian Embassy and Consulates in Michigan and Texas (March 2014):

In March 2014, the US closed the Syrian embassy and two consulates in
Michigan and Texas.

The US Secretary of State John Kerry said that the decision was taken on the ground
that the illegitimacy of the Assad regime was so overwhelming.

Analysts point out that the US decision to close the Syrian embassy and consulates
followed the gains on ground by Syrian military against the opposition forces.

2. Russia Accused the US of Pursuing Regime Change in Syria:

The Russian Foreign Ministry criticised the US of disregarding diplomacy as a
means to resolve the Syrian crisis.

It was pointed out that by such a unilateral move, the US partners in essence
were depriving themselves of the role of co-sponsor of the process of political
regulation in Syria.

Russia charged the US with according a higher priority to regime change in Syria
over the destruction of chemical weapons and support for the people of Syria.

Resolving the issues without direct cooperation with the Syrian government was
impossible, according to the Russian Foreign Ministry statement.

The US and Russia were the co-sponsors of talks in Geneva to resolve the Syrian
crisis, however, the dialogue has not achieved any tangible results so far.

II. Ninety Per cent of Syrian Chemical Weapons Destroyed (April 2014):

Around eight per cent of Syrias chemical weapons material remained in the
country at one particular site, according to Sigrid Kaag, head of the Organisation for
the Prohibition of Chemical Weapons (OPCW).

Syria signed the Chemical Weapons Convention (CWC) and agreed to hand over
its chemical weapons material by June 30, 2014, under the US-Russian deal.

Under the deal, Syria also needs to complete the closure or destruction of
production and storage facilities.

There was a dispute over whether Syria would have to destroy 12 remaining
chemical weapons production sites. Syria wants to seal the sites, which, according
to it have already been rendered unusable. However, the Western nations want them
completely destroyed.

205

III. The US Plan to Arm Syrian Rebels to Push Back Jihadists in Iraq (June
27, 2014):

On June 27, 2014, the US put forward plans to help Syrian opposition with $500
million in arms and training.

The US Secretary of State John Kerry hosted urgent talks in Paris with the
Foreign Ministers of Saudi Arabia, Jordan and UAE on the widening crisis in Iraq
and Syria.

The US Secretary of State also visited Saudi Arabia and met King Abdullah bin
Abdulaziz al-Saud.

Saudi Arabia has called for greater US military support for the Syrian opposition,
whom the kingdom has long backed.

The US said that it intended to ramp up support to the moderate Syrian
opposition.

The arms support to the Syrian opposition is part of the $1.5 billion Regional
Stabilisation Initiative to bolster stability in Syrias neighbours Iraq, Jordan,
Lebanon and Turkey, and to support communities hosting refugees.

The moderate opposition in Syria had the ability to be a very important player in
pushing back against ISISs presence not only in Syria, but also in Iraq, according
to Mr. Kerry.

The leader of the Syrian National Coalition, Ahmad Jarba, welcomed the US
boost to his forces, fighting to oust Syrian President Bashar al-Assad.

IV. Syrian President Bashar al-Assad Sworn in for a New Seven-Year Term
(July 16, 2014):

On July 16, 2014, Syrian President Bashar al-Assad was sworn in for a new
seven-year term.

Mr. Assad won the Presidential election held on June 03, 2014, by 88.7 per cent.
The election was held only in the regime controlled territories.

The Presidential election was denounced as farce by Mr. Assads detractors.

The Syrian President warned Arab and Western governments that they would
pay dearly for backing those who took up arms against him.

V. UN Secretary-General Ban Ki-moons Six Point Suggestion to Resolve
the Syrian Crisis:

Ending the Violence UNSC Urged to Impose an Arms Embargo: Irresponsible for
foreign countries to give continued military support to parties in Syria that were
committing atrocities and violating fundamental principles of human rights and
international law. Security Council has been urged to impose an arms embargo. The
sides have to come to the negotiating table.

206

Protecting People Unfettered Access for Humanitarian Relief Effort: The United
Nations continued to organise huge humanitarian relief effort. But the Syrian
government continued to impose unconscionable access restrictions by removing
medical supplies from aid convoys and deliberately starving and collectively punishing
communities it regarded as sympathetic to the opposition. Some opposition groups
acted similarly. The UN Secretary-General appealed for an end to the sieges and for
unfettered humanitarian access across internal frontiers and international borders.

Starting a Serious Political Process: A new Special Envoy to be named to pursue a
political solution and a transition to a new Syria. Regional countries have a special
responsibility to help end the Syrian war. Recent contacts between Iran and Saudi
Arabia were welcomed and hoped that they would build confidence and reverse a
destructive competition in Syria, Iraq, Lebanon and elsewhere.

Ensuring Accountability of Serious Crimes: UN members need to support
accountability in Syria as the Syrian people have the right to justice and action against
impunity.

Completing the Destruction of Chemical Weapons in Syria: The UN and the OPCW
had worked together to destroy or remove from Syria all of the declared materials in a
once-large arsenal. The task would now be completed at various destruction facilities
outside Syria.

Addressing the Regional Dimensions of the Conflict in Syria Including the
Extremist Threat: Foreign fighters are actively participating on both sides, increasing
the level of violence and exacerbating sectarian hatreds. The international community
needs to come together to eliminate funding and other support for Jabhat al-Nusra and
the Islamic State of Iraq and Syria (ISIS). The ISIS was also a threat to all communities
in Iraq; it is crucial for the regions political and religious leaders to call for restraint and
avoid a spiral of attack and reprisal.

Sectarian tensions, massive movements of refugees, daily atrocities and
spreading instability make the civil war in Syria a global threat. The international
community and the UN Security Council (UNSC) have to uphold its responsibility.

SUMMARY

I. US-Russia Tensions in Ukraine Echo in Syria:

1. US Closed Syrian Embassy and Consulates in Michigan and Texas (March 2014):

In March 2014, the US closed the Syrian embassy and two consulates in Michigan and Texas.

Decision was taken on the ground that the illegitimacy of the Assad regime was so
overwhelming.

US decision to close the Syrian embassy and consulates followed the gains on ground by Syrian
military against the opposition forces.

2. Russia Accused the US of Pursuing Regime Change in Syria:

The Russian Foreign Ministry criticised the US of disregarding diplomacy as a means to resolve
the Syrian crisis.

It was pointed out that by such a unilateral move, the US partners in essence were depriving
themselves of the role of co-sponsor of the process of political regulation in Syria.

207

Russia charged the US with according a higher priority to regime change in Syria over the
destruction of chemical weapons and support for the people of Syria.

Resolving the issues without direct cooperation with the Syrian government was impossible

The US and Russia were the co-sponsors of talks in Geneva to resolve the Syrian crisis, however,
the dialogue has not achieved any tangible results so far.

II. Ninety Per cent of Syrian Chemical Weapons Destroyed (April 2014):

Around eight per cent of Syrias chemical weapons material remained in the country at one
particular site

Syria signed the Chemical Weapons Convention (CWC) and agreed to hand over its chemical
weapons material by June 30, 2014, under the US-Russian deal.

Under the deal, Syria also needs to complete the closure or destruction of production and
storage facilities.

There was a dispute over whether Syria would have to destroy 12 remaining chemical weapons
production sites

III. The US Plan to Arm Syrian Rebels to Push Back Jihadists in Iraq (June 27, 2014):

On June 27, 2014, the US put forward plans to help Syrian opposition with $500 million in arms
and training.

The US Secretary of State John Kerry hosted urgent talks in Paris with the Foreign Ministers of
Saudi Arabia, Jordan and UAE on the widening crisis in Iraq and Syria.

The US Secretary of State also visited Saudi Arabia and met King Abdullah bin Abdulaziz al-Saud.

Saudi Arabia has called for greater US military support for the Syrian opposition, whom the
kingdom has long backed.

The US said that it intended to ramp up support to the moderate Syrian opposition.

The arms support to the Syrian opposition is part of the $1.5 billion Regional Stabilisation
Initiative to bolster stability in Syrias neighbours Iraq, Jordan, Lebanon and Turkey, and to
support communities hosting refugees.

The moderate opposition in Syria had the ability to be a very important player in pushing back
against ISISs presence not only in Syria, but also in Iraq

The leader of the Syrian National Coalition, Ahmad Jarba, welcomed the US boost to his forces,
fighting to oust Syrian President Bashar al-Assad.

IV. Syrian President Bashar al-Assad Sworn in for a New Seven-Year Term (July 16, 2014)

V. UN Secretary-General Ban Ki-moons Six Point Suggestion to Resolve the Syrian Crisis:

Ending the Violence UNSC Urged to Impose an Arms Embargo

Protecting People Unfettered Access for Humanitarian Relief Effort

Starting a Serious Political Process

Ensuring Accountability of Serious Crimes

Completing the Destruction of Chemical Weapons in Syria

Addressing the Regional Dimensions of the Conflict in Syria Including the Extremist Threat

Sectarian tensions, massive movements of refugees, daily atrocities and spreading instability
make the civil war in Syria a global threat

208
vi.6. JAPAN

I. Background:

1. Parliamentary Elections in Japan (December 2012):

On December 16, 2012, elections were held to the Diets (Japans Parliament) lower Chamber, the
House of Representatives.

The Opposition Liberal Democratic Party (LDP) won an absolute majority of 294 seats in the
480-seat lower Chamber of Diet. The ruling Democratic Party of Japan (DJP) won only 57 seats. In the
last election in 2009 the DJP had won 308 seats.

The conservative LDP has been ruling Japan for more than 50 years.

The LDP with its junior coalition partner the New Komeito has two-thirds majority in the lower
Chamber of Diet which would be enough to override the upper Chamber in which no party has overall
control.

2. Shinzo Abe Returns as Prime Minister of Japan:

The victory of the conservative LDP led to the return of Shinzo Abe as the Prime Minister of
Japan. Earlier Mr. Abe was the Prime Minister of Japan for a short period in 2006-07.

Japans new Prime Minister, 58-year-old Shinzo Abe committed to reviving the economy after years
of deflation (the opposite of inflation, occurs when the prices at a given point of time are lower than the
prices during the corresponding period of the previous year) and worsened by rising yen.

Mr. Abe promised bold monetary policy, flexible fiscal policy and a growth strategy that
encouraged private investment, and with these three policies pillars, achieve results.

The new Prime Minister of Japan promised to firm up ties with the US and resolved to protect the
peoples lives, Japans territory and its beautiful oceans.

Mr. Abe said that the disputed Senkaku islands were Japans inherent territory. The islands are
also claimed by China.

3. Challenges Before the New Prime Minister of Japan:

To revive Japans economy which has been stagnating for years.

Reviving Japans exports which have declined due to a strong yen.

Japanese economy is slipped to the third place among the worlds biggest economies behind the
US and China.

Mr. Abe wants to revise Japans Constitution by designating the Defence Forces as military and
enhanced defence ties with nations that do not harbour ill will against Japan.

4. India-Japanese Strategic Relations would be Strengthened Under Mr. Abes Prime
Ministership:

India-Japanese relations were on a high when Mr. Abe was the Prime Minister five years back,

The defence and strategic relations between India and Japan would be strengthened under Prime
Minister Shinzo Abes leadership, according to analysts.

It is also felt that a more favourable environment for civilian nuclear cooperation between India and
Japan could be created under Mr. Abes leadership.

209

II. Japans Cabinet Approved Collective Self-Defence Ending 69 Years of
Pacifist Defence Policy:

On July 01, 2014, Japanese Prime Minister Shinzo Abe and his Cabinet approved
amendment to Japans Pacifist Constitution giving more powers to the military.

After World War II, Japan embraced a Pacifist Constitution which renounced war
and possession of war potential. Japans protection was secured under a US
military umbrella.

However, Japan also set up a Self-Defence Force (SDF) to defend its home
islands. Over the years the SDFs operations were altered to bring it in line with the
prevailing circumstances. In 2001, the SDF was dispatched to the Indian Ocean to
provide support to US military action in Afghanistan.

The Japanese Prime Minister had planned to change Article 9 of the Constitution which
renounced the threat or use of force as means of settling international disputes.
However, he was unable to muster the two-thirds majority needed in both Houses.

Under the new definition, Japanese troops would be able to come to the aid of
allies if they come under attack from a common enemy, even if Japan is not the
object of the attack.

The move to allow the Collective Self-Defence has to be approved by the
Parliament. This should be a formality given the control of Mr. Abes LDF in both
houses of the Parliament, according to analysts.

III. Implications of Japans New Collective Self-Defence Policy:

Analysts point out that Japanese Prime Minister Shinzo Abe has started the
process of reinterpretation of the countrys Pacifist Constitution leading to the
approval of the new Collective Self-Defence policy which would allow the
Japanese military to help friendly countries under attack.

Japans Collective Self-Defence policy has caused concern in East Asian
countries which were once the target of Japans armed aggression.

Japans new policy has been welcomed by the US.

Analysts feel that the Abe Governments move does not indicate that it has given
up on pacifism, instead, it points to a pragmatic approach to changed
circumstances in the region underlining that Japan is now prepared to secure its
legitimate interests.

Japans new policy could be seen as a continuation of a series of small steps to
respond to the prevailing circumstances, according to analysts. In this context,
North Koreas development of nuclear weapons and testing of missiles and Japans
territorial disputes with China in the East China Sea are seen threats to Japans
sovereignty.

IV. Chinas Reaction:

China termed Japans new Collective Self-Defence policy as a brutal violation
of the spirit of the post-World War II Constitution.
210

The new policy raised doubts about Japans approach to peaceful development,
according to Chinas Foreign Ministry spokesperson Hong Lei.

China urged Japan to sincerely respect the rightful concerns of neighbouring
Asian countries, diligently solve any related issues, and not affect Chinas rights
and stability of the region, according to Chinas Foreign Ministry spokesperson.

China opposed the Japanese fabricating the China threat to promote its
domestic political agenda, according to the Chinese Foreign Ministry spokesperson.

V. South Koreas Reaction:

South Korea is also involved renewed disputes with Japan over wartime history.
The question of Japanese occupation is still a sensitive issue in South Korea and China.

Japanese government should dispel doubts stemming from history, abandon
historical revisionism and behave properly to win confidence from its
neighbours, according to the South Korean Foreign Ministry.

SUMMARY
I. Japans Cabinet Approved Collective Self-Defence Ending 69 Years of Pacifist Defence
Policy:
On July 01, 2014, Japanese Prime Minister Shinzo Abe and his Cabinet approved amendment to
Japans Pacifist Constitution giving more powers to the military.

After World War II, Japan embraced a Pacifist Constitution which renounced war and possession
of war potential. Japans protection was secured under a US military umbrella.

Japan also set up a Self-Defence Force (SDF) to defend its home islands

Under the new definition, Japanese troops would be able to come to the aid of allies if they come
under attack from a common enemy, even if Japan is not the object of the attack.

The move to allow the Collective Self-Defence has to be approved by the Parliament

II. Implications of Japans New Collective Self-Defence Policy:

Japans Collective Self-Defence policy has caused concern in East Asian countries which were
once the target of Japans armed aggression.

Japans new policy has been welcomed by the US.

The Abe Governments move does not indicate that it has given up on pacifism, instead, it points
to a pragmatic approach to changed circumstances in the region underlining that Japan is now
prepared to secure its legitimate interests.

Japans new policy could be seen as a continuation of a series of small steps to respond to the
prevailing circumstances

III. Chinas Reaction:
China termed Japans new Collective Self-Defence policy as a brutal violation of the spirit of the
post-World War II Constitution.
The new policy raised doubts about Japans approach to peaceful development.
China urged Japan to sincerely respect the rightful concerns of neighbouring Asian countries, diligently
solve any related issues, and not affect Chinas rights and stability of the region,
China opposed the Japanese fabricating the China threat to promote its domestic political agenda
V. South Koreas Reaction:
South Korea is also involved renewed disputes with Japan over wartime history
Japanese government should dispel doubts stemming from history, abandon historical revisionism and
behave properly to win confidence from its neighbours
211
vi.7. UKRAINE CRISIS (UPDATE)

1. Meeting between the US and Russian Presidents (Normandy, France,
June 06, 2014):

On June 06, 2014, the US President Barack Obama met Russian President
Vladimir Putin in Normandy, France at a lunch for leaders attending the 70
th

anniversary of the Allied landings in Normandy on D-Day during World War II.

The US President told his Russian counterpart that he must de-escalate tensions
in Ukraine or face deeper international isolation, according to a US official.

President Obama underscored that the successful Ukrainian election provided
an opportunity that should be taken, according to Ben Rhodes, a deputy US national
security advisor.

The US President made clear that de-escalation depends upon Russia
recognising President-elect Poroshenko as the legitimate leader of Ukraine,
ceasing support for separatist in eastern Ukraine, and stopping the provision of
arms and material across the border, according to the deputy US national security
advisor.

Mr. Obama noted President-elect Poroshenkos commitment to pursue reforms
to ensure that the rights and interests of all Ukrainians were respected, and
urged Russia to work immediately with the government in Kiev to reduce
tensions, according to Mr. Rhodes.

President Obama made clear that a failure to take these steps would only deepen
Russias isolation, according to Mr. Rhodes.

If Russia did take the opportunity to recognise and work with the new
government in Kiev, President Obama indicated that there could be openings to
reduce tensions, according to the deputy US national security advisor.

2. G-7 Leaders Warn Russia (Brussels, June 05, 2014):

On June 05, 2014, the G-7 leaders warned Russia to stop destabilising Ukraine or
face further sanctions as the met in Brussels without the Russian President
Vladimir Putin. Russia has been suspended from the Group.

The G-7 joint communique said that the Russian President must recognise the
results of Ukraines May 25, 2014, Presidential election, won by Petro
Poroshenko, stem destabilisation in the east of Ukraine, and pull Russian troops
back from the border.

Actions to destabilise eastern Ukraine were unacceptable and must stop,
according to the communique.

The G-7 leaders stood ready to intensify targeted sanctions and to implement
significant additional restrictive measures to impose further costs on Russia
should events so require, according to the joint communique.

212

3. Petro Poroshenko Sworn in as Ukraines Fifth Post-Soviet President
(June 07, 2014):

On June 07, 2014, Petro Poroshenko, the Western-backed tycoon was sworn in
as the fifth Ukraines fifth post-Soviet President. Mr. Poroshenko took oath a day
after meeting the Russian President Vladimir Putin in Normandy, France.

Mr. Poroshenko vowed to avert civil war and mend relations with Russia.

The new Ukrainian President also stressed that he would never accept Russias
seizure of Crimea or attempts to divert his pro-European course.

Mr. Poroshenko vowed to give amnesty to any insurgents who had no blood on
their hands as a first step in a peace initiative designed to save Ukraine.

4. Ukraine Forces Retook the Strategic Rebel-held Port City of Mariupol in
Eastern Ukraine (June 13, 2104):

On June 13, 2014, the Ukrainian forces said that they had hoisted the national
flag over the strategic rebel-held port city of Mariupol in eastern Ukraine.

The new Ukrainian leaders were keen to prove that the separatist insurgency was
being controlled by Russia and had only limited support among ethnic Russians,
the large minority of regional residents.

5. Pro-Russian Rebels Down a Ukrainian Military Plane (June 14, 2014):

On June 14, 2014, pro-Russian rebels brought down a Ukrainian military plane
near Luhansk in eastern Ukraine killing 49 troops.

This was the deadliest attack against the Ukrainian federal forces in the
two-month insurgency.

The Ukrainian leaders vowed to strike back at pro-Russian rebels who downed
the military plane. Flags were lowered across Ukraine.

Protesters tore down the Russian embassy flag.

The US accused Russia of helping the insurgency by sending tanks and rocket
launchers to the pro-Russian rebels the charge was denied by Russia.

6. Russia Cut Gas Flow to Ukraine (June 16, 2014):

On June 16, 2014, Russia cut the flow of gas to Ukraine after the talks failed to
resolve a price dispute threatened to disrupt supplies to Europe for the third time
in a decade.

Ukraine had been urgently filling up its gas storage tanks in anticipation of
Russias decision and no disruptions to Europe were likely until the winter
heating season begins, according to analysts.

213

7. Ukrainian President Declared a Week-Long Ceasefire Released a Peace
Plan (June 20, 2014):

On June 20, 2014, Ukraines new President Petro Poroshenko declared a
week-long unilateral ceasefire and unveiled a peace plan for curbing the
pro-Russian insurgency.

The 14-point peace plan demanded the rebels to disarm and promised to
decentralise power through constitutional reform.

The peace plan dropped criminal charges against fighters who committed no serious
crimes and provided guaranteed corridor for Russian and Ukrainian mercenaries to
leave the conflict zone.

The plan established a 10-km border buffer-zone to stem the flow of gunmen and
military equipment.

The peace plan called on the local government bodies to resume their operations.

8. Rebels Reject Ceasefire:

The pro-Russian rebels in eastern Ukraine rejected the Ukrainian Presidents
week-long ceasefire.

The rebels also rejected the peace plan call for local government bodies to resume their
operations.

The pro-Russian rebels have proclaimed their independence from Ukraine and
occupied administration buildings in around a dozen cities and towns in eastern
Ukraine.

9. Ukraine Signed a Landmark Deal with EU (Brussels, June 27, 2014):

On June 27, 2014, Ukraines new President Petro Poroshenko signed a new
landmark deal with the European Union (EU).

Mr. Poroshenko said that the Association Agreement with EU offered Ukraine an
absolutely new perspective and hailed the signing of the deal as a historic day,
the most important day since independence.

The pact with EU was rejected by the ex-Ukrainian President Viktor Yanukovych
which plunged the country into turmoil and brought the relations between
Russia and the West to their lowest level since the Cold War.

The EU said that the deal would boost Ukraines exports to the 28-member bloc
by $1.35 billion per annum and save Ukraine approximately half the amount in
revoked customs duties.

The EU had also signed similar partnership agreements with Georgia and
Moldova two former Soviet countries with complicated relations with Russia.

Ukraines Association Agreement with the EU is seen as a setback to Russias
plan of including Ukraine in a Russian-led alliance Eurasian Union - that rivals
the European Union and NATO.

214

Russia warned that it would have no choice but to impose punishing trade
restrictions on Ukraine after doubling the gas price.

Analysts pointed out that Ukraines economy could benefit from the adoption of
European business and production standards that could make its goods
competitive again.

The agreement, coupled with Ukraines IMF ($17 billion) deal should act as an
anchor for much-needed economic and political reforms, according to Londons
Capital Economics consultancy.

10. Ukraine Resumed Offensive after a 10-Day Ceasefire (July 01, 2014):

On July 01, 2014, Ukraine launched attacks with tanks and fighter bombers
against pro-Russian rebels in eastern Ukraine.

Ukraine dismissed European pressure to save the 10-day unilateral ceasefire.

The Ukrainian President Petro Poroshenko told the nation that the ceasefire had
been misused by the rebels to regroup and stock up on heavy arms from Russia.

On July 06, 2014, Ukrainian forces hoisted the countrys flag over the
pro-Russian rebel-held city of Salvyansk after a shelling onslaught that levelled
most of the city.

Slavyansk is the symbolic heart of the uprising in eastern Ukraine sparked by the
ouster of the pro-Russian administration in Ukraine and fuelled by Russias
subsequent seizure of Crimea, according to analysts.

11. Malaysian Airliner Shot Down Over Eastern Ukraine, Killing all 295
People Aboard (July 17, 2014):

On July 17, 2014, a Malaysian Airliner was shot down over eastern Ukraine,
killing all 295 people onboard.

Ukraine accused the rebels for shooting down the MH 17 Malaysian Airlines
Boeing 777 with a heavy SA-11 ground-to-air missile as it was flying from
Amsterdam to Kuala Lumpur.

The rebels denied any involvement and handed over the bodies and the black
boxes to the International Civil Aviation Organisation on July 21, 2014.

There was global outrage at the downing of the Malaysian passenger plane with
leaders of several countries condemning the incident.

US President Barack Obama said that Russian backed separatists inside of
Ukraine used surface-to-air missiles to bring down the plane.

Mr. Obama said that the incident was a wake-up call for Europe and the rest of
the world that there were consequences to escalating tensions in the Ukraine
region.

Russian President Vladimir Putin said that Ukraine bore responsibility for the
crash, but stressed that he was in contact with the Ukrainian President Petro
Poroshenko to achieve long-term peace.
215

12. Ukrainian Prime Minister Resigned Paving the Way for Early Elections:

On July 24, 2014, the Ukrainian Prime Minister Arseniy Yatsenyuk said he was
stepping down over dissolution of the Parliamentary coalition and the blocking
of government initiatives after several parties walked out of the ruling coalition.

The collapse of the coalition government paved the way for early elections to be
called by the President Petro Poroshenko within 30 days.

13. Conclusion:

Analysts point out that Ukraines regain of control over Slavyansk, home to one of
the countrys biggest weapons storage facilities that fell to the rebels on April 06,
2014, marked a turning point in the three months of warfare that threatened the
very survival of Ukraine.

The Western countries claim that Russia is covertly funding and arming the
rebels to destabilise Ukraines new pro-western leaders and retain control over
the Russian-speaking eastern Ukraine.

Analysts point out that the new President of Ukraine Petro Poroshenko desperately
needed an early success to secure the trust of Ukrainians who were frustrated by
the Ukrainian armys inability to stand up to what they see as Russian
aggression.

SUMMARY
1. Meeting between the US and Russian Presidents (Normandy, France, June 06, 2014):

The US President told his Russian counterpart that he must de-escalate tensions in Ukraine or
face deeper international isolation

President Obama underscored that the successful Ukrainian election provided an opportunity
that should be taken

The US President made clear that de-escalation depends upon Russia recognising
President-elect Poroshenko as the legitimate leader of Ukraine, ceasing support for separatist in
eastern Ukraine

Mr. Obama noted President-elect Poroshenkos commitment to pursue reforms to ensure that the
rights and interests of all Ukrainians were respected, and urged Russia to work immediately with
the government in Kiev to reduce tensions

President Obama made clear that a failure to take these steps would only deepen Russias
isolation

If Russia did take the opportunity to recognise and work with the new government in Kiev,
President Obama indicated that there could be openings to reduce tensions

2. G-7 Leaders Warn Russia (Brussels, June 05, 2014):

Russian President must recognise the results of Ukraines May 25, 2014, Presidential election,
won by Petro Poroshenko, stem destabilisation in the east of Ukraine, and pull Russian troops
back from the border.

Actions to destabilise eastern Ukraine were unacceptable and must stop

The G-7 leaders stood ready to intensify targeted sanctions and to implement significant
additional restrictive measures to impose further costs on Russia should events so require

216

3. Petro Poroshenko Sworn in as Ukraines Fifth Post-Soviet President (June 07, 2014):

On June 07, 2014, Petro Poroshenko, the Western-backed tycoon was sworn in as the fifth
Ukraines fifth post-Soviet President

Mr. Poroshenko vowed to avert civil war and mend relations with Russia.

The new Ukrainian President also stressed that he would never accept Russias seizure of
Crimea or attempts to divert his pro-European course.

Vowed to give amnesty to any insurgents who had no blood on their hands as a first step in a
peace initiative designed to save Ukraine.

4. Ukraine Forces Retook the Strategic Rebel-held Port City of Mariupol in Eastern Ukraine
(June 13, 2104):
On June 13, 2014, the Ukrainian forces said that they had hoisted the national flag over the
strategic rebel-held port city of Mariupol in eastern Ukraine.

The new Ukrainian leaders were keen to prove that the separatist insurgency was being
controlled by Russia and had only limited support among ethnic Russians

5. Pro-Russian Rebels Down a Ukrainian Military Plane (June 14, 2014):

On June 14, 2014, pro-Russian rebels brought down a Ukrainian military plane near Luhansk in
eastern Ukraine killing 49 troops.

The US accused Russia of helping the insurgency by sending tanks and rocket launchers to the
pro-Russian rebels the charge was denied by Russia.

6. Russia Cut Gas Flow to Ukraine (June 16, 2014):

On June 16, 2014, Russia cut the flow of gas to Ukraine after the talks failed to resolve a price
dispute threatened to disrupt supplies to Europe for the third time in a decade.

Ukraine had been urgently filling up its gas storage tanks in anticipation of Russias decision and
no disruptions to Europe were likely until the winter heating season begins

7. Ukrainian President Declared a Week-Long Ceasefire Released a Peace Plan (June 20, 2014):
On June 20, 2014, Ukraines new President Petro Poroshenko declared a week-long unilateral
ceasefire and unveiled a peace plan for curbing the pro-Russian insurgency.
The 14-point peace plan demanded the rebels to disarm and promised to decentralise power
through constitutional reform.

8. Rebels Reject Ceasefire: The pro-Russian rebels have proclaimed their independence from Ukraine and
occupied administration buildings in around a dozen cities and towns in eastern Ukraine.

9. Ukraine Signed a Landmark Deal with EU (Brussels, June 27, 2014):

On June 27, 2014, Ukraines new President Petro Poroshenko signed a new landmark deal with
the European Union (EU).

The Association Agreement with EU offered Ukraine an absolutely new perspective and hailed
the signing of the deal as a historic day, the most important day since independence.

The pact with EU was rejected by the ex-Ukrainian President Viktor Yanukovych which plunged
the country into turmoil and brought the relations between Russia and the West to their lowest
level since the Cold War.

The EU said that the deal would boost Ukraines exports to the 28-member bloc by $1.35 billion
per annum and save Ukraine approximately half the amount in revoked customs duties.

The EU had also signed similar partnership agreements with Georgia and Moldova two former
Soviet countries with complicated relations with Russia.
217

Ukraines Association Agreement with the EU is seen as a setback to Russias plan of including
Ukraine in a Russian-led alliance Eurasian Union - that rivals the European Union and NATO.

Russia warned that it would have no choice but to impose punishing trade restrictions on
Ukraine after doubling the gas price.

Ukraines economy could benefit from the adoption of European business and production
standards that could make its goods competitive again.

The agreement, coupled with Ukraines IMF ($17 billion) deal should act as an anchor for
much-needed economic and political reforms, according to Londons Capital Economics consultancy.

10. Ukraine Resumed Offensive after a 10-Day Ceasefire (July 01, 2014):

On July 01, 2014, Ukraine launched attacks with tanks and fighter bombers against pro-Russian
rebels in eastern Ukraine.

Ukraine dismissed European pressure to save the 10-day unilateral ceasefire.

The Ukrainian President Petro Poroshenko told the nation that the ceasefire had been misused
by the rebels to regroup and stock up on heavy arms from Russia.

On July 06, 2014, Ukrainian forces hoisted the countrys flag over the pro-Russian rebel-held city
of Salvyansk after a shelling onslaught that levelled most of the city.

Slavyansk is the symbolic heart of the uprising in eastern Ukraine sparked by the ouster of the
pro-Russian administration in Ukraine and fuelled by Russias subsequent seizure of Crimea

11. Malaysian Airliner Shot Down Over Eastern Ukraine, Killing all 295 People Aboard (July 17,
2014):
Ukraine accused the rebels for shooting down the MH 17 Malaysian Airlines Boeing 777 with a
heavy SA-11 ground-to-air missile as it was flying from Amsterdam to Kuala Lumpur.

The rebels denied any involvement and handed over the bodies and the black boxes to the
International Civil Aviation Organisation on July 21, 2014.

There was global outrage at the downing of the Malaysian passenger plane with leaders of
several countries condemning the incident.

US President Barack Obama said that Russian backed separatists inside of Ukraine used
surface-to-air missiles to bring down the plane.

Mr. Obama said that the incident was a wake-up call for Europe and the rest of the world that
there were consequences to escalating tensions in the Ukraine region.

Russian President Vladimir Putin said that Ukraine bore responsibility for the crash, but stressed
that he was in contact with the Ukrainian President Petro Poroshenko to achieve long-term
peace.

12. Ukrainian Prime Minister Resigned Paving the Way for Early Elections

13. Conclusion:

Ukraines regain of control over Slavyansk, home to one of the countrys biggest weapons
storage facilities that fell to the rebels on April 06, 2014, marked a turning point in the three
months of warfare that threatened the very survival of Ukraine.

The Western countries claim that Russia is covertly funding and arming the rebels to destabilise
Ukraines new pro-western leaders and retain control over the Russian-speaking eastern
Ukraine.

New President of Ukraine Petro Poroshenko desperately needed an early success to secure the
trust of Ukrainians who were frustrated by the Ukrainian armys inability to stand up to what they
see as Russian aggression.
218
VII. INTERNATIONAL ORGANISATIONS
1. BRICS (UPDATE)

I. Sixth BRICS Summit (Fortaleza, Brazil, July 14-15, 2014):

1. Agenda for the Sixth Summit attended by the BRICS Heads of States:

The sixth BRICS summit was held in Fortaleza, Brazil on July 14-15, 2014.

The summit was attended by the BRICS Heads of State Indian Prime Minister
Narendra Modi, Russian President Vladimir Putin, Chinese President Xi Jinping, South
African President Jacob Zuma and the President Brazil Dilma Rousseff.

Geopolitical issues like Iraq and Ukraine crisis, the Gaza violence and the US
National Security Agency surveillance of world leaders.

Announcement of a BRICS bank and a Contingency Reserve Fund

2. Indian Prime Minister Narendra Modis Address to the Summit:

The UN Security Council (UNSC) and the International Monetary Fund (IMF) are in
need of urgent reform.

Called on the UNSC and the IMF to recognise and represent ground realities and
corrective action must begin with the reform of institutions of global governance.
This had been on the BRICS agenda since its inception.

Stressed on a common outlook on global crisis such as Israel-Palestine conflict,
Syria and Iraq.

Called BRICS members to help Afghanistan fight the forces of terrorism.

Called for a united stand on zero terrorism stressing that collective pressure
must be put on States to deny sanctuaries and support to terrorists.

Emphasised on Vasudaiv kutumbakam (global family) while calling for more
people to people ties within the BRICS countries, including a BRICS university,
more travel, scientific exchanges and sharing of healthcare facilities.

3. BRICS Announced the Setting Up of a $100 Billion New Development Bank (NDB) and
a $100 Billion Currency Reserve Arrangement (CRA):

At the conclusion of the sixth summit, the BRICS countries announced the
setting up of a $100 billion New Development Bank (NDB) and a $100 billion
Currency Reserve Arrangement (CRA).

The BRICS Bank was first mooted at the fourth BRICS summit in New Delhi in
2012.

The BRICS members agreed to have an equal share for each member in the NDB.

The headquarters of the NDB will be located in Shanghai, as an acknowledgment
that China is the biggest economy in the grouping.

India would assume the first Presidency of the NDB.
219

The Bank would have an African-Regional Centre in South Africa.

The Contingency Reserve Arrangement (CRA) of $100 billion was also set up to
help developing economy tide over short-term liquidity pressures, promote
further BRICS cooperation, strengthen the global financial safety net and
complement existing international arrangements.

4. Fortaleza Declaration:

NDB would Strengthen Cooperation Among BRICS Countries and Supplement
Efforts of Multinational and Regional Financial Institutions: Based on sound
banking principles, the New Development Bank (NDB) would strengthen the
cooperation among BRICS countries and would supplement the efforts of multilateral
and regional financial institutions for global development, thus contributing to the
collective commitments for achieving the goal of strong, sustainable and balanced
growth.

Commitment to Refrain from Trade Protectionist Measures Incompatible with the
WTO Obligations: BRICS countries reaffirmed their commitment to refrain from trade
protectionist measures that were incompatible with WTO obligations, while respecting
the special and differential treatment for developing countries.

Uncertainty Regarding Economic Growth and Policy Responses in Developed
Countries could lead in Increased Volatility in Financial Markets: Expressed
concern over the slow pace of global economic recovery and pointed out that the
uncertainty regarding economic growth and policy responses in developed countries
could lead in increased volatility in financial markets and further affect the international
economy.

In spite of the Challenging Economic Environment, the BRICS countries would
continue to contribute to the global economic recovery.

Reaffirmed the importance of continued dialogue on international investment
agreements.

Welcomed the proposal to establish BRICS Expert Dialogue on Electronic
Commerce.

Called on Israel and Palestine to resume negotiations towards a two-State
solution.

II. Conclusion:

1. Significance of the Establishment of the $100 Billion New Development Bank (NDB):

The agreement to set up the $100 billion New Development Bank (NDB) by the BRICS
countries signalled the start of a new global financial order that aimed to be more
inclusive than the IMFA and the World Bank, according to analysts.

Indias Prime Minister Narendra Modi welcomed the BRICS summit decision stating
that the vision of the New Development Bank, at the Delhi Summit two years ago, had
been translated into a reality, in Fortaleza. It would not only benefit BRICS nations,
but also support other developing nations.

220

Analysts point out that the NDB would have an impact on the existing
arrangements put in place by the IMF and World Bank, and would also give more
say for the smaller countries.

The Fortaleza Declaration emphasised that the NDB would supplement the efforts of
multilateral and regional financial institutions for global development.

The NDB would help emerging and developing nations mobilise resources for
infrastructure and sustainable development projects, according to the Fortaleza
Declaration.

Analysts feel that the NDB is an attempt by the five BRICS countries to develop a
countervailing pole, to stabilise each others currencies and markets in a crisis
and to mediate their savings directly to one another.

2. Significance of the Sixth BRICS Summit for India:

BRICS is the only grouping in the world that is not region, security or
trade-based with its members coming together to create a more multilateral
global order, according to analysts.

China and Russia backed India, Brazil and South Africa on the issue of UN
reform and UN Security Council Expansion.

The setting up of the BRIC New Development Bank (NDB) at the Sixth BRICS
summit was seen as a major victory for India, which had pitched for it since 2012.

Prime Minister Narendra Modi said that the BRICS summit was an opportunity to
discuss with the BRICS partners how the grouping could contribute to
international efforts to address regional crises, address security threats and
restore a climate of peace and stability in the world.

Indias Prime Minister held very important bilateral meetings with the Presidents
of Russia, China, Brazil and South Africa.

SUMMARY

I. Sixth BRICS Summit (Fortaleza, Brazil, July 14-15, 2014):

1. Agenda for the Sixth Summit attended by the BRICS Heads of States:

Geopolitical issues like Iraq and Ukraine crisis, the Gaza violence and the US National Security
Agency surveillance of world leaders.

Announcement of a BRICS bank and a Contingency Reserve Fund

2. Indian Prime Minister Narendra Modis Address to the Summit:

The UN Security Council (UNSC) and the International Monetary Fund (IMF) are in need of urgent
reform.

Called on the UNSC and the IMF to recognise and represent ground realities and corrective
action must begin with the reform of institutions of global governance

221

Stressed on a common outlook on global crisis such as Israel-Palestine conflict, Syria and Iraq.

Called BRICS members to help Afghanistan fight the forces of terrorism.

Called for a united stand on zero terrorism stressing that collective pressure must be put on
States to deny sanctuaries and support to terrorists.

Emphasised on Vasudaiv kutumbakam (global family) while calling for more people to people
ties within the BRICS countries, including a BRICS university, more travel, scientific exchanges
and sharing of healthcare facilities.

3. BRICS Announced the Setting Up of a $100 Billion New Development Bank (NDB) and a $100
Billion Currency Reserve Arrangement (CRA):

At the conclusion of the sixth summit, the BRICS countries announced the setting up of a $100
billion New Development Bank (NDB) and a $100 billion Currency Reserve Arrangement (CRA).

The BRICS Bank was first mooted at the fourth BRICS summit in New Delhi in 2012.

The BRICS members agreed to have an equal share for each member in the NDB.

The headquarters of the NDB will be located in Shanghai, as an acknowledgment that China is the
biggest economy in the grouping.

India would assume the first Presidency of the NDB.

The Bank would have an African-Regional Centre in South Africa.

The Contingency Reserve Arrangement (CRA) of $100 billion was also set up to help developing
economy tide over short-term liquidity pressures, promote further BRICS cooperation,
strengthen the global financial safety net and complement existing international arrangements.

4. Fortaleza Declaration:

NDB would Strengthen Cooperation Among BRICS Countries and Supplement Efforts of
Multinational and Regional Financial Institutions

Commitment to Refrain from Trade Protectionist Measures Incompatible with the WTO
Obligations

Uncertainty Regarding Economic Growth and Policy Responses in Developed Countries could
lead in Increased Volatility in Financial Markets

In spite of the Challenging Economic Environment, the BRICS countries would continue to
contribute to the global economic recovery.

Reaffirmed the importance of continued dialogue on international investment agreements.

Welcomed the proposal to establish BRICS Expert Dialogue on Electronic Commerce.

Called on Israel and Palestine to resume negotiations towards a two-State solution.

II. Conclusion:

1. Significance of the Establishment of the $100 Billion New Development Bank (NDB):

Signalled the start of a new global financial order that aimed to be more inclusive than the IMFA
and the World Bank

It would not only benefit BRICS nations, but also support other developing nations.

222

NDB would have an impact on the existing arrangements put in place by the IMF and World Bank,
and would also give more say for the smaller countries.

NDB would supplement the efforts of multilateral and regional financial institutions for global
development.

The NDB would help emerging and developing nations mobilise resources for infrastructure and
sustainable development projects.

NDB is an attempt by the five BRICS countries to develop a countervailing pole, to stabilise each
others currencies and markets in a crisis and to mediate their savings directly to one another.

2. Significance of the Sixth BRICS Summit for India:

BRICS is the only grouping in the world that is not region, security or trade-based with its
members coming together to create a more multilateral global order

China and Russia backed India, Brazil and South Africa on the issue of UN reform and UN
Security Council Expansion.

The setting up of the BRIC New Development Bank (NDB) at the Sixth BRICS summit was seen as
a major victory for India, which had pitched for it since 2012.

Prime Minister Narendra Modi said that the BRICS summit was an opportunity to discuss with the
BRICS partners how the grouping could contribute to international efforts to address regional
crises, address security threats and restore a climate of peace and stability in the world.

Indias Prime Minister held very important bilateral meetings with the Presidents of Russia,
China, Brazil and South Africa.

223
VIII. SCIENCE & TECHNOLOGY
1. INDIAS SPACE PROGRAMME
(UPDATE)

I. PSLV C-23 Successfully Launched Five Foreign Satellites (Sriharikota,
Andhra Pradesh, June 30, 2014):

On June 30, 2014, Indian Space Research Organisations (ISRO) Polar Satellite
Launch Vehicle (PSLV) C-23 successfully launched five foreign satellites into
orbit from ISROs spaceport in Sriharikota.

The launch was witnessed by Prime Minister Narendra Modi.

In a 20-minute mission, PSLV C-23 smoothly launched the following satellites
into a 660-km sun synchronous orbit:
714-kg French earth observation satellite SPOT-7
14-kg German AISAT
15-kg Canadian NLS7.1 (CAN-X4) and NLS7.2 (CAN-X5)
7-kg VELOX-1 of Singapore

II. Significance of the Successful Launch by the PSLV C-23:

The successful launch marked the 26
th
consecutive successful flight of the
PSLV.

The launch was of high precision with an error margin of only 7 km, according to
the ISRO Chairman K. Radhakrishnan.

Analysts point out that it was an exclusive commercial launch which made India a
sought-after country for launching smaller foreign satellites.

ISRO Chairman K. Radhakrishnan said that ISRO had lined up at least three big
commercial launches of five foreign satellites in the next two years.

Antrix Corporation, the commercial arm of ISRO has increased its revenue from
Rs.1,300 crore in 2012-13 to about Rs.1,600 crore in 2013-14. The revenue is set to
increase by 15% in the next fiscal year.

III. Prime Minister Narendra Modis Address to the ISRO Employees:

Prime Minister Narendra Modi lauded Indias Space programme and pointed out
that it was an example of what the country could achieve.

Mr. Modi observed that 40 of the 67 PSLV satellites were put into orbit from 19
foreign countries stressing that it was a global endorsement of Indias
capabilities.

Indias space scientists had made the country a global leader in one of the most
complex areas of modern technology, according to Mr. Modi.

India must share the fruits of its technological advancement with those who do
not enjoy the same, according to the Prime Minister.
224

Mr. Modi called for the development of a SAARC satellite that would provide
useful applications and services to neighbouring countries and which could be
dedicated to the neighbouring countries as a gift from India.

The Prime Minister paid tribute to the vision with which the Indian Space
programme was established, emphasising how it had benefited the common
man and transformed policy planning and implementation through modern
communications, space imaging and disaster management capabilities provided
by Indian satellites.

Mr. Modi stressed on enhancing these capabilities, apart from maximising their
utilisation for governance and development.

India must expand its satellite footprint in terms of frequency and quality,
according to Mr. Modi.

Satellite technology had become an invaluable asset in disaster management.
Accurate advance warning and tracking of cyclone Phailin had saved countless lives
recently, according to Mr. Modi.

The Prime Minister wanted India to develop more advanced satellites and the
country to become the launch service provider of the world.

IV. Conclusion:

Prime Minister Modis call to ISRO to develop a SAARC (South Asian Association
for Regional Cooperation) satellite with wide ranging applications for Indias
neighbours was seen as an intention to deploy Indias space technology as part
of the countrys diplomatic outreach, according to analysts.

Observers feel that enhanced cooperation in space technology would help the
SAARC countries in jointly tackling problems of poverty, natural calamities and
poor connectivity.

Since its inception the Indian Space programme was focused on harnessing
space technology to meet the day-to-day necessities of a developing nation with
ISRO building and launching satellites for communication, earth observation and
meteorology, according to analysts.

Currently ISRO is able to cater to a smaller segment of the international launch
market and needs to launch its own heavier communication satellites abroad,

SUMMARY
I. PSLV C-23 Successfully Launched Five Foreign Satellites (Sriharikota, Andhra Pradesh, June
30, 2014):
Indian Space Research Organisations (ISRO) Polar Satellite Launch Vehicle (PSLV) C-23
successfully launched five foreign satellites into orbit from ISROs spaceport in Sriharikota.

The launch was witnessed by Prime Minister Narendra Modi.

In a 20-minute mission, PSLV C-23 smoothly launched the following satellites into a 660-km sun
synchronous orbit:
714-kg French earth observation satellite SPOT-7
14-kg German AISAT
15-kg Canadian NLS7.1 (CAN-X4) and NLS7.2 (CAN-X5)
7-kg VELOX-1 of Singapore
225

II. Significance of the Successful Launch by the PSLV C-23:

The successful launch marked the 26
th
consecutive successful flight of the PSLV.

The launch was of high precision with an error margin of only 7 km

It was an exclusive commercial launch which made India a sought-after country for launching
smaller foreign satellites.

ISRO had lined up at least three big commercial launches of five foreign satellites in the next two
years.

Antrix Corporation, the commercial arm of ISRO has increased its revenue from Rs.1,300 crore in
2012-13 to about Rs.1,600 crore in 2013-14

III. Prime Minister Narendra Modis Address to the ISRO Employees:

Lauded Indias Space programme and pointed out that it was an example of what the country
could achieve.

Observed that 40 of the 67 PSLV satellites were put into orbit from 19 foreign countries stressing
that it was a global endorsement of Indias capabilities.

Indias space scientists had made the country a global leader in one of the most complex areas of
modern technology

India must share the fruits of its technological advancement with those who do not enjoy the
same

Called for the development of a SAARC satellite that would provide useful applications and
services to neighbouring countries and which could be dedicated to the neighbouring countries
as a gift from India.

Paid tribute to the vision with which the Indian Space programme was established, emphasising
how it had benefited the common man and transformed policy planning and implementation
through modern communications, space imaging and disaster management capabilities
provided by Indian satellites.

Stressed on enhancing these capabilities, apart from maximising their utilisation for governance
and development.

India must expand its satellite footprint in terms of frequency and quality

Satellite technology had become an invaluable asset in disaster management

Wanted India to develop more advanced satellites and the country to become the launch service
provider of the world.

IV. Conclusion:

Prime Minister Modis call to ISRO to develop a SAARC (South Asian Association for Regional
Cooperation) satellite with wide ranging applications for Indias neighbours was seen as an
intention to deploy Indias space technology as part of the countrys diplomatic outreach

Enhanced cooperation in space technology would help the SAARC countries in jointly tackling
problems of poverty, natural calamities and poor connectivity.

Since its inception the Indian Space programme was focused on harnessing space technology to
meet the day-to-day necessities of a developing nation

Currently ISRO is able to cater to a smaller segment of the international launch market and needs
to launch its own heavier communication satellites abroad

226
viii.2 MACE TELESCOPE

I. MACE Gamma Ray Telescope to be Installed in Ladakh:

The Major Atmospheric Cherenkov Experiment (MACE) telescope will be the
second largest telescope in world and the largest to be operating from high
altitudes for detection of gamma ray emissions.

The largest telescope in the world is in Namibia whose diameter is 28m.

The MACE telescope has a diameter of 21m and weighs 180 tonnes.

MACE can be remotely operated from anywhere in the world and has an imaging
camera that contains 1,088 photomultiplier based pixels.

The telescope is expected to help in resolving problems in Astrophysics,
Fundamental Physics and also provide a detailed emphasis on particle
acceleration, gamma generation and spectral cut off of Pulsars.

The MACE telescope was indigenously manufactured by the Bhabha Atomic
Research Centre (BARC) and electronics Corporation of India (ECIL).

The MACE telescope was the best machine available in the world at high
altitudes to provide answers to questions on the origin of universe, according to
R.K. Sinha, Secretary DAE and Chairman Atomic Energy Commission.

The MACE telescope would be transported in 40-50 trucks to Hanle in Ladakh
and would become operational by early 2016.

227
IX. ENVIRONMENT
1. Cleaning the Ganga

I. Background:

1. River Pollution in India:

The total river length of India is approximately 45,000 km catering to 80 per cent
of the total population.

14 per cent of the river length in India is severely polluted, according to the Central
Pollution Control Board.

Ganga, Yamuna and Sabarmati are among the most polluted rivers in India.

2. The Reasons behind River Pollution:

Discharge of chemical and industrial wastewater

Discharge of wastewater from urban areas

Dumping of garbage along the riverside

Dumping of carcasses (dead cows) and half-and un-burned human remains

Flow of pesticides and insecticides from farmland

3. National River Conservation Programme (NRCP):

The National River Conservation Programme (NRCP) was started in 1995.

The NRCP covers 34 rivers and 160 towns in 20 States.

The total outlay for the NRCP is about Rs. 5,000 crore.

The Environment Ministry has found flaws in the NRCP.

The Ganga Action Plan to improve the overall health of the critically polluted
rivers did not work.

4. National Ganga River Basin Project:

In June 2011, the World Bank approved $1 billion as credit and loan to the $1.556
billion National Ganga River Basin Project to clean up the Ganga river. The project
would be implemented over eight years.

The project would support the National Ganga River Basin Authority (NGRBA) in
building capacity of its nascent operational level institutions so that they could
manage the long-term clean-up and conservation programme of the Ganga, according
to the World Bank statement.

The project would also help the NGRBA to set up a Ganga Knowledge Centre to
act as a repository of knowledge useful for the conservation of the Ganga.

228

The NGRBA would fund investments critical for reducing pollution in the Ganga
like sewage treatment plants, sewer networks and others. The municipalities in
cities would have to be responsible in managing and maintaining them in the long run.

II. Cleaning the Ganga:

1. The Ganga River:

The Ganga is one of Indias major rivers and an important source of water. It
flows through five states where 35 per cent of Indias population resides.

The Ganga flows over 2,500 km from the Gangotri glacier in the Himalayas to the
Sunderbans delta in Bangladesh

The Ganga is one of the most polluted rivers in its lower reaches.

The factors behind the pollution of the Ganga include untreated sewage and
industrial waste dumped into the waters of the river.

Reduced flow and underground water withdrawals were affecting the people who
depend on the water of Ganga.

Floods and droughts causing serious damage to crops, livestock and
infrastructure are commonly witnessed in the river basin of Ganga.

The climate change affecting the Himalayan ice cover in the form of glacial
retreat, decreasing ice mass and early snow melt would have an adverse impact
on Ganga.

2. The NDA Governments New Policy to Clean the Ganga:

The National Democratic Alliance (NDA) Government under Prime Minister
Narendra Modi is planning a policy initiative to check pollution in the Ganga.

The Government would work out a policy initiative for the rejuvenation of Ganga
as well as the cleaning up of other important rivers in the country. Efforts would be
made to make it clean and pious as it was in the past, according to the Union Minister
for Water Resources and Ganga Rejuvenation Uma Bharti.

The Ministry of Environment and Forests was in the process of drafting a new
law to ensure clean Ganga.

The new Ganga Act would include measures like making those polluting the
river pay a fine, ensuring continuous river flow, financial model to stop polluted
water entering the river, regulating hydroelectric projects and flood plain
management.

A committee under the Ministry of Environment and Forests having members
from the Ministry of Water Resources, Ministry of Urban Development, Central
Water Commission and a consortium of IITs was set up to draft the new Ganga
Act.

229

Four Ministries would work together for the cleaning of the Ganga. A committee of
secretaries of the Ministries Water Resources, Environment and Forests,
Shipping and Transport and Tourism would evaluate the entire Ganga project,
according to the Union Water Resources Minister Uma Bharti.

Ganga was the top priority of the Government and the idea was to create a model
first which could be replicated elsewhere, according to the Union Water Resources
Minister.

3. National Mission for Clean Ganga (NMCG):

To resolve complex problems associated with the Ganga, effective
inter-Ministerial, Centre-State and inter-State coordination were required,
according to a statement issued by the National Mission for Clean Ganga (NMCG)
under the Ministry of Environment and Forests.

On July 07, 2014, the Government launched a National Dialogue on the Ganga
involving environmentalists, scientists, members of NGOs, technocrats, saints
and public representatives.

The aim of the National Dialogue on the Ganga was to invite suggestions from as
many people as possible to ensure free flow in the river, which is the lifeline to 40
per cent of Indias population.

The Government has also decided to develop the Ganga as a tourism
destination, means of transport, fisheries development and power generation.

In the Union Budget 2014-15, the Finance Minister Arun Jaitley announced an
integrated programme for conservation of the Ganga named Namami Gange
(Obeisance to Ganga) with an outlay of Rs.2,037 crore.

III. Conclusion:

Analysts suggest a basin-scale approach would help in managing the water
resources better as the Ganga is a complex trans-boundary basin.

All the countries sharing the Ganga India, Nepal and Bangladesh need to
coordinate so that the interests of both upstream and downstream users are
safeguarded, according to analysts.

For cleaning the urban waste dumped in the Ganga, low cost simple ecological
sanitation and reuse systems could be used to make waste water treatment
feasible for agricultural use, according to analysts.

Water pollution in the Ganga due to domestic, industrial and agricultural
effluents is direct threat to the riverine ecosystems and to the people who
depend on the water.

There is an urgent need to adopt innovative methods for maintaining
environmental flows and the quality of water during those critical periods and
the procedures for implementing these methods have to be investigated,

230

For successfully implementing the steps taken by the Government to clean the
Ganga would require partnerships with various stakeholders including the
private sector and the civil society groups, according to analysts.

Analysts suggest that coordination among India, Nepal and Bangladesh is crucial
for the economic revitalisation of the Ganga.

SUMMARY
I. Background:

1. River Pollution in India:

The total river length of India is approximately 45,000 km catering to 80 per cent of the total
population.

14 per cent of the river length in India is severely polluted

Ganga, Yamuna and Sabarmati are among the most polluted rivers in India.

2. The Reasons behind River Pollution:

Discharge of chemical and industrial wastewater

Discharge of wastewater from urban areas

Dumping of garbage along the riverside

Dumping of carcasses (dead cows) and half-and un-burned human remains

Flow of pesticides and insecticides from farmland

II. Cleaning the Ganga:

1. The Ganga River:

The Ganga is one of Indias major rivers and an important source of water. It flows through five
states where 35 per cent of Indias population resides.

The Ganga flows over 2,500 km from the Gangotri glacier in the Himalayas to the Sunderbans
delta in Bangladesh

The Ganga is one of the most polluted rivers in its lower reaches.

The factors behind the pollution of the Ganga include untreated sewage and industrial waste
dumped into the waters of the river.

Reduced flow and underground water withdrawals were affecting the people who depend on the
water of Ganga.

Floods and droughts causing serious damage to crops, livestock and infrastructure are
commonly witnessed in the river basin of Ganga.

The climate change affecting the Himalayan ice cover in the form of glacial retreat, decreasing ice
mass and early snow melt would have an adverse impact on Ganga.

2. The NDA Governments New Policy to Clean the Ganga:

The National Democratic Alliance (NDA) Government under Prime Minister Narendra Modi is
planning a policy initiative to check pollution in the Ganga.

The Government would work out a policy initiative for the rejuvenation of Ganga as well as the
cleaning up of other important rivers in the country
231

The Ministry of Environment and Forests was in the process of drafting a new law to ensure clean
Ganga.

The new Ganga Act would include measures like making those polluting the river pay a fine,
ensuring continuous river flow, financial model to stop polluted water entering the river,
regulating hydroelectric projects and flood plain management.

A committee under the Ministry of Environment and Forests having members from the Ministry of
Water Resources, Ministry of Urban Development, Central Water Commission and a consortium
of IITs was set up to draft the new Ganga Act.

A committee of secretaries of the Ministries Water Resources, Environment and Forests,
Shipping and Transport and Tourism would evaluate the entire Ganga project.

Ganga was the top priority of the Government and the idea was to create a model first which
could be replicated elsewhere

3. National Mission for Clean Ganga (NMCG):

To resolve complex problems associated with the Ganga, effective inter-Ministerial, Centre-State
and inter-State coordination were required

On July 07, 2014, the Government launched a National Dialogue on the Ganga involving
environmentalists, scientists, members of NGOs, technocrats, saints and public representatives.

The aim of the National Dialogue on the Ganga was to invite suggestions from as many people as
possible to ensure free flow in the river, which is the lifeline to 40 per cent of Indias population.

The Government has also decided to develop the Ganga as a tourism destination, means of
transport, fisheries development and power generation.

In the Union Budget 2014-15, the Finance Minister Arun Jaitley announced an integrated
programme for conservation of the Ganga named Namami Gange (Obeisance to Ganga) with
an outlay of Rs.2,037 crore.

III. Conclusion:

A basin-scale approach would help in managing the water resources better as the Ganga is a
complex trans-boundary basin.

All the countries sharing the Ganga India, Nepal and Bangladesh need to coordinate so that
the interests of both upstream and downstream users are safeguarded

For cleaning the urban waste dumped in the Ganga, low cost simple ecological sanitation and
reuse systems could be used to make waste water treatment feasible for agricultural use

Water pollution in the Ganga due to domestic, industrial and agricultural effluents is direct threat
to the riverine ecosystems and to the people who depend on the water.

There is an urgent need to adopt innovative methods for maintaining environmental flows and
the quality of water during those critical periods and the procedures for implementing these
methods have to be investigated

For successfully implementing the steps taken by the Government to clean the Ganga would
require partnerships with various stakeholders including the private sector and the civil society
groups

Coordination among India, Nepal and Bangladesh is crucial for the economic revitalisation of the
Ganga.

232
ix.2. El Nino & Delayed Monsoon

I. El Nino:

1. Introduction:

The El Nino (Spanish for Christ Child) is a destructive weather system caused
by the warming of ocean currents in the east Pacific.

It brings about climatic changes in south-eastern Africa, the west Pacific, the
southern United States, the north-eastern parts of South America, Australia and
South Asia.

According to meteorologists this weather phenomenon, occurs in cycles of four or
five years and has a warm and cold phase. El Nino peaks by late October or
November and then starts to cool, it is then called La Nina (Spanish for The Girl).

El Nino results in the reversal of wind flows. Instead of blowing from South America
towards Asia, across the Pacific, El Nino results in the reverse flow from Asia
towards South America. Therefore, instead of bringing in the rains to Asia, it
takes away moist air and dumps unwanted rains across the Pacific islands,
causing floods.

The worst El Nino in recent times occurred in 1982-83 when it claimed over 2,000
lives and inflicted damage estimated at $13 billion.

2. Causes of El Nino:

El Nino is the oceanic and atmospheric phenomenon in the Pacific Ocean, during
which warm ocean conditions appear along the coast of Ecuador and Peru,
causing climatic disturbances of varying severity around the world.

El Nino is a vast pool of abnormally warm water that is brought about from time
to time by naturally occurring oscillations in atmospheric pressure and ocean
movements in the equatorial Pacific.

The warmer ocean pumps more energy and moisture into the atmosphere, and
this, in turn, alters wind and rainfall patterns around the world. The nature and
severity of the resulting disturbances are directly related to the warmness of the
equatorial waters, according to experts.

El Nino occurs every 3-7 years, according to some scientists. But in the 1990s the
warm El Nino waters have been in place most of the time. Scientists suspect that this is
related to global warming.

Experts feel that the breaking up of the ozone layer by the chlorofluorocarbons
(CFCs), may be directly responsible for the emergence of El Nino as a menace.

3. Impact of El Nino on World Climate:

According to meteorologists, El Nino is the second largest driver of global weather
pattern, second only to the warmings and coolings.

El Nino causes, floods, droughts, killer cyclones and forest fires around the
world. The forest fires in Indonesia in September 1997 were also blamed to be caused
by the El Nino.
233

The El Nino affects the global climate for more than a year as fluctuations in air
pressure and wind patterns in the southern Pacific accompanies El Nino.

Due to the reversal of wind flows unwanted heavy rains occur in South America
and droughts occur in Southeast Asia, India and southern Africa.

El Nino may at times trigger landslides. Landslides and debris flows could happen in
areas where intense rainfall occurs.

The worst damage could be disruption to fish migrations and damage to coral
reefs. Thus, affecting those dependent on marine ecosystems for their
livelihood.

According to scientists the most common effect seen in an El Nino year is a marked
decrease in reproduction among birds, followed by a return to normality the
following year.

4. El Nino Effect on India:
According to Indian Meteorological Department (IMD), from 1901 to 1997, there have
been 17 El Nino years and India had deficient monsoon during only nine of those
17 years. Eight El Nino years had normal monsoon.

El Nino does not have a one-to-one relationship with the Indian Monsoon rainfall.
There are other countervailing factors, according to IMD.

According to experts all the four serious droughts that have occurred in India over
the last 120 years have been El Nino years. Out of the 14 drought years in India, 10
have been El Nino years.

Due to lack of adequate data, Indian scientists are not sure whether the warm
currents cause a shift in the monsoon pattern or vice versa.

5. Conclusion:
Asian countries in the Western Pacific - subject to unusually dry conditions
during El Nino- might get heavy rains under La Nina.

With consequences of strong El Ninos being staggering, scientists have over the
years tried to understand the phenomenon clearly and decipher exactly how it
interacts with the global weather.

With the sudden increase in temperatures across the world, meteorologists feel
that 2014 would be a very high El Nino year.

El Nino and La Nina were still among the major challenges to forecast, according
to William B. Gail, chief technology officer of Global Weather and President of the
American Meteorological Society.

Experts feel that the long term solution would be to drastically reduce the global
carbon emissions.

II. Delayed Monsoon in India:

On July 1, 2014, the Indian Meteorological Department (IMD) said that monsoon
said that the delayed monsoon was set to revive by the end of the first week of
July 2014.
234

There were concerns that India had recorded a 43 per cent deficit in rainfall in
June 2014.

The IMD said that the impact of El Nino would not be severe on the monsoon in
India.

It was the cyclone Nanauk that stopped the monsoon from coming into the
mainland, after it had registered in Andaman and Kerala, according to the IMD.

The El Nino factor was said to be associated with a decline in monsoon, and not
direct sign of low rains, according to the IMD.

The IMD dismissed concerns that India was set to experience another drought
year and stressed that a late monsoon did not necessarily signal a drought year.

Observation centres around the country had predicted that the rains in the
month of July and August would make up for the loss in June, according to the
IMD.
SUMMARY
I. El Nino:

1.Introduction:

The El Nino (Spanish for Christ Child) is a destructive weather system caused by the warming
of ocean currents in the east Pacific.

It brings about climatic changes in south-eastern Africa, the west Pacific, the southern United
States, the north-eastern parts of South America, Australia and South Asia.

This weather phenomenon, occurs in cycles of four or five years and has a warm and cold phase.

El Nino peaks by late October or November and then starts to cool, it is then called La Nina
(Spanish for The Girl).

El Nino results in the reversal of wind flows. El Nino results in the reverse flow from Asia towards
South America. Instead of bringing in the rains to Asia, it takes away moist air and dumps
unwanted rains across the Pacific islands, causing floods.

The worst El Nino in recent times occurred in 1982-83 when it claimed over 2,000 lives and
inflicted damage estimated at $13 billion.

2. Causes of El Nino:

El Nino is the oceanic and atmospheric phenomenon in the Pacific Ocean, during which warm
ocean conditions appear along the coast of Ecuador and Peru

El Nino is a vast pool of abnormally warm water that is brought about from time to time by
naturally occurring oscillations in atmospheric pressure and ocean movements in the equatorial
Pacific.

The warmer ocean pumps more energy and moisture into the atmosphere, and this, in turn, alters
wind and rainfall patterns around the world

El Nino occurs every 3-7 years

Breaking up of the ozone layer by the chlorofluorocarbons (CFCs), may be directly responsible
for the emergence of El Nino as a menace.

3. Impact of El Nino on World Climate:
El Nino is the second largest driver of global weather pattern, second only to the warmings and
coolings.
235

El Nino causes, floods, droughts, killer cyclones and forest fires around the world

The El Nino affects the global climate for more than a year as fluctuations in air pressure and
wind patterns in the southern Pacific accompanies El Nino.

Due to the reversal of wind flows unwanted heavy rains occur in South America and droughts
occur in Southeast Asia, India and southern Africa.

El Nino may at times trigger landslides

The worst damage could be disruption to fish migrations and damage to coral reefs. Thus,
affecting those dependent on marine ecosystems for their livelihood.

Most common effect seen in an El Nino year is a marked decrease in reproduction among birds,
followed by a return to normality the following year.

4. El Nino Effect on India:

From 1901 to 1997, there have been 17 El Nino years and India had deficient monsoon during
only nine of those 17 years

El Nino does not have a one-to-one relationship with the Indian Monsoon rainfall. There are other
countervailing factors

All the four serious droughts that have occurred in India over the last 120 years have been El
Nino years

Due to lack of adequate data, Indian scientists are not sure whether the warm currents cause a
shift in the monsoon pattern or vice versa.

5. Conclusion:
Asian countries in the Western Pacific - subject to unusually dry conditions during El Nino- might
get heavy rains under La Nina.

With consequences of strong El Ninos being staggering, scientists have over the years tried to
understand the phenomenon clearly and decipher exactly how it interacts with the global
weather.

With the sudden increase in temperatures across the world, meteorologists feel that 2014 would
be a very high El Nino year.

El Nino and La Nina were still among the major challenges to forecast

Long term solution would be to drastically reduce the global carbon emissions.

II. Delayed Monsoon in India:

Indian Meteorological Department (IMD) said that monsoon said that the delayed monsoon was
set to revive by the end of the first week of July 2014.

There were concerns that India had recorded a 43 per cent deficit in rainfall in June 2014.

The IMD said that the impact of El Nino would not be severe on the monsoon in India.

It was the cyclone Nanauk that stopped the monsoon from coming into the mainland, after it had
registered in Andaman and Kerala

The El Nino factor was said to be associated with a decline in monsoon, and not direct sign of low
rains

The IMD dismissed concerns that India was set to experience another drought year and stressed
that a late monsoon did not necessarily signal a drought year.

Observation centres around the country had predicted that the rains in the month of July and
August would make up for the loss in June
236
ix.3. LARGE DAMS

I. Introduction:

1. Large Dams - Formidable Challenge for the Environmental and Safety Agencies: India
has over 3,280 large dams and is currently building 630 new dams. This has proved to be a
formidable challenge for the environmental and safety agencies.

2. Cost of Construction of Dams: Up to 1980 about 15 per cent of Indias expenditure was
spent on the construction of dams.

3. Protests Against Large Dams: Protests against the construction of large dams (with
heights above 50 metres) began when the dams failed to serve the purpose they were made
for. The other reasons include environmental and ecological hazards, displacement of people,
etc.

II. Safety of Dams:

1. Debate on Safety of Dams: Currently there is a global debate going on the safety of dams.
The focus has shifted from design and construction of new dams to the restoration of the
structural and operational safety of existing dams according to the 1991 Congress of the
International Commission on large Dams.

2. Factors Crucial to the Safety of Dams: According to experts the factors crucial to the
safety of dams are as follows:

Assessment of potential vulnerability of dam to seismic events.

Assessment of probable maximum floods estimated from past hydrological data and the
capacity of the reservoir to withstand the flood.

The design and operation of spillways and gates of the dams.

Technological health of instrumentation attached to the dams which help in constructing
warning signals.

Assessment rate at which the sediments fill the reservoir.

Proper monitoring of leakage, erosion, seepage etc.

III. Dam Safety in India:

1. Dam Safety Organisation: Formed in 1979 with the aim of helping the State Governments
to locate causes of potential disaster and to recommend suitable remedial measures. This
Organisation was set up within the Central Water Commission (CWC).

2. State Dam Safety Cells: As most of the dams in India are owned by State bodies such as
electricity boards and irrigation departments, the States wanted to have their separate dam
safety cells. All the States do not have safety cells and this lapse has serious implications for
the safety aspect.

237

3. Koyna Dam Earthquake: The worlds most powerful dam induced earthquake was
triggered by the 103 metre high Koyna dam in Maharashtra in 1967. The earthquake killed
about 180 people and injured many others.

4. Tehri Dam: Lies in a seismic gap, an area where there is massive build-up of tension
between the northwards thrusting Indian tectonic plate and the Eurasian plate. This tension, it
is feared may release a massive earthquake of the magnitude of 8 plus on the Richter Scale.
The dam is designed to withstand an earthquake of the magnitude of 7 on the Richter Scale.

5. Hirakud Dam: Located in Orissa, was originally designed to withstand a Peak Flood Inflow
(PFI) of 42,474 cumecs but a 1974 review shows that the dam expects a PFI of 78,220
cumecs.

6. World Bank Memo: According to a World Bank Memo 25 dams in India are unsafe. The
worst among the dams listed include the Hirakud dam in Orissa and the Gandhi Sagar Project
in M.P.

IV. Arguments in Favour of Building Large Dams:

In December 1998 (Colombo), the World Commission on Dams (WCD) concluded the first
public hearing on the experience of building large dams in South Asia. The arguments in
favour of building large dams were as follows:

1. Essential for Power and Water Needs: Large dams are essential for meeting the
escalating power and water needs and even if there are negative consequences, these could
be mitigated.

2. Benefits of Hydel Power- Clean and Cost Effective: Hydel power is clean and
cost-effective than nuclear or thermal power. Therefore large dams are essential to harness
hydel power to reap the various benefits.

3. Solve Water Crisis: Proponents of large dams argue that safe drinking water and irrigation
are the biggest problems in many developing countries. Large dams would eventually solve
these problems. Big dams can solve Indias water problems, according to the proponents of
big dams.

4. Save Fuel: According to a World Bank study of 50 dams, an installed capacity of 39,000
MW of electricity, equivalent to 51 million tonnes of fuel was created by the dams. The dams
also extended irrigation to 1.8 million hectares and improved irrigation on another 1.8 million
hectares.

5. Flood Control: Large dams can also be used to control floods according to the proponents
of large dams.

V. Arguments Against Building of Large Dams:

1. Environmental Costs: Large dams pose a threat to the environment and the mitigatory
environmental measures such as compensatory afforestation were inadequate and often only
cosmetic.

238

2. Social Costs Displacement of Large Number of People: Large dams result in the
displacement of large number of people. According to a study by the Indian Institute of Public
Administration, the average number of people displaced by a large dam is 44,182. On this
basis the critics of large dams argue that thirty three million people may have displaced in the
last fifty years in India.

3. Higher Costs than Benefits: Most of the larger dams turn out to be more costly than the
benefits they accrue. The Sardar Sarovar Dam is cited as an example. The Bagri Dam near
Jabalpur cost ten times more than was budgeted and submerged three times more land than
the engineers had expected, according to critics.

4. Risks of Earthquakes: Experts feel that certain dams may induce earthquakes; the Koyna
dam earthquake of 1967 is cited as an example. Dams themselves may be vulnerable to
earthquakes arising from the acceleration in the sub-surface movements in the fault zones.
The Tehri Dam is located in a high-risk earthquake zone.

5. Large Dams Weaken Oceans: Experts point out that the large dams in operation around
the world could affect the food web structure and bio-geo-chemical cycling of materials in
coastal seas. Researchers have found that large dams are trapping vital nutrients suspended
in the river-water and preventing them from reaching the oceans. They have warned that this
may lead to the disappearance of fish and increase in toxic algae in oceans. Black Sea is cited
as an example.

VI. Conclusion:

1. Alternatives to Large Dams Smaller Dams and Run-of-the-River Projects which
would Minimise or Eliminate Submergence or Displacement: Experts feel that the
alternatives to large dams should include the viability of smaller dams, run-of-the-river projects
which would minimise or even eliminate submergence or displacement, more efficient use of
existing power and water resources and non-conventional energy resources.

2. Economic Feasibility of Large Dams should be taken into Account before taking the
Projects: Large dams were seen as icons of development in the fifties according to experts.
Presently it is argued that large dams cause damage to river systems and have short lifespan
because of silting. Cost-benefit studies show that dams are useful only in those places where
waterflows are marked by strong seasonal variations. Hence the economic feasibility of large
dams should be taken into account before taking up the projects.

3. Acceptance and Implementation of Views: Finally, experts feel that alternatives and
innovations will only be possible in an atmosphere where conflicting views are accepted and
accommodated. The Government needs to articulate a wise and widely acceptable policy
relating to dams which have to be built to meet the growing demands for water for agriculture
and for expansion of hydel power. The policy should consider the environmental and social
costs of building dams.

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ix.4. NARMADA VALLEY PROJECT

I. Introduction:

1. Narmada Valley Development Plan: The SSP is part of a larger Narmada Valley
Development Plan envisaging 30 big, 135 medium and 3000 small dams on the Narmada river
that rises from Sabarkanta in M.P. and flows into the Arabian Sea Via Gujarat. At the Centre
will stand the Sardar Sarovar Dam, as tall as a 45 storey building. Together the dams would
generate 4,000 MW of power.

2. Sardar Sarovar Dam:

Involves Four States: The Sardar Sarovar Project (SSP) to build the Narmada dam
involves four States- Gujarat, Madhya Pradesh, Maharashtra and Rajasthan. The dam
is being built across the Narmada river at Kevadia village in south Gujarat, about 130
km from Baroda.

1,250 Metre-Long Dam: The Sardar Sarovar Dam is 1,250 metre-long and has a canal
network of 80,000 km covering 8,200 villages across the four States.

Estimated Cost: The estimated cost of the inter-State multi-purpose Narmada dam is
over Rs.39,000 crore.

World's Largest Irrigation Canal: When completed the Sardar Sarovar Project Canal
will be 532 km in length - a world record. The SSP canal can carry 40,000 cusecs of
water making it the largest irrigation canal in the world.

3. Benefits of the SSP:

Irrigation: 18 lakh hectares of land spread over 12 districts, 62 taluks and 3,393
villages (75 per cent of which is considered drought-prone) in Gujarat; 73,000 hectares
in the arid areas of Barmer and Jalore districts of Rajasthan.

Drinking Water: Drinking water facilities to 8,215 villages and 135 urban centres in
Gujarat.

Power Generation: 1,450 Mega Watts (MW) were estimated to be generated of which
Madhya Pradesh will get 57 per cent, Maharashtra 27 per cent and Gujarat 16 per cent.

Protection Against Advancement of Deserts: The SSP is also expected to provide
protection against the advancement of the Little Rann of Kutch and the Rajasthan
deserts.

Help in Controlling Floods: When the height of the Sardar Sarovar Dam is raised to
138 metres it would help in controlling floods.

Boost to Fish Production in Gujarat: Analysts point out that the SSP could also
provide boost to fish production in Gujarat.

240

4. Arguments Against the SSP:

Displacement and Submergence: The dam will displace 3,20,000 people and will
submerge 40,000 hectares of land, according to critics.

Resettlement Policy in Disarray: The Government is unable to find land to rehabilitate
over 35,000 families.

Benefits Exaggerated: Critics feel that the benefits of the dam have been
exaggerated.

5. Hurdles to the Building of the Dam:

The Narmada dam was conceived in 1961 but had to wait until the Narmada Waters Dispute
Tribunal (NWDT) gave its award in 1979. The construction of the dam has been hindered due
to the following factors:

A. Funds:

Cost of the Project: In 1988 the Planning Commission accorded investment approval
of Rs. 6,406 crores to the Narmada dam project.

World Bank Aid: Initially the SSP was aided by the World bank which sanctioned a
loan of $450 million. Of this loan India utilised a loan of $280 million and in 1993 it asked
the World Bank to cancel the remaining part of the loan.

Cancellation of World Bank Aid: Analysts feel that the reason behind the cancellation
of the loan was that India was coming under increased pressure from the World Bank to
speed up the rehabilitation programmes.

B. Protests from Environmentalists:

NBA: The SSP is marred by protests from environmentalists. The Narmada Bachao
Andolan (NBA) is the major opponent of the project. The NBA, which is led by Ms.
Medha Patkar, is opposed to destructive development projects which could displace
thousands of people, mostly tribals.

NBA Petition in Supreme Court: The NBA drew the attention of the Supreme Court to
the tardy progress in resettlement and rehabilitation (R & R) under a package offered to
displaced families. It was on this petition that the Supreme Court stayed further
construction in 1995.

C. Controversy Over the Height of the Dam:

a. Importance of the Height of the Dam: The 1979 Tribunal held that the height of the dam
should be 138m. Experts feel that this is the right height for the following benefits:
Irrigating 18 lakh hectares of land.
Generating 1,450 MW of power.
Supplying drinking water to 135 towns and 8,000 villages.

241

b. Displacement of People: If the height of the dam is raised to 138m it will also displace
40,850 families, the majority of whom belong to Madhya Pradesh.

c. Submergence: The submergence zone of the SSP can be divided into two areas according
to experts:

Tribal Area: A fully tribal, hilly area covering the initial reach of about 105 villages, with
mainly subsistence economy. It includes 19 villages of Gujarat, 53 villages of Madhya
Pradesh and 33 villages of Maharashtra.

Mixed Population Area: A Mixed population area in the plains of Nimad, which has a
well-developed economy and which is connected to the mainstream. It includes about
140 villages in Madhya Pradesh.

D. Resettlement and Rehabilitation of the Oustees:

Displacement: The SSP will lead to the displacement of 35,000 families in Madhya
Pradesh, 3,100 in Maharashtra and 4,600 in Gujarat, according to a report.

NWDT Condition: According to the Narmada Water Disputes Tribunal (NWDT) award,
land for oustees should be identified one year before submergence and resettlement
should be completed six months before the submergence.

II. Background:

1. 1961: The Gujarat Government gave approval for Stage I of the Narmada Valley Project

2. 1964: A high-level committee of engineers, headed by A.N. Khosla, the then Governor of Orissa, was formed to
draw up a master plan for the optimum and integrated development of the Narmada water resources.

3. 1965: The Khosla Committee submitted its report to the Centre. However, the report was not implement owing
to disagreement among the States concerned.

4. 1968: Gujarat complained to the Centre, under the Inter-State Water Disputes Act, against Madhya Pradesh
and Maharashtra, on the use of Narmada waters. The Centre constituted the Narmada Water Disputes Tribunal
(NWDS) headed by Justice V. Ramaswamy, retired judge of the Supreme Court, and referred the dispute to it.
The issues raised by Rajasthan were also referred to the Tribunal

5. 1979: The Tribunal announced its final Award after hearing the States and the Centre:

a. Height of the SSP Dam: 455ft (138 metres) at full reservoir level. The Award provided that no submergence of
any area would take place unless the displaced people were rehabilitated.

b. Allocation of Water: Madhya Pradesh 18.25 Million Acre Feet (MAF); Gujarat 9.00 MAF; Rajasthan 0.50
MAF; and Maharashtra 0.25 MAF.

c. NCA: An inter-State administrative authority, the Narmada Control Authority (NCA) was created to ensure
compliance with and implementation of the decisions and directions of the Tribunal.

d. Review Committee: The Tribunal also directed the constitution of a Review Committee consisting of the Union
Minister for Irrigation (now Water Resources) as Chairperson and the Chief Ministers of Gujarat, Madhya
Pradesh, Maharashtra and Rajasthan as members.

6. 1987: Environmental clearance (subject to certain conditions) to the SSP was accorded by the Union Ministry
of Environment and Forests.

242

7. 1987: Construction of the dam started.

8. 1988: The Planning Commission approved the investment of an estimated Rs.6,406 crores, with a direction to
comply with the conditions laid down in the environment clearance.

9. 1988 - NBA Against the Construction of the Dam: The NBA took a stance against the construction of the
dam. Dam oustees from the three States, along with NBA activists, launched a non-cooperation movement
against survey and construction work.

10. 1992: The Morse Commission set up by the World Bank indicts the Bank on many counts.

11. 1993: World Bank withdraws loan. The Centre constitutes a review panel for the Sardar Sarovar Project.

12. 1993: The Ministry of Water Resources constituted a five-member group (FMG) headed by Dr. Jayant Patil,
Member Planning Commission, to hold discussions with the Narmada Bachao Andolan (NBA) on issues relating
to the SSP.

13. 1995 - Construction of Spillway Halted: The Supreme Court asked the FMG to submit a detailed report on
the issues of height, hydrology, R&R and environmental matters. In April, 1995, the FMG submitted its report. the
construction of spillway on the Sardar Sarovar Project halted.

14. 1999: Supreme Court Judgement:

a. Permission to Re-Start Construction: On February 18, 1999, the Supreme Court gave the Sardar Sarovar
Narmada Nigam Ltd. (SSNNL) permission to re-start construction on the dam and raise the height from 80.3
metres to 85 metres.

b. Rehabilitation of Oustees: The Supreme Court asked Justice P.D. Desai Committee to report to the Court
whether the rehabilitation of the oustees resettled so far has been satisfactory. The P.D. Desai Committee
submitted its report to the Court in April 1999. The final hearing of the case started in the Supreme Court in May
1999.

c. Minimum Height Required: Depending on the Justice Desai Report the Supreme Court could permit further
construction upto 90 metres. But the SSNNL acknowledges that the dam will only be able to serve any purpose in
terms of irrigation water or electricity once it crosses 110 metres. Therefore even at 90 metres, the dam will not be
functional.

15. 2000: Supreme Court Judgement on NBA Petition:

NBA Petition: The NBA called the SSP an environmental disaster and pointed out that the project would
uproot nearly half a million people. It would not benefit those who are being projected as beneficiaries.

Gujarat Governments Argument: It was emphasised that the SSP would be a lifeline to nearly 1.75
crore people in the severely drought-prone areas of Saurashtra, Kutch and north Gujarat. It was also
pointed out that the project was a key to future development of the State.

Madhya Pradeshs Stand: It was pointed out that it was unfair for the State because even though the
project doesnt really benefit it, most of the rehabilitation falls on its shoulders. They have no land to offer
to the oustees.

The Supreme Court Verdict- Nod for Construction of the Dam: On October 18, 2000, the Supreme
Court gave nod for the construction of the Sardar Sarovar dam on the Narmada river immediately upto a
height of 90 metres and thereafter up to 138 metres in stages on getting proper sanction from the
authorities concerned.

16. Re-Construction of the Dam: On October 31, 2000, construction work resumed at the site of the Sardar
Sarovar Project after a gap of four years. The Rs.18,000 crore project termed as the lifeline of the drought prone
Gujarat was bogged down by inter-State disputes relief, legal challenges and rehabilitation packages. The
Supreme Court judgement on October 18, gave a fresh lease of life to the SSP.

17. Supreme Court Judgement of 2005: The Supreme Court said that there is no difference between those
affected by temporary submergence and permanent submergence.

243

18. NCA Permits Raising the Height of the Dam to 121.92 Metres: On March 8, 2006, the Narmada Control
Authority (NCA) decided to accord permission to raise the height of the Sardar Sarovar Dam in the spillway
portion from elevation level 110.64 metre to 121.92 metre as per the approved design, after taking into account
the recommendations of its sub groups on resettlement and rehabilitation and environment and the assurances of
all the party States.

19. NBA Activities Go on Hunger Strike to Protest Against Raising the Height of the Sardar Sarovar Dam:
On March 29, 2006, Medha Patkar, the leader of the Narmada Bachao Andolan (NBA) and two others went on an
indefinite fast to protest against the raising of the height of the Narmada dam in Gujarat. According to the NBA, the
decision to increase the height of the dam would render 35,000 families homeless.

20. Supreme Court Observations on the Dispute:

Dispute Should be Resolved in Accordance with Court Judgements and Narmada Tribunal
Award: On April 18, 2006 a three-judge Bench of the Supreme Court said that the Centre, the State
Governments and the Prime Minister could resolve the dispute over raising the height of the Narmada
Dam from 110 to 121.92 metres in a cordial atmosphere in accordance with the Court judgements
delivered in 2000 and 2005 and the Narmada Tribunal Award.

Construction of the Dam to be Stopped If Relief and Rehabilitation Is Inadequate: The Supreme
Court warned the States that it would have no option except stopping the construction of the dam if the
relief and rehabilitation measures for the oustees were found to inadequate or were not in accordance
with its two judgements and the Tribunal award.

Essential to Strike a Balance Between Development and Rehabilitation: The Supreme Court told
the Counsel that parties should stop the agitational path in such matters, otherwise it would be a threat to
the unity and integrity of the country. It was also stressed that it was essential to strike a balance between
development and rehabilitation when such a vast project was being carried out and a large number of
people were affected.

Supreme Court Declines to Stop Construction of the Dam: On July 10, 2006, the Supreme Court
observed that it found no reason to suspend the construction of the dam at this stage, particularly when it
is pointed out that non-construction of the spillway might endanger the safety of the dam. The Supreme
Court said that in view of the submissions made by the Centre as well as the Gujarat Government that
construction was already stopped, there was no need to issue fresh directions to stop the work.

21. The Height of the Sardar Sarovar Dam Raised to the Designated Level of 121.92 Metres: In the last
week of December 2006, the Sardar Sarovar Dam reached its designated height of 121.92 metres. On January
19, 2007, the Gujarat Chief Minister Narendra Modi dedicated to the nation the 1,450 MW hydroelectric project at
the dam site in Narmada district.

22. Gujarat's Stand:

Wants Centre to Exempt Interest on Loans for the Sardar Sarovar Dam: The Chief Minister of
Gujarat Narendra Modi wanted the Centre to exempt the interest component on the loans for the Sardar
Sarovar Dam for the welfare of the tribals.

Centre Should Sanction a Special Industrial Package for Rehabilitation of the Project-Affected
People: Mr. Modi wanted the Centre to sanction a special industrial package at the Narmada basin for
the rehabilitation of the project-affected people.

Wants the Dam Height to be Raised to the Final 138 Metres: Gujarat wants the other States to arrive
at a consensus to raise the Sardar Sarovar Dam to the final height of 138 metres. Raising the height to
138 metres would result in the power house running to its full capacity and the State getting the benefit of
the flood control measures envisaged by the dam. However, the rehabilitation of another 15,000 families
in additional 15 villages has to be undertaken.

23. Madhya Pradesh's Stand:

State Government Taking All Necessary Steps for the Rehabilitation of the Project-Affected
People: The Madhya Pradesh Chief Minister Shivraj Singh Chauhan said that his Government was
taking all necessary steps for the rehabilitation of the project-affected people.

244

Another 14,000 Families would be Rehabilitated to take the Height of the Dam to Full Reservoir
Level of 138 Metres: He assured the people of Gujarat that his Government would speedily complete the
rehabilitation of another 14,000 families required for taking the height to the full reservoir level of 138
metres to ensure timely completion of the project.

III. Narmada Control Authority (NCA) gave Approval to Raise the Height of
the Sardar Sarovar Dam to 138.72 Metres (June 12, 2104):

On June 12, the Narmada Control Authority (NCA) gave its approval to Gujarat to
raise the height of the Narmada dam or Sadar Sarovar dam to the full reservoir
level of 138.72 metres from the present 121.92 metres.

The decision was taken at an emergency meeting of the NCA chaired by Water
Resources Secretary Alok Rawat and attended by the Ministries concerned and
the States of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

After talking to all parties concerned, it had been decided to allow the height of
the Narmada dam to be raised, according to the Union Water Resources Minister
Uma Bharti.

All displaced families would be fully rehabilitated, according to the Union Water
Resources Minister.

Official figures point out that of the 46,749 project-affected families from
Narmada dam, 46,498 have been resettled. Of these 4,765 have been resettled in
Gujarat and 3,976 families displaced in Maharashtra have been resettled in Gujarat and
Maharashtra. Of the 37,757 families displaced in Madhya Pradesh, 32, 233 have been
settled in Madhya Pradesh and 5,524 in Gujarat.

IV. Benefits of Raising the Height of the Sardar Sarovar Dam:

Analysts point out that the increase in the height of the Sardar Sarovar or Narmada
dam would benefit Gujarat with increased water availability for irrigation,
drinking and power generation.

Gujarat would get the largest share for drinking water and irrigation, while
Madhya Pradesh and Maharashtra benefit from the power generation.

With increase in height, the water storage capacity of the Narmada dam would be
enhanced by four times, from 1 Million Acre Feet (MAC) to 4 MAC which is seen
as a big insurance against drought, according to the Managing Director of the Sardar
Sarovar Narmada Nigam Ltd, Jagdip Narayan Singh.

Under the Narmada Water Disputes Tribunals (NWDT) award, Gujarat gets 9 MAF
of water from Narmada, of which 7.5, 1 and 0.22 MAF are for irrigation, drinking
and industry respectively.

The increased height of the Narmada dam would benefit the pharmaceutical and
textile industries which are the mainstay of industrial activity in Gujarat and are
heavily dependent on water.

The farmers of drought-prone Gujarat also stand to benefit from the increased
height of the Narmada dam as it would lead to improved irrigation capability of
the dam, according to agriculturists in Gujarat.

245

V. Opposition Against Increasing the Height of the Sardar Sarovar Dam:

The leader of the Narmada Bachao Andolan (NBC) Medha Patkar criticised the
decision to raise the height of the Sardar Sarovar dam as political and pointed out that
already there were over two lakh displaced people waiting to be rehabilitated even
at the current height of the dam.

The NBA leader Medha Patkar said that the NBA wanted the dam to be halted at the
present height to prevent further displacement.

Even now 2.5 lakh displaced people need to be resettled and rehabilitated as per
the Narmada Water Disputes Tribunal (NWDT) award and various orders of the
Supreme Court, according to the NBA leader Medha Patkar.

The CPI (M) urged the government to reverse the decision to raise the height of
the Sardar Sarovar or Narmada dam and ensure proper rehabilitation and
resettlement of the families to be displaced.

VI. Conclusion:

1. Sardar Sarovar Dam a Milestone in India's Efforts to Provide a Better Life: Analysts
point out that hydro-power is an excellent means to provide clean energy by cutting
Greenhouse Gases (GHGs). The Narmada Project is one of the few projects in the world
where the water of the same river is being used over and over again to generate power. In view
of people's future needs, the Sardar Sarovar Dam is seen as a milestone in India's efforts to
provide a better life.

2. Model for Development with a Human Face: Analysts feel that the SSP should be made a
model for development with a human face. It must not be allowed to be bogged down into an
endless confrontation between the Government and the people. The advantage of a big dam is
its huge irrigation and power generation potential which can be beneficial to millions of people.

3. Need for a Regulator to Oversee Rehabilitation of People Displaced by Development
Projects: In view of the confusion created by the Sardar Sarovar Project, there is an urgent
need for an institutional solution to resolve the problems of modern developmental projects.
Analysts suggest that the creation of a well-defined and autonomous regulatory body to
oversee and legally enforce rehabilitation of people displaced by developmental projects. This
would obviate the need for executive or judicial intervention.

4. Need to Empower People to Participate in Socio-Economic Development: Analysts
feel that modern development should lead to a socially cohesive, economically prosperous
and politically stable nation. The people should be empowered to participate vigorously in the
socio-economic development rather than being merely compensated for the loss of their
livelihoods and communities.

246
SUMMARY
I. Introduction:

1. Narmada Valley Development Plan: The SSP is part of a larger Narmada Valley Development Plan
envisaging 30 big, 135 medium and 3000 small dams on the Narmada river

2. Sardar Sarovar Dam:

Involves Four States: The Sardar Sarovar Project (SSP) to build the Narmada dam involves four States-
Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

1,250 Metre-Long Dam

Estimated Cost: The estimated cost of the inter-State multi-purpose Narmada dam is over Rs.39,000
crore.

World's Largest Irrigation Canal: 532 km in length - a world record; can carry 40,000 cusecs of water
making it the largest irrigation canal in the world.

3. Benefits of the SSP:

Irrigation: 18 lakh hectares of land in Gujarat; 73,000 hectares in the arid areas of Rajasthan.

Drinking Water: Drinking water facilities to 8,215 villages and 135 urban centres in Gujarat.

Power Generation: 1,450 Mega Watts (MW)

Protection Against Advancement of Deserts

Help in Controlling Floods

Boost to Fish Production in Gujarat

4. Arguments Against the SSP:

Displacement and Submergence: Displace 3,20,000 people and will submerge 40,000 hectares of land

Resettlement Policy in Disarray: The Government is unable to find land to rehabilitate over 35,000
families.

Benefits Exaggerated: Critics feel that the benefits of the dam have been exaggerated.

II. Narmada Control Authority (NCA) gave Approval to Raise the Height of the Sardar Sarovar
Dam to 138.72 Metres (June 12, 2104):

Naramda Control Authority (NCA) gave its approval to Gujarat to raise the height of the Narmada
dam or Sadar Sarovar dam to the full reservoir level of 138.72 metres from the present 121.92
metres.

NCA chaired by Water Resources Secretary Alok Rawat and attended by the Ministries
concerned and the States of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

After talking to all parties concerned, it had been decided to allow the height of the Narmada dam
to be raised

All displaced families would be fully rehabilitated

Official figures point out that of the 46,749 project-affected families from Narmada dam, 46,498
have been resettled

247

III. Benefits of Raising the Height of the Sardar Sarovar Dam:

The increase in the height of the Sardar Sarovar or Narmada dam would benefit Gujarat with
increased water availability for irrigation, drinking and power generation.

Gujarat would get the largest share for drinking water and irrigation, while Madhya Pradesh and
Maharashtra benefit from the power generation.

With increase in height, the water storage capacity of the Narmada dam would be enhanced by
four times, from 1 Million Acre Feet (MAC) to 4 MAC which is seen as a big insurance against
drought

Under the Narmada Water Disputes Tribunals (NWDT) award, Gujarat gets 9 MAF of water from
Narmada, of which 7.5, 1 and 0.22 MAF are for irrigation, drinking and industry respectively.

The increased height of the Narmada dam would benefit the pharmaceutical and textile industries
which are the mainstay of industrial activity in Gujarat and are heavily dependent on water.

The farmers of drought-prone Gujarat also stand to benefit from the increased height of the
Narmada dam as it would lead to improved irrigation capability of the dam

IV. Opposition Against Increasing the Height of the Sardar Sarovar Dam:

Over two lakh displaced people waiting to be rehabilitated even at the current height of the dam.

NBA wanted the dam to be halted at the present height to prevent further displacement.

Even now 2.5 lakh displaced people need to be resettled and rehabilitated as per the Narmada
Water Disputes Tribunal (NWDT) award and various orders of the Supreme Court

The CPI (M) urged the government to reverse the decision to raise the height of the Sardar
Sarovar or Narmada dam and ensure proper rehabilitation and resettlement of the families to be
displaced.

V. Conclusion:

1. Sardar Sarovar Dam a Milestone in India's Efforts to Provide a Better Life

2. Model for Development with a Human Face

3. Need for a Regulator to Oversee Rehabilitation of People Displaced by Development Projects

4. Need to Empower People to Participate in Socio-Economic Development

248
x. sports
1. cricket- IPL sCANDAL

I. Background:

1. Inaugural Twenty20 World Cup (South Africa, September 2007):

1. India Wins Twenty20 World Championship: On September 24, 2007, India won the inaugural ICC World
Twenty20 Championship in Johannesburg in South Africa by beating Pakistan by Five Runs in the final.

2. Huge Financial Rewards for the Indian Players: The Indian team was given a red carpet welcome by the
people of Mumbai on their return from South Africa. The BCCI and individual States announced huge financial
rewards for the players.

3. Impact of Twenty20 on Indian and Global Cricket:

Inaugural Twenty20 World Cup a Great Success: The inaugural Twenty20 World Cup in South Africa
was a great success demonstrating that cricketing skill and intelligence can be combined to produce
exciting cricket in a three-hour format. The short format was ideal for the audience.

Twenty20 Format Revealed India's Youth Power: The Twenty20 format revealed India's youth power,
energetic and self-confident led by an inspired captain Mahendra Singh Dhoni. It showed that the future
of Indian cricket belongs to young self-assured cricketers.

Focus on Team Effort Rather Than Individual Performances: Analysts feel that Twenty20 cricket has
altered the fundamental aspects of Indian cricket with team outshining individual performances. The
victory without the senior star cricketers is a pointer in this direction.

Cricket Once Again Established Monopoly Over Other Sports in India: With India winning the
Twenty20 World Cup, cricket has once again established its monopoly over other sports in India.
Sponsors have been scrambling to invest in the new format alongside One-day internationals and Tests.

Question Over All Three Formats of the Game Co-existing Harmoniously: Analysts feel that though
the Twenty20 World Cup was a grand success, the new format has a lot to prove before it achieves
permanence. However, the key aspect is whether all three formats of the game - Tests, One-day
internationals and Twenty20 - can co-exist harmoniously. The international cricket calendar is already
packed and overflowing.

2. Indian Premier League (IPL) and Champions Twenty20 League Launched by the
BCCI:
A. Two Twenty20 Leagues With Combined Prize Money of Rs. 35 Crore Launched by the BCCI:

In September 2007, the BCCI announced the launch of two Twenty20 leagues with combined prize
money of Rs. 35 crore.

The domestic league is called the Indian Premier League (IPL) and is scheduled to start in April 2008.

The Champions Twenty20 League, featuring the top two sides from India, Australia, England and South
Africa, would be held in October 2008. The prize money for the Champions Twenty20 League would be
$5 million.

B. IPL Launched on the Lines of Football's English Premier League:
On September 13, 2007, the BCCI launched the Indian Premier League (IPL) on the lines of football's
English Premier League and the US National Basketball League (NBA).

The IPL would be a franchise model wherein sponsors and corporates would be allowed to buy
and run teams. Player buy-outs would be another feature which is something unique to cricket.

A sponsor wanting to have its team would have to pay a stipulate fee to the BCCI to get
ownership. The franchisee would also have to share revenues with BCCI. However, the franchisee
would collect the gate money and the income from in-stadia advertisements, and at a later stage can list
the team on the stock exchange and trade.
249

C. $ 3 Million Prize Money for IPL: The IPL would initially start with eight teams and would offer $3 million in
prize money making it the richest tournament in domestic cricket.

D. The revenue generated from the IPL would be pooled back into developing better infrastructure and
facilities for cricket fans at the venues, according to BCCI President Sharad Pawar.

E. IPL Gets Support from ICC and other Cricket Boards: The IPL has received support of crickets governing
body the ICC and all other cricket boards. Top players from different countries have already signed for the IPL.

F. BCCI Gets $1.8 Billion :

The television rights for the IPL tournament were sold for $1 billion.

The revenue generated from the auction of the eight franchises was $723.5 million.

G. Auction of Players: Eighty players under contract of IPL were auctioned in two sessions in February and
March 2008.

H. Impact of the IPL on Cricket:

IPL is BCCIs Response to the ICL: Analysts feel that the formation of cricket's first big-buck league IPL
was inevitable as ICL had threatened the BCCI's primary revenue source, the broadcast revenue. The
launching of the IPL could severely dent the ambitious plans of the ICL as several current top
international players have signed for IPL.

Overwhelming Response from the Corporates Showed the Transformation of Cricket to a
Money-Spinner : Several big corporates have shown interest in IPL and the auction of the franchises
and the players showed the transformation of cricket to a money spinner was complete. The IPL proved
that cricket is the best bet for corporates to promote their brands.

IPL Proves the Diverse Support Base of Cricket in India: Analysts point out that the individuals and
corporates - from industrialists to film stars - that successfully bid for the IPL teams proved the diverse
support base of cricket in India.

Beneficial to the Players and Spectators: Analysts point out that the IPL would be beneficial both for
the players as well as spectators who can enjoy the improved facilities are the stadiums throughout the
country.

IPL Completes the Shift of Power towards India's Booming Cricket Economy: BCCI is the richest
cricket board in the world and the power equations have shifted towards India in the recent years. India is
currently the centre of all cricketing activity. The IPL completed this transformation by attracting the best
international players to play in India.

IPL can Change the Way Cricket is Played and Watched: Analysts point out that the IPL could change
the way cricket is played and watched. Like football or basketball in the US, cricket would have city-based
clubs and a local fan following. Clubs would now compete with national teams for an audience.

IPL can Become a Global Phenomenon: If the players rise to the challenge and maintain the
competitive edge as shown in the Test matches or One-day internationals, the IPL in time could become
a global phenomenon, according to observers. The BCCI would also have to change its style of
functioning to keep pace with the changing times, according to analysts.

BCCI Needs to Channel the Profits from IPL to Develop Infrastructure: Analysts point out that the
BCCI has a critical role to play in managing the changes to cricket brought over by the IPL. The profits
from the IPL should be channelised to develop cricket infrastructure in the country including upgrading of
cricket stadiums, coaching schemes, cricket gear for upcoming players in cities as well as in rural areas.

I. Concerns About IPL:

Doubt Over Transformation of Cricket from National Identity to Club Loyalty: Sceptics have raised
doubts about the ability of IPL to transform cricket built on national identity to one with club loyalty. The
first IPL Championship to be held in April 2008 could provide the answer.

250

IPL could lead to Player Burnout: Concerns about the Twenty20 format damaging the classic Test
format have been expressed. There are also serious concerns that IPL may put extra burden on the
already busy cricket schedule leading to player burnout.

3. Winners of IPL Tournaments:
2008 - Rajasthan Royals
2009 - Deccan Charges
2010 - Chennai Super Kings
2011 - Chennai Super Kings
2012 - Kolkata Knight Riders
2013 Mumbai Indians
2014 Kolkata Knight Riders

4. IPL Twenty-20 Championship Highly Successful:

The IPL inaugural Twenty-20 Championship had been a highly successful with tremendous
interest being generated on a daily basis. From the beginning to the end the IPL tournament was in
great demand on television as well as at the venues where it was played.

The Board of Control for Cricket in India (BCCI) would earn around Rs. 350 crore with the overall
size of cricket economy increasing by 50 per cent, according to the IPL CEO Sundar Raman.

5. Factors Behind the Success of IPL Tournament:

Indias cricket fans embraced the concept of city-based loyalty.

Top cricketers, both national and international, played the tournament earnestly.

Domestic cricketers competed on level terms with international cricketers, generating interest
among the viewers.

6. Merits of the IPL Tournament:

IPL Offered Opportunity and Experience to Domestic Cricketers: Analysts point out that the most
significant aspect of the IPL tournament was the opportunity it offered to the domestic cricketers to
showcase their talent and also to gain experience by playing with the world's best cricketers.

IPL Rejuvenated World Cricket: The inaugural IPL tournament also helped to rejuvenate world cricket
at large, according to analysts. The IPL could only help in drawing more people to cricket around the
world.

IPL would Further Increase the Power of BCCI in World Cricket: Analysts point out that the whopping
success of the inaugural IPL tournament would further increase the power of BCCI in world cricket. The
IPL was worth Rs. 9,000 crore including teams and sponsors.

7. Concern Over Impact of IPL on Traditional Form of Cricket:

Concerns have been expressed that test cricket could lose its pre-eminence due to the advent of
IPL tournament and the Twenty-20 form of cricket.

International careers could be shortened due to premature retirements, according to Australian
captain Ricky Pointing.

Young cricketers could also devote their energies to twenty-20 cricket while ignoring Test cricket
altogether.

The International Cricket Council (ICC) needs to handle the impact of IPL tournament on world
cricket with vision as more and more countries have expressed the desire to conduct similar
tournaments.

251

8. IPL Crisis Spot Fixing by Players and the Alleged Involvement of some Team
Owners in Betting:

On May 16, 2013, the Delhi Police Special Cell arrested three Rajasthan Royals players S.
Sreesanth, Ankeet Chavan and Ajit Chandila along with 11 bookies and middlemen for their
involvement in a spot-fixing racket.

The cricket players (all blowers) had allegedly struck a deal with the bookies to fix the number of
runs they would give in a particular over for payments ranging from Rs.40 lakh to Rs.60 lakh.

Call intercepts with the police suggested that the main conspirators had suspected links with
Mumbai underworld and were operating from countries like U.A.E., Pakistan and Britain.

On June 4, 2013, Sreesanth and his two teammates from Rajasthan Royals were among the 26
accused who were slapped with stringent provisions of the Maharashtra Control of Organised
Crime Act (MCOCA) in the spot fixing case.

The Delhi police said that the accused were part of a larger betting syndicate being controlled by
fugitive Dawood Ibrahim and his accomplice Chhota Shakeel.

On June 10, 2013, a Delhi court granted bail to cricketers Sreesanth, Ankeet Chavan and 17
others saying that prima facie there was no sufficient material on record against the accused
persons to establish that they had a nexus with an organised syndicate of criminals.

The son-in-law of the Board of Control for Cricket in India (BCCI) President N. Srinivasan,
Gurunath Meiyappan who is also the principal of the Chennai Super Kings team was arrested on
May 25, 2013. According to the police Meiyappan placed heavy bets on T-20 matches in the IPL and also
passed on vital information about Chennai Super Kings to bookies through arrested actor Vindoo Dara
Singh.

On May 26, 2013, the BCCI announced that a three-member panel would probe the role of the
Chennai Super Kings principal Gurunath Meiyappan in the spot-fixing and betting scandal.

On June 4, 2013, a local court granted bail to Gurunath Meiyappan and Vindoo Dara Singh.

On June 2, 2013, the BCCI President N. Srinivasan stepped aside in the interests of a clean probe.
The former BCCI chief Jagmohan Dalmia was made in charge of the Boards working group.

On June 10, 2013, the BCCI suspended the co-owner of Rajasthan Royals Raj Kundra on charges
of gambling in the IPL.

9. BCCI Bans Cricketers for Spot-Fixing in the IPL:

On September 13, 2013, the Board of Control for Cricket in India (BCCI) imposed a life ban on
cricketers Sreesanth and Ankeet Chavan for having brought disrepute to the game by indulging
in spot-fixing during the 2013 Indian Premier League (IPL) tournament. Both cricketers were playing
for the Rajasthan Royals in the IPL.

Rajasthan Royals player Amit Singh was banned for five years and Siddharth Trivedi, also of
Rajasthan Royals, was banned for one year as he did not inform the BCCI that he had been
approached by the bookmakers.

Harmeet Singh was reprieved for lack of evidence.

The bans were based on the BCCIs internal inquiry report.

10. Former IPL Commissioner, Lalit Modi Expelled from BCCI:

On September 25, 2013, the former IPL Commissioner, Lalit Modi, was expelled from the BCCI for
serious misconduct and indiscipline.

All the 29 members present at a Special General Meeting of the Board voted for the expulsion
motion against Mr. Modi.

252

II. Report of the Supreme Court Appointed Panel Headed by Justice Mukul
Mudgal which Probed Charges of Betting and Spot-Fixing in the IPL
(February 10, 2014):

On February 10, 2014, the Supreme Court Appointed panel headed by Justice Mukul
Mudgal to probe charges of betting and spot-fixing in the IPL submitted its report to the
Supreme Court.

The report concluded that the role of Mr. Gurunath Meiyappan, son-in-law of
BCCI president N. Srinivasan in Chennai Super Kings as the team owner as well
as the allegations of betting and passing on information against him stands
proven, but the allegations of spot-fixing required further investigation.

The Justice Mudgal panel report also observed that the allegations of betting and
spot-fixing against Raj Kundra, team owner of Rajasthan Royals needed further
investigation.

The report said that the allegations against the BCCI president N. Srinivasan and
12 others required verification and investigation.

The Justice Mudgal panel recommended enactment of a substantive law to deal
with corruption in sports.

The status of law in regard to betting and fixing had created operational
impediment to investigating and prosecuting agencies in combating those
corrupt influences in sport, according to the report.

It was imperative to enact a substantive law making all forms of manipulation of
sports, corruption and malpractices of sports a criminal offence. The law must
be applicable uniformly in the country, according to the panel report.

The law must provide for stringent and deterrent punishments. This was
necessary because the influx of hawala money and involvement of terrorist
elements in betting and fixing of sports were causing a serious threat to national
security, according to the panel report.

It was incumbent upon the IPL Governing Council and the BCCI to send a clear
and emphatic message that dishonesty in cricket would not be tolerated and the
most effective way of conveying that message was imposition of severe and
stringent punishment, according to the report.

III. Supreme Appointed Former Cricketer Sunil Gavaskar as the Interim
President of BCCI:

On March 23, 2014, the Supreme Court asked the president of the Board of
Control for Cricket in India (BCCI) N. Srinivasan to step down on his own to
ensure a fair enquiry into allegations of betting in the Indian Premier League
(IPL).

On March 28, 2014, the Supreme Court appointed former Indian captain, Sunil
Gavaskar, as the interim president of the BCCI to discharge the functions of the
IPL 2014 until its final order on the IPL spot-fixing and betting scandal.

253

Considering the fact that Mr. Sunil Gavaskar was a cricket player of great repute
and eminence, a captain of the Indian cricket team and has wide experience in
cricket-related activities, the Court appointed him president of the BCCI in
relation to IPL 2014, the Supreme Court observed.

The Supreme Court directed that other responsibilities of the BCCI be performed
by the BCCI vice-president Shivlal Yadav.

IV. Significance of the Supreme Courts Order:

Analysts point out that the Supreme Court decision to appoint former Indian cricket
captain Sunil Gavaskar as the interim president of BCCI was a welcome step as it
sought to strike a balance between addressing the problems highlighted by the
scandal in the IPLs sixth edition and at the same time allowing the seventh
edition of IPL to be conducted without impairment.

The Supreme Court order also removed the bias in the ongoing inquiry into
allegations of betting and spot-fixing in IPL by asking the BCCI president to step
down, according to analysts.

The Supreme Court order was a step towards cleaning the BCCI and other sports
bodies, according to analysts.

V. Supreme Court Appointed Mudgal Panel for Further Probe into the IPL
Scandal Allegations (May 16, 2014):

On May 16, 2014, the Supreme Court appointed the Justice Mukul Mudgal panel
to further probe into allegations against former BCCI president N. Srinivasan, his
son-in-law Gurunath Meiyappan and Raj Kundra of Rajasthan Royals.

The panel was asked to submit a report by the end of August 2014.

The Supreme Court said that it looked into the allegations against 13 persons, including
Mr. N. Srinivasan, in the report submitted in a sealed cover by the Mudgal panel and
found that the allegations had relevance to the subject-matter of the petition filed
by Cricket Association of Bihar and required to be verified and investigated
before the civils appeals arising out of the impugned judgment of the Bombay
High Court were finally heard and disposed off.

VI. Conclusion:

Spot-Fixing and Betting Scandal in IPL an Opportunity to Redeem and Renew All
Sport in India: The spot-fixing and betting scandal in the IPL exposed the deep malaise
in Indian cricket which cannot be ignored. Analysts suggest that a clean-up of the IPL
could be an opportunity to overcome the shortcomings and functioning of all other sport
institutions in the country. The reform and improvement of the IPL could be made an
example worth emulation and implementation for other sport in India.

BCCI Needs to be Reformed and made More Transparent and Accountable: The
BCCI is one of the richest sports bodies in the world. The spot-fixing and betting scandal
in the IPL has delivered a big blow to BCCIs credibility. Analysts feel that the time had
come to make the BCCI more transparent and accountable.

254

Players Should be Provided Counselling and Adequate Security: Analysts suggest
that the BCCI should put in place a process of providing counselling to young players to
help them deal with spot-fixing temptations. Adequate security also needs to be
provided to players to safeguard them from bookies and gangsters who attempt to
coerce them to join fixing and betting rackets.

A strict Code of Conduct for players and franchises and the administration
should be implemented to make IPL successful like the international sporting
tournaments like English Premier League football. The BCCI also should be converted
into a professionally run sports body, according to analysts.

The reform of BCCI should include more accountability, democratic functioning,
RTI coverage, and age and tenure limits along with suitability of the people
associate with it, according to analysts.

The focus of the reform should be in restoration of public trust in the sport,

VII. T-20 World Cup (April 2014, Dhaka, Bangladesh):

1. Mens Title: Sri Lanka defeated India by six wickets to win its first T-20 world title.

2. Womens Title: Australia won its third consecutive title by defeating England by six wickets.

SUMMARY

I. Report of the Supreme Court Appointed Panel Headed by Justice Mukul Mudgal which
Probed Charges of Betting and Spot-Fixing in the IPL (February 10, 2014):

The report concluded that the role of Mr. Gurunath Meiyappan, son-in-law of BCCI president N.
Srinivasan in Chennai Super Kings as the team owner as well as the allegations of betting and
passing on information against him stands proven

Observed that the allegations of betting and spot-fixing against Raj Kundra, team owner of
Rajasthan Royals needed further investigation.

Allegations against the BCCI president N. Srinivasan and 12 others required verification and
investigation.

Recommended enactment of a substantive law to deal with corruption in sports.

The status of law in regard to betting and fixing had created operational impediment to
investigating and prosecuting agencies in combating those corrupt influences in sport

It was imperative to enact a substantive law making all forms of manipulation of sports,
corruption and malpractices of sports a criminal offence. The law must be applicable uniformly in
the country

The law must provide for stringent and deterrent punishments. This was necessary because the
influx of hawala money and involvement of terrorist elements in betting and fixing of sports were
causing a serious threat to national security

It was incumbent upon the IPL Governing Council and the BCCI to send a clear and emphatic
message that dishonesty in cricket would not be tolerated and the most effective way of
conveying that message was imposition of severe and stringent punishment

255

II. Supreme Appointed Former Cricketer Sunil Gavaskar as the Interim President of BCCI:

On March 23, 2014, the Supreme Court asked the president of the Board of Control for Cricket in
India (BCCI) N. Srinivasan to step down on his own to ensure a fair enquiry into allegations of
betting in the Indian Premier League (IPL).

On March 28, 2014, the Supreme Court appointed former Indian captain, Sunil Gavaskar, as the
interim president of the BCCI to discharge the functions of the IPL 2014 until its final order on the
IPL spot-fixing and betting scandal.

Considering the fact that Mr. Sunil Gavaskar was a cricket player of great repute and eminence, a
captain of the Indian cricket team and has wide experience in cricket-related activities, the Court
appointed him president of the BCCI in relation to IPL 2014

The Supreme Court directed that other responsibilities of the BCCI be performed by the BCCI
vice-president Shivlal Yadav.

III. Significance of the Supreme Courts Order:

Welcome step as it sought to strike a balance between addressing the problems highlighted by
the scandal in the IPLs sixth edition and at the same time allowing the seventh edition of IPL to
be conducted without impairment.

Removed the bias in the ongoing inquiry into allegations of betting and spot-fixing in IPL by
asking the BCCI president to step down

A step towards cleaning the BCCI and other sports bodies

IV. Supreme Court Appointed Mudgal Panel for Further Probe into the IPL Scandal Allegations
(May 16, 2014):

Appointed the Justice Mukul Mudgal panel to further probe into allegations against former BCCI
president N. Srinivasan, his son-in-law Gurunath Meiyappan and Raj Kundra of Rajasthan
Royals.

The panel was asked to submit a report by the end of August 2014.

Allegations had relevance to the subject-matter of the petition filed by Cricket Association of
Bihar and required to be verified and investigated before the civils appeals arising out of the
impugned judgment of the Bombay High Court were finally heard and disposed off.

V. Conclusion:

Spot-Fixing and Betting Scandal in IPL an Opportunity to Redeem and Renew All Sport in India

BCCI Needs to be Reformed and made More Transparent and Accountable

Players Should be Provided Counselling and Adequate Security

A strict Code of Conduct for players and franchises and the administration should be
implemented to make IPL successful like the international sporting tournaments

The reform of BCCI should include more accountability, democratic functioning, RTI coverage,
and age and tenure limits along with suitability of the people associate with it

The focus of the reform should be in restoration of public trust in the sport

VI. T-20 World Cup (April 2014, Dhaka, Bangladesh):

1. Mens Title: Sri Lanka defeated India by six wickets to win its first T-20 world title.

2. Womens Title: Australia won its third consecutive title by defeating England by six wickets.

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x.2. FOOTBALL WORLD CUP

I. Background:

The football world cup was started in 1930

8 Teams that won the Football World Cup: Brazil, Germany, Argentina, Italy,
England, France, Uruguay and Spain.

Brazil is the only country to have appeared in all World Cup finals.

Brazil has won the World Cup five times ,the most by any country 1958, 1962,
1970, 1994 and 2002.

II. 2010 FIFA (Federation Internationale de Football Association) World Cup
(Brazil, June 12- July 14, 2014) Won by Germany:

Brazil held its first FIFA World Cup in 64 years.

The World Cup was held from June 11 - July 11, 2010 with 64 matches being
played.

32 teams participated in the World Cup.

Billions around the world watched the FIFA World Cup on Television

Uruguay striker Luiz Suarez was banned for nine games, debarred from taking
part in any football-related activity for a period of four months and ordered to pay
a fine of $111,000 by FIFAs Disciplinary Committee for biting Italian defender Giorgio
Chiellinis shoulder during the final Group D match.

Germany won the FIFA world cup for the Fourth Time defeating Argentina in the
final 1-0. The goal was scored by the German substitute Mario Gotze in the extra time.
Germanys fourth World Cup title came after a gap of 24 years. Their third title was won
in 1990.

Prize Money Germany - $35 million, Argentina - $25 million

Golden Ball Argentinas Lionel Messi was awarded the Golden Ball as the best
player of the World Cup. He scored four goals in the tournament.

Golden Boot Colombias James Rodriguez was awarded the Golden Boot for
being the top scorer. He scored 5 goals as some of the others but he had supplied three
assists, more than his rivals.

Best Young Player Paul Pogba of France was named the best young player of the
World Cup

Golden Glove Germanys Manuel Neuer was awarded the Golden Glove for the
best goalkeeper

FIFA Fairplay Award - Colombia for having the best disciplinary record.

III. Next Two World Cups:
2018: Russia , 2022: Qatar

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xi. PERSONALITIES

NATIONAL:

1. General Dalbir Singh Suhag (New Chief of the Army Staff):

On May 13, 2014, the Appointments Committee of Cabinet (ACC) chaired by the then
Prime Minister Manmohan Singh cleared Lt-General Dalbir Singh Suhags appointment
as the next Chief of the Army Staff after the retirement of General Bikram Singh on July
13, 2104.

The 59-year-old, new Army Chief, a Gorkha Rifles officer would have a 29-month tenure
as the Chief of Indias 1.18 million force, the worlds second-largest standing Army, till
December 31, 2016.

Gen. Suhag would be the second Gorkha Rifles officer after Field Marshal Sam
Manekshaw, to become the Chief of Army Staff.

In 1970, Gen. Suhag joined the National Defence Academy and was commissioned in
June 1974.

Gen. Suhag served as a company commander in the Indian Peace Keeping Force
Operation in Sri Lanka in 1987, commanded the 53 Infantry Brigade, which was
involved in counter insurgency operations in the Kashmir Valley and commanded the
prestigious 8 Mountain Division in Jammu & Kashmir.

Gen. Suhag attended various career courses in India and abroad including National
Defence College Course at New Delhi in 2006 and Senior Mission Leaders Course
(UN) in Kenya in 2007.

Gen. Suhag was the Vice-Chief and senior-most Lieutenant General before his
appointment as the Chief of the Army Staff.

2. Mukul Rohatgi (14
th
Attorney General of India):

On June 12, 2014, the National Democratic Alliance (NDA) Government appointed
Mukul Rohatgi as the 14
th
Attorney-General of India.

Mr. Rohatgi had previously represented the Gujarat government in the Supreme Court
in the 2002 Gujarat riots case.

The Attorney-General is a constitutional office under Article 76 (1) of the Constitution.

The Attorney-General is the top law officer representing the Government in the
Supreme Court.

The person appointed as the Attorney-General should be qualified to become a judge of
the Supreme Court.

258

3. Saina Nehwal (Indias Champion Badminton Player):

On June 29, 2014, Indias champion shuttler Saina Nehwal won the $750,000 Star
Australian Open Badminton championship defeating Spains Carolina Marin 21-18,
21-11.

Saina Nehwal won the London Olympics Bronze in 2012. Saina said that winning a gold
medal in the 2016 Rio Olympics was the dream that she was chasing.

On June 10, 2012, Saina Nehwal won the Thailand Open Grand Prix badminton
championship gold title defeating Thailands Ratchanok Inthanon in the final match.

On June 17, 2012, Saina Nehwal won her maiden Indonesian Super Series Premier title
defeating Chinas Li Xuerui. She had earlier won the Super Series title in 2009 and
2010.

In June 2010, Indias badminton star Saina Nehwal was ranked 3
rd
in the world after
completing a hat-trick of titles by winning the Indian Open Grand Prix, the Singapore
Open Super Series and the Indonesia Open Super Series. She also won the
Commonwealth Games Gold and Hong Kong Super Series in 2010.

Saina Nehwal became the best-ever world ranked player from India in three decades.

Twenty two-year-old Saina Nehwal was born in Hisar Haryana and is currently based in
Hyderabad.

Saina was the first Indian to win a World Junior Badminton title in 2008. She also won a
bronze-medal in mixed team event in the Commonwealth Games in 2006.

Saina Nehwal was recommended for the Rajiv Gandhi Khel Ratna Award for 2009.

4. Pankaj Advani (IBSF World Snooker Champion):

On June 29, 2014, Indian cueist Pankaj Advani created a record by becoming the first
player to win world titles in the longer and shorter formats of billiards and snooker, by
winning the IBSF World 6-Red snooker championship.

Pankaj Advani won his first 6-Red world title by defeating Kacper Flilpiak of Poland in
the final.

The Indian cueist has won nine world titles seven in billiards and two in snooker.

Pankaj Advani has the highest tally of world titles by any Indian cueist in the Open
(mens) category.

5. N. Srinivasan (Chairman of the ICC):

On June 26, 2014, the Board of Control for Cricket in India (BCCI) President-in-exile N.
Srinivasan was appointed the first Chairman of the International Cricket Council (ICC)
after its 52-member council approved a controversial revamp of the bodys
administrative structure.

The 52-member council approved amendments to the ICCs Memorandum and Articles
of Association at the Annual Conference in Melbourne, Australia.

259

Mr. Srinivasan was elected as the Chairman of the ICC despite being barred by the
Supreme Court of India from carrying out his duties as the BCCI president due to the
ongoing investigations into match-fixing allegations relating to the 2013 IPL.

Mr. Srinivasan was appointed the Chairman of the ICC after the Supreme Court of India
refused to stop his nomination to the ICC post.

The revamp of the ICCs administrative structure has given India, Australia and
England, major executive decision making authority, according to analysts.

Mr. Srinivasan said that it was an honour to be confirmed as the Chairman of the
International Cricket Council (ICC) and he would leave no stone unturned in trying to
strengthen the pillars and foundations of the sport both on and off the field.

6. Kedarnath Singh (Jnanpith Award for 2014):

Kedarnath Singh, noted Hindi poet, was chosen for the Jnanpith award for 2013.

Mr. Singh is the 10
th
Hindi writer to win the award. Sumitra Nandan Pant and Ramdhari
Singh Dinkar were among the noted Hindi writers who had won the award earlier.

Eighty-year-old Kedarnath Singh has also written essays and stories.

Among his prominent works are Abhi bilkul abhi and Yahan se dekho.

The Jnanpith award includes Rs.11 lakh and a citation.

7. Chandi Prasad Bhatt (Gandhi Peace Prize 2013):

On July 15, 2014, President Pranab Mukherjee presented the Gandhi Peace Prize 2013
to noted environmentalist and social worker Chandi Prasad Bhatt.

Eighty-year-old Chandi Prasad Bhatt founded the Dasholi Gram Swarajya Sangh in
1964, to provide forest-based jobs for locals.

Mr. Bhatt launched the Chipko Andolan in the Garhwal Himalayas in 1974 against
commercial exploitation of the forests.

Chandi Prasad Bhatt took inspiration from Jayaprakash Narayan and joined the
Sarvodaya movement.

Mr. Bhatt was awarded the Ramon Magsaysay Award in 1982 and the Padma Bhushan
in 2005.

260

INTERNATIONAL:

8. Alexander Stubb (New Prime Minister of Finland):

On June 14, 2014, Alexander Stubb became the new Prime Minister of Finland after
winning a vote to head the ruling conservative party.

Mr. Stubb defeated Social Affairs Minister Paula Risikko in the second round of polling
by members of Finlands national coalition.

The 46-year-old, former Foreign Minister, is known for his liberal economic stance.

Mr. Stubb is pro-European Union (EU) and advocates Finlands accession to NATO.

The new Prime Minister of Finland is popular with young Finnish urbanites and is an
amateur triathlete and marathon runner.

Mr. Stubb is modern politician with the highest online profile of any Finnish lawmaker
with over 113,000 followers on Twitter.

9. Juan Manuel Santos (President of Colombia for a Second Term):

In mid-June 2014, the Colombian centre-right President Juan Manuel Santos won the
Presidential elections for a second-term.

Mr. Santos has held in the past four years peace negotiations with the Revolutionary
Armed Forces of Colombia (FARC). The peace negotiations have progressed to some
degree with support from Cuba.

Presidents Santos government and the FARC have reached an agreement to promote
agrarian reform, facilitate political participation of the members of the militia, and to
sever links with the drug mafia.

The 50-year old civil war in Colombia has resulted in the death of over 200,000 people
and displaced millions. A decisive end to the civil war could ensure stability and security
in Colombia, according to analysts.

The civil war in Colombia is seen as the longest in recent times and the displacement of
the people was the largest until the Syrian conflict.

Analysts point out that the contentious issues in the peace negotiations include justice
for the victims and the demobilisation of the FARC.

The Colombian Presidents peace negotiations with the extremist insurgents were
denounced by the conservative party as little more than one granting impunity to
terrorists.

Analysts point out that President Santos record of dealing with public officials, large
number of whom are linked with paramilitary groups and organised crime, has led to the
perception that he has been a leader who was not particularly effective, even if was
guided by the best intentions.

Currently, Colombia is the third largest economy in Latin America and the benefits of
economic growth would be lost in the absence of a genuine democratic rule and respect
for human rights.

261

With a decisive mandate for his second term, the Colombian President should strive for
potentially transforming the prospects of the people of Colombia, according to analysts.

10. Jean-Claude Juncker (New President of the European Commission):

On June 27, 2014, Jean-Claude Juncker was named as the next President of the
European Commission.

Jean-Claude Juncker, the former Luxembourg Premier, would replace Jose Manuel
Barroso.

Mr. Junckers candidature was opposed by British Prime Minister David Cameron who
forced an unprecedented vote on the issue despite having the support of only Hungary
among the 27-member EU.

The EU leaders now have to repair relations with the British Prime Minister ahead of the
slated referendum on whether Britain should leave the EU in 2017.

11. Petra Kvitova (Wimbledon Womens Singles Champion 2014):

On July 5, 2014, Czechoslovakias Petra Kvitova defeated Canadas Eugenie Bouchard
6-3, 6-0 to win the 2014 Wimbledon womens singles title.

This was the second Wimbledon title for Petra Kvitova who had earlier won the
Wimbledon womens singles title in 2011.

Kvitova, who has not won any other Grand Slam title, would rise to fourth in the world
tennis ranking.

12. Novak Djokovic (Wimbledon Mens Single Champion 2014 ):

On July 6, 2014, Novak Djokovic of Serbia defeated Roger Federer of Switzerland
6-7(7), 6-4, 7-6(4), 5-7, 6-4 to win the Mens Singles Wimbledon Championship 2014.

It was the second Wimbledon title for the Serbian player who has so far won seven
Grand Slam titles.

Novak Djokovic won the Sportsman-of-the-year award at the Laureus Sports Awards
in London in February 2012.

Analysts point out that the significant aspect of Djokovics achievement of reaching the
top rank in mens tennis is that he managed these accomplishments in an era
dominated by Roger Federer and Rafael Nadal. Federer and Nadal won 24 of the 28
Grand Slams played in the seven years before 2011.

The 27-year-old Novak Djokovics rise has been achieved by advancements in
technique and fitness, according to analysts. His forehand became stronger and better
balanced and his serve benefitted from minor adjustments.

Djokovic helped Serbia win the Davis Cup in 2011 and since then he has become a
national hero in Serbia.

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