Pursuing a foreign policy that is purposeful, result-oriented
and pro-active has been the hallmark of the UPA Government in the
last two years. India’s emergence as a compulsory destination in
the itineraries of leaders from all parts of the world reflects
the high standing and credibility that the Government and its leadership
enjoy. India today enjoys a unique profile in the international
arena as a factor of stability, a model of plural and secular democracy,
and an economic powerhouse that is destined to play a greater role
in the international affairs.
Initiatives for International Cooperation in Civil Nuclear Energy Sector
As a major
initiative to secure India’s energy needs, the Government is engaged
in a dialogue with a broad range of countries, including the United
States, Russia and France, on civil nuclear energy cooperation with
India. During the visit of Prime Minister to the US, the two sides
issued a Joint Statement on July 18, 2005, in which the US inter
alia stated that it would work with its partners in the Nuclear
Suppliers Group (NSG) for adjusting its Guidelines to enable full
civilian cooperation between India and the international community.
The Government
has also actively engaged with a broad range of NSG member States
with a view to seeking their support for enabling international
civilian nuclear cooperation with India. Further discussions were
held on this issue during the visit of President Bush to India in
March 2006.
During
the visit of Prime Minister to Russian Federation in December 2005,
both sides agreed to actively explore opportunities to further expand
cooperation in the sphere of peaceful uses of atomic energy.
India and France signed a Declaration on the Development
of Nuclear Energy for Peaceful Purposes during the visit of President
Jacques Chirac to India on February 20, 2006, which underlines the
need to develop international cooperation in promoting the use of
nuclear energy for peaceful purposes.
High Priority to Relations with Neighbours
The Government
has re-focused India’s Foreign Policy, giving high priority to relations
with all its neighbours. In the last two years, a number of top
level visits have been hosted from all neighboring countries, including
the visit of the Head of State of Myanmar to Delhi in November 2004,
the first such visit in 26 years.
This has resulted in important cross-border projects being
taken up and coordinated action to deal with insurgency in border
areas.
The Government’s engagement with India’s neighbours has not
been limited only to Government-to-Government level, but has consciously
encompassed different sections of society and across the political
spectrum. The UPA Government believes that it is important
to have frequent and regular contacts and wide-ranging discussions
with the neighbouring countries at all levels to take forward and
to maximize opportunities for mutually beneficial cooperation. At the same time, the Government has not hesitated to address issues
where there may be differences, but has done so in a spirit of friendship
and in a constructive search for practical and mutually acceptable
solutions. The Government remains committed to a collective future
of peace and prosperity for the entire South Asian region.
Nepal
The Government
has welcomed the latest developments in Nepal towards restoration
of multi-party democracy and the handing over of political power
to the elected representatives of people of Nepal. India wishes
to see a peaceful, stable and prosperous Nepal in its neighbourhood
and stands ready to support all efforts aimed at bringing about
a peaceful solution to the problems confronting Nepal. There had
been wide understanding and deep appreciation amongst liberal and
democratic forces and people at large of India’s stance in the wake
of February 2005 Royal Proclamation leading to assumption of executive
authority by the King of Nepal. India had been reiterating that
multi-party democracy, as enshrined in the 1990 Constitution of
Nepal, should be restored and the Constitutional forces, that include
both the institution of Monarchy and the political parties, should
work together in order to confront the challenges facing Nepal,
including the Maoist insurgency.
In the last two years, considerable
progress has been made in India’s cooperation with Nepal in the
area of border security and management. New mechanisms have been
established to strengthen cross-border coordination and exchange
of information. Texts of a new Extradition Treaty and Agreement
on Mutual Legal Assistance in criminal matters have been finalised.
Several infrastructure projects have also been launched.
These projects would facilitate bilateral economic cooperation and
also contribute towards strengthening of security in border areas.
Indo-Nepal joint ventures, accounting for 35 per cent
of total Foreign Direct Investment in Nepal, reported good performance
in spite of disruptions resulting from the Maoist insurgency. At present, 115 small and large projects are under implementation
in 61 districts of Nepal.
Bangladesh
The Prime
Minister, Dr Manmohan Singh, visited Bangladesh to attend the 13th
SAARC Summit at Dhaka where he met the Prime Minister of Bangladesh
on the sidelines of the Summit.
Issues relating to Indian Insurgent Groups (IIGs), transit,
energy and water resources were discussed in the meeting.
Bangladesh
Prime Minister Khaleda Zia visited India in March 2006. During the
visit issues pertaining to security, illegal immigration, border
fencing, trade and commerce, investments, improving connectivity
between the two countries, sharing of water resources, Myanmar-Bangladesh-India
gas pipeline and UN reforms were also discussed.
India announced
flood relief assistance of Rs.100 crore to Bangladesh in October
2004.
Bhutan
Following
upon his visit to India in January 2005 as Chief Guest at the Republic
Day celebrations, His Majesty the Kind of Bhutan, Jigme Singye Wangchuck
visited India again in August 2005, during which he held wide-ranging
discussions with the Indian leadership.
These visits contributed to further deepening of ties between
the two countries, especially in the area of security and border
management.
It was agreed to renew Trade, Commerce and Transit Agreement
for 10 years and Umbrella Agreement on power projects in Bhutan
was finalised. A MoU on Air Services Agreement was signed
and MoU between UPSC and Royal Civil Service Commission of Bhutan
was singed to institutionalise cooperation between them.
A photo-exhibition “India-Bhutan: along the Friendship Trail”
was organised in Delhi in December 2005.
The 2nd Construction Expo in Thimphu in September
2005, witnessed participation by a large number of leading India
companies.
Sri Lanka
The top leadership
of Sri Lanka visited India during the last two years to exchange
views on bilateral issues and other areas of mutual interest and
to work towards further intensification of bilateral relations. President Mahindra Rajapakse paid a State Visit
to India in December 2005.
Bilateral
economic ties saw further intensification during this period. Six rounds of technical level talks on the
Comprehensive Economic Partnership Agreement (which will widen and
deepen the Foreign Trade Agreement by including trade in services
and investments) have been held.
India is today the fourth largest
foreign direct investor in Sri Lanka.
Sri Lanka Board of Investment has given approval to 147 Indian
projects with total FDI of US$ 450 million.
India Oil Corporation has invested over Rs.300 crore while
a major power project involving setting-up of a 300 MW coal or LNG
driven power plant by the National Thermal Power Corporation is
under consideration.
India reacted swiftly and decisively
to come to Sri Lanka’s assistance following the Tsunami of December
26, 2004. Indian assistance was the first to arrive in Sri Lanka,
a fact well acknowledged by the leadership and people of Sri Lanka.
Greater People-to-People Contact with
Pakistan
Several milestone
initiatives were taken in the last two years. The Srinagar-Muzaffarabad
bus service was started on April 7, 2005, across the Line of Control,
allowing the people to move across and meet their divided families.
A decision was taken to link up Poonch-Rawalkot by bus across
the LoC and to start a truck service on the Srinagar-Muzaffarabad
route. The two countries
commenced bus service between Amritsar and Lahore while bus service
between Amritsar and Nankana Sahib is expected to start shortly.
The rail
service between Munabao in Rajasthan and Khokhrapar in Sindh of
Pakistan has been resumed after 40 years on February 18, 2006. The two Governments also agreed in principle, to expand the list
of pilgrimage sites and increase the number of pilgrims by revising
the Protocol signed in 1974. The
third round of the Composite Dialogue commenced in January 2006.
In confirmation
with Government of India’s firm belief that people to people contact
is a significant factor in generating goodwill and promoting bilateral
relations between the two countries, India announced unilateral
visa liberalisation in September 2004, which included, inter alia,
multiple entry visas for accredited journalists, exemption from
reporting to the police for various categories of Pakistani nationals
such as those above 65 years of age, academicians, and doctors.
In December 2004, the Government announced additional visa
liberalisation measures, such as visa on arrival at Wagah for certain
categories of people, and grant of student visas for allowing admission
in India institutions to Pakistani students on a case-by-case basis.
An Agreement on Pre-notification of the Flight Testing of
Ballistic Missiles and a MoU for Communication Link between Coast
Guard of India (CGI) and Pakistan Maritime Security Agency (PMSA).
The former was an important Confidence Building Measure,
while the latter was expected to provide better coordination between
the maritime agencies guarding the coasts.
Substantial growth was witnessed in bilateral trade that
grew from US$ 245 million during April-August last financial year
to US$ 299 million during the same period in 2005-2006, an increase
of 25 per cent. Exports
from Pakistan registered a rise of 93 per cent though the trade
balance remained in favour of India.
The Prime Minister spoke to President Musharraf telephonically
the same day on October 8, 2005, when the devastating earthquake
hit the northern parts of southern Asia that claimed more than 80,000
lives in PoK and Pakistan. India sent relief material immediately and
announced an assistance of US$ 25 million. The total worth of relief
material sent to Pakistan both from Government and private sources
was Rs. 69 crore.
The importance of Pakistan fulfilling its commitment outlined
in the Joint Press Statement of January 6, 2004 of not permitting
the use of territory under its control to support terrorism in any
manner was repeatedly reiterated by India.
Close ties
with Afghanistan
Despite the
difficult internal situation of Afghanistan, bilaterally, India
and Afghanistan achieved significant progress.
One of the first bilateral interactions at the highest level
in the last two years was the working visit of President Hamid Karzai,
accompanied by eight Cabinet Ministers, to India in February 2005.
Two MoUs on Cooperation in the field of Civil Aviation and
Media and Information were singed during the visit.
Bilateral relations got further strengthened when Prime Minister
paid an official visit to Afghanistan in August 2005, and Mr. Karzai
paid a State visit to India in April this year.
The two leaders underlined that the establishment of a sovereign,
stable, democratic and prosperous Afghanistan was essential for
peace and stability in the region.
The Prime Minister reaffirmed India’s continued commitment
to Afghanistan’s reconstruction and pledged an additional financial
assistance of $ 50 million. India welcomed Afghanistan’s decision to seek membership of the
SAARC. In the Final Declaration
of 13th SAARC Summit on November 13, 2005 at Dhaka, Afghanistan
was formally invited to join SAARC as a member.
In an unfortunate turn of events, an official of the Border
Roads Organisation (BRO) of India, Shri Maniyappan Roman Kutty,
who was working on the Zaranj-Delaram road project in Afghanistan
was abducted on November 19, 2005, and later killed by suspected
Taliban militants. The Government of India had made every effort to seek the safe release
of Shri Kutty, in cooperation with Afghan authorities. Yet again
on April 28, this year, Shri K Suryanarayan, working in Afghanistan
for a Bahrain-based telecom company, was kidnapped in the Zabul
province by suspected Taliban militants, and later killed. Despite
these severe setbacks, India reiterated its commitment towards Afghanistan’s
reconstruction.
A new surgical block of Indira Gandhi
Institute of Child Health was inaugurated in February 2005 at Kabul.
India has also offered to fund the construction of a new parliament
building in Afghanistan. Besides,
300 vehicles have been gifted to the Afghan National Army.
Enhanced Bilateral Economic Engagement
with China
The visit
of Chinese Premier Wen Jiabao to India in April 2005 signified a
milestone in bilateral relations.
The outcome of the visit was substantive.
Eleven Agreements/MoUs were signed.
The year 2006 was declared as the ‘Year of the India-China
Friendship’. Both sides agreed to set a target of bilateral
trade volume of US $ 20 billion or higher by 2008. The second round of India-China Strategic Dialogue
was held in Beijing in January 2006. The first round of the Strategic
Dialogue was held in January 2005 in New Delhi.
The commitment on both sides to expedite the implementation
of the recommendations presented by the India-China Joint Study
Group, to facilitate enhanced bilateral economic engagement, was
reiterated during the talks between the Commerce Ministers of India
and China, during the latter’s visit to India early this year.
India-United States bilateral cooperation
hits a new high
The transformation of India – United States relationship
has been a very significant development in India’s diplomatic outreach
in the last two years.
President
George Bush’s historic visit to India in March this year, Prime
Minister’s visit to the US in July 2005, the Joint Statement of
July 18, the Science and Technology Framework Agreement of October
2005, the New Framework of Defence Relations of June 2005, and the
India – US Energy Dialogue initiated in May 2005, have the potential
to fundamentally redefine India – US relationship.
The decision of the two Governments to work to achieve full
civil nuclear energy cooperation is indicative of a relationship
of trust and goodwill. The enactment of the WMD Bill, the proposed separation of civil
and military nuclear facilities, and the upgradation of the national
export control lists are intended to make India a viable destination
of advanced dual use technologies.
Multi-faceted relationship with Russia
and strengthening of ties with other CIS countries
The period was marked by intensified bilateral political
and cultural contacts. Prime
Minister of the Russian Federation Mr. Mikhail Fradkov visited India
in March this year. The Prime Minister visited Moscow last year
to attend the May 9 Victory Day celebrations marking the 60th
anniversary of the end of the Second World War. The President paid
a State visit to Russia in the same month. High-level bilateral
visits were interspersed with exchange of official, parliamentary
and commercial delegations and cultural troupes. India and several
CIS countries decided to explore avenues for Indian IT companies
in these countries.
EU-India: An Indispensable Partnership
India attaches great importance to its relationship with
the EU member countries, as also with the other countries of the
European Continent. India – EU relations were upgraded to a strategic
partnership at the 5th India – EU Summit in 2004. The New Delhi Summit of September 2005 adopted
a Joint Action Plan to strengthen political dialogue, to enhance
economic policy dialogue and cooperation, and to promote trade and
investment. Separately, India has established strategic
partnerships individually with UK, France and Germany. The Prime Minister’s visit to France in September
2005, and French President’s visit to India in February 2006, mark
significant milestones in India – France strategic relationship. The EU continues to be India’s largest trading
partner. India’s participation
as Partner Country at the Hannover Technology Fair (Germany) in
April 2006, showcased India as an attractive Engineering Process
Outsourcing destination.
A New Dimension To Look East Policy
India’s “Look East” policy has been
given a new dimension by the UPA Government through a much closer
partnership with the ASEAN and active engagement with BIMSTEC (Bay
of Bengal Initiative for Multi-Sectoral Economic and Technical Cooperation).
Prime Minister Dr. Manmohan Singh flagged off the first India –
ASEAN car rally from Guwahati that drew enthusiastic support from
within the ASEAN countries as also from the North Eastern States.
The adoption of document on “India
– ASEAN Partnership for Peace, Progress and Prosperity” at the Indo-ASEAN
Summit on November 30, 2004, symbolises that India now forms the
inner core of the countries in ASEAN’s political relationship with
the rest of the world. The Fourth India – ASEAN Summit in Kuala
Lumpur in December 2005, and Prime Minister’s participation in the
East Asia Summit have signified India’s growing role and integration
with the evolving global economy. The Comprehensive Economic Cooperation Agreement
signed with Singapore and a similar model being developed with Thailand,
and the Joint Study Group set up for conclusion of FTA with Malaysia,
and Indonesia, signal closer inter-linkages with this dynamic region.
West Asia and Gulf: New Initiatives
The Government
has launched a “Look West” policy, in recognition of the facts that
the Gulf region has become a major economic partner, is a home to
over 4 million Indians and a major source of oil and gas. This has resulted in increased interaction, enhanced trade and economic
relations and launch of negotiations towards FTA with the Gulf Cooperation
Countries Council (GCC) countries. His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of Qatar
visited India in April 2005, and The Custodian of the two Holy Mosques
and King of Saudi Arabia, His Majesty Abdullah Bin Abdul Aziz Al
Saud was the Chief Guest at the Republic Day 2006 celebrations.
The Government is keen to cooperate with the Gulf countries
in the promotion of peace and stability in the region. It has appointed a Special Envoy for the Gulf and West Asia.
For the India
citizens in the region, the Government has established a 24-hour
Helpline Centre in Saudi
Arabia and will extend it to other capitals. All Indian Missions
and Posts in the Gulf observe an ‘Open House’ once a month to enable
the India nationals to meet senior officials without appointment.
The Government
has been carefully monitoring events in Iraq and expects that the
democratic process on way would enable the Iraqi people to take
greater control of their destiny in their own hands.
India remains committed to assist in the reconstruction of
Iraq.
Increase in number of Haj Pilgrimage
The UPA Government has taken a decision
not only to increase the number of Haj pilgrims from India but also
restored the subsidy, which had been reduced by the previous Government.
The Haj Committee pilgrim quota was raised from 82,000 to 100,000
for Haj 2006. Another 47,000
pilgrims (approx.) performed Haj through the private tour operators,
taking the total number of India pilgrims performing Haj 2006 to
1,47,000, the full permissible Haj pilgrim quota for India.
Focus on Africa
Another key initiative of the Government
has been the “Focus Africa”
policy. There has been greater exchanges of high level visits, greater
economic and technical cooperation, both bilateral as well as within
the context of the African Union and India’s contribution to peace-keeping
operations in several African countries. India responded in large
measure to the widely felt appreciation among the African nations,
that India would partner them in their march towards progress and
prosperity. The Pan-African
E-Network Project, for which a MoU has been signed between India
and the African Union, is designed to help bridge the digital divide
in Africa. It will use Indian
expertise in IT, education and healthcare to deliver affordable
distance education and medical services in remote locations. India
has extended concessional lines of credit to the tune of over a
billion dollars to a number of countries in Africa, for project
ranging from road and rail transport, to agricultural machinery
and food processing.
India has provided steadfast support
to peacekeeping missions in different parts of Africa. Currently Indian personnel are serving in UN
missions in Burundi, Cote d’Ivoire, Democratic Republic of Congo,
Ethiopia and Eritrea, Sierra Leone and Sudan.
The services of the Indian troops and personnel are highly
rated and appreciated by the beneficiary nations.
Latin America and the Caribbean (LAC)
Latin America is emerging as a new
market for Indian exports. India has intensified its engagement
with the countries of Latin America and the Caribbean, and expanded
its trade and investments with them.
The relations with Brazil have been deepened, in the context
of their mutual recognition as strategic partners, bilaterally,
trilaterally (IBSA – India, Brazil and South Africa), and multilaterally
(G-4 and G-20). The relations
with Mexico have been reinvigorated with exchange of visits and
Joint Commission Meeting during the year. India received the visits of the Presidents of Chile, and Venezuela,
and Foreign Ministers of several Latin American nations in 2005,
signifying the substantive relationship that India has forged with
these countries.
As part of
India’s initiative to establish dialogue and cooperation with the
countries of Central America and the Caribbean region, Ministerial-level
interactions were held for the first time with eight Central American
countries, India – SICA (System of Central American Integration),
and 14 Caribbean Community countries, India – Caricom. As a result
of these initiatives, India’s exports to the LAC region rose to
three billion dollars in 2005, from two billion dollars in 2004.
India agreed
to finance and construct a cricket stadium in Georgetown, Guyana,
to enable it to host World Cup Cricket tournament in 2007. India
extended relief assistance to Jamaica worth US$ 2,00,000 and US$
50,000 each to Grenada and Bahamas following hurricane Ivan. Medicines
worth US$ 50,000 each were donated to Dominican Republic and to
Saint Vincent and Grenadines.
India and the United Nations
India played a constructive role
in UN debates on major issues.
India continued to have a significant participation in UN
Peace Keeping Operations. It
was a signal, recognition of India as a vibrant democracy, that
the Indian Prime Minister was called upon, by the UN Secretary General,
along with other leaders, to launch the UN Democracy Fund, to which
India’s initial contribution is $ 10 million.
India has
been actively pursuing its candidature for permanent membership
of the UN Security Council. There is growing momentum in the number
of countries that have expressed support for India’s candidature
for permanent membership of the UN Security Council. A significant
development in this regard was the agreement reached in September
2004, by what is now being termed as the “Group of Four Aspirants”
(G4) – Japan, Germany, Brazil and India – that these countries are
legitimate candidates for permanent membership of the Security Council,
and will support each other’s candidature. They agreed that Africa
must also be represented in the permanent membership of the Security
Council.
Foreign Policy and Domestic Developments
Foreign Policy
today cannot be divorced from domestic developments. In order, therefore,
to ensure a more consultative approach in Indian foreign Policy,
the Minister for External Affairs has initiated a mechanism for
coordination with other Ministries and agencies as well as with
State governments, particularly those which border India’s neighbours.
For example, the Ministry of External Affairs is closely coordinating
its diplomacy with the Ministry of Petroleum and Natural Gas in
respect of securing energy supplies for India in different parts
of the world. The Government is also engaged in a major programme
for up gradation of cross-border infrastructure working together
with the Ministries of Home and Road Transport as also with the
State governments.
Multidimensional Consultative Process based on National Consensus
India’s foreign
policy has traditionally been based on national consensus. It is
the Government’s intention that the consensus should be maintained
and strengthened. As a fresh initiative, the Ministry for External
affairs has set up a foreign policy Advisory Group to get inputs
on important contemporary issues from experts and academics outside
the Government.
The Government
is of the view that the practice of diplomacy must respond to the
needs of the times. Accordingly, Indian Ambassadors abroad have
not only become active in economic diplomacy but have been reaching
out to the Indian diaspora with a view to involve them in the exciting
task of building a new India.
It has been
the endeavor of the Government to follow the basic principles of
India’s Foreign Policy, which have guided India since its independence.
It has reoriented and readjusted it wherever necessary in response
to new challenges that confront India.
India would continue its journey towards a destiny that was
eloquently articulated by India’s first Prime Minister and Foreign
Minister, Pandit Jawaharlal Nehru in 1947, a destiny in which India
“attains her rightful place in the world and makes her full and
willing contribution to the promotion of world peace and welfare
of mankind”.
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