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The world will be closely watching the unfolding of the assurances given by the Modi government to its neighbourhood and the developing world. Recall his swearing in ceremony, where he had invited leaders of South Asia as a gesture of goodwill and they responded favourably.
The world will be closely watching the unfolding of the assurances given by the Modi government to its neighbourhood and the developing world. Recall his swearing in ceremony, where he had invited leaders of South Asia as a gesture of goodwill and they responded favourably.
In the extended neighbourhood, Modi diplomacy began its first debut with the changing of the ‘Look East Policy’ to ‘Act East Policy’ and roping in the remote Pacific Islands Forum to the level of summit-level talks with India. In the ASEAN bloc, the less developed countries like Cambodia, Myanmar, Laos and Vietnam (CMLV) particularly has been selected on priority for deepening development cooperation.
Importantly, the budgetary proposals have gone beyond to make the CMLV countries as “manufacturing hubs.” With a view to catalyze investments from Indian private sector, a project development company through separate special vehicles (SPVs) will set up manufacturing hubs in the CMLV countries. Thus, this would be a new approach that can be conveniently called ‘Make by India’ in contrast to ‘Make in India’.
However, development cooperation with CMLV countries is not new.
Vietnam is a friendly country having strategic relationship with India. While Cambodia and Laos are also friendly countries, they had taken a different view over Beijing’s claim over South China Sea at the ASEAN meeting, which perhaps now New Delhi would like to influence.
Given that Myanmar is India’s immediate neighbour and is the gateway to South-East Asia, plans are afoot to have strong ties by ensuring land, rail and maritime connectivity through this country to other regions of ASEAN.
Among India’s immediate neighbours, Bhutan would be the largest recipient of aid. Recall this was the first country in South Asia Prime Minister Modi chose to visit after assuming office. New Delhi has consistently aided Thimpu and has already promised Rs 4,500 crore for Bhutan’s 11th five-year plan (2013-18) and Rs 500 crore towards economic stimulus package.
In terms of aid package, next comes the war-ravaged Afghanistan with a total of Rs 676 crore. New Delhi has played a significant role in the reconstruction and rehabilitation of Afghanistan and wants it to become a source of regional stability. However, Pakistan seeks to play spoilsport, and among others has denied land route access to Afghanistan. But that doesn’t deter New Delhi, which has now planned to reach Afghanistan by using the Chabahar port in Iran. India is Sri Lanka’s closest neighbour. However, over the past years the relationship has been somewhat choppy given Colombo’s treatment of Tamils of Indian origin in the northern and North Eastern Provinces and its inching closer to China, which has consciously made strategic and commercial investments in Sri Lanka. Modi is expected to visit the island nation soon.
Insofar as Bangladesh is concerned, Modi’s coming to power and with it the issue of illegal migrants from across the border raising its ugly head there has been growing apprehension about the future of the
relationship.
At a time when India and Nepal are reviewing and updating the Treaty of Peace and Friendship 1950, New Delhi has scaled up its assistance to Kathmandu to Rs 420 crore. The other countries getting aid packages include, Maldives, with assistance hiked to Rs 183 crore, distant Mongolia getting Rs 2.50 crore and Eurasian countries Rs 20 crore. In Malaysia, IRCON has recently completed a double tracking railway project of 98 km on a turnkey basis including electrification, signalling and telecommunication works at an investment of over $1 billion!
It goes without saying that with these agenda in place, Modi wants to make his debut in the neighbourhood and in the developing world felt.
By: Ashok B Sharma
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