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GST: Another Modi gambling for perpetual economic disorder?

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Indian PM Modi is in news again with a new economic project called GST.  GST could mean two big things, one: Global State terrorism and two, Goods and Services Tax.  While Indians are still struggling with the impact of demonetization, the Modi government has come out with yet another shock called GST.

Apparently, Modi is still eager to be in the news and he does things only to promote that goal at a heavy cost for the people of India. His foreign tours, being arranged jointly by PMO, foreign ministry and Indian embassies abroad,  are meant to boost Modi’s image as a fast running PM of India. In fact, Mod runs into wanting state plane to take him for foreign tours. He thoroughly enjoys his foreign tours, meeting big leaders and having food with them and “shake hands” photos with them for Indian media lords.

The Modi government keeps trying various economic strategies, even if for fun, that harms the people at large. But neither Modi nor BJP nor RSS is worried about the consequences of their actions. It seems the BJP regime is targeting the people of India for ignoring them for too long to offer it the mandate to rule the nation. PM Modi is also not sure if people would repose their faith in his party or government when the next general poll take place.

The Modi government thus punishes the people of India while Mod himself keeps visiting big nations as his prime hobby along with big entourage of media lords and  government officals. Modi just ignores the sentiments of Indians by going to Israel against  Indian support for the support for the Palestinians whom Israeli  state terrorists keep attacking, killing even the children there for their blood and land for illegal Jewish settlements.   

In order to make his visit to Israel easy without any criticism in India, PM Modi has launched the GST so that people of India and media are busy with the issue while he would enjoy life in Israel. 

Global State terrorism today is the universal policy of fascism and imperialism. The state terror operations perpetrated by the regimes, targeting people of their own nations or people of other countries, like US led NATO terror wars in Arab world and Afghanistan, or perpetual Israeli terror attacks on Palestine for its lands and blood of Palestinians; or say continuous Indian state attacks on Kashmiris in occupied Kashmir (already over 1000,000 Muslims have been slaughter by Indian forces in Kashmir alone), and two, the Goods and Services Tax being introduced by Indian regime aiming at a standard tax system for entire country and in every state and region. Either could destabilize the weak nations and common people and could only promote capitalism and support global imperialism.

Here we are talking about the second problem of new Indian economic law GST, relating to uniform taxes. PM Modi has called it Good and Simple Tax. But common people are puzzled as they care confused about the consequences of GST. After their disastrous experience with demonetization drive, Indians are scared f of any new shock therapies by the Modi government. Certainly, they want to live with fewer problems.

One party, one system, one religion, one tax

Taking the one time victory as the permanent vote  by Indian people, the RSS/BJP government is bent upon one  system, one party and one religion system in India. Every in India is trying for essentially a  fascist-Zionist Hindutva ideology.

A nationwide Goods and Services Tax (GST), came into effect on Saturday from midnight, has faced criticism for its complex design.  GST, being billed as the biggest tax reform since Independence, will subsume all indirect state and central levies, making India a single market. Under GST law, the producer must have to pass the added benefit of tax reduction. Businesses and their consultants have opposed it and said that it’s against the free market concept.

Union finance minister Arun Jaitley has likened the roll out of the GST – whose bill was cleared by both houses of Parliament last month after six years of stormy debate – to a revolution and the “most significant taxation overhaul in India.” PM Narendra Modi said the GST reflects the spirit of “one nation, one aspiration, one determination.” Opposition parties oppose it.

FM Arun Jaitley on June 29 asked opposition parties such as Congress and the Left to reconsider their decision to skip the midnight GST launch tomorrow saying they were all consulted on the indirect tax reform and cannot run away from it. “I hope every political party will reconsider and revisit its decision” on not participating in the launch event to be organised in the Central Hall of Parliament, he said. The government, FM Jaitley said, remains committed to the Goods and Services Tax (GST) as any other reform. “It is single most important taxation reform in 70 years.” All decision on GST, including rules and tax rates, were taken in consultation with states and political parties must display broad shoulder and own up their responsibility, he said.

The leader of Indian opposition Congress decided to keep away from the special midnight June 30 meeting convened by the government on GST implementation. Trinamool Congress has already announced its decision to boycott the event. Left parties also boycott the meeting as they reject the GST. CPI (M) general secretary Sitaram Yechury has already questioned the government on “hurrying” into introducing GST and recalled that the ruling BJP had opposed the system when it was in the opposition.

The Left parties will not take part in the special midnight meeting on June 30 convened by the government to launch the Goods and Services Tax (GST), CPI leader D Raja said today. He said the parties will not take part in the meeting in view of protest by small and medium scale entrepreneurs, traders, weavers and informal sector workers on the way the GST is being implemented. “The Left will not be participating in the midnight GST meeting. People are agitating across the county. ..We cannot be celebrating when people are agitating,” the Rajya Sabha member said.

The Modi government wants smooth rollout of the GST the 30 June in the parliament. A war room will monitor and take immediate action on a complaint. Government officials have specially alerted to thwart any attempt of cartelization or disruption in the new tax regime. The government said it will use the circular-shaped Central Hall to launch the new taxation system that is set to dramatically re-shape the over USD 2 trillion economy. A gong will be sounded at midnight to usher in the GST. Prime Minister Modi will be the key speaker at the function. President Pranab Mukherjee, who is enjoying finals days at Presidential palace with Mogul Garden, , is also likely to attend the function, where former Prime Ministers Manmohan Singh and H D Deve Gowda have been invited too. Central Board of Excise and Customs (CBEC) chief said that “The finance ministry has set up a GST feedback and action room specifically for government officials to approach it with any urgent queries related to problems of GST in any area”.

The PMO and Indian government officials have specially alerted to thwart any attempt of cartelization or disruption in the new tax regime. The government has created a ‘war room’ to monitor GST (Goods and Service Tax) implementation process, a new indirect tax system which will roll out on Saturday. In North Block, the office building of Finance ministry has allotted a space named as ‘GST Feedback and Action Room’. Former Chairman of CBEC said that “The government wants these benefits to reach the consumers through these Anti- Profiteering Rules. On the other hand, its rampant application will create chaos and serious disruptions in business”.

Equipped with multiple phone lines and computer systems and manned by tech-savvy youngsters, a “mini war room” has been set up in the Finance Ministry to deal with crises related to the implementation of GST or goods and services tax. War room is also ready for prompt action from tax evasion to technical confusion on rates to transportation related issues. War room responsibility is more crucial as the anti-profiteering body is still in the process of being.

GST- one tax and several problems

GST is not as simple as Modi and Arun want us believe. It is highly complicated at different levels. BJP, a party of  finical lords,  cannot devise any policy to multiage the poor or common people.

The GST, a worldwide accepted tax system, was first introduced by France in 1954.  Presently, around 160 countries follow the GST or VAT in some form or the other. In some countries, analysts say, VAT is the substitute for a GST, but conceptually it is a destination-based tax levied on consumption of goods and services. However, only Canada has a dual GST model, akin to what India intends doing.

Indian government wants to replace it with a more streamlined nationwide Goods & Services Tax (GST) that is hailed by many as the country’s most pathbreaking tax reform and deplored by others who fear it will turn the economy down. The new system will eliminate India’s notorious complex layers of taxation including purchase, entertainment, excise, luxury and sales taxes (VAT) and others. Analysts predict that the GST, if properly implemented, will likely bolster the country’s GDP by 2 percent.

One of the major objectives of GST is to make the tax incidence on consumers less by reducing compliance costs, removing cascading of taxes, increasing the tax base, reducing logistics costs and reducing the effective rates of taxes from the present level. Other country experiences suggest that GST led inflationary pressures in an economy because producers have refused to pass added profit to consumers.

GST law said, “Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices”. Revenue secretary Dr Hasmukh Adhia had said that “We expect companies to cooperate. We hope we don’t have to use the weapon.”

A unified tax system is likely to remove a slew of indirect taxes as well as the cascading effect of taxes. Manufacturing costs will be reduced; hence prices of consumer goods – cars, phones, FMCG goods – will also likely plummet. A unified tax regime will also be a deterrent to corruption which will benefit the common man.Other benefits include simpler administration which will ensure an easier collection of revenues, widening of the tax net and plugging of leakages and multiple taxations which will boost the government’s revenue stream and efficiency. For the consumer/tax-paying citizens, the GST would mean more transparency, proportionate taxation, relief in overall tax burdens, slightly cheaper goods and services.

India’s gold industry is optimistic that the gold supply chain will be more transparent and efficient. The GST, some hope, will also provide an edge to the travel and tourism industry by reducing costs for customers, streamlining taxes and thus promoting overall growth. Under the GST, rates finalized for air travel, flying economy will attract a 5 percent tax.

India currently has one of the worst tax-to-GDP ratios among major economies at 16.6 percent, less the half the 34 percent average for the members of the OECD and also below many emerging economies. Improved tax compliance should shore up public finances, augmenting resources for welfare and development spending and giving a lift to the $2 trillion economy.

While there is no official estimate of the potential fiscal gain, some tax experts say the measure, after the initial teething trouble, would lift the tax-to-GDP ratio by as much as 4 percentage points as the number of tax filers is estimated to more than treble to 30 million. In future, compliance is going to be extremely crucial

True, not many are interested in paying taxes and as corruption, being religiously promoted by the regime and politicians, has badly affected the tax officials as well, most pay taxes not properly.

The unorganized sector of India’s economy is vast, employing an estimated nine out of 10 workers. While staying outside the GST regime risks losing business, joining it will necessitate an overhaul of firms’ accounting systems and an investment in technology.

The new tax system requires three filing a month plus an annual return – a total of 37 filings – for each of India’s 29 states in which a firm operates. For smaller companies operating on wafer thin margins, hiring accountants and technical staff could substantially dent their bottom line. A head of portfolio management services at financial firm in Mumbai says all consumer-facing industries will be big beneficiaries of the GST

Most of those who argue for GST are also the supporters of BJP government. Only time will let the peole know the real move of GST as India has long ago under the corrupt Congress misrule mortgaged its economic policy to IMF and World Bank and increasingly work to promote American economic interests in order to gain some favors from Washington. The Hindutva fanatics are too eager to promote those “structured” relations with USA.

Of the eight million existing tax payers, 6.6 million tax assesses have already enrolled for GST. And about 1.7 lakh new applications for GST have come in. However, the silence inside the headquarters of Goods and Services Tax Network or GSTN, housed on the fourth floor of an imposing glass building aptly named World Mark I right next to Delhi’s international airport, is misleading. Behind white and blue cubicles, professionals with expertise in IT and taxation are putting in extra hours to ensure that the switch over to GST is a smooth affair. The biggest task for GSTN – a not-for-profit company set up to manage and collect indirect taxes – is to help traders and businessmen migrate to the GST platform.

Indian GST Network has developed a tool where you can work offline and upload when there is connectivity. It will take seconds to upload your returns. As the officials test and retest their programs and applications, our question “when was your last off day” made everyone burst out. “We will have to check our records,” said a former banker who’s “measuring end user results of the GST software.” “This is our national service.”

However, some chief ministers of Indian states have already expressed their dissent. How is one-nation-one-tax good politics for all 29 states and several Union territories and the center given the fact they all have diverse economic strengths and weaknesses?

Observation

GST interferes with federal arrangement and imposes its will on the states and thereby encroaches upon state rights and privileges. In other words, federal government tries to control entire nation and state resources.

One tax indeed means big problems for the people of India.  Conscious people in India feel if India has been purchased by international frauds that play with the psyche of Indians who want to see their nation a super power as soon as possible to challenge both USA and Russia while making China a non-issue. 

GST is likely to harm the common masses. GST is exorbitant. Tax is likely to increase on a massive scale. Traders are not going to reduce the prices.

Who will benefit? Any reform or policy is supposed to help the people of the nation. Corporate lords will have more profits under GST.

Once lauded as path-breaking, which is now causing rancor in the European Union.  Lesser-developed economies like Portugal, Italy, Greece and Spain have had to adopt extreme austerity measures that have sent unemployment soaring all over southern Europe. This has led many of the anti-EU states to consider a referendum on exiting the union a la Brexit.

In India too, there is a strong chance that the GST, the country’s boldest and riskiest tax reform yet, may give the ruling political establishment a greater headache than it may have bargained for.

The country’s biggest tax reform since independence is promising to bring millions of firms into the tax net, boosting government revenues and India’s sovereign credit profile. Until now, all rundown premises and small scale operation has kept the business below the radar of India’s tax officials. Since July 1, however, the party will be over. The new tax will require firms to upload their invoices every month to a portal that will match them with those of their suppliers or vendors. Because a tax number is needed for a firm to claim a credit on the cost of its inputs, many companies are refusing to buy from unregistered businesses. Those who don’t sign up risk losing any customer who has.

The nation is waiting for the real problems of GST to come to fore.

There are serious apprehensions in the minds of people over GST’s implementation. Unfortunately, India is under the grip of international frauds like the BJP MP and IPL boss Mallya. Unless corruption is contained and done away with, a new tax system won’t be fruitful. If the regime let its supporters to loot the nation’s resources and evade taxes, nothing good or positive is going to come of the envisaged tax reforms.

The GST is in fact a regressive tax, which will consume a higher proportion of poor people’s income, compared to those earning large incomes.  Many feel that imposition will also result in a surge in prices of services like telecoms, banking and airlines. If the actual tax benefit is not passed to consumers, and sellers increase their profit margin, the prices of goods will go up instead of down. Even assuming the GST delivers on the revenue front after an initial lag, one has to realize that it goes counter to the long-term trend of devolving greater powers to states.  It centralizes in the GST Council the powers of indirect taxation, and could thus be a constant source of friction between center and states, or between states if some gain or lose more than the others.

One also suspects if the governments of Congress and BJP are trying to eliminate the poor and have-nots from the Indian economic system by GST and other such measures as the IMF and World Bank, committed to capitalism and colonialism, are pressing the third world to do away all subsidies to the poor. .

The BJP government that worships cow and Israel as real gods, has been searching new ideas to boost the image of the Modi led RSS government which is shattered by false promises to the people and issues like black money and demonetization. GST therefore is crucial for the BJP government which has lost the blackmoney issue as part of gigantic demonetization drive that spelt disastrous for the common people for months and the impact is not completely worn out.

Uncertainty cannot be the foundation of any government because people suffer not knowing how to deal with new threats to their ordinary lives.

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South Asia

Into the Sea: Nepal in International Waters

Sisir Devkota

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A visit to the only dry port of Nepal will immediately captivate busy scenes with hundreds of trucks, some railway carriages and huge Maersk containers at play. Trains from the Port of Kolkata in India carry tons of Nepal’s exports every week. Every year, Nepal is fined millions of rupees for overstaying its containers at the designated dock in Haldiya Port of Kolkata. Nepal pays for spaces inside Indian ships to carry out its exports via the sea. This is the closest Nepal has come in exploiting economic opportunities through sea waters. Prime Minister KP Oli went one step further and presented an idea of steering Nepal’s own fleets in the vast international sea space. While his idea of Nepal affording its own ship was mocked; on the contrary, he was right. The idea is practical but herculean.

To start with, Nepal has a landlocked right to use international waters via a third country for economic purposes only. Law of the Sea conferences held during the 80’s, guarantees Nepal’s right to use the exclusive economic zone all around the globe. Article 69 of the Law of the Sea convention states that Nepal could both use sea as a trading route and exploit the exclusive economic zone of its sea facing neighbors. Nepal’s closest neighbor, India has a wide exclusive economic zone which consists of 7500 km long coastline. The article also allows landlocked nations to use docking facilities of the nearest coastal nation to run its fleets. An exclusive economic zone in sea waters is designated after a coastal nation’s eleven mile parallel water boundary ends; which is also a part of the coastal nations territory. Simply put, Nepali fleets can dock at India’s port, sail eleven miles further into international waters-carry out fishing and other activities, sail back to the Indian coast and transfer its catches back to Nepal.

Floating Challenges

Before ships can carry the triangular flag into sea waters, Nepal will need treaties in place to use coastal nation’s water to take off and build shipment facilities. Law of the Sea convention clearly mentions that the right to use another nation’s coast will depend solely on the will of the hosting coastal nation. Does Nepal have the political will to communicate and forge a comprehensive sea transit agreement with its coastal neighbors? Nepal’s chance of securing fleets in and around the Indian Ocean will depend on whether it can convince nations like India of mutual benefits and cancel any apprehension regarding its security that might be compromised via Nepal’s sea activity. The convention itself is one among the most controversial international agreements where deteriorating marine ecosystems, sovereignty issues and maritime crimes are at its core. Majority of global and environmental problems persist in the high seas; ranging from territorial acquisitions to resource drilling offences. Nepal is welcome into the high seas, but does it comprehend the sensitivity that clouts sea horizons? Nepal needs a diplomatic strategy, but lacking experience, Nepal will need to develop institutional capacities to materialize the oceanic dream. Secondly, the cost of operating such a national project will be dreadfully expensive. Does the Nepali treasury boast finances for a leapfrogging adventure?

How is it possible?

The good news is that many landlocked nations operate in international waters. Switzerland, as an example might not assure the Nepali case, but Ethiopia exercising its sea rights via Djibouti’s port could be inspiring. Before Nepal can start ordering its fleets, it will need to design its own political and diplomatic strategy. Nepal’s best rationale would lie in working together with its neighbors. The South Asian network of nations could finally come into use. Along with Nepal, Bhutan is another landlocked nation where possible alliances await. If India’s coasts are unapproachable, Nepal and Bhutan could vie for Bangladeshi coastlines to experience sea trading. Maldivian and Pakistani waters are geographically and economically inaccessible but Sri Lanka lies deep down the South Asian continent. If Nepal and Bhutan can satisfy Sri Lankan interests, the landlocked union could not only skim through thousands of nautical miles around the Bay of Bengal without entering Indian water space; but also neutralize the hegemonic status of India in the region. If such a multinational agreement can be sought; SAARC- the passive regional body will not only gain political prowess but other areas of regional development will also kickstart.

Most importantly, a transit route (such as the Rohanpur-Singhdabad transit route) from Bangladesh to Nepal and Bhutan will need to be constructed well before ships start running in the Indian Ocean. In doing so, Nepal will not only tranquilize Nepal-Bhutan relations but also exercise leadership role in South Asia. A regional agreement will flourish trade but will also make landlocked Nepal’s agenda of sailing through other regions of international sea strong and plausible. A landlocked union with Bhutan will trim the costs than that of which Nepal will be spending alone. Such regional compliance would also encourage international financial institutions to fund Nepal’s sea project. Apart from political leverages, Nepal’s economy would scale new heights with decreasing price of paramount goods and services. Flourishing exports and increased tourism opportunities would be Nepal’s grandiloquence. Nepal’s main challenge lies in assuring its neighbors on how its idea would be mutually beneficial. Nepal’s work starts here. Nepal needs to put together a cunning diplomatic show.

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Prime Minister Narendra Modi’s Hug Diplomacy Fails

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Prime Minister Narendra Modi’s enthusiasm is only to capture power; the same, however, cannot be said of foreign policy administration, especially in dealing with our immediate neighbors, and China. The best examples of his policy paralysis are the way in which demonetization and GSTs are implemented, or his sudden visit to Pakistan in December 2015. He is always in election mode. During the first two years, he was in the humor of a general election victory. Thereafter, he has spent much of his energy in establishing himself as the sole savior of the BJP in state elections, and this year he will turn his attention to the 2019 general elections.

Two years ago, without doing any homework or planning, Modi travelled to Pakistan from Afghanistan to greet his counterpart, the then Prime Minister Nawaz Sharif, to wish him well on his birthday. He hugged Sharif and spent only two hours with him to try to sort out the 70 year outstanding divergence between India and Pakistan.

Modi strategically hugs fellow world leaders. He has no strategic perception. He believes only in the power of his personal charisma in dealing with foreign policy matters. This strategy has failed considerably with China and with our other immediate neighbors, but he neither intends to accept these mistakes, nor is he interested in learning from them. More importantly, an alternative diplomatic strategy is necessary to maintain our international position; through prudent policy articulations. Let us examine the impact of his hug diplomacy.

During the 2013/14 general elections campaign he attacked the Congress-led UPA government on multiple fronts, including towards former Prime Minister Dr.Manmohan Singh’s policy on Pakistan. He proposed that the BJP government would have more guts to better deal with Pakistan. Under his administration, we lost numerous soldiers in fighting with Pakistan terrorists, experienced a 100-day shutdown in Kashmir, blindly allowed a Pakistan team to inspect our Pathankot Air Force Station, and generally continued down a visionless path in foreign policy. These indicate that Modi’s defensive and offensive strokes against Pakistan have failed completely, including the most politicized ‘surgical strike’ that did not contain the terrorists from Pakistan. Today, the Modi government is searching for policy directions in handling Pakistan, but sat in a corner like a lame duck.

In the beginning, when he took office, Modi perhaps believed that ‘everything is possible’ in international affairs simply by virtue of occupying the prime minister seat. Further, he thought that all his visits abroad would bring a breakthrough. His hugs with counterparts, various costume changes, and the serving of tea, indicate that our prime minister is using soft power approaches. These approaches were used by our first Prime Minister Nehru whilst India did not have a strong military or economy. However, India is not today what it was in the 1950/60s. Presently, hugging and changing costumes will not necessarily keep India influential in international relations, especially at a time when the world is undergoing multi-polar disorder. However, he is in continuous denial that his paths are wrong, especially in dealing with our neighbors.

What is the BJP led-NDA government policy on Pakistan? Does this government have any policy for Pakistan? Since 2014,Modi has not permitted the Minister of External Affairs, Sushma Swaraj, to contribute to any foreign policy articulations. As long as Sushma fulfills the duty of Ministry of Indian Overseas Affairs she will receive praise from the prime minister’s office.

During 2015 he met Sharif at his residence in Islamabad to give him a hug. This happened exactly two years ago. Further, this is a very serious question that the Media and Modi-supporting TV channels forgot to raise. Instead, without hesitation, they praised him for touching the sky, and described the moment as a diplomatic initiative for a breakthrough with our neighbor Pakistan. The Media will realize this mistake when their traditional viewers switch over to other channels to get centrist news.

What are the outcomes of Modi hugging Sharif at his residence? The results are terrible. India’s relation with Pakistan touches the lowest ever level in a history of 70 years. The Mumbai terror attack mastermind Hafiz Saeed was released from house arrest and has started a political party to contest the general elections in Pakistan next year. This government does not have the guts to put pressure on Pakistan to provide the evidence – as requested by the Pakistan’s Court – essential to keeping the trial alive against Saeed. Modi has often preached that his government succeeded in isolating Pakistan in the international domain. The reality would be as much India diplomatically isolating Pakistan from the international community as the vacuum has been comfortably filled by China without any difficulty. These are the achievements that Modi’s hugs have brought to India.

The stability of Afghanistan is in India’s long-term strategic interest. India’s ‘aid diplomacy’ to Afghanistan in various fields has been increasing day after day, including infrastructure development and the training of Afghan security forces. Yet, India’s influence in Afghanistan is in disarray. Former Afghanistan President Hamid Karzai said, “India should have its own policy on Afghanistan”. However, Modi’s policy makers in New Delhi are expecting the US President Donald Trump and Secretary of State Rex Tillerson to maintain India’s active and significant role in Afghanistan.

India showed its displeasure during the constitutional crisis in Nepal, in halting energy supply to Kathmandu. This forced the land-locked country to obtain easy support from Beijing. Nepal was once the buffer state between India and China; it is now sitting on China’s lap and steering India. Modi’s mute approach to the Rohingya crisis speculates India’s major power ambition. This is a serious setback to India’s diplomacy: it is now pushing Myanmar to get support from China, along with our neighbor Bangladesh, in resolving the crisis with Rohingya refugees.

The first democratically elected government under Mohamed Nasheed was toppled unconstitutionally in Maldives. Since India has failed to raise any substantial voice against this atrocity, China has jumped onto the scene. New Delhi ought to have designed a policy to resolve the political crisis, but India, the world’s largest democracy, has watched this incident as a movie in the Indian Ocean Theatre. The highlight was the decision of our Prime Minister to skip a visit to the Maldives whilst on his tour of the Indian Ocean islands.

In Sri Lanka, China is designing its future battlefield against India. As the war against LTTE was over, Colombo started travelling in a two-way track, with India and China. Beijing’s love affair, apparently with Colombo, but with an eye on New Delhi, is no secret. Since Modi has allowed these developments without exercising any diplomatic resistance, he has given China a comfortable seat inside Sri Lanka. China has now realised that her weaved network against India can be strengthened easily in the Indian Ocean, because New Delhi only displays silent concern. After Modi took office, India – China relations have remained static. The border talks are on stand still. Beijing holds on to extend a technical hold on Masood Azhar, a UN designated terrorist. The dragon pulls our immediate neighbors to her side. These developments indicate that our foreign policy articulations are not supported by any clear strategic trajectory.

Modi’s diplomacy is like an air balloon which, once torn, cannot be refilled; a new balloon is needed. Hugging a leader does not lead to any commitment in foreign affairs. Personal charisma does not work as a foreign policy tool in dealing with a world power. For this reason, Modi cannot understand the setback he is facing with China, Pakistan, and our other neighbors. In comparison, Vajpayee’s or Dr. Manmohan Singh’s combined simple charisma as leaders or economists with appropriate home-work in the past; has caused tremendous results in foreign policy, including expected results in Indo-US nuclear negotiations. This is completely missing in Modi’s administration.

Hence, the newly elected Congress Party President Rahul Gandhi has said, “Modi’s hug diplomacy fails”. It was a valuable comment that the ruling elite should consider as a meaningful insight. Alternative approaches are vital to regain our neighbors’ trust, as opposed to China’s. However, Prime Minister Modi’s this year of work will be focused on the 2019 general elections, compromising the proper attention due to India’s international diplomacy.

First published in Congress Sandesh

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Potential Consequences of Nuclear Politics in South Asia

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Established in 1948, Indian atomic energy commission turned towards United Kingdom for their first help in the making of Apsara. Subsequently, with a similar vision, the CIRUS reactor was supplied by Canada, where, the heavy water came from the United States.

India, over the years, has built a nuclear program that has led to the making of a number of reactors. India’s 1974 “Peaceful nuclear explosion” implies to their hegemonic ambitions as India has the capacity to produce around 300-400 nuclear weapons. The continuous upgradation of weapons by India could lead her as a hegemon nuclear power that can deeply unsettle Pakistan and China.

Calling into question India’s stated intentions, when it comes to nuclear tests, the plutonium for its 1974 and 1998 tests was diverted from its “civilian” nuclear facilities. After 1974, India continued to claim its explosion was “peaceful” and advocated global nuclear disarmament, even as it rejected proposals by Pakistan to denuclearize South Asia.

From Pokhran-I to Operation Shakti, India has traditionally relied on plutonium and thermonuclear technology. In 1992, the then Chairman of Department of Indian Atomic Energy  acknowledged that India had succeeded in the past for achieving the target of highly enriched uranium, while the centrifuge program was facing critical and technical hindrances. Also, it was admitted by the former Chairman of AEC, Raja Ramanna that India was working to produce more efficient centrifuges which were used for military purposes.  At the peak of all these developments, it is important to note that thermonuclear weapons have far more destructive power than a nuclear bomb.

India may also be considering using its civil power reactors to increase its stock of weapon-grade plutonium. Robert Einhorn, the State Department’s former top nonproliferation official told the Carnegie International Nuclear Policy Conference in March that the officials in the Bush administration had the ambition to sign a nuclear deal with India, to “work together to counter China- to be a counterweight to an emerging China.” He further expressed his views that the nuclear deal had unfortunate repercussions, because other nations concluded that Washington was playing favorites with India.

India is the only country in the region having uranium reserves that are higher than what other countries in the region hold. India has already received roughly 4,914 tons of uranium from France, Russia, and Kazakhstan, and it has agreements with Canada, Mongolia, Argentina, and Namibia for additional shipments. It also signed a uranium deal with Australia that has sparked considerable controversy at home.

This massive production of uranium annually can support its nuclear submarine program and current weapons grade plutonium production rate indirectly. These uranium reserves are enough for approx. 6-10 bombs per year.

Adding a twist to the existing fissile material build-up process, the Indo-US strategic partnership supplemented it. Under this dangerous bargain, it would continue to not only allow India to increase its fissile material but also the capacity to increase the build-up of nuclear weapon material.

Hence, the strategic stability in South Asia has been negatively impacted since the initial stages due to the hegemonic designs which India pursued with the start of CIRUS reactor. With the passage of time, the Indo-US nuclear deal and Nuclear Suppliers Group (NSG) waiver have already added more repercussions and now the discriminatory move to try to facilitate Indian NSG membership will further erode the strategic stability in South Asia.

Indian NSG membership and its potential exemption has adverse implications on non-proliferation regime. This has allowed India to expand its military program. As a result of 2008 exemption it has signed a number of agreement in nuclear domain with different countries. Interestingly, Mansoor Ahmed states that India has the capacity to utilize the uranium it is importing from these countries to produce more bombs.  The aforementioned reasons sum up India’s keenness to obtain NSG’s membership. This U.S.-backed move to make India a member of the NSG will be good neither for Pakistan nor for China, and it would set off nuclear instability in the region.

While looking at the dynamics of left alone Pakistan since late 1990’s, starting from Indo-US strategic partnership to now this geoploliticising of NSG. Consequently, this shall allow India to use all this a means of making the most optimum use of all its natural uranium stocks for weaponization. To offset the stakes, it might be prudent to have a close check on the international architects of India’s nuclear build-up. The alleged misuse of U.S. and Canadian controlled items by India must be enough to refrain from any cooperation if it is not abiding by group’s guidelines and commodity control list.

Furthermore, the more discriminatory the international nuclear order becomes, the less would be the effectiveness of deterrence and strategic balance in the region. The NSG will have to identify that India’s 1974 nuclear explosive test was the reason that nuclear supplier states established the NSG. It must also emphasize upon its commitment to uphold the principles of the nonproliferation.

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