India’s Central Asia Policy: Needs Substance Not Style

India and Central Asia Republics (CARs), had been enjoying civilizational and geo-cultural relations since the recorded history. In the 21st century, these geo-cultural ties were further cemented when India became one among the first countries to engage diplomatically with the newly independent region.

In the meantime, India has signed a number of agreements and exchanged high level visits. Thus, the Indian foreign policy has been characterized by the cordial relationship which is based on robust political, economic and cultural, technical partnership with the region.

The Central Asia region is holding geostrategic location. The CARs has been sandwiched between the two nuclear powers, China and Russia. It is a major link between Asia and Europe. It has been sharing borders with the turbulent regions and countries like the Middle East Asia, Turkey, Afghanistan and China’s Xinjiang province. Several challenges like terrorism, extremism, drug trafficking, small arms trafficking etc. are some of the problems where both the regions are at stake. Along with rich energy resources, Central Asia is also comprised of about 75 million people. Thus, from the geostrategic and geo-economic point of view, it is embedded in the Indian calculus.

Since 1990s, the India’s economy is on the higher trajectory and on account of this, it is world’s fastest growing energy market. It is also expected that India would become the second-largest importer of energy by 2035, leading to 18% of the rise in global energy consumption. The major part of its energy demand was met from the Middle East Asia. Coincidently, the Middle East Asia has become the ‘Arc of Turbulent’ with the end of the Cold War. In view of this, India has to diversify its energy sources. The Central Asia contains gigantic resources like Kazakhstan is having the world’s largest offshore oilfield. Uzbekistan and Turkmenistan are one of the world’s top gas fields.

Indian Policy Towards Central Asia

In order to heighten the political, economic and cultural ties with the Central Asian republics, India has launched several policies and official frameworks such as “Extended Neighbourhood”, “Immediate and Strategic Neighbourhood” and “Look North Policy” and the latest ‘Connect Central Asia’ to redesign its foreign policy vis-à-vis the region. These policies sound very good, but if India is compared vis-à-vis other ‘New Great Game’ powers like the China, the US and Russia, it is at the lowest ebb in terms of trade and investment.

Modifying India’s Central Asia Policy

In the year 2015, the Indian PM Modi visited the all the countries of the region. Several agreements have been with Central Asian countries. Between Kazakhstan and India, the signed agreements included nuclear deal, uranium supply agreement, defense cooperation, coordination on counterterrorism and economic and business cooperation. Between India and Tajikistan, agreements included cultural cooperation for the years 2016-18 and Exchange of Note Verbale (NV) to set up Computer Labs in 37 schools. With Uzbekistan, India has identified areas of cooperation like atomic energy, defense and trade. With Kyrgyzstan, India signed agreement like combating international terrorism and other crimes. And lastly, with Turkmenistan seven agreements have been signed like the terrorism, organized crime and illegal drug trafficking.

PM Modi’s economic diplomacy is mainly focused on energy as India’s energy needs has been growing on account of its rapid economic expansion. Indian total imports of oil and petroleum has increased from 11.68 MTs (1970-71) to 171.73 MTs (2011-12). This import is expected to grow from the current levels of 72% to 83% by 2030. The Indian Express (2015, July 11), reported that Prime Minister Narendra Modi urged the Turkmenistan President Gurbanguly Berdimuhamedov for the early implementation of the $ 10 billion TAPI gas pipeline project.

India-Central Asia: Missing Economic Link          

Trade is always taken as major criteria for determing the intensity of the relations between the two countries or the region. The trade between India and CARs during the last four years has been remained at the lowest ebb. On the contrary, the trade of the CARs vis-a-vis China, Russia and US have exponentially grown, which is stood at $50.27 billion, $31.24 billion & $33.42 billion respectively in the year of 2013 (UNCOMTRADE, 2013). Whereas on the other hand, India’s total trade in the same period is stood at US$ 1.24 billion which is comparatively smaller in size. This clearly indicates that economically, India is missing in the region.

Trade Trends of Central Asia with US, China, Russia and India ($ billions)

Source: UNCOMTRADE 2015

Challenges for Indian Foreign Policy

The lack of land connectivity between both the sides is the major challenges for Indian economic diplomacy. In order to overcome this challenge, connectivity has remained the main focus of the PM Modi. During his visit, PM Modi said,

“We can create a vast network of physical and digital connectivity that extends from Eurasia’s northern corner to Asia’s southern shores. The International North-South Transportation Corridor is a step in that direction.”

There are several other challenges being faced by the Indian foreign policy towards the Central Asia. These challenges include terrorism, small arms, drug trafficking, nuclearization, lack of land connectivity, different political regime, corruption etc. Having several policies and programs on board, the economic ties yet to take place.

Secondly, the major focus of Indian policy is to enhance energy cooperation with the region. India has been a partner of number of energy projects particularly like TAPI and IPI. The TAPI gas pipe line goes back to 1990, despite after a long time, it has not moved till date. Similarly, on account of geopolitical dynamics, IPI has also met the same fate. Despite the Iran government’s urgency of the Chabahar project, it has not been moving the speed, as it is desired by the hosting country. Similarly the International North South Transport Corridor (INSTC) signed way back in 2002, has not been initiated yet.

At last not the least, it can be concluded that despite have civilizational and geocultural ties, Indian foreign policy has not been remained successful in achieving its geo-economic and geostrategic goals in the region. Despite the economic diplomacy towards the region, the trade and investment are at the lowest ebb. The major projects like TAPI, IPI, Chabahar and INSTC are lingering on without any success till date. There are several areas, where both India and CARs having lot of potential to heighten their cooperation. Market is still untapped on both sides which is needed to be explored. Above and all, the delaying in execution of the projects of energy and connectivity, will outfox it form the ongoing the New Great Game. Thus, it is highly recommended that, India has to translate its policies and programs into reality.