Connect with us

South Asia

Demonetization and Indian budget 2017 – An introduction

Published

on

[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap]he BJP government in India has unveiled annual budget on February 01, trying for recovery after deadly cash crunch, unleashed by PM Modi by his shock therapy, making people feel badly stranded at a crossroads without cash and not really knowing where exactly to go for getting their own money deposited in banks.

While demonetization forces the people to deposit all their money to banks, especially in rural areas where economy is hidden, Jaitley claimed his budget is focused on increasing rural incomes and boosting infrastructure, besides ushering in long-pending reforms in the financial sector.

Prime Minister Narendra Modi’s surprise decision last November on a night as the results of US presidency poll were pouring in, to scrap high-value banknotes worth 86 percent of India’s cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments. PM Modi did find some space in international news but he could not equal or outsmart Trump’s grand victory defeating the “official candidate” Hillary. Clinton

As Gujarat CM, Modi had promised a vibrant economy during his 2014 maiden elections to parliament from Varanasi in UP, but India economy has only survived now- let alone becoming a strong one. That is below the target rate of 8 percent or more that Modi needs to create enough jobs for the 1 million young Indians who enter the workforce in India – a nation of 1.3 billion where half the population is below the age of 25.

Indian Finance Minister Arun Jaitley presented his budget as five states are going to assembly polls later this month the outcomes of which could decide the future politics of India as well as political alliances and equation. Arun Jaitley said that the impact on growth from the government’s cash crackdown would wear off soon. “We are seen as an engine of global growth,” Jaitley said as he delivered the opening remarks of his fourth budget.

Budgets are essentially statements on the status of national economy and they are meant to allocate resources for every sector of the nation and specify the sources of resources including taxes needed for developmental projects, etc. Generally the budgets remain as unfulfilled promises and project proposals as a lot of resources are being diverted and siphoned off by many “important” persons for their personal and private purposes, thereby making corruption inevitable at the source.

The budget talked about concessional tax rates being provided to those moving toward non-cash payment mechanisms, and making it mandatory for many Government transactions to move to digital, which again are important steps in this direction. The reduction of personal income tax at the lowest slab to 5 percent is more a gesture of goodwill for those who bore the pain of demonetization, rather than a big reward.

The budget makes clear the intention of the Government to fight black money and digitize the economy. Limiting the amount of cash per transaction to Rs. 3 lakh, reducing the limit of cash donations to trusts/political parties to Rs. 2,000 per person, and coming up with an innovative way of funding political parties (electoral bonds) are all excellent initiatives. The implementation, though, needs to be watched.

Jaitley’s chief economic adviser advocated slashing personal income tax and accelerating cuts in corporate tax rates. He cautioned, however, against pursuing debt-fuelled fiscal expansion. Still, economists are penciling in a federal fiscal deficit of 3.3 percent of GDP for 2017/18. That would be higher than the 3 percent pledged earlier but lower than 3.5 percent that the government has budgeted for the year soon to end.

The BJP budget has been in consistent with the government’s focus over the last two years on “fundamental” growth, rather than subsidies and loan waivers. It focused on increasing rural incomes and boosting infrastructure, besides ushering in long-pending reforms in the financial sector.

The rollout of a nationwide Goods and Services tax (GST), expected in July after years of delays, and could also weigh on economic growth. Countries that have introduced GST in the past have often faced a relative economic slowdown before the benefits of a unified tax regime feed through.

The budge, as well as the government, has not taken into account the suicides of farmers in rural areas, although the budget also provided for an additional Rs.20, 000 crores for the long-term irrigation fund under NABARD. The total allocations to rural, farm, and allied sectors saw a whopping 24 percent hike in outlay at over Rs 1, 87,000 crore.

The impetus given to affordable housing by according it the status of an ‘Infrastructure Industry’ and increasing the area eligible for affordable housing are steps in the right direction, which would ensure that more people in the country can afford to buy their own homes.

Reportedly, assets worth $7.6 trillion are stashed in tax havens across the globe. Jurisdictions known as ‘tax havens’ across the world offer powerful MNCs and rich individuals banking secrecy and the ability to sidestep financial regulations that apply to ordinary people. However, this secrecy sure hurts the public, as profits and wealth go untaxed, countries lose revenue and allocations in budgets shrink. Reportedly, assets worth $7.6 trillion are stashed in tax havens across the globe.

Not only the rich lords hoard black cash in the country, but the cross-border movement of money that is illegally earned, transferred or utilized (through trade manipulation, organized crime and corruption) or tax avoidance by multinational companies also cause over $1 trillion every year to illicit financial flows in developing countries, including India.

Double Taxation Avoidance Agreements (DTAAs) have been misused and exploited in the past, to avoid paying any taxes – resulting in double non-taxation – and re-routing black money through tax havens for investment in India. The General Anti-Avoidance Rules (GAAR) have also been adopted by the government, extends to deny double taxation avoidance benefits if deals in tax havens are found to be avoiding taxes.

The Union Budget has announced a few new laws to address financial crime – one for confiscation of property of economic offenders and another to deal with illicit deposit schemes. India will start exchanging information with other countries, and receive information regarding Indian citizens’ assets abroad starting September 2017, on an automatic and periodic basis.

Still, economists are penciling in a federal fiscal deficit of 3.3 percent of GDP for 2017/18. That would be higher than the 3 percent pledged earlier but lower than 3.5 percent that the government has budgeted for the year soon to end.

While opinions vary on how long the disruptions caused by Modi’s crackdown on untaxed and illicit wealth will last, there is near unanimity among economists that Asia’s third-largest economy needs a helping hand.

The issue of combating blackmoney was not given proper thoughts. The budget speech did not draw attention to a number of initiatives taken by the government in the past few months to curb the menace of tax avoidance.

Government of India should seek to address these loopholes in the norms of international taxation at the national level, while simultaneously support the establishment of a representative and well-resourced global tax body under the auspices of the UN.

Observations

Demonetization has only further complicated the life of common people and has not succeeded in India because basically every politician and official dealing with economic affairs are corrupt and make wealth illegally that the state defends. Black money also has not many headway in real terms because there is no visible evidence that black money is disappearing from Indian scene. Without sincere intention by officals and politicians nothing can be set right in the country- the rulers since 1947 has only added rot to Indian system which is now defunct. Importantly, no politician party seems to be sincere about abolishing corruption and black money as that could negatively affect the funding of politics and polls by the rich and corporate lords that shamelessly thrive thanks to state protection and policies in their favor.

Budget statements are just the usual gimmick to fool the poor voters.

India acclaimed to be a “bright spot” in the world economy, and Finance Minister Arun Jaitley repeated the same as he unveiled his annual budget, adding that the impact on growth from the government’s cash crackdown would wear off soon.

The BJP government’s budget has kept in pace with the economic policy of India for the last many years since the large scale privatization cum divestment program during the Congress reign with Manmohan Singh as finance minister to promote WB and IMF polices, to release the money of the state sectors for use by the private compote lords and global multinational magnets to increase their own wealth instead of taking care of welfare programs of common men.

The BJP budget this year was a usual one and as former finance minister Chidambaram said there are no real high lights. Those who had expected relief for those who suffered as Modi imposed demonetization without adequate preparation too launch his pet financial dream of ending black and other dirty money in the country. Now it is clear that the black money is here to stay no matter what measures the government adopt mainly because they only corporate lords who control the government want all these dirty cash circulation so that they could make more profits- after the objective of all governments – both elected and electionless – serve the cause of the rich and corporate lords and for which, unfortunately, common people vote a party to power.

The worst of the cash crunch is now almost over, leaving behind a shaky nation, and the government expects it to be fully cleared by the end of April. A private manufacturing survey showed business is slowly returning to normal. Still, the finance ministry forecasts that growth could dip to as low as 6.5 percent in the current fiscal year to March, before picking up slightly in the coming fiscal year to between 6.75 and 7.5 percent. That is below the target rate of 8 percent or more that PM Modi needs to create enough jobs for the 1 million young Indians who enter the workforce in India – a nation of 1.3 billion where half the population is below the age of 25.

The BJP which, like the Congress party, promotes the rich and corporate lords to sponsor cricket and IPL type joint sport exercise to keep the people under illusions, pursues the congress policies by keeping in view the goals of World Bank and IMF, denying subsides and freebies to poor and under privileged- thereby they want to remove the poor classes altogether and increase the illegal wealth of the rich. That is basic of capitalism that fuels wars of imperialism for acquiring more resources- now energy resources of West Asia.

The merging of the Railway Budget with the general budget was done seamlessly and was touted as a historic move, ridding us of the colonial era practice of separate budgets. However, the rationale for merging the railway budget with general budget this year as a new experiment has caused confusion as a separate budget for rail steadily raised the facilities and working of the sector, increasing rails and spending more resources year by year. Unlike other transport sectors, railways have achieved great strides over years and rail system today is not what it was say 10 years back. As the largest employment sector railways is also the cheapest mode of transport in India.

The nation expected the finance minister and PM Modi to give details of demonetization efforts of the fo government giving a brief about the amount of blackmoney it should get and what are the new techniques being employed to tackle this grave anti-national mischief by liquor-cricket bosses like Mallya- a BJP MP with links everywhere especially with cricket bosses and other corporate lords. The Modi government refuses to take the people into confidence on demonetization.

Perhaps, the intentions of the government to guide the country onto the path of inclusive growth are clear. While there will always be some misses and hits in the budget, the Modi Government, unlike the Congress and even Vajpayee governments that religiously promoted corruption and blackmoney as their key policy, has shown the political will to fight corruption and black money, which have become strong appendages of our economy.

Taxes the major revenues for the governments but the Modi government is eager to be sympathetic to big business houses with tax rebates. The minister’s roadmap in the FY-2015 budget promised to reduce the corporate tax rate to 25% within four years, even after three years.

In a difficult year, represented by growing global uncertainties, lower economic growth at home and increasing oil and commodity prices, the finance minister has done to sticking to the fundamentals and doing what is good for the economy, rather than for the vote bank.

While avoiding populist measures and focusing on investment activities that have a multiplier effect, Arun has also tried to garner additional resources through higher tax compliance, rather than higher tax rates. In fact, contrary to popular expectation, the definition of long term capital gains for property transactions was brought down to two years from three years.

Continue Reading
Comments

South Asia

India’s multi-alignment: the origins, the past, and the present

Published

on

rouhani-iran

In the initial two decades following India’s independence, India’s foreign policy was heavily determined by the personal predilections of its first Prime Minister Jawaharlal Nehru and his protégé VK Krishna Menon, both influenced by British socialism. Nehru himself handled the external affairs portfolio until his death in 1964.

The policy of ‘non-alignment’ which the duo initiated in India’s foreign policy gained world-wide attention since early 1950s, which later became a full-fledged movement and forum of discussion in 1961 (NAM) that consisted of developing and newly decolonised nations from different parts of the world, primarily from Asia, Africa, and Latin America.

But, the policy never meant isolationism or neutrality; rather it was conceived as a positive and constructive policy in the backdrop of the US-USSR Cold War, enabling freedom of action in foreign and security policies, even though many of the individual NAM member states had a tilt towards the Soviet Union, including India.

However, the lofty Nehruvian idealism of India’s foreign policy in its initial decades was not successful enough in integrating well into India’s security interests and needs, as it lost territories to both China and Pakistan during the period, spanning 1947 to 1964.

However, when Indira Gandhi assumed premiership, realism had strongly gained ground in India’s political, diplomatic and military circles, as evident in India’s successful intervention in the liberation of Bangladesh in 1971.

Even at that point of time, India still sticked on to the policy of non-alignment until it was no longer feasible in a changed international system that took shape following the end of the Cold War, which is where the origins of a new orientation in India’s foreign policy decision-making termed as ‘multi-alignment’ lies.

Today, India skilfully manoeuvres between China-led or Russia-led groupings such as the BRICS (Brazil, Russia, India, China, and South Africa) and the Shanghai Cooperation Organisation (SCO), along with its involvement in US-led groupings such as the Quadrilateral Security Dialogue (or the Quad), in which Japan and Australia are also members.

Militarily though, India is still not part of any formal treaty alliance, and is simultaneously part of a diverse network of loose and issue-specific coalitions and regional groupings, led by adversarial powers, with varying founding objectives and strategic imperatives.

Today, non-alignment alone can no longer explain the fact that recently India took part in a US-chaired virtual summit meeting of the Quad in March 2021 and three months later attended a BRICS ministerial meet, where China and Russia were also present.

So, how did India progress from its yesteryear policy of remaining equidistant from both the US-led and Soviet-led military blocs (non-alignment) and how did it begin to align with multiple blocs or centres of power (multi-alignment)? Answer to this question stretches three decades back.

World order witness a change, India adapts to new realities

1992 was a watershed year for Indian diplomacy. A year back, the Soviet Union, a key source of economic and military support for India till then, disappeared in the pages of history, bringing the Cold War to its inevitable end.

This brought a huge vacuum for India’s strategic calculations. Combined with a global oil shock induced by the First Gulf War of 1990 triggered a balance of payment crisis in India, which eventually forced the Indian government to liberalise and open up its economy for foreign investments and face competition.

India elected a pragmatic new prime minister in 1991 – PV Narasimha Rao. The vision he had in mind for India’s standing in the world was quite different from his predecessors. Then finance minister and later PM, Dr Manmohan Singh announced in the Indian Parliament, “No power on earth can stop an idea whose time has come”.

This was during his 1991 budget speech and it marked the beginning of building a new India where excessive control of the state on economic and business affairs seemed no longer a viable option.

At a time when Japan’s economy was experiencing stagnation, China was ‘peacefully rising’, both economically and industrially. The United States remained as the most influential power and security provider in Asia with its far-reaching military alliance network.

As the unipolar world dawned proclaiming the supremacy of the United States, PM Rao steered Indian foreign policy through newer pastures, going beyond traditional friends and partners like Russia.

In another instance, 42 years after India recognised Israel as an independent nation in 1950, both countries established formal diplomatic ties in 1992. Indian diplomats accomplished a task long overdue without affecting the existing amicable ties with Palestine.

In the recent escalation of the Israel-Hamas conflict, it is worth noting that India took a more balanced stance at the United Nations, which was different from its previous stances that reflected an open and outright pro-Palestine narrative.

Today, India values its ties with Israel on a higher pedestal, even in areas beyond defence and counter-terrorism, such as agriculture, water conservation, IT and cyber security.

Breaking the ice with the giant across the Himalayas

China is a huge neighbour of India with which its shares a 3,488-km long un-demarcated border. Skirmishes and flare-ups resulting from difference in perception of the border and overlapping patrolling areas are a regular occurrence in this part of the world.

For the first time after the 1962 war with China, which resulted in a daunting defeat for India, diplomatic talks for confidence-building in the India-China border areas were initiated by the Rao government in 1993, resulting in the landmark Agreement on the Maintenance of Peace and Tranquillity along the Line of Actual Control (LAC), the defacto border between India and China.

The agreement also provided a framework for ensuring security along the LAC between both sides until a final agreement on clear demarcation of the border is reached out. The 1993 agreement created an expert group consisting of diplomats and military personnel to advise the governments on the resolution of differences in perception and alignment of the LAC. The pact was signed in Beijing in September 1993, during PM Rao’s visit to China.

Former top diplomat of India Shivshankar Menon noted in one of his books that the 1993 agreement was “the first of any kind relating specifically to the border between the Republic of India and the People’s Republic of China … It formalized in an international treaty a bilateral commitment by India and China to maintain the status quo on the border. In effect, the two countries promised not to seek to impose or enforce their versions of the boundary except at the negotiating table.”

The 1993 pact was followed by another one in 1996, the Agreement on Military Confidence-Building Measures. The following two decades saw a number of agreements being signed and new working mechanisms being formalized, even though two major standoffs occurred in the Ladakh sector in 2013 and 2020 respectively and one in between in the Sikkim sector in 2017.

The agreements served as the basis upon which robust economic ties flourished in the 2000s and 2010s, before turning cold as a result of Chinese aggression of 2020 in Ladakh. However, the 1993 agreement still was a landmark deal as we consider the need for peace in today’s increasingly adversarial ties between the two nuclear-armed Asian giants.

Integrates with Asia’s regional architecture

Before the early 1990s, India’s regional involvements to its east remained limited to its socio-cultural ties, even though the region falls under India’s extended neighbourhood, particularly Southeast Asia. But, since 1992, when the Look East Policy (LEP) was formulated under the Rao government, India has been venturing into the region to improve its abysmal record of economic and trade ties with countries the region.

New Delhi began reaching out to the ASEAN or the Association of Southeast Asian Nations in 1992 and was made a Sectoral Partner of the association in the same year. Thus, India kicked-off the process of its integration into the broader Asian regional architecture.

In 1996, India became a member of the ASEAN Regional Forum, a key platform for talks on issues of security in the wider Indo-Pacific region. India became ASEAN’s summit-level partner in 2002 and a strategic partner in 2012.

A free trade agreement (FTA) was agreed between ASEAN and India in 2010. And in 2014, the erstwhile LEP was upgraded into the Act East Policy (AEP). Today, the ASEAN region remains at the centre of India’s evolving Indo-Pacific policy.

Bonhomie with the superpower across the oceans, the United States

1998 was an important year, not just for India, but for the world. Until May that year, only the five permanent members of the United Nations Security Council possessed nuclear capabilities. That year, ‘Buddha smiled again’ in the deserts of India’s Rajasthan state, as India under PM Atal Bihari Vajpayee successfully conducted a series of underground nuclear bomb tests, declaring itself a nuclear state, 24 years after its first nuclear test in 1974 code-named ‘Smiling Buddha’.

The move surprised even the US intelligence agencies, as India managed to go nuclear by bypassing keen US satellite eyes that were overlooking the testing site. Shortly after this, Pakistan also declared itself a nuclear state.

India’s nuclear tests invited severe international condemnation for New Delhi and badly affected its relationship with Washington, resulting in a recalling of its Ambassador to India and imposed economic sanctions, which was a big blow for India’s newly liberalised economy.

But, a bonhomie was reached between India and the US in a matter of two years and then US President Bill Clinton visited India in March 2000, the first presidential visit since 1978. The Indo-US Science and technology Forum was established during this visit and all the sanctions were revoked by following year.

Bharat Karnad, a noted Indian strategic affairs expert, notes in one his books that, “Vajpayee’s regime conceived of ‘strategic autonomy’ to mask its cultivating the US, which resulted in the NSSP”.

The Next Steps in Strategic Partnership (NSSP) between the US and India was launched in January 2004 that covered wide ranging areas of cooperation such as nuclear energy, space, defence and trade. This newfound warmth in Indo-US relations was taken to newer heights with the conclusion of the landmark civil nuclear deal between 2005 and 2008.

Today, India is a key defence partner of the United States, having signed all the four key foundational pacts for military-to-military cooperation, the latest being the Basic Exchange and Cooperation Agreement (BECA) for geo-spatial cooperation, signed in October 2020. The two countries are key partners in the Quad grouping and share similar concerns about an increasingly assertive China in the Indo-Pacific region.

Like his predecessors, Prime Minister Narendra Modi has been trying to cultivate this special relationship with the United States, reinforced by cooperation in the Quad grouping and also by constantly engaging a 4.8-million strong Indian diaspora in the United States.

The leaders of both countries, from Vajpayee to Modi and from Clinton to Trump have reciprocated bilateral visits to each other’s countries. And, India looks forward to the Biden-Harris administration for new areas of cooperation.

But, a recent military manoeuvre in April, this year, by a US Navy ship (which it calls a FONOP or Freedom of Navigation Operation) in India’s exclusive economic zone, off Lakshadweep coast, casted a shadow over this relations.

The US openly stated in social media that it entered the area without seeking India’s prior consent and asserted its navigational rights. This invited mixed reactions, as it was highly uncalled for. While some analysts consider it humiliating, others think that the incident occurred due to the difference of perceptions about international maritime law in both countries.

Today, along with the US, India skilfully manages its ‘historical and time-tested’ ties with Russia, a strategic foe of the US, and moves forward to purchase Russian-made weapon systems, such as the S-400 missile defence system, even after a threat of sanctions. But, in the past several years, India has been trying to diversify its defence procurements from other countries such as France and Israel and has been also promoting indigenisation of defence production.

A BRICS formula for responsible multilateralism

India is a founding member of the BRICS grouping, formalised in 2006, now consisting of Brazil, Russia, India, China, and South Africa – the emerging economies of that time with a potential to drive global economic growth and act as an alternate centre of power along with other groupings of rich countries such as the G-7 and the OECD (Organisation for Economic Co-operation and Development).

India always stood for a responsible global multilateral system and rules-based order. Indian leaders have attended all summit-level meetings of BRICS since 2009 unfailingly. Last year, the summit took place in the backdrop of India-China border standoff in Ladakh, under Russia’s chair, a common friend of both countries, where the leaders of India and China came face-to-face for the first time, although in virtual format.

The primary focus of BRICS remains economic in nature, but it also takes independent stances on events occurring in different parts of the world. The grouping also established a bank to offer financial assistance for development projects known as the New Development Bank (NDB) based in Shanghai, China, in 2014, with an Indian as its first elected president.

BRICS also became the first multilateral grouping in the world to endorse the much-needed TRIPS waiver proposal jointly put forward by India and South Africa at the World Trade Organisation (WTO) to suspend intellectual property rights on Covid vaccine-making during the duration of the pandemic to provide developing countries that lack adequate technologies with means to battle the virus.

As India gears up to host this year’s upcoming BRICS summit, there is no doubt that being part of the grouping has served the country’s interests well.

Manoeuvring the SCO, along the shores of the Indo-Pacific

The SCO or the Shanghai Cooperation Organisation is a regional organisation consisting of eight Eurasian powers, largest in the world both in terms of land area and population covered. It stands for promoting mutual cooperation and stability, where security issues can be freely discussed and conflicts are attempted to be resolved.

India is not a founding member of the SCO, which was created in 2001. Both India and Pakistan were admitted as full members in 2017. The grouping’s members also include Russia, China and four Central Asian countries, excluding Turkmenistan.

Sharing a common platform with Pakistan and China and the presence of a long-term friend, Russia, has helped India diplomatically in key occasions. Using the SCO platform, the existing differences between member states can be discussed and prevented from escalating into major conflicts.

This was evident most recently visible in 2020 when the foreign ministers of India and China agreed on a plan for the disengagement of Indian and Chinese troops from the LAC, as a major step in the diffusion of tensions in Ladakh that had erupted since May that year.

But, Russia and China collectively oppose the usage of the term ‘Indo-Pacific’, something that surfaced into political discourse with the famous speech delivered by the former Japanese Prime Minister Shinzo Abe in August 2007 in the Parliament of India, calling for “the confluence of two seas” and hinting at a new maritime continuum of the Indian and Pacific Oceans.

It is in this context that the grouping of India, Japan, Australia and the United States gained prominence. The four Quad countries came together to offer humanitarian assistance following the 2004 Indian Ocean tsunami, the ambit of the grouping’s co-operation ranges from maritime security to cooperation in Covid vaccine production and distribution.

After a decade since the first joint naval exercise of the four Quad countries took place in 2007, the ASEAN’s Manila summit in 2017 provided a platform for the four countries to connect with each other and enhance consultations to revive the four-nation grouping.

The Quad has been raised to the summit level now with the March 2021 virtual summit, and has also conducted two joint naval exercises so far, one in 2007 and the other in 2020. This loose coalition is widely perceived as a counterweight to an increasingly assertive China.

India is the only country in the Quad that shares a land border with China. At the same time, India is also the only country that is not a formal security ally of the United States, meaning if India quits, the Quad ceases to exist, while the other three countries can still remain as treaty allies. However, setting the US aside, cooperation among the other three Quad partners has also been witnessing a boom since the last year.

India and Japan have expanded co-operation in third countries in India’s neighbourhood such as Sri Lanka, Bangladesh and Myanmar to improve connectivity and infrastructure in the region and offer an alternative to China’s trillion-dollar Belt and Road Initiative, which is perceived as having implications of a potential debt-trap aimed at fetching strategic gains.

Amid the pandemic, both the countries have joined hands with Australia to launch a Supply Chain Resilience Initiative (SCRI) to diversify key supply chains away from China.

However, India doesn’t perceive a free and open Indo-Pacific as an exclusionary strategy targeted at containing some country, rather as an inclusive geographic concept, where co-operation over conflict is possible. This was articulated by Prime Minister Modi in 2018 at the Shangri La Dialogue in Singapore.

Various additions were made to this view in later stages, as the concept evolved into a coherent form, representing New Delhi’s expanding neighbourhood. This vision aligns well with related initiatives such the Security and Growth for All in the Region (SAGAR) and the Indo-Pacific Oceans Initiative (IPOI), aimed at improving maritime security, trade, connectivity and management of shared resources.

The future

For India, this is an era of complex multi-alignment, different from the Cold War-era international system, where multiple centres of power exist. At different time periods in the past, India has adapted well to the changing circumstances and power dynamics in the international system.

India’s strategic posture today, despite being aspirational, is to have good relations with all its neighbours, regional players, and the major powers, to promote rules-based order, and in the due process to find its own deserving place in the world.

In July, last year, India’s External Affairs Minister, S. Jaishankar has made it clear that India ‘will never be part of an alliance system’, even though a tilt towards the US is increasingly getting visible, taking the China factor into account. Jaishankar also stated that global power shifts are opening up spaces for middle powers like India.

As the world tries to avoid another Cold War, this time between the United States and China, the competing geopolitics of the Eurasian landmass and the Indo-Pacific maritime region is poised to add up to New Delhi’s many dilemmas in the coming years.

Continue Reading

South Asia

The unrecognized demographic situation of West Bengal and consequences yet to occur

Published

on

World’s second large demographic nation India’s state West Bengal is now apparently residence of over 91 million population. At the same time, West Bengal is the fourth-most populous state and the fourteenth-large state by area in India. It is also the seventh-most populous country subdivision of the world. To get an insight into the present situation of West Bengal anyone has to look back in 1947 and later consequences. As being a prominent ethnocultural region of India, West Bengal faced political partition in the year 1947 in the wake of the transformation of British India into two separate independent nations India and Pakistan.  Under the process of partition, the then Bengal province was bifurcated into two segments. The predominately Hindu living area named West Bengal, a state of India, and the predominately-Muslim living area turned as East Bengal and after becoming a province of Pakistan that renamed as East Pakistan and later in 1971, the Muslim-majority country of Bangladesh.

In 1971 at the time of partition, the Muslim population of West Bengal counted 12% and the Hindu population of East Bengal remained 30%. While at present, with continuous Muslim immigration, Hindu persecution, conversions, and less production of offspring, West Bengal’s Muslim population has increased to 30% (up to 63% in some districts). While as per the counting report of 2011 Bangladesh’s Hindu population has decreased to 8%. When at the present situation for Hindus in Bangladesh is certainly dire, then life has become increasingly difficult for Hindus in West Bengal, having a Muslim-appeasing government. The governance of the elected government led to the demographic and cultural shifts in West Bengal. Prevailing of the same governance after the 2021 Bidhansabha election leads to the destruction of Hindu’s belonging everywhere in Bengal. The situation stood worse in the outskirts where media coverage is poor, compelling Hindu families to flee in adjacent states or to hide. A sizable number of Bengali Hindu families already preferred to shift to Assam.

Looking back as per a striking report of July 2014 by Times of India fewer children were born in Bengal and the prediction was there will be even fewer in the next generation. The 2011 Census shows a decadal growth of 13.84% in West Bengal, which was significantly below the national growth average of 17.7%, and the decadal growth was lowest ever and beaten only by the aftermath of the infamous Famine of  Bengal,1942.

While the retrospective study of the demography of West Bengal shows that the culturally dominant Hindu population in West Bengal during the first census of 1951 was around 19,462,706 and in the 2011 census it had increased to 64,385,546. While the percentage of the Hindu population in the state decreased from 78.45% in 1951 to 70.54% in the 2011 Census. The data sharply indicates fewer children birth within families of Hindus only while the population of Muslim counterparts tends to grow over time. Once considered a symbol of Indian culture, what has happened in Bengal for the last few decades is the indicator of West Bengal’s demographic future.

Starting from the diminishing of the Hindu culture, communal riots against the Hindus have started happening for quite some time and the situation has been that the banning of celebrating the festivals of Hindus has started in the last few years. Added to those the recent genocide of Hindus depicting a recent trend of population.

Back in 2015 the famous American journalist Janet Levy has written an article on Bengal and the revelations that have been made in it state that Bengal will soon become a separate Islamic country. Janet Levy claims in her article that civil war is going to start soon in Bengal after Kashmir. Which almost begun in recent times in the wake of the Bidhansabha Election of West Bengal.   

Ushering the prediction of Janet Levy mass Hindus will be massacred and demanded a separate country.

She cited the facts for his claim back in 2015 that the Chief Minister of West Bengal has recognized more than 10,000 madrassas who were privileged to receive funds from Saudi Arabia and made their degree eligible for a government job, money comes from Saudi and in those madrassas, Wahhabi bigotry is taught.

In the recent past Chief Minister started several Islamic city projects where Islamic people are taught also started a project to establish an Islamic city in West Bengal. It’s evident that Chief Minister has also declared various types of stipends for the Imams of mosques but no such stipends were declared for Hindus primarily. Janet Levy has given many examples around the world where terrorism, religious fanaticism, and crime cases started increasing as the Muslim population increased. With increasing population, a separate Sharia law is demanded at such places, and then finally it reaches the demand of a separate country.

Author and activist Taslima Nasreen once became reason to test the ground reality for West Bengal.

In 1993, Taslima Nasreen wrote a book ‘Lajja’ on the issue of atrocities on Hindus in Bangladesh and forcibly making them Muslims.

After writing the book, she had to leave Bangladesh facing the threat of bigotry. The author settled in Kolkata considering that she will be safe there as India is a secular country and the constitution also provided the freedom of expression. Eventually experienced the nightmare that Taslima Nasreen had to face a riot-like situation against her in 2007 in Kolkata. Even in a secular country like India, Muslims banned Taslima Nasreen with hatred. Fatwas issued to cut her throat on the secular land of India.

Upholding the threat the author was also attacked several times in different cities of the country.

But the secular Leftists never supported Taslima, not even the Trinamool government of West Bengal because the Muslims would get angry and the vote bank would face shaking.

That time first attempt was made in which Muslim organizations in West Bengal demanded the Islamic blasphemy (Blasfamie) law. Raising questions on India’s secularism and action of secular parties.

Janet Levy further wrote that for the first time in 2013 some fundamentalist Maulanas of Bengal started demanding a separate ‘Mughalistan’. In the same year riots in Bengal, houses and shops of hundreds of Hindus were looted and many temples were also destroyed by rioters under the safe shelter of government and police.

After the Bidhansava Election 2021 the Hindus of West Bengal facing the same or even worse situation.

Are Hindus boycotted?

Victorious party supremo of West Bengal was afraid that if the Muslims were stopped they would get angry and would not vote and after getting freshly elected her government falls into that vicious circle again.

It is evident from the aftermath of the election result in West Bengal that not only riots but to drive away Hindus, in districts where there are more Muslims, boycotting Hindu businessman. In the Muslim majority districts of Malda, Murshidabad, and North Dinajpur, Muslims do not even buy goods from Hindu shops. This is the reason why a large number of Hindus have started migrating from West Bengal like Kashmiri Pandits, here Hindus leaving their homes and businesses and moving to other places. These are the districts where Hindus have become a minority.

Invoking such incidents Janet, stated that the demand for partition of Bengal from India will soon begin from the land of West Bengal. No demographic theorist interpreted the present demographic situation of West Bengal sabotaging Malthusian theory.

In accord with Janet’s analysis, a few recent sources also indicated the number of the Muslim population, in reality, is much higher than the number on record given to the hiding of numbers of children by Muslim parents when a survey takes place. Implementing CAA, NRC could have been way out for West Bengal to check the proper demographic status and to prevent further population explosion to sustain Bengali Hindus. Perceiving the appeasement politics of government for the last 10 years it’s seeming to be unlikely to get any sharp solution. 

Continue Reading

South Asia

Covid-19 has made Feminist Foreign Policy all the more Relevant to India

Published

on

Photo: Amit Ranjan/Unsplash

As the impact of the year long COVID19 pandemic continues to be felt across different parts of India—where patriarchy is entrenched in the social code and inequalities against women are being intuitively practised—the repercussions of the health crisis along with the ever deepening gender gaps are being disproportionately and severely borne by women. Yet, most of the discussions revolving around the pandemic have either been gender-blind or gender-neutral, often resulting in the systemic subjugation or marginalisation of women.

In light of these challenges, the thematic debate on gender equality can no longer continue just on papers, it in fact, needs to be converted into actions by the Indian government in order to deal with the short term consequences of the pandemic as well as to develop long-term sustainable peace. The adoption of a Feminist Foreign Policy (FFP) framework is the best way to achieve this dual goal. A FFP could offer a concrete opportunity for India to build a more inclusive policy making set-up; breakaway from the predominant patriarchal notions; and, address pandemic relief strategies—from the viewpoint of women and other vulnerable or under-represented sections of society.

Gendered Impact of COVID19 in India

Within India’s socio-cultural and economic realms—that have historically been marred by inequalities and rigid stereotypes—the gendered effects of the COVID19 pandemic have been both, intersectional and complex.

To begin with, owing to the rapidly increasing number of COVID-19 patients, health-care workers in India, particularly the nurses of whom approximately 88.9 per cent are women remain much more vulnerable to contracting the deadly virus. The existing problem of shortage of basic equipment for these healthcare workers further aggravates these concerns.

Second, the pandemic has had a detrimental impact on an already shrinking Indian economy resulting in financial cut downs and rising unemployment. Women—either due to the deeply embedded patriarchal attitudes or due to the subconscious bias that arises out of such attitudes—have stood at the forefront of being temporarily or permanently laid-off from their jobs. According to the Centre for Monitoring Indian Economy, with the commencement of the nationwide lockdown, the rate of unemployment reached 23.5 per cent in March to April 2020 with higher shares of unemployed women. The unemployment rate for women further reached 12.39 per cent as of February 2021.

Third, women in India are now being confronted with a shadow pandemic where forced proximity, isolation, increased substance abuse, lack of access to justice etc. during the on-going health crisis has resulted in an increasing threat of domestic or gender-based violence.  As per a set of data released by the National Commission of Women in April 2020, there was an almost 100 per cent increase in domestic violence during the lockdown.

Nonetheless, these are only some of the immediate effects of the pandemic on women in India. There are other sequential consequences that will emerge in time including, the problems of depletion in savings and assets, pandemic-related widowhood, etc., which would collaboratively make recovery extremely difficult for women.

Evidently, in India, the pandemic is exploiting pre-existing economic and social inequalities along with social norms that give men embedded advantages, and has been posing a real threat to closing gender gaps. In fact, according to the recent World Economic Forum’s Global Gender Gap index, India has already slipped down 28 spots to rank 140th among 156 countries in comparison to its 112th position among 153 countries for the year 2019-2020.

But despite bearing a differential impact, women in India have not been included either directly or indirectly in the development of response strategies to deal with COVID19. As such, they remain absent from decision-making tables that involve the shaping of the future of our societies. However, research indicates that the inclusion of women along with other diverse voices makes for better options in policy making and in bringing about comprehensive outcomes that accommodate the needs and concerns of all groupings.

How can a FFP help?

These unfortunate states of affairs demand an adjustment in India’s thinking and strategy, bring about a paradigmatic shift in its traditional policymaking and allow for diverse representation to effectively deal with COVID19 pandemic. The present crisis is therefore, precisely the time to be talking about a FFP in India and for its representatives to make a stronger commitment to mainstream gender at the policy level.

By critically reflecting on the existing international power structures, a FFP framework focuses on protecting the needs of marginalised and female groups and places issues of human security and human rights at the heart of discussions. In doing so, it provides a fundamental shift from the conventional understanding of security to include other arena of foreign policy such as economics, finance, environment, health, trade etc.

With this new perception of health risks and crisis management as a security threat, in light of the coronavirus pandemic, India can potentially explore broadening the humanitarian trade options under its international arrangements to address shortages of medicine and lack of access to personal protective equipment for health workers within its territory— a vast majority of which continue to be women.

The adoption of a FFP could also pave the way for an increased regional cooperation, facilitate regional discussions on myriad issues and enable the development of targeted recovery program designed specifically for the empowerment of women. Such a program would account for the fact that the economic repercussions of crises disproportionately affect women and therefore, help India in securing assistance from its neighbour to address the gendered economic and social effects of the COVID19 pandemic.

Besides, FFP does not only mean considering power structures and managing relations at the global level alone but also evaluating outcomes within the country’s own domestic landscape. In this sense, a FFP could provide India with an important starting point for bringing about an internal shift by focusing more on gender issues, especially in terms of the strictly defined patriarchal gender roles and eliminate barriers that continue to restrict women’s participation in decision-making processes.

An emphasis on women’s participation in India’s leadership positions would in turn catalyse the application a gender lens to the process of domestic policymaking, thereby, achieving comprehensive outcomes that are inclusive of diverse perspectives. Such policies will promote women’s concerns as humanitarian issues, prioritize and safeguard the continuum of sexual and reproductive health and rights, and continue to facilitate the provision of information and education, thus making women better equipped to deal with the consequences of the pandemic.


Adding on to these factors, given that the FFP is an all-inclusive approach, its application could also potentially strengthen cooperation between the Indian government and civil society organisations or women’s network at home as well as abroad to manage the pandemic and its deleterious effect on people, especially women. At a time when the government resources are overwhelmed in their fight against the pandemic, greater involvement of civil society organisations can in fact, play a critical role in advocating social justice, women’s rights, social equity, and provide medical and food support, distribution of hygiene kits, spreading awareness about the virus, etc. These efforts could bring about a considerable improvement in women’s vulnerable position under the current Covid19 crisis in India.

Conclusion

As such, the FFP approach offers huge potential to address some the major institutional and organisational injustices against women in India, and the COVID19 pandemic represents a critical juncture in this regards. A FFP is important not only to ensure that the gendered imbalances inflicted by COVID19 do not become permanent but also for the long term economic and social development of the country, the strengthening of democratic institutions, and the advancement of national security as well as peace. But whether India will adopt or even consider moving towards a FFP in the near future remains to be seen.

Continue Reading

Publications

Latest

Trending