Connect with us

South Asia

GST: Another Modi gambling for perpetual economic disorder?

Published

on

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.

Continue Reading
Comments

South Asia

Pakistan, Quo Vadis?

Published

on

Pakistan’s place in a new world order is anybody’s guess. Recent policy moves suggest options that run the gamut from a state that emphasizes religion above all else to a country that forges a more balanced relationship with China and the United States.

The options need not be mutually exclusive but a populous, nuclear-armed country whose education system is partially anchored in rote learning and memorization of the Qur’an rather than science is likely to raise eyebrows in Washington and Beijing.

Pakistan has long viewed its ties to China as an unassailable friendship and strategic partnership China but has recently been exploring ways of charting a more independent course.

Relations between Islamabad and Beijing were bolstered by an up to US$60 billion Chinese investment in the China Pakistan Economic Corridor (CPEC), a cornerstone of the People’s Republic’s infrastructure, transportation, and energy-driven Belt and Road Initiative.

Deeply indebted to China as a result of the Belt and Road that has significantly contributed to electricity supply and transportation infrastructure, Pakistan will have to tread cautiously as it explores the margins of its manoeuvrability.

Nevertheless, suggesting that CPEC may not live up to its promise to significantly boost the country’s position as a key Belt and Road maritime and land transportation hub, Pakistan recently agreed with Saudi Arabia to shy away from building a US$10 billion refinery and petrochemical complex in the port of Gwadar, long viewed as a Belt and Road crown jewel. The two countries are looking at the port city of Karachi as an alternative.

Gwadar port has been troubled for years. Completion of the port has been repeatedly delayed amid mounting resentment among the ethnic Baloch population of the Pakistan province of Balochistan, one of the country’s least developed regions. Work on a fence around the port halted late last year when local residents protested.

Building the refinery in Karachi would dent Chinese hopes of Gwadar emerging as a competitive hub at the top of the Arabian Sea. Doubts about Gwadar’s future are one reason why landlocked Tajikistan, as well as Afghanistan, are looking at Iranian ports as alternatives.

Saudi Arabia and Pakistan initially agreed on building the refinery in Gwadar in 2019 during a visit by Saudi Crown Prince Mohammed bin Salman. A Saudi-funded feasibility study has since suggested that Gwadar lacks the pipeline and transportation infrastructure to justify a refinery. The refinery would be cut off from Karachi, Pakistan’s oil supply hub.

In a similar vein, Pakistan has been discussing a possible military base in the country from which US forces could support the government in Kabul once the Americans leave Afghanistan in September under an agreement with the Taliban.

Washington and Islamabad appear to be nowhere close to an agreement on the terms that would govern a US military presence in Pakistan but the fact that Pakistan is willing to entertain the notion will not have gone unnoticed in Beijing.

Pakistan borders on China’s troubled province of Xinjiang, home to Turkic Muslims who face a brutal Chinese attempt to squash their religious and ethnic identity.

China fears that Pakistan, one of the few countries to have witnessed protests against the crackdown in the early days of the repression, could be used by Turkic Muslim militants, including fighters that escaped Syria, as a launching pad for attacks on Chinese targets in the South Asian country or in Xinjiang itself.

The notion of Pakistan re-emerging as a breeding ground for militants is likely to gain traction in Beijing as well as Washington as Pakistan implements educational reform that would Islamicize syllabi across the board from primary schools to universities. Critics charge that religion would account for up to 30 per cent of the syllabus.

Islamization of Pakistani education rooted in conservative religious concepts contrasts starkly with moves by countries like Saudi Arabia and the United Arab Emirates to de-emphasize religious education and ensure that it is more pluralistic. The two Gulf states have positioned themselves as proponents of moderate forms of Islam that highlight religious tolerance while supporting autocratic rule.

“Pakistan is an ideological Islamic state and we need religious education. I feel that even now our syllabus is not completely Islamized, and we need to do more Islamization of the syllabus, teaching more religious content for the moral and ideological training of our citizens,” asserted Muhammad Bashir Khan, a member of parliament for Prime Minister Imran Khan’s ruling party.

By implication, Mr. Khan, the parliamentarian, was suggesting that Pakistan was angling for a conservative leadership role in the Muslim world as various forces, including Saudi Arabia, the UAE, Turkey, Iran and Indonesia compete for religious soft power in what amounts to a battle for the soul of Islam.

The educational reform boosts Prime Minister Khan’s effort to be the spokesman for Muslim causes. The prime minister has accused French President Emmanuel Macron of peddling Islamophobia and demanded that Facebook ban expressions of anti-Muslim sentiment.

Critics warn that the curriculum will produce anything but a society that is tolerant and pluralistic.

Said education expert Rubina Saigol: “When the state aligns itself with one sect or a singular interpretation of religion, it opens the doors to sectarian conflict, which can turn violent… There is lip service to the ideas of diversity, inclusion and mutuality but, in reality, an SNC that is gender-biased, sectarian and class-based, will sharpen social differences, undermine minority religions and sects, and violate the principles of federalism.” Ms. Saigol was referring to Prime Minister Khan’s Single National Curriculum project by its initials.

Former Senator Farhatullah Babar warned that “The SNC…opens the door for… (religious) seminary teachers to enter mainstream educational institutions… It is well known that a majority of the education of seminary students is grounded in sectarianism. Imagine the consequences of…seminary teachers trained and educated in sectarian education entering the present educational institutions.”

Continue Reading

South Asia

Why successful mediation efforts could not be employed to resolve the Kashmir conflict?

Published

on

Friday prayers in Srinagar, Jammu and Kashmir. © John Isaac

Mediation is a process in which a dispute between two parties is resolved effectively with the help of a third party. It helps to resolve international conflicts peacefully because in mediation the third-party mostly has no direct gains from it and cannot have coercive policies, rather it discusses win-win situation for both parties and helps them resolve the issue. Unfortunately, Kashmir has been a bone of contention between India and Pakistan for almost 74 years, and yet all mediation efforts have failed.

Kashmir is a disputed territory between India and Pakistan in the South Asian region. The issue dates back to 1947 during the partition of the sub-continent when India and Pakistan were formed and were liberated from the British colonialism. At the time of partition, there were more than 500 princely states and they either had to accede to India or Pakistan or choose to stay independent.  Moreover, they had to keep their geographical and religious contiguity in mind before acceding to any of the state. Many states made quick decisions but the Maharajah of Kashmir delayed the decision because he was a Hindu and wanted to join India but the majority of population was Muslim and they wanted to be a part of Pakistan. During his contemplation, the Indian forces entered into the state of Jammu and Kashmir to illegally occupy the state. As a result, tribal groups from Pakistan entered into the state to help their Muslim brothers and Pakistan also backed them actively. Realizing the sensitivity of the matter, India took this issue to the United Nations. The UN helped in establishing a ceasefire line that divided the state into two parts, one controlled by Pakistan called Azad Jammu and Kashmir (AJK) while the other is under Indian occupation and is called Indian Occupied Kashmir (IOK).

Since then, the UN has passed several different resolutions to resolve the Kashmir conflict for good but India is not willing to accept the propositions of UNSC and other mediators. Kashmir still remains an issue to this day and the people of Kashmir are still waiting to get their right to self-determination and accession to Pakistan. India on the other hand has heavily militarized the territory and is trying to change the demography of Kashmir to reduce the Muslim majority.

Efforts of Mediation in the Kashmir Conflict

United Nations formed a special commission for the resolution of the Kashmir conflict known as the United Nations Commission for India and Pakistan (UNCIP). UNCIP and United Nations Security Council (UNSC) have passed a number of resolutions after the 1947-48 war for Kashmir, one of the principal resolutions being the one of 21st April, 1948 by the UNSC that stated: “Both India and Pakistan desire that the question of the accession of Jammu and Kashmir to India or Pakistan should be decided through the democratic method of a free and impartial plebiscite”. This resolution focused on the basic human right of Kashmiri people to choose to live with whoever they want and they have the right to form an independent state.

The UNSC resolutions that came after that also focused on the point of plebiscite and the principles for the conduct of plebiscite. The UNCIP focused on the conduct of free and fair plebiscite for Kashmiri people in both parts of Kashmir and let the people vote for either India or Pakistan. UNCIP also passed some resolutions in this regard. The resolutions passed by UNCIP on 13th August, 1948 and 5th January, 1949 also reinforced the self-determination and plebiscite resolutions of UNSC. In July 1949, India and Pakistan established a ceasefire line through the Karachi agreement that was to be supervised by the military observers. The military adviser had the command of these observers and they all made the main group of United Nations Military Observer Group in India and Pakistan (UNMOGIP). 

After the termination of UNCIP, the United Nations Security Council further passed a resolution no. 91 on 30th March, 1951 affirming that the constituent assembly and any action taken by it for the future of Kashmir would not constitute a disposition of the state and that the future would be decided through a plebiscite. It also decided to continue the working of UNMOGIP and continue the supervision of ceasefire in Kashmir. The other functions of the UNMOGIP were to observe the condition of ceasefire and report it to the UNSC. They were also supposed to investigate the complaints of ceasefire violations and give a written report of findings to each party and the Secretary General.

On 24th January, 1957 UNSC passed the resolution no. 122 regarding the determination of future of the part of state. It reaffirmed that the actions taken by constituent assembly would not satisfy its earlier resolutions and again called for a plebiscite. Later during the 1965 and 1971 wars between India and Pakistan, the UNSC asked both states to cease fire and follow the UN resolutions for Kashmir dispute. It maintained that the Kashmir dispute should be resolved by free and fair plebiscite and not to be taken militarily.

All the efforts made by the United Nations in order to resolve the Kashmir conflict have failed because of India’s assertiveness in the state of J&K. India never agreed to taking out her forces from Kashmir and neither to hold a free and fair plebiscite that could help in determining the future of Kashmir. Mediations cannot be forced and both parties need to consent on a given solution by the mediators but India has never agreed upon the stance of the mediating body and keeps adding military in the region.

Some examples of arbitration tried by the United Nations that failed are as follows:

  • The first effort made in March 1949, where UNCIP convinced both parties to withdraw forces and asked for submission of their plans for the withdrawal, Pakistan submitted the plan but India refused.
  • Then in August 1949, another effort was made by President Truman and PM Attlee where they asked both parties to submit to the arbitration of Admiral Nimitz, Pakistan accepted this proposal but India rejected it again.
  • Then in December 1949, the president of UNSC General McNaughton proposed that the withdrawal should be in a such way that it does not impose fear in any party, Pakistan again accepted the Proposal while India rejected it.
  • In July 1950, Sir Owen Dixon’s proposal about the exact sequence of withdrawals from Jammu and Kashmir territory were accepted by Pakistan but India rejected them.
  • In January 1951, the Prime Ministers of common wealth suggested that Indian and Pakistani troops in Kashmir should be replaced by neutral troops from Australia and New Zealand, Pakistan agreed to this; India did not.
  • In December 1952, the security council defined the number and character of the forces on both sides of ceasefire line present in Kashmir before the plebiscite, the rest were to be withdrawn. Pakistan accepted this resolution but India rejected it.
  • In early 1958, the UNSC again deputed Dr. Frank Graham on a mission of mediation between India and Pakistan for the solution of dispute. Frank Graham made five recommendations all of which were accepted by Pakistan and rejected by India.
  • The ceasefire violations by India time to time also show how India does not care about International Law and Human rights and keeps the torture going without holding a plebiscite do decide the future of the state.

The US supported the composite dialogue process between India and Pakistan which came to an end after the Mumbai attacks in 2008 and since then every time US hints at mediation, Delhi reacts with hostility. The reason is that Kashmir issue is not merely about a piece of land, rather it is more about nationality and political ideology. The Modi government stands tough on militancy in the Kashmir territory in order to enhance its claim and use it as a tool to instigate the notion of Nationalism in the Indian population to give legitimacy to his actions.

One of the major reasons for the failure of UNSC in bringing a peaceful and permanent solution for the Kashmir conflict is that it views the conflict as a political issue rather than a legal one. The Indian aggression and occupation should be seen as an issue of humanitarian intervention and should be dealt according to the international law in the International Court of Justice rather than an issue of political differences between India and Pakistan. The instrument of accession by India is the core issue which the UNSC consistently failed to point out in its resolutions.

Conclusion:

Many efforts of mediation have been made in the earlier days of the conflict by the United Nations in order to convince both India and Pakistan for a solution of the Kashmir crisis. Although UN has passed several resolutions in order to mediate between India and Pakistan but the drawback of mediation is that it is not coercive, it needs the consent of the parties in conflict upon a certain point. In case of Kashmir, India’s assertiveness and extremist policies is a major reason why mediations have failed in resolving the Kashmir conflict. The international community needs to realize that this is not an issue of political differences rather an issue of violation of the international law.

Continue Reading

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

Publications

Latest

Trending