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South Asia

India-Japan in South Asia

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Authors: Tridivesh Singh Maini & Mahitha Lingala*

Japan-India ties have witnessed a significant improvement over the past decade and a half. Bilateral trade between both countries is estimated at US$ 15.71 billion, Japanese Direct Investment in India are estimated at $ 3.5 billion.

Japan’s participation in important infrastructural projects in India

Japan’s lending agency, Japan International Cooperation Agency(JICA) has also funded a World Class, Delhi metro (can you give some numbers regarding total assistance) and is involved not just in the Ahmedabad-Mumbai bullet train project,where it is providing a loan worth INR 5,500 crores but also in strategically important projects in North Eastern India, where it has extended a loan worth INR 4,000 crores for the North-East Road Network Connectivity Improvement Project (Phase I), with favourable conditions such as 1.4% interest rate for project activities and 0.01% interest rate for consulting services in a repayment period of 30 years.This project will improve connectivity in the region, through development of a network of roads and bridges in North East India, which is strategically very important as it shares its borders with China, Myanmar and Bangladesh (it is the first time, that an external player is involved in infrastructural projects in North Eastern India) .

JICA is also funding hydroelectricity generation projects in this area. It extended a loan of INR 315 Crore for Hydro-Electric Power Station in Meghalaya.Japan has also been involved in the New Delhi Mumbai Industrial corridor and has invested $4.5 billion for the DMIC apart from allotting a loan of INR 3,300 crore for Delhi Metro Phase III.

India-Japan Strategic relationship

Japan and India, always shared a good bilateral relationship, but the recent interactions have elevated the relation to a strategic partnership where in both countries are looking to together impact the balance-of-power in the Indo-Pacific. During the bilateral meet in 2018, both the countries collectively decided to develop the smart islands under Maritime Domain Awareness (MDA), and also initiated a 2+2 dialogue involving foreign and defence ministers.During Indian Defence Minister, Rajnath Singh’s recent visit to Japan, it was decided that thefirst Foreign and Defence Ministerial Dialogue (2+2) ahead of the Japan-India Annual Summit in December 2019.

Beyond the bilateral relationship

Apart from seeking to strengthen bilateral economic and strategic ties, both countries are also looking at cooperation beyond their respective shores. The first step, towards this was taken during Japanese PM, Shinzo Abe’s India visit in December 2015, when it was decided, that Japan and India would work together in Japan’s PQI, Partnership for Quality Infrastructure (perceived by many as an alternative to the Belt and Road Initiative). Japan and India are also working together in the Asia Africa Growth Corridor (AAGC) to increase connectivity between Asia and Africa. Both countries have realized the importance of joining hands to provide a counter to China’s increasing presence.

India-Japan in South Asia

It is interesting to note, that Japan and India have already joined hands in South Asia and have begun with important infrastructural and energy projects. In June 2018, Larsen and Toubro (L&T), Marubeni and Dhaka Mass Transit Company Limited (DMTCL) signed an agreement to develop the final phase of the Dhaka Metro. Furthermore, India and Japan are also cooperating in a number of other important projects, which include;enhancing connectivity by way of four-laning of road, reconstruction of bridges on the crucial Ramgarh to Baraiyarhat stretchand constructing the Jamuna Railway Bridge over the Januma River.

In Sri Lanka, two important examples exist of triangular cooperation. Petronet (India) and Mitsubishi, Sojitz Corp (Japan) have joined hands to develop a LNG plant (estimated at 300 Million) near Colombo. Furthermore, India and Japan have undertaken the project to help Sri Lanka develop its port in Colombo, with Sri Lanka, retaining the majority stake. These investments in Sri Lanka, come at an important time, when BRI investments have begun to face considerable opposition in Sri Lanka, with China taking over the control of the Hambantota port due to Sri Lanka’s inability to pay back the debt. Due to non-payment of loan, Sri Lanka had to handover the strategic port of Hambantota to China on a 99 year lease, effectively losing all control.

This investment in the Colombo port, has been seen as a joint effort by India- Japan to counterbalance China’s growing influence in the Southeast Asian region and especially in the Indian Ocean region.

Increasing importance of Private sector in India-Japan cooperation

Recently, an Indian private player, Reliance Power has entered into a partnership agreement with JERA (one of the largest power utilities of Japan) for jointly setting up a power project in Bangladesh. JERA and Reliance Power, will jointly set up 750 MW gas based combined cycle power project (Phase-1) at Meghnaghat. Apart from the fact, that Japan and India are working together, this is important because it is the single largest FDI investment in Bangladesh’s power sector.

While governments will play an important role in infrastructural and connectivity initiatives, any serious alternative to the BRI also needs to have pro-active private sector participation. The BUILD (Better Utilization of Investment leading to Development)act which was signed by US President , Donald Trump in October 2018 and received bipartisan support sought to push the same objective.  Under the act, a new organization Development Finance Corporation was created with the intention of drawing greater private sector investment in the developing world especially in Africa.

US Secretary of State, Mike Pompeo too on more than one occasion has reiterated the need for greater participation of the US private sector in the infrastructural development of the Indo-Pacific region. While alluding to increasing concerns of skewed economic relations between many developing countries and China,  Pompeo has made the point, that US companies can play a more constructive role in the holistic economic development of developing countries in the Indo-Pacific region.

Conclusion

Japan and India, can provide alternatives to countries in South Asia, such as Sri Lanka, Maldives,  which are vary of China’s growing influence. Governments can only do so much in terms of resources, it is important for private sector – especially from India, to invest more in the neighborhood and leverage the immense potential of countries like Bangladesh,which is growing at an impressive 7%,and whose per capita income has risen by 149% in the past 10 years.Recent years have also witnessed is increasing consumption, as a consequence of a burgeoning middle class – which consists of 20% of its population today. Bangladesh has also been successful in balancing its relationship between China on the one hand, and countries like US,  Japan and India on the other.

South Asia provides immense opportunities for greater cooperation between India and Japan, and more pro-active participation of private players in crucial infrastructure and natural resource related projects.

*Mahitha Lingala is a student at the OP Jindal Global University, Sonipat

Tridivesh Singh Maini is a New Delhi based Policy Analyst associated with The Jindal School of International Affairs, OP Jindal Global University, Sonipat, India

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South Asia

Will CPEC be a Factual Game Changer?

Asad Ullah

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Pakistan’s economy is shrinking, and shrink economy always needs reforms, reforms either political, social or economic can be an upright source of wherewithal to fight preceding challenges. Since independence Pakistan is swathed with many serious issues, these are the issues which extremely hamper Pakistan’s economic growth. Nearly every political leader since independence didn’t pay courtesy to deal with problems, however, every political leader has tried to snatch public wealth through different means. For domestic development and trade balance Pakistan always went towards IMF toabailout. Recently in 2019 Pakistan again bailout of almost US$ 6 billion for 39 months.

Pakistan faces long-term economic challenges, including high budget and the debt deficit, low-income mobilization, low external vulnerability and less spending on education, social, health and many other sectors. This imitates the birthright of the jagged and cyclical economic policies of current years aimed at stimulating growth, but at the disbursement of growing weaknesses and persistent structural and institutional weaknesses, Pakistan failed to boost its economy. Thanks to Chinese One Belt One Road Initiatives, which will help Pakistan economy to grow self-reliant under the China Pakistan Economic Corridor CPEC.

The question of whether the so-called CPEC will certainly help Pakistan’s shrink economy or will abundantly abolish the nascent economic system where the Chinese investor will hold the power of the industrial sectors. Most of the leaders see CPEC is another obliteration for Pakistan economy. Furthermore, they believe that the CPEC will destroy the usual exquisiteness, for the construction of the roads, and Special Economic Zones (SEZs), they will cut down thousands of trees, many agriculture lands will convert to buildings, roads, and the pollution level will twofold compare to the present. They refused to ignore that CPEC is a game-changer for Pakistan but rather destruction for the country contemporary status quo.

Such questions got much attention in public, and researchers are worried about the specific outcome. As argued by many intellectuals the CPEC is win-win game, if CPEC allow China to the warm-water of the Arabian-Sea for smooth trade with less coast and safe route to save billions of dollars, so as for Pakistan the CPEC will bring a vast amount of employment opportunities, as well as trade prospects to the domestic people which will minimalize the level of unemployment, poverty, besides most importantly will link all those isolated people and their small business to the industrial hub as well as economic-cantered. 

The CPEC according to most of the observers parting optimistic impacts on Pakistan economy. It believes that the CPEC has generated more than 60,000 jobs for Pakistani in 2015 and expected to generate more than 800, 000 job opportunities in near future 2025. A report released by the Think-Tan of South Asia Investors, the CPEC will offer about two million direct as well as indirect jobs, which will boost the economy and will raise GDP growth to 7.5% compared to 5% present.

Additionally, the data revealed by the World Bank, that the GDP of Pakistan has increased remarkably for $244 billion in 2014 to $300 Billion in 2017. To be more specific the annual GDP of Pakistan improved from 5.2% in 2018to 5.527% in 2019, viewing continuous improving with time being. Consequently, from the above facts, we conclude that CPEC is a game-changer for Pakistan, which will not only build the infrastructure but importantly will boost the economy and will add millions of jobs, unswervingly contributing toward the GDP growth of Pakistan.

The story isn’t finished yet. The CPEC, on the other hand, emphasis on Special Economic Zones (SEZs), under the CPEC agreement, there are eight SEZs has been planned. The important aims of special economic zones SEZs are to sustain trade balance, increase employment, create jobs and increase investment. These are the zones where the trade and other business’s laws are different from the rest of the states though SEZs are located inside the border of a nation. As far as SEZs are concerned China experienced successful stories of the so-called SEZs.

Fortunately, most of the SEZs are also in those isolated areas like Baluchistan, Gilgit Baltistan and Mohmand Agency, these areas are almost disregarded by many preceding governments due to the deficiency of pecuniary resources. The infrastructure, education, and the health system of these areas are self-same diminutives. Hence, after the construction of SEZs in these areas, will not only pave the infrastructure but health and the standard of living will rise along with education and many other amenities. In conclusion, all these SEZs will create thousands of jobs across the country which will raise thousands of people from poverty, unemployment as well as improve the standard of living.

Considering the fact that CPEC has a positive impact on Pakistan’s economy, such impacts are strongly related to trade and investment. Since a longtime, China is a major and important investor in Pakistan. But the flow of goods and services, as well as the investment, has risen up particularly after 2000. Trade is thus important for economic development. The CPEC has tremendous positive impacts on the trade relation between China and Pakistan, as well as the neighbour’s states. The CPEC will improve the trade relationship between Pakistan and the neighbour countries in addition to a general trade opportunity directly or indirectly, which will improve the economic condition of Pakistan.

Finally, it’s concluded that economically the CPEC is the combination of SEZs, infrastructures, gas, and pipeline which will, of course, help Pakistan to overcome energy shortage, infrastructure problem, unemployment, eradicate poverty up to some extent and will raise the GDP.

In previous ten years, the country experienced political instability which blowout many domestic social, economic as well as a political problem, resulting in the high inflation rate, corruption, poverty, social isolation because of poverty and unemployment. These kinds of problems which up to a great extent affect the country’s economic and social system are predictable to change under the CPEC contract. This contract will not only boost the economy but will also change the social and cultural ways of life. People to people communication, adopting a new culture, the rise of the living standard are all related to the CPEC.

The CPEC will also bring socio-cultural changes such as educational exchange, training and skill exchange, media exchange and business exchange. Thus, the CPEC is a real game-changer for Pakistan, which will increase regional cooperation, peace and stability in the region, diverse investment opportunities, socio-economic development (education, water and gas supply, medical treatment, poverty alleviation), educational exchange, professional drill, and will improve safety and constancy in the areas.

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South Asia

Post-UNGA: Kashmir is somewhere between abyss and fear

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Hailed as a hero for calling out New Delhi’s draconian measures in occupied Kashmir, Imran Khan warned the world of a “bloodbath” once India lifts its lockdown of Jammu and Kashmir. He persuaded global leaders to denounce the brutalities and human rights violations unleashed on Kashmiris ever since the disruption of the decades old status quo, which had been granted by the symbolic autonomy of Articles 370 and 35(A) within the Indian constitution. The constitutional coup d état ensures the alienation of Kashmiris in IOK beyond the point of redemption with massive spillover effects across the LOC. Pakistan is home to 4,045,366 self-governed and independent Kashmiris as per the 2017 census, who are desired of more than a political and diplomatic support for their brothers in IOK. India and Pakistan have already fought three wars on the Kashmir issue.

Focusing on the brazen denial of core human values, Imran Khan prognosticated a more radicalized world as the scourge of radicalism finds more fodder in a discriminated society. If climate change is ignored, the clichés of religious affiliation continues and the inherent right of self-determination remains disregarded, violent reaction is inevitable. He said, “we all know that marginalisation leads to radicalization”… “No one did research that before 9-11, the majority of suicide bombers in the world were Tamil Tigers. They were Hindus”, but Hindus rightly escaped the blame since belief and religion has nothing to do with desperation.

Imran Khan talked more like Gandhi than the nation of Gandhi itself. He reminded the world of the reincarnation of the progrom and racial ridden medieval periods when religion and state were inseparable .It has reshaped and now resides more in inter-state relations while negatively stirring regional cooperation and globalization. Already enwrapped in a world of deprivation, the fifth largest population of South Asia is fearfully seen at the brink of a nuclear war with there being very few options left for a seven times smaller nuclear state of Pakistan, which has been already driven to the wall. The speech was well received and touched a chord with many Kashmiris reeling under the unprecedented communications blackout and travel restrictions in place since August 5.

“It felt like there is someone to watch our back. It felt that someone is talking for us, that we are not alone”, was the feeling commonly displayed. Hundreds of affected Kashmiri stakeholders came out of their homes, shouting slogans in support of Imran Khan and calling for the independence of Kashmir despite the movement restrictions and deployment of additional force by India in Srinagar.A fresh charge sheet has also been filed by the National Investigation Agency (NIA) of India against the chief of Jammu & Kashmir Liberation Front, (JKLF) Yasin Malik, and other leaders including Asiya Andrabi, and Masarat Alam on October 4, 2019.

Conjuring up his dystopian vision, Prime Minister Modi made no mention of the disputed region of Kashmir in his read-out speech at the UN along the lines of diplomatically bureaucratic explanation. He only ticked the fanciful boxes of development, progress, and world peace, annihilation of terrorism and protection of environment. This speech however, was soon followed by a threat from his own government’s defence minister calling for the liberation of Pakistani Administered Kashmir as the next step in India’s quest for regional dominance.

Moreover, Imran Khan has also expressed his fears in his erstwhile meetings with Donald Trump, Angela Merkel, Emmanuel Macron and Boris Johnson on the sidelines of the General Assembly session. Trump has offered mediation, but only if both Pakistan and India agree. A senior US diplomat for South Asia called for a lowering of rhetoric between India and Pakistan, while saying that Washington hoped to see rapid action by India to lift restrictions it has imposed in Kashmir and the release of detainees there. Similarly, State Councilor and Foreign Minister of China, Wang Yi, in his address to the General Assembly on 27 September stated that,;”The Kashmir issue, a dispute left from the past, should be peacefully and properly addressed in accordance with the UN Charter, Security Council resolutions and bilateral agreements.”

Nonetheless, an arrogant denial by India to the support of Pakistan’s stance on Kashmir by Turkey and Malaysia is more of an inept understanding of diplomacy and international commitment. India needs to step out of the skeptical comprehension of the role of the UN that was pronounced by Ms. Vidisha Maitra India’s Permanent Mission to the UN. The sway of diplomatic terms espoused with preconceived historical interpretations could be misguiding for political leaders. Modi needs to keep his ears close to the ground to save his political future. It is an extensional battle for Kashmiris. No concertina wire can blur the contradiction in his approach to the issue, “when they are in India they say it is an internal issue and when they are on the international forums, they consider it a bilateral issue,” said one of the residents of Srinagar. Confusion exacerbates the fear, which consequently becomes a forerunner to terrorism. Same goes for the US whose mediator’s role gets paradoxical by Trump’s close alliance with Modi in his perusal of Asia-Pacific policy. Though, Imran Khan is perpetually using his political and diplomatic influence proactively, to mobilize both the international community and his own people, the anti-India feeling, the pro-militancy sensitivity and the general sense of despair — is stronger than before in Kashmir.

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South Asia

Kashmir Issue at the UNGA and the Nuclear Discourse

Haris Bilal Malik

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The Kashmir issue has more significance in view of the nuclearization of South Asia as many security experts around the world consider Kashmir a potential ‘nuclear flashpoint’ between India and Pakistan. The revocation of the special constitutional status of Kashmir by the BJP government on August 5, 2019, also referred to as Jammu and Kashmir Reorganization Act 2019 and the subsequent lockdown in Kashmir has since considerably increased political and diplomatic tensions between India and Pakistan. India’s recent moves and actions in Kashmir have once again internationalized the Kashmir dispute. This was evident during the UN General Assembly’s 74th Session, where the Kashmir issue remained a crucial agenda item for several countries.

During this year’s session prominent leaders of the world condemned Indian brutalities in Kashmir. Turkish President Recep Tayyip Erdoğan criticized the international community for failing to pay attention to the Kashmir conflict and called for dialogue to end this dispute. Malaysian Prime Minister Dr. Mahathir Mohamad said that Kashmir “has been invaded and occupied” by India despite the UN resolution on the issue. Chinese Foreign Minister Wang Yi also discussed the issue and called for a peaceful resolution of the dispute based on the UN Charter and Security Council resolutions. Based on the grave importance of Kashmir as a potential ‘nuclear flashpoint’ between India and Pakistan, Prime Minister Imran Khan, while addressing the UNGA warned the world community about the dangers of a nuclear war that according to him might break out over Kashmir due to Indian atrocities. The current situation appears to be the most critical time for both the countries and the region as both countries are nuclear-armed.

However, unfortunately, the Indian leaders and media perceived Prime Minister Imran Khan’s warning as a nuclear threat and termed it as ‘brinkmanship’. Contrary to this perspective, it is worth mentioning here that the Indian leadership itself is involved in negative nuclear signaling and war hysteria against Pakistan in recent months. For instance, the 2019 Indian General Election campaign of Prime Minister Modi was largely based on negative nuclear signaling comprising of several threats referring to the possible use of nuclear weapons against Pakistan. Furthermore, as an apparent shift from India’s ‘No First Use’ (NFU) policy, on August 16, 2019Indian Defence Minister Rajnath Singh, while on a visit to the Pokhran nuclear test site paid tribute to the late former Prime Minister Atal Bihari Vajpayee and asserted that India might review its NFU policy. He stated that a change in future circumstances would likely define the status of India’s NFU policy. Since then there is no official denial of this assertion from India which indicates that India might abandon its NFU policy.

Moreover, India’s offensive missile development programs and its growing nuclear arsenal which include; hypersonic missiles, ballistic missile defence systems, enhanced space capabilities for intelligence, reconnaissance, and surveillance and the induction of nuclear-powered ballistic-missile-capable submarines clearly indicate that India’s nuclear weapons modernization is aimed at continuously enhancing its deterrence framework including its second-strike capabilities vis-à-vis Pakistan. This is also evident from India’s military preparations under its more recent doctrines such as the 2017 Joint Doctrine of the Indian Armed Forces (JDIAF) and the 2018 Land Warfare Doctrine (LWD)which are also based upon more proactive offensive strategies and indirect threats of pre-emptive strikes against Pakistan.

As evident from the above-mentioned developments, it seems likely that India aspires to increasingly project itself as a regional hegemon and a potential superpower. The BJP government under Prime Minister Modi inspired by the Hindutva ideology is taking offensive measures under the notions of ‘a more Muscular or Modern India’ based on strong military preparedness. In such circumstances, Pakistan’s threat perception would likely remain increasingly inclined towards its eastern border. Pakistan due to its economic constraints would also likely face considerable difficulties in competing with India toe to toe with respect to its military modernization plans. Pakistan is already punching well above its weight, and nuclear deterrence would be the only way through which Pakistan can maintain a precise balance of power to preserve its security. This could only be carried out by deterring India with the employment of both minimum credible deterrence and full-spectrum deterrence capabilities. This posture clearly asserts that since Pakistan’s nuclear weapons are for defensive purposes in principle, they are aimed at deterring India from any and all kinds of aggression.

Hence, at the present India’s forceful annexation of occupied Kashmir and the resultant nuclear discourse at the UNGA has further intensified Pakistan-India tensions. Under present circumstances, the situation could easily trigger another politico-military escalation between India and Pakistan. Prime Minister Modi has bet his political reputation on his move to annex the region and his political career is on the line. The same way Pakistan’s politico-military establishment is equally unlikely back down from its stance on Kashmir. It would be difficult for both countries to come down from the escalation ladder because politico-military reputations would be at stake at both ends. Consequently, Pakistan might be forced to take action before India’s modernization plans get ahead and might respond even sooner.

The nuclear discourse in Prime Minister Imran Khan’s speech against the backdrop of the Kashmir crisis at such a high forum like UNGA would likely keep the issue internationalized. The situation demands the UN fulfill its responsibility of ensuring peace and to prevent billions of people from the dangers of a nuclear war. However, Indian blame game, aggressive behavior and offensive nuclear signaling against Pakistan all present a clear warning of nuclear war. It would greatly limit the prospects for international mediation especially by the United Nations whose resolutions on Kashmir clearly provide a right of self-determination to decide Kashmir’s future.  

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