The impressive victory scored in last spring’s parliamentary elections in India by Prime Minister Narendra Modi inspired numerous comments about the start of a new stage in the development of one of the largest countries around. However, the spate of dramatic events that have since happened in India has drawn attention to the negative trends in the world’s second most populous nation.
Since its coming to power in May 2014, the current Indian leadership has set itself ambitious and long-term goals aimed at strengthening both the country’s authority in the world, its status as a “serious global player” and creating new opportunities for its accelerated development and economic growth.
“Over the past five years, Modi has sought to regain India’s lost strategic position in South Asia and ensure its recognition as a regional leader according to the country’s de facto role in the region,” said Dattesh Parulekar, vice president of the Forum for Integrated National Security (FINS). In its effort to overcome the growing imbalances in development, the Modi government launched a number of large-scale economic administrative, financial and social reforms. Moreover, authorities still declare their intention to bring the national GDP to $5 trillion by 2024.
Another important goal being pursued by the government is centralization of the state and national consolidation, which it considers vital for the country’s further development and sway, including in international affairs. From the standpoint of domestic policies, it is primarily about encouraging the growth of Hindu national and religious identity. Hence, as many foreign observers believe, the elimination by the Modi government in August 2018 of the special status of Jammu and Kashmir, then the country’s only predominantly Muslim administrative unit. The decision was fully in line with the ultimate goal pursued by the ruling Bharatiya Janata Party (BJP) and the forces supporting it, i.e. the proclamation of India as a Hindu nation. Playing to the sense of ethnic identity of most of the country’s inhabitants already brings political dividends with the BJP winning 37 percent of votes in the last parliamentary elections, compared with 31 percent it had in the previous legislature. Narendra Modi’s party has also been quickly strengthening its hand in state power structures, including through “defections” from rival parties.
On the other hand, the government’s policy of centralization, above all consolidation of the state and society, is inevitably contributing to the radicalization of the country’s ethnic minorities, primarily Muslims, whose number, according to recent estimates, now exceeds 200 million. Last year saw a spate of Muslim protests. In the summer of 2019, the BJP-led government of the northeastern state of Assam established, under the pretext of combating illegal immigration, a National Register of Citizens. Of the state’s 32 million residents, 2 million, mainly Muslims, were recognized as “non-citizens.” In August 2019, the central government revoked the status of limited autonomy granted to the state of Jammu and Kashmir, with local media reports putting the number of protesters under lockdown at “thousands.”
Finally, a new version of the Indian Citizenship Act, which critics accused of discriminating against Muslims and of being an attempt to undermine the secular underpinnings of the Indian state, was adopted in December, 2019. The new-look Act raised a new wave of protests among the country’s Muslims. As a result, the ethno-religious issue can also become a convenient tool in the hands of Narendra Modi’s opponents.
Finally, with the government boosting the country’s national self-awareness, it becomes almost inevitable that it will take a tougher stand vis-à-vis India’s traditional opponent, Pakistan, and its strong economic competitor, China. The escalation of military tensions with Pakistan that happened in February 2019, showed how quickly these two traditional foes can actually come to blows. Moreover, the dispute between Beijing and New Delhi over the ownership of the Aksai Chin Plateau, a region on the border with China, Pakistan and India, indirectly enmeshes Beijing in the territorial problems of Kashmir.
According to Indian observers, “unable to stand up to the inevitable large-scale industrial and infrastructure offensive by China through the Himalayas and the sea routes of South Asia, which are the traditional sphere of India’s influence,” New Delhi needs to implement “a counterbalance strategy.” However, despite its undoubted foreign policy and diplomatic achievements, which have contributed to Narendra Modi’s popularity inside the country, India has increasingly been lagging behind China in economic terms. Therefore, fundamental financial and economic problems threaten to become India’s Achilles heel.
The relatively slow pace of India’s socio-economic development remains the main obstacle to strengthening the country’s position in Asia and the world as a whole. The country is subject to all the standard “developmental diseases” that always come with accelerated economic and social transformations. The modernization of Indian society is also hampered by vestiges of traditionalism. Intense discussions continue “regarding the sustainability of the current models of socio-economic development.”
The Economist singles out environmental degradation, serious problems in the field of education and a crisis in public administration as the three main challenges to India’s development.
After he came to power in 2014, Narendra Modi had to tackle multiple problems that had remained unsolved for decades. His government is trying to combine federal programs to help the country’s poorest, who account for up to 22 percent of the country’s population, with initiatives such as “Make-in-India” and “Startup India” designed to stimulate economic and business development. Experts say that “although no special breakthroughs in these areas have yet occurred, the secret of Modi’s popularity is that he at least started these programs.”
They also point to the government’s traditional (and growing) appetite for playing a strong directive role in the economy.
In November 2016, the government took out a hefty 86 percent of all cash out of circulation as part of an experiment to root out corruption only to face a liquidity crisis. Combined with a campaign against “shadow economy,” the measure seriously undermined production and employment, slowed down the pace of economic growth, “and also reduced tax revenues.” A sweeping reform of the national tax system, undertaken in 2017, provoked a months-long “collapse” of the taxation sphere and sparked mass-scale protests. According to HSBC, India’s GDP growth rate has been steadily declining since mid-2017. According to Bloomberg and the Center for Monitoring Indian Economy (CMIE), the volume of new investment projects in India has also been declining since 2015. The downturn began a year after Modi came to power. Amid the continuous growth of the Asian countries’ role in the global economy, finance and trade, the current slide of the region’s second largest economy appears very contradictory and illogical.
Narendra Modi and his opponents are fiercely arguing whether the current economic downturn is cyclical or structural. Economists are also debating on this issue. “The government apparently believes the recession is cyclical.” Modi’s critics argue that despite “consistent cuts in interest rates” and a budget deficit “of 102 percent in 2019,” the economic slowdown has been going on for several years now, Asia Times wrote. Mounting problems in the economy even forced New Delhi to withdraw from negotiations on the Comprehensive Regional Economic Partnership (RCEP) after seven years of talks, “literally just a step away from signing the agreement.” According to Indian business publications, RCEP, which was negotiated between ASEAN and the bloc’s six free trade agreement partners, “will now be dominated by China. India’s membership in RCEP would have been tantamount to a trade agreement with China; something Indian industry is unprepared for now.”
Leading Indian economists believe, however, that pulling out of the RCEP agreement will benefit the Indian economy only if the government “immediately” starts to reform the land, labor and capital markets. New Delhi should also focus on encouraging competition, deregulating the economy and facilitating market access if it doesn’t want to see its regional commodity circulation seriously falling behind China’s, and its capital and technology exports, as well as state financing of domestic companies’ overseas projects, remaining significantly inferior to Chinese.
Russia’s chances of playing an important role in the positive transformation of its long-standing strategic partner look pretty good. In geopolitical terms, we are talking about the dialogue between the leaders of Russia, India and China, which resumed in December 2018. All three parties consistently emphasize the partnership nature of their relations as well as their shared interests and goals “in the field of development.”
Economy-wise, the Russian Council on Foreign Affairs believes that Moscow can do a lot in terms of helping its Indian partners on issues ranging “from high technology and defense, to building modern infrastructure and poverty reduction.” This, however, requires a qualitative improvement in the existing model of interaction to bring it fully in line with the realities of 21st century global politics, all the more so amid attempts being made by a number of countries, primarily the US, France and Israel, to sidestep Russia on the Indian track.
Right now, it looks like India could be one of the first major world powers to solve a super-complex dilemma of successfully dovetailing the priorities of security and national development. Despite all the shortfalls of his first term in office, Narendra Modi and his team have managed to even expand their support base among voters from across the country’s political spectrum. The government now has to prove its ability to kick start the country’s long-term internal development, while simultaneously move toward making India a system forming power in South Asia.
From our partner International Affairs
Democracy in Disarray: India’s Uphill Battle against an Escalating Surge of Anti-Democratic Sentiments
India has consistently bragged about being the world’s largest democracy and having an ostensibly ‘secular’ outlook for many decades. The Nehruvian political ideology, which espoused the virtues of secularism as an important pillar of the Indian nation, served as the initial foundation for India’s political landscape after gaining independence. India has significantly departed from its once-celebrated founding principles in modern times, with the RSS BJP dispensation now in power embracing a narrow ideology based on “Hindutva” ideals. Therefore, several well-known Western media outlets have recently expressed their concerns about this apparent change and the implications of India’s ongoing democratic ‘backslide’. Despite India’s rise to one of the world’s most rapidly expanding economies and its crucial role in U.S.-led efforts to balance China, it is difficult to ignore the concurrent rise in repressive measures aimed at stifling dissent within its borders.
Unfortunately, the international community has mostly held back from openly criticizing New Delhi in an effort to preserve a strategic alliance. Most foreign governments, with the exception of Beijing and Islamabad, view India as a crucial trading partner and are therefore reluctant to express their concerns. Even leaders of the Muslim world have kept their opinions on the plight of underprivileged Muslims in India relatively quiet. It is true that self-interest, rather than moral obligations, predominately drives international relations. However, New Delhi’s significance to India’s democratic fabric ensures that the country’s deterioration of democratic standards remains a significant topic of discussion.
India frequently highlights its achievements, from the smooth operation of elections to the unwavering submission to civilian authority, and is proud to wear the title of “world’s largest democracy”. Additionally, programs like the Quadrilateral Security Dialogue (QUAD) and broader international cooperation aimed at confronting China are frequently presented as a joint effort by democratically inclined countries. In response to the stark reality of India’s democratic erosion, many parties have expressed concern, particularly among Western observers. Therefore, economic and strategic concerns are frequently cited as the reason why the international community is reluctant to discuss this issue openly, but India’s importance to its democratic credentials keeps discussions about its democratic trajectory ablaze.
On the other hand, the Indian authorities’ escalating persecution of journalists and online critics due to their criticism of government policies and practices, as exemplified by their use of counterterrorism and sedition laws to prosecute them, represents a flagrant disregard for the basic right to freedom of expression. The Indian authorities must show respect for this fundamental human right, immediately release journalists who have been wrongfully detained on false or politically motivated charges as a result of their critical reporting, and stop systematic persecution of journalists and repression of independent media. India must be prepared for whatever may happen as the world continues to embrace it more and more. It is crucial to understand that New Delhi will feel more empowered to intensify its repressive crackdowns inside its borders the more leniency and immunity it receives.
The fact that the United States and India lack a formal treaty alliance must be acknowledged, although they have developed a comprehensive strategic partnership that spans diplomatic, defense, and developmental interests. However, the alignment of these interests suggests a significant change in their relationship since the Cold War ended. Three main factors are responsible for this transformation. First, after the communist model fell apart in 1991, India shifted its attention to the West by embracing globalization and market economics. Second, despite India’s non-signatory status to the Non-Proliferation Treaty (NPT), the relations between the two countries have become closer as a result of India’s emergence as a nuclear-armed power and the willingness to accept it into the international civil nuclear regime. Finally, China’s emergence as a regional power with global ambitions forced reluctant leaders in New Delhi and Washington, D.C., to acknowledge the necessity of combining their efforts lest they individually suffer the consequences.
The consolidation of a Hindu-majoritarian political style, the excessive concentration of power within the executive branch and the ensuing erosion of independent institutions, and the repression of political dissent and press freedom are the three main areas of concern when evaluating India’s regression in terms of democracy. While each of these issues is significant in and of itself, the presence of all of them together poses a serious threat to Indian democracy as a whole. The foundations of the U.S.-India strategic partnership, America’s broader interests in the Indo-Pacific region, and international initiatives aimed at promoting democracy will all be jeopardized if India’s democratic decline continues. This includes social stability and prosperity for more than a billion Indians.
Modi’s State Visit to the US: Expansive Engagement
Prime Minister Narendra Modi has travelled to the United States several times since 2014, for bilateral and multilateral visits but from June 21 to 24 he will be on an official state visit to Washington DC. White House press secretary announced that “the President and the First Lady are looking forward to welcoming PM Modi for the official state visit on 22nd June. This will be an opportunity to reaffirm the deep and close partnership between US-India.” Upon his arrival, Modi will receive an official welcome and hold bilateral meetings and delegation level talks. President Joe and First Lady Jill Biden will be hosting a state dinner in his honour. In a singular opportunity granted only to the closest allies of the United States, Modi will be addressing a joint session of the American Congress during his visit to the States.
It is noteworthy that a Democratic President is inviting the Indian Prime Minister for a White House state dinner, while a Republic Speaker has asked him to address the joint session of Congress, indicating bipartisan support for augmenting Indo-US ties.
State visits at the highest level of protocol are rare in the American system, and PM Modi is just the third state visitor during the Biden Presidency. Historically, Modi will be the third Indian leader ever invited for a state visit to the US, since those of President Radha Krishna 1963 and Prime Minister ManMohan Singh in 2009. During the state dinner hosted by President Obama for PM Singh, the two leaders spoke augustly about a “future that beckons all of us.” Modi’s state visit will also be one of the longest of any leader to the US. So in many ways this visit is a significant signalling of the prominence that the US accords to its relations with India. On the agenda are agreements on trade, defence and critical minerals and significant progression of the Indo-US defence partnership, with the signing of a joint production agreement.
Ahead of Modi’s state visit, US Defence Secretary Lloyd Austin is in India on a two-day visit to explore ways to lay the groundwork for highly anticipated agreements on bilateral defence cooperation, especially in areas of transfer of critical technologies for co-development of military hardware.
With bilateral trade reaching a record-breaking $191 billion last year, U.S.-India Business Council (USIBC) will also be hosting the INDUS-X conference, and scheduled to be held over two days in Washington coinciding with Mr. Modi’s visit.
Building Strategic Linkages over Two Decades:
After decades of intermittently frigid relations, Washington’s ties with New Delhi have grown significantly closer over the past twenty years. trade and investment flows have grown alongside shared geostrategic interests and China’s growing presence and assertiveness in South Asia and the Indian Ocean region is a concern for both. This rapprochement accelerated markedly after the Bush administration lifted the sanctions imposed after India’s nuclear test, and the completion of the Civilian Nuclear Cooperation Initiative. Since Narendra Modi came to power almost a decade ago, security and economic links with the US have enhanced conspicuously, alongside deepening security cooperation like counterterrorism around shared interests limiting China’s influence in the broader Indo-Pacific. President Barack Obama declared India a “major defence partner” and the Trump administration’s growing concerns about China’s regional assertiveness-including along the Sino-Indian border-cemented the U.S.-India security partnership. India was included alongside the United States, Australia, and Japan-as a counterweight to Chinese ambitions in the Quadrilateral Security Dialogue, or the ‘Quad.’
New Delhi and Wasington signed COMCASA (Communications Compatibility and Security Agreement) in 2018 which provides for interoperability between the two militaries and provides for the sale of high-end technology from the US to India. This was followed by the BECA (Basic Exchange and Cooperation Agreement) agreement for sharing of high-end military technology, logistics and geospatial maps between the two countries. The pact provides Billions of dollars in American arms purchases were finalised by the Modi government though it did not accede to Trump’s demands to stop purchasing the S-400 and other Russian military equipment.
Biden Seeks to Broaden Ties:
Advancing on these two decades of deepening strategic linkages the Biden administration has sought to further broaden the scope of the strategic partnership between the two countries and deepen Indian integration into a shared security architecture. With more robust military cooperation such as acceleration of joint military exercises, there has also been revival of the US-India Homeland Security Dialogue, which seeks to strengthen cooperation on cybersecurity, technology, and countering violent extremism. These security-oriented steps with steps have been complemented with initiatives such as the launching of a Clean Energy 2030 partnership, etc. Both leaders oversaw the launch of the India-US Initiative on Critical and Emerging Technology (ICET) during the Quad summit in May 2022. One of the most important results of the ICET was the commencement of negotiations on the General Electric (GE) deal to produce GE-F414 jet engines in India, complete with technology transfer. In February this year the historic deal between Boeing and Air India for the latter to buy more than 200 planes from the American plane manufacturer was announced. Air India is ordering 220 Boeing aircraft valued at $34 billion. The orders include 190 737 Max aircraft, 20 of Boeing’s 787s, and 10 of its 777Xs. The purchase also includes customer options for an additional 50 737 MAXs and 20 of its 787s, totaling 290 aeroplanes for a total of $45.9 billion at list price. In a phone call both leaders discussed the importance of the US-India strategic technology partnership and committed to continue working together and in groups like the Quad to advance economic growth and expand cooperation on their shared priorities.
Deliverables of the Upcoming State visit:
The signing of the MoU with General Electric deal will be the biggest deliverable of Prime Minister Modi’s State visit to the US. India’s Aeronautical Development Agency (ADA) has selected 99 F414 GE fighter jet engines to power the Mk II version of the Tejas Light Combat Aircraft (LCA) for the Indian Air Force. GE was engaged by the Biden administration, and a proposal with Hindustan Aeronautics Limited (HAL) officials was arrived at. The agreement is to build GE-F414-INS6 engines that will power Tejas-Mk II Light Combat Aircraft (LCA) being built by HAL. The engine of the Mk II works at super high temperatures, is the maximum thrust model in the F-414 model, and includes state-of-the-art technology to meet India’s demanding Air Force and Naval requirements. Although the final details of the agreement will only be clear once the MoU is signed, it is likely that the transfer of technology (ToT) and the percentage of locally manufactured components will exceed 60%, possibly reaching 75%.
Other deliverables include the go ahead New Delhi’s plan to procure 30 MQ-9B armed drones at a cost of over $3 billion from US defence major General Atomics Aeronautical Systems Inc.
The US is already India’s largest goods trading partner and the only major country with which India has a goods trade surplus. There is also tremendous excitement in the business community over the launch of the initiative INDUS-X, a platform for start-ups and enterprises from both countries to identify collaborations for high-tech innovations within the ambit of the Initiative on Critical and Emerging Technologies (iCET).
Given the kind of aspirations India has in terms of manufacturing, the US is a critical partner. The US has expressed on a number of occasions that it sees the rise of India to be in its interests. Both administrations have shown tremendous excitement for the “defence innovation bridge” of which the GE deal is just one element.
Communal Unrest in Manipur: A Test for Unity or Separate state
In the recent past, the Indian state of Manipur, located in the northeastern part of the country, has been grappling with rising communal tension that escalated into deadly violence, shaking the foundations of unity and harmony in this region.
The unrest began sometime around the first week of May 2023, leading to at least 30 individuals losing their lives by May 6th, with the death toll escalating to a reported 58 just a couple of days later. The exact genesis of this widespread violence remains shrouded in a complex tapestry of ethnic rivalries and socio-political dynamics, but the devastation left in its wake is undeniable and heart-rending.
At the heart of Manipur’s violence was the destruction of buildings and vehicles, leaving many parts of the region looking like a war zone. In towns and villages across Manipur, houses were reduced to ashes, whereas neighboring properties remained untouched, a stark and horrifying testament to the selective, targeted nature of the violence.
While the immediate causes of this ethnic violence are likely diverse and intertwined with the region’s complex history, it is clear that the situation reached a point of widespread crisis following a rally by indigenous groups. Yet, the specifics of what transpired at the rally that sparked the violence remain vague, an opaque point that begs further investigation.
In the aftermath of this violence, a significant part of the narrative has revolved around the region’s future, with some calling for the creation of a separate state as a solution to these recurring clashes. However, this idea could fundamentally change the geopolitical and social landscape of the region.
While the idea of separation may seem like an attractive solution to some, it is vital to consider the underlying issues that lead to such violent conflicts. Socio-economic disparities, cultural misunderstandings, political marginalization, and historic grievances are all factors that can fuel ethnic tensions. Addressing these issues is paramount to the long-term safety of minority communities.
While the immediate damage from the violence is stark, the long-term impacts on the region are profound and multifaceted. The riots have torn apart communities, disrupted normal life, and created a climate of fear and uncertainty. As the violence forced many people, like Mamang Vaiphei, to flee their homes and hide. This mass displacement of people adds another layer to the crisis, as individuals and families are left homeless, with their lives uprooted.
Socially, the riots have caused a significant strain on inter-ethnic relations. The recent violence threatens to deepen divisions among these groups and foster an environment of hostility and mistrust. The collective trauma experienced by the people of Manipur is bound to have lasting effects on the social dynamics of the region.
Economically, the riots have led to immediate and potentially long-term disruption. Local businesses have likely been affected, leading to lost livelihoods and economic instability for many families. The need to rebuild physically damaged areas will require substantial resources, placing an additional financial burden on the state.
Politically, the unrest could lead to changes in local and perhaps even national politics. The response of the local government to the riots, as well as the perceived effectiveness of their efforts to maintain peace and protect citizens, will undoubtedly influence public opinion and potentially sway future elections. Furthermore, the riots have triggered calls for the creation of a separate state, a political move that could fundamentally reshape the region’s geopolitical landscape.
Culturally, the violence disrupts the vibrant tapestry of Manipur’s diverse communities. Each ethnic group in Manipur contributes to the region’s cultural richness, and the riots threaten to overshadow this diversity with a narrative of division and conflict.
In this time of crisis, the people of Manipur, the Indian government, and the international community must work collaboratively to address the root causes of these tensions. The current situation should serve as a catalyst for serious discussions on ethnic relations, power sharing, and socio-economic disparities, as well as the region’s political future.
The recent events in Manipur underscore the delicate balance of maintaining peace and coexistence in a diverse society. It is a poignant reminder of how quickly tensions can escalate to violence and how deeply that violence can impact communities. These incidents should serve not only as a sobering wake-up call but also as a rallying point for peace-building efforts that prioritize dialogue, understanding, and unity over division and conflict.
As the dust settles and the process of rebuilding begins, one can only hope that the events in Manipur serve as a catalyst for lasting change. It’s a testament to the resilience of the human spirit that, even in the face of such adversity, there remains hope for a peaceful future.
The road to healing the wounds of communal violence is undoubtedly long and arduous, but it is a journey that the people of Manipur must undertake to secure a harmonious and stable future. The story of Manipur’s unrest should be a lesson for us all about the importance of understanding, respect, and cooperation in a world growing increasingly diverse every day.
The Future of Geopolitics Will Be Decided by 6 Swing States
The world is witnessing a new era of great power competition between the United States and China, with Russia playing...
Democracy in Disarray: India’s Uphill Battle against an Escalating Surge of Anti-Democratic Sentiments
India has consistently bragged about being the world’s largest democracy and having an ostensibly ‘secular’ outlook for many decades. The...
Bombing of the Kakhovka Dam could be the worst, and most desperate war crime yet
Social media was abuzz on Tuesday morning with footage showing the Kakhovka Dam had been breached, with water surging down...
Civil Society Engagement at the Core of US-African Relations in Multipolar World
United States has held its 8th annual civil society forum to review progress, examine challenges and renew interest in forging...
Gen. Li Shangfu: “When jackals or wolves come, we will face them with shotguns”
In his first international public address since becoming defense minister in March, General Li Shangfu told the Shangri-La Dialogue that...
Republicans accuse Biden of corruption
Biden whistleblowers ‘fear for their lives’: Republicans say FBI won’t hand over alleged $5 million ‘bribery’ document because key informant’s...
China-Taiwan Peace Trade Relations Amid Political Tension
The conflict between China and Taiwan that has been going on for a long time began when the civil war...
Central Asia3 days ago
The China-Central Asia Summit Downsizes Russian Role in the Region
Defense4 days ago
Rising Powers in the Asia-Pacific: Implications for Global Stability
Finance3 days ago
Bloomberg: Backlash against weaponized dollar is growing across the World
Diplomacy4 days ago
Water Diplomacy – A Tool for Peace and Well Being
Southeast Asia4 days ago
China’s Stranglehold on South East Asia: Shaping the Future of the Region
World News4 days ago
BRICS meet with ‘friends’ seeking closer ties amid push to expand bloc
Finance3 days ago
Sanctions against Russia like a “tiger without fangs”
World News4 days ago
FT: CIA chief made secret visit to China