Irked by rise in onion price to Rs. 100 a kilogram, Indian prime minister, Narendra Modi, directed ten intelligences, including RAW and IB to investigate the price spiral. He allowed them to snoop, through Israeli software Pegasus, What Sapp and market chats of hoarders, politicians, and journalists. Despite his academic shortcomings, Modi understands economics.
In his book The Age of the Economist, Daniel R. Fusfeld tells how economics governs our life today. In today’s market economy, no country can live in economic isolation (sakoku).
How India wields its economic clout: The world should shun India because of its human-rights violations in Kashmir. But, it isn’t so because of its economic clout. Through aid to or trade, India influences not only internal but also external policies of client states: Rafale deal with France, US$3 billion Raytheon/Lockheed helicopter and air defence deal with USA, and trade relations with Saudi Arabia and the United Arab Emirates.
In Sri Lanka, India brokered to remove Mahinda Rajapaksa from office 2015. Rajapakse had given China strategic entry into Sri Lanka, by leasing out Hambantota port to China and allowing it to build Colombo port and dock its submarines in Sri Lanka. Now Sri Lanka has handed over control of Humbantota to India. India gave $45.27 million aid to develop KKS harbour in Sri Lanka (Jan 12, 2018).
India extended 2.1-billion Nepalese Rupee (NR) aid to Nepal as reimbursement of the first tranche of housing support to 42,086 governments of India- supported beneficiaries in Nuwakot and Gorkha districts. It pledged Nepal US $1 billion aid and soft loan (25%) for Nepal’s post-earthquake.
She pledged to contribute Rs 4,500 crore to Bhutan’s twelfth five-year plan (2018 to 2023). It completed Mangdhechu Hydroelectric project and Ground Earth Station for South Asia Satellite and launch of RuPay card in Bhutan. Besides, it committed assistance of Rs 4,500 Crore for implementation of development projects and Rs 400 Crore for transitional Trade Support Facility during Bhutan’s 12th Five Year Plan (2018 – 2023). Under the 12th 5-Year Plan, 51 large and intermediate projects and 359 Small Development Projects (SDPs)/High Impact Community Development Projects (HICPDs) are being carried out. India’s commitment to the 12th Plan constitutes about 14.5 per cent of the Plan outlay which is around 38.75 per cent of the capital outlay and 71 per cent of the total external assistance.
To Bangladesh, India extended three $8 billion loans. A total of 1.16 Gigawatts of power is now being supplied by India to Bangladesh. The increase, in the reckoning of the Prime Minister, signifies a “quantum jump from megawatts to Gigawatts and is symbolic of a golden era” in bilateral ties. Markedly, Mamata Banerjee has pledged to raise the power supply to Bangladesh to 1,000 MW. Though electricity will not be a substitute for Teesta water, the plan to boost power supply is on anvil.
Launching the ‘Act Far East’ policy, India’s Prime Minister Narendra Modi announced (September 5, 2019) that India will give a line of credit worth US$ 1 billion to Russia for the development of Far East.
India has provided Lines of Credit worth $ 96.54 million to Niger for projects in transport, electrification, solar energy and potable drinking water. It granted $15 million to Niger for organising African Union Summit
India and Japan have launched their own joint initiative in the shape of Asia-Africa Growth Corridor (AAGC) vis-a-vis China’s Belt-Road Initiative for undertaking development and cooperation projects in the African continent.
Knee jerks to Malaysia and Turkey: Malaysian prime minister Mahathir Mohamad had said in September that India had “invaded and occupied” Kashmir. He was joined by Turkey’s President Recep Tayyip Erdogan, who said that India had virtually imposed “a blockade” on Kashmiris. About Citizenship Amendment Act, he commented he was “sorry to see that India, which claims to be a secular state, is now taking action to deprive some Muslims of their citizenship”. These views on Kashmir and the Citizenship (Amendment) Act (CAA) irked India. He India lodged a formal protest stating that it went against the accepted diplomatic practice of “non-interference in each other’s internal affairs”.
Already, India was angry as Malaysia refused to hand over Indian Islamic tele-evangelist Zakir Naik. He was given asylum in Malaysia in 2018 despite the Indian allegations of money laundering and “hate speech”. Prime Minister Mahathir Mohamad’s views on Kashmir and the Citizenship Amendment Act irked the Indian government, which retaliated by unofficially stopping the import of palm oil from the country.
Nepal, too, will be affected by the de facto Indian ban on Malaysian palm oil. Malaysian palm oil is refined in large quantities in Nepal and exported to India.
Malaysia may retaliate if India is unrelenting in its decision to stop the import of palm oil. Mahathir Mohamad’s media adviser has called for tighter regulations for Indians working in the country and a reciprocal ban on the import of Indian products. More than 100,000 Indians are employed in Malaysia, constituting more than six per cent of the foreign workforce.
The Indian government also sought to penalise Turkey by not allowing it to bid for construction contracts. During February 2020 visitto Pakistan, he desired Turkey to be a partner in CPEC construction projects. India’s frantic effort to get Pakistan blacklisted is well known.
Pariah states: Economic sanctions, aid or trade embargo or `terror’ labels are extensively used to punish weak states by powerful states. See how the USA uses a flexible format to dub or delete a country as axis of evil, money-laundering conduit, sponsor of terrorism or pariah (Tamil paraiyar, outcastes), or rogue (Iran, Sudan, North Korea, Cuba, Venezuela). Ottoman Empire was persecuted as an outcast by European States since the Treaty of Westphalia in 1648 until the nineteenth century on a `religious basis’.
Deon Geldenhuys. points out criteria for declaring a state pariah_ having ‘artificial borders’ (Iraq), siege mentality, anti-West sentiments and desire to subvert the international status quo (Pakistan?), or not being a considerable `world power’(” Pariah States in the Post-Cold War World: A Conceptual Exploration, March 5, 1997). China being a `world power’ is not pariah despite human-rights complaints in Xinjiang.
Inference: Through its economic advantages, India tried to coerce states not to support Pakistan on Kashmir and other just issues. Pakistan should promote national harmony to tide over economic hurdles and emerge as a `world power’, a beacon of tolerant democracy.
