Bilateral relations

India-Seychelles

Assumption Island naval base: agreed by both PM in 2015

Opposition protested and agreement declined

Still India welcomed their PM: announced Line of credit, handed Dornier Aircraft

Until 2021 election there: India has kept abeyance, room open for renegotiations, propelling softer approach

India-Mauritus

India publicly took on their leaders-->setback in strategic position

Maldives sending back naval gaurd back

Public recrimination having salutary effect

India-Nepa;

Nepal dependent on india for Sea transit trade

Madhesi Blockade 2015- changed the course of relation
Nepalis viewed it as move against land locked neighbor from India

China investing heavy in nepal: Railway. optic fibre

Need for India to regain monopoly-->rewrite geopolitics

India-USA

Irritants

USA coming out of Iran deal, and wants India tp revise relationships with Iran

Countering America·s Adversaries
Through Sanctions Act (CAATSA) - Aims to counter agression of Iran, Russia and N.Korea through punitive measures

US tough policy on trade tariffs

Communications Compatibility And Security agreement(COMCASA)-to provide legal trasnfer framework for transfer of communication security equipment from US to India-->increase interoperability between forces

Indian foreign policy

Right track

Well thought out, emotional engagements add as force multiplier to soft power

Tapping, harnessing Hindu and Buddhist civilisational linkages for strategic benefit

Record level of FDI and improvements in global ranking

Capitalising on closer defence and strategic cooperation with US, japan and Israel

Renewed thrust with Gulf (UAE, Saudi)-->Indian diaspora, energy, sovereign wealth fund investments secured

India cast aside osolete concept of non-alignment and is entering into deeper relations

Wrong track

Indian neighbor hood bending towards china

Failed to maintain equilibrium between US, China, Russia, EU and ASEAN-->geostrategic implications

Antagonising both china and russia-->russia announced anti-terror exercise with PAK, China investing in SL

Conclusion/Implications

India's foreign policy resulted in loss of
eminent position in South Asia

Hitherto reliable partner, Russia is leaning towards China

Indian neighbors leveraging possibilities with China

Pakistan utilising opportunity>leaning on OBOR

Complicated scenario:challenges and headwinds;need to economically strengthen to improve defense tech: implement agreed upon projects

In news

lndia-U.S. 2+2 Dialogue is being held- purpose is to get four key
policy makers on the same page

Military ties and exercises have increased rapidly but diplomatic convergences are not keeping pace.

Key defence agreement not completed yet

Talks will review the US- South Asia policy on Afghanistan and its Indo-pacific strategy

Imp points to discuss

Operationalise India's status as a Major defence Partner

Concluding various defence purchases at faster rate

Signing of COMCASA that has been pending with few objections now

U.S. restrictions on defence purchases
from Russia under the new CAATSA

U.S. is likely to push for India's support
in its campaign against Iran
-Will pressurise India to reduce oil Imports

India-US convergence after Cold war

Because both were democracies
Both parties in USA supported Indian policies
Indian diaspora contribution in USA
Large tech companies finding markets in India

End of cold war, so changing global and regional realities

American private sector began to look at India with greter interest

Trajectory after cold war

1ndia conducted nuclear tests in 1998,
USA imposed sanctions

Dozen rounds of talks took place

changing perceptions leading to
the gradual lifting of the sanctions.

on, lndia-U.S. Bilateral Civil Nuclear
Cooperation Agreement was concluded in 2008

India-US defense relations: Chronology

USA declared India "Major Defence Partner"
in June 2016, due to which India can haveaccess to technologies just like USA's close
allies i.e., some of the NATO countries

LEMOA was signed, because of which
militaries of both the countries can use each others assets and bases

US now eased controls on high-technology
dual-use exports to India
It granted
exemption under the Strategic Trade Authorisation 1 List

more than threefourths
of lndia 1s defenceequipment, during the Cold
War Era was of Soviet origin.
But Over the past 5 years, US became the largest
arms supplier to India.

Critical Issues

CAATSA

This enables the U.S. Government to sanction
countries that engage in 'significant transactions' withRussian military and intelligence entities.

Proposed
purchase of the S-400 missile defence
system would attract CAATSA sanctions

A waiver was introduced now to cover India, Indonesia
and Vietnam

it requires certification by the U.S. and the country
concerned should gradually reduce its dependency onRussian equipment and cooperate with the U.S. on
criticaI security issues.

Iran sanctions

US imposed unilateral sanctions on Iran after its withdrawal from the nuclear deal

India has stepped up crude oil imports from Iran
And is also developing chabahar port

Iran Freedom and Counter-Proliferation
Act (2012)contains a waiver provision in case
of activities for reconstruction assistance andeconomic development for Afghanistan and
this is US priority also.

Way forward

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