SAARC
ž The
South Asian Association for Regional Cooperation (SAARC) comprises eight
member states (Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and
Sri-Lanka) .The SAARC was established when its Charted was formally adopted on
8 December 1985.SAARC is a manifestation of the determination of the people of the
South Asia to work together in a spirit of friendship, trust and understanding
and to create an order based on mutual respect, equity and shared benefits.
ž The
South Asian Association for Regional Cooperation (SAARC) is an
organization of South Asian nations, founded in December 1985 and dedicated to
economic, technological, social, and cultural development emphasizing
collective self-reliance. Its seven founding members are Bangladesh, Bhutan,
India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the
organization in 2005. Meetings of heads of state are usually scheduled
annually; meetings of foreign secretaries, twice annually. It is headquartered
in Kathmandu, Nepal.
ž The
11 stated areas of cooperation are agriculture; education, culture, and sports;
health, population, and child welfare; the environment and meteorology; rural
development (including the SAARC Youth Volunteers Program); tourism; transport;
science and technology; communications.
ž The
concept of SAARC was first adopted by Bangladesh during 1977, under the
administration of President Ziaur Rahman. In the late 1970s, SAARC nations
agreed upon the creation of a trade bloc consisting of South Asian countries.
The idea of regional cooperation in South Asia was again mooted in May 1980.
The foreign secretaries of the seven countries met for the first time in
Colombo in April 1981. The Committee of the Whole, which met in Colombo in
August 1985, identified five broad areas for regional cooperation.
Introduction
to India
ž India
– an influential nation in South Asia, also known as the Asian tiger is home to
the world’s second largest population. It is a country of bulk variety,
arguably the most sundry nation in the world, whether it concerns religious,
cultural, or ethnic diversity. It operates the world’s most vigorous democratic
republic, and has had a key voice in global affairs since its
"creation" with the division of the Indian subcontinent shortly after
the Second World War by the British Empire.
ž Its
history is undeniably full of both grandeur and austerity. It has shown its
considerable ability to endure trying consequential events through an intense,
yet remarkably peaceful struggle for freedom from the noose of imperialism
during the late nineteenth and early 20th century. With a strong and
traditionally democratic culture that has maintained India’s relative
nonconformity throughout the millennia, all signs point to a rapid increase in
acceptance of India’s rising status in the international community.
ž India’s
hard power is measured by its substantial military, which has sustained its
autonomy and desire through many wearisome points in the nation’s history. The
country deploys a large UN force, and has an immense strategic importance due,
in part, to its rapidly developing nuclear sector.
ž The
notable aspects of India’s soft power cover as many different spheres as
imaginably possible, from simple agriculture, to ritual religious practice, to
quality technological services. With a rapidly growing consumer base, and a
swiftly rising overall economic output fueled by its young and increasingly
educated population, India has begun its trip on the path to becoming a
dominant world power within the next century as opposed to the dormant role it
has played so far.
ž West
India contains the states of Gujarat, Maharashtra, Goa, and part of the
massive, central state of Madhya Pradesh. The west coast extends from the
Gujarat peninsula down to Goa, and it is lined with some of India's best
beaches. The land along the coast is typically lush, with rainforests reaching
southward from Bombay all the way to into Goa. A long mountain chain, the
Western Ghats, separates the verdant coast from the Vindya Mountains and the
dry Deccan plateau further inland.
ž Home
of the sacred Ganges River and the majority of Himalayan foothills, East India
begins with the states of Madhya Pradesh, Bihar, Orissa, which comprise the
westernmost part of the region. East India also contains an area known as the
eastern triangle, which is entirely distinct. This is the last gulp of land
that extends beyond Bangladesh, culminating in the Naga Hills along the Burmese
border.
ž India
reaches its peninsular tip with South India, which begins with the Deccan in
the north and ends with Cape Comorin, where Hindus believe that bathing in the
waters of the three oceans will wash away their sins. The states in South India
are Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala, a favorite leisure
destination. The southeast coast, mirroring the west, also rests snugly beneath
a mountain range---the Eastern Ghats.
ž Because
of India's size, its climate depends not only on the time of year, but also the
location. In general, temperatures tend to be cooler in the north, especially
between September and March. The south is coolest between Novembers to January.
In June, winds and warm surface currents begin to move northwards and
westwards, heading out of the Indian Ocean and into the Arabian Gulf. This
creates a phenomenon known as the south-west monsoon, and it brings heavy rains
to the west coast. Between October and December, a similar climatic pattern
called the north-east monsoon appears in the Bay of Bengal, bringing rains to
the east coast. In addition to the two monsoons, there are two other seasons,
spring and autumn.
Culture & People
ž With
nearly 1 billion citizens, India is the second most populous nation in the
world. It is impossible to speak of any one Indian culture, although there are
deep cultural continuities that tie its people together. English is the major
language of trade and politics, but there are fourteen official languages in
all. There are twenty-four languages that are spoken by a million people or
more, and countless other dialects. India has seven major religions and many
minor ones, six main ethnic groups, and countless holidays.
ž Religion
is central to Indian culture, and its practice can be seen in virtually every
aspect of life in the country. Hinduism is the dominant faith of India, serving
about 80 percent of the population. Ten percent worship Islam, and 5 percent
are Sikhs and Christians; the rest (a good 45 million) are Buddhists, Jains,
Bahai, and more.
India-Facts
ž Mixed
Economy
ž Population 1.17
billion -1/6th of world's population
ž 1.3%
annual population growth
ž 66%
Literacy rate
ž 22%
below Poverty Line
ž 7.8%
Unemployment Rate
ž 1.064
males/female
ž Life
expectancy 65 years
India’s Involvement in
SAARC
ž India
succeeded in building excellent trade relations and cordial relations on
social, political and economic front with the 6 SAARC countries. India has been
an active member of the SAARC and aims and fostering better mutual
understanding by supporting people-to-people initiatives. India offers a great
source of potential investment in terms of trade and commerce as it is the sole
SAARC member to be sharing borders with all 6 members via land or sea. SAARC’s
prime objectives include: promoting the welfare of the people of South Asia,
accelerating the Economic growth, social progress; providing dignified
livelihood to all individuals and on a larger scale promoting the self-reliance
amongst the South Asian nations and building trust and appreciation for other
countries’ problem. In the way of achieving these objectives, poverty has been
major hindrance. India offered a contribution of US $ 100 million at the twelfth
Summit held at Islamabad in 2004.
ž India’s
disputes and military rivalry with Pakistan is believed to be the cause of
ineffectiveness of SAARC in integrating South Asian countries. If Indo-Pak
relations improve, many SAARC nations could benefit from it by improved trade
relations and creation of better export markets. SAARC has failed to work
towards regional co-operation mainly because India has been reluctant to solve
major regional disputes which have given rise to economic and political
problems in South Asia. Since India has an unbeatable economic, military
strength and international influence compared to all 6 members of SAARC, the
disparity of power brings in the reluctance from smaller states to work with
India. They have fear of dominance from India if they co-operate in order to
facilitate faster economic growth.
ž India
has also heightened the fears of fears of South Asian nations by acting in a
dominating and arrogant way. Its dispute with neighboring Bangladesh due to
redirection of water flows impacting Bangladesh’s agricultural production has
kept Bangladesh afraid of its powers. Nepal is also fearful that India may take
over its world trade because of its geographical suitability. As a result of
all these fears and disagreements, SAARC has failed to promote regional
co-operation and mutual trust amongst the South Asian countries.
ž The
tension between India and Sri Lanka that prevailed for 4 years over Indian
Military trying to curb the revolution by the Liberation Tigers of Tamil E Elam
and Indo-Pak Dispute over the Kashmir valley and the resulting Trade violations
are enough to prove that South Asian countries fail to achieve SAARC objectives
by any means.
ž India
must come to the front and initiate measures to encourage nations to prove
their mettle and make the SAARC summit a meaningful affair. Appropriate
measures should be taken with the intent of maintaining peace and resolving
disputes amongst the SAARC member countries. Special Economic Zones and Export
Promotion Zones should be created in all member countries to make trading
easier and smooth the relations between the South Asian nations.
India’s
relation with SAARC nations
Indo-Pakistan Relation
ž Indo-Pakistan
relations are significant factors in geo-political and military-strategic
situation in South Asia. A series of problems remain unresolved after the
partition of British India. The clashes between Hindus and Muslims at the time
of partition and the wars explain the continuing doubts between these two
countries which have negative impact in the south Asian region. Stability in
South Asia has been achieved only through a fragile 'balance of power' between
Pakistan and India. Indo-Pakistan relations can be fully examined only by
investigating the military-strategic and political situation on the global
level, first of all, relations between Russia and Republics of central Asia,
U.S.A. and China and the relations of these countries with India and Pakistan
are to be studied for a fuller understanding of Indo-Pak relations. The
interests of these countries and levels of involvement in the conflict in South
Asia have been different and decided by their geo-strategic positions and how
each of them looks at its interests. Retaining the territorial integrity and
national security of the erstwhile U.S.S.R. needed the establishment of
friendly and good neighborly relations with the countries of South Asia,
adjoining the Southern borders of the state. The development, strengthening and
improvement of political, trade and economic relations with the South Asian
countries formally was based on the relations with India, as for many years,
Soviet leaders looked up the situations in south Asia mainly through Indian
eyes. American Interests in South Asia
contributed American global politics and to a great extent was based on the
evolution of Soviet-American relations. American interests in South Asia were
based upon close relations with Pakistan, its political and military ally. Now
the American's policy in South Asia is moving towards India.
ž Global
factors play a predominant role in South Asia and this has a great impact in
Indo-Pakistan relations. If the Kashmir problem cannot be analyzed without
these outside influences, the problem of nuclear non-proliferation cannot be
investigated without reference to the regional factors. Pakistan and Indian
positions on these issues and many other problems are diametrically opposed.
Pakistan's attempts to "counter-balance" India's dominance in
population territory and natural resources and level of socio- economic and political
development and consolidate its position especially after the emergence of
Bangladesh in 1971 were based on US and Chinese military and economic
assistance. The purpose was strengthening its defense capability and also to
preserve an internal parity in the region. Pakistan's foreign aid requirements
were: based on American desire to involve this strategically important country
in containing communism during the period of cold war. Prior to 1971, the
problem of regional security in South Asia was related mainly in its strategic
aspects. To Pakistan, it maintain its territorial integrity and for India, It
meant to strengthen its position in South its territorial integrity and for
India, It meant to strengthen its position in South Asia, in non-aligned
movement and in the international sphere. The Pakistani conception of national
and international security with the settlement of international conflicts with
the participation of outside forces contradicted the Indian appros.ch to
national and regional security based solving on all disputes by the interested
parties themselves without outside intervention. Kashmir has been the main cause of friction
between India and Pakistan. Kashmir has geopolitical and strategic significance
due to its location and the centre of Asia, where the borders of the Central
Asian Republics of the former Soviet Union, India, Pakistan, Afghanistan and
China meet.
ž The
issue has created the balance of forces on the regional as well as on the
global level. Since the mid 1950's in difference platforms including the UNO
the USSR took the position that Kashmir issue, if any should be solved within
the framework ~f the Indian Republic. It also holds the view that Pakistan's
occupation is illegal. The physical proximity of Kashmir to the Soviet border
and its strategic significance encouraged the US to back Pakistan and treat
Kashmir issue as an open one. Washington stated that the people of Kashmir be
granted the right to self determination through the process of plebiscite under
international auspices in accordance with UN Security Council Resolution of 21
April 1948. Hence in South Asia the cold war between the super powers and the
east west confrontations including the attitude of the third parties have
shaped the relations between India and Pakistan. By the late 1950's the
situations because more complicated and China failed to fit into the rivalry
between the two super powers and China took its own position even in the
relations between India and Pakistan. During that period China was in
confrontation with Soviet Union and tried to prevail over India, its
geo-political rival in Asia and the third world. China achieved mutual
understanding and co-operation with Pakistan - an ally of the US, which was one
of China's main enemies. Though China has asserted Pakistan that it would
support on all important issues, including assistance for the nuclear
programme, China did not go any further during the war between India and
Pakistan, apart from delivering arms and protesting to India in a threatening
manner. Military conflicts between India and Pakistan have not brought any
results. In 1972, a diplomatic solution was tried through Simla Agreement. The
agreement stands for solving outstanding issues and disputes only through
peaceful means at bilateral negotiations.
India's
Relations with Nepal
ž India
considers South Asia as its geopolitical region of influence and expect that
its smaller neighbors pay due regard to its sensitivities. Pakistan becomes
angry when India presumes 'the right' to prescribe what kind of weapons system
is sufficient for Pakistan. The Nepal's ruling class are equally resentful at
how India over runs Nepal, politically, culturally and economically. Bangladesh
has deep grievances over water arrangements; India's 'big brother' attitude
creates suspicion and hostility. They look at India's policy of bilateralism as
a method of coercive diplomacy. In turn, India feels that its rights and
security sensitivities are not respected. India has not the politico-military
and economic power to compel acquiescence, except in the case of the
land-locked states of Nepal and Bhutan. India may have failed in its efforts to
block arms transfer to Pakistan but it has been much more successful in
preventing US arms sale to Nepal in 1983 - 84 or in discouraging US plans to
Sri Lanka to set up high power transmission facilities or build an oil tank
complex in Trincomallee. However it is an accepted fact that India has played a
significant role in creating balance in order to ensure stability in the south
Asian state system, by invitation in the Maldives, by forces of circumstances
in East Pakistan and by agreement in Sri Lanka. The politico-military backlash
against the role of the IPKF in Sri Lanka has created a poor image and also it
adversely affected the relations between Sri Lanka and India and that of LTTE
and Government of India. It has also brought home to the Indian ruling class
the limits of Indian power to shape the regional environment. India's move to
merge the Protectorate of Sikkim was an object lesson in the ability to use a
politically non-dominant ethnic community the Nepali in Sikkim to change the
politico-demographic reality there. India's conflict of interest with these
smaller countries comprises minor disputes over territory like Kachchativu with
Sri Lanka, Kalapani with Nepal, Tin Bhiga and New More Island with Bangladesh.
ž Just
like Pakistan, the other neighbours Nepal and Sri Lanka have invited extra
regional powers 1.0 counter Indian power. Nepal sought to play off China against
India. India's relationship with Nepal began when India set up its embassy at
Kathmandu. Bhabani Sen Gupta and others in their study on, Regional
co-operation and Development in South Asia explain how in 1951, after the
liberation of Tibet by Communist China, Government of India placed Nepal within
India’s security orbit. Nepal is perceived as a buffer state between India and
China and its overtures were seen as threatening and punished for chat. Prime
Minister Rajiv Gandhi showed his unhappiness at an Arms Agreement between Nepal
and China by closing the transit points and thus bottling up land locked Nepal.
Before that, Prime Minister Rajiv Gandhi did not approve Nepal's proposals for
International recognition as a 'Zone of Peace'. According to Bhabani Sen Gupta,
India's acceptance of the zone of peace concept would not have affected on the
Indo - Nepal Treaty, but its impact on the Nepalese elite would have been
effective. He further says that it would not make a least change in the
geo-political realities of the Himalayas or in Nepal's relation with India and
China. Twenty years later, in the context of the Gujral doctrine's new
responsiveness towards the sensitivities of neighbors, India has agreed to
review the Indo - Nepal treaty. There is public opinion in Nepal against
unequal agreements on the sharing of waters of the rivers Gandaki and Koshi.
Nepal like other neighbors looks at Indian bilateralism as euphemism of for
hegemonic diplomacy. The 1996 agreement on Mahakali River symbolizes the problems
of suspicion and mistrust and the promise of co-operation. The 1950 Treaty
established the unique open border between India and Nepal. The Indian security
believes that the theory about a greater Nepal across the Trans-Himalayan
region has again been revived, particularly in the context of tile
politico-demographic shifts in Darjeeling and Sikkim.
ž The
Greater Nepal concept is manipulated to give political legitimacy to Bhutan's
expulsion of 110,000 people of Nepalese origin. Nepal wants to Involve India to
pressurize Bhutan to take back the Lhotsampas. Bhutan says that they are
Nepalee citizens. Increasingly, the management of the challenge of population
movements - refugees, migrants and stateless peoples - requires a co-operative
regional responds. A regional regime will de-politicize the issue of giving
refugee and build up group pressure on states not to make their citizens
stateless. The encroachment of Indian Territory by the Nepalese citizens is
another irritant in the relationship between these two countries. Over 5839
acres of land along river Gandaki in West Champaran district is presently
reported to be under illegal occupation by the Nepalese citizens. India's
Border with Nepal is not only open but has become insecure by the militants,
criminals and anti-India elements. It is relevant to be noted here that to curb
the menace from the militants and criminals, India has been engaged in
modernizing the Nepal defense structure by providing assistance in accordance
with the 1950 Treaty and Arms Assistance Agreement 1965, provides an important
military link between the two countries. A militarily stronger Nepal would
reduce Chinese threat to India through Nepal becoming a more effective buffer.
Only in an atmosphere of peace and friendship the security arrangements are
effective and implementative. Even if one signatory makes a half hearted
attempt to accept the treaties and arrangements then the effect of the same is
diminished. One of the biggest criticisms against India, according to the
Nepalese, is the Indian bureaucracy and its mindset to rule Nepal with a carrot
and stick policy. There should be attitudinal change amongst the policy makers
in India who would be sensitive to Nepal's sovereignty and adhere to good
neighborliness.
ž The
draft proposal sent by India in 1989 shows the Indian minds as to treat Nepal
with suspicion who, it is said can harm India's security interests, India's
draft proposal tried to dominate Nepal. The trade relations between India and
Nepal require special attention. The government of India cannot look after the
economic needs of Nepalese because of its own compulsions. India is hard
pressed for its resources and its economy for its development. On each and
every issue Nepal talks about its sovereignty and independence being under
constant threat and India talks about its security interests. It would be in
the interest of both the countries to strike a balance between the two.
ž One
has to observe security and co-operation from a holistic approach. Small state
Nepal can feel secure if it develops economic political and cultural
dimensions. On the other hand India should stress on developing confidence
building measures (CBMs) with Nepal in order to strengthen its security
interests. Indo-Nepalese relations have also been occasionally strain over the
form of government operating in Nepal (The communist could assume power in
Nepal only on anti-India plank) and certain trade related and transit problems.
For e.g.: the trade blockade of 1989. Moreover, it has been said that bureaucracy
and proclaimed stringency on the part of Indian authorities is hampering in
Indo-Nepal trade ventures. It must also be noted here that the controversy
between Nepal and Bhutan regarding the Nepalese refugees in Bhutan and the use
of Nepal by extremists and secessionist elements from North-East India are some
other problems that could assume significant dimensions in the coming years.
Indo-Bangladesh
Relation
ž The
problem of Bangladesh migrants is a major tension between India and Bangladesh.
What is significant to note here is that it is engulfed in the fundamentalist
political discourse in India. It is a fact to remember here is that the
political parties like B.J.P. are targeting Muslim Bangladeshi migrants.
Incapability of Bangladesh to provide food and security to its citizens makes
it unavoidable that people will cross the border for a livelihood. Apart from
that, India should take some of the responsibilities for the making of
environmental refugees in Bangladesh as a consequence of the degradation caused
by the Indo-Bangladesh Farraka agreement, fencing the border is not an
alternative.
ž An
integrated economic development of the region is essential for more regional
co-operation, despite of natural gas in Bangladesh which can transform the
economy of the region. Foreign investors are looking at India as the natural
market for piped natural gas from Bangladesh. This would remove the history of
distrust and suspicion, which has been preventing co-operation, especially
after the emergence of Bangladesh. Anti-India propaganda is being launched by
the ruling elite of Bangladesh. The Farraka Water Barrage Agreement is looked
at as the symbol of India's hegemonic bilateralism. The revised 1997 Ganga
Water Agreement represents an approach more responsive to sensitivities of
Bangladesh. For India and Bangladesh, the denial of sanctuary to militants
across the border is very essential. If done so, this can bring about better
relationship between India and Bangladesh. India has been backing militant,
Chakma groups like the Shanti Bhahini while Bangladesh has been providing
sanctuary to insurgent groups like the Bodos and ULFAS.
ž Indo
- Bangladesh relations suffered due to the persisting disputes like the problem
of illegal migration from the Chittagong Hill Tracts and the demarcation of
boundaries involving fertile island and enclaves. Moreover, both the countries
frequently each other in their respective troubled territories. The bilateral
talks and negotiations are not yet reached in the desired destination of
amicable settlement in the issues like sharing of Ganga water, Farrakka Water
Barrage, Electric wire fencing across the borders, surprised attacks from
Bangladesh rifles against India's Border Security Forces and the anti-India
sentiments and all other forms of insurgencies. To illustrate this, Bangladesh
has repeatedly accused India of supporting the militant wing of the Chakma
insurgency of Bangladesh, where as India believes that Bangladesh encourage
various subversive and guerrilla activities in the North Eastern states of
India such as Tripura and is or Misoram.
Indo-Sri
Lanka Relation
ž The
Tamils are a minority in Sri Lanka. The majority Sinhalalites have followed a
policy of discrimination against the Tamils. This has led to a civil war
between Tamil groups and Sri Lanka. Thousands of Tamil refugees have come to
India since the beginning of civil war in Sri Lanka. India has provided
humanitarian relief of the refugees. Emotional solidarity with their persecuted
ethnic kin encouraged the state government in Tamilnadu to find the militants.
It is alleged that Prime Minister Indira Gandhi and Prime Minister Rajiv Gandhi
armed and trained the militants. Sri Lankan President Julius Jayawardane's
close proximity with the USA, UK and Israel were looked by the Indian
government as complicating India's security interests. This was the time when
India was building up its regional muscle and wanted no extra regional power to
get involved in its neighborhood. There was a fear precipitated, that the
partition of Sri Lankans would take place due to the acute ethnic crisis. India
went for a peace agreement with Sri Lanka and sent IPKF to implement it. Three
years later, Sri Lankan government forced India to withdraw its Forces from the
Island and learned a lesson from this humiliating exit. The assassination of
Rajiv Gandhi created a situation, wherein India stopped its moral support to
Tamil militants. Successive Sri Lankan governments have been cautious in
respecting India's sensitivities about a foreign presence in its backyard.
Indo-Sri Lankan relations go deep into history, which is shrouded in myth,
mystery and miracles. From pre-historic times there has been a flow of people
from the Northern and Southern India in to Sri Lanka. "The Buddhist
Sinhalese derived their spiritual strength from the north of India and the
Hindu Tamils derive their spiritual sustenance from their ancestors of South
India. Sinhala Buddhists and Hindu Tamils were involved in historical rivalry
and antagonism after the advent of South Indian invaders on the Island. During
the colonial rule, India and Sri Lanka did not have independent interaction
except in late 18th and 19th centuries when mass indented
labor from South India was recruited on tea and coffee plantations.
ž The
problems arising out of divided communities spread across the South Asian
countries are particularly intractable when open borders encourage constant
interaction between the populace of these countries. Indo-Sri Lankan relations
also remain strained over the discrimination and occasional mistreatment meted
out to Tamils in Sri Lanka. Indeed, relations between India and Sri Lanka have
also not improved much due to the withdrawal of the IPKF following the break of
1987 Indo-Sri Lankan Accord and the hectic democratic efforts of President
Kumaratunga for restoring peace in the island. Both countries continue to view
each other with suspicion regarding the LTTE crisis, while Sri Lanka battles as
against the increased hostility of Tamil Tigers who are disrupting the
stability of the Island with wide connotations for the entire region. Recent
reports have repeatedly suggested that India is keeping a cordial relationship
towards Sri Lanka, even Sri Lankan President Chandrika Kumaratunga has lost
much of shine in so far as her peace proposals to end the bloody ethnic war in
the island remained just a package. Meanwhile, attacks by the LTTE at soft
targets in the capital city have turned Colombo into a 'nightmare' - security
checks, blocks and arrests of minorities have disgruntled the Tamils and eroded
much the goodwill the President once commanded.
Indo-Bhutan
Relation
ž Both
India and Bhutan have been to maintain good and cordial relations without any
mistrust and suspicion. The Treaty of 1949, between India and Bhutan is very
significant in terms of the interests of both the countries. Bhutan has changed
today in all respects, including the economy and international stature since
1949.
ž Apart
from Bhutan being a landlocked country, it is extremely backward. After coming
out oj' isolation, India financed the first two five year plans. At present,
the Indian government is involved in many projects, which comprise hydro- power
plants, cement plants and roads etc and 40% of external revenue that Bhutan
obtain is from the sale of electricity to India. In this sphere, Bhutan has
greatly benefited from India. Most important, of the total aid given by India
to other developing countries in 1996-97, the share of Bhutan was 52% which
amounts to Rs. 181 crore. There is a free trade regime between India and Bhutan
not requiring even customs post on the Indian, side of the border. Being a land
locked country, India provides it with about 13 transit routes. At present,
Bhutan is very keen on sub regional co-operation through the growth quadrangle,
which encompasses Bangladesh, Nepal and the North Eastern parts of India. It
emphasizes on the economic context in its relation with the SAARC countries.
Indo-Maldives
Relation
ž As
an extremely weak and vulnerable country, Maldives’s main objective of survival
as an independent: entity is faced with many difficulties and challenges. The
state has inbuilt structural weakness and deficiency, which create many
limitations on its ability to manage its National Security problems. This
raises the question in regard to alternative security options, which are
available to Maldives. Maldives peculiar geo-physical configuration again a
coral chain of 1190 small islands throng like a garland in the central Indian
Ocean - conjures up the image of a paradise for International tourists. For the
Maldivians, however this is the fundamental cause for their vulnerability and
in security. Much of the threats to the atoll island stem from non-military
sources. At the same time military threats merely creates peripheral security
concerns. I.: has a relative merit over other South Asian Countries as far as
Internal political dimensions of security are concerned.
ž Unlike
Sri Lanka, Maldives has a cohesive and homogeneous social structure with unique
historical antecedents that constitute a source of strength of to its internal
security. However its vulnerability is deep rooted in geography and this
position creates a strong structure of insecurity. Some recent studies point
out that problems of man![ island, developing states are associated with their
small size, remoteness and prone to disaster situations. Thus being a small
country it has its own security implications. Although economic and environmental
vulnerabilities are the main sources of insecurity of Maldives, military
threats are not altogether absent. Like any other countries in South Asia it
does not have any military threat from its neighbors.
ž India's
helpful attitude and utmost sensitivity to the security interests of Maldives
constitute a real source of strength. Both the countries have a similar
approach to South Asian security; they oppose the involvement of external
forces in the region and are committed to develop a cordial relationship based
on mutual respect, understanding and goodwill. Maldives trusts India's
assurance to respect its independents, sovereignty and territorial integrity.
The leadership of Maldives adopts a pragmatic approach towards India by
accepting its pre-eminent position in South Asia. The cordial bilateral
relationship, both the countries have evolved over the years. India is
completely irrelevant in Maldives’s security thinking and concerns. On the
other hand, India is considered as source of contingency security assistance to
the island state at the time of crisis. As the real military threat to the
country came from the mercenaries how tried to stag: two coups in 1980 and 1988
in quick succession at the behest of some of the expatriate Maldivians who were
dissatisfied with the existing political systems. The 1988 coup was a crucial
and powerful military development, which the Maldivian government without a
regular army, could foil only with India's prompt military assistance. There
are no major dispute between India and Maldives. Yet, there are certain
internal political pressures stemming from peculiar political situation where a
President has been in power for a long time.
India
- Afghanistan Relation
ž India
and Afghanistan have a strong relationship based on historical and cultural
links. India has played a significant role in the reconstruction and
rehabilitation of Afghanistan. Democracy and development are the key
instruments to ensure that Afghanistan becomes a source of regional stability.
This has been reflected in the Strategic Partnership Agreement, signed between
Afghanistan and India during Afghan President Hamid Karzai's visit to India in
October 2011, which reinforced the strong, vibrant and multi-faceted relations
between the two countries and at the same time formalized a framework for
cooperation in various areas between the two countries: political &
security cooperation; trade & economic cooperation; capacity development
and education; and social, cultural, civil society & people-to-people relations.
This agreement is a strong signal of abiding commitment to peace, stability and
prosperity in Afghanistan during this critical period of security and
governance transition. The commitment is also reflected in the extensive
developmental assistance programme, which now stands at around US $2 billion,
making India the 5th largest bilateral donor in Afghanistan after
the US, UK, Japan and Germany. This, by any reckoning, is a substantial amount
for a non-traditional donor like India.
Development
Partnership
ž India
has played an active role in the development of Afghanistan based on the
understanding that social and economic development in Afghanistan is crucial to
regional stability. The principal objective of India’s development partnership
is to assist in building indigenous Afghan capacity and institutions and to
ensure that development touches all the regions of Afghanistan and encompasses
all the sectors of development. India’s pledged assistance to Afghanistan
stands at a little under U.S. $2 billion, making it the fifth largest bilateral
donor in Afghanistan. All the projects are undertaken in partnership with the
Afghan government, in consonance with the Afghanistan National Development
Strategy.
PROBLEM
AREAS OF INDIA
ž The country went through the decennial census
operations during 2010-11 culminating in the final count of population on 1st March
2011. On that day India’s population was just above 1210 million. Of these
people 883 million live in rural areas and 377 million live in urban areas. In
other words, as of 2011, 68.8 percent live in rural areas and 31.2 percent live
in urban areas. Incidentally an urban area is defined as one where more than
5000 people live and at least 75% of them depend on non-agricultural activities
for their livelihood. As compared to the census of 2001, the rural population
increased by 90.06 million and urban population by 91 million. Percentage wise
rural population was 71.2 percent in 2001 and the corresponding figure for
urban population percentage was 28.8 percent. Thus it is seen that the
proportion of people living in urban areas and depending on non-agricultural
activities is increasing rather rapidly. This trend was noted even between 1991
and 2001. This trend is mainly because agriculture and related activities were
the sole occupation available for people in rural areas and land being a
limited resource, as the population grew by mid 1990s land could not support
any further addition to the labour force in rural areas. Thus employment
seekers started migrating to urban areas in general and in particular to the
major cities like Bombay, Delhi, Chennai, Bangalore, and Hyderabad etc. The
spurt in urban population has put tremendous pressure on available public
utilities and facilities in the cities. The problems have become so serious
that a few years ago a separate Ministry of Urban Development with a cabinet
rank minister in charge was created by the Government of India. It is the
purpose of this article to highlight some of these problems which seem to
afflict almost every big city in the country.
BORDER DISPUTES
ž Border
areas have their own problems and peculiarities. Such areas are in general less
accessible, making provision of basic facilities more difficult and costly.
Such areas are often more vulnerable to illegal infiltration of population,
which adds pressure on their economic and environmental resources. Moreover,
porous nature of the border enables easy cross border passage for insurgents
and criminals including drug traffickers. Thus, governments of the states with
international border are required to bear heavier burden for not only providing
basic facilities to the people living in such areas but also for the broader
national goal of securing the border.
ž The
Northeast region with 99 per cent of its boundary being international border,
the problems and peculiarities are even more accentuated. The region consists
of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and
Sikkim. The region is best known for its picturesque topography, cultural
heritage, ethnic beauty and rich natural resources. The region has rich bio
diversity, oil and natural gas, coal, limestone, hydro potential and forest
wealth. The region is famous for its exotic flora and fauna. The vast array of aromatic
plants of the region can be used in aromatic industry for the manufacture of
perfumes, incenses, etc. Rich bio-diversity, heritage sites & ethnic beauty
can make it a destination for the tourists. Several big & small rivers
flowing across this region are suitable to construct hydro projects to generate
electricity. Moreover, owing to climatic advantage the region can also be a
major producer and exporter of tea. In spite of resourcefulness the entire
region is regarded as underdeveloped. The remoteness, difficult terrain,
infrastructural bottlenecks and unfriendly neighbors are the serious
impediments of the development of the region. Being a border area, the region
is suffering from specific problems like illegal cross-border movements, law
and order, security, insurgency, smuggling etc.
ž There
are major disputes between India and Pakistan since the partition of British India in 1947. The two
South Asian countries have been involved in four wars, including one undeclared war, as well as many border
skirmishes and military stand-offs. The dispute
for Kashmir has been the cause,
whether direct or indirect of all major conflicts between the two countries
with the exception of the Indo-Pakistani
War of 1971, where conflict originated due to turmoil in erstwhile East Pakistan (now Bangladesh).
ILLITERACY
ž Illiteracy rates in many third world countries are alarmingly
high; nestled in the heart of Asia, India's education program is falling behind
other nations. It is a
country where the population will reach one billion people by the next century,
while only one-third of them will be able to read. Due to various social and
economic problems India's education program continues to be undercut. The
biggest victims of the educational system are those living in rural areas.
Allocation of government funds and the conditions of the destitute rural
schools contribute to the low quality of education by rural children. While
there are many rural areas school systems which are operating in poor
conditions there is one in particular whose schools outperform most other rural
schools and also those located in wealthy areas of India. Consequently, Kerala,
a rural state of India remains a puzzle to many educators. Its illiteracy rate
does not follow the trend of most rural schools.
ž While the children living in rural areas continue to be deprived
of a quality education, part of the reason why is due to their teachers. A
large number of teachers refuse to teach in rural areas and those that do are
usually under qualified. In recent years the number of qualified teachers has
increased because of increased efforts by the government and private groups to
improve the general education and professional training of teachers. There is more of an emphasis on the
training of rural teachers, whose educational backgrounds are generally not as
sound as their urban counterparts. Those that refuse to teach in rural areas
cite distance and lack of interest by students as problems. Many of the
teachers also lack the enthusiasm to teach because of their meager salary -
less than one hundred dollars per month. Another obstacle faced by the schools
is that obtaining more teachers for rural schools is difficult because of state
guidelines that approve of high student-to-teacher ratios.
ž High illiteracy rates in rural parts of India are an area of the
Indian education system that cannot be overlooked. Hampered by the government
and by other factors the quality of education in rural districts has been quite
poor. High dropout rates and low enrollment by the children have contributed to
the large illiteracy rate.
CORRUPTION
ž Corruption in India is a major issue and adversely affects its
economy. A study conducted by
Transparency International in year 2005 found that more than 62% of Indians had
firsthand experience of paying bribes or influence peddling to get jobs
done in public offices successfully. In
its study conducted in year 2008, Transparency International reports about 40%
of Indians had firsthand experience of paying bribes or using a contact to get
a job done in public office. Indian media has widely published allegations of
corrupt Indian citizens stashing trillions of dollars in Swiss banks. Swiss
authorities, however, deny these allegations. The causes of corruption in India
include excessive regulations, complicated taxes and licensing systems,
numerous government departments each with opaque bureaucracy and discretionary
powers, monopoly by government controlled institutions on certain goods and
services delivery, and the lack of transparent laws and processes. There are
significant variations in level of corruption as well as in state government
efforts to reduce corruption across India.
SHORTAGE OF ELECTRIC POWER
ž A very serious problem facing the entire country is the
acute shortage of electric power both in urban and rural areas. This can be
solved only by generating much more electricity than at present. However,
this solution has met with almost a wall-like obstruction. Conventional methods
of generation like coal based thermal power; nuclear power and hydro electric
power are being opposed by people for reasons of environmental pollution,
displacement of people submergence of land and forests etc. There are some gas
based power stations which are less polluting but due to lack of sufficient
quantity of natural gas they are working at less than half their load capacity.
Non-conventional sources of power like solar power and wind power are not that
economically viable or affordable by the consumers. The power generation is
also intermittent requiring large storage capacity for energy. One does not
know what new problems will arise in storing energy on such large scale.
SECURITY
ž Finally a very recent problem in large cities where all
sorts of people have settled down has been the security situation. Well to do
citizens are being forced to organize their own security. This is the reason
for the coming up of gated communities with private security arrangements.
Entry to these communities is strictly controlled and monitored by the security
staff. This is a sad reflection on the capacity of the authorities to provide
security to their citizens.
ž Thus almost all major cities in India are facing serious
problems of slum clearance, housing, inadequate civic amenities for a fast
growing population, absence of efficient public transport system, the growing
insecurity in the cities and so on. Problems will become more acute and may go
beyond repair if immediate steps are not taken to solve at least some of these
problems. Meanwhile the forecast is that half the country’s population will be
living in urban areas in another two to three decades. This trend needs to be
reversed urgently by providing urban facilities in rural areas and locating
several industries and providing employment opportunities in rural areas.
Solutions
-
Gender discrimination must not be
allowed.
-
Highly punishable.
-
There must be transparency in the legal
system.
-
They must come on an understanding and
announce it a free zone for all.
Strategic
perspectives of India; & Trade and other official relations
ž “The
Indian elephant cannot transform itself into a mouse. If South Asia is to get
itself out of the crippling binds of conflicts and cleavages, the six will have
to accept the bigness of the seventh. And the seventh, that is India, will have
to prove to the six that big can indeed be beautiful.”- Bhabani Sen Gupta.
ž Contrary
to regional expectations, expansion of economic relations with India has
benefited the regional economies and India has granted numerous economic
concessions.
ž In
the case of Nepal, for instance, the constraint of the value-added component
imposed on Nepali products for duty-free entry into the Indian market was
reduced from 80 percent to 50 percent, and now even this has been completely
removed. In relation to Bangladesh and Sri Lanka, India agrees in principle to
reduce their adverse trade balances but the modalities have still to be worked
out. Following the Gujral Doctrine India announced at the 1997 Male Summit to
unilaterally withdraw restraints to entry to India of all exports from within
the South Asian region, including Pakistan. Indian companies had invested US$83
million in 140 ventures till 1999 in four SMCs. In addition Indian companies
have extended US$ 3.5 million worth of loans and credits and guarantees worth
$16.5 million to their affiliates in the SAARC region. As a major positive
development for regional cooperation India’s preferential imports as compared
to 1996, became more diversified in 2000.India already has a free trading
arrangement with Bhutan, Nepal and Sri Lanka and negotiations are underway for
a free trade agreement with Bangladesh.
Strategic
perspectives of India; & Trade and other official relations
ž India
has adopted a preferential policy towards investment in SAARC countries. A fast
track channel for processing investment proposals has been created to expedite
projects. The ceiling for processing investments under the fast track channel
had been increased from an initial US $4 million to US $ 15 million and further
to US $30 million in May 1999, in case of member countries of SAARC other than
Nepal and Bhutan.
ž The
trade deficit of Nepal vis-à-vis India has declined sharply and has turned into
surplus in 2002. Since the implementation of Indo-Sri Lanka Free Trade
Agreement (ISFTA) there has been a phenomenal increase in India-Sri Lanka
trade. Since the ISFTA became operational in March 2000, bilateral trade
between the two countries has increased by 195 percent. Under international
conventions India is obliged to provide only one transit route to facilitate
Nepal’s trade with third countries, but India has provided 15 transit points.
Readymade Garments Sector (RMG) is included in India’s sensitive list, but
India has granted Bangladesh the opportunity to export six million pieces of
RMG products to India, provided the entire fabric for the purpose is imported
from India. India is Bhutan's largest trade partner. During the year 2001-2002,
inclusive of electricity, Bhutan's exports to India totaled Rs.4.91 billion and
constituted 94.5 percent of its total exports.
SWOT
Analysis
Strength
ž The primary strength of the Indian economy
lies in its strong banking and credit system, which had been proved by its
constant growth and development even during the its recession
period(2008-2009). The strong and heavy regulation imposed by the RBI has been
making a huge positive impact upon its economy.
ž Although
agriculture occupies only 18.5% of GDP it’s the spine of the Indian economy,
employing nearly 50% of the total population. Indian agricultural system is
efficient enough to make itself self- sufficient in terms of food supply and
even has an export value to it.
ž The
vast number of skilled youth population also contributes as an advantage to the
ever demanding economy.
Weaknesses
ž The
major weakness of Indian economy lies in its excessive dependency on
agriculture. Since agriculture is monsoon dependent trade, production can
differ by huge margins causing instability in the whole economy. A huge part of
the population is still living below the poverty line with inadequate social
development.
ž Literacy
rate is also one of the main weaknesses of the Indian economy. More than a
third of the population remains illiterate, thus easily exploitable.
Opportunities:
ž India
has ample opportunities for its further growth and development. The
agricultural sectors along with small and medium enterprises need to be
encouraged and assisted as they have high growth potential. The government
should focus on developing and implementing various projects for rural
development as majority of the population resides in rural India. There’s also
a scope for large scale infrastructural developments all over the country.
Along with it, tourism sector can also be exploited to gain maximum advantage
over foreign reserves and creating employment opportunities.
Threats:
ž Terrorism
and corruption are the greatest threats that India faces. These two factors are
hampering both the growth of the people and trade relations which is a must for
the overall economic development. The rising inflation, hording and
black-marketing, also pose a threat to economic development. Exports has been
facing downward trend due to the worldwide economic downturn. Thus the Indian
government should redefine its policies and bring affective reforms.
PEST
Analysis of INDIA
Political
ž Frequent
strikes, protests and bandh (complete or partial shutdown of cities), often
instigated for political reason
ž Often
in response to some change introduced or proposed by the ruling party
ž If
it's a union or organization strike/protest, opposition party will support it
in order to strengthen its vote banks
ž Examples
of reasons for strike
ž Increase
in LPG or petrol prices or even onion or potato prices
ž Allowing
foreign supermarket chains to enter
ž Not
raising public transport tariff (autos and taxis)
ž Death
of a political leader
ž Release
of controversial movie
ž Transparency
International's Corruption Perception Index (CPI): 94th out of 176
nations, score of 36 out of 100 from scale from 0 (highly corrupt) to 100 (very
clean)
Economical
ž Indian
consumers are price sensitive
ž Consumer
spending: set to go up from $977 billion to $3.6 trillion by 2020
ž Average
household disposable income: to hit $6977 by 2025
ž Inflation
and slow economy: 40% increase in expenses, less saving every year
ž High
personal income tax and VAT: up to 30% and up to 14.5%
ž Weak
currency
Social
ž Poor
Infrastructure
ž 4,320,000
km of road network, 4 km of road for every 1000 people
ž National
Highways: 40% of traffic, 1.7% of network, 24% 4-lanes
ž 29.8%
living below national poverty line
ž 5th
largest consumer economy by 2025(Mc Kinsey Report)
Technological
ž Increasing
Connectivity
ž 350
million internet user by 2015
ž More
than half will access the net via cell phones
ž Online
Shopping
ž Consumers
use the internet to research and then buy things
ž To
counter, several businesses offer home delivery and cash on delivery options
ž Social
Media
ž Number
of users to hit 66 million by June 2013
ž 74%
of the urban internet users use social media
Strategic Grouping of
SAARC Nations
The Strategic Leadership for Development
(1) Leading to manage growth
In the
last five years, India’s GDP has been growing at a rate of 10 percent annually.
As well, exports from Indian firms have doubled over the last five years. The
forecasts are equally positive, with GDP, private consumption, investment
growth and domestic demand all expected to grow a by slightly less than10
percent per year for the next 5 years. This explosive growth scenario generates
two different views of leadership at the firm level. Some Indian executives
actively take on a short horizon view: “Why do we have to worry about
leadership when any mistakes or weaknesses are easily remedied by the growth in
demand; if we take our critical leadership cadre away from the business of the
day – the opportunity costs are unfathomable”. The longer horizon view is:
“What if the economists are wrong and the growth scenario doesn’t pan out? What
if the number of foreign entrants into the Indian market space creates a level
of competitiveness that begins to counterbalance the benefits of growth?”
CEOs at
India’s biggest firms take the second view. What happens when the economic boom
begins to wind down? Will companies have leadership teams in place that know
how to create growth opportunities in a leaner environment? Will Indian
managers be able to effectively and efficiently compete against competitors to
capture more of the markets in which they do business? In today’s high-growth
environments, creating and capturing growth is a key leadership skill that many
Indian leaders simply have not had the opportunity to develop. Leaders with
this set of skills will be crucial to Indian corporations’ long-term success.
(2) Developing a global mindset is crucial to being a successful
leader
For a
little less than a decade, FDI inflows to India have been on a positive
upswing. The biggest sources of FDI into India include Mauritius, Singapore,
the U.S., the UK and the Netherlands. Indian managers are constantly being
confronted by the challenge of working with partners who are much more globally
experienced. Expatriates working in multinationals and Indian firms have almost
always lived in multiple countries, have been able to speak more than a few
languages, and have education bases that span the globe. These global managers
often hold pivotal positions in their firms, and Indian CEOs realize that they
depend on their advanced global mindset to drive growth not only in India but
also outside India. In fact, in countries as far away as the U.S. and Canada,
it is now becoming impossible to reach the senior management level without
having lived and worked abroad for at least 3 years. The bar for leadership is
going up – leaders must be global. To ensure that Indian companies have Indian
managers with a global mindset, the companies will need to provide top managers
with the training that enables them to think across country boundaries and
cultures, to work in multi-cultural environments, to learn how to coexist with
business realities that are often very different from the ones at home, and to
understand organizational structures such as joint ventures and acquisitions,
both very common in the global business scenario.
(3) Developing and retaining talent
The dark
side of growth and globalization for Indian companies is retaining high-quality
people at reasonable salary levels. Indian managers often blame GDP, foreign
firms willing to pay higher salaries, booming sectors such as education and
real estate, growing costs of MBA programs, and the repatriation of droves of
NRIs (non-resident Indians) making India home once again. Rarely do managers
turn the mirror around and blame themselves – managers are unwilling to admit
that most managers are not very good at creating a work environment or
designing systems that effectively develop and retain people. In the Indian
scenario, attrition rates can range from 15 percent to 50 percent per year,
depending on the sector and the management level. Employees usually state
better compensation or opportunities for career growth as the main reasons for
leaving one job for another. However, more recently, Indian employees are
becoming concerned about developing a reputation for being a ‘serial’ employee
– one that jumps from one employer to the other. Between these two realities is
an opportunity for top managers to lead in a way that develops and retains
talent. This means that managers will have to hone their skills in fostering
employee engagement, become strong communicators with exceptional interpersonal
skills, inspire commitment, and participate in coaching and mentoring employees
for growth.
(4) Developing strong fiscal management
In
India, a successful leader must understand the financial markets. In the last
few years, the number of companies accessing debt has increased, as have the
number of IPOs, the funds raised by these IPOs and the relative success rate of
the IPOs. Understanding the intersection between financial management and
leadership is crucial to success, especially in light of the forecasted
business growth in India. In order to lead, top managers must understand key
questions such as: How does the relationship between debt and equity in my firm
affect my ability to grow? How does cash management influence decision making
and the company’s ability to take advantage of opportunities inside and outside
the firm? How do the numbers influence the value I can create and offer to
customers? Managers at multiple levels and across different functions of the
organization have to have this level of understanding. In high-growth
environments it is not enough to look to the CFO to provide the answers.
Without understanding the fundamental financial implications of every decision,
leaders will simply not be prepared to lead their companies to success in the
new Indian economy.
(5) Institutionalizing creativity
Indian
business is a hotbed of innovation. The number of patents filed each year for
the last 5 years has been increasing by almost 11 percent annually. In 2004,
the number of patents granted was slightly more than 10 percent of the number
filed; today that number has increased to almost 50 percent. Indians are
becoming more astute innovators; however they are being outpaced on every front
by the Chinese. In order to lead successfully, the top manger will have to
understand how to foster innovative ideas and thinking at the individual level,
how to create an organizational culture that supports innovation, and how to
ensure that the right structures are in places that enable innovations to rise
up in the organization. Managers will have to understand and be able to
leverage the innovation value chain in their own companies.
(6) Cross-enterprise strategy formulation and implementation
To make
good on the pressures to lead such as managing growth, keeping the best people
in the job, developing and acting with a more global perspective, or thinking in
a way that is more bottom-line oriented, leaders have to change the way they
think. Most leaders prefer to stay within their own functional areas of
expertise; this is usually also the function or department of the organization
they understand best and the one in which they don’t have to share too much
power in decision making. However, this kind of territorial leadership
behaviour will hurt today’s Indian organization. Tomorrow’s leaders will have
to focus on developing the leadership skills that enable them to look beyond
the walls and silos in the organizational chart and approach issues from a
perspective that spans the entire organization. They will need to have an
advanced understanding of the ramifications of their decisions and actions
across the organization, allowing them to capitalize on the opportunities and
synergies that result from seeing the big picture. They will need to develop
advanced competencies such as being able to (1) quickly and effectively
understand the business, i.e. how it configures it resources to create value
for customers, (2) manage complexity and ambiguity by being good at developing
a set of strategic options that allow the firm to create and capture value, (3)
design micro and macro structures within the organization to enable execution
of complex strategies, and (4) inspire commitment and excitement from the
people who execute the firm’s strategy.
What do the six dimensions of leadership development described
above say to the traditional leadership development approaches that tend to
focus on 360’s, personality dimensions and how they enable and disable
leadership, or even newer approaches that focus on more fashionable dimensions
of personality such as emotional intelligence and its link to leadership
effectiveness? Being an effective leader at the individual and interpersonal
levels is still crucial. However, in today’s business environment, leaders
without the strategic skill sets outlined above are simply out-dated and
unprepared to drive bottom line results. Leaders without a honed ability to
drive organizational excellence are like parents without the ability to
discipline or guide their children. Both enable disastrous consequences.
Possibilities of Success
ž In the rapidly changing global environment,
regional integration in South Asia has assumed a new strategic significance.
Not surprisingly, it has altered the potential political-economic and strategic
gains from SAARC for all the country partners. As the largest economy of the
region, it is imperative and an opportune time for India to inculcate an
environment of trust among SAARC partners, which would encourage greater
commitment to regional integration among all the countries. India stands to
gain substantially from greater economic integration in the region, in terms of
both economic non-economic payoffs. Indeed, India emergence in the world
economic order in the twenty-first century is not possible until and unless she
ensures a stable and secure regional economy and her forthcoming chairmanship
of SAARC in 2007 holds the door of opportunity for her to demonstrate her own
commitment to regional cooperation and integration.
ž The
success factor of Indian economy also lies upon its robust nature in
implementation of its banking and credit system, thus making the economy strong
even during the recession period. Agriculture employing nearly 50% of the
Indian population is one of the primary factors for its success making India
self dependent upon its food supply. Tourism industry is also one of the
promising industries for the Indian economy as it generates huge sum of
revenues for the country. Media and Entertainment Industry are also playing a
huge part in the economy.
REFERENCES
ž Shome,
Parthasarthy. 2001. India and Economic Cooperation in South Asia, New
Delhi: Indian Council for Research on International Economic Relations.
ž “India’s
Trade Integration, Realising the Potential”, 2007, TD/TC/ WP (2007)6/REV1,
http://www.oecd.org/dataoecd/24/60/40369398.pdf
ž Jatinder
Singh. 2012. Presentation on SAARC and Nations. [ONLINE] Available at:
http://www.slideshare.net/singhjeet/presentation-on-saarc.
[Accessed 03 October 13]
ž N/A.
2013. Relations of India and Pakistan with Other SAARC Countries. [ONLINE]
Available at: http://shodhganga.inflibnet.ac.in/bitstream/10603/6534/12/12_chapter%206.pdf.
[Accessed 09 October 13].
ž N/A.
2013. India - Afghanistan Relations [ONLINE]
Available at http://mea.gov.in/Portal/ForeignRelation/afghanistan-aug-2012.pdf.
[Accessed 09 October 13]
