Emerging as a beacon in the neighbourhood
GROWTH STORY India’s policies, that spurred a 7% GDP rise, are transforming ties with neighbouring countries. We need to scale up our development model.
The juggernaut of India’s charm offensive in the neighbourhood is continuing despite many odds. At a time when every major power is enunciating a policy that puts their “country first”, India advocated “neighbourhood first”, and has been steering regional dynamics towards more stable, prosperous and democratic outcomes. This is quite a contrast to China’s progression recently of “setting up a different kitchen”.
With a huge geographical land mass, ensconced in the vast oceanic littorals, and the demographic dividend of ayoun- ger population, India is powering ahead with its growth story with over 7% GDP increase, while China is entering a “new normal” phase of lower growth rates.
Many a credit rating agency has given a thumbs-up as India jumped in the ease of doing business rankings. Moody’s recently downgraded China. Direct investments are increasing year-on-year compared to those in the once-favourable destination of China. Public debt is under 70% of GDP compared to a whopping 272% for China. However, India has a lot of catching up to do with China in other aspects.
India’s neighb ourhood-first policy is delivering goods and services in a sustainable manner, with infrastructure projects funded with low-interest loans such as in the BBIN (Bangladesh, Bhutan, India, Nepal) and BI MST EC( Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) projects. This is in stark contrast tothe debtridden projects of Hambantota and Gwadar ports financed by China. India’s Comprehensive Economic Partnership agreements with Southeast Asia, Japan and South Korea are transforming ties with trade deficits, labour and local concerns in mind. Territorial dispute resolutions with Sri Lanka and Bangladesh, including observing the UN C LOS provisions and han ding over islands to Bangladesh, have raised the Indian stock. It is in sharp contrast to China’s position on The Hague Tribunal ruling last July on South China Sea or the Chinese attempt to grab territory in Doklam from tiny Bhutan.
The gradual unfolding of “free and open” Indo-Pacific with rule of law, peaceful resolution of disputes, connectivity with the Japanese idea of Partnership for Quality Infrastructure, counterproliferation of weapons of mass destruction, counter-terrorism and the like have been positing alternatives to the neighbourhood in a powerful coalition of the willing. This is bound to lead to tectonic shifts in the region in the near future.
The main challenges are going to come from China, which has set about widening its footprint globally and regionally. Its assertion in the East China Sea with transgressions on Japanese-controlled Senka ku islands is increasing and its hold strengthening over the crucial Miyako Straits with the Air Defence Identification Zone and military exercises.
Beijing’s forayintoSouth China Sea is resulting in differences in the once-united A SEAN. China’ s nuclear and conventional arms transfers to Pakistan and its double standards on terrorism are de sta bi li sing South Asia. Its One Belt One Road is intruding into Indian-claimed Kashmir.
The just-concluded 19th Communist Party Congress at Beijing suggested China wants to be at the “Centre Stage” by 2050 with an elaborate road map aimed both at economic diversification — increasing domestic consumption, the spreading of the services sector and turn- ing entities military in a reversal of its policy of“keeping a lowprofile ”, China opment countries state-owned showcase—operations“model”the to as emulate. Party well its enterprises as to authoritarian Congress build another integrated up. developing into Moreover, suggested global dev el-joint
combining of democratic values with mo-dern is a ti one ty ian area and for Chinese scholars have derided India’ s India and development China of ideological took to in showcase of pride future. caste model. in conflict and This China’ s its communal“MumbaiThis is between also authori tar-will the be India Con-soc i-time an sens us” model of democratic, sustainabledevelopment en ting the While global on India level, the democratic with shied confining social away its-concern. revolutions from comm-at elf to South Asian neighb our-hood, Prime Minister Na ren-d ra subject Japan Mo di in when late touched 2014 he about spoke upon the the in spread For India to be the beacon in the neigh-of democracy. bourhood, experiences drawn from the Uri surgicalit needs to sharp en upon the strike sand rescuing Bhutan in the Do kl am case.on terrorism across the border While appropriately” as national securitythese suggest India is“punching adviser Aji tD oval once remarked, to bea“leading power” in a comprehensive sense the country needs to further scale up its development model by bringing in“nonreciprocity” and other principles. (The author is professor in Chinese Studies at Jawaharlal Nehru University, New Delhi)