The Asian Age

Can this be India’s response to China’s ‘One Belt One Road’?

During PM Modi’s visit to Iran in May 2016, India signed a historic trilateral deal to develop the strategic port of Chabahar and agreed on a three-nation pact to build a transport-andtrade corridor through Afghanista­n that could help halve the time and c

- Anil Bhat The writer, a retired Army officer, is a defence and security analyst based in New Delhi

The Great Game — also known as Bolshaya Igra — was all about intense rivalry between the British and Russian Empires in Central Asia (from early 19th century to early 20th century), wherein Britain sought to influence or control much of Central Asia to create a buffer to her empire’s “crown jewel”, India. Declassifi­ed British Archives in fact clearly reveal why the Brits partitione­d India to create Pakistan (Unravellin­g the Kashmir Knot, by Aman Hingorani-Sage) to extend the great barrier for Russia and to create a long-term loyal puppy of the British, as also a thorn in India’s side.

The Brits failed to predict the irony that when India needed arms to deal with two hostile neighbours and neither they nor any Western power provided them, it would be Soviet Russia supplying up to 70 per cent arms and equipment to India’s three armed forces at very political prices and forging a long-term friendship.

Whereas Britain’s aim in the Great Game was extension and protection of its power while plundering the resources of its colonies, World War II marked the beginning of the end of the British Empire. Eventually, with the US and USSR emerging as powers representi­ng the Western and eastern blocs, the new great game became one of power-power to trade, power to prevent rivals and smaller nations from trading, sanctions etc.

A further irony was that a decade after USSR’s breakup, despite sanctions, India and Russia signed an agreement in February 1998, to design, develop, manufactur­e and market Brah Mos ( coined as a combo of Brahmaputr­a and Moscva rivers), a versatile supersonic cruise missile system, launchable from land, aircraft, ships and even submarines, which was successful­ly accomplish­ed by 2006.

Producing the world’s fastest cruise missile, about three and a half times faster than the American subsonic Harpoon cruise missile, Brah Mos also became the first Make in India project in defence weaponry.

The collapse of Soviet Union, left five Central Asian Republics (CAR) namely Kazakhstan, Tajikistan, Turkmenist­an, Uzbekistan and Kyrgyzstan as the largest landlocked region, with no access to any ocean and dependent on Russia, China, Iran and other nations to provide it access to warm ports.

India’s desire and efforts to trade with CARs have remained greatly stymied owing to

(a) Pakistan’s intransige­nce denying its land and air routes,

(b) CAR’s rich energy and other mineral resources requiring heavy investment­s and technical know-how to develop them and

(c) above all, CARs sharing common glitches of political instabilit­y, terrorism, mutual discord on border delineatio­n, sharing of water resources and problems of being landlocked.

The Trade Game, a revised extension to India-Central Asia Relations: The Economic Dimension, is the work of Dr Amiya Chandra, a senior level bureaucrat who, in the commerce ministry, has handled the East European region including Central Asia, and was part of the Indian government’s delegation which set up India’s trade route to Central Asia via Iran.

This study endeavours to evaluate

the extent and pattern of over two decades of their economic and trade ties in order to make a future projection of the ongoing relations. It seeks the Indian policymake­rs to be aware of the fact that an all-round economic engagement with Central Asia can be an answer to New Delhi’s multiple objectives:

(a) to maintain India’s positive political influence in the region

(b) to meet India’s energy requiremen­ts

(c) to enhance and bring better efficiency in Indian manufactur­ing through strategic material sourcing

(d) to develop new markets for Indian products and services

(e) for mutual prosperity, promoting and strengthen­ing people to people contact.

To overcome the problem of the CARs being landlocked, India’s short-term objective is trying to reactivate a shorter, cheaper and quicker route to Central Asia. This is the Internatio­nal North-South Transport Corridor (INSTC) that runs through Iran and was agreed upon by India, Iran and Russia in 2002. The INSTC has been expanded to include other members, such as Kazakhstan, Kyrgyzstan, Tajikistan, Ukraine and Belarus. The INSTC envisages a movement of goods to and from Mumbai to the Bandar Abbas port in Iran by sea, from Bandar Abbas to Bandar-eAnzali (an Iranian port on the Caspian Sea) by rail and road, from Bandar-e-Anzali to Astrakhan (a Russian port, across the Caspian Sea) by ship and from Astrakhan to other regions in Russia by rail. According to feasibilit­y studies, this route could reduce the time and cost of container delivery by 30-40 per cent. This route may provide not just Central Asia but also Russia and the South Caucasus with a viable access to the sea through the territory of Iran.

The North-South Corridor will help India bypass Pakistan and yet reach out to Central Asia. There are other north-south routes coming up for Central Asia’s access to the sea; like the Iran-Turkmenist­an-Kazakhstan rail link which will provide an alternate rail connectivi­ty from western Kazakhstan and Turkmenist­an to Bandar Abbas through Gurgan in Iran.

A medium-term objective India is working on is connectivi­ty through Iran’s Chabahar port, which will benefit all, particular­ly Uzbekistan, who need warmwater ports, as they would get access to the Indian Ocean. A trilateral transit agreement with Iran and Afghanista­n is in the pipeline for allowing transit rights of Indian goods through Iran to Afghanista­n. During Prime Minister Narendra Modi’s visit to Iran in May 2016, India signed a historic trilateral deal to develop the strategic port of Chabahar and agreed on a threenatio­n pact to build a transporta­nd-trade corridor through Afghanista­n that could help halve the time and cost of doing business with Central Asia and Europe.

Can this become India’s alternativ­e to China’s “One Belt One Road”?

The long-term challenge is the creation of stable and competitiv­e goods and energy supply networks for not just trade but also for the supply of oil from the Caspian Sea, gas from Turkmenist­an and hydroelect­ricity from Tajikistan to India.

Indian public sector companies are in active discussion­s with Kazakhstan, Turkmenist­an and Uzbekistan in the oil and natural gas sector. The government­s of the region agreeing to the constructi­on of the Turkmenist­anAfghanis­tan-Pakistan-Ind ia (TAPI) gas pipeline project is a positive indication of the opportunit­ies ahead, given the growing political will to enter into such cooperatio­n between Central Asia and South Asia. The TAPI gas pipeline project is crucial particular­ly for India’s energy security which, once completed, would provide access to the gas and oil resources of Central Asia. This will not only diversify our energy supply but also benefit Afghanista­n and Pakistan and may bring in peace and prosperity to the region. Will Pakistan allow it to happen?

Exploring uranium cooperatio­n with the countries of the region, India is also considerin­g alternate dream projects, like oil pipelines from Kazakhstan and Russia to India.

India is engaged with Central Asia through the Shanghai Cooperatio­n Organizati­on (SCO), of which, after contributi­ng as an observer since 2005, became a full member in June 2017. However, India and CARs need to beware, as SCO’s statutes make it impossible to curb Chinese expansion in the region.

India is also participat­ing actively in the still evolving Kazakhstan-promoted Conference on Interactio­n and Confidence Building Measures in Asia (CICA), being pushed by Turkey as well. On the economic side, India has proposed a Comprehens­ive Economic Cooperatio­n Agreement (CECA) with the Russia-BelarusKaz­akhstan Customs Union to further integrate into the region’s multilater­al processes like the Eurasian Economic Community (EEC) and the Eurasian Customs Union (EACU).

Replete with maps and annexures, this book is a must for a wide range of profession­als, scholars and analysts.

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 ?? By Amiya Chandra Pentagon Press, `995 ?? THE TRADE GAME: ENGAGING WITH CENTRAL ASIA
By Amiya Chandra Pentagon Press, `995 THE TRADE GAME: ENGAGING WITH CENTRAL ASIA

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