UNITY OF ACTION NEEDED

IN GOVERNMENT

Prime Minister Narendra Modi has been clear in his response from the start of the confrontation triggered by the movement of PLA troops on the Line of Actual Control in May. Among the tested and trusted soldiers of the Indian Army, he has announced a policy of zero tolerance towards expansionist moves by countries that are directed against India. A few days ago, External Affairs Minister S. Jaishankar followed up on the message given by the Prime Minister in asserting that it cannot be “business as usual” if the Sino-indian border becomes active through attempted intrusion of the PLA in numerous sectors. It makes no sense for consumers in India to contribute nearly $60 billion each year as trade surplus to a country that refuses to respect our borders and which continues to make efforts to change the status quo through use of military force. There is in addition to the “all weather” friendship between the Peoples Republic of China and Pakistan, an alliance that in essence is between PLA and GHQ Rawalpindi. In Pakistan, it is the military that is in control of foreign and much of domestic policy, and the army in Pakistan has switched seamlessly from the US to China in its choice of patron. The exchequer in Beijing is paying a substantial cost for the close collaboration between the two sides, and it is certain that a time will come when the costs of such a policy will become apparent. Apart from the risks involved in serving as a force multiplier to a country run by a military that has a stable of terror groups at its command, and which are deployed most prominently in Iran, Afghanistan and India, there is the cost to the PRC of worsening relations with India. For too long, there has been a decoupling of the commercial relationship between China and India and the harmful effects to India of the cosy partnership between the Central Military Commission in Beijing and GHQ Rawalpindi. Such a policy has only served to embolden both Beijing and Islamabad in their joint nourishing of several of the entities that have openly proclaimed not just their intention but their activity focused on harming the world’s most populous democracy. It is for the first time that such a policy has come to be examined more closely, and a welcome sign of such a move is the series of statements by the External Affairs Minister that toxic activities impinging on security cannot any more co-exist with a trade surplus that is second only to that which China has with the US. It will not be easy to press forward with a decoupling from the PRC of the many linkages that have formed over the years in trade and commerce. An entire cohort of vested interests have sprung up in India that are fattening on the profits they are making out of importing into India goods from the PRC that have the effect of killing huge swathes of industry in India. Such individuals need to understand that security is beyond profit and price, and that it is their duty to place the country’s security interests above considerations based solely on bank accounts. Thus far, several of those engaged in funnelling goods from China into India at the expense of local industry have dragged their feet on changing course, reluctant to forgo the profits made as a consequence of the hollowing out of Indian industry (especially the small and medium sector) caused by the tidal wave of imports from the PRC, sometimes routed through Hong Kong. PM Modi has spoken often about One India, and in such a context, it is reasonable to expect One Government. The entire Government of India comprising all ministries and agencies need to act in the manner made clear by the PM and further elucidated by the External Affairs Minister. This means that security needs to be given pride of place, over the demands of commerce. If it is true that Huawei has been included in 5G consultations that involve the sharing of data of the situation in India, it needs to be taken as a given that such information could be conveyed to the PLA, whether wittingly and willingly or not. Given that the PLA is acting as the force multiplier for the Pakistan military in its operations against India, data involving communications networks is an item of extreme concern. Security agencies need to ensure that entities that carry the risk of empowering our adversaries need to be kept far removed from councils where sensitive data is involved. In such a context, reports speak of blocking of recommendations by the Commerce Ministry to impose anti-dumping duties on some imports from China. The Commerce Ministry would have made an exhaustive study of such matters before making such a recommendation, and the Finance Ministry needs to respect that rather than seek to overturn such recommendations. Security as well as the promotion of domestic industry is central to the policies enunciated during Modi 2.0, and unless every ministry does its part, such plans will not achieve the results expected by the people of India from the government. One country needs one government, speaking and acting in a unified manner rather than in contradictory tones. In a world where major economies have judged the consequences of being overly dependent on China and are looking to alternative locations, there must be a clear signal from Government of India. This means that every ministry and agency must act in unison rather than in a contradictory manner. Such a divergence within the government sends a misleading signal of intent and determination to the international investor community, and must be prevented.