India and Saarc

INDIA AND ITS RELATION
WITH SAARC COUNTRIES

PROJECT REPORT
India have been making efforts for the integration of Asian Countries since long. It was
during the Indian struggle for freedom that closer cooperation with fellow Asians became
one of the basic objectives of India.
INDIA AND ITS RELATION WITH SAARC COUNTRIES

INDIA AND ITS RELATION

CONTENT
WITH SAARC COUNTRIES 
1. INTRODUCTION
2. SAARC: GENESIS
INTRODUCTION AND
DEVELOPMENT
3. FORMATION OF
Narendra Modi, India’s newly elected prime minister, broke with SAARC
tradition and took the oath of office in ceremonial style in the 4. IMPORTANT FOR
presence of South Asia’s leaders who were all invited to witness INDIA TO
his inauguration at the presidential palace in New Delhi. MAINTAIN
According to Vikram Sood, former head of the Research and REALTION WITH
SAARC
Analysis Wing (RAW), which is India’s external intelligence COUNTRIES
agency, Modi’s invitation to leaders of all seven member countries 5. INDIA AND
of the South Asian Association for Regional Cooperation AFGHANISTAN
(SAARC) was an “astute” move that “augurs well for the region,” 6. INDIA AND
adding that “an improvement of relations all over the region is BANGLADESH
possible if these moves are followed by other steps, bilaterally and 7. INDIA AND
BHUTAN
multilaterally.” Modi’s early focus on India’s immediate
8. INDIA AND
neighborhood belied many observers who had expected him to MALDIVES
reach out to countries in East Asia. 9. INDIA AND
NEPAL
10.INDIA AND
Why engagement in the neighborhood is important is revealed by PAKISTAN
the manifold advantages that regional cooperation could bring to 11.INDIA AND SRI
the countries of South Asia. First, there is unrealized potential for -LANKA
economic cooperation. Regional trade in South Asia constitutes a 12.CONCLUSION
13. BIBLIOGRAPHY
mere 2 percent of regional GDP. East Asia’s trade by contrast
stands at 20 percent. According to the World Bank, South Asia is
one of the world’s “least integrated regions.” Second, economic
revitalization would help address stubborn problems of stagnating
growth, poverty, and youth unemployment in a region where the
young constitute a disproportionately large share of the
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could begin to reverse the zero-sum mind-set that has mired the India-Pakistan
relationship in a cycle of hostility to the detriment of both countries and open up
possibilities both for the establishment of a 21st century version of the Old Silk Road
linking South with Central Asia and for a more secure and prosperous Afghanistan.
Fourth, a robust Indian outreach to its neighbors would offer South Asia’s smaller
countries a trade link to the countries of Southeast Asia and provide an alternative to
assiduous Chinese efforts at economic and military courtship.
Can a region defined by a post-colonial legacy of decades of hostility and suspicion

overcome its burdensome inheritance and chart the course toward a vision of shared
prosperity This paper will attempt to address this question in three sections. The first
section will trace the history of SAARC from its beginnings in 1985 and examine India’s
evolving approach to the organization. The second section will focus on trade
cooperation.
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SAARC
:
GENESI
S AND
DEVEL
OPMEN
T
 CHINA’S
SOUTH
ASIAN
PRESEN
CE
 THE
CHINA-
PAKISTA
3 N
NEXUS

SAARC: GENESIS AND DEVELOPMENT

The genesis and development of SAARC mirrors the evolution of the self-image of
India’s leaders from diffidence to increasing self-assurance regarding the country’s role
and aspirations in the South Asian region. Two countries—Pakistan and China—have
played a central role in this evolutionary unfoldment.
Pakistan, an intra-regional power, is a country whose history is closely intertwined with

that of India’s. iii Pakistan’s founding myth based on religiously derived nationalism
sought to separate its nationhood from a shared centuries-long historical and cultural
legacy with India spanning Mogul and British rule, fueling several Indo-Pakistani wars in
the period since independence in 1947. What began as a “narcissism of small differences”
has, over time, created an inertial force in Pakistan that complicates the political
resolution of issues like Kashmir; but even more consequentially, has allowed the
Pakistani military to arrogate to itself the role of “guardian and keeper” of the state’s
national honor. As the only stable institution in a country where the civilian leadership is
weak and corrupt and needs the support of the military to stay in power, the Pakistani
Army, through its intelligence wing—the Inter-Services Intelligence Agency (ISI) has,
since the 1980s, aided and abetted groups of militant Islamic fighters to wage “jihad”
against India, resulting in a decades-long insurgency in Kashmir on Pakistan’s eastern
(India’s western) front. On the western front, Pakistan’s nurturing of the Afghan Taliban
has spawned a homegrown mujahedin group, the Pakistani Taliban (Tehrik-i-Taliban
Pakistan—TTP), which is battling the Pakistani state. Terrorism, like revolution, now
“devours its own children.” In his testimony to the Abbottabad Commission charged with
investigating Pakistan’s intelligence failures after the 2011 U.S capture of Osama bin
Laden on Pakistani soil, former ISI chief Ahmed Shuja Pasha is reported to have stated:
“We are a failing state, even if we are not yet a failed state.” Pakistani leaders have yet to
decide whether continuing an enmity of choice with India is worth more than fighting its
own existential battles. As an economic partner, India could be enlisted as an ally in the
strengthening of the Pakistani state.
CHINA’S SOUTH ASIAN PRESENCE

China, an extra-regional power whose leaders tend to see India as an obstacle to their
Asian, even global, aspirations, has sought to keep India hemmed in the South Asian
region. Relying on an age-old “divide-and-rule” policy, by befriending Pakistan and
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cultivating close military and economic ties with India’s other neighbors, Beijing has
attempted to force India to keep its attention and resources focused unproductively in the
region—a strategy that worked well until the 1990s when the confluence of several
developments undercut some of its efficacy. During the early stages of the Cold War
when the United States viewed the Soviet Union and China as a unified Communist
threat and India as suspect, due to its posture of non-alignment between the two warring
post-World War II ideological blocs, Pakistan emerged as a favored ally and was fully
integrated into the Western alliance system as a member of the South East Asia Treaty
Organization (SEATO, 1954); the UK sponsored Baghdad Pact (1955); and the Central
Treaty Organization (CENTO, 1959), which replaced the Baghdad Pact and included the
U.S. and the U.K as associate members.
THE CHINA-PAKISTAN NEXUS

The China-Pakistan relationship goes back to the establishment of diplomatic ties in
1951. Since then, Beijing and Islamabad have maintained a close friendship that has
weathered the test of time. The faltering of the U.S.-Pakistan relationship in the 1960s
over Washington’s unwillingness to offer unstinting support to Pakistan in the 1965 war
with India, and China’s international isolation during the same period, served to cement
the mutually beneficial Sino-Pakistani relationship. So trusted a Chinese ally was
Pakistan that when, in the late 1960s, the Nixon administration decided to seek a
rapprochement with China, Pakistan served as a key intermediary. Pakistan’s good
offices paved the way for then National Security Adviser Henry Kissinger’s two trips to
Beijing in 1971 followed by President Nixon’s path breaking visit to Mainland China in
February 1972. China has supplied Pakistan with arms and clandestinely provided
“sensitive nuclear technology and equipment.” The China-Pakistan arms relationship
began in the 1960s and registered a huge upswing in 1990 when the United States
imposed sanctions on Pakistan. According to a March 17, 2014 SIPRI Press Release, 54
percent of Pakistan’s arms imports from 2009-13 were sourced from China. The only
wrinkle in the bilateral relationship comes from Beijing’s concern over rising religious
extremism in Pakistan and the support by terrorist jihadist groups of Chinese Uighur
separatism in Xinjiang. China’s desire for better ties with India constitutes another, albeit
minor, brake on the otherwise robust China-Pakistan friendship that Pakistani officials
hyperbolically characterize as “higher than the mountains” and “deeper than the oceans.”
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FORMA
TION
OF
SAARC
 OBJECT
IVES
6
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THE FORMATION OF SAARC

India dominates the South Asian landmass and, due to its peninsular geographical
configuration, has a long coastline that offers access to the Arabian Sea, the Bay of
Bengal, and the eponymous Indian Ocean. Of the member countries of SAARC, India
shares land borders with Nepal, Bhutan, Bangladesh, and Pakistan, and maritime borders
with Sri Lanka and the Maldives. The only South Asian country with which India does
not have a contiguous border is land-locked Afghanistan. During the Cold War, India’s
estrangement from the United States, rivalry with Pakistan, and enmity with China
combined to generate in Indian officials a sense of diffidence about the country’s de facto
regional role, which was not in alignment with the New Delhi’s regional aspirations. This
circumstance largely explains why India was a reluctant participant when the creation of
a South Asian regional organization was proposed by Bangladeshi Prime Minister in
1980 and supported by all South Asian countries, except India and Pakistan. India feared
joint pressure from regional states on contested security issues that New Delhi preferred
to negotiate bilaterally. Pakistan was apprehensive about the creation of a regional
grouping that would allow New Delhi both to pursue an anti-Pakistan strategy in concert
with smaller neighbors and to enhance its economic dominance. Moreover, Pakistani
leaders who had tried to use the Islamic connection to forge closer ties with the belt of
Muslim countries to its west, particularly in the Middle East, feared a dilution of those
links with greater engagement with South Asian countries. In the end, however, neither
country could afford to spurn the Bangladeshi initiative. In an Indo-centric South Asia,
New Delhi realized that rank obstructionism would undermine long-term Indian
objectives. And, for strategic reasons, Pakistan could ill-afford isolation from a regional
grouping of which India was a member.
To allay the concerns of its largest members, the resulting South Asian regional
arrangement was based on a “soft” variant of multilateralism—an intergovernmental
regional organization founded on norms or consensus—rather than a “hard” or rule-based
multilateralism. In deference to Indian concerns, the organization explicitly excluded
consideration of security issues in a multilateral format and opted instead to focus on
matters of functional cooperation. Pakistan’s involvement in the grouping has been both
tentative and selective. Islamabad sought to use the organization to forge closer ties with
the smaller countries of South Asia and enlist their grievances against India to add heft to
Pakistan’s anti-India stance.
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The SAARC Charter was signed in December 1985 by the heads of state of seven South
Asian countries—Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri
Lanka. Afghanistan became a member in 2007. On paper, SAARC areas of cooperation
run the gamut from science and technology, economic and trade to social, cultural, and
educational issues, and people-to-people interchanges. But actual results have been
meager at best. In the first decade of its existence, SAARC’s primary value was in
providing a forum for dialogue. The organization sputtered to life in the last decade of the
20th century and has progressed, albeit glacially, at the turn of the 21st century, aided by
developments at the domestic, regional, and global levels.
OBJECTIVE OF SAARC
The objectives of the Association as outlined in the SAARC Charter are: to
promote the welfare of the peoples of South Asia and to improve their quality of
life; to accelerate economic growth, social progress and cultural development in the
region and to provide all individuals the opportunity to live in dignity and to realize
their full potentials; to promote and strengthen collective self-reliance among the
countries of South Asia; to contribute to mutual trust, understanding and
appreciation of one another's problems; to promote active collaboration and mutual
assistance in the economic, social, cultural, technical and scientific fields; to
strengthen cooperation with other developing countries; to strengthen cooperation
among themselves in international forums on matters of common interests; and to
cooperate with international and regional organizations with similar aims and
purposes.
Broadly speaking, the objectives are:

1. Strengthening economic cooperation so as to improve the quality of life of the people
of South Asia;
2. Increasing the pace of economic growth;
3. Giving mutual assistance and cooperation in areas like agriculture, scientific

development, etc.; and
4. Promoting social progress and cultural development.
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It was made clear from the very beginning that no member state would interfere in the
internal affairs of another. Only those matters would be discussed which concerned all
the member states.
After the formation of the SAARC, a number of summits were held. Each summit
undertook several specific programs. The South Asian Preferable Trade Agreement
(SAPTA) was signed to inaugurate a new era of economic cooperation in South Asia.
India hosted the first festival of the SAARC countries in 1992. Artists, musicians and
dancers from all the SAARC countries participated in the festival.
The first SAARC Trade Fair was held in New Delhi in 1996. Bangladesh, Pakistan,
Nepal, Bhutan, Sri Lanka and India participated in the fair.
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IMPORTANT FOR INDIA TO

MAINTAIN GOOD REALTION
WITH SAARC COUNTRIES
 ECONOMICAL IMPORTANCE
 POLITICAL IMPORTANCE
 SAARC AND INDIA’S SELF-EVOLVING
IMAGE
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WHY IT IS IMPORTANT FOR INDIA TO MAINTAIN GOOD

RELATION WITH SAARC NATIONS?
In 2014, after a gap of three years, the 18th SAARC summit held in Kathmandu, the
capital of Nepal. Two day-summit held on 26-27 November 2014 and leaders of all eight
member countries of the South Asian Association for Regional Corporation (SAARC)
took part to improve ties, regional integration and chart a way for future cooperation.
The press announcement from Prime Minister’s office stated that India has always
emphasized the importance of greater regional integration at all levels of socio-economic
development of the South Asian region.
Notable, the SAARC summit, which has generally been convened at an interval of
around 18 months, had been conducted after an interval of three years as the 17th SAARC
summit was held in 2011 in Addu City. Modi's government blames the previous
government for this gap and for allowing China to aid Sri Lanka in building infrastructure
and increase its dominance in the SAARC region. There were reports that, China which
has an observer status in SAARC, is keen to become a full fledge-member. During the
last summit, leaders of India, Nepal and Bangladesh had agreed to construct railway lines
connecting the three countries and to convene Expert Group Meeting on the Motor
Vehicle Agreement. It was also agreed that container train services will be started
between the three countries.
The Indian government during the summit had stressed on enhancing connectivity
between India and SAARC countries most of which shares border with India.
India have some economical and political benefits from SAARC:
ECONOMIC IMPORTANCE:
1. In terms of rail and road connectivity, SAARC region is considered as one of
the least networked regions and it has led to high costs and low volumes of trade.
2. The Indian government also understands that the “Make in India” campaign
also needs newer markets and expansion of existing markets. Hence, the Prime
Minister is pushing for improving trade ties among the SAARC member nations.
3. Though India’s exports to other SAARC member countries is just 6.4% of the
country’s total exports, it is growing at an average 33.76% per annum which is
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much higher compared to India’s exports to EU countries which is growing at an

around 1.2% per annum.
4. Currently, India runs a huge $15 billion trade surplus with other SAARC
countries, with exports worth $17.5 billion and imports of just $2.5 billion.
Indian businesses can source more from SAARC countries and build better value
chains. For this, India has to invest more in the region by taking advantage of the
arbitrage in wage and electricity rates. From Maldives in the south of India to
Bhutan in the north, several SAARC countries are keen to seek Indian
investment and expertise. It is estimated that 55% of intra-regional trade
potential in South Asia remains untapped.
So, SAARC remains an untapped economic resource for India which is expected to
improve in coming days.
POLITICAL IMPORTANCE:
1. The total value of India’s trade with all the other South Asian nations, put
together, is less than a third of its total trade with China. We need SAARC to
reduce our trade dependence on China and expand our trade with other South
Asian countries.
2. SAARC can also be utilized to reduce the Chinese investments in South Asia
and to overcome the Chinese ‘String of Pearls’ strategy to encircle India.
South Asia is a region with striking contrasts.
On the one hand, it shows economic promise, with growth averaging 6 percent over the
past 20 years, according to a World Bank report. South Asia is also a rich reserve of
water resources for hydroelectricity, and it offers a huge pool of young human resource
talent between the ages of 15 to 24 years.
And yet South Asia is grossly underutilized, economically disjointed, and accounts for
only 3 percent of global output and 2 percent of global exports.
SAARC AND INDIA’S EVOLVING SELF-IMAGE

At its formation, SAARC had been hamstrung by a paucity of resources, a minimalist
approach toward the organization by its largest and most powerful member—India, and
the dilatory tactics of Pakistan. But the mindset of Indian officials shifted in the early
1990s as the end of the Cold War signaled a changing geopolitical landscape. The
attenuation of the US-Soviet ideological conflict in the late 1980s and Soviet withdrawal
from Afghanistan removed a key irritant in the Indo-US relationship and set the two
countries on the trajectory of gradually improving ties that culminated in the cementing
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of a strategic partnership in 2004. Until the September 2001 Al Qaeda-sponsored terrorist

attacks in New York and Washington, D.C. led to a U.S.- led invasion of Afghanistan and
Pakistan re-emerged as a front-line state, this time in the battle against terrorism
Pakistan’s role in U.S. strategy is unlikely to eclipse the enduring importance to the
United States of a strong relationship with India, both as a hedge against China’s global
rise and as an important economic partner. Cold War-era U.S.-Indian strategic
estrangement is unlikely to be repeated in the 21st century. India’s rising economic
profile also allowed Indian leaders to consider magnanimity towards its neighbors as a
feasible option.
In 1989-91, Inder Kumar Gujral, then minister of external affairs in the V.P. Singh
government, articulated a new approach towards countries in the neighborhood. Gujral
argued that as the dominant country in South Asia, India needed to be sensitive to the
concerns of its smaller neighbors and pursue accommodation and conciliation in an effort
to promote cordial relations with countries in the region. Concrete action soon ensued
with the withdrawal of the Indian peacekeeping force in Sri Lanka, which had been a
source of friction in the bilateral relationship. In a nod to critics, Gujral also forcefully
communicated to then Pakistani Foreign Minister Shaibzada Yakub Khan that his policy
of non-reciprocal concessions to neighbors did not extend to Pakistani support of
militants in the Kashmir region and he and Prime Minister Singh approved military
action to check attempts by the Pakistani Army to alter “crucial points on the line of
control [in Kashmir] in their favour [sic].”
The principles of the “Gujral Doctrine” were more forcefully incorporated into Indian
foreign policy during Gujral’s Prime Minister ship in 1996-98. He restarted a stalled 1994
dialogue with Pakistan over unresolved issues, signed a landmark water-sharing treaty
with Bangladesh and inaugurated talks on the removal of tariff and non-tariff barriers to
trade. With Nepal, he offered to “revise or scrap” the 1950 India Nepal Treaty, which was
seen in Kathmandu as a symbol of unequal relations.
If Gujral’s initiatives did not bear more fruit in 1989-91, the problem rested not with the
vision but with the dire straits of the Indian economy. Near bankruptcy in 1991 forced the
Indian government of P.V. Narasimha Rao to undertake liberal economic reforms under
the watchful eye of the International Monetary Fund (IMF). While the immediate results
of these reforms were positive, inertia soon set in and by the time Gujral was at the helm
again in 1996-98, economic growth had slowed considerably.
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INDIA
AND
AFGHA
NISTA
N
 POLITIC
AL
 COMME
RCIAL
 AFGHAN
CULTUR
E
RALTIO
NS
 INDIAN
DIASPO
RA IN
AFGHAN 14
ISTAN

INDIA AND ITS RELATION WITH AFGHANISTAN
POLITICAL
India and Afghanistan have a strong relationship based on historical and cultural links.
The relationship is not limited to the governments in New Delhi and Kabul, but has its
foundations in the historical contacts and exchanges between the people. In recent past,
India-Afghanistan relations have been further strengthened by the Strategic Partnership
Agreement, which was signed between the two countries in October 2011.
The Strategic Partnership Agreement (SPA) between the two sides, inter alia, provides
for assistance to help rebuild Afghanistan's infrastructure and institutions, education and
technical assistance to rebuild indigenous Afghan capacity in different areas, encouraging
investment in Afghanistan's natural resources, providing duty free access to the Indian
market for Afghanistan's exports support for an Afghan-led, Afghan-owned, broad-based
and inclusive process of peace and reconciliation, and advocating the need for a sustained
and long-term commitment to Afghanistan by the international community.
India-Afghanistan relationship is characterized by regular high-level exchanges. Our

leaders have met each other during bilateral visits as well as on the sidelines of
international events.
On 4 June 2016, Prime Minister visited Herat in western Afghanistan and he along with
President Ghani jointly inaugurated the Afghan-India Friendship Dam, earlier known as
Salma Dam. The completion of the dam project represents culmination of years of hard
work by about 1,500 Indian and Afghan engineers and other professionals in very
difficult conditions. It also highlights India's continued commitment to Afghanistan's
reconstruction and development.
Later on 22 August 2016, Prime Minister jointly inaugurated through video conferencing
the restored Stor Palace in Kabul with President Ghani. During his speech Prime Minster
said the 1.25 billion Indian people will “always” stand with Afghanistan in ensuring
peace and prosperity.
On 25th December 2016, Prime Minister along with a high level delegation paid a visit to
Afghanistan. During his visit he called on President Ashraf Ghani; he met Chief
Executive, Dr Abdullah and Former President Hamid Karzai. During his visit he
inaugurated the newly built Afghan Parliament; announced 500 scholarships for the
children of the martyrs of Afghan Security Forces and gifted four Mi-25 Attack
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helicopters to the Afghan Air Force. During the visit, it was also decided to conduct the
second Strategic Partnership Council meeting headed by the Foreign Ministers of the
both countries in the first quarter of 2017 along with four joint working group meetings.
President of Afghanistan H.E Ashraf Ghani visited India on 24 October 2017 on a one
day working visit and met Rashrapatiji, PM and received EAM. Both sides reiterated
their commitment to their strategic partnership.
President Ghani in 2018 paid a working visit to India on 19 September and met PM. The
two leaders reviewed and positively assessed the progress of the multi-faceted India-
Afghanistan strategic partnership. They expressed satisfaction at the increase in bilateral
trade that has crossed the US $ 1 billion mark. The two leaders also appreciated the
successful conclusion of the India-Afghanistan trade and investment show in Mumbai
from September 12-15, 2018 and expressed determination to strengthen connectivity,
including through Chabahar port and Air-Freight Corridor. It was agreed to deepen the
New Development Partnership in the areas of high impact projects in this field of
infrastructure, human resources development and other capacity building projects in
Afghanistan.
H.E. the Chief Executive of Afghanistan, Dr. Abdullah Abdullah, Chief Executive of the
Islamic Republic of Afghanistan (CEO) visited India from 28-29 September 2017. He
called on Rashtrapatiji, met PM and EAM. An MoU on technical cooperation on police
training and development was signed and formally exchanged at the meeting between
Chief Executive and Prime Minister. This created an enabling framework for training and
capacity building of Afghan National Police personnel in various fields in addition to
India's ongoing assistance for the Afghan National Defence and Security Forces.
Afghanistan was also invited to participate in the International Solar Alliance Summit
meeting being held in India in December 2017 and also to the World Food Processing
Show being held in November 2017 in India that would enable the Afghan businessmen
to engage with the international markets.
The second Strategic Partnership Council meeting was held in New Delhi on September
11, 2017. Foreign Minister H.E Salahuddin Rabbani led the Afghan delegation
comprising of senior members of the Afghan Government. Making use of the fresh US$
1Billion announced by Prime Minister, India and Afghanistan launched a New
Development Partnership. Government of India worked with the Government of
Afghanistan to identify priorities and projects where Afghanistan needed the Indian
assistance to be directed. India agreed to implement some important new projects such as
the Shahtoot Dam and drinking water project for Kabul that would also facilitate
irrigation, water supply for Charikar City, road connectivity to Band-e-Amir in Bamyan
Province that would promote tourism, low cost housing for returning Afghan refugees in
Nangarhar Province to promote their resettlement, a gypsum board manufacturing plant
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in Kabul to promote value added local industry and for import substitution, and a
polyclinic in Mazar-e-Sharif.
In addition, India also committed to take up 116 High Impact Community Development
Projects in 34 provinces of Afghanistan. These important investments will be in the areas
of education, health, agriculture, irrigation, drinking water, renewable energy, flood
control, micro-hydro power, sports and administrative infrastructure.
India also announced that on-going programmes for education, capacity building, skills
and human resource development of Afghanistan, one of the largest such programmes in
the world, will continue for a further period of five years from 2017 to 2022.
During the meeting, three major documents were exchanged;
(a) Motor Vehicles Agreement for the Regulation of Passenger, Personal and Cargo
Vehicular Traffic;
(b) Memorandum of Understanding between the National Medicine and Healthcare

Products Regulatory Authority of Afghanistan, Islamic Republic of Afghanistan and the
Central Drugs Standard Control Organization (CDSCO), Directorate General of Health
Services, Ministry of Health and Family Welfare for mutual cooperation in the field of
pharmaceutical products regulation;
(c) The Orbit Frequency Coordination Agreement between India and Afghanistan on
South Asia Satellite (SAS)
Several other notable visits were that of Afghan Second Vice President Mohammad
Danish Sarwar (December 2017), visit of former President Hamid Karzai (December
2017), visit of Foreign Secretary to Kabul (February 27-28, 2018), visit of Deputy NSA,
Shri Rajinder Khanna to Kabul (May 29- 31, 2018), visit of CEO Abdullah Abdullah to
the inaugural cricket test match of Afghanistan with India on (June 14, 2018) and visit of
Foreign Secretary to Kabul (September 11, 2018). Secretary (Economic Relations), MEA
visited Kabul for the Joint Working Group on Development Cooperation on 08-09
August 2018. Secretary (Commerce) Dr. Anup Wadhavan visited Kabul for the Joint
Working Group on Trade, Commerce and Investment on 25-26 October.
COMMERCIAL
Relations The bilateral trade at for the year 2017-18 was USD 1.143 billion approx. and
has immense potential to be expanded further. However, the trade relations will realize its
true potential once the Wagah-Attari route is opened for bilateral trade. So far, the
Afghanistan Pakistan Transit Trade Agreement (APTTA) has been restrictive in this
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aspect. India is the largest market in the region for Afghan products and the blocking of
transit has affected the free movement of commodities. One of the objectives of building
Zaranj-Delaram road by India was to boost bilateral economic relations besides offering
Afghanistan another outlet to a seaport. The successful operation of the Chabahar port in
Iran would capitalize on this road to offer a new transit route of Afghan products to India
while opening a new route for India, and the rest of the world, for trade with Central
Asia.
The inauguration of the Dedicated Air Cargo Corridor in June 2017 between Kabul-Delhi
and Kandahar-Delhi has provided a fresh impetus to bilateral trade. On 27 December,
Kabul- Mumbai Air Cargo Corridor was also inaugurated. The Air Corridor has ensured
free movement of freight despite the barriers put in place due to the denial of transit by
Pakistan. During the Strategic Partnership Council meeting it was decided to further
strengthen the corridor and expand it to other cities in India. Over 3000 tonnes of cargo
has already been transported in the Air Corridor since its inauguration.
On 28 September 2017, CEO Dr. Abdullah inaugurated the India Afghanistan Trade and
Investment Show. It provided a valuable platform to showcase trade and investment
opportunities in Afghanistan. The show generated business worth US$ 250 million and
enhanced the B2B linkages between India and Afghanistan. The show brought forward
the immense potential in the bilateral trade and further strengthened the commercial
relations between India and Afghanistan.
On 12-15 September 2018, the second annual India-Afghanistan International Trade and
Investment Show was held in Mumbai under the aegis of the US Agency for International
Development (USAID) and Government of India. Around 200 Afghan businesses, 1,200
Indian and 100 international firms participated in the event.
The prominent Indian companies doing businesses in Afghanistan are:
(1) KEC – Electrical Transmission Lines
(2) Phoenix – Consultancy in Electrical Transmission
(3) AIPL – Establishment of Hydro Power Project in Hilmand Province
(4) APTECH – Computer & Management Education
(5) GAMMON INDIA – Power Transmission Line & Power Sub-stations
(6) KPTL – Power Transmission Line
(7) ANAAR GROUP (AIR INDIA GSA)
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(8) Spice Jet
AFGHAN CULTURE RELATIONS

Afghanistan has been an important trading and craft center for over 2000 years
connecting the civilizations of Persia, Central Asia with India. However, over 3 decades
of war have undermined Afghanistan’s unique traditions of art and architecture. Today,
the biggest challenge for Afghanistan is to rediscover and sustain its ancient art and
architectural knowledge. India and Afghanistan share centuries old cultural heritage with
deep-rooted linkages in the field of music, arts, architecture, language and cuisine.
In the field of music, in particular, most Afghan musicians were trained in the Patiala
Gharana. Today, Indian films, songs and TV serials are popular with the masses,
contributing significantly to the popularization of Hindi and familiarization of the
populace with Indian socio -cultural value system.
An India-Afghanistan Culture Week was held in New Delhi in November 2017 as a result
of collaboration of India-Afghanistan Foundation (IAF) and ICCR.
A cultural troupe from the India visited Kabul in September 2017. Smt. Kumud Diwan
and 3 other artists performed at the auditorium of the Radio and Television Afghanistan
for the local government officials, diplomatic corps and music lovers. Smt. Diwan and
the troupe also performed at the Afghanistan National Institute of Music and took a
Masterclass for the young students of the institute.
On December 2018, ‘Awayee Band-e-Amir’ - a folk musical troupe from Bamiyan

Province of Afghanistan visited India for the 5th International Folk Music and Dance
Festival organised by ICCR at New Delhi. The group also performed at Lucknow,
Bhopal and Jawaharlal Nehru University New Delhi during their 10-day long visit to
India.
The 11th Board Meeting of the India Afghanistan Foundation was held on 24 December
2018 at the Delhi Chapter. The Board reviewed the working of the Foundation and
looked into new proposals from both the Chapters.
INDIAN DIASPORA IN AFGHANISTAN

The Mission maintains a database on Indians staying in Afghanistan, though many
Indians don’t register with the Mission. Presently, there are estimated to be about 2500
Indians in the country, though only about 850 are registered with the Mission. Most of
the Indian Diaspora are engaged as professionals in Banks, IT firms etc.
19

INDIA AND BANGLADESH

 BILATERAL INSTITUTIONAL MECHANISM
 SECURITY AND BORDER MANAGEMENT
 DEFENCE COOPERATION
 SHARING OF RIVER WATERS
 BILATERAL TRADE AND INVESTMENT
 DEVELOPMENT PARTNERSHIP
 POWER AND ENERGY SECTOR
 CONNECTIVTY
 TRAINING AND CAPACITY BUILDING
 CULTURAL EXCHANGES
 INDIAN COMMUNITY IN BANGLADESH
20

INDIA AND ITS RELATIONS WITH BANGLADESH

India was one of the first countries to recognize Bangladesh and establish diplomatic
relations immediately after its independence in December 1971. India-Bangladesh
relationship is anchored in history, culture, language and shared values of secularism,
democracy, and countless other commonalities between the two countries. Both countries
share an all-encompassing win-win partnership based on sovereignty, equality, trust and
understanding that goes far beyond a strategic partnership.
HIGH LEVEL VISITS AND EXCHANGES

There have been regular high-level visits and exchanges at Ministerial level as well as at
senior official level between the two countries.
Prime Minister Narendra Modi paid a State visit to Bangladesh on 6-7 June, 2015. During
the visit, 22 bilateral documents were concluded including the exchange of instrument of
ratification for India-Bangladesh Land Boundary Agreement (LBA). Prime Minister of
Bangladesh Sheikh Hasina paid a State Visit to India from 07-10 April 2017. During the
visit, 36 bilateral documents were concluded in various areas including civil nuclear
energy, space, information technology, defence and capacity building etc. On this
occasion, the two Prime Ministers presided over a commemorative ceremony in honour
of Indian martyrs of Liberation War of Bangladesh. Prime Minister Hasina visited West
Bengal from 25-26 May 2018 for joint inauguration of Bangladesh Bhaban at
Santiniketan University along with Prime Minster Narendra Modi. During this visit, she
was awarded a Doctor of Literature (D.Lit) by Kazi Nazrul University, Asansol.
The Prime Ministers of India and Bangladesh also met on the sidelines of summits of
BRICS-BIMSTEC in October 2016 in Goa, CHOGM in April 2018 in London and
BIMSTEC in August 2018 in Kathmandu.
On 31 December 2018, Prime Minister Modi congratulated Bangladesh Prime Minister

Sheikh Hasina over telephone on her re-election as the Prime Minister in the 11th
Parliamentary polls held on 30 December 2018 for an unprecedented fourth term.
Former President Pranab Mukherjee visited Bangladesh in March 2013, which was his
first visit abroad since assuming office. President of Bangladesh, Md. Abdul Hamid
visited India in December 2014, which was the first bilateral visit by Bangladesh’s Head
of State after a gap of 42 years. President Hamid also represented Bangladesh at the
Founding Conference of the International Solar Alliance in New Delhi on 11 March
2018. During his visit, he also travelled to Guwahati and Shillong, Balat (Meghalaya)
from 8-10 March 2018 where he had lived as a Muktijoddha during the Liberation War.
21

After assuming charge, External Affairs Minister (EAM) of India Sushma Swaraj and
Minister of State for External Affairs Lt. Gen (Retd) V.K.Singh had paid their first
standalone overseas visits to Bangladesh on 25-27 June and 24 August 2014 respectively.
The Foreign Secretary also visited Bangladesh from 8-10 April 2018.
Several senior Cabinet Ministers of the Government of India visited Bangladesh in recent
years including Defence Minister Manohar Parikkar in November 2016 (which was the
first ever visit by Indian Defence Minister to Bangladesh since 1971), EAM Sushma
Swaraj in October 2017 to attend the 4th Joint Consultative Commission meeting,
Minister of Finance and Corporate Affairs Arun Jaitley in October 2017 to sign the
Dollar credit line agreement to operationalize the third Line of Credit of USD 4.5 billion
to Bangladesh, Home Minister Rajnath Singh in July 2018 for Home Minister Level
Talks and the Minister of Commerce and Industry and Civil Aviation Suresh Prabhu in
September 2018 to discuss trade, investment and connectivity related issues.
From the Bangladesh side, important Ministerial level visits in recent years included that
of Minister of Science and Technology Yeafesh Osman in October 2017 for the third
India International Science Festival in Chennai, Commerce Minister Tofail Ahmed in
November 2017 for the Horasis Asia meeting in Kolkata, Civil Aviation Minister Rashed
Khan Menon in November 2017 for the North-East Development Summit in Imphal,
Foreign Affairs Minister Abul Hassan Mahmood Ali in January 2018 to attend the
Raisina Dialogue in New Delhi and in August, 2018 to attend the funeral of former Prime
Minister of India Atal Bihari Vajpayee; Cultural Affairs Minister Asaduzzaman Noor in
April 2018 to visit Santiniketan; Industries Minister Md. Amir Hossain in April 2018 to
attend the eight Regional 3R Forum of Asia and Pacific for Clean Water; Minister of
Civil Aviation and Tourism A K M Shahjahan Kamal in August 2018 to attend 6th
International Buddhist Conclave; Industries Minister Amir Hossain Amu in August 2018
to attend the inauguration of India International Mega Trade Fair; Planning Minister of
Bangladesh A.H.M Mustafa Kamal to attend the Mahatma Gandhi International
Sanitation Convention in New Delhi in October 2018; State Minister of Foreign Affairs
Shahriar Alam to attend the second Indian Ocean RIM Association (IORA) Renewable
Energy Ministerial Meeting in New Delhi in October 2018.
BILATERAL INSTITUTIONAL MECHANISMS

There are more than 60 bilateral institutional mechanisms between India and Bangladesh
in the areas of security, trade & commerce, power & energy, transport & connectivity,
science and technology, defence, rivers & maritime affairs etc. A Joint Consultative
Commission (JCC) led by the Ministers of Foreign/External Affairs coordinates and
oversees implementation of initiatives taken between the two countries as well as
explores newer avenues for cooperation. The 4th JCC was held in Dhaka on 22 October,
22

2017. A list of some important bilateral mechanisms and the list of important bilateral
documents concluded between the two countries since 1971 is available in the website of
High Commission.
SECURITY & BORDER MANAGEMENT

India and Bangladesh share 4096.7 km. of border, which is the longest land boundary that
India shares with any of its neighbours. The India-Bangladesh Land Page 3 of 8
Boundary Agreement (LBA) came into force following the exchange of instruments of
ratification in June 2015. On July 31, 2015 the enclaves of India and Bangladesh in each
other’s countries were exchanged and strip maps were signed. Residents of these
erstwhile enclaves, who opted to retain their Indian citizenship made a final movement to
India by November 30, 2015.
A number of security related agreements (Mutual Legal Assistance in Criminal Matters;

Transfer of Sentenced Prisoners, Combating International Terrorism, organized Crime
and Illicit drug trafficking, MoUs on Prevention of Circulation of Fake Currency Notes
and Prevention of Human Trafficking and Extradition Treaty) have been signed between
both the countries and working groups have been constituted to monitor their
implementation
The Coordinated Border Management Plan (CBMP) signed in 2011 aims to synergize the
efforts of both the border guarding forces for checking cross border illegal activities and
crimes as well as for maintenance of peace and tranquility along the IndiaBangladesh
border
The longstanding maritime boundary dispute between India and Bangladesh was settled
as per arbitration award of 7 July 2014 which paved the way for cooperation in the
maritime sector
DEFENCE COOPERATION
India and Bangladesh share the historical legacy of cooperation and support during the
Liberation War of 1971. The active engagement on the defence side includes high level
exchanges at the level of Service Chiefs, conduct of the inaugural Annual Defence
Dialogue and service specific staff talks. Various Joint exercises of Army (Exercise
Sampriti) and Navy (Exercise Milan) take place between two countries. Both navies and
coast guard exchange goodwill ships visits to each other. Scholarships are given to heirs
of Muktijoddhas (Bangladesh War Veterans) for Higher Secondary & Undergraduate
students every year by the Government of India. 100 Muktijoddhas patients per annum
are treated in various Indian armed forces hospitals from 2018. Exchange visits of
23

Bangladesh Muktijoddhas and Indian war veterans take place every year in December to
mark the Victory Day celebrations in Dhaka and Kolkata.
SHARING OF RIVER WATERS

India and Bangladesh share 54 common rivers. A bilateral Joint Rivers Commission
(JRC) is working since June 1972 to maintain liaison between the two countries to
maximize benefits from common river systems. Besides the JRC meetings, technical
level meetings are also held regularly.
The Ganga Waters Treaty signed in 1996 for sharing of waters of river Ganga during lean
season (January 1-May 31) is working satisfactorily. Regular meetings of the Joint
Committee on Sharing of Ganga Waters are held to take stock of the implementation of
the provisions of the treaty.
BILATERAL TRADE AND INVESTMENT

Bangladesh is India’s biggest trade partner in South Asia. Bilateral trade between India
and Bangladesh has grown steadily over the last decade. In the last three years (the period
between FY 2015-16 and FY 2017-18), bilateral trade grew around 31.5% from USD 7
bn to USD 9.3 bn. India’s exports to Bangladesh for the (Indian) financial year 2017-18
(April to March) stood at US $ 8.46 billion and imports from Bangladesh during the
financial year 2017-18 stood at US $ 0.68 billion. More details on bilateral trade statistics
are on the website of High Commission.
India and Bangladesh have trade agreement which is facilitative in nature. India
Bangladesh are members of various regional trade agreements including the Asia Pacific
Trade Agreement (APTA), SAARC Preferential Trade Agreement (SAPTA) and the
Agreement on South Asian Free Trade Area (SAFTA) which govern the tariff regimes
for trade. Under SAFTA, India has granted duty free quota free access to Bangladesh on
all items except alcohol and tobacco. Various bilateral institutional mechanisms including
Commerce Secretary Level Meeting, Shipping Secretary Level Talks, Joint Working
Groups on Trade, Customs and Fisheries and Sub-groups on Banking and Infrastructure
etc meet regularly.
Four Border Haats, two each in Tripura (Srinagar and Kamalasagar) and Meghalaya
(Kalaichar and Balat), have been established for the benefit of bordering communities.
Additional Border Haats on the India-Bangladesh border are under implementation.
24

Total Indian investment proposals in Bangladesh registered with the Bangladesh

Investment Development Authority (BIDA) exceed US$ 3 billion. Cumulative FDI from
India to Bangladesh has doubled from USD 243.91 mn in 2014 to USD 539.91 mn in
June 2018. Indian companies have invested in various sectors including
telecommunications (Airtel), pharmaceuticals (Sun Pharma), FMCG (Marico) and
automobiles (Tata, Hero Motors) sectors in Bangladesh. During PM Sheikh Hasina’s visit
in April 2017, 13 agreements worth around US$ 10 billion of Indian investment mainly
in power and energy sectors in Bangladesh were signed.
DEVELOPMENT PARTNERSHIP
Bangladesh is the biggest development partner of India today. India has extended 3 Lines
of Credits to Bangladesh in the last 8 years amounting to US$ 8 billion.
During the visit of Bangladesh PM to India in January 2010, India had announced a US$1
billion Line of Credit (LOC) for Bangladesh covering 14 projects in public Page 5 of 8
transportation, roads, railways, bridges and inland waterways etc. Most of these projects
have been completed and the remaining are at various stages of implementation.
India had extended the second LOC of US$ 2 billion during the visit of Prime Minister
Modi to Bangladesh in June 2015. This LOC covers 15 projects in areas of roads,
railways, power, shipping, SEZs, health & medical care and technical education.
During the visit of Bangladesh PM to India in April 2017, India extended a third LOC of
US$ 4.5 billion to Bangladesh. The new LOC will cover projects in areas of port
construction, railways, roads, airports, power & energy, telecommunications, and
shipping etc. The Dollar Credit Line Agreement for implementation of the third Line of
Credit was signed in the presence of the Ministers of Finance of India and Bangladesh on
4 October 2017.
In addition to LOC funds, the Government of India has also been providing grant
assistance to Bangladesh for various infrastructure and socio-economic projects including
the Agartala- Akhaura rail link, dredging of inland waterways and India Bangladesh
Friendship Pipeline. Several Small Development Projects in the areas of education,
health, water, culture, urban development, disaster management and community welfare
etc are also being implemented.
25

POWER AND ENERGY SECTOR COOPERATION

Cooperation in power sector has become one of the hallmarks of India- Bangladesh
relations. Bangladesh is currently importing 1160 MW of power from India. The 1320
MW coal-fired Maitree thermal power plant, a 50:50 JV between National Thermal
Power Corporation (NTPC) of India and Bangladesh Power Development Board
(BPDB), is being constructed at Rampal. During Bangladesh PM’s visit in April 2017,
agreements for generation/ supply/ financing of more than 3600 MW electricity were
signed between Indian and Bangladeshi public /private companies.
Energy sector cooperation between India and Bangladesh has also seen considerable
progress in the last two years. Various Indian public sector units including Indian Oil
Corporation, Numaligarh Refinery Limited are working with their Bangladeshi
counterparts in the oil and gas sector of Bangladesh. ONGC Videsh Ltd has acquired two
shallow water blocks in consortium with Oil India Limited and is currently exploring
these blocks.
The GOI is also extending financial assistance for construction of 130 Km India
Bangladesh Friendship Pipeline for supply of diesel from Siliguri to Parbatipur in
Bangladesh
CONNECTIVITY
Improvements in connectivity are an important prerequisite for trade, investments and
people-to-people ties. This has been an important area of focus for India and Bangladesh.
In order to promote connectivity, various initiatives have been taken in the Page 6 of 8
last few years. The overland movement of goods between India and Bangladesh is
operationalized through 34 functional Land Customs Stations (LCSs) and two Integrated
Check Posts (ICPs) along the border at Agartala and Petrapole. Around 37% of India’s
trade with Bangladesh operates through the Petrapole (India) – Benapole (Bangladesh).
Petrapole (India) – Benapole (Bangladesh) has started 24x7 operations from August 01,
2017. Work has also commenced on upgrading the Dawki LCS in Meghalaya.
India and Bangladesh have a Protocol on Inland Waterways Trade and Transit (PIWTT),
to facilitate trade and transit between the countries, since 1972. PIWTT permits
movement of goods over barges/vessels through the river systems of Bangladesh on eight
26

specific routes between points in India and Bangladesh, and between points in India
through Bangladesh.
The PIWTT also allows for transshipment of goods to India’s North- Eastern States
through the Ashuganj River Port (and from there to Akhuara-Agartala by road) in
Bangladesh.
Coastal Shipping Agreement signed in June 2015 has also enabled direct sea movement
of containerized/bulk/dry cargo between the two countries.
India and Bangladesh signed an agreement in October 2018 on the use of Chittagong and
Mongla Ports for transshipment of goods to and from India. The MoU on movement of
passenger and cruise vessels on the waterways and coastal routes between the two
countries is expected to be operationalized soon to facilitate tourism between the two
countries.
Out of the erstwhile 6 rail links that existed, four broad gauge inter-country rail links
between the two countries are operational i.e.., (i) Petrapole (India)-Benapole
(Bangladesh), (ii) Gede (India)-Darsana (Bangladesh), (iii) Singhabad (India)-Rohanpur
(Bangladesh) and (iv) Radhikapur (India)-Birol (Bangladesh). The two remaining rail
linkages i.e., (i) Karimganj/Mahisasan (India)-Shabazpur (Bangladesh) and (ii) Haldibari
(India)-Chilahati (Bangladesh) are also being restored. The seventh new rail-link between
Agartala and Akhaura is being financed under grant assistance of India.
There are currently four inter-country bus services in operation. Dhaka-Kolkata direct bus
service has been running from 1999. Other bus services are between Shillong-Dhaka;
Agartala-Kolkata via Dhaka and Kolkata-Khulna. Various additional services were
introduced including launching of Kolkata- Khulna ‘Bandhan Express’ train services in
November 2017 and introduction of end-to-end immigration and customs clearance for
travelers in the ‘Maitree Express’ between Kolkata and Dhaka.
There are presently around 100 flights operating weekly between India and Bangladesh
connecting various Indian cities including New Delhi, Kolkata, Mumbai and Chennai to
Dhaka and Chittagong. From Bangladesh, US-Bangla Airlines, NOVOAIR, Regent
Airways and Biman Bangladesh; and from India, Jet Airways, Spice Jet, Indigo and Air
India are operating flights between India and Bangladesh.
27

TRAINING AND CAPACITY-BUILDING

A number of training courses are being conducted for Bangladesh officials. Bangladesh is
also an important ITEC partner country, and around 800 participants from Bangladesh
avail training courses under the ITEC programme annually. In addition, 200 scholarships
are awarded by ICCR (Indian Council for Cultural Relations) every year to students from
Bangladesh for pursuing courses in culture, drama, music, fine arts and sports, etc.
CULTURAL EXCHANGES
The Indira Gandhi Cultural Centre (IGCC) in Dhaka regularly organizes cultural
programmes and also conducts classes in various Indian cultural elements including
Hindi, yoga, Hindustani music and Manipuri and Kathak dances etc. These courses are
very popular with the Bangladeshi students. IGCC Hindi teacher also teaches Hindi at
Institute of Modern Languages in University of Dhaka.
The ICCR has initiated a Tagore Chair in University of Dhaka since 2011. MoUs were
signed to establish Hindi and Urdu language chairs in Dhaka University.
A 100-member youth delegation from Bangladesh has been visiting India annually since
2012 to promote understanding among the youth about each other's countries.
The High Commission of India has been publishing a highly popular Bengali literary
monthly magazine 'Bharat Bichitra' since 1972.
Indian community in Bangladesh
About 10,000 strong Indian community is estimated to be living in Bangladesh. Most of

the Indians are engaged in Ready Made Garment (RMG) sector or as top professionals in
MNCs. Around 3000 Indian students are also pursuing medical courses in different
Universities/colleges in Bangladesh. A 24X7 helpline (01937400591) is functional to
assist the Indian community in Bangladesh.
28
INDI

A AND
BHUTA
N
 HIGH
LEVEL
VISITS
 BILATER
AL
MECHA
NISMS
 HYDROP
OWER
COOPER
ATIONS
 BORDER
MANAG
EMENT
 WATER
RESOUR
CES
29
 EDUCAT

INDIA AND ITS RELATIONS WITH BHUTAN

Diplomatic relations between India and Bhutan were established in 1968 with the
establishment of a special office of India in Thimphu. Before this our relations with
Bhutan were looked after by our Political Officer in Sikkim. The basic framework of
India-Bhutan bilateral relations was the Treaty of Friendship and Cooperation signed in
1949 between the two countries, which was revised in February 2007. The India-Bhutan
Friendship Treaty not only reflects the contemporary nature of our relationship but also
lays the foundation for its future development in the 21st century. The Golden Jubilee of
the establishment of formal diplomatic relations between India and Bhutan is being
celebrated in the year 2018.
HIGH LEVEL VISITS

The traditionally unique bilateral relations, characterized by trust and understanding have
matured over the years. The special relationship has been sustained by the tradition of
regular high-level visits and dialogues between the two countries. His Majesty Jigme
Khesar Namgyal Wangchuck was the Chief Guest for the 64th Republic Day celebrations
in 2013. At the invitation of the President of India, His Majesty the King and Her Majesty
the Queen Jetsun Pema paid an official visit to India from 6-10 January, 2014. They
again visited India in October 2014 on a private visit which included visit to Lawrence
School, Sanawar (as chief guest of the 167thFounder’s Day celebration), Bodhgaya and
Varanasi. During Oct-Nov 2017, His Majesty the King of Bhutan accompanied by Her
Majesty the Queen of Bhutan and Royal Prince His Royal Highness Jigme Namgyel
visited India and held discussions on issues of bilateral interest. His Majesty the King of
Bhutan visited New Delhi on 17th August, 2018 to attend the state funeral of the former
Indian PM Shri. Atal Bihari Vajpayee.
Prime Minister of Bhutan, Lyonchhen Tshering Tobgay undertook his last official visit
before third general elections in Bhutan to India from 5-7 July, 2018 at the invitation of
Prime Minister of India. He was accompanied by Lyonpo Namgay Dorji, Finance
Minister and senior officials of Royal Government of Bhutan (RGoB). Prime Minister of
Bhutan thanked the people and GoI for their support to the XI Five Year Plan (FYP) of
Bhutan and PM of India complimented the people and Government of Bhutan on its
graduation to a middle income country. Some of the outcome of the visit include, India’s
30

reassurance of continue support for Bhutan’s socio-economic development in the XII

FYP.
Upon successful conduct of third general elections, Prime Minister Shri. Narendra Modi
had a telephone conversation with new PM of Bhutan Lyonchhen (Dr.) Lotay Tshering
and congratulated him on his victory in the elections. PM Modi also extended invitation
to PM Lyonchhen (Dr.) Lotay Tshering to visit India. Prime Minster of Bhutan thanked
PM Modi for his greetings and accepted the invitation to visit India at the earliest
opportunity. Prime Minster Lyonchhen (Dr.) Lotay Tshering will be on State visit to
India from 27-29 December, 2018.
Prime Minister Shri Narendra Modi paid a State Visit to Bhutan from 15-16 June, 2014.
He was accompanied by External Affairs Minister, National Security Advisor and
Foreign Secretary among other senior officials. It was his first visit abroad after
assumption of office. The visit reinforced the tradition of regular high level exchanges
between the two countries. He addressed the Joint Session of Bhutanese Parliament on
16th June, 2014. During the visit, he laid the foundation stone of the 600 MW
Kholongchhu Hydropower Project and inaugurated the Supreme Court building which
was constructed with Government of India’s assistance. Besides exchanging views and
discussing bilateral relations and economic cooperation, PM Modi announced doubling
of the Nehru Wangchuck Scholarship to Rs. 2 crore per year. He also announced
Government of India’s assistance for establishment of an E-Library project covering all
the 20 districts of Bhutan.
At the invitation of the King of Bhutan, the President of India Shri Pranab Mukherjee
paid a State Visit to Bhutan from 7-8 November, 2014. During the visit, he held wide-
ranging discussions with His Majesty the King of Bhutan including on bilateral and
regional issues. During the visit, the President delivered an address on "India-Bhutan
Relations” and launched/inaugurated three GOI assisted projects, namely the School
Reform Program, Upgradation of the East-West Highway and the Power Training
Institute. He also announced the doubling of the Ambassador’s Scholarship programme
from Rs 1 crore to Rs 2 crore per year. Three MOUs on bilateral cooperation in the field
of education and one MoU on the establishment of Nalanda University were also signed
during the visit.
31

BILATERAL MECHANISMS
There are a number of institutional mechanisms between India and Bhutan in areas such
as security, border management, trade, transit, economic, hydro-power, development
cooperation, water resources. There have been regular exchanges at the Ministerial and
officials’ level, exchanges of parliamentarian delegations to strengthen partnership in
diverse areas of cooperation.
HYDROPOWER COOPERATION
Hydropower projects in Bhutan are an example of win-win cooperation, providing a
reliable source of inexpensive and clean electricity to India, generating export revenue for
Bhutan and cementing our economic integration. So far, Government of India has
constructed three Hydroelectric Projects (HEPs) in Bhutan totaling 1416 MW (336 MW
Chukha HEP, 60 MW Kurichhu HEP and 1020 MW Tala HEP), which are operational
and exporting surplus power to India About three-fourth of the power generated is
exported and rest is used for domestic consumption.
The ongoing cooperation between India and Bhutan in the Hydropower sector is covered
under the 2006 Agreement on Cooperation in Hydropower and the Protocol to the 2006
agreement signed in March, 2009. Under this Protocol, Government of India has agreed
to assist Royal Government of Bhutan in developing a minimum of 10,000 MW of
hydropower and import the surplus electricity from this to India by the year 2020.
Currently, there are three Inter-Governmental (IG) model HEPs viz. 1200 MW
Punatsangchhu-I, 1020 MW PunatsangchhuII and 720 MW Mangdechhu under
implementation.
In April 2014, an Inter-Governmental Agreement was signed between India and Bhutan
for development of four more HEP’s of capacity 2120 MW (600 MW Kholongchhu, 180
MW Bunakha, 570 MW Wangchhu and 770 MW Chamkharchhu) under the Joint
Venture Model. These projects will have both the JV partners owning 50:50
shareholdings each in the JV- company. Debt-equity ratio would be 70:30, with equity
shared equally between JV partners. Further, MEA is providing Druk Green Power
Corporation’s (Bhutanese) share of equity as grant. There is also ongoing discussion on
for development of the mega HEP Sunkosh (2585 MW) between two governments.
32
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BORDER MANAGEMENT
There is a Secretary-level mechanism on border management and security related
matters. Last meeting on the subject was held in New Delhi in November, 2017. There is
also a Border District Coordination Meeting (BDCM) Mechanism between the bordering
States and the Royal Government of Bhutan (RGoB) to facilitate coordination on border
management and other related matters. The 23rd BDCM between RGoB and West
Bengal was held from 24-25 October, 2017 in Thimphu. The 10th BDCM between RGoB
and Assam was held from 28-29 January, 2015 in Bongaigaon, Assam.
WATER RESOURCES
There is a Joint Group of Experts (JGE) on flood management between India and Bhutan
to discuss/ assess the probable causes and effects of the recurring floods and erosion in
the southern foothills of Bhutan and adjoining plains in India and to recommend
appropriate measures to both Governments. Last meeting of JGE was held in April, 2017
in Thimphu, Bhutan.
EDUCATIONAL AND CULTURAL COOPERATION

A large number of college going Bhutanese students are studying in India. It is estimated
that approximately 4000 Bhutanese are studying in Under Graduate courses in Indian
Universities on self-financing basis.
UNDER GRADUATE SCHOLARSHIPS

Government of India scholarships are granted to Bhutanese students at Undergraduate
level every year to study in prestigious Indian Institutions of higher learning. Under this
scheme, 450 slots have been approved for Bhutanese students to pursue Under Graduate
courses in India for the XI FYP. Thus, every year GoI is providing fully funded 90
(ninety) scholarships to deserving Bhutanese students in different professional streams
such as MBBS (in AIIMS), Engineering, LLB, B.Sc (Nursing), B.Sc (Agriculture), BDS
etc. From 2013-2017 (i.e. 2013-14, 2014-15, 2015-16 and 2016-17) total 370 students
were selected for this scholarship. In 2018-19 the scholarship was availed by 87 students
from Bhutan.
33

INDIA-BHUTAN FOUNDATION
India-Bhutan Foundation was established in August 2003 during the visit of His Majesty
(then Crown Prince) to India with the aim of enhancing people to people exchanges in
focus areas like education, culture, scientific and technical research and environment
protection. The Ambassador of Bhutan and India are the Co-Chairpersons of the
Foundation. The 17th Board of Directors Meeting was held in Guwahati on 3rd
December, 2017.
NEHRU – WANGCHUCK CULTURAL CENTRE

There are vibrant cultural exchanges between the two countries. Nehru Wangchuck
Cultural Centre in Thimphu is abuzz with cultural activities around the year. Regular
classes for Indian classical music, tabla and yoga are being organized in this centre.
NWCC also organizes cultural functions, exhibitions, movie, shows, seminars etc.
34

INDIA
AND
MALDI
VES
 POLITIC
AL
REALTI
ONS
 BILATER
AL
ASSISTA
NCE
 ECONO
MIC
AND
COMME
RCIAL
 CULTUR
AL
RELATI 35
ONS

INDIA AND ITS REALTIONS WITH MALDIVES

As close and friendly neighbours, India and Maldives share ethnic, linguistic, cultural,
religious and commercial links steeped in antiquity and enjoy cordial and
multidimensional relations. India was among the first to recognise Maldives after its
independence in 1965 and to establish diplomatic relations with the country. India
established its mission at Malé in 1972.
POLITICAL RELATIONS
Bilateral relations have been nurtured and strengthened by regular contacts at all levels.
Since establishment of diplomatic relations, almost all Prime Ministers of India visited
the Maldives. From the Maldivian side, former President Maumoon Abdul Gayoom and
former President Mohamed Nasheed made a number of visits to India during their
Presidencies. President Abdulla Yameen visited India with a high level delegation on a
State visit from January 1-4, 2014, which was his first official visit abroad. He also
attended the swearing-in ceremony of the Prime Minister Shri Narendra Modi in May
2014.
There is a regular exchange of high level ministerial visits also. India’s Minister of
External Affairs, Smt. Sushma Swaraj visited Maldives in November 2014 and October
2015. Minister of Health Shri J.P. Nadda visited Maldives as the Special Envoy of Prime
Minister to attend the Golden Jubilee Independence Celebrations in July 2015. Minister
of State for Tourism, Culture & Civil Aviation Dr. Mahesh Sharma also visited Maldives
from June 3-5, 2015 to attend UNWTO Regional Ministerial Conference. From
Maldives, recent Ministerial level visits were by Minister of Foreign Affairs Ms. Dunya
Maumoon (Feb 2015 and Nov 2015), then Minister of Health Ahmed Zuhoor (April
2015) and Minister of Defence and National Security Adam Shareef Umar (Jan 2016 and
Feb 2016).
India and Maldives have consistently supported each other in multilateral fora such as the
UN, the Commonwealth, the NAM and the SAARC.
BILATERAL ASSISTANCE
India is a leading development partner of Maldives and has established many of the
leading institutions of Maldives including the Indira Gandhi Memorial Hospital (IGMH),
36
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Faculty of Engineering Technology (FET) and Faculty of Hospitality & Tourism Studies
(IMFFHTS). India has offered assistance to Maldives wherever required. After the
tsunami that struck Maldives on December 26, 2004, India was the first country to rush
relief and aid to Maldives. India provided a budget support aid of Rs.10 crores in view of
the serious financial difficulties being faced by Maldives on account of the tsunami and
related factors. Assistance of US Dollars February 2016 equivalent of Rs.100 million in
July 2007 towards assistance was given following tidal surges in May 2007.
Currently, India has provided US$100 million Stand-by Credit facility (SCF) to
Maldives, including long-term loans and revolving credit for trade. Under new Line of
Credit worth US$40 million offered by the Government of India to Maldives, the
Overseas Infrastructure Alliance (OIA) of India has been given a contract to construct
485 housing units in Maldives.
CAPACITY BUILDING AND TRAINING

Capacity building and skills development is one of the key components of India’s
assistance to Maldives. India offers several scholarships to Maldivian students under the
following schemes:  ICCR scholarships
 SAARC Chair Fellowship
 ITEC training & scholarships
 Technical Cooperation Scheme of Colombo Plan
 Medical scholarships
Several Maldivian diplomats have received training in India under the Indian Foreign
Service Institute’s Professional Course for Foreign Diplomats (PCFD) program.
The Government of India financed a US$5.30 million project for Technology Adoption
Programme in Education Sector in Maldives. The project, executed by NIIT and EEEC
(India), trained around 5000 Maldivian teachers and youth across islands in Computer
skills over a 27 month period (2011-2013).
37
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ECONOMIC AND COMMERCIAL RELATIONS

India and Maldives signed a trade agreement in 1981, which provides for export of
essential commodities. Growing from modest beginnings, India-Maldives bilateral trade
now stands at Rs.700 crores. Indian exports to the Maldives include agriculture and
poultry produce, sugar, fruits, vegetables, spices, rice, wheat flour (Atta), textiles, drugs
and medicines, a variety of engineering and industrial products, sand and aggregate,
cement for building etc. Indian imports primarily scrap metals from the Maldives. Under
the bilateral agreement, India provides essential food items like rice, wheat flour, sugar,
dal, onion, potato and eggs and construction material such as sand and stone aggregates
to Maldives on favourable terms.
CULTURAL RELATIONS
Both the countries share long cultural links and continuous efforts are underway to
further strengthen these linkages. Three historical mosques (Friday Mosque and
Dharumavantha Rasgefaanu Mosque - Male’, Fenfushi Mosque - South Ari Atoll)
February 2016 were successfully restored by Indian experts from NRLCCP, Lucknow.
Exchange of cultural troupes takes place regularly between the countries. Hindi
commercial films, TV serials and music are immensely popular in Maldives. The India
Cultural Center (ICC), established in Male in July 2011, conducts regular courses in
yoga, classical music and dance. ICC programmes have become immensely popular
among Maldivians of all ages.
38
INDIA

AND
NEPAL
 POLITIC
AL
RELATI
ONS
 ECONO
MIC
 INDIAN
INVEST
MENT IN
NEPAL
 WATER
RESOUR
CES
 INDIA’S
DEVELO
PMENT
ASSISTA
NCE TO
NEPAL
 DEFENC
E
COOPER
ATION
39
 EDUCAT

INDIA AND ITS REALTIONS WITH NEPAL

As close neighbors, India and Nepal share unique ties of friendship and cooperation
characterized by an open border and deep-rooted people-to-people contacts of kinship
and culture. There has been a long tradition of free movement of people across the
border. Nepal shares a border of over 1850 km with five Indian states – Sikkim, West
Bengal, Bihar, Uttar Pradesh and Uttarakhand. The India-Nepal Treaty of Peace and
Friendship of 1950 forms the bedrock of the special relations that exist between India and
Nepal. Nepalese citizens avail facilities and opportunities on par with Indian citizens in
accordance with the provisions of the Treaty. Nearly 6 million Nepalese citizens live and
work in India.
POLITICAL REALTIONS
There are regular exchanges of high-level visits and interactions between India and
Nepal. Prime Minister Shri Narendra Modi visited Nepal twice in 2014 – on 03-04
August for a bilateral visit and on 25-27 November for the 18th SAARC Summit.
Nepalese Prime Minister Mr. K.P. Sharma Oli paid a State visit to India on 19-24
February 2016. Deputy Prime Minister and Minister of Home Affairs of Nepal Mr.
Bimalendra Nidhi visited India on 18-22 August 2016 as Special Envoy of the Prime
Minister. Nepalese Prime Minister Mr. Pushpa Kamal Dahal ‘Prachanda’ visited India
twice in 2016 – on 15-18 September on a State visit and on 15-17 October to participate
in the 1st BRICS-BIMSTEC leaders’ summit in Goa.
President of India Shri Pranab Mukherjee paid a State visit to Nepal on 02-04 November
2016. This was the first State visit by an Indian President to Nepal after a gap of 18 years.
President of Nepal Mrs. Bidya Devi Bhandari paid a State visit to India on 17-21 April
2017. Prime Minister of Nepal Mr. Sher Bahadur Deuba paid a State visit to India on 23-
27 August 2017. Prime Minister of Nepal Mr. K.P. Sharma Oli paid a State visit to India
on 06-08 April 2018. Prime Minister of India Shri Narendra Modi paid a State visit to
Nepal on 11-12 May 2018. Prime Minister Modi also visited Nepal on 30-31 August
2018 for the 4th BIMSTEC Summit, which was held in Kathmandu. This was his fourth
visit to Nepal since 2014.
India and Nepal have several bilateral institutional dialogue mechanisms, including the
India-Nepal Joint Commission co-chaired by External Affairs Minister of India and
40
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Foreign Minister of Nepal. The Fourth Joint Commission Meeting was held on 26-27
October 2016 in New Delhi.
ECONOMIC
In the past ten years, bilateral trade grew over six times from INR 5585 crores in 2006-07
to INR 39564 crores (US$ 5.89 billion) in 2016-17. During the same period, exports from
Nepal to India more than doubled from INR 1384 crores in 2006-07 to INR 2985 crores
(US$ 445 million) in 2016-17. Similarly, India’s exports to Nepal grew over eight times
from INR 4201 crores in 2006-07 to INR 36579 crores (US$ 5.45 billion) in 2016-17.
Nepal’s main imports from India are petroleum products (13.7%); motor vehicles and
spare parts (13.1%); M. S. billet (4.7%); rice & paddy (4.5%); other machinery & parts
(4%); medicine (4%).; hot-rolled sheet in coil (2.8%); electrical equipment(2.5%);
cement (2.4%); agricultural equipment & parts(1.9%); coal (1.9%); m.s. wires, rods,
coils, bars (1.6%); vegetables (1.6%); cold rolled sheet in coil (1.4%); thread (1.3%), etc.
INDIAN INVESTMENT IN NEPAL

Indian firms are among the largest investors in Nepal, accounting for about 30% of the
total approved foreign direct investments. As on 15 September 2018, Indian ventures lead
foreign investment with FDI commitments of INR 5942.68 crores. There are about 150
Indian ventures operating in Nepal engaged in manufacturing, services (banking,
insurance, dry port, education and telecom), power sector and tourism industries. Some
large Indian investors include ITC, Dabur India, Hindustan Unilever, VSNL, TCIL,
MTNL, State Bank of India, Punjab National Bank, Life Insurance Corporation of India,
Asian Paints, CONCOR, GMR India, IL&FS, Manipal Group, MIT Group Holdings,
Nupur International, Transworld Group, Patel Engineering, Bhilwara Energy, Bhushan
Group, Feedback Ventures, RJ Corp, KSK Energy, Berger Paints, Essel Infra Project Ltd.
and Tata Power, India etc.
WATER RESOURCES
Cooperation in water resources primarily concerning the common rivers is one of the
most important areas of bilateral relations. A large number of small and large rivers flow
from Nepal to India and constitute an important part of the Ganges river basins. These
rivers have the potential to become major sources of irrigation and power for Nepal and
India. A three-tier bilateral mechanism established in 2008, to discuss issues relating to
41
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cooperation in water Page 3 of 6 resources, flood management, inundation and

hydropower between the two countries, has been working well.
INDIA’S DEVELOPMENT ASSISTANCE TO NEPAL

Government of India’s development assistance to Nepal is a broad-based programme
focusing on creation of infrastructure at the grass-roots level, under which various
projects have been implemented in the areas of infrastructure, health, water resources,
education and rural & community development. In recent years, India has been assisting
Nepal in development of border infrastructure through upgradation of roads in the Terai
areas; development of crossborder rail links at Jogbani-Biratnagar, Jaynagar-Bardibas;
and establishment of Integrated Check Posts at Birgunj, Biratnagar, Bhairahawa, and
Nepalgunj. The total economic assistance earmarked under ‘Aid to Nepal’ budget for FY
2017-18 was Rs. 375 crore. A total of Rs. 650 crore was allocated under the ‘Aid to
Nepal’ budget head for FY 2018-19, registering an increase of 73% over the previous
year.
During the visit of Prime Minister of Nepal in April 2018, the two Prime Ministers jointly
inaugurated the Integrated Check Post in Birgunj (Nepal) built with GoI assistance. On
10 July 2018, Prime Minister of Nepal inaugurated a three-storied library for Nepal
Academy in Kathmandu. On 31 August 2018, the two Prime Ministers jointly
inaugurated the Nepal-Bharat Maitri Pashupati Dharmashala in Kathmandu.
Over 559 large, intermediate and small-scale projects at an estimated cost of NPR 76
billion have been implemented across Nepal with Indian assistance since 1951. Till date
India has gifted 692 ambulances and 136 school buses to various institutions and health
posts across Nepal’s 77 districts.
Apart from grant assistance, Government of India has extended Lines of Credit of USD
1.65 billion for undertaking development of infrastructure, including post-earthquake
reconstruction.
DEFENCE COOPERATIONS
India and Nepal have wide-ranging cooperation in the defence sector. India has been
assisting the Nepal Army (NA) in its modernisation by supplying equipment and
providing training. Assistance during disasters, joint military exercises, adventure
activities and bilateral visits are other aspects of India’s defence cooperation with Nepal.
42
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A number of defence personnel from Nepal Army attend training courses in various
Indian Army training institutions. The ‘IndoNepal Battalion-level Joint Military Exercise
SURYA KIRAN’ is conducted twice a year Page 4 of 6 alternately in India and in Nepal.
The 13th Surya Kiran exercise was held in Pithoragarh (India) in May-June 2018. Since
1950, India and Nepal have been awarding each other’s Army Chief with the honorary
rank of General in recognition of the mutual harmonious relationship between the two
armies.
The Gorkha regiments of the Indian Army are raised partly by recruitment from hill
districts of Nepal. Currently, about 32,000 Gorkha Soldiers from Nepal are serving in the
Indian Army. In 2017-18, pensions in excess of INR 2923 Crores (NPR 4677 Crores)
were disbursed by the Indian Army to about 1,25,000 retired Gorkha soldiers and civilian
pensioners, who had served in the Indian Army and other central and state services. In
2018-19, pensions in excess of INR 1682 Crores (NPR 2692 Crores) has been disbursed
till 30 September 2018. In addition to Military Pension Branch in Kathmandu, there are
two Pension Paying Offices at Pokhara and Dharan, and 22 District Soldier Boards in
Nepal, all functioning under the Defence Wing of the Indian Embassy in Kathmandu,
which arrange the disbursement of pensions and organise welfare programmes for re-
training, rehabilitating and assisting ex-Gorkha soldiers and their families.
EDUCATION
Over the years, India’s contribution to the development of human resources in Nepal has
been one of the major aspects of bilateral cooperation. GoI provides around 3000
scholarships/seats annually to Nepalese nationals for various courses at the Ph.D/Masters,
Bachelors and plus–two levels in India and in Nepal. These scholarships cover a wide
spectrum of subjects including engineering, medicine, agriculture, pharmacology,
veterinary sciences, computer application, business administration, music, fine arts, etc.
CULTURE
GoI initiatives to promote people-to-people contacts in the fields of art & culture,
academics and media include cultural programmes, symposia and events organized in
partnership with different local bodies of Nepal, as well as conferences and seminars in
Hindi. Familiarization visits to India by Nepalese journalists/editors and short term
training in India for Nepalese editors/ journalists/experts/officials in the field of print &
electronic media and archaeology are also arranged. Assistance is also provided to
43
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several India-Nepal Friendship Organizations working to promote Indian culture and

India-Nepal bilateral relations. India is establishing an e-library system across Nepal.
MoUs/Agreements have been signed between: (i) Sahitya Kala Akademi (India) and
Nepal Academy, (ii) Doordarshan (India) and Nepal TV, (iii) Press Council of India and
Press Council of Nepal, (iv) Lalit Kala Akademi (India) and Nepal Academy of Fine
Arts, (v) GoI and Government of Nepal for cooperation on youth affairs, (vi) Sangeet
Natak Akademi (India) and Nepal Academy of Music & Drama, and (vii) GoI and
Government of Nepal for twinning of sister cities Kathmandu-Varanasi, Lumbini-
Bodhgaya and Janakpur-Ayodhya.
The Swami Vivekananda Centre for Indian Culture was set up in Kathmandu in August
2007 to showcase the best of Indian culture. The Centre has generated considerable
goodwill through various cultural events it has undertaken in the past. The Nepal–Bharat
Library was founded in 1951 in Kathmandu. It is regarded as the first foreign library in
Nepal. Its objective is to enhance and strengthen cultural relations and information
exchange between India and Nepal. The B.P. Koirala India-Nepal Foundation was set up
in 1991 through an MoU signed between the Governments of India and Nepal.
The Foundation’s objective is to foster educational, cultural, scientific and technical

cooperation between India and Nepal and to promote mutual understanding and
cooperation through sharing of knowledge and professional talents in academic pursuits
and technical specialization.
44
INDIA

AND
PAKIST
AN
 POLITIC
AL
 BILATER
AL
DIALOG
UE
 TERROR
ISM
 TRADE
AND
ECONO
MIC
RELATI
ONS
 MOST
FAVOUR
ED
NATION
STATUS
 HUMANI
TARIAN 45
ISSUE

INDIA AND ITS RELATIONS WITH PAKISTAN

POLITICAL
India desires peaceful, friendly and cooperative relations with Pakistan, in an
environment free from terrorism and violence. Terrorism emanating from Pakistan and
territory under its control has, however, severely limited and disrupted initiatives to build
a stable relationship. Indian Policy on Pakistan is as follows: a) Issues can be resolved
through dialogue; b) There are only two parties to such dialogue-India and Pakistan; c)
However, terror and talks cannot go together.
After securing a clear majority in the General Elections to the 16thLok Sabha, the PM-
designate Shri Narendra Modi on May 21, 2014 invited Prime Minister Nawaz Sharif and
other SAARC leaders to attend the swearing-in of the new Union Council of Ministers in
New Delhi. Accompanied by his Advisor on National Security and Foreign Affairs Sartaj
Aziz, Special Assistant on Foreign Affairs Tariq Fatemi and Foreign Secretary Aizaz
Ahmad Chaudhury, Prime Minister Mr. Nawaz Sharif visited New Delhi on May 26-27,
2014. He attended the oath-taking ceremony at RashtrapatiBhavan (President’s House)
on May 26 evening and held a bilateral meeting with PM on May 27. In the meeting, PM
underlined our concerns relating to terrorism and stressed the need to ensure speedy
progress of the Mumbai terror attack trial underway in Pakistan and the conviction of
those responsible. PM expressed his hope that India-Pakistan relations would progress in
the economic, commercial, cultural and political fields in the same manner that India’s
relations with its other SAARC neighbours have progressed in recent years. The two
leaders agreed that the Foreign Secretaries will remain in touch and explore how to move
forward.
Subsequent to the meeting of May 27, in a letter to Prime Minister Mr. Nawaz Sharif on
June 11, 2014 PM Shri Modi stated that the presence of Prime Minister Sharif, and other
leaders, at the swearing-in was also a celebration of the strength of democracy in our
region and a reflection of our collective hopes and shared destinies. PM also mentioned
that he was encouraged by his discussions on bilateral relations and the convergence in
views, especially on the fact that a relationship between India and Pakistan defined by
peace, friendship and cooperation would unleash enormous opportunities for our youth,
secure a more prosperous future for our people, and accelerate progress across our region.
Prime Minister Shri Modi also said that he looked forward to working closely with Prime
46
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Minister Sharif and his Government in an atmosphere free from confrontation and
violence in order to chart a new course in our bilateral relations. Prime Minister Shri
Modi also condemned in the strongest terms the terrorist attack on Karachi airport earlier
that month.
Following the Pakistan High Commissioner’s meeting in New Delhi with so-called
Hurriyat members and the consequent cancellation of Foreign Secretary level talks by
India [scheduled for August 25, 2014], there was an escalation in ceasefire violations by
the Pak side across the Line of Control [LoC] and the International Border which
continued intermittently throughout the remaining period of 2014.
Notwithstanding the continued ceasefire violations by Pakistan and loss of innocent lives,
India expressed its solidarity with the Government and People of Pakistan in times of
crises. On 07 September 2014, Prime Minister Shri Modi wrote a letter to Prime Minister
Mr. Nawaz Sharif expressing his sympathies for the flood affected people and their
families across the Line of Control and offering assistance to the Government of Pakistan
for relief efforts. India strongly condemned the terrorist attack at Wagah on November
02, 2014. Following the terrorist attack on a school in Peshawar on December 16, 2014,
Prime Minister Shri Narendra Modi spoke with Pakistan Prime Minister Mr. Nawaz
Sharif over telephone on the same evening and condemned in the strongest terms the
brutal terrorist attack on the school students. He told Prime Minister Sharif that this
moment of shared pain and mourning is also a call for our two countries and all those
who believe in humanity to join hands to decisively and comprehensively defeat
terrorism, so that the children in Pakistan, India and elsewhere do not have to face a
future darkened by the lengthening shadow of terrorism. On Prime Minister Shri Modi’s
appeal, schools across India to observed two minutes of silence on December 17 as a
mark of solidarity with the children and people of Pakistan. On the same day [December
17], Lok Sabha passed a Resolution condemning the attack.
As a part of his tour of SAARC member states [“SAARC Yatra”] Foreign Secretary S.
Jaishankar visited Islamabad on March 03, 2015 and held delegation level talks with his
Pakistani counterpart. Both sides discussed ideas and initiatives to take SAARC forward.
The visit also provided an opportunity to discuss bilateral relations. Both sides engaged
on each other’s concerns and interests in an open manner. Foreign Secretary reiterated
our known concerns on cross border terrorism, including on the Mumbai case. Later on
47
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that day, the Foreign Secretary also called on Prime Minister Nawaz Sharif during this
visit.
On the eve of the commencement of the holy month of Ramzaan, PM Shri Modi spoke to
PM Mr. Nawaz Sharif over telephone on June 16, 2015 to convey his good wishes. He
reiterated to Prime Minister Sharif his message of peaceful, friendly and cooperative
relations between the two countries. As a gesture of goodwill, PM Shri Modi also
announced the release of Pakistani fishermen in Indian jails.
The Prime Ministers of Pakistan and India met on July 10, 2015 on the sidelines of the
SCO Summit in Ufa. The two leaders exchanged views on issues of bilateral and regional
interest. They agreed that India and Pakistan have a collective responsibility to ensure
peace and promote development. Both leaders condemned terrorism in all its forms and
agreed to cooperate with each other to eliminate this menace from South Asia. They also
agreed on the following steps to be taken by the two sides: A meeting in New Delhi
between the two NSAs to discuss all issues connected to terrorism; early meetings of DG
BSF and DG Pakistan Rangers followed by that of DGMOs; decision for release of
fishermen in each other’s custody, along with their boats, within a period of 15 days;
mechanism for facilitating religious tourism; and, both sides agreed to discuss ways and
means to expedite the Mumbai case trial, including additional information like providing
voice samples. Prime Minister Mr. Nawaz Sharif reiterated his invitation to Prime
Minister Shri Modi to visit Pakistan for the SAARC Summit in 2016.Prime Minister Shri
Modi accepted the invitation.
The dates for the NSA talks to be held in Delhi as per the Ufa understanding were
proposed to the Pak side in Islamabad on July 23. However, the talks got cancelled as
contrary to the understanding at Ufa, the Pak side showed reluctance to discuss the issue
of terrorism and tried to divert the focus to other issues.
The two Prime Ministers met briefly in Paris in November 2015 on the margins of the
CoP21 Conference. Following this meeting, the National Security Advisors accompanied
by the Foreign Secretaries met in Bangkok on December 06, 2015. Discussions covered
peace and security, terrorism, Jammu and Kashmir as well as tranquillity along the LoC.
Following the meeting of the NSAs, the EAM travelled to Islamabad on December 08-
09, 2015 to participate in the “Heart of Asia/Istanbul Process” Ministerial Conference.
During the visit she held talks with Sartaj Aziz and called on PMNS. A Joint Statement
48
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issued at the end of the meeting between EAM and SA made the following significant
points: (i) the Indian side was assured of the steps taken to expedite the early conclusion
of the Mumbai trial; (ii) accordingly, it was agreed to a Comprehensive Bilateral
Dialogue.
PM Shri Modi visited Lahore on his way back from Kabul on December 25, 2015. The
brief stopover at Lahore was decided after the Prime Minister telephoned PMNS to
convey his birthday greetings. The Prime Minister was received at the Allama Iqbal
International Airport in Lahore by PM Nawaz Sharif and Punjab CM Shabaz Sharif on
December 25 afternoon and flown to Pakistan PM’s residence at Raiwind in a helicopter.
Both the Prime Ministers held talks on bilateral relations. The impromptu visit to Lahore
by PM Shri Modi was generally welcomed in Pakistan.
Following the terrorist attack on an airbase in Pathankot on January 2, 2016, and tracing
of the conspiracy for the attack to the Pakistan based terrorist group Jaish-eMohammad
[JeM], it was mutually agreed to postpone the Foreign Secretary level talks scheduled to
be held in mid-January 2016. At the request of Government of Pakistan, a Joint
Investigation Team [JIT] from Pakistan visited New Delhi and Pathankot in the last week
of March 2016. The investigating officers of the National Investigation Agency [NIA]
gave a detailed presentation on the evidence collected during the course of the
investigation. JIT of Pakistan and India’s investigating teams interacted under extant
legal procedures of India and Pakistan. The Pakistan’s JIT visited the scene of crime in
Pathankot. The Pakistan JIT was also given access to witnesses. NIA presented the JIT
with concrete evidence against the office bearers of JeM who conspired in the attack and
the handlers of the terrorists who facilitated and guided them. Two Letters Rogatory [LR]
have been handed over to Pakistani authorities for investigation in Pakistan. A response
from Pakistan on the progress of the investigation into this case is awaited.
Despite our persistent urging that Pakistan respect its January 2004 commitment of not
allowing its soil or territory under its control to be used for terrorism against India, there
was no let up in infiltration and terrorist actions from across the Line of Control.
Following the terrorist attack on an army camp in Uri in Jammu and Kashmir on
September 18 and continued incidents of terrorist infiltrations, the Indian Army
conducted surgical strikes at various terrorist launch pads across the Line of Control,
based on specific and credible inputs, and inflicted significant casualties to terrorists and
those providing support to them.
49
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Pakistan’s continued efforts at interfering in the internal affairs of India, including in the
State of Jammu and Kashmir created an environment that was not conducive to the
successful holding of the 19th SAARC Summit in Islamabad in November 2016. In the
then prevailing circumstances, India was unable to participate in the proposed SAARC
Summit in Islamabad.
An Indian National, Mr. Kulbhushan Jadhav was purportedly caught by Pakistani

agencies under suspicious circumstances in March 2016. The High Commission of India
in Islamabad has so far sent 21 Notes Verbale seeking Consular Access as required under
the norms of the Vienna Convention on Consular Relations. However, the Government of
Pakistan till date has not responded. The Pakistani authorities announced on April 10,
2017 that a Field General Court Martial (FGCM) awarded death sentence to Mr.
Kulbhushan Jadhav under the Pakistani Army Act (PAA). Two petitions from the mother
of Kulbhusan Jadhav were handed over to Pakistan’s Foreign Secretary on April 26, 2017
by the High Commissioner requesting it to be filed before the Court of Appeal and the
Government of Pakistan on behalf of Mr. Jadhav. Concerned over the safety of Mr.
Kulbhushan Jadhav, the Government of India approached the International Court of
justice (ICJ) at The Hague on May 08, 2017 against violation of Vienna Convention on
Consular Relations, 1963 by Pakistan. The ICJ, in its interim ruling on May 18, 2017, has
stayed the death sentence until the final decision on the proceedings.
BILATERAL DIALOGUE: BACKGROUND DETAILS [2010-2014]

In April 2010, following the meeting between the then Prime Minister Dr. Manmohan
Singh and then Pak PM Gilani on the margins of the SAARC Summit (Thimpu),
meetings was held between Foreign Ministers (Islamabad, July 2010) and Foreign
Secretaries (Thimphu, February 2011). During the latter meeting it was formally agreed
to resume dialogue on the following issues: (i) Counter-terrorism (including progress on
Mumbai trial) and Humanitarian issues at Home Secretary level; (ii) Peace & Security,
including CBMs, (iii) Jammu & Kashmir; (iv) promotion of friendly exchanges at the
level of Foreign Secretaries; (v) Siachen at Defence Secretary-level; (vi) Economic issues
at Commerce Secretary level; (vii) Tulbul Navigation Project/ Wullar Barrage at Water
Resources Secretary-level; and (viii) Sir Creek (at the level of Surveyors General/
Additional Secretary).
50

Several efforts have been made to enhance people-to-people contacts. CrossLoC travel
and trade across J&K, initiated in 2005 and 2008 respectively, is an important step in this
direction. India and Pakistan signed a new visa agreement in September 2012 during the
visit of then External Affairs Minister to Pakistan.
Two rounds of the resumed dialogue were completed; the third round began in September
2012, when the Commerce Secretaries met in Islamabad. Talks on conventional and non-
conventional CBMs were held in the third round in December 2012 in New Delhi. A
meeting of the Working Group on Cross-LoC (Line of Control) trade and travel CBMs
was held in New Delhi on March 4, 2014 in which issues including strengthening of
standard operating procedures were discussed.
Following the attack on 6 Aug 2013 in which five Indian soldiers were killed along the
LoC, India called upon Pakistan to maintain the ceasefire and uphold the sanctity of LoC,
which is the most important Confidence Building Measure (CBM) between the two
countries and, together with Pakistan's assurance not to allow territory under its control to
be used for anti-India activities, the basis of bilateral dialogue process since January
2004. It was conveyed that such unprovoked incidents on LOC by the Pakistan Army
would have consequences for our bilateral ties.
In their meeting on the margins of the UN General Assembly on September 29, 2013 in
New York, the then Prime Minister Dr. Manmohan Singh and PM Mr. Nawaz Sharif
agreed that the precondition for a forward movement in the relationship, which they both
desired, was an improvement of the situation on the LoC where there had been repeated
ceasefire violations and incidents. They decided to task the Directors General of Military
Operations (DGMOs) to suggest effective means to restore the ceasefire and a way
forward to ensure that it remains in force and in place. The meeting of the DGMOs took
place at Wagah on December 24, 2013. However, unprovoked firing on Indian troops
from Pakistan again resulted in casualties among civilians and security personnel in May
and July 2014.
TERRORISM
Terrorism emanating from Pakistan or territory under Pakistan's control remains a core
concern in bilateral relations. This is precisely why India has sought a firm and abiding
implementation of the commitment from Pakistan, formally conveyed in January 2004,
that it will not allow its territory and territory under its control to be used for the aiding
51
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and abetting of terrorist activity directed against India and for providing sanctuary to such
terrorist groups. India has consistently stressed the need for Pakistan to fulfill its oft-
repeated assurances, given to India at the highest level, that territory under its control
would not be allowed to be used for anti-India activities in any manner. It is critical for
the security of the region that Pakistan undertakes determined action to dismantle the
terrorist networks, organizations and infrastructure. However, internationally sanctioned
terrorist entities such as Lashkar-e-Taiba (LeT) continue to function in Pakistan under
various aliases, such as Jamat-ud-Dawa, whose enhanced profile and activities indicate
continued flow of resources in violation of the UN sanctions. LeT's leader Hafiz Saeed
and his followers also continue to plan and incite violence against India. Pakistan placed
Hafiz Saeed and four other members of LeT/JuD under house detention in the last week
of January 2016. Hafiz Saeed was also placed under the Fourth Schedule of Pakistan’s
Anti-Terrorism Act, action mandated internationally against him and his terrorist
organizations and colleagues. It is but a first logical step in bringing them to justice, and
in ridding our region of the twin menaces of terrorism and violent extremism.
Progress in the ongoing Mumbai terror attack case in Pakistan is seen as an important
marker of Pakistan's commitment to combat terrorism emanating from its soil. The
release on bail of Zakiur Rehman Lakhvi the main accused in the Mumbai terror attack
case on April 10, 2015 was viewed with serious concern in India. India conveyed its
outrage to Pakistan at the release of Lakhvi. It was reiterated to Pakistan that this goes
against Pakistan's professed commitment to combat terrorism, including its recently
stated policy of not differentiating amongst terrorists. It was conveyed to Pakistan that if
such a person, who is also a designated international terrorist by the United Nations, is
released it will pose a threat that cannot be ignored.
The trial of seven persons in an Anti Terrorism Court (ATC) for their involvement in the
2008 Mumbai terror attacks has however proceeded very slowly. The trial has been
subject to repeated adjournments, non-appearances of lawyers, and other delays. A
Pakistan Judicial Commission undertook its second visit to India in September 2013 and
cross-examined key prosecution witnesses. The Government of Pakistan has conveyed
from time to time that effective action on bringing the perpetrators of the Mumbai attacks
to book was Pakistan’s intention and it was committed to the case being taken to its
logical conclusion. At the meeting of Prime Ministers of Pakistan and India on July 10,
2015 on the sidelines of the SCO Summit in Ufa, both sides agreed to discuss ways and
means to expedite the Mumbai case trial, including additional information like providing
52

voice samples. In this regard, Foreign Secretary S. Jaishankar wrote a letter to Pakistani
Foreign Secretary Aizaz Ahmad Chaudhury, in September 2016, offering to provide any
further assistance required by Pakistan for expeditiously concluding the Mumbai case
trial. Response from Pakistan in this regard is awaited.
TRADE AND ECONOMIC RELATIONS

India-Pakistan bilateral trade in 2013-14 touched a peak of US$ 2.7 billion, before
dropping marginally to US$ 2.35 billion in 2014-15. The bilateral trade showed a slight
increase in 2015-16 to US$ 2.61. Bilateral trade witnessed a slight drop in 2016- 17 to
US$ 2.28 billion, with exports from India at $1.83 billion and imports from Pakistan to
India at $456.33 million. The imports from Pakistan have shown a gradual declining
trend since 2012-13, when it touched US$ 541.87 billion. Main items of export from
India to Pakistan are: cotton, organic chemicals, machinery, food products including
prepared animal fodder, vegetables, plastic articles, man-made filament, coffee, tea and
spices, dyes, oil seeds and olea, etc. Main items of import by India from Pakistan are:
copper and copper articles, fruits and nuts, cotton, salt, sulphur and earths and stones,
organic chemicals, mineral fuels, rubber plastic products, wool, etc.
MOST FAVOURED NATION [MFN] STATUS

India had accorded MFN status to Pakistan in 1996. A Pakistan cabinet decision of
November 02, 2011 to reciprocate remains unimplemented. Pakistan, however,
substituted in March 2012 a 'positive list' of a little more than 1950 tariff lines, permitted
for import from India, by a 'Negative List' of 1209 lines that cannot be imported from
India.
In August 2012, India announced reduction of 30% in its SAFTA Sensitive List for non-
Least Developed Countries of SAFTA [including Pakistan], bringing down tariff on 264
items to 5% within a period of three years. This measure benefited Pakistan's exports to
India in sectors of key interest to Pakistan.
During the Commerce Secretary-level talks September 20-21, 2012 in Islamabad, a

roadmap was established to move forward for full normalization of bilateral trade.
However, in the absence of Pakistan implementing its decision of the first step of the road
map, viz., permitting all importable items through Wagah/ Attari land route (as against
current only 137), the roadmap has remained unimplemented.
53

In their meeting in New Delhi on January 18, 2014, Commerce Ministers of India and
Pakistan reaffirmed the commitment to expedite establishment of normal trading relations
and in this context to provide Non-Discriminatory Market Access (NDMA), on a
reciprocal basis. They decided to intensify and accelerate the process of trade
normalisation, liberalization and facilitation and to implement the agreed measures before
the end of February 2014. Implementation of these steps [inter alia removal of 'Negative
List' and removal of restrictions on the number of importable items via Wagah land
route] by Government of Pakistan is awaited and it has not responded to the letter of the
Commerce Secretary, Government of India, dated January 24, 2014 to confirm the
understanding reached.
HUMANITARIAN ISSUES
A joint 'Judicial Committee on Prisoners' comprising retired Judges from the higher
judiciary of both countries looks into humanitarian issues related to prisoners and
fishermen in each other's jails, which it visits alternating twice a year. The last visit to
India was in October 2013. The Committee's recommendations on better consular access,
expeditious trial, provision of legal aid, humanitarian treatment, early repatriation after
completion of sentences, and repatriation of fishermen along with their boats, are
examined for implementation by both the Governments. As a result of constant efforts by
the Government, release of over to 3,200 Indian fishermen and 122 civil prisoners has
been secured from Pakistani prisons since 2008. On 26 May 2014, just prior to the visit of
Prime Minister Mr. Nawaz Sharif to India, Government of Pakistan released 150 Indian
fishermen and one prisoner, and also announced the release of 57 boats, which were
eventually released in March 2015. In 2016, Pakistan released two Indian civil prisoners
and 410 Indian fishermen and in 2017 until August, five Indian civil prisoners and 295
Indian fishermen. India has released 48 Pakistani nationals, including 18 fishermen and
30 civil prisoners in 2017 until August.
At present, 416 fishermen and 51 other civil prisoners believed-to-be Indian nationals are
in the custody of Pakistani authorities. Some of them have completed their sentences and
await release. The matter of reported auction of confiscated fishing boats of apprehended
Indian fishermen has been taken up with concerned Pakistani authorities from time to
time. A delegation of fishermen’s representatives and officials from the State of Gujarat
visited Karachi in March 2015 for the release of 57 such boats out of over 800 taken in
custody by Pakistani authorities over the years.
54

INDIA
AND
SRI
LANKA
 POLITIC
AL
RELATI
ON
 COMME
RCIAL
REALTI
ON
 DEVELO
PMENT
COOPER
ATION
 CULTUR
AL
RELATI
ON
 FISHER
MAN
55
ISSUE

INDIA AND ITS RELATIONS WITH SRI LANKA

The relationship between India and Sri Lanka is more than 2,500 years old. Both
countries have a legacy of intellectual, cultural, religious and linguistic interaction. In
recent years, the relationship has been marked by close contacts at all levels. Trade and
investment have grown and there is cooperation in the fields of development, education,
culture and defence. Both countries share a broad understanding on major issues of
international interest. In recent years, significant progress in implementation of
developmental assistance projects for Internally Displaced Persons (IDPs) and
disadvantaged sections of the population in Sri Lanka has helped further cement the
bonds of friendship between the two countries.
The nearly three-decade long armed conflict between Sri Lankan forces and the LTTE
came to an end in May 2009. During the course of the conflict, India supported the right
of the Government of Sri Lanka to act against terrorist forces. At the same time, it
conveyed its deep concern at the plight of the mostly Tamil civilian population,
emphasizing that their rights and welfare should not get enmeshed in hostilities against
the LTTE.
The need for national reconciliation through a political settlement of the ethnic issue has
been reiterated by India at the highest levels. India's consistent position is in favour of a
negotiated political settlement, which is acceptable to all communities within the
framework of a united Sri Lanka and which is consistent with democracy, pluralism and
respect for human rights.
POLITICAL RELATIONS
President Maithripala Sirisena was elected as the new President of Sri Lanka in the
presidential election held on 8 January, 2015. He succeeded former President Mahinda
Rajapaksa. Following parliamentary elections on 17 August 2015, Mr. Ranil
Wickremesinghe was reappointed as the Prime Minister by President Sirisena on 21
August 2015.
Political relations between the two countries have been marked by high-level exchanges
of visits at regular intervals.
56
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President Sirisena visited India on a four-day visit starting 15 February 2015. President
Sirisena visited India on 13-14 May 2016 on a working visit. During the visit, he visited
New Delhi, Ujjain and Sanchi. President Sirisena travelled to India on 19-21 August
2016 on a private visit. President Sirisena travelled to India on 15-17 October 2016 to
attend the BRICSBIMSTEC Outreach Summit. President Sirisena traveled to India on 6-
7 November 2016 to attend Seventh Session of the Conference of Parties (COP7) to
World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC)
in New Delhi. Prime Minister Ranil Wickremesinghe visited India in September 2015,
his first overseas visit after being appointed as Prime Minister. President Sirisena and
Prime Minister Shri Narendra Modi also met on the margins of 70th session of UNGA in
New York in September 2015 and at the COP21 meeting in Paris in November 2015.
Prime Minister Wickremesinghe travelled to India on 4-6 October 2016 for the India
Economic Summit. He again paid a working visit to India from 25-29 April, 2017 and an
MOU on cooperation in economic projects was signed during the visit. There are regular
Ministerial visits from Sri Lanka to India taken place. Few are listed below; Foreign
Minister Mangala Samaraweera visited New Delhi in January 2015 on his first overseas
official visit. Speaker Karu Jayasuriya visited India to participate in the 5th International
Buddhist conclave in New Delhi on 02 October 2016. He also visited for the South Asian
Speakers Summit on Achieving the Sustainable Development Goals organized by the
Parliament of India and Inter-Parliamentary Union in Indore on 18-20 February, 2017.
Former Foreign Minister Ravi Karunanayake visited India as it first overseas visit on 6-7
June 2017. Newly appointed Foreign Minister Tilak Marapana visited India from 8-10
September 2017. This is his first overseas official visit after assuming charge.
Prime Minister Shri Narendra Modi visited Sri Lanka on 13-14 March, 2015. He
travelled to Anuradhapura, Talaimannar, and Jaffna. Prime Minister Shri Narendra Modi
again visited Sri Lanka on 11-12 May 2017 as a Chief Guest to attend the International
Day of Vesak celebrations in Sri Lanka. During the visit, he inaugurated Dickoya
hospital, addressed a gathering in Norwood’s ground and took blessings at Sri Dalada
Maligawa temple in Kandy. Smt. Sumithra Mahajan, Speaker of Lok Sabha visited Sri
Lanka from 02-07 October 2017 to attend a special parliamentary Session in celebration
of 70th Anniversary of the establishment of Parliament of Sri Lanka on 03 October 2017
and to attend 8th Conference of the Association of SAARC Speakers and
Parliamentarians held in Colombo from 04-06 October 2017. External Affairs Minister
Smt. Sushma Swaraj led an inter-ministerial delegation to Colombo from 5-6 February
57

2016 for the 9th Session of the India-Sri Lanka Joint Commission. Earlier, External
Affairs Minister Smt. Sushma Swaraj was in Colombo on 6-7 March 2015 to prepare for
Prime Minister’s visit. Smt. Sushma Swaraj led a 12-member Parliamentary delegation to
Sri Lanka in April 2012 as the then Leader of Opposition in the Lok Sabha. EAM visited
31 August-01 September 2017 to attend the second Indian Ocean Conference organized
in Colombo. Commerce and Industry Minister Smt. Nirmala Sitharaman visited Sri
Lanka on 26-27 September 2016. Minister of State for External Affairs Gen. V. K. Singh
(Retd) visited Colombo from 24-26 August 2016 to participate in the fifth Ministerial
Meeting of the Colombo Process. Foreign Secretary Dr. S. Jaishankar visited Sri Lanka
from 12-13 January 2016, for bilateral discussions with Sri Lankan leaders. Dr. S.
Jaishankar, accompanied by a business delegation visited Sri Lanka from 22-24 October
2016. Foreign Secretary again visited Sri Lanka from 18-20 February 2017, 04-06 April
2017 and 31 August- 01 September 2017.
On 18 June 2016 Prime Minister and President Maithripala Sirisena, through video
conferencing from New Delhi, jointly inaugurated the newly renovated Duraiappah
Stadium in Jaffna. A mega yoga event at Duraiappah Stadium launched the week long
yoga celebrations for 2016 in Sri Lanka. The event was a performance of 'Surya
Namaskar’ by almost 11000 school children. On 28 July, Prime Minister delivered a
video message at a ceremony to launch Emergency Ambulance Service in Colombo, set
up with Indian financial assistance. Prime Minister Wickremesinghe launched the
services in Colombo. Chief Minister of Andhra Pradesh Shri N. Chandrababu Naidu
participated in the Second Anniversary celebrations of the President of Sri Lanka during
7-8 January 2017. On 05 May 2017, President Sirisena joined other leaders from SAARC
countries through the video conferencing after the launch of SAARC satellite, which is
gifted by India to SAARC countries.
COMMERCIAL RELATIONS
Sri Lanka has long been a priority destination for direct investment from India. Sri Lanka
is one of India’s largest trading partner in SAARC. India in turn is Sri Lanka’s largest
trade partner globally. Trade between the two countries grew particularly rapidly after the
entry into force of the India-Sri Lanka Free Trade Agreement in March 2000. According
to Sri Lankan Customs, bilateral trade in 2016 amounted to US $ 4.38 billion. Exports
from India to Sri Lanka in 2016 were US$ 3.83 billion, while exports from Sri Lanka to
India were US$ 551 million.
58

India is among the top four investors in Sri Lanka with cumulative investments of over
US$ 1 billion since 2003. The investments are in diverse areas including petroleum retail,
IT, financial services, real estate, telecommunication, hospitality & tourism, banking and
food processing (tea & fruit juices), metal industries, tires, cement, glass manufacturing,
and infrastructure development (railway, power, water supply).
A number of new investments from Indian companies are in the pipeline or under
implementation. Notable among them are proposals of South City, Kolkota for real estate
development in Colombo (US $ 400 million), Tata Housing Slave Island Development
project along with Urban Development Authority of Sri Lanka (US $ 430 million), and
‘Colombo One’ project of ITC Ltd. (ITC has committed an investment of US$ 300
million, augmenting the earlier committed US 140 million). Dabur has set up a fruit juice
manufacturing plant (US$ 17 million) in May 2013.
On the other hand, the last few years have also witnessed an increasing trend of Sri
Lankan investments into India. Significant examples include Brandix (about US$ 1
billion to set up a garment city in Vishakapatnam), MAS holdings, John Keels, Hayleys,
and Aitken Spence (Hotels), apart from other investments in the freight servicing and
logistics sector.
DEVELOPMENTAL COOPERATION
The conclusion of the armed conflict saw the emergence of a major humanitarian
challenge, with nearly 300,000 Tamil civilians housed in camps for Internally Displaced
Persons (IDPs). The Government of India put in place a robust programme of assistance
to help the IDPs return to normal life as quickly as possible.
The main impetus for stepping up of India’s development assistance flowed from the
commitments made during the visit of President of Sri Lanka to India during June 2010.
This included construction of 50,000 housing units, rehabilitation of the Northern
Railway lines, wreck-removal and rehabilitation of the KKS Harbour, establishment of
Vocational Training Centres, construction of a Cultural Centre at Jaffna, restoration of
Thiruketheeswaram Temple, establishing an Agricultural Research Institute in the
Northern Province, expanding the scholarship program for Sri Lankan students to pursue
their higher studies in India, setting up Centres for English Language Training and
providing technical assistance for the National Action Plan for a Trilingual Sri Lanka.
59

The Housing Project, with an overall commitment of over INR 1372 crore in grants, is
the flagship project of Government of India’s assistance to Sri Lanka. The first stage of
construction of 1,000 houses in the Northern Province was completed in July 2012. The
second phase of constructing or repairing 45000 houses in the Northern and Eastern
Provinces is being implemented. This phase was launched on 2 October 2012 and has
made excellent progress. As on today, around 45,500 houses have been completed. The
third phase, to construct 4,000 houses in the Central and Uva Provinces through an
innovative community-driven approach, was launched in April 2016. During the PM visit
to Norwood on 12 May 2017, 10,000 more houses to the upcountry area has been
announced.
Sri Lanka is one of the major recipients of development credit given by the Government
of India, with total commitment of around US$2.63 billion, including US$ 458 million as
grants. Under a line of credit of $167.4 million, the tsunami-damaged Colombo-Matara
rail link has been repaired and upgraded. Another line of credit of $800 million for track
laying and supply of rolling stock to support construction railway lines in Northern Sri
Lanka is already operational. In October 2014 the Pallai-Jaffna reconstructed railway
track and signal system was inaugurated thereby reconnecting Jaffna to Colombo by rail.
Emergency Ambulance Service was launched in Sri Lanka on 28th July 2016 under
Indian Grant Assistance of US $ 7.55 million. The project involves deployment of 88
ambulances Western and Southern provinces, setting up of an Emergency Response
Center and first year of operations. During the PM visit to Sri Lanka from 11-12 May
2017, the free ambulance service under grants was extended to all the other provinces.
Export-Import Bank of India (EXIM Bank) on 8 March 2016 signed Buyer’s Credit
Agreements, under National Export Insurance Account (BC-NEIA), amounting to US$
403.01 million with National Water Supply and Drainage Board (NWSDB) of Sri Lanka
in Colombo, for financing three water supply projects. Under the Buyer’s Credit
portfolio, EXIM Bank has already extended credit amounting to nearly US$ 185 million
to Sri Lanka for water supply and other projects.
India also continues to assist a large number of smaller development projects in areas like
education, health, transport connectivity, small and medium enterprise development and
training in many parts of the country through its grant funding. To mitigate the recent
drought in Sri Lanka, India has donated 08 lorry mounted water bowsers to Sri Lanka on
21 March 2017 as well as 100 metric tons of rice in May 2017. During the devastation of
60

floods in the end of May 2017, India has responded immediately by sending three ships
with relief materials including food supplies, water, inflatable boats, diving team and
medical teams for flood relief efforts.
CULTURAL RELATIONS
The Cultural Cooperation Agreement signed by the Government of India and the
Government of Sri Lanka on 29 November, 1977 at New Delhi forms the basis for
periodic Cultural Exchange Programmes between the two countries. The Indian Cultural
Centre in Colombo actively promotes awareness of Indian culture by offering classes in
Indian music, dance, Hindi and Yoga. On 21 June 2015 the First International Day of
Yoga was celebrated at the iconic ocean side promenade Galle Face Green. The event
was attended by two thousand yoga enthusiasts. In 2016, a similar event was organized at
Mahavihara Devi Park to celebrate International Day of Yoga. Celebrations of the 3rd
International Day of Yoga has already started in Sri Lanka by way of curtain raiser event
and various road shows in different cities of Sri Lanka. Every year, cultural troupes from
both countries exchange visits. Pursuant to an announcement made by the Prime Minister
during his visit to Sri Lanka, a Festival of India in Sri Lanka was launched in November
2015, with ‘Nrityarupa’, a scintillating dance medley from different parts of India
performed in Colombo, Kandy and Galle. The theme of the Festival is "Sangam": a
confluence of cultures of India and Sri Lanka.
India and Sri Lanka commemorated the 2600th year of the attainment of enlightenment
by Lord Buddha (Sambuddhatva Jayanthi) through joint activities. These included the
exposition of Sacred Kapilavastu Relics in Sri Lanka that took place in August -
September 2012. During the exposition, approximately three million Sri Lankans (nearly
15 percent of the total population of Sri Lanka) paid homage to the Sacred Relics. The
Indian Gallery at the International Buddhist Museum, Sri Dalada Maligawa, was
inaugurated in December 2013. The two Governments jointly celebrated the 150th
Anniversary of Anagarika Dharmapala in 2014. Prime Minister during his visit to Kandy
on 12 May 2017, unveiled dance Academy foundation stone.
The India-Sri Lanka Foundation, set up in December 1998 as an intergovernmental

initiative, also aims towards enhancement of scientific, technical, educational and cultural
cooperation through civil society exchanges and enhancing contact between the younger
generations of the two countries.
61

Education is an important area of cooperation. India now offers about 290 scholarship
slots annually to Sri Lankan students. In addition, under the Indian Technical and
Economic Cooperation Scheme and the Colombo Plan, India offers 370 slots annually to
Sri Lankan nationals.
Tourism also forms an important link between India and Sri Lanka. Government of India
formally launched the e-Tourist Visa (eTV) scheme for Sri Lankan tourists on 14 April
2015. Subsequently, in a goodwill gesture, the visa fee for eTV was sharply reduced. In
2016, of the 2 million total tourist arrivals to Sri Lanka, 357,000 were from India
constituting 14% of the total number of tourist arrival to Sri Lanka. Sri Lankan tourists
too are among the top ten sources for the Indian tourism market. In 2016, around 215,000
visas were issued by the High Commission and other posts in Sri Lanka to facilitate
travel between Indian and Sri Lanka.
FISHERMEN ISSUE
Given the proximity of the territorial waters of both countries, especially in the Palk
Straits and the Gulf of Mannar, incidents of straying of fishermen are common. Both
countries have agreed on certain practical arrangements to deal with the issue of bona
fide fishermen of either side crossing the International Maritime Boundary Line. Through
these arrangements, it has been possible to deal with the issue of detention of fishermen
in a humane manner. India and Sri Lanka have agreed to set up a Joint Working Group
(JWG) on Fisheries between the Ministry of Agriculture and Farmers Welfare of India
and Ministry of Fisheries and Aquatic Resources Development of Sri Lanka as the
mechanism to help find a permanent solution to the fishermen issue and first meeting
took place in December 2016 in New Delhi and second meeting in Colombo on April 07,
2017. Minister of Agriculture and Farmers Welfare Shri Radha Mohan Singh visited
Colombo on 2 January 2017 to participate in the Ministerial Meeting on Fishermen issue.
The second meeting of the JWG was held during April 2017 in Colombo. The next round
of Ministerial-level talks and JWG meetings were held during October 2017 at New
Delhi.
62

CONCL
USION
63

CONCLUSION
The regional integration literature suggests the pacifying effects of economic
cooperation. South Asia’s challenge is the security deficit in the region stemming
primarily from the unresolved Kashmir issue between India and Pakistan. In many ways,
Kashmir is at the center of national identity definitions of both countries— India as a
secular state and Pakistan as a state for the Muslim “nation.” SAARC was formed in
hopes that functional cooperation could be initiated despite the deep structural
insecurities underlying many dyadic relations in South Asia and that such cooperation
would pave the way for a restorative dialogue on contentious security issues. However,
progress has been glacial because the Indo-Pakistan security conundrum has resisted
solution. Small steps toward cooperation have thus not been followed by collaborative
leaps because of the obduracy of mindsets.
For meaningful change to occur in the South Asian region, mindsets have to change. For
mindsets to change, national identity issues have to be resolved in such a way as to allow
pluralism—religious, ethnic, and tribal—to flourish. India, for instance, needs to address
communal (primarily Hindu-Muslim) and tribal grievances that have fed insurgencies in
Kashmir and in the northeastern and central states (Maoist) of the Indian federal union.
Pakistan’s challenge is even greater. A focus on its Muslim identity qua national identity
has compromised the state-building process since independence in 1947, 9 allowing the
Pakistani Army to emerge as the only stable institution in the country. An anti-India
ethos, which has been the sine qua non of the Army’s raison d’être, has frustrated
repeated political attempts to reach an agreement over Kashmir. The Pakistan Army has
aided and abetted an ongoing insurgency in Kashmir since the 1980s. Adding to threats
that are fueled by ethnic and economic grievances, such as the Baluchi insurgency, the
state now battles a homegrown insurgency led by the Pakistani Taliban that seeks to
create a shari’a-based polity. The Army through its intelligence agency, the ISI, has
sought to fight the Pakistani Taliban while supporting militant Islamic groups that fight
India and Afghanistan. This strategy, by fomenting sectarian violence in Pakistan itself,
has the potential to further weaken state institutions in a country that is a rentier state
relying heavily on economic aid from the United States to fund the Exchequer. Only a
fundamental re-direction of strategy and policy supported by the Pakistan Army is likely
to change the current trajectory in a country where elected civilian governments have
been unable to move policy forward without the blessing of the military leadership.
64

India’s relations with the other countries of South Asia are less fraught, although not
without friction. Modi’s decision to make Thimpu, Bhutan the destination of his first
foreign visit sent a strong message of hope and renewal: As a first step, India, the
region’s dominant state, it seemed to suggest, was going to repair relations with countries
in its immediate neighborhood. Were Modi to revive India’s GDP growth rates to levels
reached in the first half of the 2000s, New Delhi may be able to convince other South
Asian countries to harness their train to India’s economic engine. If India can become a
net provider of public goods and work assiduously to resolve issues that are amenable to
political solutions (such as a water sharing agreement and the swapping of enclaves with
Bangladesh; non-reciprocal economic arrangements with Nepal, Bhutan, and the
Maldives; and building on strong economic links with Sri Lanka to come to a mutually
satisfactory modus vivendi on the issue of Tamil minorities), New Delhi will be in a
stronger position to persuade Islamabad that it is in Pakistan’s best interests to move
toward a political resolution on the Kashmir issue.
In South Asia, functional cooperation has to be complemented with attentive shepherding

of policy designed to ameliorate security-driven concerns. A two-track process wherein
non-security cooperation goes hand in hand with a political dialogue on security matters
is the only way to revive a stalled regional integration process.
65

BIBLIOGRAPHY
1. www.mea.gov.in
2. saarc-sec.org
3. asiancenturyinstitue.com
4. thedollarbussiness.com
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INDIA AND ITS RELATION

WITH SAARC COUNTRIES

INDIA AND ITS RELATION

Can a region defined by a post-colonial legacy of decades of hostility and suspicion

SAARC: GENESIS AND DEVELOPMENT

Pakistan, an intra-regional power, is a country whose history is closely intertwined with

CHINA’S SOUTH ASIAN PRESENCE

THE CHINA-PAKISTAN NEXUS

THE FORMATION OF SAARC

Broadly speaking, the objectives are:

2. Increasing the pace of economic growth;

3. Giving mutual assistance and cooperation in areas like agriculture, scientific

4. Promoting social progress and cultural development.

IMPORTANT FOR INDIA TO

WHY IT IS IMPORTANT FOR INDIA TO MAINTAIN GOOD

India have some economical and political benefits from SAARC:

much higher compared to India’s exports to EU countries which is growing at an

SAARC AND INDIA’S EVOLVING SELF-IMAGE

of a strategic partnership in 2004. Until the September 2001 Al Qaeda-sponsored terrorist

INDIA AND ITS RELATION WITH AFGHANISTAN

India-Afghanistan relationship is characterized by regular high-level exchanges. Our

During the meeting, three major documents were exchanged;

(b) Memorandum of Understanding between the National Medicine and Healthcare

The prominent Indian companies doing businesses in Afghanistan are:

(1) KEC – Electrical Transmission Lines

(2) Phoenix – Consultancy in Electrical Transmission

(3) AIPL – Establishment of Hydro Power Project in Hilmand Province

(4) APTECH – Computer & Management Education

(5) GAMMON INDIA – Power Transmission Line & Power Sub-stations

(6) KPTL – Power Transmission Line

(7) ANAAR GROUP (AIR INDIA GSA)

(8) Spice Jet

AFGHAN CULTURE RELATIONS

On December 2018, ‘Awayee Band-e-Amir’ - a folk musical troupe from Bamiyan

INDIAN DIASPORA IN AFGHANISTAN

INDIA AND BANGLADESH

INDIA AND ITS RELATIONS WITH BANGLADESH

HIGH LEVEL VISITS AND EXCHANGES

On 31 December 2018, Prime Minister Modi congratulated Bangladesh Prime Minister

BILATERAL INSTITUTIONAL MECHANISMS

SECURITY & BORDER MANAGEMENT

A number of security related agreements (Mutual Legal Assistance in Criminal Matters;

SHARING OF RIVER WATERS

BILATERAL TRADE AND INVESTMENT

Total Indian investment proposals in Bangladesh registered with the Bangladesh

POWER AND ENERGY SECTOR COOPERATION

TRAINING AND CAPACITY-BUILDING

Indian community in Bangladesh

About 10,000 strong Indian community is estimated to be living in Bangladesh. Most of

INDIA AND ITS RELATIONS WITH BHUTAN

HIGH LEVEL VISITS

reassurance of continue support for Bhutan’s socio-economic development in the XII

EDUCATIONAL AND CULTURAL COOPERATION

UNDER GRADUATE SCHOLARSHIPS

NEHRU – WANGCHUCK CULTURAL CENTRE

INDIA AND ITS REALTIONS WITH MALDIVES

CAPACITY BUILDING AND TRAINING

 SAARC Chair Fellowship

 ITEC training & scholarships