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I am most profoundly grateful to my teacher Assis. Professor Dr. Monika Srivastava for providing me this

wonderful opportunity to work upon this project after doing which we feel to have enlightened ourselves in

this regard and for her precious time she spent guiding us for the completion of this project.

I also thank the library staff for their cooperation in making books and magazines available and allowing us

to access the internet even during their free time and whenever we required to do so.

Last but not the least I would also like to thank my friends. It was only because of their excellent help that I

have been able to complete my project.


ENROLLMENT NO. 180101086


 INTRODUCTION………………………………….pg 4


GOVERNMENT………………………………… 4-10

 NUCLEAR WEAPON…………………………….pg 11-13

 INDIA- US RELATIONSHIP…………………….pg 14



 CONCLUSION………………………………………pg 19

 BIBLIOGRAPHY…………………………………….pg 20


The Narendra Modi wave rode to the seat of power in the summer of 2014. Winning absolute
majority and representing over a billion dreams, Narendra Modi achieved his dream of
becoming India’s PM and has been an unstoppable force ever since. From stalled projects to
foreign policy building to launching welfare schemes and reviving the economy, Modi and his
government have been hard at work fulfilling peoples’ expectations. Here are some major
changes that the Modi-led government at the Centre has achieved since coming to power.

2-Changes and developments made by modi government

1) Launched Jan Dhan Yojana That Brought Crores To India’s Banking System

Jan Dhan Yojana, the Prime Minister’s plan to include millions of citizens into the banking
system, has met with resounding success. More than 75 million accounts have been opened so
far under the scheme that envisages at least one basic banking account in every household that
will also give credit, insurance and pension facility to the account holders. The success of the
scheme can be gauged from the fact that two states, viz., Kerala and Goa as well as Chandigarh,
Puducherry and Lakshadweep have achieved 100 per cent financial inclusion. Jan Dhan Yojana
was announced by Narendra Modi in his Independence Day speech early this year.

The program aims at creation of bank accounts with a 5000 Rs overdraft facility, a RuPay debit
card and an insurance cover of 1 lacs. The scheme triggered opening of 1.5 crores bank accounts
on the first day itself. This is a mega financial inclusion plan. Easier loans, lesser circulation of
black money. India has 35% people with a bank account, lowest among the BRICS, as compared
to 87% of the US and 95% of Canada.

2) Juvenile Justice Act Was Reframed To Punish 16-Year-Olds

The Union Cabinet has approved amendments to the Juvenile Justice Act that will treat minors
above 16 years as adults for heinous crimes like rape, acid attack and murder. This is an
important Bill that comes in the wake of the 2012 Delhi gang rape case. To protect the interests
of juveniles, the Bill also makes it clear that no juvenile can be given the death penalty or
sentenced to life imprisonment. The last time this Act was overhauled was in 2000.

3) Planning Commission Has Been Junked Along With Goms And Egoms

India’s 12th Five-Year plan, as commissioned by the Planning Commission, will not live to see
the light of 2017 when it was supposed to end. Instead, Narendra Modi scrapped the Soviet-era
government scheme and invited citizens to shape the future of the country, no doubt adding more
admirers to his flock with the bold and innovative move. The government might replace the
Planning Commission with a bevy of economic advisors along the lines of US thinktanks. Nine
empowered groups of ministers (EGoMs) and 21 groups of ministers (GoMs) that were in
operation because of coalition politics have also been disbanded under Modi’s rule to allow
ministers to take faster decisions and add accountability to their actions.

Abandoning Planning Commission: The PC is a thing of past, maybe good back then in 1950 but
today it was just a body to sit up on issues and make hollow plans. A body with more powers,
more brains and diversity and lesser interference is needed in this era of importance of strategy
and careful progressive planning. If you consider yourself as a part of the society this will help
you too in the long run.

4) Lean Ministry That Prefers Austerity

Fewer ministers in the cabinet means lesser travel expenses for the exchequer. However, going
one step further, the government has banned first-class travel for its ministers, cut down on five
star seminars and they have to get clearance from the Prime Minister’s Office before going for
foreign tours. The Finance Ministry has a target of reducing non-planned expenditure by 10 per
cent through effective use of these austerity measures. Ministers and bureaucrats have been
adviced to report at 9 AM, a thought hitherto unthinkable. Bureaucrats have been asked to
function as Civil Sevants and not as the Queen of the Democracy. This is the single most step
that will affect India as a whole. If implemented in letter and spirit, this will remove inefficiency
and lack of will among the policy makers and implementors.

5) Recognising Power Of Neighbours Like Nepal And Bhutan

Having good relations with your neighbours is a must for any country. Especially when there is
another country (read China) trying to do the same to your neighbours as well. Thus, Modi’s visit
to Nepal – the first by an Indian PM in 17 years – and his subsequent visit to Bhutan are foreign
policy masterstrokes designed to help India increase its soft power in its neighbourhood.

6) Developing Deep Relations With Japan And Bonhomie With China

At the same time, in keeping with Modi’s Look East philosophy, he won the hearts of Japan and
pushed his agenda of bringing in high-speed trains to India using Japanese technology and
finances. And when Chinese President Xi Jinping came visiting, Modi spoke of peace and
progress even as border skirmishes between the two countries threatened the two leaders’
dialogue. Modi restrained himself well and won favorable reviews from the Chinese party.

7) Standing Up To Pakistan’s Bullying

On the other hand, the Modi Government has taken a firm stand against Pakistan’s continued
attacks on the border. Perhaps for the first time, an Indian government has decided not stay silent
on insurgency as well as rebuff pressure from Kashmiri separatists. Then defence minister Arun
Jaitley had emphatically stated that as long as ceasefire violations continue, India will have no
dialogue with Pakistan.

8) Recognizing The Potential Of North East India

The Modi wave had spread to India’s North East during Elections 2014 and the region’s faith
was rewarded with more than an outlay of over Rs 50,000 crore in Budget 2014. A new sports
university, a new channel called Arun Prabha and an annual festival celebrating the diversity of
India’s North East has also been mooted. More importantly, however, good roads and railways
will now be constructed to improve the region’s connectivity to India and ward off threats from

9) Launch of Make In India Scheme

Make In India is a major new national program started by Narendra Modi that is designed to
facilitate investment and innovation in the country as well as add jobs by establishing industries.
There is also talk of reforming India’s labour laws to allow for investment in the country. The
international campaign has already caught the attention of many industries across the world.
There's no denying that India, a country with demand, demographic dividends and
democracy lagging in 134th place in the Ease of doing business Index is a heartbreaking
scenario. To raise the standard of living, to make our country a major hub for industries and to
embrace progress leaving behind our leftist leanings for good this is the right step ahead. There
will be professional training in important sectors, more employment opportunities and the
business houses will adopt a city to help in the creation of 100 smart cities.

10) Swachh Bharat Abhiyan Campaign That Went Viral

Swachh Bharat Abhiyan is a nationwide campaign to clean the country of its rubbish and dump.
It was launched on October 2 this year by Modi himself at Rajghat. Swachh Bharat Abhiyan is
India’s biggest cleanliness drive and with Modi using his Twitter profile to nominate celebrities
and famous people to take part in the initiative, the campaign has already created its intended

11) Getting Its Way With The WTO For Food Security

To ensure that the Food Security Bill does not clash with international policies, India has held up
talks with the World Trade Organisation, much to the chagrin of world leaders. However, in a
major victory for India, that deadlock has now cleared with India holding firm on its stand to
support its farmers.

12) Stable Government That Is Unafraid Of Reforms

From selling stake in ailing public sector companies to increasing limits on FDI in other sectors
and bringing in much-needed laws that ease common man’s life, Narendra Modi’s government is
keen to transform the face of the country after winning absolute majority in Parliament. With no
need for coalition partners, Modi’s BJP-led government can focus on creating change that the
country needs.

13) Focus On Economic Reforms And Policy Implementation

Modi’s government has identified infrastructure and defence as its immediate core concerns. On
the defence front, there is already talk of trying to turn the country into an exporter of arms rather
than inflate the exchequer with huge import bills. As for infrastructure, the Modi government has
already initiated work for high-speed trains and creating a Diamond Quadrilateral rail corridor
connecting the major metros. It has also begun work on cleaning the Ganga river and Modi’s 100
smart cities project.

14) Digitising The Country

Narendra Modi’s penchant for technology is well-known. Combine that with the IT revolution
and the huge number of youth employed in the sector, it should come as no surprise that Modi is
now looking beyond by talking about broadband connectivity in villages, mobile governance and

a network of telemedicine in rural areas. Little wonder that even Mark Zuckerberg couldn’t resist
stopping by to meet Modi on his recent visit.

15) Tourism Boost To Add Jobs And Help Increase Foreign Exchange

The country’s tourism sector is set to experience a major shift as more and more tourists have
begun considering the country as a vacation destination after the government overhauls its visa
system and introduces visa-on-arrival for all major countries. This is likely to spur more jobs in
the tourism sector as well as bring in some much-needed foreign exchange into the country.

16) Capturing The Diaspora And World’s Attention

We don’t have to tell you how Modi left the US and Australia charmed with his speeches in
Madison Square Garden and Sydney’s Allphones Arena. Modi vowed to keep pushing for
change in India so that the country takes a turn for the better and drives more growth and
opportunities for its citizens.

17) Ending Open Defecation By Building Toilets

In 2010, the UN released statistics that were shocking—more people had access to a mobile
phone in India than a toilet. India’s massive drive to address toilet infrastructure, and Prime
Minister Narendra Modi’s commitment to ending the practice of open defecation is admirable.
Modi has launched a massive drive to build 111 million toilets in the next five years at an
incredible rate of one toilet per second!

18) Changes to the APMC Act

The govt. asked the state govt. to delist fruits and vegetables from the Agriculture Produce
Marketing Committee Act to eliminate middlemen, prevent hoarding and check inflation.
Although a small step, but in line with your question.

19) Defence

 The President's visit to Vietnam resulted in India extending $ 100m export credit for
defence deals.
 Talks with China resulted in discussions on boundary situation, LAC and assurances to find
a solution with mutual consent to reduce the hostilities between the rising neighbours.
 Defence Cooperation Agreement with the US extended by 10 years. FDI cap raised to 49%.

 The PM visits border more often, meets the chiefs regularly and instils pride and a new-
found confidence in the army men and people alike, deterring and ridiculing the enemy at
the same time.

It is unfortunate that our neighbour’s attitude. They have lost the power to fight a war but they
use proxy war. There has been a process of killing innocent people through this proxy war. How
many innocents are being killed? The number of people getting killed through the bullets of
cowards is more than those killed in conventional wars.

20) Energy

India is a power hungry nation. In order to be developed we have to grow at a rate of more than
10% for the next 30 years or more anyhow. We need energy for it. We are already importing
large amounts of coal. Solar and wind alternatives are too expensive and may be a great deal in
the future but now now.

 A deal with Australia has been struck to satisfy our hunger for more fuel.
 Talks with Japan have advanced to the final levels. China and the US have agreed to
cooperate with civil nuclear deals.Hydroelectric project agreement has been agreed
with Bhutan, that will also assist in flood control and irrigation

21) Modi’s Worrying Pakistan Policy

Indian Prime Minister Narendra Modi has yet to craft a coherent policy on Pakistan. He was
outspoken incriticizing the government of his predecessor Manmohan Singh for being soft on
Pakistan, but tempered his rhetoric after coming to power, inviting Pakistani Prime Minister
Nawaz Sharif to his inauguration ceremony, before using a pretext to cancel talks. Recognizing
that disengagement with Pakistan creates more problems for India, Modi allowed a resumption
of talks at the secretary level in March 2015. Modi and Sharif themselves met on the side lines of
the Shanghai Cooperation Organization (SCO) Summit in Russia on July 10, 2015. Modi is
opening talks at a time when the Sharif government is weak and the balance of power has
decisively tilted in favor of the Pakistani military establishment.

Nawaz Sharif went to Modi’s inauguration ceremony despite resistance from Pakistan’s
powerful army and refused to meet Hurriyat leaders. Instead of capitalizing on this gesture, Modi
cancelled secretary-level talks with Islamabad on the grounds that the Pakistani ambassador to
India had continued with the longstanding practice of meeting with Kashmiri separatists. This
weakened Nawaz’s ability to improve relations with India. Increased tensions at the Line of

Control and Kashmir, in which Modi responded to cease-fire violations in a way that went
beyond tit-for-tat worsened the situation.

Islamabad, however, was confident that apart from these ceasefire violations, New Delhi will not
risk actual conflict, because of the risk it will turn nuclear. But the Indian army’s raid in
Myanmar against militants has Islamabad worried that India might pursue the same option
against Pakistan. The latter’s tactical nuclear weapons are meant to counter India’s “Cold Start”
strategy of an offensive strike within Pakistan in order to punish terrorist elements. India, for its
part, has made clear that it would deploy strategic nuclear weapons in response to Pakistan’s use
of short-range nukes. There is no clarity on how to prevent an escalation in the event of conflict
and Modi is taking a risk in raising public expectations of an aggressive response to Pakistan.

Some argue that Modi should rely on robust anti-Pakistan rhetoric to retain his domestic support
in case he fails to fulfill his election promises of economic growth and good governance. For its
part, Islamabad is highly aware of the Modi’s administration’s penchant for provocative
statements. Statements by senior Indian officials on sub-conventional warfare strengthen
Islamabad’s long-held view that India has not accepted Pakistan’s independence and is working
hard to destabilize it by supporting belligerent groups. Indian National Security Advisor Ajit
Doval warned in February 2014 that, “you can do one Mumbai and you may lose Baluchistan.”
Similarly, Indian defense Minister, Manohar Parrikar, stated that, “we should neutralize terrorists
through terrorists only.” Modi’s remarks in Dhaka that Pakistan “promotes terrorism” were seen
as further confirmation of his hawkish policy.

22)- Ujjwala Yojana-

Under the scheme, five crore LPG connections are to be provided to BPL households. The
identification of eligible BPL families will be made in consultation with the State Governments and
the Union Territories.
BPL is a person/ household who suffers from at least one deprivation under the Socio-Economic
Caste census (SECC) - 2011 Database.
While the selection of beneficiaries would be from the BPL families only, preference would be given
to SC/ST and weaker sections of society. While providing the new connections to BPL households,
priority would be given to the States which have lower LPG coverage (compared to the national
average) as on 1st Jan, 2016.
Release of LPG connection under this Scheme shall be in the name of the women belonging to the
BPL family.

10 | P a g e
3 -Nuclear Weapons
In addition, a BBC report on links between India’s Research and Analysis Wing and the
Karachi- based political party MQM (Muttahida Quami Movement) provided Islamabad with
evidence that India is encouraging subversion itself, to balance Pakistan’s involvement in
Kashmir. This reopens old wounds from India’s role in the creation of Bangladesh, and confirms
Islamabad’s fear that New Delhi is willing to do anything to break up Pakistan. Pakistan accuses
India of supporting anti-Pakistan terrorist groups, including the Pakistani Taliban and Baloch
separatists. Pakistani Defence Minister Khawaja Asif, warned that Pakistan would use nuclear
weapons if its survival were at stake. Lieutenant General Khalid Kidwai, still an advisor to
Pakistan’s National Command Authority and former Director General of Pakistan’s Strategic
Plans Division, has described four conditions for nuclear use: a) space threshold (India attacks
Pakistan and conquers a large part of its territory); b) military threshold (India deploys a large
part of its land or air forces); c) economic strangling; and d) domestic destabilization. India’s
support of anti-Pakistan elements would seem to meet that last condition.
India, on the other hand, blames Pakistan for terrorist activities in Kashmir and within India,
ranging from theTwin Peak Crisis (2001-2002) to the Mumbai attacks in 2008 and the attack on
the Indian embassy and consulate in Afghanistan. New Delhi protested the release of Zaki-u
Rehman Lakhvi, the mastermind behind the Mumbai attack, from prison, with Pakistani
authorities claiming India had provided insufficient evidence to prosecute him in Pakistani
courts. India tried to raise the matter of Lakhvi’s release at the United Nations Sanctions
Committee, under resolution 1267, but China used its veto to block. China’s veto shows that
Beijing is willing to shield Islamabad from international scrutiny despite New Delhi’s

11 | P a g e
China and Pakistan are also expanding their influence in Afghanistan. After taking office,
Afghan President Ashraf Ghani chose Saudi Arabia, China, and Pakistan for his first overseas
visits. Ghani cancelled an arms deal with New Delhi before visiting India in April 2015. The
Afghan president is also reaching out to Afghan Taliban for talks facilitated by Islamabad and
Beijing. After U.S. forces withdraw, New Delhi’s influence in Afghanistan is likely to weaken.

Beijing is meanwhile investing $46 billion in Pakistan-China Economic Corridor (CPEC) to link
its underdeveloped western frontier with the Persian Gulf and Middle East through Pakistan. The
CPEC would provide infrastructure within Pakistan in support of Beijing’s plan of storing
Middle Eastern oil in refineries at Gwadar and sending it to China via road or pipeline. Gwadar
port is already operational, and has strategic significance for both Beijing and Islamabad. In
September 2014, Chinese President Xi Jinping invited India to join the economic corridor, but
Modi baulked because of fears of a growing Chinese foothold in the Indian Ocean. India
is developing the Iranian port of Chabahar as a competitor to Gwadar, but construction will take
some time.

Indian attempts to isolate or ignore Pakistan will not yield the desired results and are counter-
productive given Islamabad’s position as the second largest country in South Asia and its strong
links with China. Militarily India cannot afford to be confrontational with Pakistan, because of
the latter’s nuclear weapons. Politically and economically New Delhi cannot isolate Pakistan,
which enjoys strong ties with China. New Delhi has no option but to engage Islamabad
constructively by opening dialogue. It is in India’s interest to reduce Pakistan’s sense of
insecurity by initiating negotiations and using confidence building measures to reduce
Islamabad’s reliance on nuclear weapons. India’s dream of great power status will be hard to
achieve without a solution to the “Pakistan problem.”

Modi may want to talk tough for domestic political reasons, but it is self-defeating in a number a
ways. First, it constrains India’s options in a future conflict, as he would be under tremendous
option to respond aggressively, a highly dangerous move given the presence of nuclear weapons.
Second, it is unnecessarily provocative and gives strength to anti-India elements in Pakistan.
Third, it raises international concerns that are not only damaging to the Indian economy but also
pairs India with Pakistan, something that New Delhi has long abhorred.

For India, the only way to de-hyphenate itself from Pakistan is to improve relations with
Islamabad through bold initiatives. Modi, who has always advocated a more muscular approach
to national security, cannot ignore Pakistan, but must also recognize that a hardline approach will
create problems for New Delhi. His huge victory gave Modi the political space to reach out to

12 | P a g e
Pakistan in ways his predecessor could not. South Asia expert Stephen P. Cohen, once said,
“India cannot make peace. Pakistan cannot make war.” It is time for Modi to engage Pakistan
directly and initiate a peace process.

4- India –USA relations after coming of MODI

The new government in New Delhi provides the US and India the chance to press the reset
button and turn “areas of contention into areas of collaboration,” to quote a US official. However
this approach is not going to be easy. Both governments will have to walk a tight rope in
securing political and economic confidence while making certain compromises. However, there
has been a breakthrough with Prime Minister Narendra Modi’s recent visit to the US. The
challenge now is to consolidate this breakthrough.

The bilateral relationship got a new direction after the July 2009 joint statement by the US
Secretary of State Hillary Clinton and the Government of India highlighting the areas that the
two countries would focus on. The bilateral relationship rode on immense confidence in the
aftermath of the framework agreement of the Indo-US Civil Nuclear Deal for at least more than
half a decade.

With a new government at the helm, and with Narendra Modi having made the first crucial visit,
it is opportune to analyse and prioritise the issues that are current or potential opportunities and
roadblocks in the bilateral relationship. Such a perspective assumes importance vis-à-vis the
2013 diplomatic row between New Delhi and Washington, when many thought the government-
to-government relations had reached its nadir. It was certainly a setback that brought the mutual
relationship and confidence to a halt. Resultantly, there has been a limbo in many areas of mutual
partnership, including the defence and trade sectors that have formed the bedrock of the bilateral
relations for some time now. With the recent developments, the diplomatic row of 2013 now
seems to be history.

In the middle of this tumultuous diplomatic phase, Washington seems to have made a conscious
effort to establish good diplomatic faith with New Delhi. The US took a big step in asking one of
its most experienced and senior diplomats to step aside in the interest of better relations with
India. Modi’s promise that he would not let the history of his personal equations with the US get
in the way of better bilateral relations was another mature political enunciation.

During his visit to the US, Modi not only delivered on the above expectations and promises but
also took them forward in a smooth way. One of the compelling factors that drove Modi’s visit to
the US was the intention to get the economy on a resurgent path by wooing investors. It was the
result of this intention that on the eve of his visit, his government put forward the pitch, “Come,
make in India.” In essence, Modi’s visit was hinged on two prospective rationales: wooing
investors to India and providing momentum to bilateral defence cooperation, which has virtually
been on a standstill for some time. The general warmth in the US reception of Modi went a long
way in putting behind the tumultuous diplomatic row of the recent past. In what was an
unprecedented step, the release of the joint vision statement called “Chalein saath, saath:
Forward together we go” was a crucial step. This vision document is being seen as a new agenda
that will allow the two countries to find ways to expand collaboration in trade, investment and

13 | P a g e
technology. Sealing the intention of a cooperative framework between the two countries being
adopted was the joint editorial in a US newspaper where Obama and Modi together resolved that
“Our natural and unique partnership can help shape international security and peace for years to

5- India - China afer coming of MODI

President Xi Jinping should find the “handshake across the Himalayas” a lot warmer than usual
when he starts his India trip today.

As India prepares to overcome the reflexive suspicion of its giant neighbour and open the
floodgates to Chinese capital, and Xi respond by opening the chequebook, relations between the
two Asian giants are set for, as India’s National Security Adviser Ajit Doval puts it, an “orbital

From Hindi-Chini bhai bhai (India and China are brothers) to Chindia, rhetoric flies thick and
fast when it comes to China and India, as a way of sugarcoating a fraught relationship. But the
words of the former spymaster, who was in Beijing last week to finalise the details of Xi’s trip,
mirror a deeper churning in India’s strategic outlook in favour of China at a time when China is
also gravitating towards India.

“With the incredibly rapid growth of bilateral trade and recent partnerships such as the BRICS
(Brazil, Russia, India, China, South Africa), India’s importance to China has risen to a new level.
China considers India as one of its most important strategic partners,” says Guo Suiyan, associate
professor at the Institute of South Asian Studies in the Yunnan Academy of Social Sciences.
China and India began a cautious détente after shutting each other out for two decades over a
border war in 1962 in which India suffered a humiliating defeat. Over the years, they have
gradually escalated engagement, especially in trade, but relations have been dogged by mutual
suspicion stemming from a contested border and overlapping territorial claims. There are now
signs of change.

“India’s strategic circles have noted that the Chinese government has been trying to reach out
to India. This has prompted a reassessment of our China policy,” says Jagannath Panda, a
research fellow at the Institute for Defence Studies and Analyses in New Delhi.

Though India’s foreign policy has a strong strain of continuity and a reassessment of China has
been on for some time, it has picked up pace since Narendra Modi’s rise to power in May. The
reasons have as much to do with the new prime minister’s economic priorities as much as his
world view.

Modi came to power largely on the promise of fixing a broken economy. It was his stellar
management of the western state of Gujarat and his investor-friendly reputation that propelled
his ascent in national politics as India’s once-mighty economic growth slipped under 5 per cent.

Central to the so-called Modinomics is attracting foreign investment and creating manufacturing
jobs for millions of young Indians. Between 2004 and 2011, China generated 16 million
manufacturing jobs on top of an existing 112 million, says Free University of Brussels professor

14 | P a g e
and author of China and India: Prospects for Peace, Jonathan Holslag. India, in contrast, only
created 3 million jobs on an initial total of 11 million. This unemployment problem will only
worsen over the years as 6.5 million Indians are expected to join the labour force every year until

India’s creaking infrastructure and notorious bureaucratic sloth aren’t helping either, forcing
even Indian industrialists to look elsewhere. Chinese investment in India amounted to

US$657 million in 2012 compared to US$723 million of Indian investment in China. It’s not for
nothing that Modi has been asking the world to come and manufacture in India, promising them
“red carpet, not red tape”.

China forms an integral component in this jobs focus. As chief minister of Gujarat, Modi
successfully drew Chinese capital to his state. Now that he is expected to replicate his so-called
Gujarat model of development across the country, he has moved rapidly to remove regulatory
hurdles to facilitate Chinese investment on a wider scale. In a country where suspicion of China
runs deep, that would require all of Modi’s famed administrative prowess but he has already
made substantial progress.

Indian media recently reported that the ministry of commerce and industry has asked the home
and external affairs ministries to formulate a clear strategy on China and identify the sectors and
regions where Chinese investment is perceived as a security threat. The remaining sectors,
according to the commerce ministry, should be thrown open to Chinese investment with a clear-
cut policy.

The Financial Express cited a commerce ministry official as complaining that this lack of clarity
has meant that India drew only US$313 million of Chinese investment between April 2000 and
April 2014 compared with US$20 billion from the UK and US$12 billion from the US.

Perceived security threat is the reason why India’s “strategic assets” such as railways and ports
have so far been off-limits for Chinese businesses. After coming to power, Modi has removed
the 49 per cent cap of foreign direct investment in railways and made it clear that Chinese
investment will be sought in this sector.

China is responding in kind. Liu Youfa, China’s consul-general in Mumbai, has told local media
that Chinese firms are eyeing over US$50 billion worth of investments in modernising the Indian
railways and running high-speed trains. Xi, he said, would bring with him US$100 billion of
investment commitments over five years, nearly three times as much as the US$35 billion
secured by Modi on his recent Japan trip.

Japan’s close ties with India are a matter of concern for Beijing, which fears the United States
and Japan are trying to pull India into their sphere of influence to contain China.

China will also announce the setting up of two industrial parks specialising in cars and power
equipment. Talks are on for two more, specialising in textiles and food processing. Apart from a
major boost to jobs and foreign investment, these mega investments are also meant to allay
Indian concerns over a skewed trading relationship.

15 | P a g e
China is India’s biggest trading partner with two-way trade totalling nearly US$70 billion,
but India’s trade deficit with China has crossed US$40 billion from just US$1 billion in 2001-
02. India also complains about the quality of trade as China buys mostly raw materials from
India but sells it finished goods.

According to Holslag, India’s current attitude towards China is similar to China’s attitude
towards Japan in the ’70s. “Like China back then, India is desperate for foreign investments to
catch up and willing to show more pragmatism towards territorial disputes,” he says, but adds
that it may not work out the way India expects.

“China is not yet ready to support a manufacturing boom elsewhere because it is not yet a high-
income country and awaits a decade of difficult economic reforms itself.”

But many in India believe a rapidly ageing Chinese population and the country’s decision to
move up the value chain and ship out labour-intensive jobs create a rare opening for job-hungry

Economics apart, Modi’s China thrust is also a product of his Hindu nationalistic politics that
draws inspiration from Asian nationalism. This ideological tilt is the prime source of his
attraction to Japan and Singapore as well. It’s also fashioned by his sense of injury over his
treatment by the West for his alleged role in a 2002 pogrom against Muslims in Gujarat. While
most Western countries, especially the US, wouldn’t give him visa, he has travelled freely in
Asia in past years.

China, which he sees as his economic role model and has visited four times, in particular rolled
out the red carpet. In a rare show of deference, China even acceded his request in 2011 and freed
most of the Indians arrested on charges of diamond smuggling in Shenzhen. China and Modi
have long liked each other and make no bones about it.

“There are two factors pushing India towards China. The idea that we need the US in a unipolar
world is out. With China’s rise, Russia’s resurgence and the global financial crisis, multipolarity
has returned to India’s foreign policy outlook,” said Zorawar Daulet Singh, co-author of India-
China Relations: The Border Issue and Beyond. “This ongoing shift away from a US-centric
foreign policy has gained momentum as a result of Modi’s Asia-centric views. He plainly rejects
the US approach of containing China. In the previous dispensation under Manmohan Singh,
there was a degree of reticence vis-à-vis China for fears of US retaliation. Under Modi, there is
greater assertiveness.”

The accent on Asia in itself is not altogether new for India. Since 1991, it has pursued a “Look
East Policy” to court countries closer home. But here again, there’s been a perceptible change of
pace and focus since Modi came to power. External Affairs Minister Sushma Swaraj put it
succinctly last month when she declared in Hanoi: “It’s time to not just look but to act. We’ll
have an Act East policy.”

This renewed interest in the periphery is also creating greater opportunities for collaboration,
particularly because some of Xi’s signature projects are transnational corridors such as the “New
Silk Road” that seek to recreate ancient land and sea trading routes.

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“For the first time, both countries are in symmetry on the Dengist maxim that stability at home
and peace in the immediate common neighbourhood are essential to their modernisation
programmes,” says Sourabh Gupta, a senior research associate at Washington-based consultancy
Samuels International. “The Chinese were already committed to it. Now New Delhi is coming
around to the idea that these corridors are in its national interest.”

6- India-Canada relations after coming of MODI

Stewart Beck is president and CEO of the Asia Pacific Foundation of Canada.

Two months after leaving India as Canada’s High Commissioner, I returned two weeks ago as
part of British Columbia Premier Christy Clark’s official delegation to the country.

Stepping out into the hot and humid Delhi night, everything looked the same but there was
certainly a sense of change in the air: everyone from taxi drivers, to business people and
politicians seem to feel a new confidence that India can now move forward. In his first 100 days
in office, new Indian Prime Minister Narendra Modi seems to have changed the attitude and
outlook of the world’s second-most populous nation.

Coinciding with the Premier’s visit was a delegation of federal representatives, including Foreign
Affairs and International Trade Ministers John Baird and Ed Fast, who were there to reinforce
Canada’s commitment to strengthening ties with India’s new government. The success of the
concurrent delegations was an excellent example of how Canada can capitalize on some of its
constitutional similarities with India – in this case, the devolution of power over issues such as
education and national-resource management to the provinces – in order to improve relations for
Canada as a whole.

Our ministers had the opportunity to sit down with the prime minister: Mr. Baird extended an
official invitation for Mr. Modi to visit Canada, and Mr. Fast raised the pending Canada-India
Comprehensive Economic Partnership Agreement (CEPA), the negotiations for which have been
continuing since 2010. For his part, Mr. Modi noted that he was looking forward to meeting
Prime Minister Stephen Harper at the G20 Summit in Brisbane, scheduled to begin Dec. 1.

With the CEPA negotiations now having gone through eight rounds, and an unsigned FIPA,
India-watchers in Canada have had little reason to anticipate any formalized deepening of ties.
But India is changing, and it is happening faster than we think.

Over the last four years in India, I saw little, if any, change. The second UPA government under
Manmohan Singh was sclerotic, bumping from one scandal to another starting with the
Commonwealth Games in 2010. This left the country, its people and its businesses with little

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hope and enormously frustrated by a corrupt environment, lagging job growth and a government
incapable of providing services for its citizens.

Mr. Modi was elected as prime minister with a mandate to make things happen. From my own
experience in dealing with Mr. Modi, he is prepared, direct and looking for results and
accountability, rare attributes in an Indian politician. His past record as chief minister of Gujarat
demonstrates what he is capable of: his policies and approach attracted the most foreign
investment of all Indian States, including major Canadian investments by Bombardier and

In the past 100 days, Mr. Modi has made some dramatic international maneuvers, including
securing sizeable infrastructure funding commitments from Japan and China and building new
security arrangements with the United States. Domestically, he moved forward on introducing
land and labour reforms, and with the drop in crude oil prices, he has been able to reduce fuel
subsidies. This will further improve India’s investment environment, and with a declining current
account deficit he will have more room to take bolder reform measures.

This change in attitude and level of confidence was clearly evident in the meetings Ms. Clark
had with her counterparts. There was a strong commitment to securing long-term gas supplies
based on current and future investments in British Columbia and meetings with steel industry
executives opened many Canadian eyes to the staggering growth planned in the economy. Steel
manufacturing capacity will grow to 300 million tons by 2025, which, alone will mean that
India will need to import at least 150 million tons of coking coal to meet the demand.

Mr. Modi’s most significant challenge will be providing the necessary skills to employ the one
million people entering the work force every month for the next 15 years (more than 50 per cent
of India’s population is under the age of 25). The Premier was able to present solutions to this
challenge, including how the proper Canadian accreditations delivered through joint
programming in India can solve some of the skill shortages facing the province.

Opportunities abound in India and even more so now that there is a newfound optimism and
energy. Canada is uniquely placed to become a priority country for India. We engaged early with
Mr. Modi when other western countries were reticent; we are colonial cousins and share a similar
constitutional framework; and we have a vibrant diaspora that cares about India’s future place in
world. As Mr. Harper meets with Mr. Modi for the first time later this year in Australia, and we
look ahead to a possible official visit next year, the time is ripe for Canada and India to grow in
closer partnership together.

Stewart Beck was Canada’s High Commissioner to the Republic of India with
concurrent accreditation to the Kingdom of Bhutan and Nepal.

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No sooner had the new government assumed office in New Delhi, there was a visible US effort
to better relations as well as mend its past equations with the Prime Minister of India. This
ranged from the possibility of appointing a Gujarati as an interim chargé d' affaires at the US
Embassy in New Delhi to rushing several diplomats to India. These moves were necessary to
balm the bruise that was caused by the diplomatic row of 2013. Yet, the US has taken
considerably long in appointing a permanent ambassador to India.

For now, the Modi government, by its clear majority and a foreign policy focus on the immediate
neighbourhood (also read as a snubbing of the US), has put the ball back in the US’ court. The
US has been galvanised into action, reflected in its rushing Nisha Desai Biswal, the Obama
administration's point person for South and Central Asia, to New Delhi to hold talks with Indian
officials on a series of bilateral and regional issues. Kerry and Chuck Hagel are believed to have
done substantial groundwork to prepare for the much anticipated meeting between Narendra
Modi and Barack Obama.

The Indian government led by PM Modi has shown a very pragmatic and result-oriented
approach to its relationship with the US. Modi’s visit to the US, following the UNGA address,
was fitting to the extent that after addressing a gathering of world leaders, he moved on to
arguably the world’s most important country, the US. The warm reception extended by the
Obama Administration and the ‘rockstar’ reception by the Indian American community in the
US left no doubt that the visit was successful.

The success of the concurrent delegations was an excellent example of how Canada can
capitalize on some of its constitutional similarities with India. . Canada is uniquely placed to
become a priority country for India.

Talking about China; With the incredibly rapid growth of bilateral trade and recent partnerships
such as the BRICS (Brazil, Russia, India, China, South Africa), India’s importance to China has
risen to a new level. Modinomics is attracting foreign investment and creating manufacturing
jobs for millions of young Indians.

Finally the main and most important core things which are done by MODI government (BJP)
like ‘swachh bharat abhiyan’ for cleanniness, ‘Jan dhan yojna’ for accumulation of funds and
development of nation, ‘beti bachaao beti padhao beti likhao’ initiative for the wellness and
equality of women, and other initiatives etc. are ushered by the people of the nation and also are
considered much better and more efficient than the previous government (congress). Also the
ministers of the cabinet of present government are much more capable and seen taking absolute
decisions for the nation whether it be home affairs or defence sector.

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8- Bibliography


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