India in between 2 power circles

UNITED STATES, JAPAN, EU

AND
CHINA, IRAN AND RUSSIA

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CONTENTS
1) Background of India’s international relations

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INTRODUCTION
The relationship of India with various worlds powers such as USA, China, Russia(previously
Soviet union), Japan have evolved over a period of time. Some of them who were not trusting
India earlier have become its friends and who were earlier friends or acting like it have become
suspicious of its activities. We can easily see that each and every country is today sees only its
self- goals and it’s own benefits while developing international relations. India could easily see
that Erstwhile soviet Union was a friend of Indias – activities because it used India and helped
it as it was in a proxy war with USA and used it as a tool in its war with USA in !971 war.
India which was in deseparate need of arms and strategic power agreed to Soviet Russia’s
proposal. Similarly USA after the collapse of soviet union and post liberalisation became the
Worlds only superpower and started dominating and unilaterally imposing its own decision.
The Communist China under the Leadership Of Mao Zedong proclaimed the Communist
Revolution over Mainland China in 1949 and was a Soviet -Styled economy with state controls
on means Of Production. Now with opening up Chinese economy by Deng xiopig by moving
it to a new market- styled economy.

BACKGROUND OF INDIAS INTERNATIONAL RELATIONS

In this multi-polar world a country needs to have relationship with each and every country of
world which will help it to survive and help in nations development. India has been since the
advent of civilisation a place which hhad trade relations, with both the eastern and western part
of the world from japanese to romans, from the islands of java, sumantara, borneo to the
highlands of kazakhs everywhere we had relations. India was known as the centre of trade as
well as international activities. Many foreign travellers ranging from different Nationalities
visited india during the ancient, medieval and mofern periods of Indias history who belonged
to various n as fahien and hiuen tsang of ancient China, megastenes of greece, ibn batuta of
morroco, marcopolo of Italy, vasco da gama of Portugal etc. these travellers had written
various accounts which had written what were the conditions of india and how was india a
dominant player during that period.

INDIAN FOREIGN POLICY AFTER INDEPENDENCE

After the suppression during British rule India started to reaasert it’s preparation after the
formation of NAM (non aligned movement) . India under relationship of jawaherlal Nehru tried
to reaassert indias postion in the global world as a player commited to development , non
violence and peaceful resolution of disputes. India tried it’s best to resolve most of the matters.
After Independence Independent India under Nehru's leadership chose the foreign policy
strategy of Non-alignment not only because of considerations like enjoying independence in
decision making,
1 getting the best of aid (economic) from the power blocs,
2 carving out for itself an independent position and leadership role in the emerging Third
World,

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3 India by assenting to non aligned policy tried to retain the much needed manoeuvreability
in the conduct of its foreign policy.

Referring to the imperative of freedom in foreign policy decision-making, Nehru once told the
Constituent Assembly: It (freedom) consists fundamentally and basically of foreign rela- tions.
That is the test of independence ... once, foreign relations get out of hands into the charge of
somebody else, to that extent and in that measure you are not independent1

Nehru once said: "We want the help of others, ... and we are going to get it too in large measure
... even in getting economic help or in getting political help, it is not a wise policy to keep all
our eggs in one basket.”2

Put in power terms, India under Nehru aimed at playing the role of a balancer in the struggle
for power and influence that the Cold Warriors had waged in South Asia and the other regions
of the world.

NEED FOR BALANCING RELATIONS WITH UNITED

STATES,JAPAN AND CHINA,RUSSIA
One of the key foreign policy challenges that India faces in the year ahead is juggling its
relationship with the US and the west on one hand and Russia and China on the other 3 which
is not an easy task and requires constant Diplomatic Heft, tact and Manevouring.

This will be particularly difficult when it comes to multilateral forums such as the UN Security,
the WTO, the Organisation for the Prohibition of Chemical Weapons and even the G-20, where
India will have to juggle conflicting positions and opinions. in

Nehru has justified the balance between different blocks as “We maintain our with old ties with
those countries because all countries cannot live in isolation, we wanted certain things which
we cannot get from elsehere. That some people Obseesed by passion and passion and
predjudice disapproved our relations wiyh Anglo-american Block is not sufficient reason for
us to ond which is advantageous for Us”

As a country we have several challenge’s and requirements. We are a country of 1.25 billion
people and 40% of people are under the age of 25. Governing such a country has huge
challenges ranging from employment of youth, Mantaining the fiscial as well as current
account deficit as well as managing social schemes etc. For All these activities a country
requires resources which ae not available in a country and requires cooperation from other
countries. India has varied challenges from managing its foreign exchange, its challenge for
growth and development which leads to its dependence on other nations.

1
. Source: Nehru, J., India's Foreign Policy , Selected Speeches è, Sept. 1946-April 1961, Publications division,
Govt, of India, New Delhi
2
. Source: Ibid. Speeches, Sept. 1946-April 1961
3
Indias Foreign policies in 2019, Editorial ‘The New Indian Express’

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Indias relation with Russia
The immediate need or the push that the led to a strategic depth in bilateral relation was
Richards Nixon support to Pakistan in the 1971 war which left the india with without a strategic
partner to counter the Pakistani power with military might of US. The seeds for indo- soviet
relations were sown during the visit of Nikitha Khruschev's visit to India in 1955 and his
statement at Srinagar that Kashmir's accession to India was final and irrevo- cable was an
indication of the kind of strategic relationship that was to unfold in the years to come 4between
the two nations which was nehrus reaction to Pakistans joining the US alliances such as
CEATO and SENTO not with the objective of containing communism but only to serve
pakistans own foreign policy of isolating India. The policy of nehru was further continued by
Mrs. Indira Gandhi , she faced a terse situation during the 1971 Indo- pak war which led to
signing of TREATY OF PEACE, FRIENDSHIP AND COOPERATION BETWEEN THE
GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST
REPUBLICS on AUGUST 9, 1971. One of the important provision of this treaty was that soviets
would give arms support to union of India in lieu the Union Of India allows the Soviets to use
its ports for refulling its ships, submarines etc. this treaty came at the time when USA with help
of china and Pakistan wanted to put pressure to india to not join soviet Union.
India relationship with Russia has gone through many up and Downs and most notably after
the End Of Cold war when India was on brink of an economic crises and its important ally was
not around and the residual Russia was taking time to reach its original might. After the collapse
of Soviet- Union, India was in a State of crises as the new Russia was unwilling to give the
level of cooperation it used to give when Cold War was prevalent. India had to renegotiate the
Contracts related to every sphere and as gorborachev and yeltsin were reluctant to continue
the old soviet policy. The rupee Rouble exchange rate had to be renegotiated and total Russian
debt neede to be calculated to pay them back. Soviet union had provided huge credit for
developmental projects in india and Russia was unwilling to continue them. The 1971 treaty
was amended and a new 14 Clause Treaty of friendship and Cooperation was signed according
to which both countries would non- interfere in eachothers internal affairs. The Lowest point
in the relationship came when Russia under US pressure withdrew from it’s earlier
commitment of transfer of its satellite cryogenic technology which Russia in 1991 had agreed
i.e Isro signed a $120-million contract with Glavkosmos for salle of 7 engines and transfer of
technology.

Present relations
In recent times there have been slew of defence as well as crude oil purchases from the Russian
government under Putin. The recent acquisition of admiral perskov as aircraft carrier INS

4
FOREIGN POLICY BEHAVIOUR OF INDIA, AFGHANISTAN AND THE HIMALAYANKINGDOMS: A BALANCE OF
POWER INTERPRETATION,P. S. JAYARAMU, The Indian Journal of Political Science, Vol. 50, No. 4 (Oct. - Dec.
1989), pp. 519-532,Indian Political Science Association

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Vikramaditya and other slew of defence deals helped India to augment its defence capacity.
The present landmark deal signed in October 2018 with the Russian federation for s-400
triumf missile systems was in trouble when United States threatened to slap sanctions under
CAATSA (Countering American adversaries through Sanctions Act) for doing deals with
Russia but Washington gave india a waiver which helped to save the deal. As external Affairs
Ministery has said India will recognise only UN sanctions but not a countries sanction . It is
pertinent to know that a time tested old friend is better than 2 new friends therefore India
should continue to maintain expand relationship with RUSSIA notwithstanding its relation
with foreign countries.

INDIAS relalation with USA

The Unitedd states immediately recognised India after independendence and gave immediate
Aid to finance its developmental activities. The Indus water treaty signed in 1960 was a result
of US involvements and World Bank which used India as a Good Office.The Indus Waters
Treaty was signed in 1960 after nine years of negotiations between India and Pakistan with the
help of the World Bank, which is also a signatory. The negotiations were the initiative of former
World Bank President Eugene Black. Seen as one of the most successful international treaties,
it has survived frequent tensions, including conflict, and has provided a framework for
irrigation and hydropower development for more than half a century. Former U.S. President
Dwight Eisenhower described it as "one bright spot ... in a very depressing world picture that
we see so often."5
In other words, project aid initially meant to develop the Indian economy gradually evolved to
programme aid whose express purpose was to shape Indian policy. The changing nature of U.S.
assistance increased donor leverage and therefore presented new challenges to the Indian
policy-making community.6
The USA became suspicious of Non alinged Movement treating member Countries as a B
Team of Soviet Union. The Lowest point in indo -US ties came during the presidency of
Richard Nixon when he supported Pakistan in 1971 war. Also he was trying to isolate and put
pressure On India thinking it as aan ally Of Soviet Union. The USA was Further Aggrived
When india did its nuclear test in 1974 codenamed Smiling Buddha. Relations normalised In
1981 during MRS. Gandhi visit to USA under Johnson administration and further Normalcy
came after the collapse Of Soviet Union and Adoption of Liberalisation, globalisation and

5
http://www.worldbank.org/en/region/sar/brief/fact-sheet-the-indus-waters-treaty-1960-and-the-world-
bank

6
https://www.brookings.edu/blog/up-front/2018/03/01/aid-wars-u-s-soviet-competition-in-india

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privatisation policy at the insistence of World Bank, INF and US government Over a bailout
and Loan Package Over Indias Default and its foreign exchange crises.

Now relations have scaled huge heights, India-US bilateral relations today not only
encompass the major pillars of our strategic partnership - including security, energy and
technology - but have deepened with greater bilateral economic engagement and ever
increasing people-to-people contacts. In the last few years, the bilateral relationship also has
expanded into a global partnership with greater convergence of views on a number of issues
such as international terrorism and shared approach to rules-based order in the Indo-Pacific
region.
US is India’s largest trading partner in goods and services. The overall India-US bilateral
trade in goods and services has increased from US$ 114 billion in 2016 to US$ 126 billion in
2017. This growing trend continues in the first eight months of 2018, which have seen an
increase in bilateral merchandise trade of 18

% compared to the same period in 2017. A snapshot of bilateral trade from January 2016 to
August 2018 is as follows:

(US $ Billions) Jan – Dec 2016 Jan – Dec 2017 % Change

Merchandise 67.68 74.33 9.82%

Services 46.44 51.79 11.53%

Total Trade 114.12 126.12 10.51%

(US $ Billions) Jan-August 2017 Jan-August 2018 % Change

India's Exports to US 32.09 36.45 13.58%

US Exports to India 16.80 21.24 26.45%

Total Trade 48.89 57.69 18.00%

Deficit -15.29 -15.21 ↓0.54%

Investment
USA is one of the top 5 investment destinations for FDI from India. A survey done by CII in
November 2017 found that 100 Indian companies have invested $ 17.9 billion in the United
States creating 113,000 jobs in all 50 states of US. India’s top companies, including Wipro,
Infosys, L&T and Mahindra have recently made announcements for increasing their

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investments in the US. Mahindra became the first company in over 25 years to invest in Detroit
investing $230 Million. The first vehicle rolled out from the plant on March 2, 2018. US direct
investment in India amounts to about $ 33 Billion across several sectors such as manufacturing,
services, pharmaceuticals etc.7

Both the countries have even signed the civil nuclear deal which allows transfer of US
technology to india for peaceful purpose and allows for check by US government.
SIGNING OF LEMA andCOMCASA
One of the major breakthrough in the Indo-Us ties have come with the signing of

General Security Of Military Information Agreement (GSOMIA) in 2002

Logistics Exchange Memorandum of Agreement (LEMOA) in 2016.
COMCASA stands for Communications Compatibility and Security Agreement In 2018

COMCASA stands for Communications Compatibility and Security Agreement and is one of
the four foundational agreements that the U.S. signs with allies and close partners to facilitate
interoperability between militaries and sale of high end technology.

COMCASA is an India-specific version of the Communication and Information on Security

Memorandum of Agreement (CISMOA). It comes into force immediately, and is valid for a
period 10 years.

COMCASA allows India to procure transfer specialised equipment for encrypted

communications for US origin military platforms like the C-17, C-130 and P-8Is. Currently,
these platforms use commercially available communication systems.8.

While these agremments enhance our economic and defence ties with USA but many are
questioning the rationale behind signing of the agreement
CPIM general secretary Sitaram Yechury while commenting on a comcasa has even said that
India has now become a junior partner of USA and the Indian security is being compromised
a under the agreements equipment’s provided by USA would have the software using which
the United States can monitor India’s defence activities and it acts a major threat to India’s
sovereignty and security. How can a nation sell it’s sovereignty to a foreign power.
Therefore, it is important for us not to compromise on our sovereignty and security on any
economic, military or political deal with a any nation including the USA.

7
https://www.indianembassy.org/pages.php?id=41
8
https://www.thehindu.com/news/national/what-is-comcasa/article24881039.ece

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 On 1 April, 1950, India became the first non-socialist bloc country to establish diplomatic
relations with the People’s Republic of China. Prime Minister Nehru visited China in October
1954. India was cautious due to ever expanding network of china in tibet but pursued a policy
of non intervention in affairs and therefore it led to the signing
PANCHASSEL AGREEMENT
Conditions

1) Recognition of Chinese suzernity over Tibet and surrender of Indian telegraph lines and
other properties
2) surrender of all diplomatic priviledges enjoyed by bindia during the british rule

principles
1. Mutual respect for each other's territorial integrity and sovereignty.
2. Mutual non-aggression.
3. Mutual non-interference in each other's internal affairs.
4. Equality and cooperation for mutual benefit.
5. Peaceful co-existence

This agreement was followed by visit of premiers to both the countries .and to spread
the principles of panchassel

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 During this visit he met Chinese premier and the ideologue of revolution in China , Mao
Zedong and India and China signed an agreement known as panchaseel
IMPLICATIONS OF TREATY

1) india lost it’s priviledges related to Tibet it gained when it was under British rulethe present
treaty was declared as a new beginning

2) the old agrements related to sino-india boundaries such as Shimla convention,1914 were
declared void& the position of McMohan line remained ambigious with no clarity of the
boundary in the treaty. It provided an opportunity for china to attack India claiming mcmohan
line as not acceptable

3) after the treaty Tibet which acted as a buffer between India and china was accepted as a part
of china which led to confrontation between the 2 nations in 1962.

AFTERMATH OF 1962 WAR

While, the India-China border conflict in 1962 was a serious setback to ties, with india losing
large amounts of soldiers
RESTORATION OF RELATIONS
1976- ambassadorial relations were restored

1988- Prime Minister Rajiv Gandhi’s landmark visit in 1988 began a phase of improvement
in bilateral relations. The joint declaration emphasised the need to open up other areas of trade
and resolving the Boundary dispute in a peaceful manner,

In 1993, the signing of an Agreement on the Maintenance of Peace and Tranquility along the
Line of Actual Control (LAC) on the India-China Border Areas during Prime Minister
Narasimha Rao’s visit reflected the growing stability and substance in bilateral ties.
Main points
The boundary dispute will be resolved by confidence building measures on both the sides.9
21st CENTURY ERA OF TRIANGULAR DIPLOMACY

In the 21st century Cumulative outcomes of the high level visits have been transformational
for our ties. During Prime Minister Atal Bihari Vajpayee’s visit in 2003, India and China signed
a Declaration on Principles for Relations and Comprehensive Cooperation and also mutually
decided to appoint Special Representatives (SRs) to explore the framework of a boundary
settlement from the political perspective. During the April 2005 visit of Premier Wen Jiabao,
the two sides established a Strategic and Cooperative Partnership for Peace and Prosperity,
while the signing of an agreement on Political Parameters and Guiding Principles, signaled the
successful conclusion of the first phase of relations in the 21stcentury.

9
JOHN W. GRAVER , EVOLUTION OF INDIA’S China POLICY ,98, Oxford university press ,2010

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This period both the US and Chinese though initially tried to punish India for the nuclear tedts
, but later both quietly dropped their sanctions and started giving trade concessions to India.

It was an era in which both the powers were trying to win the support of India for containing
each other. It is slowly being observed that China has emerged as a challenger to US in the
international arena and as a new trade and tech war is going on between 2 powers it is important
for India to Balance the 2 powers. India’s advantage lies in being non aligned and take the
benefits each block is trying to provide.

After the election of narendra modi there have been various sumits by modi with his Chinese
counterpart. Invitation of Chinese premier Xi jimping to visit Gujrat in the year 2014 was
followed by various meetings at BRICS , SCO and other forums. India was even granted the
permanent member status to SCO. Though border skirmishes have occurred during this period
most notably the Doklam dispute which occured at the trijunction of China, India and Bhutan
border. It was one of the longest standoff in the Indo -China border lasting from 16 June 2017
– 28 August 2017. Various meetings between the diplomats of both the sides happened and at
last it was resolved at both the troops reverted back to their pre – standoff position. It was a
major diplomatic victory for india toprevent the escalation of standoff.

Wuhan summit 2018

Due to growing differences between the India and China over a a variety of issues raging from
Reluctance of india to participate in One Belt One Road Initiative of china, denying of
permission by China for granting of membership of NSG( nuclear suplliers group) to India and
otherproblems had led to astrained sino-india relationship. To reinforce the warmth in
relationship Prime minister Narendra Modi travelled to China for an informal summit with
Chinese premier Xi Jiping in the city of wuhan in china between 28-30 April 2018.

The Wuhan Summit was a helpful, timely and necessary step as a result of the narrative on the
link between India and China within the previous few years has been progressively negative.As
such it absolutely was a crucial signal of intent by each countries to revive the link and higher
perceive areas of convergence.
One of the outcomes of the summit was the strategic direction by the leaders to their militaries,
to manage differences on the border and not raise tensions.

Moving forward, the India-China economic relationship will greatly depend on the outcomes
of the U.S-China relationship in the strategic as well as trade spheres.

The larger the uncertainty in this relationship, the less attention the India-China relationship is
probably going to grow

. In the post–Cold War scenario Chinese–Indian–U.S. triangular relationship differs in several

ways from the Sino–Soviet–U.S. triangle of the Cold War era. First of all, the new triangle is
weak in the sense that the dominant issues in each dyad of the relationship do not relate to the
third power. The dominant issues in India–China relations are the unresolved border issue and
China’s military links with Pakistan are the issues that touch only indirectly on the United
States. Similarly, the dominant issues in Sino–U.S. relations are trade, human rights, missile

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defense. The Taiwan issue has little to do with India. Similarly the Indo–U.S. relations are li
dominated by issues not closely related to China such economic cooperation, and countering
terrorism etc.

INDIA’S RELATIONSHIP WITH PAKISTAN INFLUENCING ITS GLOBAL

STANDING
India and Pakistan were Born out of the same bloody War for getting independence from
colonial rule. The very outcome of the Freedom struggle was partition based on Communal
lines. The Outbreak of Kashmir conflict and the subsequent ceasefire by UN led to
descecalation of tensions was the beginning of conflict which would last generations to come.
The United States supportive of India till the 1960’s was pressurizing India to join it’s alliance
and to Oppose the Soviet Communist Influence. India was not ready to join any alliance due
to which United states started pressurizing India by decreasing assistance and Aid To India.
Pakistan under military dictatorship of generals such as yahya lkhan, ayub khan etc were in
need of money and Muscle power and they openly agreed to support USA in it’s effort.
Pakistan became an ally Of USA And Flush With CIA money and support it started making
Plans For a military escalation with India. Pakistan by agreeing to to be in US alliance against
communist was given membership of SEATO in 1954 and CENTO in 1955. Thesemembership
had with them US aid as well as granting of US military equipments such as F16’s and other
advanced fighter crafts which it intended and used against India. 10. Therefore we can see that
it was the state of Pakistan which influenced India to adapt different strategies in response to
challenges faced by Indian state due to Pakistan’s tactics. It was due to Pakistan’s friendship
with USA which led India to sign the TREATY OF PEACE, FRIENDSHIP AND
COOPERATION BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT
OF THE UNION OF SOVIET SOCIALIST REPUBLICS on AUGUST 9, 1971

After the election of Richard Nixon as the President Of United States , he was vary of any
Communist Influence and Considered India and it’s Non aligned Members as a Shadow And
Puppet Of USSR. He decided to repair ties with Communist china and by displacing
Nationalist China i.e Taiwan Communist China was given the Permanent Membership Of

10
SUMIT GANGULY ,INDIA’S FOREIGN POLICY, 17, Oxford university press,2010

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Security Council ( the Highest decision -making body Of the United Nations). Pakistan thus
heeded to nixon’s request and thus India became uneasy after the emergence of US-China –
Pakistan axis. Though India countered it by signing the treaty of friendship with the soviet
Union but India was adamant that it cannot sacrifice it’s Non – aligned position which Pakistan
could sacrifice and thus it could take more benefit than India .

After the collapse of Soviet- Union, India was in a State of crises as the new Russia was
unwilling to give the level of cooperaton it used to give when Cold War was prevalent. India
had to renegotiate the Contracts related to every sphere which was a delight to Pakistan as it’s
all weather friend US was with him even Now. Even then India Managed to build solid ties
both With USA and Russia and thus overcame the problems of 90’s.

Relation with Japan

Political Relations

There is a long history of friendship between India and Japan, which is deeply rooted in spiritual
attraction and strong cultural and political relations. The India's first recorded contact with the japanese
was in the documentary with the Todaji temple of Narra, where in 752 AD In the Indian priest
Bhodsena, holy number of the tall statue of Lord Buddha In modern times, among the leading Indians
associated with Japan, Swami Vivekananda, Gurudev Rabindranath Tagore, JRD Tata, Netaji Subhas
Chandra Bose and Judge Radha Binod Paul were included. Japan-India Association was established in
1903, and today it is Japan's oldest international friendship organization. During the various points of
history since the contacts of India and Japan started 1400 years ago, both countries were never enemies.
India has not participated in the San Francisco Conference after bilateral ties, open-minded, cultural or
regional, after World War II, but after a complete restoration of its politics in 1952, a separate peace
treaty with Japan Decided to arrange. The only disagreeable voice of war crimes tribunal judge Radha
Binod Paul, has a deep connect with the Japanese people who have continued to remember it till date.
The states of modern-day states have pushed forward the positive legacy of the old association which
has been strengthened by the shared values of democracy, individual freedom and rule of law. Over the
years, both countries have built on these values and formed a partnership based on both theory and
realism. Today, India is Asia's largest democracy with Japan, which is the most prosperous

In the the first decade after diplomatic ties were established, several high level exchanges took place,
including Japanese Prime Minister Nobusuke Kishi’s visit to India in 1957, Prime Minister Nehru’s
return visit to Tokyo the same year (with a gift of two elephants) and President Rajendra Prasad’s visit
in 1958. The visit of their Highnesses, the then Japanese Crown Prince Akihito and Crown Princess
Michiko in 1960 took the relations to a new level. The push of bilateral ties, however, was not quite
sustained in the following decades. After Prime Minister Hayato Ikeda’s visit to India in 1961, the next
Prime Ministerial visit from Japan was by Yasuhiro Nakasone in 1984. Prime Ministerial visits from
India included Smt. Indira Gandhi (1969 & 1982), Shri Rajiv Gandhi (1985 & 1987) and Shri P. V.
Narasimha Rao (1992). A transformational development in the economic history of India was Suzuki
Motor Corporation’s path breaking investment in India in the early 1980s that transformed the
automobile sector, bringing in advanced technology and management ethics to India. A test of the11

11
Embassy of India, Tokyo website: https://www.indembassy-tokyo.gov.in/

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reliability of Japan as a friend was witnessed in 1991, when Japan was among the few countries that
unconditionally bailed India out of the balance of payment crisis.

Economic contribution

The Contribution of Japan to Indian Economy cannot be overlooked. One of the first modern and fuel
efficient Cars Maruti Suzuki was a product of Joint Venture between Indian government and Suzuki
corp. of Japan. Similarly the Hero Honda corporation which made India’s finest bikes were also
products of Japanese Joint Ventures

Whether it is metro or electronic appliances or developmental assistance japan has always been a
forefront in helping India to reach a prosperous future.

Relations with Iran

Though an Islamic country but india estanlished diplomatic relations with iran in the year 1950. Iran
under it’s monarch Reza Shah joined the us Block and it halted India’s relationship with the Iran

After the 1979 Islamic revolution the new government in Iran came into power. Though there were
friendly exchanges but things didn’t go that well due to differences about soviet union’s expansist
policies in Afghanistan and it’s ideology of isolism due to Iran’s past betrayal by west

Things started falling in place after the Tehran declaration between the reformist president khatami and
Indian PM Atal Bihari vajpyee in Iran in 2001 which was further ennhanced with the New Delhi
declarstion in the year 2003. This declaration included building of chabhar port as an alternate route to
access Afghanistan, LNG terminal in iran and a pipeline linking Iran to india12

The chabhar port became operational in the year 2018 and thus india fulfilled it’s longstanding promise
of building a port in iran. Other projects are in deadlock due to reimposition of snctions on iran by us
under Trump adminstration

12 12
SUMIT GANGULY ,INDIA’S FOREIGN POLICY, 135, Oxford university press,2010

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HERE WE GET MORE PROFIT
REALISM, RUSSIA CHEAP OIL
OVERDEPEDENCE ON ANY ONE BACKFIRE CHINA TRADE DEFICET

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STAYING IN A GROUP OR MOVING FROM HERE TO THERE W

One of the chief Imports of our country is the crude oil which supports various industries.
Therefore it is important for India to get the lowest price for buying a barrel of crude oil.
The United States ids pressurizing the other nations to stop Buying Irani crude oil , if a nation
still persists to buy Irani crude oil they would impose US sanctions under CAATSA (
countering American adverseries through Sanctions Act). The Important question here is Why
the Indian State should recognize US sanctions. As our external affairs Minister Sushma
Swaraj had said “ the Indian state would recognize only UN sanctions not13
Though India earned a Waiver from US regarding Import from iran , the pertinent question
here is Why should India Recognise US sanctions, though there are economic consideratios
as Indian companies have extensive trade ties with USA but we need to protect the Sovereignty.
It is for India’s oil market that major oil powers such as UAE , saudia Arabia and other nations
were mediating between India and Pakistan for de-escalation of tensions after the Pulwama
attack. UAE and Saudia arabia did it because they know India is one of the Best Markets for
selling their crude oil. If India is Under Us sanctions for dealing with Irani oil , it has to under
compulsion By crude from them as other nations such as Iraq, Libiya, Syria are under grip of
a civil war. To strengthen their claim they have even proposed setting up of a refinery in
the Ratnagiri district of maharastra as a venture between Abu dabi National Oil Company,
Saudi’s Aramco and the state run refiners HPCL,IOCL and BPCL each holding 25% each.
Not only Saudi’s but the Russians have even acquired an oil refinery in the Country . Essar
Oil India was acquired by a Russian consortium led Rosneft (Russian oil major owned by
Russian Federation) has acquired the refinery located at Vadinar In Gujarat, India to tap the
growing crude market of India. So we can see that both the power blocks are trying to gain
market for their crude Oil in India
India as a power and a nation should import oil from a judicious mix of nations so that in event
of any crises, the Nation’s crude supply can be met and the choice should not be dictated by a
foreign power. In this way we can balance interests of all countries in the process of importing
the oil.

13
https://www.hindustantimes.com/india-news/india-follows-un-sanctions-not-us-sanctions-on-iran-says-
sushma-swaraj/story-5zXcNmFY9ukVnUWGx4GuPO.html

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TELECOM EQUIPMENT MAKING COMPANIES
As the technology revolution dubbed as 4th industrial revolution is taking place throughout the
world , the focus is on technology, Big data analytics and various other resources, And the role
of telecom gear companies comes into play here. These companies are involved in making and
operating the towers and other subsidiary equipments due to which they have access to our data
etc. As they control the equipment therefore they are in liberty to take and use it for their Own
benefit. They may even seep into the military establishments, academia and even try to steal
our Intellectual property Rights.14 Though the concerns of USA and Other EU nations are
genuine that ZTE and Huawei may spy using their equipments used by telecom service
providers such as VodaIdea, Airtel etc, but what is the guarantee that others will not do it. It
cannot be proved that Nokia, Ericsson and other Europe based telecom companies will not do
it. Though ZTE and huwaei are more to but the fact that others will not do it for their nations
cannot be Acceptable. Therefore though there is a need for maintaining a cautious approach
towards Chinese companies we cannot completeky ignore them as they are providing
equipments for a lower price compared to their competitors. Therefore like in the example of
crude oil imports we need to have a judicious mix of equipments from everywhere but with
have to be a bit extra careful towards Chinese equipment. Telecom industry is a sensitive area
for the growth of India as all the activities related to defence, security as well as Day to Day
activities have been linked with the technology. We can see that a tech war in disguise of
trade war is going on between China and Usa, US fears that China using its state controlled
companies and intelligence based in China is trying to dislodge Us from it’s position as a
world’s only super power, therefore United states is trying it’s best to contain China. One of
the instance of which was arrest of Meng Wanzhou the group CFO of huwei and founders
daughter. She was arrested on the pretext of having violated the sanctions USA has placed
against Iran but the real cause is believed to be the tech war between USA and China. It has
caused friction in Sino-US ties which have affected the Markets Worldwide as world’s
economy is being driven By USA & China.
DEFENCE
India being the seventh largest company in the world in terms of Area requires a robust military
and other defence equipment’s to safeguard it’s borders. Therefore defence technology and
other military equipments play a major role in security of India. India is not self sufficient in
making advanced defence systems and therefore it is in need of imports from other nationsand
as we know the 2 prominent defence equipment manufacturers in world are Us and Russia and
both are Vying getting a market Share in Indian Defence Market. The pertinent question here
is who should be the major supplier of defence eqipments to Indian union . As we have seen in
the decade of 90’s After the collapse of Soviet union , india was without it’s ally as well as
defence supplier. The reemergence of Russia took a while and during those period India had to
lok for another supplier and reluctantly signed with usa as it was in dire need of defence

14
https://www.businessinsider.com/us-intelligence-officials-say-chinese-made-huawei-zte-maybe-not-secure-
2018-2?IR=T

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arnesals. The nuclear test of 1998 led to imposition of sanctions o Indian state whichwere
revoked after successful visit of Bill Clinton, the then president of America in the year 2000.
By 2015 USA became India’s largest defence supplier replacing Russians 15. Some say
Russians in their private conversations with the Indian diplomats say that India isigned a not
favouring it’s time tested friend Russia and instead looking for Usa as it’s market. In order to
maintain a balance India inked an agreement with Russia to procure Anti – aircraft Missile
system S-400 at an estimated cost of 40,000 crore. The united states threatened to Invike
Sanctions to India under CAATSA if it went ahead with the deal. Though india was granted a
waiver by the USA for the deal, it is important to see that US is forcing India to buy it’s own
weapons in lieu Of Russian system by using sanctions. India being a sovereignnation should
have a choice to deal win military with whoever it wants. We should not follow Us sanctions
Instead if USA is adamant we can purchace equipments From France or other EU nation.
It is important to know that there should be a judicious mix of equipments fro different
countries till we acquire a capability to manufacture our Own weapons, otherwise we could be
in a post coldwar situation where over reliance on Russia led to problems after the collapse of
soviet union.
The millitaty is the backbone of our nation and the eqipment used by them are part of overall
axis of national security. Therefore any negligence related to purchase of the equipments could
affect India’s national security. No other country should dictate India on what to purchase and
where to purchase, india being a sovereign replic, India can independently manage it’s defence
deals.

15
https://swarajyamag.com/politics/how-america-replaced-russia-as-indias-largest-arms-supplier

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Through this project I wanted to say how can India manage it’s diplomatic relations with
different countries in the world in view of conflicting demands and priorities. There have been
demands made by various organisations as well as policy makers that India should abandon
it’s multipolar strategy of having balance between different powers and instead should be an
ally with one of the powers through which we can gain maximum benefit
Though this strategy may have been appropriate for India during the cold war era but the
modern post cold-war world is not a uni or bipolar world . This is a multipolar world where
there exist different power centres and each nation is dependent on another for it’s needs,
therefore the existence of a cold war -era system seems impossible in the present era
India has a major strength in it’s ability to deal with the opposing camps in the present era in a
way which in addition for the growth of our country would promote peace and security in the
world arena.
The US is using it’s influence to deter other nations for using other Nations products be it
telecom equipment’s , defence equipment’s and even crude oil. It is pumping at large levels to
shore up it’s reserves of shale nand imposing sanctions on Russia and Iran to prevent them
from seling their crude oil or forcing them to sell at below market price. India should not
terminate it’s old agreements with iran or Russia as these countries have made long term
contracts with Indian companies for selling their products

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