indian relations

8/8/2019 Indian Relations

1/15

Indo-Pakistani relations

Pakistan-India relations

Pakistan India

Relations between India and Pakistan is defined by the violentpartition of British India in 1947,

the Kashmir dispute and the numerous military conflicts fought between the two nations.

Consequently, even though the twoSouth Asian nations share historic, cultural, geographic, and

economic links, their relationship has been plagued by hostility and suspicion.

After the dissolution of the British Raj in 1947, two new sovereign nations were formed the Unionof India and the Dominion of Pakistan. The subsequent partition of the former British India displaced

up to 12.5 million people, with estimates of loss of life varying from several hundred thousand to amillion.[1]India emerged as a secular nation with a Hindu majority population and a large Muslim

minority while Pakistan was established as an Islamic republic with an overwhelming Muslimmajority population.[2][3]

Soon after their independence, India and Pakistan established diplomatic relations but the violent

partition and numerous territorial disputes would overshadow their relationship. Since their

independence, the two countries have foughtthree major wars, one undeclared warand have been

involved in numerous armed skirmishes and military standoffs. The Kashmir dispute is the main

center-point of all of these conflicts with the exception of the Indo-Pakistan War of 1971 which

resulted in the secession ofEast Pakistan (now called Bangladesh).

There have been numerous attempts to improve the relationship notably, the Shimla summit, the

Agra summit and the Lahore summit. Since the early 1980s, relations between the two nations soured

particularly after the Siachen conflict, the intensification ofKashmir insurgency in 1989, Indian andPakistani nuclear tests in 1998 and the 1999Kargil war. Certain confidence-building measures such as the 2003 ceasefire agreement and theDelhiLahore Bus service were successful in

deescalating tensions. However, these efforts have been impeded by Pakistan's alleged involvementin various terrorist activities in India. The 2001 Indian Parliament attackalmost brought the two

nations on thebrink of a nuclear war. Additionally, the 2008 Mumbai attacks (which was carried outby Islamic terrorists from Pakistan)[4] resulted in a severe blow to the ongoing India-Pakistan peace

talks.


2/15

Sino-Indian relations

China-India relations

India China

(Indian Prime MinisterManmohan Singh with Chinese PremierWen Jiabao at the Great Hall of

the People in Beijing.)

Sino-Indian relations, also called Indo-China relations, refer to the ties and relationsbetween the People's Republic of China and the Republic of India. The economic and diplomatic

importance of China and India, which are the two most populousstates and the world's fastest

growing majoreconomies, has in recent years increased the significance of their bilateral

relationship.

Relations between China and India date back to ancient times. China and India are two of the worlds

oldest civilizations and have coexisted in peace for millennia.[1]

Trade relations via the Silk Roadacted as economic contact between the two regions. However, since the early 1950s, their

relationship has been characterized by border disputes,[1]

resulting in military conflict (the Sino-

Indian Warof 1962, the Chola incident in 1967, and the 1987 Sino-Indian skirmish).

Both countries have in recent years successfully attempted to reignite diplomatic and economic ties,

and consequently, the two countries' relations have become closer. Today, China is India's largesttrading partner,[2] and has recently reverted its stance on India's bid for a UNSC seat, after Chinese

assistant Foreign Minister Kong Quan formally declared that China will back India's UNSC bid.[3]

Today, India is a main seller of Iron ore to China, and fills the desperate need of natural resources for

the nation.[4]


3/15

Today, China and India both have close economic and military ties. In 2005, China and Indiaannounced a "strategic partnership".

[5]China and India continue to strengthen their relations.

[6]Trade

between China and India continues to grow.[7]

Many have agreed that Sino-Indian relations haveentered maturity period.[8]

BangladeshIndia relations

Bangladesh-India relations

India Bangladesh

Bangladesh and India are part of the Indian Subcontinent and have had a long common cultural,

economic and political history. The cultures of the two countries are similar; in particularBangladeshand India's states West Bengal and Tripura are all Bengali-speaking. However, since thepartition of

India in 1947, Bangladesh (formerly East Bengal and East Pakistan) became a part of Pakistan.Following the bloody Liberation Warof 1971, Bangladesh gained its independence and established

relations with India. The political relationship between India and Bangladesh has passed throughcycles of hiccups. The relationship typically becomes favorable for Bangladesh during periods of

Awami League government[1]

. Relations have improved significantly, after Bangladesh's clampdown

on anti-Indian terrorist groups on its soil, such as the United Liberation Front of Assam, Bangladesh's

Prime Minister's Sheikh Hasina's state visit to India in January 2010, and continued dialogue over the

controversial Farakka Barrage.

Historical background

During the Partition of India after independence in 1947, the Bengal region was divided into two:

East Bengal (present-day Bangladesh) and West Bengal. East Bengal was made a part of the Islamic


4/15


5/15

3. Terrorist activities carried out by outfits based in both countries, like Banga Sena and Harkat-ul-Jihad-al-Islami.

[2][3]Recently India and Bangladesh had agreed jointly to fight terrorism.

[4]

4. Illegal Bangladeshi immigrants and their settlements on Indian side metro cities is causingmajor issues.

BurmaIndia relations

Indo-Burmese relations

India Burma

Bilateral relations between Burma (officially the Union of Myanmar) and the Republic of India

have improved considerably since 1993, overcoming strains overdrug trafficking, the suppression ofdemocracy and the rule of the military junta in Burma. Burma is situated to the south of the states of

Mizoram, Manipur,Nagaland and Arunachal Pradesh inNortheast India. The proximity of thePeople's Republic of China give strategic importance to Indo-Burmese relations. The Indo-Burmese

border stretches over 1,600 kilometers.[1]

BackgroundIndia was one of the leading supporters ofBurmese independence and established diplomatic

relations after Burma's independence from reat Britain in 1948. For many years, Indo-Burmese

relations were strong due Burma previously having been a province of India, due to cultural links,

flourishing commerce, common interests in regional affairs and the presence of a significantIndian

community in Burma.[1]

India provided considerable support when Burma struggled withregional

insurgencies. However, the overthrow of the democratic government by theMilitary of Burma led to

strains in ties. Along with much of the world, India condemned the suppression of democracy and


6/15

Burma ordered the expulsion ofthe Burmese Indian community, increasing its own isolation fromthe world.[2][1] Only China maintained close links with Burma while India supported thepro-

democracy movement.[3][4][1]

A major breakthrough occurred in 1987 when the then-Indian Prime MinisterRajiv Gandhi visitedBurma, but relations worsened afterthe militaryjunta'sbloody repression of pro-democracy

agitationsin 1988, which led to an influx ofBurmese refugees into India.[3][1] However, since 1993the governments ofthe Indian Prime MinistersP.V. Narasimha Rao and AtalBihari Vajpayeechanged course and began cultivating ties with Myanmar, as part of a wider foreign policy approachaimed to increase India's participation and influence in Southeast Asia and to counteractthe growinginfluence ofthe People's Republic ofChina..[3][4][1]

Commercial relations

India is the largest market forBurmese exports, buying aboutUSD 220 million worth of goods in2000; India's exports to Burma stood at USD 75.36 million.[1] India is Burmas 4th largesttrading

partner afterThailand, China and Singapore, and second largest export market after Thailand,

absorbing 25 percent ofits total exports.[5]

India is also the seventh mostimportant source ofBurmas imports. The governments of India and Burma had set a target of achieving $1 billion and

bilateraltrade reached USD 650 million U.S. dollars by 2006.[5] The Indian government has workedto extend air, land and sea routes to strengthen trade links with Myanmar and establish a gas

pipeline.[5][3] While the involvement of India's private sector has been low and growing at a slowpace, both governments are proceeding to enhance cooperation in agriculture, telecommunications,information technology, steel, oil, natural gas, hydrocarbons and food processing.[3][5] The bilateral

bordertrade agreement of 1994 provides for bordertrade to be carried out from three designatedborder points, one each in Manipur, Mi oram and Nagaland.[5]

On February 13, 2001 India and Burma inaugurated a major 160 kilometre highway, called the Indo-Myanmar Friendship Road, built mainly by the Indian Army's BorderRoads Organisation and

aimed to provide a major strategic and commercialtransport route connectingNorth-East Indiawhich connects South Asia with Southeast Asia.[1]

Development of strategic ties

India's move to forge close relations with Burma are motivated by a desire to counterChina'sgrowing influence as a regionalleader and enhance its own influence and standing.[1][3][6]Concernsand tensions increased in India overChina's extensive military cooperation and involvementindeveloping ports, naval and intelligence facilities and industries, specifically the upgrading of a naval

base in Sittwe, a major seaportlocated close to the eastern Indian city ofKolkata.[1]

India'sengagement ofthe Burmese militaryjunta has helped ease the regime's internationalisolation and

lessen Burma's traditional reliance on China.[1]

Both nations soughtto cooperate to counteract drugtrafficking and insurgent groups operating in the border areas.[3] India and Myanmar are leadingmembers ofBIMSTEC and the Mekong-Ganga Cooperation, along with Vietnam, Laos, Cambodiaand Thailand, helping India develop its influence and ties amongst Southeast Asian nations.[1][4] Indiawas slow and hesitantin reacting to the 2007 Burmese anti-government proteststhat had drawnoverwhelming international condemnation.[6] India also declared thatit had no intention ofinterfering in Burma's internal affairs and thatthe Burmese people would have to achieve democracythemselves.[3] This low-key response has been widely criticised both within India and abroad asweakening India's credentials as a leading democratic nation.[3][6][1]


7/15

BhutanIndia relations

Indo-Bhutanese relations

India Bhutan

The bilateral relations between the HimalayanKingdom of Bhutan and the Republic of India have

been traditionally close. With independence in 1947, India inherited the suzerainty over Bhutan

enjoyed by the British Raj. Although modified and modernised since, India remains influential over

Bhutan's foreign policy, defence and commerce.

Background

For much of its history, Bhutan has preserved its isolation from the outside world, staying out of

international organisations and maintaining few bilateral relations. Bhutan became aprotectorate of

British India after signing a treaty in 1910 allowing the British to "guide" its foreign affairs and

defence. Bhutan was one of the first to recognize India's independence in 1947 and both nations

fostered close relations, their importance augmented by the annexation of Tibet in 1950 by thePeople's Republic of China and its border disputes with both Bhutan and India, which saw close ties

withNepal and Bhutan to be central to its "Himalayan frontier" security policy. India shares a 605

kilometres (376 miles) border with Bhutan and is its largest trading partner, accounting for 98

percent of its exports and 90 percent of its imports.[1]


8/15

1949 Treaty

On August 8, 1949 Bhutan and India signed the Treaty of Friendship, calling for peace between thetwo nations and non-interference in each other's internal affairs.[2] However, Bhutan agreed to let

India "guide" its foreign policy and both nations would consult each other closely on foreign and

defence affairs. The treaty also established free trade and extradition protocols.

[2]

The occupation of Tibet by Communist China brought both nations even closer.[2][3] In 1958, the

then-Indian Prime MinisterJawaharlal Nehru visited Bhutan and reiterated India's support for

Bhutan's independence and later declared in theIndian Parliament that any aggression against Bhutanwould be seen as aggression against India.[2] The period saw a major increase in India's economic,

military and development aid to Bhutan, which had also embarked on a programme of modernisationto bolster its security. While India repeatedly reiterated its military support to Bhutan, the latter

expressed concerns about India's ability to protect Bhutan against China while fighting a two-frontwar involving Pakistan.[2] Despite good relations, India and Bhutan did not complete a detailed

demarcation of their borders until the period between 1973 and 1984.[2]

Border demarcation talkswith India generally resolved disagreements except for several small sectors, including the middle

zone between Sarpang and eylegphug and the eastern frontier with the Indian state ofArunachalPradesh.[2]

Indo-Bhutanese relations ar 1972

Bhutan embassy in New Delhi

Although relations remained close and friendly, the Bhutanese government expressed a need torenegotiate parts of the treaty to enhance Bhutan's sovereignty.[2]Bhutan began to slowly assert an

independent attitude in foreign affairs by joining theUnited Nations in 1971, recognising Bangladesh

and signing a new trade agreement in 1972 that provided an exemption from export duties for goods

from Bhutan to third countries.[2]

Bhutan exerted its independent stance at theNon-Aligned

Movement (NAM) summit conference in Havana, Cuba also in 1979, by voting with China and someSoutheast Asian countries rather than with India on the issue of allowingCambodia's Khmer Rouge

to be seated at the conference.[2]

Unlike in Nepal, where its 1950 treaty with India has been thesubject of great political controversy and nationalist resentment for decades, the nature of Bhutan's

relationship with India has not been affected by concerns over the treaty provisions.[3][4]

From 2003to 2004, the Royal Bhutanese Army conducted operations against anti-India insurgents of the United

Liberation Front of Assam (ULFA) that were operating bases in Bhutan and using its territory tocarry out attacks on Indian soil.[5]


9/15

2007 treaty

India renegotiated the 1949 treaty with Bhutan and signed a new treaty of friendship in 2007. Thenew treaty replaced the provision requiring Bhutan to take India's guidance on foreign policy with

broader sovereignty and not require Bhutan to obtain India's permission over arms imports.[3]

In

2008, Indian Prime Minister Dr. Manmohan Singh visited Bhutan and expressed strong support forBhutan's move towards democracy.[1]

India allows 16 entry and exit points for Bhutanese trade with

other countries (the only exception being thePRC) and has agreed to develop and import a minimum

of 10,000 megawatts of electricity from Bhutan by 2020.[1]

IndiaMaldives relations

Indo-Maldivian relations

India Maldives

Bilateral relations between the Republic of India and the Republic of Maldives have been friendly

and close in strategic, economic and military cooperation.[1][2] India contributed to maintaining

security on the island nation and has forged an alliance with respect to its strategic interests in theIndian Ocean.[2][3]


10/15

Background

The Maldives is located south of India's Lakshadweep Islandsin the Indian Ocean and approximately700 kilometres from Sri Lanka. Both nations established diplomatic relations afterthe independenceofMaldives from British rulein 1966.[1] Since then, India and Maldives have developed close

strategic, military, economic and cultural relations. India has supported Maldives' policy of keepingregionalissues and struggles away from itself, and the latter has seen friendship with India as asource of aid as well as a counter-balance to Sri Lanka, which is in proximity to the island nation andits largesttrading partner.[2]

Development of bilateral relations

India and Maldives officially and amicably decided theirmaritime boundaryin 1976,[2]

although aminor diplomatic incident occurred in 1982 when the brother ofthe President ofMaldivesMaumoon

AbdulGayoom declared thatthe neighbouring Minicoy Islandthat belonged to India were a part ofMaldives;Maldivies quickly and officially denied thatit was laying claim to the island.[2] India and

Maldives signed a comprehensive trade agreementin 1981.[4]

Both nations are founding members of

the South Asian Association forRegionalCooperation (SAARC , the South Asian Economic Unionand signatories to the South Asia Free Trade Agreement. Indian and Maldivian leaders havemaintained high-level contacts and consultations on regionalissues.[1]

Operation Cactus

Main article: 1988 Maldives Coup

In November 1988 speedboats carrying 80 armed militants ofthe People's Liberation Organisation ofTamil Eelamlanded in Maldives and along with allies who had infiltrated the country, began takingoverthe government. The plot, planned in Sri Lanka by the Tamil nationalist group was believed to

be an attempt by a Maldivian businessman and politician opposed to the regime ofthe President ofMaldivesMaumoon AbdulGayoomto gain control while the PLOTE sought a safe haven and baseforits activities.[2][3]

The militants took control ofthe airportin Male, the national capital, but failed to capture thePresident ofMaldivesMaumoon AbdulGayoom, who had fled and asked for military aid from Indiaon November 3.

[1][2]The then-Indian Prime MinisterRajiv Gandhi ordered 1,600 troops to aid the

Maldivian government. In a military operation codenamed "Operation Cactus," Indian forces arrivedwithin 12 hours ofthe request for aid being made, squashed the coup attempt and achieved fullcontrol ofthe country within hours. 19 PLOTE militants were killed and 1 Indian soldier wounded.

India's intervention was endorsed by other nations such as the United States, Soviet Union, Great

Britain and its neighboursNepal and Bangladesh.[1][2][3] Its speedy and decisive victory and therestoration ofthe Maldivian government brought both nations even closerin friendship and

cooperation.[1][2][3]

In wake ofinternal security crises and tensions with Sri Lanka, Maldives saw itsrelationship with India as a source of future security.[2][3]


11/15

Commercial relations

Since the success of Operation Cactus, the relations between India and Maldives have expandedsignificantly.

[2][3]India has provided extensive economic aid and has participated in bilateral

programs forthe development ofinfrastructure, health, civil aviation, telecommunications and labour

resources.

[2][3]

It established the Indira GandhiMemorial Hospitalin Male, the capital ofMaldives,expanded telecommunications and airlinks and increased scholarships forMaldivian students.[2]While India's exports to Maldives during 2006 were worth Rs. 384 crores, imports were worth lessthan Rs. 6 crores.[4] The State Bank of India has contributed more than USD 500 million to aid theeconomic expansion ofMaldives.

[4]India and Maldives have announced plans tojointly workto

expand fisheries and tuna processing.[4]

Military relations

On 7 March 2005 Defence Attach's Office (DAO) was established in the High commission oftheRepublic ofMaldivesin India by making Lt.ColonelAbdulla Shamaal as first defense attach. This

was the firstDefence Attach's office set up abroad. Given, that defence relations is a major

component ofthe Indo-Maldives bilateral relations and both counties have a long record ofstrengthening their defense ties through a wide range of activities, such as Military Joint Exercises,exchange of visits of senior officers ofthe Armed forces, training oflarge number of defenseservices personnel from the Maldives at Indian defense establishments, provision of military aid, andintelligence and information sharing, the necessity for a DAO was felt. Hence, the DAO wasinstituted to further strengthen and consolidate the already existing bilateral defense relations in amutually beneficial manner. As a result, the DAO functions as the primary mechanism integrated inthe residentMission ofthe Republic ofMaldives in New Delhi, India to guide direct and coordinatedefense ties between the two countries.

On April 2006 Indian Navy gifted a TrinkatClass Fast AttackCraft of 46m length to MaldivesNational Defence Force's CoastGuard

India startthe process to bring the island country into Indias security grid. The move comes afterthemoderate Islamic nation approached New Delhi earlierthis year[vague] over fears that one ofits islandresorts could be taken over by terrorists given its lack of military assets and surveillance capabilities.[5] India is also signing an agreementlaterthis year which includes following things.

y India will per anently base two helicopters in the country to enhance itssurveillance capabilitiesand ability to respond swiftly to threats. One helicopter from the Coast Guard is likely to be handed

over during Antonysvisit while another from the Navy will be cleared for transfershortly.

y Maldives has coastal radars on only two of its 26 atolls. India will help set up radars on all 26 forseamless coverage of approaching vessels and aircraft.

y The coastal radar chain in

M

aldives will be networked with the Indian coastal radarsystem. India hasalready undertaken a project to install radars along itsentire coastline.Theradar chains of the two

countries will be interlinked and a central control room in Indias Coastal Command will get a

seamlessradar picture.

y The Indian Coast Guard (ICG) will carry out regular Dorniersorties over the island nation to look outforsuspicious movements orvessels.The Southern Naval Command will overlook the inclusion of

Maldives into the Indian security grid.

y Military teams fromMaldives will visit the tri-services Andaman Nicobar Command (ANC) to observehow India managessecurity and surveillance of the critical island chain.


12/15

India Sri Lanka relations

Indo-Sri Lankan relations

India Sri Lanka

Bilateral relations between the Democratic Socialist Republic of Sri Lanka and the Republic of

India have been generally friendly, but were controversially affected by theSri Lankan civil warand

by the failure ofIndian intervention during the war. India is the only neighbour of Sri Lanka,

separated by the Palk Strait; both nations occupy a strategic position inSouth Asia and have sought

to build a common security umbrella in theIndian Ocean.[1]

The two largest ethnic groups of Sri Lanka areSinhala and Tamil.

Develo ment of bilateral relations

India and Sri Lanka established diplomatic relations when the latter gained its independence in 1948.

Both nations proceeded to establish extensive cultural, commercial, strategic and defence ties to

establish a common sphere of influence in the region, adopting non-alignment to control Western and

Soviet influence.[2] The close relationship between the then-Indian Prime MinisterIndira andhi and

then-Sri Lankan Prime MinisterSirimavo Bandaranaike led to the development of strong bilateral

relations.[2]

In 1971, Indian armed forces helped squash a Communist rebellion against the Sri

Lankan government.[1]


13/15

Indian intervention in the ri Lankan civil war

Main articles: Indian intervention in the Sri Lankan Civil War, Indian Peace Keeping Force, Indo-Sri Lanka

Accord, andOperation Poomalai

In the 1970s-1980s, private entities and elements in the state government ofTamil Nadu werebelieved to be encouraging the funding and training forthe Liberation Tigers of Tamil Eelam, a

separatistinsurgent force.[2][3]

.In 1987, faced with growing anger amongstits own Tamils, and aflood of refugees,

[4]India intervened directly in the conflict forthe firsttime afterthe Sri Lankan

government attempted to regain control ofthe northern Jaffna region by means of an economicblockade and military assaults, India supplied food and medicine by air and sea. After subsequentnegotiations, India and Sri Lanka entered into an agreement. The peace accord assigned a certaindegree of regional autonomy in the Tamil areas with Eelam People's Revolutionary Liberation Front(EPRLF) controlling the regional council and called forthe Tamil militant groups to lay down theirarms. Further India was to send apeacekeeping force, named the IPKFto Sri Lanka to enforce thedisarmament and to watch overthe regional council.[2][5][6][7]

Even though the accord was signed between the governments of Sri Lanka and India, with the TamilTigers and other Tamil militant groups not having a role in the signing ofthe accord

[8], most Tamil

militant groups accepted this agreement,[9]the LTTE rejected the accord because they opposed thecandidate, who belonged to another militant group named Eelam Peoples Revolutionary LiberationFront (EPRLF), for chief administrative officer ofthe merged Northern and Eastern provinces[6].Instead the LTTE named three other candidates forthe position. The candidates proposed by theLTTE were rejected by India.[10] The LTTE subsequently refused to hand overtheir weapons to theIPKF.[8]

The result was thatthe LTTE now found itself engaged in military conflict with the Indian Army,and launched their first attack on an Indian army rations truck on October 8, killing five Indian para-commandos who were on board by strapping burning tires around their necks.[11] The government of

India then decided thatthe IPKF should disarm the LTTE by force,[11] and the Indian Army launchednumber of assaults on the LTTE, including a month-long campaign dubbed Operation Pawanto wincontrol ofthe Jaffna peninsula from the LTTE. When the IPKF engaged the LTTE, the then presidentof Sri Lanka, Ranasinghe Premadasa, began supporting LTTE and funded LTTE with arms [6]. Duringthe warfare with the LTTE, IPKF was also alleged to have made human rights violation againstthe

civilians. Notably, IPKF was alleged to have perpetrated Jaffna teaching hospital massacre whichwas the killing of over 70 civilians including patients, doctors and nurses.[12] The ruthlessness ofthis

campaign, and the Indian army's subsequent anti-LTTE operations made it extremely unpopularamongst many Tamils in Sri Lanka.[13][14]. The conflict between the LTTE and the Indian Army left

over 1,000 Indian soldiers dead.[1][2]

The Indo-Sri Lankan Accord, which had been unpopular amongst Sri Lankans for giving India amajorinfluence, now became a source of nationalist anger and resentment as the IPKF was drawnfully into the conflict. Sri Lankans protested the presence ofthe IPKF, and the newly-elected SriLankan presidentRanasinghe Premadasa demanded its withdrawal, which was completed by March1990.[2]. on May 21, 1992, Rajiv Gandhi was assassinated and the LTTE was alleged to be the

perpetrator. As a result India declared the LTTE to be a terrorist outfitin 1992. Bilateral relationsimproved in the 1990s and India supported thepeace process but has resisted calls to getinvolvedagain.

[15]India has also been wary of and criticised the extensive military involvement ofPakistanin


14/15

the conflict, accusing the latter of supplying lethal weaponry and encouraging Sri Lanka to pursuemilitary action ratherthan peaceful negotiations to end the civil war.[16]

Commercial ties

India and Sri Lanka are member nations of several regional and multilateral organisations such as theSouth Asian Association forRegionalCooperation (SAARC), South Asia Co-operative Environment

Programme, South Asian Economic Union and BIMSTEC, working to enhance cultural andcommercialties. Since a bilateralfree trade agreement was signed and came into effectin 2000,

Indo-Sri Lankan trade rose 128% by 2004 and quadrupled by 2006, reaching USD 2.6 billion.[17][18]

Between 2000 and 2004, India's exports to Sri Lanka in the last four years increased by 113%, from

USD 618 million to $1,319 million while Sri Lankan exports to India increased by 342%, from $44million to USD $194 million.

[17]Indian exports account for 14% of Sri Lankas globalimports. India

is also the fifth largest export destination for Sri Lankan goods, accounting for 3.6% ofits exports.[17]

Both nations are also signatories ofthe South Asia Free Trade Agreement (SAFTA). Negotiationsare also underway to expand the free trade agreementto forge stronger commercial relations andincrease corporate investment and ventures in various industries.

[18]The year 2010 is predicted to be

the best year for bilateraltrade on record, with Sri Lanka's exportsto India increasing by 45% overthe first seven months ofthe year[19]

India's National Thermal PowerCorp (NTPC) is also scheduled to build a 500 MW thermal powerplantin Sampoor (Sampur). The NTPC claims thatthis plan willtake the Indo-Srilankan relationshipto new level.

[20]

Fishermen Issue

There have been severalincidents of firing on Indian fishermen fishing in PalkBay.IndianGovernment has always taken up the issue of safety of Indian fishermen on a priority basis with theGovernment of Sri Lanka. Presently there is no bona fide Indian fisherman in the Sri Lankancustody. A Joint Working Group (JWG) has been constituted to deal with the issues related to Indianfishermen straying in Sri Lankan territorial waters, work out modalities for prevention of use of forceagainstthem and the early release of confiscated boats and explore possibilities of working towards

bilateral arrangements forlicensed fishing. The JWGlast metin Jan 2006.

Development Cooperation

India is active in a number of areas of development activity in Sri Lanka. About one-sixth ofthe totaldevelopment credit granted by GOI is made available to Sri Lanka.

Lines of credit: In the recent pastthree lines of credit were extended to Sri Lanka: US$ 100 million

for capital goods, consumer durables, consultancy services and food items, US$ 31 million forsupply of 300,000 MT of wheat and US$ 150 million for purchase of petroleum products. All ofthese lines of credit have been fully utili ed. Anotherline of credit of US$ 100 million is now beingmade available for rehabilitation ofthe Colombo-Matara railway.

A number of development projects are implemented under Aid to Sri Lanka funds. In 2006-07, thebudget for Aid to Sri Lanka was Rs 28.2 Crs.


15/15

Small Development Projects: A MoU on Cooperation in Small Development Projects has beensigned. Projects for providing fishing equipments to the fishermen in the East of Sri Lanka and solar

energy aided computer education in 25 rural schools in Eastern Sri Lanka are under consideration.

Health Projects: We have supplied medical equipments to hospitals at Hambantota and Point Pedro,supplied 4 state ofthe art ambulances to the Central Province, implemented a cataract eye surgery

programme for 1500 people in the Central Province and implemented a project of renovation of OTat Dickoya hospital and supplying equipmentto it.

The projects under consideration are:Construction of a 150-bed hospital at Dickoya, upgradation ofthe hospital at Trincomalee and a US$ 7.5 million grant for setting up a Cancer Hospitalin Colombo.

Education Projects: Upgradation ofthe educationalinfrastructure ofthe schools in the Central

province including teachers training, setting up of 10 computerlabs, setting up of 20 e-libraries(Nenasalas), Mahatma Gandhi scholarship scheme for +2 students and setting up of a vocational

training centre in Puttalam. India also contributes to the Ceylon Workers Education Trustthat givesscholarships to the children of estate workers.

Training: A training programme for 465 Sri Lankan Police officers has been commenced in Dec2005. Another 400 Sri Lankan Police personnel are being trained forthe course of Maintenance ofPublic Order.

indian relations

Documents