India’s Economic Opportunities in Central Asia
India needs to use economic leverages more efficiently to build closer ties with Central Asia.
- P. Stobdan
- 2018 |
- Policy Brief
- |
India needs to use economic leverages more efficiently to build closer ties with Central Asia.
The value of the Caspian energy reserve lies in its potential to add to global reserves of oil and gas, which, in turn, could bring down costs.
Read MoreWhile broad agreement at the top leadership level has been easy to achieve, negotiations relating to defence equipment and technology cooperation have proved to be difficult, shaped as these are by a complex interplay of variables like cost-competitiveness, technology transfer and domestic politics.
India must jettison the attempt to maintain a balance between China and the US and instead take advantage of China’s internal and external vulnerabilities to gain an upper hand in the asymmetric power equation that has developed.
Prime Minister Narendra Modi’s recent tour of Rwanda, Uganda and South Africa increased to 26 the number of African countries visited by very senior leaders, thus contributing to a significant reduction in India’s visibility deficit in the continent.
A journalist by profession, Kallol Bhattacherjee has written extensively on South Asian affairs and on conflicts in the Middle East and North Africa. In writing The Great Game in Afghanistan, he has researched extensively into the personal records of John Gunther, who was the United States (US) Ambassador to India between 1985 and 1988. The author was also fortunate to be able to hold extensive interviews with Gunther post-2014 with Ambassador Ronen Sen, who was Rajiv Gandhi’s diplomatic aide in the Prime Minister’s Office (PMO) during this crucial period.
The upper riparian China is uniquely positioned to influence the flow of Yarlung Tsangpo/Brahmaputra into lower riparian India. In the absence of a water sharing treaty, the Chinese decision to build more dams on Yarlung/Brahmaputra and continued evasiveness on its long-term plans would remain an issue of major concern for India.
Given that Iran accounts for around 10 per cent of India total oil imports, the immediate factor for New Delhi will be to look at various options to deal with the situation without jeopardising its energy security.
Prime Minister Narendra Modi has made a foreign policy course-correction after realising that the strategic tilt towards the United States has not only grossly upset India’s geopolitical image but also undermined national interests.
Of late the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is receiving sincere attention from its member countries as an organisation that has the potential to transform the region’s political and economic future. This is because there are several bilateral and sub-regional ongoing projects that are seeking to connect the region and bind them together into one economic whole. Apart from this, after the cancellation of the SAARC (South Asian Association for Regional Cooperation) summit in 2017, many would see the BIMSTEC as an alternative to SAARC.



