The associated risks can come from (i) rising Oil prices, (ii) rising interest rates due to fiscal deficit, and (iii) synchronous global market correction as US multi-year economic expansion is behind India.

Bond Interest Rate and the Stock Market

In the month of February, the bond investors were revolting against the bond market interest rate. As a result of which reflation (stimulating the economic output by means of fiscal stimulus or reduction in taxes)- the guiding light of treasuries betting on rebounding growth is proving to be resilient. Long-term Treasury yields touched the highest in almost a year, the market stumbled on the expectations of inflation that accelerated to the fastest pace since 2014 and the yield curve reached the steepest levels in more than 5 years (Bloomberg, 2021). 

The reflation trade paused for a while after the government press release on 10 February showed the consumer-price inflation to be revolving around 1.4% annually, which was lower than expected. According to Michael Pond, global head of inflation strategy at Barclays, the CPI report was a disappointment as it doesn’t change the outlook of investors and there is no expectation that it will change investors’ views about expected inflation (Bloomberg, 2021).

Hence the theme of reflation is based on a story about where inflation will move once the majority of the citizens are vaccinated and demand normalisation. 

Does a Change in the Federal Reserve Interest Rate on New Bonds Stimulate the Indian Market?

After Joe Biden swearing as the 46th US President and taking over his role in the White House, the Fed, the central bank of the US has been closely involved in changing the interest rates on new bonds in the month of February. For an emerging economy like India, these changes have a significant effect. The India investors whose speculations are based on the daily movements in the world stock markets are of the view that the decision of the Fed to decrease the interstate rate on bonds will be welcomed by the citizens as the economy struggles to revive from the COVID-19 pandemic. The ultimate goal is to infuse liquidity in the market so that citizens have cash in their hands which will help to pull up the demand in India. 

The Fed expected its interest rate to be close to zero and signalled that it will remain close to zero in many years to come. This is a part of a long-term strategy that the Fed adopted in the year 2020 that proved to be helpful while navigating a world of persistently low-interest rates that makes it difficult to hit its 2 percent inflation goal (Reuters, 2020). 

A sharp increase in demand as Covid-19 inoculations allow more of the economy to reopen could push inflation above the Fed’s 2 per cent target. If markets push up long-run interest rates a bit to reflect expectations for future faster growth, the Fed likely wouldn’t change course. That’s consistent with the new framework if the economy hasn’t achieved sustained 2 percent inflation by then (Reuters, 2020).

RBI Having a Tough Time in Keeping a Check on Bond Yields

After the release of Union Budget 2021, RBI is under constant pressure to keep the traders of bond calm. Although a higher fiscal deficit was expected, it rose to 9.5% as a percentage of India’s GDP for FY21 and is forecasted to touch 6.8% in FY22. A higher fiscal deficit came as a daunting news for the bond market which led to a surge in bond yields. 

There is an estimate made that the market borrowing of the central government will be at Rs 12 lakh crore in FY22. There is an increased supply of government bonds in the market that could lead to a demand-supply gap, thus putting pressure on yields. The investors in the government bonds are receiving higher yields thereby causing a similar demand on corporate bonds (ET Contributors, 2021). This leads to a rise in borrowing cost for corporates, thereby negatively impacting private investments in the country. In addition, higher bond yields further complicate the transmission process of the rate cut by the central bank (ET Contributors, 2021).

The responsibility now falls on the shoulders of RBI to keep a check on bond yields. In the last bi-monthly Monetary Policy meeting (MPC), there were no announcements made in this regard. As the economy is currently recovering from a recessionary phase, the phase of increase in inflation is getting stronger (ET Contributors, 2021). 

Thus given the current circumstances, RBI would be having a tough time in keeping the check on yields. The central bank has to deal with two-fold problems: on one hand to check the inflation while on the other hand has to handle the market borrowings from both the central and state governments. RBI needs to actively participate in the bond market and communicate well with the market participants in order to ensure that the bond yields are in check. 

Pandemic Fatigue Leading to a Fear of Lockdown

As news around the second wave, COVID-19 pandemic in foreign countries like UK, US, Australia are reaching the Indian households, residents are in a fist that there might be phased lockdown across the states in India. Several states like Maharashtra, Uttar Pradesh, Gujarat and Kerala are recording a spike in COVID-19 cases again which is directing the state and central government to impose night curfews in these states. Cities like Mumbai, Pune, Amravati, Aurangabad, Ahmedabad are already observing night curfews due to a rapid hike in COVID-19 cases. 

In a recent report released by Union Health Ministry, the primary reasons for the growing number of cases in few states were reported as – COVID inappropriate behaviour due to “lack of fear of disease”, pandemic fatigue, missed cases, super spreading events and crowds due to recent gram panchayat elections, marriages, reopening of schools, and crowded public transport.

The Recent INR-USD Change

The US Dollar to Indian Rupee Exchange Rate measures the ratio between the US Dollar and the Indian Rupee. Exchange Rates can be used to measure the relative health of an economy versus another. Exchange rates are also important in corporations that operate worldwide because they will directly impact their financials (YC, 2021).

US Dollar to Indian Rupee Exchange Rate is at a current level of 73.92, up from 72.74 the previous market day (February 25, 2021)  and up from 71.65 one year ago. This is a change of 1.62% from the previous market day and 3.17% from one year ago (YC, 2021). 

F&O Cues

F&O stands for Future and Options. These are the major types of stock derivatives traded in a share market. These Derivatives are the financial instruments deriving their values from an underlying such as currency, gold, or the stocks of a company.

Such contracts try to hedge market risks involved in stock market trading by locking in the price beforehand.

• Nifty February futures ended at 15,195; premium of 22 points 
• Nifty February futures add 1.2% and 1,745 shares in Open Interest
• Nifty Bank February futures ended at 35,854; premium of 102 points
• Nifty Bank February futures add 4.3% and 2,621 shares in Open Interest 
• Nifty Put-Call Ratio at 1.48 Out of F&O Ban: Sun TV Stocks In F&O Ban: BHEL, SAIL 

Brief on FII and DII Trading Activities during February 2021

Foreign Institutional Investors (FII) is the term used for investors who belong to foreign lands and are interested in putting their money in the Indian stock market. These are available in various forms such as mutual funds, investment trusts and pension funds. Domestic Institutional Investors (DII), on the other hand, refer to the investors belonging to India who invest their money in the Indian stock market. This comprises domestic mutual funds, banking and financial institutions, insurance companies and domestic pension funds (Dhanorker, 2020).

Indian stock market attracts millions of investors annually. These investors are primarily driven by institutional money. Both FIIs as well as DIIs constitute the major part of liquidity in the stock market. Therefore the effective tracking of their inflows and outflows are helpful in forecasting the broader trends in the markets. FIIs are believed to have a greater influence on the domestic markets along with the sustained flows from DIIs (Dhanorker, 2020). The countries which constitute a major portion of FII inflows into India are listed below. 

The performance of FIIs and DIIs have been carefully traced to meet the expectations of the investors during the month of February 2021. One of the primary reasons behind this is that the year 2021 will mark the arrival of the COVID-19 vaccine followed by the economic recovery that will see the Indian government taking stimulus measures to cope with the weak performance of the Indian economy during the COVID-19 pandemic. So it becomes of utmost importance to keep a track of previous FII and DII trading activities. 

The above table shows the trading activities of FIIs and DIIs from December 2020 to February 2021. There has been a continuous increase in the gross purchase of FII from Rs. 182 crores (approximately) in December 2020 to Rs. 223 crores (approximately) in February 2021. The gross sales of FII also increased from Rs 134 crores (approximately) in December 2020  to Rs. 180 crores (approximately) in February 2021. This increase was sharp for the month of  January and February because of the speculations surrounding the foreign investors due to the successful release of the COVID-19 vaccine and vaccination of common citizens which ultimately registered a steep increase in the net purchase/sales for the FIIs. 

Similarly, DIIs showed an impressive improvement in their performance as their gross purchases increased threefold from Rs. 84 crores (approximately) in December 2020 to Rs. 104 crores (approximately) in February 2021. Due to the restrictions on the movement across the borders and closing of the economies worldwide, the domestic investors started putting their money in the Indian stock market as a result of which the gross purchase increased. However, the gross sales had reduced from December  2020 to January 2021 2020 but increased during February 2021. 

Conclusion

In my opinion, the COVID-19 pandemic in 2020 delivered some of the greatest shocks to the global economies since World War II. The entire economies have been locked down and people adjusted to the new ways of working, studying and socialising. There are millions of people who have lost their jobs and became unemployed as a result of which inequality and poverty soared. The globalised economies acting as lifelines to billions of people worldwide has suddenly become vulnerable, owing to the disruptions of the global supply chains and government strategies to protect domestic stock market. Given the persistence of COVID-19, the recovery in 2021 will largely depend on how effectively the vaccine is distributed and how the various industry stakeholders reacted to the Union Budget 2021-22. The multidisciplinary robust approach will be required to mitigate the ill-effects of the pandemic and to address longer-term challenges posed by climate change. For this current and former political leaders, scholars, academicians, senior policymakers should provide exclusive analyses of the tasks that lie ahead in order to ensure that we are ready to meet the forthcoming challenges. 

References

Bhise, R. (2021, February 11). February 2021 Stock Market Outlook. investment shastra. https://www.moneyworks4me.com/investmentshastra/february-2021-stock-market-outlook/

Bloomberg. (2021, February 14). Bond market reflation trade absorbs punch to extend 2021 advance. Economic Times. https://economictimes.indiatimes.com/markets/bonds/bond-market-reflation-trade-absorbs-punch-to-extend-2021-advance/articleshow/80906847.cms?from=mdr

Dhanorker, S. (2020, June 29). What stocks are FPIs, FIIs and DIIs buying and selling? Economic Times. https://economictimes.indiatimes.com/wealth/invest/retail-investors-urged-to-stay-away-from-gamestop-inspired-communities/articleshow/80663373.cms

ET Contributors. (2021, February 18). Why is RBI having a tough ride in keeping bond yields in check. Economic Times. https://economictimes.indiatimes.com/markets/bonds/why-is-rbi-having-a-tough-ride-in-keeping-bond-yields-in-check/articleshow/81088372.cms?from=mdr

Reuters. (2020, December 16). Fed will be tested in 2021 as vaccines boost US economic outlook. Economic Times. https://economictimes.indiatimes.com/markets/stocks/news/fed-will-be-tested-in-2021-as-vaccines-boost-us-economic-outlook/articleshow/79751536.cms?from=md

YC. (2021, March 7). US Dollar to Indian Rupee Exchange Rate 73.92 INR/1 USD for Feb 26 2021. Charts. https://ycharts.com/indicators/us_dollar_to_indian_rupee_exchange_rate_h10

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India-Turkmenistan Foreign Office Consultations

Virtual Foreign Consultations between the Indian Republic and Turkmenistan was held on the 13th of January, 2021. The Indian delegation was led by Shri Vikas Swarup, Secretary (West), while the delegation from Turkmenistan was led by H.E Mr. Vepa Hajiyev, Deputy Minister of Foreign Affairs of Turkmenistan.

The primary rationale behind the consultations was to undertake a systematic review of bilateral relations between the two countries. This included political, economic, commercial, defense, and consular cooperation. Both sides used the opportunity to exchange views on regional and international issues of mutual interests and agreed to enhance cooperation in the United Nations and the multilateral arena.

3rd Senior Officials Meeting of Arab-India Cooperation Forum

On the 12th of January 2021, the third India-Arab Cooperation Forum took place. The Forum meeting was co-chaired by Shri Sanjay Bhattacharyya, Secretary (CPV&OIA), and Ambassador Mohamed Abu Al-Kheir, Assistant Foreign Minister and Permanent Representative of Egypt to the League of Arab States with the participation of Senior Officials from the Arab States and India, as well as the General Secretariat of the League of Arab States.

The Representative hailed the strong foundation, great potential, and wide-ranging prospects for Arab-India cooperation. They also used the opportunity to recall the historic ties between the Arab world and India. Through the Forum, the leaders stressed the need for political solutions to regional issues and crisis in the Middle East, particularly the Palestinian issues, the crisis in Syria, Libya, and Yemen, and underscored the need for cooperation in combating terrorism and ensuring freedom of navigation and maritime security, according to the principles of international law.

The Arab side congratulated the Republic of India on its election as a non-permanent member of the UN Security Council for a two-year term (2021-2022), while looking forward to India’s continuing pivotal role at the international stage, particularly concerning regional issues of mutual concern. They agreed on the early scheduling of the joint activities of the Forum, including the 3rd Session of Arab-India Cultural Festival, the Symposium on Arab-India Cooperation in the field of Energy, the 1st Arab-India University Presidents Conference, the 2nd

Symposium on Arab-India Cooperation in the field of Media, and the 6th Session of Arab-India Partnership Conference.

India and France hold Strategic Dialogue

Shri Ajit Doval, National Security Advisor, led the Indian delegation during the India-France Strategic Dialogue. The French delegation was led by Mr. Emmanuel Bonne, Diplomatic Advisor to the French President.

The Strategic dialogue between the two countries included discussions on a variety of issues including counter-terrorism, cybersecurity, defense cooperation, and the Indo-Pacific region. Both sides reaffirmed the high priority they accord to the India-France strategic partnership and highlighted the convergence of views between the two countries.

Following his meeting with Shri Ajit Doval, the French advisor called upon the Prime Minister, Shiri Narendra Modi, the Defence Minister, and the External Affairs Minister. He also addressed the Vivekananda International Foundation on “France and India: Partners for a stable and prosperous Indo-Pacific.

India-Germany Leaders’ Video-Teleconference

The Indian Prime Minister Shri Narendra Modi held a video conference with his German counterpart, Federal Chancellor Dr. Angela Merkel. The Prime Minister started the exchange by appreciating, Dr. Merkel’s long-standing role in providing stable and strong leadership at the European and global stage, and thanked her for strengthening the India-Germany Strategic Partnership.

The two leaders discussed key issues of mutual importance including the response to the COVID-19 pandemic, bilateral ties, regional and global issues, particularly India-EU relations. The Prime Minister used the opportunity to brief his German counterpart on the developments in India with regard to vaccine development and assured her of India’s commitment to using its capacity for the betterment of all countries.

The Prime Minister welcomed Germany’s decision to join the International Solar Alliance (ISA) and expressed his desire to further strengthen cooperation with Germany under the platform of Coalition for Disaster Resilient Infrastructure (CDRI). The two heads of state agreed to hold the sixth Intergovernmental Consultations at an early date in 2021, and to create an ambitious agenda for the same, given that this year marks the 70th anniversary of setting up bilateral relations between India and Germany.

Exchange of list of prisoners between India and Pakistan

Keeping with the provisions of the 2008 Agreement, The Indian Republic and the Islamic Republic of Pakistan exchanged lists of civilian prisoners and fishermen in their respective custody. The Indian government handed over a list of 263 Pakistani civilian prisoners and a list of 77 fishermen. The Pakistan government’s list included 49 Indian Civilians and a total of 270 fishermen, who according to the Islamic Republic are Indians or believed to be Indians.

Upon the exchange of lists, the Indian government asked to expedite the release and repatriation of 3 Indian civilian prisoners and 185 Indian fishermen, whose nationality has been confirmed and conveyed to Pakistan. Additionally, the Indian government has requested consular access to Indian fishermen and 22 civilians prisoners who are believed to be Indians. In keeping with the 2008 agreement, the Indian government requested access for Indian medical personnel to assess the mental conditions of the believed to be Indian prisoners.

At the exchange, the Indian government reaffirmed its priority towards all humanitarian matters, including those pertaining to prisoners and fishermen in both countries. In view of the COVID 19 pandemic, the Indian government requested the Pakistan government to ensure the safety, security, and welfare of all Indians and believed- to-be Indian civil prisoners and fishermen.

India Delivers Humanitarian Assistance & Disaster Relief Support to Fiji after Tropical Cyclone Yasa

The Fiji islands were hit by a category 5 Tropical Cyclone Yasa in December. The Cyclone caused massive damage to the islands. In light of this natural calamity, the Indian government decided to provide humanitarian assistance through material aid. The relied material provided by the Indian government included shelter and hygiene kits, the government additionally also agreed to provide immediate assistance to the cyclone-affected communities.

A massive undertaking of this nature was possible owing to the work carried out by the National Disaster Response Force (NDRF) and were airlifted to the Fiji Islands, with the help of Air India and the Fiji Islands, through Sydney, Australia. India stood by Fiji during times of crisis and devastation, as this was not the first time that India provided the country assistance. Back in 2016, India was the leading nation to undertake humanitarian work on the islands following Tropical Cyclone Winston in 2016. India’s actions speak of its commitment to provide Humanitarian Assistance and Disaster Relief support to friendly Foreign Countries as a first responder. India’s leadership role in the Indo-Pacific is in line with the Indo-Pacific Oceans initiative announced by Prime Minister Narendra Modi in 2019.

Telephone Conversation between Prime Minister Shri Narendra Modi and Prime Minister of UK The Rt Hon Boris Johnson

The Indian Prime Minister, Shri Narendra Modi conducted a telephone conversation with the British Prime Minister, The Rt Hon Boris Johnson. Mr. Johnson appreciated the Indian government’s invitation to the Republic Day, but regretted his inability to attend, given the changed COVID 19 context in the UK.

The leaders reviewed ongoing cooperation between the two countries. Prime Minister Modi, congratulated Mr. Johnson and his government for achieving the

highest vaccination numbers in Europe. The two leaders agreed to cooperate in the near future to make the COVID 19 vaccines available for the world. Lastly, the heads of state reiterated their shared belief in the potential of the India-UK partnership in the post-Brexit, post-Covid context, and agreed to work towards a comprehensive roadmap for realizing this potential.

Conclusion

Keeping aside the boiling tensions in the United States, we have noted a trend in geopolitical actions, wherein states have adopted a more cooperative attitude. This is particularly true with India, as can be seen through the points that we have covered in the report. In the coming months, it would be interesting to see the nature of the relationship that the Indian government develops with the Biden- Harris administration, and this would affect its policies in the Indo-pacific and the Middle East.

Also Read: INDIA’S FOREIGN POLICY REPORT — EDITION #8

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Factors shaping the market trends

The trends in the equity markets are influenced by several factors that shape the decision of an investor of whether or not to invest their money in the alternate forms like equities, bonds or securities. These factors are helpful in providing insights into how future trends may occur. Some of the factors are explained below:

• Government – Government plays a key role in shaping the market trends by means of altering the interest rates and the availability of dollars. The change is accompanied by the increase or decrease in investment flows into and out of the country which in turn causes a profound impact on the financial marketplace. 

• International Transactions – The funds that flow between the countries directly affect the currency and economy of the country. The money that flows into the economy due to the fact that the countries indulge in exporting more products and services can be further reinvested that can stimulate the equities and financial markets in the respective countries.

• Speculation and Expectation – Speculation and expectations form the basis of shaping the decision of the investor regarding the time when the money needs to be invested in financial markets. Every economic agent like consumers, businessmen, investors and politicians have different views when it comes to foreseeing the direction in which the economy will move in the future. They speculate various expectations about the future trends in the markets which depend on current acts. The technique which is employed to analyse the perceptions and feelings of individuals about the current state of the economy is called sentiment indicators. These indicators along with the other forms of analysis like fundamental and technical analysis give insights into the market by creating a bias of future prices and trend direction. 

• Supply & Demand – The dynamics in prices are affected by the market forces such as supply and demand for various products, currencies and other investments. In financial markets, the stocks fluctuate in the short and long run, thus causing trends. Buyers will buy the stocks and assets at higher prices if the supply is eroding at the current prices which creates large price increases. On the contrary, there will be downward movement in the prices due to the entry of a large number of sellers which would increase the stock available in the market. This process takes place on all time frames. 

All the above-mentioned factors closely affect one another as they are closely linked. Government mandates like news releases, change in tax policy, the Fed decided to maintain the interest rate affect international transactions which further causes fluctuations in international transactions and thus in the financial markets. 

Changing the dynamics of the Global Financial Market during the COVID-19 pandemic 

The above figure showcases the returns to some of the major stocks in the world financial countries. When the number of COVID-19 cases was increasing at a faster rate, markets reacted to the announcements made by several pharmaceutical companies like BioNTech, Moderna and AstraZeneca on the release of vaccines that proved to be efficient in reducing the causes of COVID-19. The next major step was to ensure the quick and equitable manufacturing, distribution and administration of the vaccines on the large scale. The emerging markets are in the process of pre-ordering the AstraZeneca/Oxford vaccines so are eagerly waiting for the approval and release of the vaccines in the market (Morgan, 2020). With the governments making continuous efforts to control the virus worldwide, the path to recovery still looks blurred. For example in Europe, there has been a significant decline in the number of new infections due to the frequent lockdown measures taken by the authorities. In the US, the situation is a bit different with the rise in new cases despite the measures taken by the government. However high-frequency data has shown that these restrictions cause a slowdown in the economy. Thus markets are believed to foresee the economic developments in terms of better times on horizon in both short as well as long run. 

Following the decisions made by the governments in Europe, the UK government reintroduced measures to curb the spread of the virus. In the process, the business and households were provided with monetary help through furlough scheme. According to the forecasts made by The Office for Budget Responsibility, the government borrowing will account for about 19.4% of GDP which is an alarming figure not seen since the end of the Second World War. 

The Bank of England (BoE) made announcements to increase its asset purchase facility by about British Pound Sterling (GBP) 150 million. With the equity market, the performance in December was dominated by this year’s losers, as the economy is slowly returning to normality. This in turn is followed by the continued recovery of the earnings expectations provided the support to the equities. For the investors and individuals who are thinking to diversify their portfolio beyond equities, an equitable allocation to macro funds and real assets will be helpful.  

Monthly switching impacting on Global Market Indices

With the optimism surrounding the global wave of COVID-19 vaccines, the MSCI-EAFE Index recorded a jump of 16.86% in December. The European Financial markets started performing much better, with higher gains in countries like France, Italy, Germany and the UK. This was achieved as the European markets focussed on the prevention of the obstacles in the path of the EU recovery package. The Asian financial system also performed better. China picked up 9.27% while India outperformed the other emerging markets with a jump of 11.45%. The markets in the Pacific region also had a good month. With Australia recording a jump of 9.96% while Japan recording one of the highest jumps of 15.04%. 

The equities outperformed the bonds and currencies in the financial markets. The world equities index stood at 9.3%. There were higher returns in countries like Europe, the UK and Latin America. The emerging markets also showed satisfactory returns with 5.8%. On the other hand, the bonds and currencies registered negative returns across the countries worldwide. Individuals and investors speculated the declining growth of economies and uncertainties in the global financial markets due to COVID in the near future. Hence they preferred equities over government bonds and currencies in the hope of better returns. 

Conclusion

While the path to COVID-19 recovery still looks blurred, there will be optimism surrounding the investors and businesses in the global financial markets. This will restore the trust of the investors who will be looking forward to the release of the vaccine so that they can accordingly shape their investment preferences. However, it becomes extremely important to analyse the growing need for financial instruments and institutions in the financial market. With the large number of capitals involved in the market, any fluctuations in these investments will have an impact on both the economics of different countries as well as on the participants of the financial global markets. Therefore the proper understanding of the management and transparency becomes essential. 

Bibliography

Ghulam, & Diamond, N. (2016). Analysis of Financial Markets. LAUREA, VII(3), 32. 7 November

Greenwood, R., Hanson, S. G., & Jin, L. J. (2019, June 7). Reflexivity in Credit Markets. Harvard Business School, VI(2), 23. https://hbswk.hbs.edu/item/reflexivity-in-credit-markets

Jones, D. (2020, December 10). Monthly Market Insights- December 2020. Conscious Capital Wealth Management. https://www.consciouscapitalwm.com/campaigns/monthly-market-insights

Morgan, J.P. (2020, December 1). Monthly Market Review. J.P. Morgan Asset Management. https://am.jpmorgan.com/ch/en/asset-management/institutional/insights/market-insights/market-updates/monthly-market-review/

Featured Image Source: Reuters

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Consultations between Secretary (East) and Republic of Korea First Vice Foreign Minister

Consultations were held between Ms. Riva Ganguly Das, Secretary(East), MEA, and the First Vice Foreign Minister Mr. Choi Jong-Kun of the Republic of Korea. The consultation was centred around international issues of mutual interest including high-level bilateral exchanges, defense, security cooperation, and COVID-19 response. An important area covered during the meeting was air travel between the two countries. Vice Minister Choi highlighted the steps being undertaken by the government to relax travel restrictions and agreed to continue consultation on the air bubble between the two countries. The Vice Minister expressed appreciation of the leadership role played by the Indian Republic in tackling issues such as climate change and disaster management through initiatives such as the International Solar Alliance and Coalition for Disaster Resilient Infrastructure.

The United States confers ‘Legion of Merit’ award on Prime Minister Narendra Modi

The President of the United States of America, Donald Trump conferred the highest decoration, The Legion of Merit, Degree Chief Commander, to Prime Minister Narendra Modi. Mr. Modi was bestowed with the following award in recognition of his exemplary contribution to the advancement of the India-United States strategic partnership and promoting global peace and prosperity. The award was received on behalf of Mr. Modi, by Taranjit Sigh Sandhu. The Legion of Merit was also awarded to the Australian Prime Minister Scott Morrison and the former Prime Minister of Japan, Shinzo Abe.

India-UK Consultations on UNSC Issues

On the 18th of December, India and the United Kingdom held consultations on United Nations Security Council Issues. The UK delegation was being led by Mr. James Kariuki, Multilateral Policy Department of the UK Commonwealth and Foreign Office, and representatives from their Missions in New York and New Delhi. On the other hand, the Indian delegation was being led by Mr. Parish Gupta, Js (UNP & Summits), Ministry of External Affairs, and included other officials from the Ministry of External Affairs, PMI New York, and Indian High Commission in London.

The Indian delegation used this opportunity to brief their UK counterparts on its priorities during its upcoming tenure, including reformed multilateralism and counter-terrorism. The Indian delegation further touched upon its plan during its upcoming Presidency of the UNSC, including Climate Change and Security and famine and hunger in conflict situations. Both the delegations agreed to cooperate and work closely doing their time at the Security Council over the next two years.

Visit of External Affairs Minister to Qatar (December 27-28, 2020)

The External Affairs Minister, Dr. S. Jaishankar will be conducting an official visit to the State of Qatar on 27-28 December. The External Affairs Minister is scheduled to meet the Deputy Prime Minister and Foreign Ministry, H.E Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani. India and Qatar have over the years maintained close bilateral relations, and strong economic, cultural, and people-to-people cooperation. Bi-lateral trade was the US $10.95 billion in 2019-2. Both sides remain committed to intensifying bilateral cooperation in various fields including energy and investment.

The following visit undertaken by Jaishankar will be his first visit to the country in the capacity of the Indian External Affairs Minister. During the visit, he will be conducting a series of talks with his Qatari counterparts on issues ranging from regional and international issues of mutual interest. The two sides also focused on their response to the ongoing COVID- 19 pandemic and look forward to negotiating an agreement regarding a travel air bubble between the two states.

Virtual Meeting between Minister of State for External Affairs and the Foreign Minister of Gabon

A meeting between the Indian Republic and Gabon was held virtually on the 23rd of December, 2020. India was represented by Shri V. Muraleedheran, Minister of State for External Affairs, while Gabon was resented by H.E. Mr. Pacome Moubelet Boubeya, The Foreign Minister. Both leaders undertook a detailed review of bilateral ties including the COVID 19 pandemic and possibilities of cooperation in the post-COVID scenario. India and Gabon have shared friendly and cordial relations. The Indian delegation used the opportunity to emphasize how the meeting between Prime Minister Shri Narendra Modi and H.E. the President of Gabon in March of 2018 during the ISA founding Conference and during the Foreign Minister’s visit in 2017 and 2018 and strengthened the strategic relationship between the two countries.

Moving on, the attention shifted to Gabon and the ministers focused on the huge potential that exists in the country such as manganese, timber, agriculture, and railways. Bilateral trade between the two countries has been progressing at a steady rate and reached a total of US $511 million in 2018-19. Both delegations also reviewed the utilization of ITEC slots and finalized the draft MOU for participating in the e-VBAB project. Lastly, the two leaders discussed future cooperation and assistance at an international level, while assuring each other of support at the United Nations and other international forums.

India-Australia-Japan-United States Senior Officials Consultations

A joint video conference was held between the Senior Officials from the Ministry of External Affairs of India, Department of Foreign Affairs and Trade of Australia, Ministry of Foreign Affairs of Japan, and Department of State of the United State of America. The following meeting was a follow-up to meetings held between the above-mentioned countries in September and October. The main focus of the consultation was on practical cooperation in the areas of connectivity and infrastructure development and security issues that include counter-terrorism, cybersecurity, and disaster relief. The countries present highlighted their main aim, which was to promote peace, security, and prosperity in the Indo-Pacific region.

In terms of the ongoing effort to combat the COVID-19 pandemic, the officials underscored the importance of enhancing the resilience of supply chains and highlighted the need to ensure safe, effective, and affordable access to COVID-19 vaccines. The officials emphasized the centrality of the ASEAN in the regional architecture of the Indo-Pacific, by reiterating their support for ASEAN- centrality and ASEAN-led mechanisms.

Conclusion

With the introduction of the different COVID-19 vaccines, the world finally breathes a sigh of relief. In India’s case, we see a concentrated effort to strengthen relations, strategic partnerships and supply chains. The coming months will be a testament of whether India as a country will fade into oblivion owing to the severe economic stress brought upon the country, or will it embody the tail of a Phoenix rising from the ashes.

Also Read: INDIA’S FOREIGN POLICY REPORT — EDITION #7

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India-Russia consultation on UNSC issues

A delegation from the Indian Republic, being led by Shri Vikas Swarup, from the Ministry of External Affairs, met with a delegation being led by Mr. Sergey Vasilyevich Vershinin, Deputy Minister of Foreign Affairs of the Russian Federation. The consultations focused on India’s acceptance of the non-permanent seat of the United Nations Security Council. The Russian side appreciated India taking its place within the family of nations. Both sides focused on the agenda for the 2021-22 tenure. The Indian delegation along with emphasizing its commitment to deepen cooperation on counter-terrorism at multilateral platforms apprised the Russian delegation on its priorities. Lastly, the two countries decided to work closely together, given the common challenges faced and in keeping with their long-standing Special and Strategic Privileged Partnerships.

Unwarranted references to India in resolutions adopted by the Organisation of the Islamic Conference

On the 29th of November, the Ministry of External Affairs released a statement rejecting the references made to the Republic of India in the recent resolutions adopted by the Organisation of Islamic Conference (OIC) at the 47th CFM session in Niamey, Republic of Niger. The ministry reinstated its belief that the Organisation for Islamic Conference has no locus standi in matters pertaining to domestic governance of the country, which also includes the highly volatile region of Jammu and Kashmir which the current government believes to be an integral and inalienable part of India. India expressed its contempt at the fact that the organization was being used by a country that itself has been under the spotlight numerous times in the past for religious tolerance, radicalism, and prosecution of minorities. The country finally delivered an ultimatum of sorts by suggesting that the Organisation for Islamic Conference refrain from making such unwarranted and factually incorrect references to India.

India- United Kingdom Dialogue

The Prime Minister of India, Shri Narendra Modi spoke to His Excellency Mr. Boris Johnson, the Prime Minister of the United Kingdom on the 27th of November. The two leaders started their consultation by shedding light on the current situation in regards to COVID 19 in their specific countries and used the opportunity to promise cooperation between India and the UK in the area of vaccine development and manufacturing. The two leaders explored the possibility of further strengthening relations between the two countries, in areas related to trade and investment, scientific research, mobility of students and professionals, and defense and security. The two sides recalled their commitment to platforms like the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure while agreeing that delegations from both countries should work towards creating a roadmap for the India-UK partnership.

India commitments at Afghanistan Conference 2020

The Afghanistan Conference, organized in Geneva, co-hosted by the United Nations, The government of the Islamic Republic of Afghanistan, and the government of Finland, saw the participation of an Indian delegation, been led by S. Jaishankar. The External Affairs Minister announced at the conference that India had just concluded with Afghanistan an agreement for the construction of the Shatoot dam, which would provide safe drinking water to 2 million residents of Kabul city. India had earlier built the 202-km Phul-e-Khumri transmission line that provided

electricity to Kabul city. The Ministry of External Affairs recently also announced the launch of Phase-IV of the High Impact Community Development Projects in Afghanistan, which envisages more than 100 projects worth US$ 80 million that India would undertake in Afghanistan. In his statement, Jaishankar emphasized India’s long term commitment to the development of Afghanistan and the benefit of its people as a contiguous neighbour and strategic partner. The delegation also highlighted India’s efforts to provide alternate connectivity through Chabahar port and a dedicated Air Freight Corridor between India and Afghanistan. Lastly, Jaishankar voiced his concerns in regards to the increasing level of violence in Afghanistan and reiterated India’s call for an immediate and comprehensive ceasefire.

India-EU consultation on disarmament and non-proliferation

The European Union and India held the sixth round of consultations on disarmament and non-proliferation. The consultation saw the sides exchange vital information on areas of nuclear, chemical, biological disarmament and non-proliferation, outer space security issues, strategic stability. Environment and other developments of mutual interest. The main aim of the consultations was to enhance mutual understanding and appreciation between India and the EU on international security issues.

4th NSA Level Meeting on Trilateral Maritime Security Cooperation

The Indian National Security Advisor Shri Ajit Doval, visited Colombo to participate in the 4th NSA Level Meeting on Trilateral Maritime Security Cooperation. The meeting previously had been held in the Maldives in 2011, Sri Lanka in 2013, and India in 2014. The NSA level meetings have served as a platform for cooperation among Indian Ocean countries. Apart from the Defence Secretary of Sri Lanka and NSA Shri Ajit Doval from India, Defence Minister H.E. Mariya Didi will also participate in the meeting representing the Maldives. The meeting will provide an opportunity for discussion on issues pertaining to cooperation in maritime security in the Indian Ocean region. On the sidelines of the Trilateral Meeting, NSA is also expected to have other high-level bilateral engagements.

Bahrain, UAE, and Seychelles

External Affairs Minister, Dr. S.Jaishankar undertook a visit to Bahrain, UAE, and Seychelles from the 24th to the 29th of November, during which he met his counterparts and the leaders of the countries. Jaishankar’s visit to Bahrain is his first to the country since he took on the role as External Affairs Minister of India. Jaishakar used the opportunity to convey condolences on behalf of the Government of India and the people of India to the Bahrininin leadership on the demise of Prime Minister HH Prince Khalifa bin Salman Al Khalifa. The Minister will hold talks with the Bahrain leadership on bilateral issues as well as regional and international issues of mutual interest.

The External Affairs Minister visited the United Arab Emirates next, during which he met the Foreign Minister of UAE, HH Sheikh Abdullah bin Zayed Al Nahyan. During the interaction between the two leaders, they focused on taking forward the excellent cooperation between Indian and the United Arab Emirates under the Comprehensive Strategic Partnership. The meeting reached a productive outcome as the two leaders were able to discuss ways in which Indian workers could resume their jobs in the UAE, as more than 3 million Indians live and work in the country. India and the UAE have maintained close contact during the pandemic. Prime Minister Modi has spoken to the Crown Prince of Abu Dhabi HH Sheikh Mohamed bin Zayed Al Nahyan during the pandemic. The two heads of state also co-chaired the India-UAEJoint Commission Meeting in September 2020.

Lastly, Jaishankar visited the Republic of Seychelles on the 27th and the 28th of November 2020. The Foreign Affairs Minister met with the newly elected President, H.E. MR. Wavel Ramkalawan to present greetings of Prime Minister, Shri Narendra Modi, and discussed with him what the priorities for the Indian government are and focused on exploring new areas and avenues for strengthening India-Seychelles bilateral relations.

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15th East Asia Summit

The 15th round of the East Asia Summit was held on the 14th of November. The Indian Republic was represented by Dr. S. Jaishankar. The summit was chaired by the Prime Minister of Vietnam H.E Nguyen Xuan Phuc, who also serves as the chair of the ASEAN. The External Affairs Minister used the platform to reaffirm the importance of the East Asia Summit, while speaking about the need to adhere to international laws, respecting territorial integrity, and promoting a rule-based global order. His comments tie into India’s recent experience of a border skirmish with its Eastern neighbor, and at the same time, his comments shed light on the country’s plans. The importance that the Indo-Pacific holds for the Indian Subcontinent, was evident by Jaishankar’s remarks, where he referred to the region as an integrated and organic maritime space.

Jaishankar further expressed concerns about actions and decisions in the South China Sea that have led to an erosion of trust. While talking further about the South China Sea, he called for a joint initiative post the COVID 19 pandemic to tackle the challenges cutting across international boundaries such as terrorism, climate change, and the pandemic. Lastly, the discussion moved to the issue that the world has been continuously grappling with. Jaishankar in his remarks about the COVID 19 briefed the EAS leaders about India’s response to the pandemic and highlighted India’s efforts to support the international community. All nations present at the summit issued a joint call to keep all global supply chains open for an expeditious and sustainable economic recovery.

17th ASEAN Summit

India was represented at the ASEAN by Prime Minister, Mr. Modi. The ASEAN Summit was chaired by H.E. Nguyen Xuan Phuc, the Prime Minister of Vietnam. In his opening remarks, the Indian Prime Minister chose to shed light on the importance of ASEAN, by highlighting its centrality to India’s Act East Policy. The Prime Minister underscored the importance of strengthening convergence between India’s Indo-Pacific Oceans Initiative and the ASEAN Outlook on Indo- Pacific, to ensure a free, open, inclusive, and rules-based Indo-Pacific region.

The Indian delegation to further cooperation with ASEAN nations reiterated India’s broader support to the international community and extended an offer to contribute US$ 1 million to the ASEAN COVID 19 Response Fund. The Prime Minister further talked about the importance of greater physical and digital connectivity between ASEAN and India and repeated India’s offer of a US$ 1 billion Line of Credit to support ASEAN connectivity. Lastly, the heads of state and international leaders present at the Summit, while recognizing India’s contribution to the peace and stability in the region, decided to adopt the new ASEAN-India Plan of Action for 2021-2025. The member states present insisted on the significance of keeping up and advancing harmony, dependability, wellbeing, and security in the South China Sea and guaranteeing opportunity of route and overflight.

20th Summit of SCO Council of Heads of State

The 20th Summit of the Shanghai Cooperation Organisation was held on the 10th of November in a virtual format. India was represented by the Prime Minister, while the Summit was being chaired by the President of the Russian Federation, Vladimir Putin. The Summit was attended by an array of partners, that comprised the Secretary-General of the SCO Secretariat, Executive Director of the SCO Regional Anti-Terrorist Structure, and the President of the four Observer States of the SCO, which includes: Afghanistan, Belarus, Iran, and Mongolia.

This was the third meeting that the Indian Delegation attended, since becoming a fully participating member of the SCO back in 2017. The Prime Minister used the forum to intimate other members of India’s plan in the United Nations, as a non-permanent member of the United Nations Security Council. Mr. Modi emphasized India’s plans to focus on the theme of ‘reformed multilateralism’ to bring about desirable changes in global governance.

Further, the Prime Minister made known the country’s firm belief in regional peace, security, and prosperity and its future ambitions of raising a voice against terrorism, smuggling of illegal weapons, drugs, and money laundering. In terms of strengthening the Republic’s relationship with the Shanghai Cooperation Organisation and Member nations, the Indian Delegating reflected on India’s strong cultural and historical connection with the SCO region and reiterated India’s firm commitment towards strengthening connectivity in the region with initiatives like International North-South Transport Corridor, Chabahar Port, and Ashgabat Agreement.

In his concluding remarks, the Indian Prime Minster expressed his willingness to host the next regular meetings of the SCO Council of Heads of Government on the 30th of November. Lastly, the Indian Prime Minister congratulated President Emomali Rahmon of the Republic of Tajikistan for taking up the chairmanship of the SCO next year and assured full cooperation from India’s end.

India-Mexico Meeting

The Indian External Affairs Minister met with H.E. Ambassador Ernesto Araujo, the External Relations Minister for Brazil. The Indian Delegation started the talks by conveying their condolences to the Brazilian families who lost loved ones in the terrorist attacks in France. The Ministers discussed opportunities for cooperation in the post-COVID world and emphasized the importance of Brazil-India cooperation in terms of economic recovery efforts, healthcare, cybersecurity, and supply chain resilience. The Ministers also discussed a wide range of regional and multilateral issues especially in the context of India’s upcoming membership of the UNSC, the role of G4, and India’s priorities in the UNSC.

India-Italy Virtual Summit

A virtual bi-lateral summit, between the Prime Minister, Shri. Narendra Modi and the Italian Prime Minister Prof. Giuseppe Conte was held on the 6th of November, 2020. Recalling the Italian Prime Minister’s visit to India two years ago, Mr. Modi appreciated the rapid strengthening of India- Italy relations. The summit acted as a common platform for the two leaders to review their bi-lateral frameworks and discuss a wide range of issues including political, scientific, and defence technology. Lastly, on the multilateral level, both sides agree to coordinate closely at platforms such as G-20, to face global issues such as the COVID 19 and the economic downturn caused by the same.

Removal of Sudan from the list of State Sponsors of Terrorism and normalization of relations with Israel

On the 9th of November, the External Affairs Ministry released a statement, declaring that Sudan has been removed from the list of countries that are sponsors of terrorism. The Ministry acknowledged that the Indian-Sudanese relations are historic and special and forged based on shared values. The Indian Government also congratulated the Transitional Government and the people of Sudan on the signing of the Juba Peace Agreement, and hope that these positive developments will usher in democratic changes and contribute to enhancing Sudan’s development, peace, security, and stability.

Conclusion

India in the last month has taken significant steps towards establishing an environment of mutual respect and peace, while trying to set initiative a dialogue in the region which can act as a potential check on increasing Chinese aggression. With there being a constant mention of the shared problem of the COVID-19 pandemic, and the recent news coming out regarding the Pfizer and the Moderna vaccine, achieving 90% and 94.5% effectiveness, the country would have to focus on both production and distribution of the same if it is approved. Lastly, the next few months or even the coming years will be marked by a constant struggle aimed at economic recovery. It will be interesting to see how India’s strategic diplomatic ties help the country get back on its feet.

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Some major updates to cover in today’s Indian Foreign Policy Report are as follow:

Ministerial Meeting of the Group of Friends of Victims of Terrorism

The Republic of India recently participated in the Ministerial meeting of the Group of Friends of Victims of Terrorism. The Indian delegation was led by Smt. Vijay Thakur Singh, Ministry of External Affairs. The virtual meeting began with the Indian Secretary conveying a word of gratitude to the Foreign Ministers of Spain and Afghanistan respectively, Co-Chairs of the group and also to the UN Office of Counter-Terrorism (UNOCT) for organising the meeting. The Secretary then went onto underscore the importance of dealing with terrorism as an international problem rather than an individual domestic one. She also highlighted that even though the world today has been brought to a standstill, terrorism still continues to pose a threat to International Peace and Security. Throughout the meeting, special emphasis was placed on the rights of the victims of terrorism to get justice for the crimes committed against them. Lastly, the secretary called for redressing deficiencies in the international efforts to ensure that perpetrators of terrorism are swiftly brought to justice. During the meeting, gratitude was also expressed towards the United Nations for establishing August 21 as the ‘ ̃International Day of Remembrance of and tribute to the Victims of Terrorism’.

Press Release of Russia-India-China Foreign Ministers

On the 10th of September, India released a joint press statement, along with the Foreign Minister of Russia, Mr Sergey Lavrov and State Councillor/Foreign Minister of China, Mr Wang Yi. The meeting kicked off with the three ministers expressing their resolve to strengthen the Russia-China-India trilateral cooperation and give importance to issues of international and regional importance. The minister laid emphasis on the fact that cooperation among the three countries is conducive and vital in promoting global growth, peace, stability and more importantly creating an environment of inclusive multilateralism and respect for universally recognized principles of international law. In terms of the recent challenges posed by the COVID- 19 world pandemic, the ministers concurred that the three countries, with strong scientific and industrial capacities, could make a significant contribution towards mitigating the impact of the COVID-19 pandemic. The External Affairs Minister of India and the Foreign Minister of China thanked the Foreign Minister of Russia for the chairmanship of RIC and the conferences organized during the past year. The Foreign Minister of Russia officially handed over the chairmanship of RIC to the External Affairs Minister of India.

13th India-Japan Foreign Ministers’ Strategic Dialogue

The 13th India-Japan Foreign Ministerial Strategic Dialogues was recently conducted between the Indian Foreign Minister, S. Jaishankar and his Japanese counterpart, H.E Mr Motegi Toshimitsu. The meeting was initiated with the two representatives reviewing the progress made in India-Japan Special Strategic and Global Partnership and discussing issues of mutual interests, ranging from maritime security to UN reforms. Having experienced the benefits of technology at a time when the world has experienced a veritable seismic shift towards technology, the two Foreign ministers finalised the text of the Cyber Security Agreement. The agreement looks at promoting cooperation in capacity building, research and development, security and resilience in the areas of Critical Information Infrastructure, 5G, Internet of Things (IoT), Artificial Intelligence (AI), among others. Lastly, the two Foreign Ministers turned to the issue of the Indo-Pacific that has the entire world riveted. India has time and again, emphasised its belief in establishing the Indo-Pacific as a free and inclusive region. The meeting also led to further discussions on the Supply Chain Resilience Initiative between India, Japan, Australia and other like-minded countries. Lastly, the Japanese side agreed to be the lead partner in the connectivity pillar of the Indo-Pacific Oceans’ Initiative (IPOI) and jointly take both countries’ respective visions for the Indo-Pacific forward.

Joint Press Release of the 7th Round of India-China Military Commander-Level Meeting

The 7th round of the Senior Commanders Meeting of India and China was held in Chushul. The meeting mainly focused on the disengagement along the Actual Line of Control in the Western Sector of the India-China border areas. After what was described as a positive and constructive meeting, both sides agreed to maintain dialogue and communication through their military as well as diplomatic channels. Lastly, both sides agreed to ensure that disagreements in the future do not turn into disputes, securing peace in the region, by maintaining tranquillity in the border areas.

2nd India-Australia-Japan-USA Ministerial Meeting

The Indian Foreign Minister, S. Jaishankar participated in the Second India-Australia-Japan-USA ministerial meeting in Tokyo. The meeting started with a follow up of the talks held in the previous year in September. The four countries called for a coordinated international response, spearheaded by the four nations. They further discussed the post-pandemic world order. The meeting mainly focused on the need to establish best practices to combat the virus, to increase the resilience of the supply chain and fortify the need to enhance the access to affordable vaccines, and medical equipment. Keeping in mind the emergence of the Quad and the importance of the Indo- Pacific, the Foreign Ministers exchanged views about regional and international issues of importance. The representatives re-emphasised their firm support to working towards realising a shared vision for the Indo-Pacific. Alongside the joint ministerial meetings of all the four nations, S. Jaishankar also met with H. E Micheal Pompeo, Secretary of State for the USA, and in the immediate future, will be meeting with the Foreign Ministers of Australia and Japan.

Appointments

The current Ambassador of India to the Republic of Indonesia, Shri Pradeep Kumar Rawat has been replaced by Shri Manoj Kumar Bharti, who served as the Special Secretary in the Ministry of Foreign Affairs. The following appointment comes as a result of Mr Rawat’s appointment as the next Indian Ambassador to the Kingdom of the Netherlands. Lastly, Shri Rahul Shrivastava, who currently serves as the Indian Ambassador of India to Romania, has been concurrently accredited as the next Ambassador to the Republic of Albania.

Conclusion

The world that we inhabit today is very different from the one that we experienced just over a year ago. Not only have we been dealing with an existential crisis at hand in the form of the COVID 19 pandemic, but as we step into a new decade of the 21st century, we find chaos and confusion governing the four corners of the world, with the coups in countries like Mali and the pitiable state that countries like Nigeria are in. However, the most anticipated event of the year, the US presidential elections are in a fortnight, and it’ll definitely be interesting to see how they shape global politics in the coming years.

Also Read: INDIAN FOREIGN POLICY REPORT — EDITION #6

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Some major updates to cover in today’s Indian Foreign Policy Report are as follow:

17th India-Vietnam Joint Commission Meeting

India recently took a momentous step, by strengthening its bilateral relations with the Republic of Vietnam through the 17th India-Vietnam Joint Commission Meeting, centred around trade, economic, scientific, and technological cooperation. The meeting was co-chaired by DR. S. Jaishakar, External Affairs Minister for the Indian Republic, and H.E. Mr Pham Binh Minh, who currently serves as both the Deputy Prime Minister and Minister of Foreign Affairs of the Socialist Republic of Vietnam. The meeting had two major outcomes. Within the realms of Economic and Social developments, the two representatives discussed the recent progress in the India-Vietnam Comprehensive Strategic Partnership, which was further aided by a discussion about the regional and international spheres of interest for the two countries. The External Affairs Ministry placed special emphasis on Prime Minister Modi’s vision of an Atmanirbhar Bharat, which focuses on self-reliance and human-centric globalization. The ministry also reasserted India’s willingness to assist Vietnam, through initiatives such as the Quick impact Projects, ITEC, PhD fellowships, and projects in water resource management. The second aspect that the two counties focused on was, strengthening their defence engagements, in line with India’s recent policy ion increasing military presence in the region. To further reinforce India’s presence at the United Nations Security Council, both countries agreed to work and collaborate closely. Lastly, the two countries decided to structure their cooperation and bilateral engagements, in line with India’s Indo-Pacific Oceans Initiative and ASEAN’s outlook on the Indo-Pacific. 

India-Uzbekistan Joint Projects

The first meeting of the National Coordination Committee of India-Uzbekistan Joint Projects was held on the 24th of the August, under the chairmanship of Mr Sardor Umurzakov, the Deputy Prime Minister and Minister of Investments and Foreign Trade, who was assisted by the Indian Minister of State for External Affairs, Shri V. Muraleedharan. The bilateral meet was organized with the aim to review the joint projects between the two countries, which were essentially implemented under the direction of Prime Minister Shri Narendra Modi and Uzbek President Mr Shavkat Mirziyoyev. The representatives extensively reviewed the current agreements and planned out future activities in terms of economic and trade cooperation. During the meeting, special attention was paid to the status of negotiations for concluding a Bilateral Investment Treaty, and granting mutual market access for agricultural products from both countries. There was a general sense of satisfaction and hope conveyed by the two chairs, on the current status of the projects, and the strength the completion of the same would add to the bilateral relations between the two countries. Minister of State Shri V. Muraleedharan extended an invitation to Deputy Prime Minister Mr Umurzakov to visit India as per mutual convenience.

Statement on Foreign Secretary’s visit to Dhaka

The Indian Foreign Secretary, Shri Harsh Wandhan Shringla visited Bangladesh last month. The trip carried with it significant diplomatic importance. The Foreign Secretary’s visit started off with discussions regrinding the upcoming celebrations for the 50th anniversary of the Bangladeshi independence and the establishment of ties between the two neighbours. The Indian delegation also chose to use the trip to highlight the assistance provided by New Delhi to Dhaka, in combating the COVID-19 and how India organized capacity-building courses for the Bangladeshi Medical Personnel, following the conference of SAARC leaders and the meeting up of the SAARC Emergency Response Fund for COVID 19. India also used the platform to announce its intentions to launch an air bubble, to resume travel between the two nations, and propose to convene a meeting of the Joint Consultative Commission at the level of Foreign Ministers, to review all the joint projects being undertaken. Lastly, the meeting recorded discussions for the safe repatriation of displaced persons from troubled regions of the Rakhine state and looked into further strengthening defence cooperation, to bring an effective stop to cross border crime. The visit of the Foreign secretary turned out to be highly beneficial for the two countries, especially for India, given its ‘Neighbourhood First Policy’ 

Diplomatic Appointments

Shri Shambhu S. Kumaran, who currently serves as the Ambassador of the Indian Republic to the Republic of Philippines has been appointed as the country’s Ambassador to both the Republic of Palau and The federal States of Micronesia. 

Conclusion

Seeing the increasing Indian footprint on the international political and socio-economic map,  one can only say that the country will have a dominant role to play in shaping the world order post the pandemic. In particular, India has focused mainly on its neighbourhood, as highlighted through its ‘Neighbourhood First Policy’ and the ‘Act East Policy’. During this time of uncertainty, it is India’s ability to achieve rapid and sustainable development that will ensure the country a place at the table along with the big boys. India’s Indo-Pacific vision epitomizes its desire of being a “main force”. All things being equal, it is simply the start of a decadal venture, which will see India shoulder the desires that befit the world’s biggest popularity based economy. To do this, Delhi should continually reconsider the elements of progress in progress, picture the potential outcomes that are on offer, envision the chaperon dangers and creator the new request emerging out of Asia.

Read Also: INDIA’S FOREIGN POLICY REPORT — EDITION #5

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Some major updates to cover in today’s Indian Foreign Policy Report are as follow:

United Nations Economic and Social Council

On the 75th anniversary of the United Nations ECOSOC, this week, the Indian Prime Minister, Narendra Modi delivered the keynote address at the virtual gathering. This happened to be the second time, that Mr Modi had the opportunity to address the council, as he had delivered the keynote address back when the council was celebrating its 70th anniversary in the year 2015. However, this does happen to be the first opportunity the Prime Minister has had to address the gathering of member nations since India was overwhelmingly elected as a non-permanent member of the United Nations Security Council. The summit was themed around Multilateralism post- COVID-19 and the kind of United Nations we need on the 75th anniversary.

During the address, the Prime Minister called for a reformed multilateralism with a reformed United Nations at its centre. He also stressed on India’s motto, ‘Sabkasaath, Sabkavikaas, Sabkavishwas’, that resonated with the SDG principle of leaving no one behind. The Prime Minister also used this opportunity to reflect on India’s perseverance in improving the socio-economic situation in the country. On that note, he said, “While marching forward on the path to development, we are not forgetting our responsibility towards our planet.” In terms of India’s effort in battling the virus, the Prime Minister praised the system in place by commenting, “Our grassroots health system is helping India attain one of the best recovery rates around the world, in the fight against COVID.”

A large majority of the Prime Minister’s speech revolved around International cooperation and India’s role and partnership with the ECOSOC and other international bodies. The present member states, made note of a significant impact on the global SDGs, due to India’s contribution to the improvement of socio-economic conditions and the support it provided to other developing countries. The Prime Minister also focussed on the role of the first responder that India has been carrying out in the region an example of which would be, India’s Operation Sagar, carried out in the Indian Ocean Region to provide both material and medical assistance to countries. Lastly, the Prime Minister spoke about the importance of financial inclusion and the necessity of providing housing and healthcare, by giving the example of the on-going development efforts in India, especially the ‘Swacch Bharat Abhiyan’ campaign.

Indo-Pak Relation

Relations between the two neighbours; India and Pakistan experienced a new low in the last few days as the Charge d’Affairs of Pakistan was summoned by the Indian Government, following an unprovoked ceasefire violation by Pakistani forces on the night of the 17th of July, 2020 in the

Krishna Ghati Sector in Jammu and Kashmir. Keeping in mind the soaring number of ceasefire violations by Pakistan which have resulted in the death of 21 Indians and have injured close to 94 civilians, has pushed India to strongly condemn the deliberate targeting of innocent civilians by the Pakistani forces. The Indian Government has also seized this opportunity to show their contempt at the subvert and continued Pakistani support for cross border terrorist infiltration into India. India has called upon Pakistan to adhere to the 2003 Ceasefire Understanding between the two countries, which requires them both to maintain peace and tranquillity along the Line of Control and the international border.

India Ideas Summit

The India Ideas Summit, being organized by the India-US Business Council, which is celebrating its 45th anniversary, had the prime Minister deliver the keynote address. The theme of this year’s summit is ‘Building a Better Future’. The summit essentially aims at developing a strategic working relationship between the United States and the Indian Republic. The summit will include both Indian and American government policymakers and state-level officials. Minister of External Affairs, Dr S Jaishankar, U.S Secretary of State Mr Mike Pompeo, Senator of Virginia and the co-chair of the Indian Caucus, Mr Mark Warner and the U.S ambassador to the United Nations, Ms Nikki Haley will be among those attending the summit. The summit essentially aims to discuss India-US cooperation and the relations between the two countries in a post COVID world.

India-Spain Foreign Office Consultations

India this week was a part of the 6th Foreign Office consultation with Spain, held on the 21st of July. The Indian delegation was led by Mr Vikas Swarup, Secretary (West). Meanwhile, the Spanish side had, Ms Cristina Gallach, Secretary of State for Foreign Affairs, Ibero-America, and the Caribbean, at its helm. The two countries along with discussing reforms and opportunities for enhancing bilateral economic cooperation exchanged views on the COVID 19 response and post- COVID recovery priorities. Lastly, the two sides revised agreements under consideration and mutually agreed to forward the bilateral agenda, including exchange by both sides.

Release of Nidan Singh Sachdeva

Nidan Singh Sachdeva, who was kidnapped last month from the Chamkani district in Pakita province on 22nd June 2020, was recently released from captivity. Nidan Singh belongs to the Hindu-Sikh community of Afghanistan. The Indian Government conveyed its appreciation to the Government of Afghanistan and various tribal leaders of the region for their help. The kidnapping of Nidan Singh has revealed the ongoing targeting and persecution of minority members by terrorists who are controlled by their external supporters. Lastly, in a decisive measure, India has decided to facilitate the return of those minority members who face external security threats.

Conclusion

Even though the country is experiencing a worsening of conditions with its neighbours, keeping in mind the recent development of tensions with Pakistan, over the unprovoked fire at the Line of Control, the country has extended a helping hand towards both nations like Afghanistan in the Middle East and at the same time European nations such as Spain. In the last few years the country has developed military relations with the United States, but in recent times it has looked at the possibility of venturing into developing an economic partnership with the superpower. Lastly, India’s image as developing power worldwide has been further augmented by its election into the United Nations Security Council and the keynote address delivered by the Prime Minister at the Economic and Social Council.

Read Also: INDIA’S FOREIGN POLICY REPORT – EDITION #4

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India-US, Foreign Office Consultations

Historically, India has always chosen to tread the neutral path when it has been faced with the decision of choosing a side in geopolitics, especially during the Nehruvian years, that is immediately after it attained independence, where it followed a strict policy of non-alignment. However, in recent times as India has chosen to increase its influence and emerge as an important geopolitical leader in the South-Asian region, it has substantially increased its cooperation and strengthened its ties with the United States. The latest developments between the two nations include a set of Foreign Office Consultations. The virtual meeting took place between the Foreign Secretary, Harsh Vardhan Shringla, and the US Under Secretary of State for Political Affairs, David Hale. Given the current situation where the virus is surging by leaps and bounds in both countries, the two representatives agreed to further strengthen the health partnership, including in the areas of pharmaceuticals and vaccine development.

They further agreed to ensure the enhancement of mutually beneficial trade and people-to-people ties. During this discussion, the Indian delegation addressed the issues regarding the VISA facilitation post-COVID, especially keeping in mind professionals and students. Following this, the two representatives moved on to address the elephant in the room, the Indo-Pacific, that has come to be seen as one of the most strategically important regions in the world, with 75% of world trade passing through the region. Keeping in mind India’s geographic proximity to the region and the US’ trade and military interests, both nations have persevered in the past to ensure a free open and inclusive Indo-Pacific, against China’s predatory approach. The following consultation acted as a testimony to India-US joint initiatives in the Indo-Pacific in the future. Lastly, the United States emphasised the US-India cooperation in the United Nation, especially after India was elected as a non-permanent member of the United Nations Security Council for the year 2020-21.

India-European Union Summit

India’s increased engagement in the Western Indian Ocean regions has led to the country cooperating and investing in strategic relationships with several European Nations. The 15th meeting of the India-European Union summit is scheduled to be held virtually. The meeting was co-chaired by the Indian Prime Minister, Narendra Modi, the President of the European Union, H.E Charles, and the President of the European Commission, H.E Ursula Von Der Leyen. The summit that is to be held in the coming days will mainly focus on India-EU cooperation covering political and security relations and at the same time will look into avenues of trade and investment. The summit would mainly be addressing the issues of development during the COVID 19 pandemic and contemporary global matters.

Working Mechanism for Consultation and Coordination on India-China border Affairs

India has been locking horns with the Chinese Republic over several issues. Most recent of these has been the border situation, at the Galwan Valley. On the 10th of July, 2020. The 16th meeting of the Working Mechanism for Consultation and Coordination on India-China Border Affairs was held. The Indian delegation was led by the Joint Secretary (East Asia) from the Ministry of External Affairs. Meanwhile, the Chinese delegation was led by the Director-General of the Boundary and Oceanic Department of the Chinese Ministry of Foreign Affairs. Before deliberating over the future steps in regards to the de-escalation in violence at the border regions, the two delegations looked back at the agreements between the two nations. The first of these agreements were between the two foreign ministers on the 17th of June, following which there was an agreement reached between special representatives on the 5th of July. The recent consultation essentially reviewed the situation at the India-China border including the progress made in terms of the ongoing disengagement of troops. It was decided that another meeting of the WMCC will be conducted in the future, followed by a meeting of the Senior Commanders, which will discuss further steps to ensure a complete disengagement and de-escalation in a timely manner. 

High-Level Summit of the United Nations Economic and Social Council

The Prime Minister recently delivered the keynote address at a high-level summit of the United Nations Economic and Social Council on the 17th of July. PM Narendra Modi had previously addressed the member nations of the council in 2016 at the 70th anniversary of the ECOSOC. This time around the Prime Minister delivered his address at the Valedictory session, where he was joined by the Prime Minister of Norway and the UN Secretary-General Antonio Guterres. The summit attracted a diverse set of representatives from several nations. The Conference that celebrated the 75th anniversary of the United Nations, bears the theme of ‘Multilateralism after COVID 19: What kind of United Nations do we need at the 75th anniversary’. The session that primarily focused on bolstering leadership through global cooperation and international institutions, was the first opportunity the Indian Prime Minister had to address member nations since India got elected to the United Nations Security Council. The Summit acts to India’s advantage as it aligns with India’s Security Council priority, wherein India has emphasised the need for reformed multilateralism in a post-COVID-19 world. The session also recalled India’s role as a holder of the inaugural Presidency of the Economic and Social Council.

International Appointments

Jawed Ashraf, the Indian Ambassador to the French Republic has been concurrently accredited as the Ambassador to Principality of Monaco. At the same time Dr Vidya P Nair, who currently serves as a Director in the Ministry of External Affairs, has been designated as the next Ambassador to Turkmenistan. Lastly, Shri Hemant Harishchandra Kotalwar, presently Joint Secretary on deputation to NCSC has recently taken up the position of the next Ambassador to the Czech Republic.

Conclusion

India has for long followed an inward-facing forward policy, that did not prioritise bilateral relations and strategic partnerships and adopted a neutral stance on geopolitical matters. However, that is not the case anymore. With the given situation that the country finds itself in regards to the Chinese Republic, and the leadership position it has assumed after the Indian Prime Minister addressed nations at the Shangri-La dialogue, India has further increased its relations with European Nations and further strengthened its bilateral relations with the United States, to an extent where India has been promoted to the status, generally granted to treaty allies. With India’s burgeoning interest in geopolitics, India’s current foreign policy decisions will shape the position it assumes in the post-pandemic world order. 

Read Also: INDIA’S FOREIGN POLICY REPORT – EDITION #3

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