INDIA AND PAKISTAN

India and Neighbors:

1     Overview:

·       India gives highest priority to her neighbors.

·       India want peaceful periphery to achieve multifarious development goals

·       India believe that  stable and prosperous South Asia will contribute to India’ own prosperity

·       In South Asia=-India share border with none except Myanmar and Bangladesh

·       SAARC is tool of liason (last summit held in Maldives Nov 2011)

·       Dr. Mohan Singh articulated India’s vision of regional economic integration based on enhanced intra-regional trade, investment flows and interconnectivity

·       India has virtually eliminated the sensitive list of items of trade

·       Taken various initiatives for Capacity Building

·       Fostered a sense of a South Asian Identity through SAARC process

·       Enhanced mutual confidence in multiple areas

2     India and Pakistan:

2.1Overview:

Ø Most complex among all neighbors- due to across border terrorism

Ø Composite Dialogue between India and Pakistan from 2004 to 2008v addressed all outstanding issues. It had completed four rounds and the fifth round was in progress when it was paused in the wake of the Mumbai terrorist attack in November 2008. Achievement of composite dialogue:

ü enhanced people to people contacts through bus and train services;

ü revival of the Bilateral Joint Commission after 16 years;

ü setting up of the Judicial Committee to look into the humanitarian issue of civilian prisoners/fishermen held in each other’s jails

ü  growth in bilateral trade by 550% between year 2003-04 and 2007-08

Ø Trust Deficit Increased due to Terrorist Attacks

Ø But Efforts are put to revive composite dialogue on sideline of SAARC summit

2.2Resumed Dialogue

Ø Dialogue resumed on the sidelines of the SAARC summit, hence foreign secretaries of both countries to discuss the issues further. Even PM of both countries met informally at Mohali to watch Indo-Pak World Cup Semi Final

Ø Their external affair minister Khar too visited India

Ø Secretary, Water of Govt. Of India and counterpart also met in New Delhi to discuss Wullar Barrage/ Tulbul Navigation Project

Ø Home Secretary- Counter Terrorism, Narcotics Control and Humanitarian Issues

Ø Defense wala discussed Siachen

Ø Surveyor General of India- Sir Creek

2.3Economic Relation:

India awarded MFN status to Pakistan in 1996. In reciprocity, Pak has given the same status to India now (2012)

Ø A significant step in bilateral economic relations. Trade and investment across the border will create lobbies and interest groups that would engage each other and put pressure on both govt. to solve difficult problems such as Kashmir, Terrorism, Afghanistan and Nuclear Security

Ø Both courtiers liberalized the VISA regime

Ø Earlier large no. of tariff and non tariff barrier had prevented the trade- now trade will boost due to geographical and cultural proximity of both countries

Ø Transportation cost will also decrease (earlier the goods shipped though Dubai OR Singapore)

Ø More trade will provide more varieties to both countries

Ø At the same time, India has allowed FDI from Pakistan.

Ø To monitor the progress, Govt. should make a committee with representative from Private sector, Govt. and Independent experts.