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Back in July 2015, the current Indian Prime Minister Narendra Modi visited the five Central Asian countries. These countries included Kyrgyzstan, Uzbekistan, Kazakhstan, Turkmenistan and Tajikistan.
India’s goal is to promote the ‘Make in India’ slogan. In order to achieve that, a great relationship with the Central Asian countries is sure to speed up this process. In fact, the Modi factor in Central Asia also plays a vital role here.
Modi’s goal with the eight-day tour was to improve India-Central Asia relations and discuss the future diversity of their resources.
In this article, we will go through the impact of the PM’s Central Asia visit in detail and analyse the Modi factor in Central Asia.
The Modi factor in Central Asia
Each country in the Central Asian region has its own value to add to the Indian goal of ‘Make in India’. This is because the Central Asian countries have huge reserves of oil, uranium and natural gases.
While Turkmenistan and Uzbekistan are one of the largest natural gas reserves in the world, Kazakhstan individually is a major producer of oil in the region. In fact, Tajikistan and Kyrgyzstan both have a variety of untapped resources.
The significance of the visit also involved widening the strategic perimeter of Indian people towards these countries and creating a better future for Indian people in the Central Asian regions. With such a warm welcome of Modi’s activism in the Central Asian countries, strengthening the relations between these regions and India doesn’t seem that hard.
However, India, unlike China, has not been able to dedicate efforts to understand the Silk Route dynamic. This is why China’s trade with the region is over $50 billion while India’s is a mere $1.4 billion.
Modi also picked topics including Islamic heritage in India along with the Sufi tradition. This, in turn, enhanced the Modi factor in Central Asia. With gifts like the reproduction of Khamsa-i-Khusrau given to Islam Karimov, discussions on a solid joint socio-cultural rhetoric, and the invoking of linguistic links with the Tajiks, worked well to rekindle the relationship between India and the Central Asian regions.
India-Central Asia relations
Over the years, India-Central Asia relations have been developing and evolving significantly. From every perspective, India-Central Asia relations have transformed into more stable and mature partnerships.
India and Central Asian countries have had historical and civilisational linkages as both the parties have a common route of trade – the Silk Road.
The Silk Road was the same route that connected both the regions and allowed them to transport silk, spices, textiles, garments and more. Not just that, but this was the same route that allowed a variety of thoughts, religious ideas and practices, and philosophy to be transferred between both sides.
While India’s constant support towards Central Asian countries has been reflected in addressing the recent pandemic situation, the two sides have also improved their trade and connectivity and developed a partnership to face emerging challenges.
In the recent India-Central Asia Dialogue held on 19 Dec 2021, both sides mutually agreed to focus on promoting security, long-term economic prosperity and overall stability in both regions.
This was because of the Modi factor in Central Asia, as his visit in 2015 to all five countries was a great move in redefining and rekindling the relations of both parties.
Realizing India’s Strategic Interests in Central Asia
India has shown full cooperation in keeping an open dialogue and establishing peace among all the Central Asian states.
This has helped India explore partnerships and growth opportunities in the regions and maintain such a mutually beneficial relationship.
With constantly working on the two-sided relationship with a mixture of the Modi factor in Central Asia, both the parties could be mutually benefited in the future as well.
Due to its unique location, Central Asia has been the bridge between crucial political and economic changes for centuries. India’s Connect Central Asia policy and the European Union’s Central Asia strategy could also help strengthen the relationship with Central Asia. This also makes sure that India can actively participate in the development of the regions.
Together, these things help in the long run. Central Asia, in this regard, also provides the Indian ecosystem with the possibility of leveraging its economic, cultural and political connections to play a leading role in Eurasia.
Conclusion
The relationship between India and Central Asia sure has a lot of scope for development. The PM’s tour to Central Asia has opened the door to many opportunities.
While the Central Asian countries are already focusing on diversifying their energy exports, India is also looking to tap into various permanent sources to reduce its dependency on other nations.
With the increasing demand for energy, India sure is going to find itself involved in many geopolitical relationships and energy partnerships. It’s evident that enhanced cooperation between both regions could open the prospects of a variety of strategic relations in the future.
In fact, India taking part in BRICS and SCO summits, the prime minister visiting Central Asia and keeping an open dialogue all contribute to a future full of opportunities for India as well as Central Asia.
The economy of China has come a long way from poverty and economic stagnation to prosperity and economic transformation. This transformation started in late 1970. China is the world’s largest economy (PPP) and second-largest economy(nominal), just behind the US to grab the second spot.
The People’s republic of China has seen several economic reforms, especially under Deng Xiaoping’s rule. The economy of China is going to overtake that of the US in some decades, to some estimates. According to reports, China is slowly turning towards a slow growth phase because of the transition from a developing country to a more developed and mature economy.
Economic policy
China is a prime example of economic success. Since adopting market-oriented economic reforms, it has successfully transitioned into a prospering and booming economy.
China has clocked around 9 per cent real growth since 1979. China has been in this transition for decades now, which took it from a poverty-stricken and backward economy to one of the fastest-growing economies in the world. It was inspired by the soviet-style economy and adopted heavy industrialization, and became a centrally planned economy for some time. Still, later it went on with becoming a market-oriented economy.
Trade structure
The economic rise of China is mainly linked to the ever-flourishing trade that this country does with the rest of the world. Trade forms an integral part of China’s economy. This trade of China is resilient to any outside pressures, which was evident in the trade war with the US and a drastic fall in relationships with the EU.
A significant part of Chinese imports includes apparatus like computers, semiconductors, office machines and other commodities like fuels and chemicals. Taiwan, Japan, Australia, the US, and the EU are the major import partners of the People’s republic of China. Almost half of what the People’s republic of China imports comes from Southeast and East Asia.
China’s export mainly consists of manufactured products like electronic and electrical equipment and textiles, footwear, and clothing. The People’s Republic of China also exports significant amounts of fuels, chemicals and agricultural products. The major export destinations of China include South Korea, Japan, Hong Kong, the US, and the EU.
China’s Exports
The People’s republic of China enjoys a favourable overall trade surplus. Its large trade surplus makes it the world’s largest exporter. China is also likely to remain the world’s largest exporter for quite some time. Electrical equipment and electronic equipment, nuclear reactors, furniture, prefabricated buildings, medical apparatus, textiles, plastics and boilers are the main things that the People’s republic of China exports. The major export destinations of China include Japan, South Korea, the US, the EU, and Hong Kong. The country has also signed the RCEP (regional comprehensive economic partnership), a free trade agreement that includes 14 other Indo-Pacific nations. This trade deal is the largest in history and covers around 30% of the global economy. Trade is a very significant part of the Chinese economy and has been used as leverage to modernise its economy to a greater extent.
According to the World trade organisation report, the overall exports of goods were around USD 2590.2 billion in 2020. Meanwhile, the exports of the services touched USD 278 billion during the same period. The People’s republic of China is fully reaping all the benefits of globalisation and is reporting significant increases in its exports.
Fiscal Policy
It was only after the opening up of the economy and the reforms that China started to adopt a fiscal policy in an absolute sense. There was a fiscal policy in The People’s republic of China before opening up, but in some other form, than that of a market-oriented economy. Its fiscal revenue and fiscal expenditure were planned very strictly when it was a planned economy. There was no independence in this fiscal policy, and it was only under the control of the state. Simply put, fiscal revenues and fiscal expenditures had to follow the state’s plan strictly.
After 2012 the People’s republic of China saw uninterrupted and unprecedented proactive fiscal policy implementation, and it has been in place since 2008. There have been several operational adjustments, like the tax cuts in 2008 that turned to fee and tax cuts in 2018 and emphasis was laid on enhancing and strengthening the effectiveness in 2019. The market plays a decisive role in allocating resources in the Socialist market economy, and we also see most of the functions within the market law.
Conclusion
The People’s republic of China has come from a poverty-stricken country to one of the fastest-growing economies in the world. Its exports are increasing and so import.
The country is a part of several key trade deals. Its economy is flexible and can handle outside shocks like a trade war with the US or deteriorating relationships with the EU or quad members. It mainly exports electronic equipment, nuclear reactors, textiles, etc.
The major export destinations of China include Japan, the US, the EU and Hong Kong.
The imports of China come from countries like Australia, the US, Taiwan, Japan, South Korea, and the EU.
Prime Minister Narendra Modi visited Ireland on September 23, 2015. It was the second time an Indian Prime Minister had visited Ireland. The first being Jawaharlal Nehru’s visit in 1956. Ireland is an island nation located in Northwestern Europe and surrounded by the North Atlantic Ocean.
The Prime Minister of Ireland, Enda Kenny, had hosted PM Modi during his visit. The PM was attended by other dignitaries such as the Minister of Foreign Affairs and Trade, Charles Flanagan, and Ireland’s Ambassador to India, Feilim McLaughlin. The main aim of the visit was to create stronger ties and improve trade and cultural relations. Described below is the impact of the PM’s Ireland visit.
Impact on trade and commerce
India and Ireland have strong bilateral trade and business relations. Before the PM’s visit, trades with Ireland were valued at €650 million in business in 2014. This included exports worth €248m and imports worth €402 million.
The indigenous exports increased from €32 million in 2012 to €55 million in 2014. In 2019, the total bilateral trade was around €1.2 billion. The exports and the imports have also increased to €636 million and €480 million respectively. Currently, the total trade between India and Ireland is valued at €4.2 billion. This resulted from improved bilateral ties between the two nations, owing to Prime Minister Modi’s visit to Ireland.
Indian Companies in Ireland
Many Indian companies carry out trade and commerce in Ireland. They provide services to Irish markets and consumers across various industries. Pharmaceutical giants such as Reliance Genemedix and Amneal Pharmaceuticals operate in Ireland. Major IT companies such as Wipro, Infosys, TCS, and HCL also have a strong presence in the country. The trade relations were bolstered after Indian Prime Minister Narendra Modi visited Ireland.
Other companies like Crompton Greaves, Deepak Fasteners, Jain irrigation systems, and Shapoorji Pallonji provide consumer goods and services. Likewise, many Irish companies conduct their business in the Indian market. These companies include pharmaceutical and nutrition players like ICON and Glanbia, IT firms like Globoforce and other companies like Keventer, CRH Taxback Group, and Connolly Red Mills.
Impact on Education
Ireland has been a coveted destination for higher education for Indian students. Over 5000 Indian students have enrolled for higher studies in various institutions in Ireland. The students are admitted to engineering, technology, medicine and management colleges. More than 30 research agreements have been signed between the two nations that allow institutes in both countries to collaborate.
Many reputed institutes like Trinity College, Dublin, and Thapar University, Patiala, have signed MOUs for engineering and science disciplines programmes. Thus, Ireland is an essential collaborator in graduate and doctoral research. This collaboration is also considered an impact of the PM’s Ireland visit.
Indian Community in Ireland
Ireland is diplomatically significant for India also due to the large number of Indian citizens residing there. The Indian origin population is approximately 45,000 people, of whom 18,500 are Non-Resident Indians (NRI), and others are Persons of Indian Origin (PIO). The majority of the residents are working professionals employed in engineering, healthcare and management positions.
It has helped in establishing many policies for the Indian origin population. Two such policies in practice are wearing hijab as a part of the police uniform and the non-requirement of obtaining an additional work permit for the spouse or the partner of Critical Skill Employment Permit holders.
Cultural Impact
As a result of a large population of Indian origin citizens in Ireland and the relationship between the two nations, Ireland promotes Indian culture in various forms. One such example is the celebration of Diwali in Ireland since 2008. The event is organised every year in collaboration with Irish and Indian committees.
Further, an annual contemporary film festival is also a part of the celebration of Indian culture. The promotion of such events indicates the importance of cultural exchange between the two nations. The Irish communities also take a keen interest in conventional practices such as cultivating and consuming Indian herbs and spices. This connects the agricultural practices between the two nations. The cultural ties between the countries were strong, and Prime Minister Modi’s visit to Ireland helped strengthen them further.
Another significant practice is the celebration of International Yoga Day in Ireland. The Irish communities have accepted Yoga as a form of a healthy lifestyle. The practice is similar to the Indian tradition.
Tourism
India attracts around 44,000 Irish tourists every year. Indian tourists too visit Ireland in similar numbers. This was facilitated by the introduction of the common British-Irish visa scheme. This scheme allows the tourists to visit the U.K. and Ireland under one visa, rather than applying for two separate visas. It is valid for short stays. India also extended its Electronic Tourist Visa facility to Ireland to digitally facilitate visa approval and generation. The impact of the PM’s Ireland visit was such that it has also helped establish the tourism sector in both countries.
Conclusion
The diplomatic ties between Ireland and India have been impacted positively after Prime Minister Modi visited Ireland in 2015. It was an essential step toward strengthening the bilateral relationship between these two nations. India and Ireland have been important to each other since the 1900s.
In 2010 and 2017, two honorary consulates were established in Chennai and Kolkata. Later in 2019, a formal and fully functional consulate general in Mumbai. Ireland and India have also shown their allegiance to fighting terrorism after the Pulwama attack. India has also hosted several Irish dignitaries on various occasions. These visits were directed toward engagement in business, education, health and tourism.
Further, many agreements were signed to provide opportunities for employment to people of both countries. Prime Minister Modi’s visit to Ireland helped revive relatively stagnant relations between these two nations. Several cultural and historically similar instances bind these two nations. From Yeats and Tagore to cricket and Diwali, the cultural semblance between these two nations has helped create a strong tie between them.
