By Rajeswari Pillai Rajagopalan
Alongside growing momentum for reconciliation, significant bilateral problems remain.
The government of Prime Minister Narendra Modi has been in office for almost six months in what has been an active period, especially on the national security and foreign policy fronts. There have been several important international visits during this period, including Modi’s visits to Japan and the U.S. and state visits to India by the Australian Prime Minister Tony Abbott and the Chinese President Xi Jinping.
The Chinese in particular have been seen to be courting India since the Modi government took charge in New Delhi. India represents enormous opportunities on the economic front and is also important from a security perspective, given the increasing flux and volatility in Asian geopolitics. Xi’s visit to India was an opportunity to take the relationship to a higher level. From China’s perspective, the visit was meant to solidify its interest in bringing out the full potential of the bilateral economic agenda, as it was looking to sign agreements on high-speed rail and major infrastructure projects including ports. The Chinese consul general in Mumbai stated that China “will commit investments of over $100 billion or thrice the investments committed by Japan.” However, what was finally committed was only $20 billion, no small amount, though far smaller than the hype had suggested.
The border standoff that began on the day of Xi’s visit did have a spoiler effect on their interactions. Even though the Indian leadership has always raised the tricky issues of border disputes and the trade deficit with China, Modi went one step further by raising them during the press statement, stating “peace and stability in our relations and along our borders are essential for us to realize the enormous potential in our relations. If we achieve that, we can reinforce each other’s economic growth.” In response, Xi noted that the border issue is “left over from history” but that China is determined “to work with India to settle… at an early date.” He also underlined the fact that the “two sides are fully capable of acting promptly to manage incidents on the border.” However, the Chumur incident has sent mixed signals about China’s message.
Read the full story at The Diplomat