India/Transnational issues

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India's size, population, and strategic location give it a prominent voice in international affairs, and its growing industrial base, military strength, and scientific and technical capacity give it added weight. It collaborates closely with other developing countries on issues from trade to environmental protection. The end of the Cold War dramatically affected Indian foreign policy. India remains a leader of the developing world and the Non-Aligned Movement (NAM), and hosted the NAM Heads of State Summit in 1997. India is now also seeking to strengthen its political and commercial ties with the United States, Japan, the European Union, Iran, China, and the Association of Southeast Asian Nations. India is an active member of the South Asia Association for Regional Cooperation (SAARC) and the Indian Ocean Rim Association for Regional Cooperation (IORARC).

India has always been an active member of the United Nations and now seeks a permanent seat on the UN Security Council. India has a long tradition of participating in UN peacekeeping operations and most recently contributed personnel to UN operations in Somalia, Cambodia, Mozambique, Kuwait, Bosnia, Angola, and El Salvador.

Bilateral and Regional Relations
Pakistan. India's relations with Pakistan are influenced by the centuries-old rivalry between Hindus and Muslims which led to partition of British India in 1947. The principal source of contention has been Kashmir, whose Hindu Maharaja chose in 1947 to join India, although a majority of his subjects were Muslim. India maintains that his decision and the subsequent elections in Kashmir have made it an integral part of India. Pakistan asserts Kashmiris' rights to self-determination through a plebiscite in accordance with an earlier Indian pledge and a UN resolution. This dispute triggered wars between the two countries in 1947 and 1965.

In December 1971, following a political crisis in what was then East Pakistan and the flight of millions of Bengali refugees to India, Pakistan and India again went to war. The brief conflict left the situation largely unchanged in the west, where the two armies reached an impasse, but a decisive Indian victory in the east resulted in the creation of Bangladesh.

Since the 1971 war, Pakistan and India have made only slow progress toward normalization of relations. In July 1972, Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto met in the Indian hill station of Simla. They signed an agreement by which India would return all personnel and captured territory in the west and the two countries would "settle their differences by peaceful means through bilateral negotiations." Diplomatic and trade relations were re-established in 1976.

After the 1979 Soviet invasion of Afghanistan, new strains appeared in India-Pakistan relations; Pakistan supported the Afghan resistance, while India implicitly supported Soviet occupation. In the following eight years, India voiced increasing concern over Pakistani arms purchases, U.S. military aid to Pakistan, and Pakistan's nuclear weapons program. In an effort to curtail tensions, the two countries formed a joint commission. In December 1988, Prime Ministers Rajiv Gandhi and Benazir Bhutto concluded a pact not to attack each other's nuclear facilities. Agreements on cultural exchanges and civil aviation also were initiated.

In 1997, high-level Indo-Pakistani talks resumed after a 3-year pause. The Prime Ministers of India and Pakistan met twice and the foreign secretaries conducted three rounds of talks. In June 1997, the foreign secretaries identified eight "outstanding issues" around which continuing talks would be focused. The dispute over the status of Jammu and Kashmir, an issue since partition, remains the major stumbling block in their dialogue. India maintains that the entire former princely state is an integral part of the Indian union, while Pakistan insists that UN resolutions calling for self-determination of the people of the state must be taken into account.

In September 1997, the talks broke down over the structure of how to deal with the issues of Kashmir and peace and security. Pakistan advocated that the issues be treated by separate working groups. India responded that the two issues be taken up along with six others on a simultaneous basis. In May 1998 India, and then Pakistan, conducted nuclear tests. Attempts to restart dialogue between the two nations were given a major boost by the February 1999 meeting of both Prime Ministers in Lahore and their signing of three agreements. These efforts have since been stalled by the intrusion of Pakistani-backed forces into Indian-held territory near Kargil in May 1999, and by the military coup in Pakistan that overturned the Nawaz Sharif government in October the same year.

SAARC. Certain aspects of India's relations within the subcontinent are conducted through the South Asia Association for Regional Cooperation (SAARC). Its members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Established in 1985, SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics, and terrorism.

SAARC has intentionally stressed these "core issues" and avoided more divisive political issues, although political dialogue is often conducted on the margins of SAARC meetings. In 1993, India and its SAARC partners signed an agreement gradually to lower tariffs within the region. Forward movement in SAARC has come to a standstill because of the tension between India and Pakistan, and the SAARC Summit originally scheduled for, but not held in, November 1999 has not been rescheduled.

China. Despite suspicions remaining from the 1962 border conflict between India and China and continuing territorial/boundary disputes, Sino-Indian relations have improved gradually since 1988. Both countries have sought to reduce tensions along the frontier, expand trade and cultural ties, and normalize relations.

A series of high-level visits between the two nations has helped to improve relations. In December 1996, Chinese President Jiang Zemin visited India on a tour of South Asia. While in New Delhi, he signed, with the Indian Prime Minister, a series of confidence-building measures along the disputed border, including troop reductions and weapons limitations.

Sino-Indian relations received a setback in May 1998 when India justified its nuclear tests by citing potential threats from China. These accusations followed criticism of Chinese "aggressive actions" in Pakistan and Burma by Indian Defense Minister George Fernandes. However, in June 1999, during the Kargil crisis, External Affairs Minister Jaswant Singh visited Beijing and stated that India did not consider China a threat. Relations between India and China are on the mend, and the two sides handled the move from Tibet to India of the Karmapa Lama in January 2000 with delicacy and tact.

New Independent States of the Former Soviet Union. The collapse of the Soviet Union and the emergence of the Commonwealth of Independent States (CIS) had major repercussions for Indian foreign policy. Substantial trade with the former Soviet Union plummeted after the Soviet collapse and has yet to recover. Longstanding military supply relationships were similarly disrupted due to questions over financing, although Russia continues to be India's largest supplier of military systems and spare parts.

Russia and India have decided not to renew the 1971 Indo-Soviet Peace and Friendship Treaty and have sought to follow what both describe as a more pragmatic, less ideological relationship. Russian President Yeltsin's visit to India in January 1993 helped cement this new relationship. The pace of high-level visits has since increased, as has discussion of major defense purchases.

United States. India's nuclear tests in May 1998 seriously damaged Indo-American relations. President Clinton imposed wideranging sanctions pursuant to the 1994 Nuclear Proliferation Prevention Act. The United States encouraged India to sign the Comprehensive Nuclear Test Ban Treaty (CTBT) immediately and without condition. The U.S. also called for restraint in missile and nuclear testing and deployment in both India and Pakistan. The nonproliferation dialogue initiated after the 1998 nuclear tests has bridged many of the gaps in understanding between the countries. However, India has yet to sign the CTBT, agree to a fissile material production moratorium, or define its intentions on acquiring a nuclear deterrent clearly. U.S. sanctions on Indian entities involved in the nuclear industry and opposition to international financial institution loans for non-humanitarian assistance projects in India remain sources of friction.


Disputes - international: boundary with China in dispute; status of Kashmir with Pakistan; water-sharing problems with Pakistan over the Indus River (Wular Barrage); a portion of the boundary with Bangladesh is indefinite; dispute with Bangladesh over New Moore/South Talpatty Island

Illicit drugs: world's largest producer of licit opium for the pharmaceutical trade, but an undetermined quantity of opium is diverted to illicit international drug markets; major transit country for illicit narcotics produced in neighboring countries; illicit producer of hashish and methaqualone