NEW DELHI: India is a world power, so allies in the West would like to believe, but recent developments in its own backyard reveal the limits of the country’s influence and still weak diplomatic force, said analysts. Even in the historically favourable parts of its volatile neighbourhood, New Delhi has suffered reversals in recent weeks, particularly in a high-profile spat with the Maldives, a tiny nation of 300,000 people.
Earlier this month, the Maldives kicked out Indian infrastructure firm GMR and cancelled its $511m deal to run the airport, thumbing its nose at Indian threats to cut off aid. “The Maldives deal collapse can be considered as an isolated event, but it does cast a shadow over India’s ability to take care of its economic interests in the region,” said Wilson John, who heads the Observer Research Foundation think-tank in New Delhi.
The alliance with Maldivian President Mohamed Waheed appears to be heading the way of ties with counterpart Mahinda Rajapakse in neighbouring Sri Lanka, a relationship which has deteriorated steadily over the last few years. Clashes over Rajapakse’s treatment of ethnic Tamils, a politically important group in India, as well as the arrests of Indian fishermen have raised tensions.
New Delhi has also been angered by huge duties imposed on imported cars. Leading Indian business group CII believes Sri Lankan tariffs of up to 200 percent could hit 15 percent of India’s car exports. In the Maldives and Sri Lanka, some see the hand of China, which has forged ties with the governments in Colombo and Male and now offers a richer and more generous alternative to India for investment and infrastructure funding.
India’s new foreign minister, Salman Khurshid, acknowledged as much last week when he said that New Delhi would have to “accept the new reality of China’s presence in many areas that we consider an exclusive playground for India”. This signalled a more pragmatic approach than his predecessor, S M Krishna and others in the Indian security establishment, who are alarmed by China’s maritime strength and growing influence in the Indian Ocean.
“We know how to resolve our disputes with all the countries in the region. It is a slow-moving process but we are moving in the right direction,” Indian foreign ministry spokesman Syed Akbaruddin said. “You see, we cannot send our troops to resolve them.”
In its northeastern neighbour Myanmar, India trails far behind China as the army-ruled country opens up to investment, and critics say New Delhi has been slow to react to recent pro-democracy changes.AFP
