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196
CHAPTER VI
THE IMPACT OF SAARC ON SOUTH ASIAN RELATIONS
The pofiry of non alignment has united the South Asian
countries regionally and economically. Pakistan's membershipwith
SEATO and CENTO during earlier decadesdid not create a senseof
its identity in the region. As a result it came out of these military
alliances during early 1970, and embraced the policy of
non-aliagnment. The end of the cold war has not diminished ttre
importanceand relevanceof non-alignment. growing popularity as a
Its
movementwith 113 countriesis a manifestation its popularity. In
of
South Asia all the countriesare following this policy of non alignment
to play an independentrole in internationalpolitics. The NAM has
contributed greatly for the emergence SouthAsian Unity.
of
I
The formation of the SAARC is another milestone in the
promotion and sustenance South Asian solidarity. It is true that
of
bilateral issues donot come within the purvrew of its charter yet,
amongthem. The impact
indirectly it has facilitatedthe understanding
of the SAARC on SouthAsian Relationscan be examinedas follows:
have beenableto
Bilateral Relations:The SAARC countries
promote their bilateral relations in the meaningfirl menner. The
socio-economic cultural
and programmes
adopted the SA\r{IrC
by have
createdunderstanding lndia and Pakistan;
between betweentndia and
Bangladesh;
between
IndiaandNepal;IndiaandSrilanka.
INDO-PAK BILATERAL RELATIONS:
,r'
- Despite, the confontationist approach adopted by pakistan
regarding the Jammuand Kashmir issue, the Gor ernmentof India has
adopted a friendly and conciliatory approach towards it under the
umbrella of SAARC. Several agreementssigned between two
countries in recent years are very helpfirl for the removal of
misunderstanding.
'j
.
The agreements the nuclear restraint, art and culhre,
on
education,and sportsare the landmarksin their bilateralrelations.l
Moreover,the SAARCdeliberations
have influenced
themto contain
terrorism, drug trafficking, smuggling and bordercrossins. The
fourth SA'r{I{Csummitheld in 1989 in Islamabad
furthercontributed
^' for intensiftingcooperations economic,
in medical
and culturalfielfu.
went to Pakistan July 1989,His talks with prime
Mr. Rajiv Gandhi in
Minister, BanezirBhuffowas fruitfrrl and both of themagreed end
to
the confrontation the Siachen
in area. They were hopefutof finding
earlysettlement this issue.
of
198
Severalroundsof talks betweenthe two countrieshave been
encouraged the SAARC deliberations
by In
and declarations. April
1990India proposed package confidence
a of buildingmeasures
like
exchange information
of militarypositionandstopping hostile
about of
propaganda
againsteachother. In the Fig. 9 military expenditure
of
thesetwo countries clearly indicatesthe fluctuating tendency. It
uponttre situation the international
depend at level. Both the countries
are including in arms race in the region. In L991 the Foreign
of
Secretaries the two countries a meetingin New Delhi agreed
at on
notificationof military excisesand preventionof airs space
advance
violation. Moreover, the sixth round of meetingat the Foreign
levelhelpedin the signing two agreements
Secretary of the
banning use
of chemical
weaponsand the establishment a code of conductfor
of
of
deploments two cotrntries. The meetingbetweenPakistanPrime
Minister,Nawaz Sharifandthe IndianPrimeMinister,Narasimha
Rao
at the time of commonwealth
summitmeetingin Harare in October
1994firther helped cometo a closer
to turderstanding.
The recent developments
reveal the preparedness both the
of
countries sortoutbilateralissues
to and promotemeaningful
dialogue.
The SAARC has contributed mite towards normalisingIndo-Pak
its
relationswithin certainlimitations. Meaningfulbilateral relationship
would help these two countriesto bring about rnutually beneficial
development crucialarraslike education,
in technology
science, trade,
communication
etc.
199
Fig.9.
Militaryexpenditure percentag"oi gross domestic
as
t
p r o d u c G . D . P1 9 8 5 - 1 9 9 0
.
1985 1987 1985 1987
15.6%17.3o/o 1 6 . 6 % 20.3Yo
1990 19 8 8 1990 19 8 8
1990
15.60,/o
16.3% 16.1Yo1 7 . 1 %
19ia,6
19 8 9 1989 19 8 9
16.1o/o 16.3",' e 13.1o/o
lndia Pakistan Sri Lanka
So u r c e : Qu o te di n P e rva i z q b a l Cheem a,' Ar m sbuildup in SouthAsia,
l
lmpacton the process peaceand development the region' SMRC -
of in In
2000 and beyond, pp-50.
200
The Government India has taken the lead for improving
of
bilateralrelations the PrimeMinisterof India visitedPakistan
and on
20th February1999. His journeyfrom Amritsarto Lahoreby road
created a new history in recent time. He was receivedby his
counterpart Nawaz Sharif. This visit was described truly historic
as
visit which would heralda "new beginning" Indo-pakrelations.It
in
was also observedthat so called "Bus diplomacy" would createa
congenial
atmosphere
between two countries. Both the leaders
the
reaffirmed
their commitrnent the goalsandobjectives the SAARC
to of
andto strengthen effortstowards realization SAARCvision
their the of
with a view to achieve growth,socialprogress cultural
economic and
development. The joint statementpopularly known as Lahore
declaration
signed February
on 21st 1999contained points
significant
for the promotion of better understanding
between the two. The
followingaremostimportant
points.
1. Discussiorrwere conductedon the wide range of bilateral
issuesand regional cooperationwithin the SAARC framework. The
two leaders embodied their shared vision of peace and stability
betweenthe two countries. They decidedthat the Foreign Ministers of
the two countries would meet periodically to discuss all issues of
mutual concernincluding the nuclearrelated issues.
201
2. The Foreign Secretaries of the two cotmtries, signed the
Memorandum of Understanding to identifoing measure aimed at
promoting an environment of peace and security between the two
countries. The MoU signed by the Foreign Secretaries Lahore in
in
February has committed the two cormtries to hold consultations on
security concepts,and nuclear doctrines with a view to developing
meastrresfor confidence- building in the nuclear and conventional
fields to avoid conflict. It also included agreements inform each
to
other in advanceaboutmissile tests, an agreement prevent incidents
to
at sea, and bilateral consultations on security, disarmament
and non-
proliferationissues.
During his visit to Pakistan India prime Minister, A.B.vajapay
pakistan. He also
declaredthat India wanted a stable and independent
stressed point that both the countries shouldlive together. He came
the
out in favour of India and Pakistan cooperatingin nuclear field.2 He
said, "as ofhow two countries getting information for third country
thereis a needto chanee
this".3
Thus, it becameclear that the SAARC has certainlydone a
commendable to promotethe possible
work partnership
betweenIndia
and Pakistan. It is desirable permit the discussion the bilateral
to of
problerns the SAARC ministerial md summitlevel meetings. It
at
would reduce the interferencefrom other courtries and mutual
202
suspicion.Even today Jammu and Kashmir is a burning issue in the
relationshipbetweenthe two countries.4 Trris has to be resolvedwith
firm determinationunder the SAv{ItC umbrella. This would put an end
to terrorism in Jammuand Kashmir.
The two countries are also negotiating the solution to the
problems of SiachanGlacier and 'Sir Creek' a small place which
separates
Gujrat (India) from the Pakistanprovince of Sind. The sixth
round of.talks held in November 1998,in New Delhi discussed
mainly
botndary issuein the "Sir Creek" area. According the opinion of two
countries. The Lahoredeclarationwould go a long way for the closer
understandingbetween two countries. The momentum of a forward
movement within the framework of the S,AARC needs to be
strengthened.
The release of prisoners from both the countries on
March 22, 1999 was a right step in the direction of the forward
movement. "lndia's unwillingnessto allow any referenceto the Lahore
Declaration on the ground that bilateral issues are stnctly off the
agendaat the SAARC forum demonstrated inability to get out of the
an
diplomatic rut .... It is a sign of the maturity of a multilateral grouping
when its membersagree to disagreeand not shy away from problems
evenbilateraloo.r.5
,, 203
It may also be pointed out here that frequenttalks at the Foreign
Secretaries'level have been conducted both in New Delhi and
Islanabad to narrow down the differences on peace and securityand
Kashmir, Siachen, wular Barrage, sir creek, terrorism and drug
trafficking, economic and commercial cooperation, and promotion of
These8 issuesare popular known as "two plus six"
friendly exchanges.
issues.India has offered to hold secretary- level talks in June 1999.
The growing relafionshiphas facilitated the establishment a joint
of
chamberof commercein April, 1999. This was envisaged the Prime
by
Minister of both countries in February, 1999. Speaking on the
inaugural on April 10th in New Delhi leading industrialists from
Pakistan cailed upon India to permit transit of goods between the
SAARC countriessuch as Nepal, Pakistan and Bangladesh facilitate
to
greater regional trade. tndia also underlined the regional cooperation
in view of globalisation
and liberalisation.Indias Minister for indusbry
Mr. Sikandar Bakht said: "BOth India and pakistan have
acknowledged emergence the global village. We shouldshed
the of
our inhibitions and join hands for enhancing our bilateral trade to
mutual advantage".6The Fig. f 0. shows that, -apart from this
dwelopment,both the countriestrade balancefrade relationsgoing
normallywith maintaining
balance
trade in SouthAsia.
; 201
i
Fig. 10..
Pakistan Trade with SAARC Countries
c)
o)
(g
-
q)
L
o
o-
-
a
0)
-t
E
1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8 1 9 3 9 1 9 9 01 9 9 1
EE India-Export EtrBangladesh-Export
& l S ri L a n ka -E xpor t - lndia- lmpor t'
xB a n g l a d e sh -lmpor t Sr i Lanka- lmpor t
+
Source: Directory TradeStatisticYearBook1985and lgg2.
of
IMFWa sh i n g to D .C .
n
205
SAARC'S CONTRIBUTION TOWARDS IMPROVED
RELATIONS BETWEEN INDIA AIYDBANGLADESH:
The birth of Bangladesh 1971with supportof India is an
in
unforgettableevent in both countries.The Treaty of Friendship
Cooperation Peace
and signed March 19, 1972by IndiraGandhi
on
and Sheikh Mujibur Rehman became landmark for excellent
relationshipbetweenthe two countries. India supportedthis new
counbryin all respects. But the nilitary upsurgein Bangladesh
in
August 1975 harmedthe relationshipbetween the two countries.
However,the emergence SAARC in 1985 became blessing
of a in
disguise for the removal of misurderstandingbetween the two
countries : -
i
The SAARC hasgreatlyinfluenced two countries resolve
the to
their bilateraldisputepeacefi.rlly
without outsideinterference. 1992
In
India solved the problemof "Tin Bigha" by handingover it to
Bangladesh a long-termleasebasis for the period of 99 years.
on
Regardingthe disputeover the "New Moore Island" in the Bay of
Bengal,India hasbeenfollowinga caustions
approach.
During the meetingwith the Prime Minister of Bangladesh,
SAARC relatedmatters,
bilateral
iszues
suchas sharing riverwaters,
of
demarcation of land boundary, transit facilities and economic
206
cooperation discussed thePrimeMinister,p.V.Narasimha
were by Rao
in his visit to Dhakaon 10-11April lg%.7 India and Bangladesh
relations
remained high during 1994-95
rvith the exchange several
of
highlevelvisitsduringFebruary August lgg4.ln the same
to yearon
20 December, Bangladesh
the jointly
Festivalof Arts was inaugurated
by India and Bangladesh.8 Indian scientists
The met on september
l9th in Dhakaon a scientific
cooperation
concluded agreement
an for
-9
1993 4 with Baneladesh.
The dispute regarding sharing the Ganga water has been
solved peacefully.. India has cooperatedto solve this water dispute
ever sincethe emergence Bangladesh. The interim agreements
of of
1975 and 1977 aimed at peacefi.rlsolution to the problem. The
SAARC has provided greater opportunity to find the permanent
solution to the problem. A landmark 3O-yeartreaty on sharing of
Gangawater was concludedbetween two the countrieson December
12, 1996at New Delhi. This hashelpedto restore special
the bilateral
relationship. According to Bangjadeshsource,the sharingof Ganga
flows at Farakkaduring the dry seasonsof 1998 and 1999 were very
satisfactorv.9
The 33rd meeting of the Indo-BangladeshJoint Rivers
Commission held in New Delhi on April 10thand llth 1999.It
was
discussed
issuesof mutual interestin the area of water resources
207
including tying up of the embankments corrrmonborder rivers,
on
sharingaspectsof the Ganges, Teestariver water, improvement
of
flood forecastingand warning,sharingof other commonrivers and
problemof commonborderrivers.Both the countriesagreed work
to
out arangements for long- term sharing of river waters ooftlmon
between both countries endorsed good will generated
and the benneen
themin recenttimes. Indiaoffered assistance the implementation
its in
of ttre Ganga Barrage Project in Bangladesh. In the words of
Bangladesh PrimeMinister Sheikh Hasina"the treaty could influence
the courseof bilateralrelations theyearsto come".
in
Furttrerthe Gujral Doctrineenunciated Gujral, the Foreign
by
affairs Minister in the United Front Governmentalso contributed
largely for improvedrelationswith neighbouringcountriesincluding
Bangladesh. Its key elementssuch as mutual non-interference
in
internal affairs of anothermutualrespectfor each other'stenitorial
integnty and sovereignty, peacefirl
and settlement disputes the
of on
basis of bilateralismhave influencedBangladesh-Bhutan, Srilank4
NepalandMaldivesto dealwith Indiarespectfrrlly.lO
since 1986,therehavebeenfrequent
visits by the leaders two
of
countriesto continuefriendly dialogue. I.K. Gujral who rvas the
ForeignMinister in the V.P SinghGovenrment,
went to Dhakain 1990
andthe Bangladesh PrimeMinisterBegrrmKhelide zia visitedIndiain
208
prime Ministerto New
May 1992. Againthe visit of the Bangladesh
Delhi in December1996, the visit of lndia's prime Minister Mr.
Devegowda Bangladesh January1997went a long way for the
to in
consolidation bilateralrelationship.His visit, the fust by an Indian
of
PrimeMinistersince1973,
coincided
with SilverJubileecelebration
of
Bangladesh
liberafion.
The Chalcnarefugees
problemis considered a minor irritant
as
in the relationsbetweentwo countries. Thereare more than 60,000
Chakmarefugees India. Hence,India has been negotiating
in with
Bangladesh therepatriation thoserefugees Bangladesh.
for of to They
are the indigenous
Buddhisttribals who havefled to India with n fear
of persecution the handsof Muslim fundamentalists.
at Most of them
arestayingin Tripuraiand pradesh.Theyarenot recogmzed
Arunachal
aslndiancitizens.
It is gratifinng note that in the field of trade and commence
to
therehasbeena marked
improvement the bilateralrade relationship
in
with growingtradecollaboration.
Bangladesh's
fade shareof imports
increased
over the years. It is also beneficialto all SAARC member
countries.Table17giesthe detailsin this regard.
209
'I'able
l7
Bangladesh's
Tradervith SAARC Countries
Exports Inlports
Trade Exports Irnports Shareof Shareof
Year balance Total Total
Value Grorvth Value Grorvtlr exports lmports
)
191, (%)
I 980 68 60 96.20 - 2 76 790.2 26t 0.6 8.68 3.68
l98l 65 40 - 4.66 124.30 29.21 - 58.9 791.3 265t.4 8.26 169
1982 63.00 - 3.67 72.30 - 4 t . 8 3 - 9.3 768.0 2418.5 8.20 3.28
I 983 61.60 -) 11 60.00 - 1 7 . 0 1 1.6 724.0 2291.1 8.51 ) A )
I 984 t 0 65 0 - 72.89 79.20 32.35 273 9 3t . 3 2870.3 1144
. 2.76
"t6.50 -
| 985 28.17 87.40 I0.35 - t0.9 998.8 )s)6,1 7.06 3.46
l 986 5 3 . 9 0 - 29.54 9 r . 1 0 4.73 - 37.2 888.9 2550.4 6.06 3 . s 7i
1987 44.20 - 180 I t 6 . 9 0 28.32 - 72.7 .r.
I076.8 2730.3 t0 1.28
I
| 988 64 60 4 6 . 1 5 r60.20 37.04 - 95.6 l29l.l 3034.
I 5.00 5.28
| 989 e0
50. - 2 1 . 2 1 r 6 2l.0 t .t 9 - n2.2 130-lc) 36t7.6 1.90 448
I 990 60.50 1 8 . 8 6 249.90 5 4 1 6 - | 87.4 l67t 8 3656I 3.62 684
|991 79.30 31.07 25I .80 0.76 - 172.5 1687
5 1381.4 1.70 715
Source:Directory Trade
of year Book r9g5 andl992tMF
Statistics
Ers
210
INDIA AND NEPAL - THB GROWING PARTNERSHIP:
Nepal, a landlocked country in the Himalayan region has been
respectedand helpedby India. Both the countrieshave almostsimilar
customs, rituals and religious practices. They also share common
culhre and hencethey have a,specialrelationship. Nepales are free to
carryout trade, own property,take up any private and Govemmentjobs
in India. An estimatedfour million Nepalees live in India and some
2,00,000Indiansresidein Nepal.
After tndia becameindepandentshe committed to develop the
special relationshipwith Nepal. This was culminatedin the treaty of
peace and friendshipsigned by two counfriesin July 1950. Many
reciprocal privileges in such matters as residence, ownership and
participationin tradeand commercehave been includedin this treaty.
This treafy has a provision for equal treatmentof the nationals of each
other's countries. At present both the countriesallow each other's
citizenswithout visas.
Since 1985 India has greatly contributedfor the comprehensive
developmentalwork in Nepal. The Rajiv Gandhi region took some
measuresfor the beneficial Indo-Nepal relations. This was continued
during the period of v.P.Singh,I.K.Gujral, Minister for externalaffairs
2tr
said "Nepal'sproblems
and concerns
will considered us not only
by
with understanding alsowith genuine
but l
syrnpathy friendship,,.l
and
The visit of PrimeMinister,
chandrasrr.karon February
l3-15.
1990was a landmarkin the bilateralrelations. He said:"I call upon
Nepali friends to discard their earstwhile hatred and with full
confidence accepthandof cooperation offer". A visit to Indiaby
we
the NepalesePrimeMinister,KrishnaprasadBhattaraiin June,1990
hadimprovedthe Indo-Nepalese
relations.Further,Indiaalsohasfied
to help Nepal in many projectsof economicdevelopment.These
includedevelopment communication,
of constmctionof irrigationand
power projects,constructing educational
of and technicalinstitutions,
andAutomaticTelephone
Exchange Kathmandu.India hasalsoset
at
up Phoneexchange Nepal.She alsoagreed setup a telephone
in has to
link at Rangeliin Morang district.l2 India has decidedto supply
10,000million tonnesof wheatand 130.00million tonnes nce to
of
Nepala gesture friendlyrelatinship.The agreement effecting
of for the
supplies
was signedbetween
India and Nepal Food Cooperatrons
on
May 28th lgg2.l3
Further,India hasgreatlycontributed economic
for development
and democratisation political systemin Nepal. The SAARC has
of
given a great boost for the strengthening multi purpose
of relationship
212
betweenthe two countries. India has had dispelledthe Nepali fear that
it would dominateNepal underthe 1950treaty.
The crown prince of Nepal paid first official visit to India in
August lgg4"and the NepalesePrimeMinister visitedto India in 1995.
Thesetwo visits were very important to remove the misunderstanding
between the two counties regarding the Free Trade Area in the
SAARC region to galvanir. ..onorny.l4 The visit of Indias Foreign
Minister kanab Mukarji in January 1996 to Nepal gave a fresh
impetus to enhance the bilateral trade and economic cooperation.
India-Nepaleconomic relationshave gained the stable and positive
framework provided by the treaties of trade and hansit. Nepalese
exportto India during 1993-94was estimatedto be Rs.1,176,3
million
and importsfrom India valuedworth of Rs.7,874,43million. Indiahas
a free trade arrangement
with Nepal. The Fig. 11. showsthat Nepal's
Trade in imports value increased among the SAARC member
countries.
Since 1986 the SAARC has profoundly encouraged two
the
countriesto enise the misunderstanding
and to concludeseveral
bilateraltreaties. Both the countries to proposal
have agreed discuss
to updatethe treaty of 1950, and to boost the bilateralfiade. The
Mahakali
treatysignedby the two countries 1996aimsat integrated
in
development Mahakaliriver projects Nepal.
of in
213
i;
F i g .1 1 .
Nepal's
Trade
with SAARCCountries
250
200
.f qn
@
?
€ 100
=
,g
Q
o
-t 50
E
n
-50
-100
1 9 8 01 9 8 1 1 9 8 21 9 8 3 9 8 41 9 8 51 9 8 61 9 8 71 9 8 81 9 8 91 9 9 01 9 9 1
1
- Year
source: Directory rradestatistic
of YearBooklggs and19g2.
IMF
Washington D.C.
214
REIVEWED FRIENDSHIP BETWEEN INDIA AND
SRILANKA:
CulturallyandraciallytherearemanysimilaritiesbetweenIndia
andSri Lanka. lndia'sobjectives Snlanka
in constitute restoration
the
relations their traditional
of India-Srilanka to level of cordialityandto
strivefor the safety,securityanddemocratic of
aspirations the Tamils
and Srilankansin that country. However,many Srilankanshave
towards India becauseof its size and
developedan apprehension
prominent in SouthAsia.
role
has
The Government India sinceits independence respected
of
the independence sovereignty its small neighborsincluding
and of
India and has shown a great
Srilanka. Srilankahas also respected
for ln war
desire friendlyrelations. theIndo-Pakistan of l97l Srilanka
had remainedneutral. In the sameyear on the requestof Srilankan
Government, India offeredmilitaryassistance containinsurgency
to in
that courtry. Thedisputed "Kachchativu" islandwas givento Srilanka
Reasons misunderstanding: Ethnicproblem
:rn1975. for The erupted
in 1983 has been greatly responsible for the occasional
betweenthe two countries. The Nebru-Kotewla
misunderstanding
pact
agreement 1954,andthe Shastri-Sirimao of 1964did not solve
of
Lakhsof IndianTarnil ongtnhavebeen
the ethnicproblemin Srilanka.
lirring in Srilanka for a long time, and they have fonned many
215
organizationsto fight for their rights including citizenship and
self-determination.
After the birth of SA\r{IlCthere was a greatdesirebetweenthe
two countries resolve
to this ethnicc.isis.l5 Hence,
India offeredits
mediationin 1987. The result was the signing of India-srilanka
agreement July 2.9,1987 colombo by theprimeMinisterof India,
on at
Rajiv GandhiandSrilanka
President Jayewardane. Rajiv GandhiSaid.
"Thisagreement
wouldremove pasttensionandmisfirrst marksthe
and
beginningof new chapterin Indo-Srilankarelations".However,the
despatch tndianPeace
of KeepingForce(lpKF) was not welcomedby
some leading politiciansof srilanka. After premadasa becamethe
Srilank'sPresident
relationswere strainedover this issue. Although,
IPKF went to Srilankaon the request of that Government
under the
1987agreement, srilankanpresidentgavea deadline to India for
the
the withdrawalof IPKF beforeJuly 1989. It may be recalledherethat
the V.P singhGovernment India withdrewthe IpKF 1990.
of
The congressGovernment by Narasimha
led Rao did not want
to involve directly in this ethnic issues. He followed the
non-interventionist
approach this respect. This was welcomedbv
in
the SrilankaPresident
Premadasa.
2t6
After the assassination premadasa lgg3,the new president
of in
of SrilankaMs. Chandrika
Kumaratunga
committedherselfto improve
bilateralrelations. Her visit to lndia in 1995 and 1996providedan
opportturityto reaffirm srilankan'sfriendshipwith India within the
SAARC framework. The united Front Governmentof India also
decidedto follow a non- intervenitionist
policy towardsSrilankaand
otherneighbors the sub continent. The Indian ForeignMinister I.K
in
Gujral who visitedSrilankain JanuarylggT announced India and
that
Srilankahad agreed the formationof an action goup undersection
to
of 8 of the SAARCcharter promote
to economic
cooperation.l6This
action stD would compriseIndia Srilankaand Maldives. He also
saidBhutan,lndia, Nepaland Bangladeshwould set up another
action
goup for economiccooperation. He firrther remarkedunder the
SAARC umbrellarelationsbetweentndia and Srilankavery cardinal.
andcooperative friendly.
and
In an era of globalisation, liberalization and market
oriented-economy, two countries
the haveboostedbilateraleconomic
and commercialties. India is a leading country which exports to
Srilankamachineries equipments the transportsectorand other
and in
*.ur.l7
The two-way fade between the two countries has been
increasing
rapidlysince1986. Relations
with Srilankacontinued be
to
basedon friendship,understanding good neighbourliness.The
and
217
Srilankan Foreign Minister briefed the Indian leadership about thdu'
srilanka government's agenda including the peace process,
constifutional reforms and economic policies stressed Srilanka's
keeness sourd and cardinal relationswith India.
for
In his address rhe l0th SAARC summit at colombo held in
to
July 1998,the Indian Prime Minister A.B. vajpaye pointed out the
growingfade partnership befweenthe two counfies in the followine
words- "on its part, India is willing to take liberalizafion.I take this
opportunity offer tha! as a specialgesture,
to India will lift qualitative
rcstrictions maintainedfor Balance of payments reasons on a
preferentialbasisfor SAARC countrieswith effect from August I,
1998. Thuswouldinvolve1iftingrestrictions over2,000products
on
and would substantial
increasethe opporhrnities our SAARC
for
parhers access marketandincrease exports".l8
to our their
2r8
Ths table 18 below grves bilateral trade figures from 19g6 till
November1998.The Fig. 12 shows the Srilanka's Trade with stu{I{c
membercountries.India's import is higherthan other countries.
Table 18. Srilinaka's Trade with India.
YEAR IMPORTS FRONI EXPORTS TO
INDIA INDIA
1986 55 8
t987 6l 5
1988 7l l5
1989 57 8
1990 il8 20
1991 217 t3
1992 302 ll
1993 34s 20
r994 404 24
1995 470 32
1996 564 43
1997 5s9 44
1997 493 39
(UptoNov 1998) 493 39
(Upto Nov) 514 32
Source:TheHindu,Feb4, 1999.
219
Fig. I2.
Sri Lanka'sTradewith SAARCCountries
o
o,
(d 100
o
o
o
o-
.c
c)
f
]il
1 9 S 0 9 S l 1 9 8 21 9 8 31 9 8 41 9 8 51 9 8 61 9 8 71 9 8 81 9 8 91 9 9 01 9 9 1
1
Ellndia-export ElBangladeshexport&tMaldives-export
elndia-import
ElPakistan-export Fi'Bangladesh-import
+Maldives-import Pakistan-import
A
Source:Directory TradeStatistic
of yearBook,19g5and
1992,
lMF,WashingtonD.C.
220
Because of increasing bilateral trade both the cormtries
joint
established venhtres institutional
and mechanism.Moreover,the
concept Free Tradebetween two countries beenadvocated
of the has
by thepeople two countries manyyears. It took concrete
of for shape
following the announcement economicpolicy by the Srilanka
of
govemment september1994 and at the tenth SAARC summit
in
meeting.In order to strengthenthis, the Indian prime Mrru-dter
A.B vajpayenotedat the lOthSAARCsummit follows:
as
"we should
aim to conclude treaty(SAFTA) and have it in
this
placeby the year 2001. India would also be willing to consider
bilateral Free Trade Agreementswrth those countries which are
interested movingfaster".19
in
The Free TradeAgreement
was signedby two leaden in New
Delhion December, 1998.Thisaimsat phased
28, elimination tariff
of
on certainitems. This agreement give a fillip to the efforts to set
will
up mechanisms removeunnecessary
to restrictions trade. under
on
this,the tariff on several
specifieditemswould be phased within a
out
time-frame. This agreement cameinto effectfrom March lggg.India
will reduce tariffto zeroin threeyears,
the while Srilankamay do so in
eightyears. Thereis a provisionfor yearlyreview. It is believedthat
this free trade agreementis expectednot only to improve firther
bilateraltradebut alsoenco'rageIndianjoint ventures.The Board of
22r
Investnentof Srilanka aheadyidentifierd
has computer
softwareand
training, light engineering,
rubber productsand pharmaceuticals
for
promotionof Indianinvestrnent Srilanka.
in
INDIA'S RELATION WITH MALDIVES AND BHUTAN:
India's relations with Maldives and Bhutan are excellent and
time tested. Maldives and Bhutan aJe not harbouring any kind of
misunderstanding
with India. Basically lndia'srelationswith Maldives
is very friendly within the framework of the SAARC India is giving
assistance Maldivesfor variousprogrammes projects. Bilateral
to and
cooperation in areas like infrastmctural development, manpower
resource development,health, communicationcivil aviation, culture,
fisheries,defencetrade and commerceetc. are strengthening.India has
also assisted it regarding educational and training facilities, various
fields like science, medicineandtelecommunication.
technology,
Indo-Bhuthanese
relationshavebeenestablished the basisof
on
mutual help and collaboration.The King of Bhutan Jigme Wangechuck
said that there are no problem areasbetweenthe two countriesand he
addedthat decks have been clearedfor further economic cooperation.
India has provided a solid basis for a close and warm relationship
marked by mutual understanding the fields of science,technology,
in
medicine and telecommtrnication. The SAARC forum is institutional
xn
strategyfor the consolidationand continuation the friendshipand
of
cooperation.
CONCLUSION:
. The impactof sAARC on the SouthAsian relationshas been
impressiveand positive to some extent. India as large country is
suspected a "Big Bully" or "Big Brother" by some leaders in
as
Snlank4NepalandBangtadesh. Kashmirissuehascaused pennanent
headache the relationbetweenIndia and Pakistan.
in The leadersof
Pakistan
havebeentrying to internationalise issue advocating
this and a
policy of self-determination the people of Jarnmu
for and Kashmir.
The terroristactivitiesare supported ISI of pakistan,
by and thereby
perpetuating Kashmirdispute. This dispute alsocontributed
the has for
nuclear
armsracebetweenIndia andPakistan.Thenuclear
explosions
conducted the two countriesin 1998has clearlydemonstrated
by the
nuclear
progralnmes two countries.Therefore is advisable the
of it that
bilateral issuesmay also be allowed for discussion for amicable
solutionboth at the ministeriallevel and summitlevelof the SAARC.
Ths would also lead to the possibleprevention Westerninfluence
of
intervention SouthAsian affairs. It is happy to note that at the
in
bilaterallevel relationsamong the sAARC counries have greately
improvedbecause the bold initiatives taken by them particularly
of
India. The water-sharingagreementwith Bangladesh,
free trade
223
agreement with Sri Lanka and the LahoreDeclarationof Febnrary
1999, are the manifestations the positive bilateral movement.
of
Attemptsmust also be made to implement
schemes sub-regional
of
cooperation agreed Bangladesh,
as by Bhutan,IndiaandNepalin 1996
at the ministerial
conference Foreign
of Ministers.
,r'
- In addition to economic and trade cooperation,theSAARC must
addressitself to security aspectsof the region in the wake of western
threatsin different parts of world. The successfirlimplementation of
bilateral agreements
and core issuesof economrccooperationamong
the SAARC countries would solve many problems and encourage
developmental
activities in both bilateral and multilateral fields. South
Asian problemsmust be solvedby SouthAsian themselves.
Ultimately
it would lead to the ahergence of SouthAsian solidarity. This would
help the development the region and to meetthe challenges next
of of
cenhry. During the last fwo years, the political climate for regional
cooperationin South Asia has improved geatly becauseof the interest
shown by the Sfu{ItC countries. The recent developmentsin the
world economy, globalisation, liberalisation, and privatisation have
compelledthem to consolidatethe SAARC as a symbol of regionalism.
Many cormtrieshave tried to meet the challengesof world economy
and neo-colonialismby developing regional groupings. The SAARC
has to strengthen itself z$ a symbol of positive and constructive
regionalism. It will enable the member-countries only to face the
not
224
threatsof neo-colonialism arsoto make the SouthAsian region
but
vibrant and resilient. The settingof Group of Eminent
persons
(GEp)
in the Male summitheld in rggT is the manifestation the SAARC
of
vision. This grouphas submitted report in June,l99g in which it
its
suggested creationof Economic
the union of SouthAsia by the year
2020- As a preludeto this it recommended create freetradearea
to a
by 2010 and customs union by 2015. The goal of South Asian
economicintegration to be achieved
has within a reasonable
periodof
time to improvethe standard life in this regionin the2lst cenhry.
of
225
Reference:
l. chopra, surendra, "Indo-pakistan Rerations" in 1990's
Mainstream,
1995
2. The Hindu, February
22,1999.
3. Bhola B.c. "Past cold war developmentin South Asia", Jaipur,
1995.
M.B "A security
4. Naque, perspective SAARC" Defence
on Joumal,
Vol 15, Oct/Nov
1989.
5. The Hindu,(ed)dated
March,23,1999.
6. The Hindu,April ll,1999.
I
7. India, 1993. A Reference Annual, Research,
Referenceand
Training Division, Ministry of Informationand Broad coasting,
NewDelhi-l994,p.1G5
8.rbid.,
9. The flindu, April 10,1999.
226
10.Frontline,Aprill,1997.
ll. Neighbourhood
Diplomacy,
Mainstream
vol. xxxVIII, No.2,
Jan.I 990.
12.P.T.I.Data,India,
Jan.13-19,311992.
13.Ibid, Janl-7, 23/1992.
14.The Hindu,April,11,1995.
15.Verendra
Grover,
(ed)lndia's policy. lgg2.
Neighbors Foreign
and
,
16.The Hindu, Jan2l,1997.
17.Ibid,February
4,1997.
18.Ibid.Febmary ,1999.
r9.rbid.
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