Indian budget sees increased allocation for Nepal
The Indian government’s budget for the Ministry of External Affairs for the fiscal year 2024/25 has increased allocations for Nepal and Sri Lanka while reducing support for other neighboring countries. Nepal stands out as a major beneficiary, poised to receive InRs 7bn, a substantial increase of InRs 1.5bn from the previous year’s revised budget of InRs 6.5bn.
Sri Lanka’s allocation has also risen significantly to InRs 2.45bn, an increase of InRs 0.95bn from the previous year’s InRs 1.5bn. This boost is crucial for Sri Lanka’s ongoing economic recovery, supported by India’s previous $4bn aid.
Afghanistan and the Maldives maintain their allocations at InRs 2bn and InRs 4bn, respectively. Afghanistan’s allocation remains stable despite last year’s revised budget of InRs 2.2bn.
The Maldives saw a notable increase in its revised budget to InRs 7.7bn, indicating ongoing support for infrastructure projects.
Meanwhile, Bhutan and Myanmar have seen reductions in their aid. Bhutan’s allocation decreased by InRs 3.3bn—yet it still receives the largest share at InRs 20.68bn. Myanmar’s allocation dropped by InRs 1.5bn to InRs 2.5bn, compared to last year’s InRs 4bn, with InRs 3.7bn utilized. Bangladesh’s allocation decreased by InRs 0.8bn to InRs 1.2bn, with only InRs 1.3bn of the previous year’s InRs 2bn utilized.
Similarly, Iran’s Chabahar port project continues to receive a steady allocation of InRs 1bn, unchanged for the past three years, highlighting its strategic importance for India as a gateway to Afghanistan and Central Asia, bypassing Pakistan.
Indian Finance Minister Nirmala Sitharaman presented the first full-fledged budget of the Prime Minister Narendra Modi-led coalition government on Tuesday. From India Inc to the middle class and job seekers, everyone has high hopes for this budget. Additionally, some policy interventions could significantly boost the country’s economic growth and tackle the growing unemployment issue.
Ahead of the budget, Prime Minister Modi asserted that this budget will lay the foundation of ‘Viksit Bharat’ (Developed India). He also said that this is an important budget for ‘Amrit Kaal’, which means ‘great leap’, and could propel India forward on all fronts.
A ‘landmark’ in sub-regional energy cooperation
Indian Prime Minister Narendra Modi has hailed the export of electricity from Nepal to Bangladesh via the Indian grid as a landmark in sub-regional energy cooperation.
Speaking at a joint press conference with Bangladesh Prime Minister Sheikh Hasina in New Delhi on Saturday, Modi emphasized that the swift implementation of such large-scale initiatives in multiple areas within just one year reflects the dynamic pace and scope of bilateral relations.
Last year, Nepal and India signed a long-term power trade agreement, which included India's consent to facilitate the sale of Nepali electricity to Bangladesh. Officials from Nepal and Bangladesh are currently finalizing the modalities of this agreement.
The joint statement underscored the commitment to expanding power and energy collaboration and developing intra-regional electricity trade. This includes competitively-priced power generated from clean energy projects in India, Nepal, and Bhutan, transmitted through the Indian electricity grid. To support this initiative, India will expedite the construction of a 765 kV high-capacity Katihar-Parbatipur-Bornagar interconnection, with suitable Indian financial assistance, to serve as a key anchor for grid connectivity.
Modi and Hasina also discussed regional issues, highlighting the potential of the India-Bangladesh relationship as a major anchor for regional and sub-regional integration under the BIMSTEC, SAARC, and IORA frameworks. They committed to working together on global platforms to advance their common interests, particularly those of the Global South.
As part of sub-regional connectivity initiatives, India will provide transit facilities for the movement of Bangladeshi goods to Nepal and Bhutan via the railway network. The two leaders also reiterated their commitment to the early operationalization of the BBIN Motor Vehicle Agreement to enhance sub-regional connectivity.
Recognizing the significant contribution of their partnership to regional peace, security, and stability, India and Bangladesh reaffirmed their commitment to a free, open, inclusive, secure, and rules-based Indo-Pacific region. With converging visions for the Indo-Pacific and awareness of the region's vulnerability to climate change, India and Bangladesh will co-lead the ‘Disaster Risk Reduction and Management’ pillar of the Indo-Pacific Oceans Initiative (IPOI). They will cooperate to mitigate disaster risks, build disaster-resilient infrastructure, and contribute to the sustainability of their shared maritime region.
Democracy under threat in South Asia
Democracy in South Asia faces critical challenges that jeopardize its very essence. From India to Pakistan, Nepal to Bangladesh, democratic principles are under siege as political actors employ various strategies—persuasion, monetary influence, punishment, and division—to achieve their goals. This article delves into the precarious state of democracy in the region, where traditional strategies outlined in Chanakya's Arthashastra—Sām (persuasion), Dām (monetary influence), Daṇḍ (punishment), and Bhed (division)—are increasingly prevalent.
Rise of populism and infodemic
Sām, once pivotal in democratic discourse, has been overshadowed by populism and demagoguery. Leaders manipulate rhetoric and propaganda via social media, blurring the line between persuasion and manipulation. The misuse of media platforms during elections amplifies misinformation, exacerbating communal tensions and undermining electoral integrity.
In the bustling streets of South Asian cities, amidst the clamor of election campaigns, a significant concern emerges: The infodemic. As political parties compete for power and influence, the misuse of media and social media platforms has become a potent tool in their arsenal, shaping public opinion and eroding the credibility of the electoral process.
The rise of populism and demagoguery has overshadowed the once-central role of persuasion in democratic discourse. Political leaders exploit rhetoric and propaganda to sway public sentiment, leveraging the pervasive reach of social media. During South Asian elections, the manipulation of media platforms shapes narratives, undermining the integrity of the electoral process. Misinformation proliferates rapidly online through fake accounts and sensationalist content, exacerbated by biased reporting in traditional media outlets. This phenomenon, often termed an "infodemic," fuels societal divisions.
Dām: Corrupting influence of money
Dām, characterized using monetary power, has deeply infiltrated South Asia's political terrain, fostering an environment where corruption and cronyism thrive. Wealthy elites and influential interest groups wield disproportionate sway over policymaking and governance, exacerbating inequality and marginalizing disadvantaged communities. This commodification of democracy, where votes are traded like commodities, undermines the foundational principles of equality and fairness that democracy strives to uphold.
The pervasive influence of Dām, or monetary power, in South Asian politics fuels corruption and cronyism, allowing wealthy elites and interest groups to manipulate governance, exacerbating inequality, and disenfranchising marginalized communities.
Daṇḍ: Punishment for adversaries
Despite attempts to utilize punishment to quell dissent, journalists, activists, and political dissidents continue to face harassment, violence, and imprisonment, eroding both freedom of expression and the rule of law. Nevertheless, grassroots movements and civil society organizations persist in their steadfast resistance, championing transparency and accountability. They represent a beacon of hope for a future where democracy prevails over authoritarianism.
It is evident that those in power spare no effort to punish their adversaries, who fall out of favor. This trend is increasingly prevalent in countries like India, Pakistan, and Bangladesh, as well as in Nepal, Sri Lanka, and the Maldives. Such unwarranted harassment of opponents undermines the foundational principles of democracy, where freedom of speech and the ability to criticize are fundamental to a democratic society.
Bhed: Exploiting divisions
Politicians exploit societal faultlines—religious, ethnic, linguistic—to consolidate power. Identity politics fuels social tension and communal violence, weakening societal cohesion and democratic foundations.
In the intricate tapestry of South Asian politics, the insidious strategy of Bhed (division) wreaks havoc on societal harmony. Exploiting faultlines along religious, ethnic, and linguistic boundaries, politicians employ identity politics to consolidate power and rally support. By capitalizing on existing prejudices and grievances, they deepen social tensions and ignite communal violence.
The ramifications of employing divisive strategies like Bhed are severe. Once united communities now find themselves divided, plagued by distrust where harmony once prevailed. Political figures exacerbate these divisions, eroding social cohesion and undermining the foundation of democracy.
The effects of Bhed extend beyond politics, fracturing families with sectarian conflicts, leaving neighborhoods scarred by ethnic tensions, and societies shattered by communal violence. Nevertheless, for those in authority, the tactic continues to yield results: Divide and rule. Recently, the fragmentation of political opponents' parties has become a common practice in India and Nepal. However, amidst these challenges, there is hope for a more inclusive future. Grassroots movements and civil society organizations tirelessly strive to bridge divides and promote understanding. By countering the narrative of division and advocating for unity in diversity, they offer a beacon of hope in a fractured world.
Conclusion
In South Asia’s intricate political landscape, the misuse of Sām, Dām, Daṇḍ and Bhed poses significant challenges. Upholding democratic values requires bolstering institutions, promoting transparency, and nurturing civic engagement. Civil society, media and vigilant citizens must unite to defend democracy against divisive tactics.
In conclusion, while South Asia confronts formidable democratic challenges, collective action can pave the way for a robust and inclusive democracy. By rejecting divisive strategies and upholding democratic principles, the region can forge a resilient path forward.
A surge in high-level visits from China
A high-level Chinese government delegation is visiting Nepal at the invitation of the Ministry of Home Affairs. The five-member team under Ye Hanbing, Vice-governor of Sichuan Province and Commissioner of the Public Security Department of the province, is arriving in Nepal on Tuesday morning. The Ministry of Foreign Affairs and the Ministry of Home Affairs are coordinating the visit.
According to sources, Hanbing’s team will meet with the Foreign Minister, Home Minister, Home Secretary, and other high-ranking officials. Home ministry sources indicate that discussions on matters of mutual and security interest will take place during the meeting. The visiting team includes Deng Hua, Zheng Xiaoqing, Zhong Ke, and Thang Jianxin.
Of late, there has been a surge in high-level visits from China.
Immediately following Hanbing’s visit, a delegation under Chinese Vice Foreign Minister Sun Weidong will arrive in Nepal. According to the foreign ministry, Sun's team will participate in the 16th round of the Nepal-China Diplomatic Consultation Mechanism meeting. The foreign ministry of Foreign Affairs is making preparations for this visit.
Recently, China has intensified its activities in Pokhara and Lumbini, in addition to Kathmandu. For the Chinese New Year, the Chinese Embassy in Nepal organized various programs in Pokhara and Lumbini. Just last week, a high-ranking Chinese official visited Lumbini and Kathmandu. Chen Ruifeng, Chinese Minister for the National Religious and Cultural Affairs Administration, visited Lumbini last Wednesday, accompanied by Chinese Ambassador to Nepal Chen Song, Huang Zhihui, director-general of the General Bureau of National Religious Affairs Administration, and Venerable Master Yin Shun, a member of the Chinese People’s Political Consultative Conference and Vice-chairman of the Buddhist Association of China.
Minister Chen laid the foundation stone for a structure to be built next to the Chinese monastery in Lumbini. Participants in the foundation-laying ceremony included Yin Shun, Ambassador Song, Lumbini Development Trust (LDT) Vice-chairperson Lhyarkal Lama, Registrar of Lumbini Buddhist University Tilakram Acharya, and Deputy Mayor of Lumbini Sanskritik Municipality Kalpana Harijan.
Minister Chen also visited the office of Vice-chair Lama at the LDT. He stated that his visit aimed to promote tourism in Lumbini and sustain cultural relations between Nepal and China. Minister Chen toured the Maya Devi Temple, Ashoka Pillar, Pushkarani Pond, and Shanti Deep to gather information about Lumbini.
Also, Vice-chair of the Chinese People’s Political Consultative Conference (CPPCC), Bateer, paid a courtesy call on Prime Minister Pushpa Kamal Dahal on Sunday. During the meeting, they discussed bilateral relations, mutual cooperation, and the implementation of various agreements between the two countries. Prime Minister Dahal expressed satisfaction over the gradual implementation of the agreements reached during his recent visit to China. He thanked the Chinese government for operationalizing the traditional 14 checkpoints along the Nepal-China border and for gradually implementing important agreements.
