Syllabus : GS 2 : International Relations & Social Justice
Context :
Current Visa and Skill Gap Challenges
o Despite the need for Chinese expertise, the Indian government imposes restrictions on Chinese professionals due to national security concerns.
o In 2019, Chinese nationals received 200,000 visas, but the number dropped sharply following border clashes in 2020, with accusations of visa violations and money laundering against Chinese personnel.
o Visa issuance for Chinese technicians is currently undergoing intensive screening, delaying the process.
o The acknowledgment of India’s skill deficit is crucial, highlighting that even labour-intensive production requires a high level of expertise.
o China developed this expertise over the past 40 years, becoming a global manufacturing hub with less expensive experts than those from other countries.
o India’s education system lags behind China’s, with only about 15% of Indian students having basic international skills compared to 85% of Chinese students.
o This education gap underscores the urgent need for foreign expertise to fill technical roles.
Historical and Comparative Insights
Future Implications and Recommendations
o India must improve its education system to harness foreign expertise effectively and develop its domestic capabilities.
o The economic success of countries like Korea and China is attributed to their investment in education and strategic use of foreign knowledge.
o India’s poor educational outcomes hinder its ability to compete globally and attract foreign investment.
o India’s restrictive visa policies and educational inadequacies risk missing out on global manufacturing and technology trends.
o This could further isolate India from significant economic advancements and investment opportunities.
o To avoid further economic setbacks, India must address its educational deficiencies and reconsider visa restrictions for foreign experts.
o Enhancing domestic capabilities and integrating foreign knowledge is crucial for future growth.
Conclusion:
Evolution of India China Relations: A Timeline
o 1950: India recognizes the People’s Republic of China, and establishes diplomatic relations.
o 1954: Signing of Panchsheel Agreement emphasizing peaceful coexistence.
o 1962: Sino-Indian War over border disputes, China wins decisively.
o 1959-1962: Unilateral changes to the Line of Actual Control, leading to conflict.
o Decades later, China claims Arunachal Pradesh as an integral part, straining ties.
o Limited diplomatic and trade engagements due to mutual distrust.
o India’s closeness with the Soviet Union and China’s stance against the USSR heighten tensions.
o Deng Xiaoping’s reforms from 1978 paved the way for economic growth, and openness.
o 1988: Indian PM Rajiv Gandhi’s visit to China marks significant advancement.
o Agreements were signed to maintain peace along the border, Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) was established in 2012.
o Economic cooperation rises as focal point, significant increase in trade and investment.
o Special Representatives Mechanism established to address boundary question.
o Occasional military standoffs over regions like Aksai Chin and Arunachal Pradesh.
o 2017: Doklam standoff leads to significant strain.
o June 2020: Galwan Valley Clash results in casualties on both sides, intensifying tensions.
Challenges Associated with India China Relations
o Both countries share around 3,488 km-long Line of Actual Control (LAC) that runs along the Himalayan region, much of it poorly demarcated.
o China considers Tibet to be the right hand’s palm of China with Ladakh, Nepal, Sikkim, Bhutan and NEFA (Arunachal Pradesh) as its five fingers.
o An estimated 50,000-60,000 troops have been posted on either side of the India-China border in eastern Ladakh.
o Sino-Indian border skirmishes are a part of China’s larger “Salami Slicing Strategy”, wherein China is undertaking small geopolitically unlawful steps to achieve a larger gain which would have been otherwise impossible to carry out all at once.
o China has been consistently building infrastructure in border areas including roads, bridges and model villages etc.
o For instance, China has constructed around 628 well-off villages along India’s borders with the Tibet Autonomous Region, understood as dual-use infrastructure for both civil and military purposes.
o India opposes China’s Belt and Road Initiative (BRI), as it violates India’s sovereignty and territorial integrity, as the China-Pakistan Economic Corridor passes through parts of the Pakistan occupied Indian state of Jammu & Kashmir.
o Building ports and naval facilities under String of Pearls would encircle India which would allow China to influence and control key maritime routes in the Indian Ocean.
o String of Pearls is a geopolitical and geostrategic initiative which includes a network of Chinese military and commercial facilities which extend from the Chinese mainland to Port Sudan in the Horn of Africa. Ex- Hambantota port.
o China’s “Debt Trap Diplomacy” influences India’s relations with other countries like Maldives, Sri Lanka, Myanmar and Nepal, thereby hindering India’s neighbourhood first policy.
o Recent change in Maldives’ stance towards India, setting a deadline for withdrawal of Indian troops from Maldives, is a consequence of its growing proximity to China.
o India has a trade deficit of USD 83.2 billion with China in 2022-23.
o Further, India’s dependency on Key Starting Materials (KSM) from China exceeds 50% for its Pharmaceutical industry.
o No formal treaty has been established for the sharing of the Brahmaputra River water has been a significant source of tension with China constructing numerous dams in the upper reaches of the river on which India has raised objections.
o China claims sovereignty over part of the SCS, via the 9 dash line and its illegal creation/militarisation of artificial islands in the SCS.
o China’s “Nine-Dash Line” refers to a demarcation line used by the People’s Republic of China to assert its territorial claims in the South China Sea.
o China recently voiced objection to Vietnam’s invitation for India to invest in the oil and natural gas sector in the contested SCS.
India-China Bilateral Trade Overview
Indian Efforts to Counter Chinese Influence
o Established in 2007.
o Members: United States, Japan, Australia, and India.
o Aim: To keep the strategic sea routes in the Indo-Pacific free of any military or political influence. It is basically seen as a strategic grouping to reduce Chinese domination.
o I2U2 (India, Israel, the UAE, and the US):
o I2U2 is also referred to as the ‘West Asian Quad’.
o Aims: To discuss “common areas of mutual interest, to strengthen the economic partnership in trade and investment in respective regions and beyond”.
o INSTC was initiated in 2000 by Russia, India and Iran.
o It is a multi-modal transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia.
o IMEC (India Middle East Europe Economic Corridor):
o IMEC Corridor offers multi-modal connectivity from India to Europe, potentially reducing transit time and costs.
o Through this, India is expanding its naval bases and improving relations with strategically placed countries to counter China’s strategies.
o It is a regional cooperation initiative of the Indian Ocean Rim countries to promote economic and technical cooperation, including expansion of trade and investment.
