The British organised a conference in Shimla in 1914, which the representatives of China and Tibet attended. The conference’s objective was to negotiate a treaty that would demarcate the border between Tibet and British-ruled India. The British plan was to put pressure on the weak Chinese central government to grant more autonomy to the Tibetans and redraw the border in India’s favour.
There was a bigger imperial British plan: to gradually dismember China, by first cutting off Tibet and then Xinjiang. Britain expected China, which was then under a weak central government and was being dictated to by European powers, to capitulate easily.
The Chinese delegation refused to be browbeaten and succumb to the machinations of the British. But the British went ahead and signed an agreement with a handpicked Tibetan delegation delineating the northern border, which came to be known as the McMahon Line. It was named after a British colonial officer working in India by the name of Henry McMahon.
China vehemently rejected the ad hoc border that the British sought to thrust down its throat. The British warned the Chinese government that there would “be great trouble” if Beijing did not accept the McMahon Line as the border between Tibet and India. Sir Edward Grey, the British Foreign Secretary at that time, warned: “If China does not sign but resorts to an aggressive policy, the consequences must be disastrous for China.”
Both the Nationalists under Chiang Kai-shek and the Communists under Mao Zedong refused to recognise the McMahon Line, arguing that Tibet was not an independent country and therefore had no right to sign a separate border agreement with the British.
Independent India and Communist China established good relations that lasted almost until the end of the first decade of Indian Independence. The Chinese side tried to prevail on the Indian government to negotiate an acceptable solution to the impasse on the border, but Prime Minister Jawaharlal Nehru swore by the sanctity of the McMahon Line bequeathed by the departing colonial power.
Zhou Enlai’s visit
In a last-ditch attempt to find an amicable solution to the border dispute, Chinese Premier Zhou Enlai visited New Delhi in 1960. The Chinese government offered to recognise India’s claim over Arunachal Pradesh up to the McMahon Line in return for India’s recognition of China’s claim over the Aksai Chin peninsula. Nehru rejected the offer and adopted an inflexible diplomatic posture on the border issue.
Nehru was in a unique position to compromise as the border issue had not become as emotive as it is today. The ruling Congress party had an overwhelming majority in Parliament and controlled all the State legislatures. Only the Jan Sangh (the Bharatiya Janata Party’s predecessor) and the small Socialist bloc led by Ram Manohar Lohia, all supporters of Tibetan independence, were against the resolution of the border issue.
The issue of Tibetan independence had become a “cause celebre” in the West and among right-wing and social democratic political parties in India. The Dalai Lama, who had raised the banner of revolt against the Chinese government, sought and was given political refuge in India in 1959, angering Beijing.
A Tibetan government-in-exile was set up under the Indian government’s patronage with liberal funding from the West. The Chinese Communist Party did not let the Tibet issue come in the way of negotiations although a noticeable hardening of positions on each side was visible.
Gyalo Thondup, the Dalai Lama’s elder brother, has claimed that the U.S. Central Intelligence Agency’s (CIA) covert operations in Tibet, which had started in 1956, had made Beijing suspicious about India’s reluctance to settle the border issue. With the tacit approval of the Indian authorities, the CIA had trained and financed a failed guerilla campaign under the leadership of Thondup for a few years after the 1962 war. It is indisputable that one of the major reasons the Chinese decided to go to war in 1962 against India was the perception that New Delhi wanted to restore the “status quo ante” in Tibet so that the autonomous region could return to its pre-1949 status.
‘Forward policy’
Nehru’s “forward policy”,which gave the Indian military the green light to set up military outposts in territory under the military control of China’s People’s Liberation Army (PLA), sparked off the 1962 war. The goal was to expel the Chinese military from all the areas claimed by India. It was a serious miscalculation.
The Henderson-Brooks Report on the 1962 India-China war,which the Indian government commissioned, concluded that the “forward policy” increased the chances of conflict with China. The classified report, which is now widely available online, stated that the Indian Army was not militarily in a position to implement Nehru’s “forward policy”.
According to Chinese military scholars, Nehru’s adventurist military policy was aimed at turning Tibet once again into “a buffer state” between India and China. The Chinese viewed this as a continuation of Britain’s imperial policy.
There is no doubt that Nehru harboured sympathies for the Tibetan cause, but at the same time it should be remembered that it was India which turned down an U.S. proposal made in 1951 for joint action to support the cause of Tibetan independence.
In 1954, India had formally recognised Chinese sovereignty over Tibet. However, New Delhi also encouraged the Dalai Lama to fight for increased autonomy from Beijing. Beijing accused the Nehru government of playing a role in the uprising staged by the Dalai Lama’s followers in Lhasa in 1959. Nehru had sent a message to the Dalai Lama saying that he was welcome to seek political sanctuary in India.
Bruce Riedel, who has held senior posts in the CIA and is an expert on the region, in his book JFK’s Forgotten Crisis: Tibet, the CIA, and the Sino–Indian War (2017), has revealed that the covert operations by the CIA and others in Tibet played a role in Mao’s decision to invade India.
The Dalai Lama later said that the covert American actions were only part of the “Cold War tactics” to undermine the socialist bloc. The CIA was actively supporting the Tibetan separatists from 1957 to 1961 and it could not have been done without the cooperation of the Indian intelligence agencies.
After the recent clash between the Indian Army and the PLA on the Ladakh border, Riedel, in an article, observed that there was a danger of the clashes escalating into a full-blown war like the 1962 conflict “which almost brought the United States to war with China”.
Nehru had sent an SOS to John F. Kennedy, officially requesting for the U.S’ help after the Chinese invasion. Riedel writes that the Americans and the British had airlifted arms to India soon after the 1962 war to help the beleaguered Indian Army.
But the aid was not enough to stave off a massive military defeat. According to recently declassified Kennedy administration documents, Nehru had asked for 350 U.S. war planes along with 10,000 U.S.Air Force personnel for help in bombing Chinese targets.
Before Kennedy could decide, the Chinese army had withdrawn from most of the Indian territory they had occupied,keeping only parts of Aksai Chin they had claimed. Riedel also writes that the Kennedy administration restrained Pakistan from exploiting the situation in 1962.
Pakistan wanted to seize Kashmir as the Indian Army was busy fighting the Chinese. “Kennedy made it clear that he would view any Pakistani involvement as an act of war,” Riedel has written.
Confrontation in 1967
The war lasted a month, with the PLA making deep inroads into Indian territory. The Chinese announced a ceasefire after less than a month of fighting. The McMahon Line was officially replaced by the Line of Actual Control (LAC).
The next serious confrontation between the two armies occurred in 1967 at Nathu La and Cho La. Then, as now, the two sides had differing perceptions about the LAC. A scuffle between Indian and Chinese soldiers escalated into a full-fledged military fire fight at the time. More than 140 Indian soldiers were killed. The PLA, too, lost a large number of their troops. That was the last serious confrontation between the two sides until the events of June 15 this year in the Galwan valley.
The two sides were on the verge of clashing on several previous occasions but better sense prevailed. In 1986, the two sides were on the verge of a clash on the eastern border in Arunachal Pradesh following a misunderstanding about the goals of a military exercise the Indian Army conducted near Tawang. The eyeball-to-eyeball confrontation did not degenerate into a violent one.
The 1993 pact
To avoid further misunderstandings and accidental confrontations, India and China signed the landmark “Agreement on the Maintenance of Peace and Tranquillity along the Line of Actual Control” in 1993. The pact’s confidence-building measures included a commitment by both sides against the use of force to settle disputes along the LAC and to resort to the dialogue process to settle boundary disputes.
The two sides also pledged to reduce troop levels along the LAC. Additional border agreements were signed in 1996, 2005 and 2013.
But the undefined border between the two countries continued to witness several minor and a few slightly more serious incidents in the last couple of years. No shots, however, were fired in the past 35 years. But with the coming of the hyper-nationalistic government to power, which coincided with the ascendance of the assertive President Xi Jinping, the temperature along the LAC has risen.
The spurt in infrastructure building on the Indian side of the border, which included building of all-weather roads and the upgradation of airports in the Ladakh sector adjacent to Aksai Chin, has put the PLA on high alert.
The Chinese side would not have forgotten that the previous National Democratic Alliance government had openly identified China as India’s chief strategic rival while justifying the Pokhran nuclear tests in 1998.
Prime Minister Atal Bihari Vajpayee wrote a letter to the then U.S. President, Bill Clinton, explaining the rationale behind the Pokhran test. “We have an overt nuclear weapon state on our borders, a state which has committed armed aggression against India in 1962. Although our relations with that country have improved in the last decade or so, an atmosphere of distrust persists mainly due to the unresolved border problem,” the letter bluntly stated.
There were no major problems along the LAC during the 10-year rule of the United Progressive Alliance (UPA) that followed. However, it was in that period that the government started implementing the India-China Border Roads (ICBR) programme in a big way.
The UPA government ordered the construction of 73 border roads in areas where India and China had differing perceptions about the border. After signing a defence agreement and the nuclear deal with the U.S., the UPA government had moved closer to Washington on key foreign policy and security issues, especially on issues pertaining to China.
The Barack Obama administration found a willing partner in the Indian government as it launched it military pivot to the East as part of its “containment policy” against China. The U.S.wanted India to strengthen its border infrastructure against China and possess a “blue water” navy that would project power in the Asia Pacific region in tandem with the U.S. Navy.
It was the UPA government that started the permanent build-up of forces across the LAC and sanctioned the raising of a 70,000-strong mountain corps.
After the Doklam standoff, the government further hastened the road construction. Many commentators attribute the Galwan clash to the construction by the military of an all-weather Darbuk-Sayok-Daulat Beg Oldie road.
The road is situated very near the Karakoram Pass and the highway connecting Tibet to Xinjian. The road is crucial to the China-Pakistan Economic Corridor (CPEC) project and the Belt and Road Initiative. The CPEC passes through Gilgit-Baltistan over which India has not relinquished claims.
Relations off to a bad start
The Dalai Lama’s Tibetan government-in-exile was invited for the Prime Minister’s swearing-in ceremony for the first time. India, under the BJP, started using the “Tibet card” more frequently. The Dalai Lama was allowed to visit Tawang in Arunachal Pradesh, one of the holiest places in Tibetan Buddhism.
China refers to Arunachal Pradesh as Southern Tibet and has not given up its claims on the region. Chinese forces had seized Tawang in 1962 but had withdrawn after declaring a ceasefire unilaterally. Relations were back on an even keel after the visit of Xi Jinping to India in 2014 where PM hosted him in Ahmedabad.
For the Chinese side, therefore, the incident at Doklam in 2017 came as a surprise. The Chinese leadership was preparing for the all-important 19th National Congress of the Chinese Communist Party scheduled in October of the same year. The face-off between the two militaries lasted more than two months in the desolate Himalayan heights.
It ended only after both sides agreed “to withdraw” from the disputed area, situated at a trijunction where the borders of India, Bhutan and China intersect. The disputed area in Doklam was in fact a territory claimed by China and Bhutan. Last heard, the PLA has built permanent structures in the area they had occupied.
The Bhutanese side has been unwittingly caught in the middle of the conflicts between its two giant neighbours. The kingdom now seems to be on the way to resolving the border dispute with China on its own. It was after the Doklam incident that the 2018 Wuhan summit took place.
Both Modi and Xi agreed “to properly manage and control their differences” and provide “strategic guidance” to their respective militaries to strengthen institutional mechanisms to prevent tensions form escalating in the border areas. The two leaders again met in Chennai in 2019 and pledged to work together to promote regional and international cooperation.
The bonhomie of the last two years has evaporated within six months of the last meeting between the leaders of the two most populous countries in the world. After the June 15 incident which resulted in the death of 20 Indian soldiers, emotions are still running high, but both the sides have continued to talk and defuse tensions along the LAC.
The PLA has withdrawn from some of the “pressure points” it had occupied, and a buffer zone has been created to separate the two armies. In the third week of July, both sides agreed to not use unmanned aerial vehicles (UAVs) near the friction points along the LAC. Earlier, the two armies had agreed on suspending foot patrolling for a month to reduce tensions. The corps commanders of the two armies have held four rounds of talks since the first week of June.
India is demanding the restoration of the status quo as it existed until earlier in the year. Indian Defence Minister Rajnath Singh, on a visit to Ladakh in the third week of July, acknowledged that the negotiations could take time and ultimately might not bring the desired results.
The Indian External Affairs Ministry, in a statement issued on July 23, called on the Chinese side to work “sincerely” on the disengagement plan that the two sides had agreed upon after the discussions held between the Indian National Security Adviser, Ajit Doval, and the Chinese Foreign Minister, Wang Yi, in the first week of July.
The PLA had not withdrawn from pressure points around the Pangong Tso lake which they had recently occupied. As both sides know, only a comprehensive agreement on the border, involving give and take on both sides, can bring about lasting peace.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.
Globally, around 80% of wastewater flows back into the ecosystem without being treated or reused, according to the United Nations.
This can pose a significant environmental and health threat.
In the absence of cost-effective, sustainable, disruptive water management solutions, about 70% of sewage is discharged untreated into India’s water bodies.
A staggering 21% of diseases are caused by contaminated water in India, according to the World Bank, and one in five children die before their fifth birthday because of poor sanitation and hygiene conditions, according to Startup India.
As we confront these public health challenges emerging out of environmental concerns, expanding the scope of public health/environmental engineering science becomes pivotal.
For India to achieve its sustainable development goals of clean water and sanitation and to address the growing demands for water consumption and preservation of both surface water bodies and groundwater resources, it is essential to find and implement innovative ways of treating wastewater.
It is in this context why the specialised cadre of public health engineers, also known as sanitation engineers or environmental engineers, is best suited to provide the growing urban and rural water supply and to manage solid waste and wastewater.
Traditionally, engineering and public health have been understood as different fields.
Currently in India, civil engineering incorporates a course or two on environmental engineering for students to learn about wastewater management as a part of their pre-service and in-service training.
Most often, civil engineers do not have adequate skills to address public health problems. And public health professionals do not have adequate engineering skills.
India aims to supply 55 litres of water per person per day by 2024 under its Jal Jeevan Mission to install functional household tap connections.
The goal of reaching every rural household with functional tap water can be achieved in a sustainable and resilient manner only if the cadre of public health engineers is expanded and strengthened.
In India, public health engineering is executed by the Public Works Department or by health officials.
This differs from international trends. To manage a wastewater treatment plant in Europe, for example, a candidate must specialise in wastewater engineering.
Furthermore, public health engineering should be developed as an interdisciplinary field. Engineers can significantly contribute to public health in defining what is possible, identifying limitations, and shaping workable solutions with a problem-solving approach.
Similarly, public health professionals can contribute to engineering through well-researched understanding of health issues, measured risks and how course correction can be initiated.
Once both meet, a public health engineer can identify a health risk, work on developing concrete solutions such as new health and safety practices or specialised equipment, in order to correct the safety concern..
There is no doubt that the majority of diseases are water-related, transmitted through consumption of contaminated water, vectors breeding in stagnated water, or lack of adequate quantity of good quality water for proper personal hygiene.
Diseases cannot be contained unless we provide good quality and adequate quantity of water. Most of the world’s diseases can be prevented by considering this.
Training our young minds towards creating sustainable water management systems would be the first step.
Currently, institutions like the Indian Institute of Technology, Madras (IIT-M) are considering initiating public health engineering as a separate discipline.
To leverage this opportunity even further, India needs to scale up in the same direction.
Consider this hypothetical situation: Rajalakshmi, from a remote Karnataka village spots a business opportunity.
She knows that flowers, discarded in the thousands by temples can be handcrafted into incense sticks.
She wants to find a market for the product and hopefully, employ some people to help her. Soon enough though, she discovers that starting a business is a herculean task for a person like her.
There is a laborious process of rules and regulations to go through, bribes to pay on the way and no actual means to transport her product to its market.
After making her first batch of agarbathis and taking it to Bengaluru by bus, she decides the venture is not easy and gives up.
On the flipside of this is a young entrepreneur in Bengaluru. Let’s call him Deepak. He wants to start an internet-based business selling sustainably made agarbathis.
He has no trouble getting investors and to mobilise supply chains. His paperwork is over in a matter of days and his business is set up quickly and ready to grow.
Never mind that the business is built on aggregation of small sellers who will not see half the profit .
Is this scenario really all that hypothetical or emblematic of how we think about entrepreneurship in India?
Between our national obsession with unicorns on one side and glorifying the person running a pakora stall for survival as an example of viable entrepreneurship on the other, is the middle ground in entrepreneurship—a space that should have seen millions of thriving small and medium businesses, but remains so sparsely occupied that you could almost miss it.
If we are to achieve meaningful economic growth in our country, we need to incorporate, in our national conversation on entrepreneurship, ways of addressing the missing middle.
Spread out across India’s small towns and cities, this is a class of entrepreneurs that have been hit by a triple wave over the last five years, buffeted first by the inadvertent fallout of demonetization, being unprepared for GST, and then by the endless pain of the covid-19 pandemic.
As we finally appear to be reaching some level of normality, now is the opportune time to identify the kind of industries that make up this layer, the opportunities they should be afforded, and the best ways to scale up their functioning in the shortest time frame.
But, why pay so much attention to these industries when we should be celebrating, as we do, our booming startup space?
It is indeed true that India has the third largest number of unicorns in the world now, adding 42 in 2021 alone. Braving all the disruptions of the pandemic, it was a year in which Indian startups raised $24.1 billion in equity investments, according to a NASSCOM-Zinnov report last year.
However, this is a story of lopsided growth.
The cities of Bengaluru, Delhi/NCR, and Mumbai together claim three-fourths of these startup deals while emerging hubs like Ahmedabad, Coimbatore, and Jaipur account for the rest.
This leap in the startup space has created 6.6 lakh direct jobs and a few million indirect jobs. Is that good enough for a country that sends 12 million fresh graduates to its workforce every year?
It doesn’t even make a dent on arguably our biggest unemployment in recent history—in April 2020 when the country shutdown to battle covid-19.
Technology-intensive start-ups are constrained in their ability to create jobs—and hybrid work models and artificial intelligence (AI) have further accelerated unemployment.
What we need to focus on, therefore, is the labour-intensive micro, small and medium enterprise (MSME). Here, we begin to get to a definitional notion of what we called the mundane middle and the problems it currently faces.
India has an estimated 63 million enterprises. But, out of 100 companies, 95 are micro enterprises—employing less than five people, four are small to medium and barely one is large.
The questions to ask are: why are Indian MSMEs failing to grow from micro to small and medium and then be spurred on to make the leap into large companies?
At the Global Alliance for Mass Entrepreneurship (GAME), we have advocated for a National Mission for Mass Entrepreneurship, the need for which is more pronounced now than ever before.
Whenever India has worked to achieve a significant economic milestone in a limited span of time, it has worked best in mission mode. Think of the Green Revolution or Operation Flood.
From across various states, there are enough examples of approaches that work to catalyse mass entrepreneurship.
The introduction of entrepreneurship mindset curriculum (EMC) in schools through alliance mode of working by a number of agencies has shown significant improvement in academic and life outcomes.
Through creative teaching methods, students are encouraged to inculcate 21st century skills like creativity, problem solving, critical thinking and leadership which are not only foundational for entrepreneurship but essential to thrive in our complex world.
Udhyam Learning Foundation has been involved with the Government of Delhi since 2018 to help young people across over 1,000 schools to develop an entrepreneurial mindset.
One pilot programme introduced the concept of ‘seed money’ and saw 41 students turn their ideas into profit-making ventures. Other programmes teach qualities like grit and resourcefulness.
If you think these are isolated examples, consider some larger data trends.
The Observer Research Foundation and The World Economic Forum released the Young India and Work: A Survey of Youth Aspirations in 2018.
When asked which type of work arrangement they prefer, 49% of the youth surveyed said they prefer a job in the public sector.
However, 38% selected self-employment as an entrepreneur as their ideal type of job. The spirit of entrepreneurship is latent and waiting to be unleashed.
The same can be said for building networks of successful women entrepreneurs—so crucial when the participation of women in the Indian economy has declined to an abysmal 20%.
The majority of India’s 63 million firms are informal —fewer than 20% are registered for GST.
Research shows that companies that start out as formal enterprises become two-three times more productive than a similar informal business.
So why do firms prefer to be informal? In most cases, it’s because of the sheer cost and difficulty of complying with the different regulations.
We have academia and non-profits working as ecosystem enablers providing insights and evidence-based models for growth. We have large private corporations and philanthropic and funding agencies ready to invest.
It should be in the scope of a National Mass Entrepreneurship Mission to bring all of them together to work in mission mode so that the gap between thought leadership and action can finally be bridged.