The President of Afghanistan, Hamid Karzai, paid a two day working visit to India from May 20-22, during the course of which he was conferred a Doctoris Honoris Causa for Letters by the Lovely Professional University, Punjab. The visit was also an occasion to review the status of on-going Indian-assisted development projects in and for Afghanistan. Prasanthy Gurugubelli explores the intrinsic importance of a secure and stable Afghanistan for India and analyses the pertinent question of deescalating tensions in the region by a policy of active engagement. She also answers questions regarding India’s positive contributions to Afghanistan’s development for durable peace and sustainable economic development
Afghanistan, with its strategic location, can emerge not only as a critical transit hub, but can also boost economic development in the region, benefitting its immediate neighbours, India and Pakistan
The Indian government has been mindful of the international dynamics around Afghanistan, as the country remains key to India’s national security. Post the announcement of withdrawal of the NATO led (International Security Assistance Forces) ISAF; several confidence building measures have been taken to ensure the stability of Afghanistan. However, this is not an easy task as it would require concerted efforts and consensus on vital matters from regional powers such as India, China, Russia and Pakistan. India, Russia and China are concerned about the possibility of a resurgence of Taliban, which could threaten the delicate geo-strategic fabric of the volatile region. Emergence of the Taliban would threaten Afghanistan’s economic and political development and would spread insecurity throughout the regime, which, in turn, would sponsor international and home-grown terrorism. A peaceful, united and stable Afghanistan is vital for peace and economic development. There has to be a consolidated agreement to terrorism and extremism in Afghanistan, which cannot go unabated. There has to be pursuance of political, security and economic cooperation between Afghanistan and India.
Pipeline Politics
Historically, India has enjoyed good cultural ties with Afghanistan, except for the period from 1996-2001, which was dominated by Taliban rule of warring lords. Since the fall of the Taliban, India has been a primary donor in Afghanistan reconstruction. India has been instrumental in presenting aircrafts to kick-start Ariana Airlines, Afghanistan’s national carrier. India has also been active in building roads, schools, hospitals, and power and communication networks, besides training its military, police, bureaucrats, diplomats and even businessmen.
India is currently in discussions with Afghanistan to build a rail line from Bandar Abbas port in Western Iran, which will be a critical infrastructural linkage for Afghanistan’s first steel plant — the $11-billion Hajigak iron and steel project – promoted by Indian companies in central Afghanistan. The funding for this primarily comes from the $2 billion aid that the Indian government has offered to Afghanistan.
India has always sent out messages of solidarity and trust to this war-scarred nation. According to Former Foreign Secretary Shyam Saran, “On the political side, really our effort has been to contribute to the strengthening of this national consensus, inter-ethnic harmony in Afghanistan because we believe that for the return of political stability it is important for the different ethnic communities to work together”.
Ensuring Energy Security
Economically, Afghanistan is important to India as the country serves as a gateway to the energy and mineral rich Central Asian countries. The developing country has a lot of reconstruction projects and it offers significant opportunities for Indian companies. Afghanistan is a fast growing and emerging market of strategic importance, providing key transit routes for the Central Asian oil and gas market in India. However, a transit route connecting Iran and Central Asian countries has been denied to India by Pakistan, as the latter has always been averse to giving transit rights to India through Afghanistan. The issue of transit rights has affected talks of a gas pipeline from Iran via Afghanistan. India has often been misinterpreted by Pakistan, as one Pakistani official stated that the opening of Indian consulates in southern Afghanistan was motivated by the purpose of sponsoring cross border terrorism in Pakistan. Such attitudes from Pakistan’s strategic military circles have been averse to deepening India-Afghanistan ties.
Key Investment Area
Afghanistan offers a pro-business minded environment with legislation favourable to private markets. The principles of free market economy are incorporated in the new Constitution, just as the growth of the private sector is the cornerstone of the National Developmental Strategy.
The country is home to rich natural resources and mineral reserves with more than 1,400 identified mineral deposits, including oil, gas, coal, iron and copper deposits of world quality. It is also well known for its reserves of emerald, jade, amethyst, alabaster, beryl, lapis, lazuli, ruby, quartz and sapphire. Great opportunities for investments also exist within the hydrocarbons industry.
Indian companies have already established bases in Afghanistan and are looking at a greater footprint. Thus, even in pure business terms, the country offers a great return on investment, but with the obvious risks.
Arch Rivals; Aligned Interests
Stability of Afghanistan is in the interest of the international community. The interests of US, Russia, India and China are all aligned in the Afghanistan story. India and China believe that a more regional approach is the need of the hour given the 2014 withdrawal of NATO forces. From the geo-economics standpoint, the US is interested in redirecting Central Asian oil from China to a market controlled by the stock exchanges in New York, London, Tokyo and Singapore; and, to find alternate routes to transport Caspian Sea resources without going through Iranian territory despite the fact that a route with access to the Persian Gulf is more cost-effective. The US may want to have its checks and balances in the region given the geopolitical interests of Russia and the growing influence of China. Russia certainly has an economic stake in post-war Afghanistan along with the possibility of facing instability in the central Asian region as also indoctrination of its Muslim population.
India and China held their first bilateral talks on Afghan security on April 18 this year. It is still unclear whether India and China will be able to collaborate with each other on Afghanistan, since both countries have invested heavily in the country’s mining and oil sectors. Further both countries have common security interests, as China is equally threatened by Islamic radicalisation and the repercussions of Taliban reprise in the Xinjiang province of China. However, analysts note that China might not want to upset its all-weather friend Pakistan by supporting India in any significant way.
While India’s efforts in development and reconstruction have been appreciated by the government and people of Afghanistan, India needs to be cautious of any possibility of misreading its intentions in the region as those of an expansionist power or as battling for Afghan wealth.
Afghanistan is surrounded on one hand by the Caspian basin that holds huge oil and gas reserves and China, India and Pakistan on the other hand, which are major consumers of oil and gas. Thus, it has a very high potential of becoming a strategic hub connecting Central Asia to various export routes and markets. It is a known fact that exploration for oil and gas in the region has been hindered by years of conflict and wars, leaving the country’s energy wealth mostly untapped.
The focus of Indian support to Afghanistan needs to be on the country’s economic empowerment and a strategic partnership that deepens friendly ties between both, resulting from long-standing efforts from both and strong cultural similarities. India has often reiterated that it does not view Afghanistan as a zero sum game and it is not a war against Pakistan. Afghanistan’s stability is crucial for India, not only from a security perspective but also from an economic standpoint. Afghanistan with its strategic location can become not only a critical transit hub, but also an economic driver of development in the region that will benefit countries like India and Pakistan. So far, India seems to be getting the Afghanistan story right with the right focus on development and capacity building and a decision of avoiding any involvement in bolstering Afghan security, except for running few courses for the Afghan forces in India.
Pipeline Politics
Historically, India has enjoyed good cultural ties with Afghanistan, except for the period from 1996-2001, which was dominated by Taliban rule of warring lords. Since the fall of the Taliban, India has been a primary donor in Afghanistan reconstruction. India has been instrumental in presenting aircrafts to kick-start Ariana Airlines, Afghanistan’s national carrier. India has also been active in building roads, schools, hospitals, and power and communication networks, besides training its military, police, bureaucrats, diplomats and even businessmen.
India is currently in discussions with Afghanistan to build a rail line from Bandar Abbas port in Western Iran, which will be a critical infrastructural linkage for Afghanistan’s first steel plant — the $11-billion Hajigak iron and steel project – promoted by Indian companies in central Afghanistan. The funding for this primarily comes from the $2 billion aid that the Indian government has offered to Afghanistan.
India has always sent out messages of solidarity and trust to this war-scarred nation. According to Former Foreign Secretary Shyam Saran, “On the political side, really our effort has been to contribute to the strengthening of this national consensus, inter-ethnic harmony in Afghanistan because we believe that for the return of political stability it is important for the different ethnic communities to work together”.
Ensuring Energy Security
Economically, Afghanistan is important to India as the country serves as a gateway to the energy and mineral rich Central Asian countries. The developing country has a lot of reconstruction projects and it offers significant opportunities for Indian companies. Afghanistan is a fast growing and emerging market of strategic importance, providing key transit routes for the Central Asian oil and gas market in India. However, a transit route connecting Iran and Central Asian countries has been denied to India by Pakistan, as the latter has always been averse to giving transit rights to India through Afghanistan. The issue of transit rights has affected talks of a gas pipeline from Iran via Afghanistan. India has often been misinterpreted by Pakistan, as one Pakistani official stated that the opening of Indian consulates in southern Afghanistan was motivated by the purpose of sponsoring cross border terrorism in Pakistan. Such attitudes from Pakistan’s strategic military circles have been averse to deepening India-Afghanistan ties.
Key Investment Area
Afghanistan offers a pro-business minded environment with legislation favourable to private markets. The principles of free market economy are incorporated in the new Constitution, just as the growth of the private sector is the cornerstone of the National Developmental Strategy.
The country is home to rich natural resources and mineral reserves with more than 1,400 identified mineral deposits, including oil, gas, coal, iron and copper deposits of world quality. It is also well known for its reserves of emerald, jade, amethyst, alabaster, beryl, lapis, lazuli, ruby, quartz and sapphire. Great opportunities for investments also exist within the hydrocarbons industry.
Indian companies have already established bases in Afghanistan and are looking at a greater footprint. Thus, even in pure business terms, the country offers a great return on investment, but with the obvious risks.
Arch Rivals; Aligned Interests
Stability of Afghanistan is in the interest of the international community. The interests of US, Russia, India and China are all aligned in the Afghanistan story. India and China believe that a more regional approach is the need of the hour given the 2014 withdrawal of NATO forces. From the geo-economics standpoint, the US is interested in redirecting Central Asian oil from China to a market controlled by the stock exchanges in New York, London, Tokyo and Singapore; and, to find alternate routes to transport Caspian Sea resources without going through Iranian territory despite the fact that a route with access to the Persian Gulf is more cost-effective. The US may want to have its checks and balances in the region given the geopolitical interests of Russia and the growing influence of China. Russia certainly has an economic stake in post-war Afghanistan along with the possibility of facing instability in the central Asian region as also indoctrination of its Muslim population.
India and China held their first bilateral talks on Afghan security on April 18 this year. It is still unclear whether India and China will be able to collaborate with each other on Afghanistan, since both countries have invested heavily in the country’s mining and oil sectors. Further both countries have common security interests, as China is equally threatened by Islamic radicalisation and the repercussions of Taliban reprise in the Xinjiang province of China. However, analysts note that China might not want to upset its all-weather friend Pakistan by supporting India in any significant way.
While India’s efforts in development and reconstruction have been appreciated by the government and people of Afghanistan, India needs to be cautious of any possibility of misreading its intentions in the region as those of an expansionist power or as battling for Afghan wealth.
Afghanistan is surrounded on one hand by the Caspian basin that holds huge oil and gas reserves and China, India and Pakistan on the other hand, which are major consumers of oil and gas. Thus, it has a very high potential of becoming a strategic hub connecting Central Asia to various export routes and markets. It is a known fact that exploration for oil and gas in the region has been hindered by years of conflict and wars, leaving the country’s energy wealth mostly untapped.
The focus of Indian support to Afghanistan needs to be on the country’s economic empowerment and a strategic partnership that deepens friendly ties between both, resulting from long-standing efforts from both and strong cultural similarities. India has often reiterated that it does not view Afghanistan as a zero sum game and it is not a war against Pakistan. Afghanistan’s stability is crucial for India, not only from a security perspective but also from an economic standpoint. Afghanistan with its strategic location can become not only a critical transit hub, but also an economic driver of development in the region that will benefit countries like India and Pakistan. So far, India seems to be getting the Afghanistan story right with the right focus on development and capacity building and a decision of avoiding any involvement in bolstering Afghan security, except for running few courses for the Afghan forces in India.
(published in The Diplomatist, June 2013 Link: http://www.diplomatist.com/dipom06y2013/story010.html)