What is the issue?
- Last year, Nepal alleged that India has supported the economic blockade initiated by the Madhesi people.
- Since then India-Nepal relationship has plummeted.
What happened?
- Previous Nepal P.M. Oli blamed India for blocking crucial border points.
- While many believed that a Nepali ethnic group called the Madhesis had initiated the blockade, there were others who implied that New Delhi had a role to play.
Does India support the Policy of Economic Blockade?
- At international forums India have censured the West’s use of economic coercion.
- But in the past, New Delhi has itself used economic muscle for political purposes.
- Through the use of economic instruments such as embargoes, economic blockades and financial sanctions, India has sought to promote its interests or support core policy issues in other countries.
- But compared to the West, India has only selectively spoken about its economically coercive policies.
- In December 2001, India imposed restrictions on Pakistan, which would have economic effects.
How India approaches?
- While several Western states have articulated their approach to economic coercion, India has often shied away from the subject.
- In the last few years, India, individually as well as a part of multilateral forums such as BRICS has taken a strong stand against unilateral economic sanctions imposed on Russia and Iran.
- India has not formalised economic coercive measures through legislation or explicit regulations and statements, as the US and European Union have done.
What are the factors to be considered?
- If India plans for using economic coercion, it is imperative that India thinks strategically and keeps its mind several factors.
- Ensuring that while employing economic pressures, collateral damage is minimised.
- Understanding the complexity of the target state’s international relationships. e.g Apprehensions like New Delhi’s blockade making Nepal seek China’s support were not baseless.
- Thinking about the costs involved. With China’s influence growing in the region, India should think strategically, while flexing its economic muscles in the neighborhood.
Source: Business Line
