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.
