india pakistan

India – new stance on foreign policy and economics. Pakistan on alert

India’s healthy democratic process and non-reactive policy making has kept the area under calm but Mr Modi plays a different tune to his predecessor.

On the economic front India is opening its border to business with Mr Modi setting the agenda and making it clear in New York and Washington in October that the doors are opening and the red tape is being cut.

India is bolstering up its relationship on all corners of its border spectrum apart from its north eastern neighbours. Delegations from China have visited India and relationships have strengthened on the eastern front. India’s relationship have strengthened with Russia and America likewise and even Australia has agreed to sell Uranium to the country even though India has not signed the non-proliferation act. Western nations are signing up in numbers and India is able to build up a great sense of respect, capacity and trust globally.

On the other side of the Kashmir border we have a state plagued with declining interest from the Americans, which has written off the north of Pakistan as a unmanaged state that they feel comfortable to enter with or without permission. Hilary Clinton has expressed severe mistrust of Pakistan and according to journalists made Washington’s opinion of Pakistan clear even after her apologies. The northern region of Pakistan has become a hotspot for Taliban chiefs to a point that Pakistan no longer claims responsibility for the region.

In addition Mr Putin has made it clear that the BRIC movement contains more opportunity than the G20 to his nation and that his preferred trade partner after Europe is India sharing exclusive and priority military relations with India.

An India under Mr Singh was calm, controlled and diplomatic. Mr Modi is here to change the agenda and has given his military chiefs authority to take all steps necessary to protect India’s national interests on the Kashmir border with all the military might. India is talking tough when it comes to Pakistan and the question remains how the country and government react if anymore terror attacks are conducted on India soil.

The muslim leadership team currently governing the Kashmir and Jammu region of India is under a heavy burden to manage the relations and have their work cut out for them as the secular interest in combating national interests. The nation is expecting an overhaul here although the government has worked wonders to manage tensions here in the past and fulfilling its duties as a screening state.

Things have to change rapidly but India is ready to flex its economic and military muscle under its new leadership. Mr Modi has made it clear that diplomacy is not a measure that will be exercised going forward. Unfortunately political tensions would suggest that any other severe impact would cause major retaliation and unfortunately an all out war.

India retains a minimal double up position on all Pakistan asset holdings as the graph below indicates.

Further tension would lead to instability on both sides of the equation but India currently stands in a position where it has more to loose hence firm action is desirable by long term trade partners as stability will see more FDI from the global business community.

India Pakistan Military Comparison

 

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