RSS economics

It appears Indian economics too are getting radicalised. Aside from shady efforts to isolate Pakistan under the FATF, India is furious at China as well, and has decided to stay away from Belt-Road-Initiative forum next month. India tried to boycott import of cheap Chinese electronic goods, particularly transistors/chips. India’s developmental assistance to six neighbouring countries in South Asia over the last four fiscal years amounted to over Rs211 billion.

The Confederation of All India Traders announced, “The time has come when China should suffer due to its proximity with Pakistan”. Ashwani Mahajan, a leader of the Swadeshi Jagran Manch, also, called for a boycott of Chinese goods. He also wrote to Prime Minister Narendra Modi, recommending that India should slap higher tariffs on Beijing. The Manch is the economic wing of the Rashtriya Swayamsevak Sangh, a Hindu nationalist group with close ties to the ruling Bharatiya Janata Party. India reneged on its commitment to support China’s efforts, under the Regional Comprehensive Economic Partnership (RCEP) arrangement, to eliminate tariff on farm, auto, iron and steel products. The RCEP is an arrangement including India, China, the 10-member Asean, Japan, South Korea, Australia and New Zealand. It has the potential to emerge as the largest free trade bloc in the world covering about 3.5 billion people and 30 percent of the world’s GDP. To scuttle the arrangement, India wants to `protect’ 72 percent of the traded items, well as agricultural goods, besides sensitive industrial goods. India’s strategy is to prolong negotiations if it can’t forestall a consensus agreement.

D J Malik

Rawalpindi