Lok Sabha Question No. 814 (UNSTARRED), answered on 2025-02-07
Subject: India's Diplomatic and Economic Relations
Ministry: EXTERNAL AFFAIRS
Asked by: Shri Zia Ur Rehman

## GOVERNMENT OF INDIA

## MINISTRY OF EXTERNAL AFFAIRS LOK SABHA

UNSTARRED QUESTION NO- 814

## ANSWERED ON- 07/02/2025

INDIA'S DIPLOMATIC AND ECONOMIC RELATIONS

## 814. SHRI ZIA UR REHMAN

Will the Minister of EXTERNAL AFFAIRS be pleased to state:-

(a)   whether   efforts   have   been   made   by   the   Government   to   improve diplomatic and economic relations with the neighbouring countries; and (b) if so, the details and the major outcomes thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS (SHRI KIRTI VARDHAN SINGH)

(a)  The Government of India recognizes the importance of fostering strong and   cooperative   relationships   with   our   neighbouring   countries. The

'Neighbourhood   First'   policy,   which   guides   the   management   of   India's relations   with   countries   in   its   immediate   neighbourhood,   focuses   on creating   mutually   beneficial,   people-oriented,   regional   frameworks   for stability and prosperity, including through the building of physical, digital and people to people connectivity. India engages with these countries on a consultative,   non-reciprocal   and   outcome-oriented   basis,   driven   by   the principles of  Samman (respect), Samvad (dialogue), Shanti (peace), and Samriddhi (prosperity). As part of India's 'Neighbourhood First' policy, the Government has been extending necessary developmental assistance and capacity   building   initiatives,   as   per   needs   and   aspirations   of   the neighbouring countries, thereby contributing towards holistic economic development of their countries.  Under   this   approach,   India   has   been assisting neighbouring countries on development of infrastructure projects ranging from large scale infrastructure to community related provisioning of   assets   and   platforms,   augmentation   of   capabilities   and   extending financial, budgetary and humanitarian assistance.

(b) A large number of initiatives and programmes have been undertaken by India within the ambit of this policy. Details of major recent developments and initiatives include the following:

(i) Humanitarian   assistance   to  Afghanistan  in   the   form   of   food   and medical aid, as well as scholarship schemes for Afghan students. In the last few years, keeping in mind the situation in the country, India has assisted   the   Afghan   people   with   several   shipments   of   humanitarian assistance   including   50,000   MT   of   wheat,   40,000   litres   of   Malathion (pesticide), 300 tons of medical aid and 28 tons of earthquake relief aid. These consignments have been handed over to the United Nations World Food Programme (UNWFP), Indira Gandhi Institute of Child Health (IGICH), Afghan Red Crescent Society (ARCS), etc. India has also partnered with the United Nations Office on Drugs and Crime (UNODC) in Afghanistan to provide   assistance   for   the   welfare   of   Afghan   drug   user   population, especially women. Under this partnership, India supplied 11,000 units of female   hygiene   kits,   baby   food,   general-use   hygiene   kits,   blankets, clothing, footwear, medical aid and other miscellaneous items.

On 8 January 2025, Foreign Secretary  met Amir Khan Muttaqi, Acting Foreign Minister of Afghanistan in Dubai. We have also explored possibility of cooperation in some aspects of development assistance.

- (ii) Post the political developments in August 2024 in  Bangladesh, the Government of India has continued bilateral interactions. Prime Minister Narendra Modi and Chief Adviser Prof. Muhammad Yunus held a telephonic conversation on 16 August 2024. At the invitation of Prime Minister Modi,

Chief   Adviser   Prof.   Muhammad   Yunus   participated   in   the   3 rd   Voice of Global South Summit on 17 August 2024. External Affairs Minister met with Foreign Affairs Adviser of  Bangladesh Mr. Touhid Hossain, on the sidelines of the 79 th  United Nations General Assembly in New York on 24 September 2024. Foreign Secretary visited Dhaka on 9 December 2024 and called on Chief Adviser Prof. Muhammad Yunus and Foreign Affairs Adviser Hossain.

Several development cooperation projects in Bangladesh in the areas of cross-border power, energy and transport linkages have been supported by India. India is providing grant assistance to Bangladesh, for various infrastructure projects, including the construction of Akhaura-Agartala rail link  and dredging of inland waterways in Bangladesh. On 26 October, a new state-of-art  Passenger Terminal Building  and a second gate called 'Maitri Dwar' at the Integrated Check Post (ICP) at Petrapole, West Bengal was inaugurated. These projects aim to enhance cross-border trade and immigration   infrastructure   between   India   and   Bangladesh.   In   October 2024,   India,   Bangladesh   and   Nepal   signed   a   Trilateral   Power   Sale Agreement for Transmission of 40MW of Power from Nepal to Bangladesh through the Indian power grid.

(iii) With Bhutan, there have been several high-level exchanges in the last one year, to strengthen the bilateral relations. More recently, His Majesty

the King of Bhutan visited India from 5-6 December 2024, during which His Majesty met Prime Minister Modi and other senior officials of Government of   India.  His   Majesty   again   visited   India   from   03-04   February   2025 to attend the Maha Kumbh Mela at the invitation of Prime Minister.

Regarding our development partnership, India has doubled its support for Bhutan's 13 th     Five Year Plan to Rs 10, 000 crores, which also includes support to the Royal Government of Bhutan's Economic Stimulus Package for   Bhutan's   economic recovery.  At  present,  India   is  constructing   two hydroelectric   projects   in   Bhutan-   Punatsangchhu-I   (1200   MW)   and Punatsangchhu-II (1020 MW). The first two units of Punatsangchhu-II HEP were   commissioned   in   December   2024.   Government   has   recently inaugurated an Immigration Check Post at Darranga (Assam)/Samdrup Jongkhar   (Bhutan)   to   facilitate   the   entry   and   exit   of   third   country nationals   by   land   route. Till   date,   61   projects   under   Project   Tied Assistance modality have been finalised through Government of India's assistance under the 13 th  Plan of Bhutan. In December 2024, Government of  India released the last tranche of the concessionary loan to Bhutan (overall Rs 1,500 crores) for the construction of the Gyalsung Academies for implementation of Bhutan's National Service programme.

(iv) With Maldives, Development Cooperation is one of the cornerstones of   the   India-Maldives   bilateral   relationship. Government   of   India is implementing the flagship Greater Male Connectivity Project (GMCP) in Maldives which will connect the four islands of the Greater Male region. In addition,   other   major   development   projects   being   undertaken   with Government of India's assistance include the redevelopment of Gan and Hanimaadhoo   airports   in   Maldives,   fish   processing   units,   Addu   city redevelopment   project,   water   and   sanitation   projects,   construction   of 4,000   social   housing   units   and   High   Impact   Community   Development Projects (HICDPs). President of Maldives undertook a State Visit to India from 6-10 October 2024 and met Prime Minister Modi. During this visit, both leaders jointly inaugurated and handed over 700 social housing units and runway of the Hanimaadhoo airport. Both leaders also launched the RuPay card in Maldives. Earlier, External Affairs Minister undertook an official visit to Maldives in August 2024, during which, both sides jointly inaugurated and handed over 6 India-assisted High Impact Community Development Projects (HICDPs) including, water and sanitation projects in 28 out of the 34 islands, Addu reclamation project and Addu detour link road. In November 2024, India and Maldives signed an MoU for establishing a framework to promote the use of  local currencies for cross-border transactions between the central banks of the two countries. In addition,

India   and   Maldives   are   working   together   on   operationalization   of   UPI payments infrastructure in Maldives. In January 2025, during the visit of Foreign   Minister   of   Maldives   to   India,   both   sides   signed   an   MoU   to implement HICDPs under Phase-III in Maldives, through grant assistance by the Government of India.

(v) Assistance to  Myanmar  has been extended for several connectivity infrastructure   development   projects   and   capacity   building,   besides humanitarian relief. Despite challenges posed by the ongoing security situation, consistent efforts were made for the execution of ongoing socioeconomic development projects and major connectivity projects including the Kaladan Multi-Modal Transit Transport Project (KMTTP) and IndiaMyanmar-Thailand (IMT) Trilateral Highway. India has been implementing people-centric development projects throughout Myanmar under the High Impact   Community   Development   Projects  (HICDPs)   and   Quick   Impact Projects (QIPs) for construction of civilian infrastructure, including roads, schools and small health centres, among others.

(vi) With  Nepal, India has a very elaborate programme of development cooperation aimed at promoting connectivity, and developing economic, energy, digital and cultural ties, including through the implementation of High   Impact   Community   Development   Projects   (HICDP)   in   building hospitals, schools, colleges, drinking water facilities, sanitation, drainage,

rural electrification, hydropower, embankment and river training works, so as to improve the overall quality of life at the local level. In October 2024, India provided over 25 tonnes of  humanitarian aid, including essential hygiene   supplies,   medicines,   life   jackets,   sleeping   mats,   food   items, inflatable   rubber   boats,   motors,   tarpaulins,   sleeping   bags,   blankets, chlorine tablets, and bottled water to support families affected by the floods and landslides in Nepal. Marking a significant milestone, the first trilateral power transaction from Nepal to Bangladesh via the Indian grid was inaugurated on 15 November 2024. In September 2024, Nepal became the 101st member of the International Solar Alliance, following its hand over of the Instrument of Ratification.

(vii)  Development   partnership   with Sri   Lanka includes   connectivity, agriculture, power, education, human resource development, culture and economic   engagement,   as   well   as   a   significant   financial   assistance programme. The   incumbent   President   of   Sri   Lanka   Anura   Kumara Dissanayake made a State Visit to India from 15-17 December 2024. This was his maiden foreign visit since assuming Presidency. During the visit, India and Sri Lanka adopted the joint statement for 'Fostering Partnerships for a Shared Future'. As a part of the State Visit, following announcements were made by Hon'ble PM:

- 1) Financial assistance scheme to 100 new students each annually from University of  Jaffna and Eastern University until the end of  academic courses of the beneficiaries.
- 2) Extension of  grant assistance of  USD 14.9 million for the signaling project in Maho-Anuradhapura section.

In addition, following Agreements / MoUs were signed during the visit:

- 1)   Protocol   Amending   the   Agreement   between   the   Government   of   the Democratic Socialist Republic of  Sri Lanka and the Government of  the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
- 2)   MoU   between   National   Centre   for   Good   Governance   (NCGG), Government   of   India   and   Sri   Lanka   Institute   of   Development Administration(SLIDA) on Training and Capacity Building Programme for Civil Servants of Sri Lanka.

On 4 October 2024, External Affairs Minister became the first foreign dignitary to be received by the newly sworn-in President Dissanayake, during   his   second   visit   to   the   country   this   year.   As   part   of   India's development cooperation with Sri Lanka, in June 2024, the then President of   Sri Lanka Ranil Wickremesinghe and External Affairs Minister jointly handed over 48 houses under Model Village Housing Project in Colombo and Trincomalee districts, and 106 houses under Phase III of the Indian

Housing Project in Kandy, Matale and Nuwara Eliya Districts. During the visit   to   Colombo   in   October   2024,   External   Affairs   Minister   announced extension of grant assistance to cover payments related to completed LoC projects   to   the   tune   of   USD   20.66   million   and   grant   assistance   to modernize Kankesanthurai port to the tune of USD 61.5 million. He also announced gifting of 22 diesel locomotives to the Sri Lankan Railways.

*******