Ranjan Mathai: 'We are carefully following how China is exercising power'

India’s external environment remains complex and challenging. We are living in a world in transition, not just in geo-political terms, but also in geo-economic terms — covering trade, financial flows, financial trends, demographic changes and participation in a globalised economy. Globalisation comes with its concurrent global threats — terrorism, proliferation of weapons of mass destruction, piracy and other threats to maritime security, environmental challenges, threats to space and cyber security, and access to water, among others. It is hard to distinguish between traditional and non-traditional threats to security, just as the lines are getting blurred between threats that emanate from within, our immediate neighbourhood or from regions far beyond our own. The ability of the international community to respond to global security challenges has been limited by the preoccupation of major powers with domestic problems. 2012 will be a year of political transitions.

External engagement has to ensure an enabling environment for national growth and development in terms of securing key variables: a periphery which is peaceful and, hence, permits concentration on economic development and access to material resources, energy, technologies and access to markets. In a globalised world, a proactive external engagement is needed to protect and promote India’s national interests.

At the bilateral level, we desire peaceful and cooperative relations with Pakistan. We are committed to resolving all outstanding issues with Pakistan through bilateral dialogue in an atmosphere free from terror and violence. The first round of the resumed dialogue has been completed in July. We are committed to carry forward our discussions with an open mind and a forward looking approach. However, Pakistan must fulfil, in letter and spirit, its stated commitment of not allowing territory under its control to be used for fomenting terrorism against India in any manner. Our vision of a peaceful, cooperative and progressive South Asia cannot be realised unless the dark shadow of terrorism emanating from Pakistan is eliminated.

It is in our interest to see a peaceful and stable Afghanistan, which develops its natural and human resources and also becomes an economic hub, linking central and South Asia through pipelines, trade and transit routes for the common good of the people of our region and the world. In this regard, India has committed to assisting Afghanistan in its reconstruction and development process in the run up to 2014 and beyond.

India and China — as two large, growing economies with overlapping areas of interests — are bound to cooperate and compete simultaneously. On the global issues, there are a number of areas where we find common ground. The nature and content of the bilateral relationship has evolved considerably, since the signing of our strategic and cooperative partnership for peace and prosperity and the shared vision document in January 2008. We have a wide-ranging bilateral dialogue. We also have outstanding issues and discussions by the special representatives appointed to deal with the boundary question are set to continue. The rapid strides in economic and military capabilities of China and the manner in which China exercises its power is being followed carefully not only by us, but by other neighbours in East Asia, ASEAN and beyond. Managing our relations with China, will be probably the most critical element among the security dimensions of India’s foreign policy.

India shares open borders with Bhutan and Nepal. Open borders have facilitated people-to-people contacts and trade and commerce, but they are vulnerable to misuse by forces inimical to peace and stability in the region. The security challenges posed by open borders require more intense and effective coordination between the security agencies of our two countries.

During PM’s visit to Dhaka in September, we made significant strides in our relations with Bangladesh, including the settlement of the long pending land boundary issues, and trade and economic cooperation. We expect to move forward on water-sharing issues and road, rail and waterways connectivity. On security-related matters, we have received very good cooperation from Bangladesh and have been reassured that Bangladesh soil will not be allowed to be used for any activity inimical to our security interests.

Edited excerpts from a speech by foreign secretary Ranjan Mathai at National Defence College on November 23