India seems to be optimistic about a peaceful resolution to the problems in the Middle East. In an over two fold increase from last year, the budget has allocated Rs. 100 crore for the Chabahar Port project.
Despite the American sanctions on Iran, Chabahar has been given a waiver to demonstrate the special relationship India has with the USA. While in 2018-19, there was no budget for the port, which has been in the making for decades, last year saw an allocation of Rs. 45 crore. The increase in the allocation this year, at a time when the situation in the region is delicate, does suggests India's commitment to the Chabahar cause. But it also borders on overenthusiasm, as the last year's allocation was unspent. As private companies are hesitant to invest in Iran even before the recent tensions between the USA and Iran, sparked off by General Soleimani's killing, the question is whether the government will be able to find a way to push through the project, overcoming the challenges.
So far, the port has been under-utilised. In a reply in Parliament, the ministry of external affairs revealed that the first consignment to India through Chabahar port was in February 2019. “Subsequently, it has sent four more consignments to India through Chabahar port,” the ministry’s reply read. In the recent meeting of the India-Iran joint economic commission, held between External Affairs Minister S. Jaishanakar and his Iranian counterpart Javad Zarif, the two sides have promised to expand connectivity. The budget allocation is a message that India is serious about this commitment. As this comes at a time when alternative routes to Afghanistan will be essential, the question of fulfilling the promise remains to be seen.
The ministry of external affairs is not using all its budget might to woo Africa. The allocation of the budget for a continent, that has seen high profile visits as proof of the Indian romance, has been slashed by Rs 100 crore. In 2019-20, the African countries got Rs 450 crore. This year, the allocation has oddly slumped to Rs 350. And for a ministry that claims to be focusing on Africa—a plank that Prime Minister Narendra Modi has established—the reduction of over twenty per cent suggests a tempering of focus. This is especially in a year when India is to host the India Africa summit.
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The ministry of external affairs is reevaluating its spend across its neighbours—a slight shifting in priorities. Aid to Nepal has been dramatically reduced. In 2019, Nepal received Rs 1,200 crore. This has been reduced by Rs 400 crore to stand at Rs 800 crores. The allocation for Maldives has also fallen by Rs 26 crore. The previous budget had a largesse of Rs 326.45. This year, Maldives has got Rs 300 crore. Bangladesh, however, has got Rs. 50 crore more. In 2019, the budget allocated Rs 150 crore, which this year has seen a marginal increase to Rs 200 crore. Afghanistan continues to get Rs 400 crore.
Myanmar has, however, seen a jump in allocation. In 2019, the country had Rs170 crore allocated to it—more a 50 per cent decrease from 2018. The 2020 budget has seen the country get Rs 300 crore. Seychelles too has found increased allocation indicating that Assumption Island dispute—where India was building naval facilities—may be back on track. The deal had been signed, but India found itself in trouble when opposition leaders and private citizens chose to oppose India's military presence on the Island.
The allocation for Seychelles in 2019—at the height of the problem—was Rs. 45 crore. This year, there is much more optimism with Rs. 140 crore allocated. This has been the highest allocation in the past three years.
