During Narendra Modi’s campaign for the 2014 general elections, he promised to create 10 million jobs for India’s youth if elected. However, job creation, badly impacted by the fall in exports caused by the global economic slowdown, is now at its “lowest in seven years.”
A Chinese megaproject in Sri Lanka has encountered violent resistance from angry local residents who fear forced eviction from their land. The protesters are also worried that Hambantota will become a Chinese colony over time.
Modi explained that the demonetization was to stop counterfeiting of the current banknotes, as these had allegedly been used for funding terrorism. It was also designed to crack down on black money, a term which refers to income illegally obtained or undeclared for tax purposes.
There is no significant negative impact of Brexit on the Indian economy as both are historical trading partners and both are keen to strengthen and deepen their economic relationship, which is apparent from the fact that both are looking to establish a Free Trade Agreement in merchandise goods.
On September 29, 2016, it was announced that India had carried out “surgical strikes” across the Line of Control and destroyed so-called “terror launch pads” where terrorists had allegedly assembled to infiltrate Indian-administered Kashmir. Pakistan responded by rejecting them as an over-exaggeration and fabrication of the truth.
On his first visit abroad after assuming office, Nepalese Prime Minister Pushpa Kamal Dahal visited India from September 15-18. The choice of India for the first visit by the prime minister of Nepal was a smart move to reinforce India-Nepal special relations.
The primary goal of “Make in India” is to make India a global manufacturing hub. Manufacturing currently occupies a 16 percent share of India’s GDP but the government hopes to raise it to 25 percent by 2025.
The key challenge in the Brahmaputra River Basin is the rising suspicion and distrust, and the lack of open communications between the countries. Negotiations that have happened so far are essentially bilateral and confidential with no public participation.
2016 has proven to be a busy year thus far for diplomats of the major world powers as they flew into South Asia’s capitals to cut deals and cooperate in combating terrorism as well as extending areas of cooperation with geopolitical implications.
On August 8, 2016, over 70 people were killed and more than 120 injured in a suicide bombing in Quetta, the capital of Pakistan’s Balochistan province. As Balochistan is the location of Gwadar Port, the southern terminus of the China-Pakistan Economic Corridor, the massacre highlights the security risks facing CPEC.