New Delhi, May 22
Prime Minister Manmohan Singh affirmed here tonight that his government has created a more supportive external environment for India’s economic development.

“We have improved our relations with all major powers and all our neighbours,” Dr Singh stressed while presenting his government’s report card on beginning the fourth year in office.

“Never before has the external political and economic environment been more benign and supportive of our developmental aspirations. The world wants India to do well and it is up to us to take up the challenge and opportunity at hand.”

The Congress-led UPA government has pursued a policy of constructive engagement with Pakistan to establish peaceful, friendly and cooperative relations.

The dialogue process is based upon the January 6, 2004 commitment of the Pakistan President not to permit any territory under its control to be used to support terrorism. The composite dialogue made some progress over the past year with the signing of the agreement on reducing the risks from accidents relating to nuclear weapons and a revised shipping protocol.

India has taken the initiative of opening five points along the Line of Control (LoC) for movement of people, release of prisoners and fishermen, extending tariff concessions under SAFTA to Pakistan, starting cross-LoC and cross-border bus services and the Khokrapar-Munabhao rail service. But at the same concerns remain over infiltration and cross-border terrorism, added the PM.

Dr Singh said the past three years have been eventful for India’s emerging role and status in the comity of nations. India’s foreign policy has adapted to the rapidly changing global environment while at the same time correlating with the remarkable changes taking place within the country itself.

“The UPA government is determined to maintain India’s independent foreign policy built on national consensus and based on supreme national interests.”

With regard to other South Asian neighbours, India’s relations with Afghanistan reached a new height with the two countries co hosting the second Regional Economic Cooperation Conference in Kabul in November last year.

India-China relations witnessed sustained and comprehensive development. The two countries agreed on a 10-pronged strategy to add greater content to their strategic partnership and diversification of relations.

The transformation in Indo-US bilateral relationship is being consolidated constantly which now includes strategic and security issues, defence, counter-terrorism, science and technology, health, trade, space, energy, maritime cooperation and environment. Several steps were taken by both sides to implement the understanding on resumption of civilian nuclear cooperation reached in July 2005.

The rapidly intensifying India-EU relations came at the seventh Summit in Helsinki in October last year where both sides agreed to launch negotiations on a broad-based India-EU trade and investment agreement.

In recent times there has been marked upswing in Indo-Japanese ties, which were elevated to a global and strategic partnership in December last year during the visit of the Japanese Prime Minister.

In pursuance of the “Look East” policy, India has developed multi-faceted relationship with the countries in South East Asia and South Pacific, including Australia and New Zealand. It was agreed in the India-Asean summit that efforts would be made to finalise India-Asean FTA by July this year.