Doklam standoff derails Indo-China ‘strategic economic dialogue’

Mukesh Ranjan

Tribune News Service

New Delhi, August 21

The ambitious India-China strategic economic dialogue appears to have derailed following the ongoing Doklam standoff, as its fifth edition is unlikely to take place with both sides digging up their heels on the border issue.

To add to the Doklam standoff, the early exit of Vice Chairman Arvind Panagriya from NITI Aayog also made things difficult for the dialogue to go further, as he was one of the strongest voices in the government who favoured close economic ties with China.

Panagariya is leaving NITI Aayog on August 31. Besides him, another key official, Additional Secretary Anil Kumar Jain, who had been the key coordinator of the economic strategic dialogue between the two countries, has also shifted out from the NITI Aayog to the Ministry of Environment.

As the fourth annual summit was held in October last year in New Delhi, the next edition was scheduled to take place in China at a mutually convenient date in September-October 2017. But sources in the NITI Aayog hinted that till date there is “no movement” within on the summit, which means it is not on the priority list of the think-tank.

Replicating its previous avatar--the Planning Commission–NITI Aayog carried forward with the third and fourth editions of Strategic Dialogue with China. “The next NITI Aayog vice chairman Rajiv Kumar will take over the leadership of the panel on September 1. But he is known to hold views in contrast to Panagariya, who argued for closer economic ties between India and China by delinking the political aspect. Besides, much of the agreements reached during the fourth summit have not been taken up by either of the governments,” said a senior NITI official.

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A sub-group on infrastructure in the fourth summit had agreed for closer cooperation on semi-high speed railways, redevelopment of railway stations, setting up of a railway university. “None of these agreed areas of cooperation is on the priority of the government. Thus, the roadmap outlined by the fourth summit has itself lost its direction in the absence of political commitment,” the official added.

Incidentally, Panagariya had sought to replicate the Chinese model of provincial economic zones in the form of coastal economic zones in India, besides promoting closer ties between Indian states and Chinese provinces.