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Budget 2018: Big investment in island nations, with eye on maritime diplomacy

The lion’s share of the MEA’s budget has gone to Bhutan — Rs 2,650 crore. Nepal, which has witnessed political turmoil, has been allocated Rs 650 crore for projects, almost 75 per cent more than last year

Budget 2018 on defence, maritime policy

A quiet maritime strategic diplomacy has emerged as the key theme of this year’s Union budget, as the government has allocated large sums of money — hitherto meant for key neighbouring countries. Beneficiaries of the Budget are Seychelles, Mauritius, Sri Lanka and Maldives — all island nations in the strategic Indian Ocean region, where India is competing against China for influence.

A careful perusal of the Budget allocation for the Ministry of External Affairs reveals that Seychelles has been given Rs 300 crore, up from Rs 200 crore, which was the revised estimate for the current fiscal. The 50 per cent jump is in lieu with the government’s plans to develop the infrastructure of Assumption island, one of the 115 islands of the country.

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India last week signed a revised pact with Seychelles to develop an airstrip and jetty on the island, among other infrastructure, that will allow military use. Mauritius has also been allocated Rs 350 crore, marginally more than the current fiscal’s Rs 335 crore. In Mauritius, India has signed an MoU for the “improvement in sea and air transportation facilities” at the Agaléga island.

For Sri Lanka, the government has allocated Rs 150 crore, double of last year. India is moving for the reconstruction of Sri Lanka’s Kankesanthurai Port. These moves come even as Chinese firms have expanded their footprint in the Indian Ocean region with the Hambantota port project, near Colombo, and the under-construction Gwadar Port in Pakistan.

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Delhi has also been looking at strategic maritime opportunities in other overseas markets, committing a $500-million investment in the management and operation of two dedicated berths at the Chabahar port in Iran, and assisting Myanmar in infrastructure improvement projects at the Sittwe and Paletwa ports.

For Maldives, Delhi has allocated Rs 125 crore — same amount as last year. However, there are no active projects in the island country, since there has been a strain in the relationship between India and Maldives.

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However, the amount for the development of the Chabahar Port, a strategic oceanic port in Iran, remains the same as last Budget at Rs 150 crore. The lion’s share of the MEA’s budget has gone to Bhutan — Rs 2,650 crore. Nepal, which has witnessed political turmoil, has been allocated Rs 650 crore for projects, almost 75 per cent more than last year. The Budget also provides for Rs 280 crore towards schemes or projects in Myanmar. The Ministry of External Affairs has been given Rs 15,011 crore in the Union budget, Rs 213 crore more than last year.

Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism ‘2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury’s special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban’s capture of power in mid-August, 2021. ... Read More

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  • Arun Jaitley Union Budget 2018
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