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Context:
The Doklam issue is by itself, as the external affairs minister said, not of any great significance and may settle down to face-to-face confrontation
Background:
- From the middle of the last month onward, India and China troops are arrayed face-to-face on the Doklam plateau
- In June 2017 a military standoff occurred between China and India as China attempted to extend a road on the Doklam plateau southwards near the Doka La pass.
- Doka La became the site of a stand-off between the armed forces of India and China following an attempt by China to extend a road from Yadong further southward on the Doklam plateau.
- Unlike China and Bhutan, India does not have a claim on Doklam, however, India supports Bhutan’s claim on the territory.
Key points:
- In the Belt and Road initiative, the 2013 version of China’s transport corridor, India’s essential interest lies in keeping both Gwadar and Bandar Abbas open for energy supply to it from Central Asia.
- The most optimistic energy forecasts for India with renewable sources including hydel, nuclear and solar still leave substantial gaps.
- China building the transport links to Gwadar is going to create an environment which should be of concern to India.
- Iran has fired the first salvo amongst the oil producers of the Middle East with an angry establishment comment on goings-on in India
Deterioration of the growth prospects this year is again an issue facing a silent wall.
Reasons for this:
- High rainfall in the North West and western UP, which are largely irrigated, matters a lot less than the deficit in the dry Deccan plateau.
- Delayed sowing has an impact.
- There was a big shortfall in the southern region, fluctuating at around a sixth of expected rainfall until August.
- The June figures with the new index of industrial production show that growth is only 0.4 per cent as compared to a figure of 7 per cent in June 2016.
