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Open Forum
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Myanmar Elections: PREDICTABLE RESULTS, By Dr. Patryk Kugiel, 10 Jan 2026 |
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Spotlight
New Delhi, 10 January 2026
Myanmar Elections
PREDICTABLE RESULTS
By Dr. Patryk Kugiel
(Expert, Centre for
Intl Relations, Poland)
The elections in Myanmar will not be
completed until January-end 2026, but the result is already known. The ruling
junta will declare victory and restore a facade of democracy. It wants to try a
controlled transformation once again, but on its own terms and without
surprises. Will the United States cede influence over this strategic country to
China and Russia? Will Europe decide to support the Burmese opposition and
prolong the civil war without cooperation with the US?
Myanmar has a population of 51.5 million. The
voter registration organised in 2024 didn’t include 19 million citizens and over half of
the nation’s territory. Nevertheless, General Aung Min Hlaing, Army head and dictator
who has ruled since February 2021, decided to organise the repeatedly postponed
vote. The elections were divided in 3 stages and limited only to major cities.
On December 28, voting took place in 102 of 330 districts. In January 11 and
25, residents of another 100 and 63 municipalities will go to polls. In 56
municipalities, there’s no voting due to ongoing civil war.
The military coup of 2021 marked the
beginning of an internal armed conflict. Over 90,000 people have died, thousands
of homes burnt, 3.5 million people forced to flee their homes, and 22 million
need humanitarian assistance. Just a year ago, the junta controlled only about
a quarter of territory, and desertions had reduced army from 300,000 to just
125,000 soldiers. For the first time, the defeat of the Tatmadaw, as the
military is called, seemed a real possibility.
A Facade of Democracy
Elections are held under unfair rules, and
outcome is known from beginning. Therefore, Thomas Andrews, UN Special
Rapporteur on human rights in Myanmar, in October 2025 report, described these
as a “fraud” and a “farce” intended only to strengthen the junta’s legitimacy.
Burmese people’s opinion is least important, they are merely meant to be
extras in a spectacle addressed to “foreign governments,” not domestic voters.
The military’s party, the USDP (Union
Solidarity and Development Party), is expected to win. The generals have
learned from “unsuccessful” experiment with democratic transformation from
2011-2020 and this time they can’t allow any cracks in the system that could
threaten their complete dominance. Recall, it was crushing defeat of USDP and
the overwhelming victory of Aung San Suu Kyi’s NLD in November 2020 that
prompted them to overturn the tables and change rules of the game.
This time, the NLD (and 40-odd parties) is
outlawed and can’t contest and Suu Kyi (along with 22,000 opposition members)
is in prison. In addition to 25% of parliamentary seats reserved for active
military personnel, the USDP’s dominance is to be ensured by changing to a
proportional one. The new electoral law in July is intended to intimidate
voters and break Opposition resistance--one can be sentenced to 10 years in
prison for “disrupting the electoral process through public speeches, protests,
distributing leaflets, or making threats.”
It’s therefore not surprising that Andrew
concluded “free and fair elections are not possible when opposition leaders are
arrested, detained, tortured or killed, when it is illegal to criticize the
junta or the elections, and when journalists are in prison for telling the
truth.”
Proxy War
The elections are intended to give the junta
a way out of the dead end it has created for itself, to end emergency and its
international isolation. These will also determine outcome of long-standing
international rivalry between democracy and authoritarianism forces. The 2021
military coup interrupted democratisation and its ties with Europe and USA.
Russia readily stepped into this void, becoming the junta’s most important
ally, providing it with weapons, political support, and economic assistance.
Myanmar has become another front in the proxy rivalry between Russia and the
West.
Although the West, focused on Ukraine war, the
Burmese people were fighting the same enemy there. At least, that’s what
Burmese journalists and activists who reached Europe in recent years claim: “a
victory over the junta in Myanmar would be a defeat for Vladimir Putin, and
even small arms deliveries tos the armed opposition would also serve Ukrainian
cause.”
Over past few years, Moscow has increased its
influence in Myanmar, gaining an important foothold in Asia. The Russians promised
investments in nuclear power plants, construction of an ocean port in Dawei,
down south, refineries, and increasingly sent their own warships on friendly
visits to the Indian Ocean. China, which long observed the situation from a
somewhat neutral distance, accepted Russia’s growing influence. However, when
the risk of the regime’s collapse arose, they sided with it, which changed the
course of the war.
In recent months, Beijing has forced several
ethnic armed groups to conclude a ceasefire with the army and return the
captured cities and communication routes. It is supporting elections, waiting
for completion to become fully involved. For China, Myanmar is of strategic
importance as an access route to Indian Ocean and a source of rare earth metals
and other natural resources. After years of hesitation, Beijing concluded that
the junta offered the best guarantee of access to these resources. While Russia
saved the regime from collapse, China allowed it to tip the scales of victory
in its favour.
The West’s retreat
After the coup, Western countries sided with
the democratic opposition and imposed economic and political sanctions on junta
members. They offered financial and political support to pro-democracy forces.
However, they didn’t recognise National Unity Government (NUG) formed by
defectors from the NLD, nor did they provide them with military assistance.
Financial and moral support weakened as the attention of Europe and the US
became increasingly absorbed in Ukraine war.
The final abandonment of the Burmese
democracy cause came in 2025 with a change in US policy. In January, USAID
assistance was suspended, which affected independent media and NGOs. In July,
the Americans lifted sanctions previously imposed on four companies and
individuals linked to the junta. In November, the US revoked the “temporary
protected status” of refugees, deeming they could be safely returned to their
homeland. Justifying this decision, US Secretary of Homeland Security Kristi
Noem positively assessed Myanmar’s preparations for “free and fair elections”
and ceasefire agreements as evidence of an improving situation.
Although it’s difficult to predict US
administration’s next step, this has weakened the decade-long Western policy of
supporting pro-democratic forces in Myanmar. The junta used this for propaganda
purposes, emphasising normalisation of relations with the US and elections’ legitimacy.
Reports from UN, human rights organisations, and institutions from many Western
countries show the superficiality of the entire process.
Predictable results
The elections are being held in an atmosphere
of fear, civil war, an opposition boycott, and with tension. Regardless of
their course, these will strengthen the army’s position and weaken the
democratic movement. These will: give military the power to successively regain
control of the country and consolidate power; not end civil war, but will
facilitate stabilisation of internal situation; signify not only a victory for
the generals, but also for authoritarian patrons: Russia and China. This will
create a serious moral and strategic dilemma for Myanmar’s other partners –
other ASEAN members, Western countries, and India.
The elections are a final act of a
confrontation that the West lost much earlier. Indifference to fate of Burmese
people who believed in democracy, refused to accept its loss, and the lack of
decisive support for opposition in recent years, sealed Myanmar’s current fate.
The quiet but consistent build-up of Russian influence in a country with a strategic
location and vast resources of rare earth minerals was overlooked. With the
West’s passivity, Myanmar will be a success for the Kremlin. After a series of
setbacks in Syria, Iran, and Africa, this could reverse the negative trend for
Putin and convince wavering dictators that it’s worthwhile to align themselves
with Russia.---INFA
(Copyright, India
News & Feature Alliance)
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US Invasion of Venezuela: INDIA’S DIPLOMATIC BALANCING ACT, By Dr. D.K. Giri, 9 Jan 2026 |
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Round
The World
New
Delhi, 9 January 2025
US Invasion of
Venezuela
INDIA’S DIPLOMATIC
BALANCING ACT
By Dr. D.K. Giri
(Prof of Practice,
NIIS Group of Institutions)
The
recent US invasion of Venezuela has sent shockwaves across the globe, sparking
intense debates and diplomatic maneuvering. As tensions escalate, India finds
itself walking a tightrope, balancing its strategic interests with its
commitment to sovereignty of independent countries and non-interference by
external powers.
What
led to Donald Trump take military action and capture the President of Venezuela
Nicolas Maduro? There could be three possible reasons for his action against
Maduro. It is not exactly an US invasion, as the American Congress had not
authorised the President to take such action. But that is the nature of US
politics where President can order the military for any action and take
post-facto approval from Congress. Even though Congress does not endorse
President’s action, Maduro has been captured and is being trialled under the US
law.
The
reasons for invasion include: a kind of revival of Monroe Doctrine of 1823, a
strategic concept named after the Fifth President of the United States James
Monroe. The Doctrine essentially meant the American dominance of the Western
Hemisphere as a distinct sphere of influence for the US while warning European
powers against further colonisation or interference in South America. Now,
Donald Trump’s action is defined by the US media as ‘Donroe Doctrine’.
The
second is Trump’s idea of pushing back China and Russia in South America;
mainly China as it has had massive investment in the oil-rich Venezuela. Almost
80 per cent of Venezuela’s oil was purchased by China. Although China was wary
of its investment in the face of American push, the Chinese oil giant, Concord
International Oil had just signed a 1b USD contract with Venezuela’s state oil
company PDVSA.
The
third reason could be Venezuela’s oil, 300 billion barrels which constitute 17
per cent of world reserve, which is four times more than the US reserves. Donald
Trump with his focus on business was eyeing the Venezuelan oil during his first
term itself. However, in his second term, capturing the oil market of Venezuela
was his first priority. Although Donald Trump does not profess military
intervention, he has been doing so for business interest, be it in Venezuela or
Iran. Associated with the oil angle, Trump Administration was also quite wary
of the Leftist governments in South America. Venezuela and Cuba remained as
eyesores for Trump and his Foreign Secretary Marco Rubio.
Venezuela
has been embroiled in a political crisis since 2013. The opposition-led
National Assembly, backed by the US and several Western countries, had
challenged the legitimacy of President Nicolás Maduro’s government. The Maduro
regime, supported by Russia, China, and other nations, however maintained
control over the government. The crisis deepened in 2019 when Juan Guaidó, the Opposition
leader, declared himself interim president, citing constitutional grounds. The
US, Canada, and several European nations recognised Guaidó's leadership,
imposing sanctions on Maduro’s government. Maduro, however, refused to step
down, enjoying support from key allies like Russia and China.
The
US has long been critical of Maduro’s government, citing human rights concerns,
drug trafficking and alleged electoral fraud. In 2019, the US imposed severe
economic sanctions on Venezuela, targeting its oil industry – a critical sector
for the country’s economy. It then imposed naval blockade and fired and killed
Venezuelans carrying shipment on the ground of drug trafficking. The recent US
invasion, justified as a “humanitarian intervention” to oust Maduro became the
last straw on the Camel’s back for Trump.
The
invasion has raised questions about international law and the principle of
sovereignty. Many experts argue that the US action undermines the United
Nations Charter and sets a precarious precedent for interventionism in domestic
affairs of sovereign nations.
India,
with significant economic interests in Venezuela, has adopted a cautious
approach. New Delhi has abstained from explicitly condemning the US invasion,
instead calling for “dialogue and peaceful resolution” of the crisis. India’s
stance reflects its energy interests as Venezuela is a key oil supplier to
India, and stability in the region is crucial for India’s energy security. In
terms of India’s avowed strategic autonomy, New Delhi seeks to maintain its
independence in foreign policy, avoiding alignment with any particular bloc and
India has consistently upheld the principle of sovereignty and non-interference
in internal affairs.
India’s
Ambassador to the UN, speaking at the UN Security Council, emphasized the need
for a peaceful resolution, urging all parties to engage in dialogue. New Delhi’s
approach aims to balance its relations with the US while protecting its
interests in Venezuela and maintaining ties with Russia and China.
The
international community is divided. The US
allies Canada and several European nations have implicitly endorsed the
invasion by their muted responses. China, Russia, and allies mainly Iran have condemned
the invasion, supporting Maduro’s government and sovereignty. China has made
the strongest protest and has asked for handing back Maduro to Caracas. It is
understandable as Beijing is competing with Washington and its economic
interest has been badly hit.
Furthermore,
China was making heavy inroads into South America. At one point, Beijing
claimed that there were 24 countries signing up for participating in BRI, the
biggest strategic push for world influence of Beijing. Global South countries
including India, Brazil, and South Africa, advocate for peaceful resolution and
dialogue. Among the South American countries, only Cuba has made the sharp
reaction to US action on Venezuela.
The
US invasion of Venezuela has escalated tensions; the crisis may spill over into
neighbouring countries, destabilising the region. It undermines international
law; the invasion sets a worrying trend for interventionism. It complicates
diplomacy as India’s balancing act may be tested as global pressures mount. It
raises humanitarian concerns; the situation has led to reports of civilian
casualties and displacement, raising concerns about humanitarian access.
India
and Venezuela have traditionally enjoyed cordial ties. Venezuela is a key oil
supplier to India, and Indian companies have investments in the country’s oil
and gas sector. India had engaged with Maduro’s government on economic cooperation,
even as the US and others questioned its legitimacy. However, as the situation
unfolds, India faces a delicate balancing act. New Delhi has to protect Indian
interests. Ensuring the safety of Indian citizens and investments in Venezuela
is the key priority. New Delhi could support multilateral efforts by working with
like-minded nations for a peaceful resolution.
The
crisis in Venezuela underscores the complexities of geopolitics, where national
interests, sovereignty, and global governance intersect. As India navigates
this challenging landscape, it must prioritize its interests, uphold
international law, and promote peaceful resolution. This is however a text-book
diplomatic position. Dialogue and peaceful resolution as a strategy is trite. The
world has been thrown into the long-past strategy of realpolitik which meant
might is right.
The
US action in Venezuela is a stark reflection of such strategy. Given the
capricious nature of Donald Trump, who likes quick actions and solutions, he
may not think of a regime change in Venezuela as the US has burnt its fingers
in Iraq and Afghanistan. So, he would like to pull out sooner than later having
ensured the oil business for America. In any case, India will continue to walk
the diplomatic tight rope for some time to come.---INFA
(Copyright, India
News & Feature Alliance)
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From Discord To Concord, By Inder Jit, 8 January 2026 |
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REWIND
New Delhi, 8 January 2026
From
Discord To Concord
By
Inder Jit
(Released
on 5 January 1982)
Most people have by now made
their New Year resolution. Regrettably, however, there is no sign yet of any
resolution for the nation as a whole. Mrs Gandhi as the Prime Minister, did
give a call for a united war on poverty in the New Year in her speech at
Lucknow on December 30. She also said much else that was good and welcome. The
importance of unity and discipline for national progress was underlined and the
need to rise above petty prejudices emphasised. Happily, she almost repeated the famous words
of John F Kennedy: "Ask not what the country can do for you. Ask what you
can do for the country". But in the same speech she also loaded the dice
against any united effort. She denounced the Opposition strongly instead of
inviting it on the eve of the New Year to join in a collective effort in
tackling the many crises facing the country. The number of Indians living below
the poverty line has now gone up to over 50 per cent.
We have thus in the New Year
various party resolutions specifically stated and not quite so stated.
Notwithstanding all the sugar-coated eloquence, each party is essentially for itself,
raising a pertinent question: Can we got them to put country before self? Must
the New Year be as distressing as the old? No, it need not. The New Year can be
a lot better provided we are willing to make much-needed new resolves. Fortunately,
we do not have to go far for an answer, as discovered in the course of my quest
for a New Year resolution for India. The answer was provided by the Founding
Fathers of our Constitution in the shape of the National Flag, the true meaning
of which is largely forgotten by the older generation and is little understood
by the new. The flag, which was intended to be a constant reminder of certain
values, was adopted by the Constituent Assembly on July 22, 1947. However, it
was presented to the nation on behalf of the women of India at the Assembly's
historic midnight session on August 14, 1947.
There is no gainsaying the
fact that the National Flag is still hoisted from the ramparts of the Red Fort
on Independence Day. But all this is now largely ceremonial. The real significance
of the Flag is missed even by those who have witnessed the ceremony from year
to year. Netaji Subhash Chandra Bose was the first to give a historic call for
flying the tri-colour from the ramparts of the Red Fort which alone, in his
opinion, would symbolise the liberation of India. Nehru accepted the idea and
eloquently implemented it. The National Flag is not merely a horizontal
tricolour of deep saffron, pure white and dark green. The chakra in blue in the
middle of the white band does not merely represent the charkha. The flag links
the past with the present and symbolises all that is good and glorious in
Indian tradition and heritage which, in the words of Nehru, enabled the country
to overcome degradation from time to time -- and survive through the vast ages.
We cannot do better than to
go back to July 22, 1947 and recall what three great Indians -- Nehru,
Radhakrishnan and Sarojini Naidu -- said on the occasion. Nehru, who moved the
resolution on the National Flag, said in an emotion-charged speech: "Behind
the resolution and the Flag which I have the honour to present for adoption lies
history, the concentrated history of short span in the nation´s
existence...Memories crowd in upon me… We looked up to this flag not only with
pride and enthusiasm but with span in a tingling in our veins; also how, when
we were sometimes down and out, then again the sight of this flag gave us
courage to go on. Many of our comrades who have passed, held on to this flag, some
amongst them even unto death, and handed it over as they sank to others to hold
it aloft…. It is right and proper that we adopt the symbols of this
achievement, the symbol of freedom. We thought of a flag which would in its
combination and in its separate parts would somehow represent the spirit of the
nation and the tradition of the nation…"
Nehru thought the Flag was
"very beautiful" and added: "It has come to symbolise many other
things, things of the spirit, things of the mind, that give value to the
individual´s life and to the nation´s life, for a nation does not live merely
by material things… It is important that we should have the good things of the
world… Nevertheless, a nation, and especially a nation like India with an
immemorial past, lives by other things also, the things of the spirit. If India
had not been associated with these ideals and things of the spirit during these
thousands of years, what would India have been? It has gone through a great
deal of misery and degradation in the past. But somehow even in the depths of
degradation the head of India has been held high and the ideals of India have
been high. So we have gone through these tremendous ages and we stand today in
proud thankfulness of our past and even more so for the future that it to come…
If India had not stood for something very great, I do not think India could
have survived …"
Radhakrishnan described the
Flag "as a legacy bequeathed to us by the architects of liberty" and
said: "Times are hard... The world is full of misunderstandings,
suspicions and distrusts. In these difficult days it depends on us under what
banner we fight. Here we are putting in the very centre the white, the white of
the Sun's rays. The white means the path of light. There is darkness even at
noon as some people have urged, but it is necessary for us to dissipate these
clouds of darkness and control our conduct by the ideal light, the light of truth,
of transparent simplicity which is illustrated by the colour of white. We
cannot attain purity, we cannot gain our goal of truth, unless we walk in the
path of virtue. The Asoka's wheel represents to us the wheel of the Law, the
wheel of the Dharma. Truth can be gained only by the pursuit of the path of
Dharma, by the practice of virtue. Truth -- Satya, Dharma -- Virtue, these
ought to be the controlling principles of all those who work under this Flag...
"The red, the orange,
the Bhagwa colour represents the spirit of renunciation. It is said: All forms
of renunciation are to be embodied in Raja Dharma. Philosophers must be Kings.
Our leaders must be disinterested. They must be dedicated spirits. They must be
people who are imbued with the spirit of renunciation which that saffron colour
has transmitted to us from the beginning of our history. That stands for the
fact that the world belongs not to the wealthy, not to the prosperous but to
the meek and the humble, the dedicated and the detached… If we are not imbued
with that spirit of renunciation in these difficult days, we will again go
under. The green. The green is there--our relation to the soil, our relations
to the plant life here on which all other life depends. We must build our
Paradise here on this green earth. If we are to succeed in this enterprise, we
must be guided by truth (white), practise virtue (wheel), adopt the method of
self-control and renunciation (saffron)."
Sarojini Naidu had no
intention to speak. But she agreed when some members clamoured that they were
eager to hear "Bul-bule Hind" and the President of the Assembly, Dr.
Rajendra Prasad, said: "I will call her at the end. I am sure it will be
the sweet speech and we should, according to our old custom, end with
sweets". Said Mrs Naidu: "Today, I ask one and all to honour this
Flag… That wheel, what does it represent? It represents the Dharma of my
illustrious and beloved leader Mahatma Gandhi and the wheel of time that
marches and marches and marches without hesitation and without halt? Does it
not represent eternity? Does it not represent the human mind? Who shall live
under the flag without thinking of the common India… Remember under this flag
there is no prince and there is no peasant, there is no rich and there is no
poor. There is no privilege. There is only duty and responsibility and
sacrifice. .. Men and women of reborn India, rise and salute this Flag!"
There is need today to
salute the Flag again – a flag which represents India and not any party or
individual. This is all the more necessary at a time when our people are
inclined to forget that institutions are infinitely more important than any
individual, howsoever great. Most of us callously ignore the caution which John
Stewart Mill wanted observed by all those interested in the maintenance of
democracy – a caution which was rewarded and emphasised by Dr. Ambedkar in the
Indian context at the concluding session of the Constituent Assembly on
November 25, 1949. He said there was nothing wrong in being grateful to great
men who had rendered lifelong services to the country. But there were limits to
gratefulness. He added: "For in India, Bhakti or what may be called the
path of devotion or hero-worship, plays a part in its politics which is
unequalled in magnitude by the part it plays in politics in any other country
in the world. Bhakti in religion may be a road to salvation of the soul. But in
politics, Bhakti or hero-worship is a sure road to degradation or eventual
dictatorship."
Old is not necessarily gold.
But truth is fundamental. Mrs Gandhi is today the undisputed leader of India.
She and her party wield more power than any other democratically-elected Government.
Nevertheless, they alone cannot tackle the deepening crises facing the country.
India can meet the challenge successfully through what Mrs Gandhi herself
described as unity and discipline. However, this will be possible only if Mrs
Gandhi provides the required leadership and restores to our society
time-honoured values, which today lie in a shambles. John Kennedy's words will
make sense to our people only if ministers, too, will think of their ministries
not in terms of what they can get out of them but in terms of what they can
give. The same applies to our legislators, bureaucrats, industrialists, businessmen
and a whole host of others. Unity can be forged on the basis of a fresh
commitment to truth, virtue, simplicity, discipline and renunciation. We would,
therefore, do well to reaffirm our commitment in the New Year to the flag and
the basic values it represents. This would constitute an overdue step of
getting India to move from national discord to national concord.---INFA
(Copyright, India News and Feature Alliance)
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Resilient Economy: INDIA SET TO FACE CHALLENGES, By Dhurjati Mukherjee, 7 Jan 2026 |
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Open
Forum
New Delhi, 7 January 2026
Resilient Economy
INDIA SET TO FACE CHALLENGES
By Dhurjati Mukherjee
With the onset of the new year, it must be admitted that the trends
appear quite encouraging. The pacts with Oman and New Zealand in December can be
said to be favourable for India and specially in a critical geopolitical
situation with a 50 percent tariff imposed by the US still hanging over the
country. India has steadily overcome the problem and has moved ahead,
overtaking Japan as the world’s fourth largest economy with GDP valued at $4.18
trillion and is steadily on track to replace Germany by 2030 as the third
largest economy.
The trade deals are no doubt encouraging and,
according to Prime Minister Modi, these “will create many new opportunities for
growth, innovation and employment for our youth”. Moreover, experts feel that
the new year augurs well as 2025 witnessed pushed through one of the most
expansive reform agendas in recent years, overhauling tax laws, labour rules,
business regulations as the government sought to improve governance and reduce
compliance costs to attract investment and position the economy for long term
growth.
Significantly, the Indian economy grew at 8.2
percent in the July-Sept. quarter as a strong comeback in the manufacturing
sector and robust services activity helped it clock the fastest pace of
expansion in six quarters. With the Reserve Bank of India cutting repo rates by
26 basis points, resulting in softening of home loan rates, the trend is
obviously quite encouraging and augurs well for the economy, more so in such
geopolitical conditions, which are not so favourable. According to Modi, “it
reflects the impact of pro-growth policies and reforms. It also reflects the
hard work and enterprise of our people”.
Added to this is the recent report of the
International Monetary Fund (IMF) which called for structural reforms to
support India’s economic development and encouraged the government to build
human capital, boost female labour force participation, maintain its public
investment momentum and strengthen the business environment. The IMF board
noted that deeper trade integration would strengthen India’s competitiveness
and attract more foreign investment while greater focus on R&D and
innovation would support productivity-led growth. Advancing the green
transition, supported by expanded access to concessional financing was also
highlighted towards moving to resilient growth.
The very fact that the report acknowledged
India’s strong economic performance and resilience which benefited from sound
macroeconomic policies and reforms are indicative of a positive trend in the
economy. The recent spurt in growth may be attributed to the result of push
factors right from the Union budget’s tax cuts that were followed by the goods
and service tax reforms and the impact of these may also be felt in the third
quarter as well. Thus, an annual growth rate of over 7 percent has been
projected by the RBI for the current fiscal. However, what is of concern is the
weakening of the rupee with merchandise imports outpacing exports and FDI
slowing amid global uncertainty.
It goes without saying that India has to
emerge as a strong manufacturing hub with low wage possibilities. While there
is much talk of the hire and fire policy being implemented as also keeping a
check on wages of workers to compete with competitors like Bangladesh, Vietnam
and even China, it needs to be pointed out that depriving workers in the
unorganized sector cannot be a solution. On the other hand, the use of low-cost
technology solutions may be inducted to meet quality parameters which find
global acceptance. At same time, the present labour reforms are in the
right spirit and may not deprive workers.
Analysing the economic situation, it can be said to be quite encouraging
with the government eager to make investments in various specialised areas,
keeping in view the need for import substitution. The special focus on
indigenous defence production will boost the economy in the coming few years as
experts feel that India may become a mid-sized exporter in the next three years
or so. Already the country has made considerable progress in shipbuilding and
manufacture of small aircraft and helicopters. According to the central
government, the country’s indigenous defence production hit a record Rs
127,434 crore in 2023-24, a 174 per cent surge from Rs 46,429 crore in 2014-15.
India is on track to achieve a target of Rs 1.75 lakh crore in defence
production in the current fiscal year.
However, what is needed is additional efforts by the private sector to
boost manufacture through modernisation and expansion of existing units, which,
to an extent, has already started. The fund raising by companies and the
induction of technology and the much talked about AI may go into manufacturing
of large products to make them globally acceptable as per international
standards. The Tier-II and Tier-III should be the new engines of growth where,
in most cities, infrastructure has vastly improved. In these cities, private
sector is already quite active and there needs to be a further boost to
manufacturing.
In the new year, areas of concern are the weakening rupee, continued
flight of foreign portfolio investors etc. Certain things need to be given
priority, the most important being the green transition. While the power sector
is under the active consideration of the government, controlling emissions in
the transport sector must be seriously considered. Also, efforts would have to
be made to increase female participation in the labour force, as rightly
pointed out by the IMF. The very recent opening of nuclear power to private
investors offers a big opportunity to big corporate houses to plan something in
this direction.
Meanwhile, the Centre is expected to give a thrust to capital
expenditure in the forthcoming budget, hoping that a multiplier effect along
with higher consumption demand will boost investment and economic activity. The
focus will be on Railways, which may get a higher budgetary allocation of
around Rs 2.7 lakh crore in the next fiscal, considering the increased number
of projects against Rs 2.5 lakh crore allocated in the current financial year.
Laying new tracks and procurement of modern coaches will obviously get priority
in the increased allocations. Recently,the industry body CII urged the
government to push institutional reforms and fiscal consolidation in the budget
and this momentum must continue. All this portends to an encouraging trend, and
it can’t be denied that the Indian economy is gaining in strength as a major
global force.---INFA
(Copyright, India News & Feature Alliance)
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2026 China Forecast: STABILITY UNDER CONTROL, By Maciej Gaca, 3 Jan 2026 |
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Spotlight
New Delhi, 3 January 2025
2026 China Forecast
STABILITY UNDER CONTROL
By Maciej Gaca
(Expert, Centre For International
Relations, Poland)
The year 2025 did not bring China the strategic shift or
adjustment to its governance model that some external observers had
anticipated. From a systemic perspective, it was rather a year of completion of
the direction that had become clearly outlined after 2020 and was subsequently
confirmed in Party documents and institutional practice. Instead of signals of
liberalisation or a technocratic reset, a consistent consolidation of centralisation
and control mechanisms was visible.
Accordingly, 2026 does not appear to be a turning point, but
rather the first full year of operation of the mechanisms that were gradually
implemented and tested between 2020-2025. The transition from the adjustment
phase to routine is of crucial prognostic significance. It means that state
actions will no longer be justified by the exceptional nature of the situation
but presented as a standard way of governing.
China is not in a transitional state after 2025. Rather, it
is entering a period of stabilisation in a model that combines high short-term
resilience with decreasing adaptive flexibility. The state apparatus remains
capable of absorbing shocks and imposing order, but it is increasingly
difficult to generate development impulses independent of the decision-making
center. This paradox of stability achieved at the expense of dynamism is a key
starting point for 2026 forecast.
Power Architecture
Analysing China’s power architecture requires a shift away
from the classic division between party and state as distinct spheres. In
governance, this boundary has been systematically blurred in recent years, with
the party remaining the key decision-making entity, simultaneously acting as
the political center, cadre apparatus, and overarching institutional regulator.
In this arrangement, the state functions as the executive, while law and
technology serve as tools for regulating behavior.
In 2026, the state no longer functions as an autonomous
political actor. Its role is to operationally implement decisions made within
party structures and to manage its consequences. This is evident in both
economic policy and internal security. Ministries, local authorities, and
regulatory agencies operate within increasingly narrow discretionary limits,
and the system of personnel accountability rewards procedural compliance over
initiative.
Law plays a special role in the architecture of power. The
concept of the rule of law has not been abandoned, but rather reinterpreted.
Law ceases to function as a boundary of power and begins to operate as an
instrument for managing behavior. Expanding the definitions of state security,
public order, and national interest allows for the inclusion of increasingly
broader areas of social and economic life in the sphere of security-related regulations.
This logic is evident in both central legislation,
implementing regulations, and judicial practice. The authorities do not
communicate the uniqueness of these solutions but present them as part of
normalising the system in the face of new threats. As a result, the 2026 law
stabilises the system, but at the expense of flexibility and trust. Stability
relies increasingly on effective enforcement and less on social acceptance.
The fourth pillar of government architecture is technology.
Data analysis systems, digital infrastructure, and monitoring tools are being
integrated with the administrative and legal apparatus. Technology functions
not as an autonomous sector of innovation, but as an infrastructure of
governance. The power architecture in China is therefore characterised by a
high degree of control and short-term stability, while limiting capacity for
self-correction. The system remains functional, but increasingly expensive to
maintain.
The Economy
China’s economic forecast requires adjustments to 2025
estimates, not because the system’s fundamental parameters have changed, but
because the growth management
mechanism, which was still considered a temporary solution in 2025, has become
entrenched. It becomes part of permanent political and economic
architecture.
In 2025, the authorities’ primary goal was to prevent a
sharp slowdown and maintain growth at a politically acceptable level. Their
instruments included selective credit support, local fiscal interventions, real
estate market control, and stabilisation of the financial sector. These
measures mitigated the risk of a systemic crisis but failed to unleash new sources of growth dynamics. Therefore, 2026
begins in conditions of relative stability, but without any indication of
structural transformation.
Economic growth will increasingly be driven by administrative decisions rather than market
processes. The projected growth rate, around 4–4.5%, reflects the state’s
ability to allocate credit, steer investments, and mitigate financial risks.
The real estate sector remains an area of managed stabilisation. The goal is
not to return to the expansion model of a decade ago, but to limit balance
sheet effects and prevent debt escalation.
One of the key elements of the 2025-2026 forecast revision
is continuation of weak domestic consumption.
The authorities have not opted for broad redistributive measures that could
significantly boost demand. Controlling fiscal and financial risks remains a
priority, even at the expense of slower domestic demand growth. This means that
consumption will not become the main driver of growth in 2026.
From an international perspective, China will remain an
active exporter, and its trade surplus will be a pillar of macroeconomic
stability. At the same time, friction with trading partners will increase,
stemming from the perception of the Chinese model as asymmetric and subsidised.
For the EU, this means further pressure on protective and regulatory
instruments.
Technology, Law & Security
In China law, technology, and security form a coherent governance system, with
each element mutually reinforcing. Law does not function as a neutral
framework, but rather as an instrument for regulating behavior. Technology
enhances the effectiveness of enforcement, and security serves as the
overarching interpretative category for political and regulatory decisions.
The phenomenon of lawfare—understood as the strategic use of
law to achieve state goals—is structural in nature in China. Regulations
regarding data, cybersecurity, the activities of foreign entities, and academic
cooperation are not responses to individual threats, but rather elements of a
lasting institutional order. Law acts preventively here, limiting actors’ room
for maneuver even before open conflict erupts.
Technology serves as the infrastructure for this model. Data
analysis systems, digital platforms, and monitoring tools enable targeted
enforcement and early identification of problematic behavior. In 2026,
technology is not an area of deregulation, but one of the main channels for
consolidating control.
China is promoting its own approach to the relationship
between the state, technology, and the market through infrastructure projects,
technical standards, and international forums. This process does not lead to an
immediate change in global rules, but rather gradually increases the
acceptability of solutions that strengthen the state’s role in information
management.
Foreign Policy
Chinese foreign policy remains driven by the logic of
mitigating systemic risks. Beijing avoids actions that would lead to irreversible
confrontation, preferring to gradually push the boundaries of acceptable
behavior. This strategy relies on actions below the threshold of open conflict.
Taiwan remains the most important area of this policy. The
pressure is multidimensional: military, economic, informational, and legal. Its
goal is not to achieve a quick resolution, but rather to gradually narrow
Taipei’s decision-making space and normalise China’s presence in the island’s
surroundings.
The war in Ukraine serves as a source of observation for
Beijing, not a model to be replicated. The scale of sanctions, the economic
costs, and the long-term mobilisation of the West all serve as arguments for
caution. At the same time, the conflict is being used in relations with Europe
as part of a narrative of responsibility and need for stabilisation. China's
actions do not take the form of an overt threat, but rather rely on the
selective exploitation of economic, regulatory, and political dependencies. ---INFA
(Copyright, India News & Feature Alliance)
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