India Is Not A Soft State Anymore

After the visiting foreign secretary brought up the subject of tax searches at BBC offices, Foreign Affairs Minister S. Jaishankar “firmly” informed his British counterpart James Cleverly on Wednesday that all firms operating in India must fully comply with relevant laws.

Cleverly brought up the subject during a private conversation with Jaishankar while he was in India to attend a G20 foreign ministers meeting.

The BBC’s offices in Delhi and Mumbai were the subject of survey operations last month by the Income Tax department as part of a purported tax fraud inquiry.

The tax scrutiny was conducted weeks after the UK-headquartered British Broadcasting Corporation (BBC) aired a two-part documentary, “India: The Modi Question”, on the prime minister and the 2002 Gujarat riots.

Jaishankar’s firm response is in stark contrast to former Prime Minister Manmohan Singh’s groveling attitude when in 2010 British Prime Minister Gordon Brown wrote to Singh registering his protest about a tax claim on Vodafone Group Plc.

Singh went on a limp to assure Brown that Vodafone will not be taxed retrospectively for acquiring Hutchinson’s India operations through an overseas transaction. “I can assure you that Vodafone will have the full protection of the law and access to the legal system in India,” Singh wrote in his February 5, 2010 letter to Brown. Unfortunately even this promise Singh could not keep.

Finance minister Pranab Mukherjee eventually introduced a provision in Finance Bill 2012 that empowered authorities to tax companies for acquiring assets in India even if the deal was concluded overseas retrospectively from April 1, 1962. A tax demand under the amended provision was raised, which after years of litigation, was eventually withdrawn.

Ten years later India stands on a much firmer footing in the global arena

Under Prime Minister Narendra Modi, India has undergone significant changes in recent years, both in terms of its economy and its governance. While India may have been perceived as a soft state in the past, it has taken several steps to demonstrate its strength and resolve on various fronts, such as national security, foreign policy, and economic development. Here are some of the reasons why India is not a soft state anymore:

National Security

India has taken several measures to improve its national security, including strengthening its border security, modernizing its armed forces, and increasing its intelligence-gathering capabilities. India has also taken a tough stance on terrorism, both domestically and internationally, and has adopted a zero-tolerance policy towards violence and extremism.

Foreign Policy

India has been assertive in its foreign policy, forging closer ties with other major powers, including the US, Japan, and Australia, as part of the Indo-Pacific strategy. India has also taken a tough stance on China, including its border dispute with China and its growing economic and military influence in South Asia.

Economic Development

India has undergone rapid economic growth in recent years, becoming one of the world’s fastest-growing economies. The government has implemented several economic reforms, such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC), to create a more business-friendly environment and attract foreign investment.

Social Changes

India has also seen significant social changes, such as the abolition of Article 370 in Jammu and Kashmir, the introduction of the Citizenship Amendment Act, and the recent farm bills. These changes demonstrate the government’s resolve to implement significant reforms and push through controversial policies despite opposition.

In summary, under PM Modi’s dynamic stewardship, India’s national security, foreign policy, economic development, and social changes demonstrate that it is no longer a soft state but a strong, assertive country that is willing to take bold steps to achieve its goals.