Last month, European Commission President Ursula von der Leyen announced that the first official <a href="https://nepalitimes.com/here-now/reaction-to-wang-yi-s-nepal-visit-in-chinese-media">foreign visit </a>of the commission in her second term would be to India. On the same day, Marco Rubio held his first bilateral meeting as US Secretary of State with India’s minister of external affairs, Subrahmanyam Jaishankar.
Prime Minister Narendra Modi’s two-day visit to Washington last month confirmed his country’s rising international profile. The visit ended with the promise of what Modi called a US-India “mega partnership.” He has committed to double trade with the US by 2030, increase <a href="https://archive.nepalitimes.com/regular-columns/half-full/A-carbon-neutral-Nepal-is-possible-clean-Nepal,1064">oil and gas imports</a>, and expand US military sales to India.
India is now the fastest-growing major <a href="https://nepalitimes.com/opinion/comment/how-nepal-can-avert-an-economic-crunch">economy</a>, with the IMF forecasting a 6.5% increase in GDP this year. India is expected to overtake Japan and Germany to become the world’s third-largest economy by 2030.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/india-s-election-and-its-economic-future">India’s election and its economic future</a>, Raghuram G Rajan
Despite its <a href="https://nepalitimes.com/news/missing-out-on-nepal-s-tourism-potential">vast potential</a>, India has long been overlooked by the West, both <a href="https://nepalitimes.com/here-now/ukraine-crisis-hits-nepal-economy-hard">economically</a> and <a href="https://nepalitimes.com/news/the-geopolitics-of-nepal-s-politics">geopolitically</a>. But a fundamental global realignment is now underway. America’s ‘unipolar moment’ has given way to an era of great-power competition that, unlike during the Cold War, features demands by emerging and developing economies for a more <a href="https://nepalitimes.com/banner/making-nepal-accessible-to-all">inclusive </a>and representative multilateral system.&nbsp;
In this multipolar age, both the US and Europe see India, a neutral <a href="https://nepalitimes.com/editorial/no-binary-foreign-policy?fb_comment_id=3583384368393672_3586424038089705">foreign-policy </a>actor and dynamic<a href="https://archive.nepalitimes.com/news.php?id=18861"> emerging economy</a>, as vital to the future of their strategic priorities.&nbsp;
A founder of the Non-Aligned Movement, India has plenty of experience navigating precarious moments in <a href="https://archive.nepalitimes.com/news.php?id=4896">world affairs</a>. During the Cold War, it skillfully balanced its policies toward <a href="https://nepalitimes.com/here-now/america-nepal-and-the-royal-coup-qedzifz9">the US and the Soviet Union</a>.&nbsp;
When it engaged with <a href="https://nepalitimes.com/opinion/so-far-so-good/the-vagaries-of-fate">the Soviet Union</a>, from which it received considerable <a href="https://nepalitimes.com/banner/civil-military-synergy-in-disaster-management">military assistance</a>, it calibrated its approach to offset US support of Pakistan, without taking sides in the <a href="https://nepalitimes.com/opinion/the-rich-get-richer-and-more-powerful">great-power competition</a>.&nbsp;
India has since maintained this pragmatic balancing act, adapting its foreign policy to a shifting geopolitical landscape. Today, that means recognising its potential to shape global affairs, including by playing a leading role in building an efficient, realistic, and inclusive multilateralism.&nbsp;
This is reflected in Modi’s pursuit of a more assertive, internationalist foreign policy. Beyond building new partnerships and strengthening old ones, Modi has sought to increase <a href="https://nepalitimes.com/news/india-s-hindutva-politics-influencing-nepal">India’s influence </a>in traditional and emerging multilateral fora. In 2023 alone, India held the presidency of both the G20 and the Shanghai Cooperation Organisation (a Chinese creation, comprising nine Middle Eastern and Asian countries).&nbsp;
India plays a leading role in the BRICS, and is characteristically nuanced: whereas Russia and, to a significant extent, China see themselves as disruptors of the existing order, India views itself as a reformer. This enables it to maintain strategic flexibility as it advances its interests.&nbsp;
<a href="https://nepalitimes.com/news/india-china-rail-race">India’s relationship with China</a> is complicated by other factors. While the countries work together in some fora, they are also locked in protracted<a href="https://nepalitimes.com/news/india-bangladesh-border-talks-have-lessons-for-nepal"> territorial disputes</a> and a <a href="https://nepalitimes.com/news/the-race-for-shital-nibas">competition for leadership</a> in the so-called Global South.&nbsp;
India’s growing global clout, including its appeal to Western powers, stems in large part from its ability to act as a counterweight to China. It is indispensable to the Quad alliance with Australia, Japan, and the US, a grouping that is officially focused on <a href="https://nepalitimes.com/opinion/the-quad-maritime-security-and-climate-change">maritime security</a> and economic cooperation, though its members clearly seek to provide a buffer against China in the <a href="https://nepalitimes.com/editorial/between-two-oceans">Indo-Pacific region</a>. It is thanks to India that the Quad is not viewed as just another Western vehicle.&nbsp;
Modi has sought to bolster India’s Southern credentials, including by highlighting its status as the “mother of democracy”. By framing <a href="https://nepalitimes.com/news/is-democracy-too-expensive-for-nepal">democracy</a> as intrinsic to Indian civilisation, rather than a colonial legacy, he aligned India with ‘middle powers’ seeking to redefine global governance on their own terms.&nbsp;
To be sure, Modi has moved India away from the secular and pluralistic values that had flourished after <a href="https://nepalitimes.com/news/the-goal-is-empowerment-and-independence-of-women">independence</a>, in favour of assertive <a href="https://nepalitimes.com/news/unconventional-convention">Hindu nationalism</a>. So many international indices have downgraded India’s democratic status that he is now seeking to create his own.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/borderlines/demodification-of-india">Demodification of India</a>, Chandrakishore&nbsp;
Modi is the second leader of independent India (after Jawaharlal Nehru) to be elected to three consecutive terms, and remains a dominant force in <a href="https://nepalitimes.com/here-now/india-s-faith-in-politics">Indian politics</a>.&nbsp;
And at a time of <a href="https://nepalitimes.com/here-now/the-geopolitics-of-nepal-s-water-and-electricity">rapid geopolitical change</a>, he is committed to leveraging his position, and India’s profound strengths, to turn it into a global player. India has long had the potential to be an active shaper of international affairs. It has now arrived. &nbsp;&nbsp;© Project Syndicate
Ana Palacio, a former minister of foreign affairs of Spain and former senior vice president and general counsel of the World Bank Group, is a visiting lecturer at Georgetown University.

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India has arrived

Having recently overtaken its former colonial master to become the world's fifth-largest economy, India's star certainly appears to be rising. But if the country remains committed to the current government's development strategy, the economy could lose its momentum well before achieving escape velocity. There is a buzz in India today – a sense of limitless possibilities. If it maintains its current growth rate of 6-7% per year, it will soon overtake stagnant Japan and Germany to take over third place. But by 2050, India’s workforce will start shrinking, owing to demographic aging. Growth will slow. That means India has only a narrow window in which to grow rich before it grows old: with a per capita income of just $2,500, the economy must grow by 9% per year for the next quarter-century. That is an extremely difficult task, and the current election may well determine whether it remains possible at all. In pursuit of rapid growth, the Indian government intends to follow a tested road map: the same path that Japan took in the immediate postwar decades, and that China took after the death of Mao Zedong. During the first stage of the journey, labour flows out of the traditional agriculture sector as employment increases in low-skilled manufacturing – typically stitching garments or assembling components into electronic goods. This output is then exported to the developed world to capture the benefits of producing at scale. Cheap labour helps compensate for a country’s other deficiencies, such as excessive bureaucracy, unreliable power (especially electricity), or poor roads. As firms profit from exports, they invest in equipment to make workers more productive. As those workers are paid more, they can afford better schooling and health care for themselves and their children. Tax revenues also grow, providing the resources to upgrade the country’s infrastructure. The result is a virtuous cycle, because higher-skilled workers and better infrastructure enable firms to make more sophisticated, higher-value-added products. That is how China has moved from assembling components to producing world-leading electric vehicles in just four decades. Unfortunately, the same strategy is unlikely to work for India today. It is no accident that India failed to join China in shifting its economy to export-oriented manufacturing, even though the two countries were similarly poor in the late 1970s, when China started on that road. Even low-skilled factory employment requires a minimum level of education and skills. At the time, many Chinese workers met this standard, whereas most Indian workers did not. So, foreign employers found China and its cheap but capable workers more attractive. Moreover, China’s factory workers acquired skills on the job, and their education allowed them to pick up the basic accounting needed to launch their own small enterprises making products like screws and door handles. This explosion of smaller firms contributed immensely to Chinese growth. China had other advantages, too. Despite the outward perception of centralized rule by the Communist Party of China, provincial and municipal bosses have wielded a great deal of power. Mayors, hoping to be promoted for generating growth, helped local firms navigate the country’s otherwise-stifling regulations, overriding a rule here and overlooking one there in the name of getting results. By contrast, Indian bureaucracy in the same period was neither decentralized nor incentivized to promote growth, so it instead became an additional burden on Indian business. Finally, autocratic China could always favour manufacturing in ways that democratic India could not. For example, the Chinese government appropriated land for commercial purposes where necessary; pressured unions to limit wage demands even as labor productivity grew; paid depositors in state-owned banks minimal returns so that the funds could be lent out cheaply to firms; and kept the exchange rate undervalued to maintain local firms’ international competitiveness. In India, attempts to do any of the above would have met fierce democratic resistance. Nonetheless, the current Indian government wants to get on board the manufacturing bus. With many others looking to diversify away from producing in China, Indian economic policymakers see an opportunity to make up for lost time. Moreover, Indian infrastructure has improved markedly. The country now boasts many world-class airports and ports, increased renewables capacity to bridge power deficits, and an excellent highway system. But other impediments remain. Over the decade that the Modi administration has been in office, India’s garment exports have grown by less than 5%, while Bangladeshi and Vietnamese garment exports have grown by over 70%, such that their exports are now multiples of India’s. Recognising these continuing impediments, the Indian government has begun offering subsidies to incentivizse production in India, as well as raising tariffs on imports (like cell phones) to enhance these manufacturers’ profits from selling into the now-protected large Indian market. While it is still early days, one should be skeptical of this strategy. Production-linked subsidies might induce manufacturers to assemble in India, but those firms still will need to import most components. Moreover, margins will be small, because Indian workers now compete with modestly paid Bangladeshi and Vietnamese workers, not with well-paid workers in industrialised countries, as in the past. With little profit for firms to reinvest, and with less tax revenue, net of the subsidy, the virtuous circles needed to move India up the value chain will be much harder to achieve. Worse, even if the Indian government were to scale up manufacturing, the world is not ready for another China-size exporting powerhouse. Given the widespread shift toward manufacturing protectionism and growing concerns about environmental sustainability, the government’s emphasis on Chinese-style manufacturing-led development seems incompatible with where the world is headed. There is another way. To drive growth, India could focus on the export of services provided by its well-educated and skilled population. Though this cohort represents a small fraction of the total population, it still numbers in the tens of millions. Such a strategy would build on India’s strengths. The country is already well known for its role in the global software industry, and now it exports many other services, too, accounting for over 5% of the world’s services exports while its goods exports account for less than 2%.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68.jpg" data-media-id="editor_0" data-image-id="20240522100548_e66e90e780530fb61ba64b94b710c325f0c272e10736fca0d0b3724219edba68" data-rendition-name="original" width="2480" height="1529" loading="lazy" alt="Indian elections Modi rally in Bihar"><figcaption>Photo: BIKAS RAUNIAR(Photo: Bikas_Rauniar)(c)BR</figcaption></figure>  Multinational firms from Goldman Sachs to Rolls-Royce are hiring talented Indian graduates into India-based global capability centres (GCCs), where engineers, architects, consultants, and lawyers create designs, contracts, and content (and software) that are embedded in manufactured goods and services sold globally. These centres already account for over 50% of all GCCs globally, employing 1.66 million Indians and generating $46 billion in annual revenues as of March 2023. Following the pandemic-induced changes in work habits, and given improvements in communications technology, Indians also have started providing a much wider range of remote services, including consulting, telemedicine, and even yoga instruction. Once a service goes virtual, it matters little whether the provider is ten miles or 10,000 miles away. An Indian consultant in Hyderabad can now make a presentation to a client in Seattle on behalf of a team whose members span almost every continent. She not only is well trained and fluent in English, she also costs one-fourth of her US counterpart. True, Indian manufacturing has also benefited from these changes, but this has happened in precisely those areas where engineering, innovation, and design matter more than just the manufacturing process itself. Hence, Agnikul, a Chennai-based firm working to launch small satellites into space, has dispensed entirely with manufacturing supply chains by 3D printing its customised rockets in its own facility. Tilfi, which sells authentic hand-woven Banarasi silk sarees globally through its website, employs trained designers to create fresh fashions for traditional craftsmen, who in turn are encouraged to embrace innovation. It would seem to be a no-brainer that India should build on its strength: millions of high-skilled, creative, educated workers, many of whom speak English. Unfortunately, it’s running out of such workers. While India graduates 1.5 million engineers per year, only a minority attend institutions that impart the high-quality education that is in demand at a GCC or a company like Agnikul. Wheebox, a work-skill assessment company, estimates that half of all graduates are unemployable. Some of these graduates need only a little remedial education to be brought up to speed. But for many Indians, the educational deficiencies run much deeper. While nearly all Indian children start school, fewer than one-quarter can read at a second-grade level by the time they reach third grade. The further behind the stragglers fall, the less sense it makes to stay in school. Many ultimately drop out, incapable of anything but unskilled work. No wonder the share of workers in agriculture is growing in India today, contrary to the usual path for fast-growing countries. India faces a crisis of joblessness today. So, apart from expanding the creative high-skilled sector, India must create jobs that are broadly targeted at the skills people have. It also needs to improve education and skills, both in the short term and over the long term, so that Indian workers can do the jobs of the future. Sensible reforms would recognize that the solutions to both challenges are related. For example, a study shows that if a government-run daycare employs a part-time worker – perhaps a high-school-educated mother – children’s learning improves significantly. With more than one million such daycares in India today, that is potentially one million more workers set on the road to longer-term employability. Similarly, public funding for vocational and apprenticeship programs that allow students to cross the threshold of employability could convert millions into productive workers. There is no shortage of demand for health-care providers, plumbers, carpenters, and electricians. One can find these kinds of proposals in opposition party manifestos. When coupled with reforms to support businesses – especially small- and medium-size firms in labor-intensive sectors like garments, hospitality, and tourism – India could put many more people to work. But this will require carefully designed programs, funded in part by reallocating the tens of billions of dollars now being promised as subsidies to large manufacturers. In the longer run, there is no alternative to increasing the number and quality of childcare, education, and health-care institutions to capitalize on India’s greatest asset: its people. The currently low level of public spending in these areas should be seen as an opportunity, because it means that there is plenty of room to grow. India also can draw on its vast diaspora to seed some of the new higher education and research institutions it must create to expand the numbers of the highly skilled. When people have the right skills, and engage with idea-producing institutions, entrepreneurship will create jobs in the most unlikely of places. It wasn’t the government, after all, that created India’s software industry. Could growing protectionism impede this path? Not necessarily, because high-end services exports are hard to stop at the border if delivered virtually. Moreover, industrialized countries also sell such services globally (think of US management consultants and venture capitalists), which may mean that protectionism in these sectors will be less attractive. And, given their aging populations, industrialized countries have much to gain from India-provided services like telemedicine, since these will reduce the need to attract and assimilate foreign doctors and nurses. Finally, it is in the rest of the world’s interest if India eschews the Chinese path. If India grows richer faster, it will be able to buy much more from others, and if it grows primarily by producing high-value-added services, this will mitigate the impact on the climate. There is indeed a way for India to grow rich before it grows old. But it will not be easy, and it will require a change in vision at the top. That, ultimately, is what the ongoing election is about. © Project Syndicate Raghuram G Rajan, a former governor of the Reserve Bank of India and chief economist of the International Monetary Fund, is Professor of Finance at the University of Chicago Booth School of Business and the co-author (with Rohit Lamba) of Breaking the Mold: India’s Untraveled Path to Prosperity (Princeton University Press, May 2024).

India’s election and its economic future

China’s sharp economic slowdown has raised alarm bells around the world. But it has also thrown into relief the rise of another demographic powerhouse next door.&nbsp; The Indian economy grew at an impressive <a href="https://www.reuters.com/world/india/indias-economic-growth-set-accelerate-its-fastest-year-2023-08-31/">7.8% annual rate</a> in the second quarter of 2023, and the country recently reached an important milestone by becoming the first to <a href="https://www.nytimes.com/2023/08/23/science/chandrayaan-3-india-moon-landing.html">land a spacecraft</a> on the Moon’s potentially water-rich south pole. India’s ascent, unlike China’s, has not been accompanied by an increasingly assertive foreign policy. As India’s geopolitical, economic, and cultural clout grows, so does its global footprint. China’s ‘<a href="https://www.nytimes.com/2023/08/29/opinion/china-economy-decline.html">decline</a>’, as some have begun to call the conclusion of the country’s four-decade-long economic boom, opens new opportunities for the Indian economy and other developing and emerging countries. Earlier this year, India reached another milestone when its population officially <a href="https://www.un.org/development/desa/dpad/publication/un-desa-policy-brief-no-153-india-overtakes-china-as-the-worlds-most-populous-country/">surpassed that of China</a>, which had been the world’s most populous country for <a href="https://www.nytimes.com/2023/04/19/world/asia/india-china-population.html">more than 300 years</a>. While China’s shrinking, <a href="https://www.scmp.com/economy/economic-indicators/article/3207047/china-population-2022-marks-first-population-decline-60-years">rapidly aging</a> population is likely to impede economic growth and may curtail its geopolitical ambitions, India – one of the world’s <a href="https://indbiz.gov.in/one-of-the-youngest-populations-in-the-world-indias-most-valuable-asset/">youngest</a> countries, with a <a href="https://www.worldometers.info/world-population/india-population/#:~:text=The%20population%20density%20in%20India,1%2C202%20people%20per%20mi2).&amp;text=The%20median%20age%20in%20India%20is%2028.4%20years.">median age of 28.2</a> – is poised to reap a huge demographic dividend. But the driving force behind India’s emergence as a major global power is its rapid economic growth. While India’s GDP is still smaller than China’s, the country is currently the world’s <a href="https://www.imf.org/en/Publications/WEO/Issues/2023/07/10/world-economic-outlook-update-july-2023">fastest-growing</a> major economy and is projected to account for <a href="https://t.co/SMFH21oTa0">12.9% of global growth</a> over the next five years, surpassing the United States’ 11.3% share.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231029081036_781e265ec0c9f72b3c2596697419554293b721f2c4e8c93b963d66e35f4aa3c1.jpg" data-media-id="editor_10" data-image-id="20231029081036_781e265ec0c9f72b3c2596697419554293b721f2c4e8c93b963d66e35f4aa3c1" data-rendition-name="original" width="696" height="477" loading="lazy" alt="India China graph NT"> </figure>  In addition to fueling a consumption boom, India’s youthful population is also driving innovation, as evidenced by the country’s world-class information economy and its recent moon landing, which the country managed to achieve despite a national space budget equivalent to <a href="https://www.wsj.com/world/asia/india-races-russia-to-be-first-to-land-on-moons-south-pole-ad5d9d05">roughly 6%</a> of what the US spends on space missions. Having already surpassed the United Kingdom, its former colonial ruler, India’s GDP is poised to <a href="https://www.cnbc.com/2022/12/01/india-to-leapfrog-to-third-largest-economy-by-2030.html">overtake</a> that of Japan and Germany to become the world’s third-largest economy by 2030, behind the US and China. Given its increasingly unstable neighborhood, it should come as no surprise that India has the world’s <a href="https://www.sipri.org/media/press-release/2022/world-military-expenditure-passes-2-trillion-first-time">third-largest</a> defense budget. The deepening <a href="https://asia.nikkei.com/Opinion/Pakistan-China-and-terrorism">strategic alliance</a> between China and Pakistan underscores India’s precarious position as the only country bordering two nuclear-armed <a href="https://www.project-syndicate.org/commentary/pakistan-becoming-chinese-client-state-by-brahma-chellaney-2016-05?">revisionist states</a> with expansionist ambitions. Moreover, for the past three years, India has been locked in a tense <a href="https://www.project-syndicate.org/commentary/china-cannot-win-india-himalayan-border-dispute-by-brahma-chellaney-2023-04">military standoff</a> with China along its Himalayan border. Bilateral relations, marked by <a href="https://www.washingtonpost.com/world/2022/12/12/india-china-arunachal-border/">intermittent clashes</a> in the disputed Tibet-Ladakh border region, are at their lowest point in decades. By confronting China despite the risk of a full-scale war, India has challenged Chinese power in a way no other country has done in this century. But despite leaning toward forging closer ties with the West, India remains hesitant to enter into formal military alliances with Western countries. Western powers are partly to blame. US President <a href="https://www.project-syndicate.org/columnist/joseph-biden-jr">Joe Biden</a>’s reluctance to comment on the Sino-Indian military standoff, let alone openly support India, has sent a clear signal that India is responsible for its own defense. Given that the country’s future growth hinges on its ability to defend itself against external threats, India will likely step up its efforts to modernize its conventional armed forces and enhance its nuclear deterrence. The escalating geopolitical rivalry between China and India could also impede efforts to unite the Global South and transform the BRICS group into a credible alternative to the G20 and G7. The BRICS countries (Brazil, Russia, India, China, and South Africa) recently agreed to expand the group by adding <a href="https://www.thepresidency.gov.za/content/xv-brics-summit-johannesburg-ii-declaration-24-august-2023">six new members</a>: Saudi Arabia, the United Arab Emirates, Egypt, Ethiopia, Argentina, and Iran. Given the 11 members’ divergent interests, BRICS+ will likely find it even harder to reach consensus on any major issue.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231029081040_43ee34df0da045fc9466deb8642e67e778412c7494d5aa1275da28fc08e002e9.jpg" data-media-id="editor_20" data-image-id="20231029081040_43ee34df0da045fc9466deb8642e67e778412c7494d5aa1275da28fc08e002e9" data-rendition-name="original" width="599" height="402" loading="lazy" alt="India China NT 2"> </figure>  Meanwhile, China’s economic slump could prompt President Xi Jinping to double down on his expansionist agenda. Biden recently <a href="https://www.nytimes.com/2023/08/11/us/politics/biden-china-criticism-economy.html">characterized</a> the stagnating Chinese economy as a “ticking time bomb,” warning that, “When bad folks have problems, they do bad things.” China’s controversial <a href="https://twitter.com/globaltimesnews/status/1696104724691570945">new national map</a>, which depicts vast areas of India, Malaysia, the Philippines, Vietnam, Taiwan, and Bhutan (and even a bit of Russia) as Chinese territory, underscores the threat posed by China’s increasingly aggressive behavior. In addition to these external threats, India’s future will be shaped by its response to domestic economic challenges. Prime Minister Narendra Modi has made <a href="https://www.nytimes.com/2014/10/12/world/asia/in-india-government-tracks-its-own.html">great strides</a> in modernizing the notoriously outdated Indian bureaucracy and promoting e-government to reduce red tape and attract foreign direct investment. His government has invested heavily in upgrading and expanding the country’s infrastructure, implemented regulatory reforms, and sought to boost domestic manufacturing through Modi’s <a href="https://mea.gov.in/Images/attach/Make_in_India_Initiative.pdf">“Make in India” initiative</a>. But to transform itself into a global manufacturing hub, India must invest in human capital, particularly in <a href="https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp012202">education and training</a>. Moreover, India’s size and diversity also pose enormous challenges. India may be the first developing economy that, from the beginning, has pursued modernization and prosperity through a democratic system. But as one of the world’s most culturally diverse countries, its seemingly never-ending election cycle has often fueled division and polarization. But, despite its <a href="https://www.washingtonpost.com/world/asia_pacific/divided-families-and-tense-silences-us-style-polarization-arrives-in-india/2019/05/18/734bfdc6-5bb3-11e9-98d4-844088d135f2_story.html">US-style polarized politics</a>, India’s democratic framework has served as a pillar of stability. By fostering open expression and dialogue, the Indian political system has empowered grassroots communities and individuals, enabling members of historically marginalized classes and castes to rise to the highest levels of policymaking. Whether India can maintain its current upward trajectory will depend on its ability to maintain political stability, rapid economic growth, domestic and external security, and a forward-looking foreign policy. Success would enhance India’s <a href="https://www.project-syndicate.org/commentary/india-us-china-balance-of-power-without-formal-alliance-by-joseph-s-nye-2023-06">global standing</a> and help advance <a href="https://www.wsj.com/articles/can-india-emerge-as-a-rival-to-china-manufacturing-population-it-investment-trade-youth-regulatory-reform-11673895652?mod=opinion_featst_pos2">US interests</a> in the Indo-Pacific, the world’s new geopolitical fulcrum and home to its fastest-growing economies.&nbsp; © Project Syndicate Brahma Chellaney is Professor of Strategic Studies at the Center for Policy Research, New Delhi and Fellow at the Robert Bosch Academy in Berlin. His book <a href="https://press.georgetown.edu/Book/Water">Water: Asia’s New Battleground</a> (Georgetown University Press, 2011) for which he won the 2012 <a href="https://asiasociety.org/media/press-releases/brahma-chellaney%E2%80%99s-water-asia%E2%80%99s-new-battleground-wins-2012-asia-society-bernard">Asia Society Bernard Schwartz Book Award</a>.

India’s quiet rise

Fenerbahçe Beko won the Turkish Airlines EuroLeague finals in Abu Dhabi, held 23-25 May, defeating Monaco 81-70 in the final. Olympiacos, who defeated Panathinaikos 97-93, finished the series in third place. The Most Valuable Player (MVP) of the final match, Nigel Hayes-Davis from Fenerbahçe Beko, received a prize of 1,000,000 Miles&amp;Smiles from Turkish Airlines’ Chief Commercial Officer Ahmet Olmuştur. The carrier has been the title sponsor of the Turkish Airlines EuroLeague, a top tier tournament, since 2010.

Turkish Basketball

Thousands of Nepali students dreaming of an American education have been forced to look elsewhere as the Trump administration’s visa restrictions make their future uncertain.
The US was long considered a top destination for higher studies, making Nepal the 10th biggest country of origin for international students in America.&nbsp;
However, that number has seen a significant decline with the total for Nepali students now at 16,482. Some 8,000 Nepali students obtained no-objection certificates to study in the US from the Ministry of Education in the past year.&nbsp;
India, Australia, Canada, South Korea, United Kingdom and Japan are the other popular destinations for Nepali students. There are no clear numbers for Nepalis going to India, but a slight decline was noted this year after the deaths of two female students.
The US State Department has issued a circular to its embassies not to issue new visas to applicants until further notice. US Secretary of State Marco Rubio in the directive stated that the department planned to expand the screening of applicants' social media.&nbsp;
While new applicants are barred including those applying for visitor visas, students with scheduled interviews are allowed to proceed.
“Many of our students are affected by the new restrictions, but those who had applied for student visas earlier have got interview dates,” one Kathmandu-based college counsellor told us.
Meanwhile, even foreign students with spotless records already in the US have not been spared, as visa scrutiny intensifies under the new policy. In a move that underscores the growing sense of insecurity, many US colleges advised international students to carry their passports and documents at all times, even when traveling locally.
“Me and my friends did not go home this summer because we were not sure we would be allowed back, so we just went to Niagara Falls,” said a Nepali undergrad in Ohio, who like many interviewed for this report did not want her name used for fear of repercussion.
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Nepali students have adopted a cautious stance, with many choosing not to return home during summer vacation due to fear of visa revocations as well as travel bans. Meanwhile, over 7,000 Nepalis with Temporary Protected Status (TPS) will have to come back to Nepal by 5 August or face deportation. Thirty-seven were flown back to Kathmandu on Omni Air last week.
“The US is one of the most sought-after destinations for higher education, and the ban will definitely impact bright students,” says Narottam Aryal of the King’s College in Kathmandu.
Indeed, Nepali undergraduates admitted into Ivy League colleges for the 2025 academic year have been asked to look for alternatives. The entire Fulbright Foreign Scholarships Board resigned on Wednesday citing interference from the Trump administration on the selection of this year’s cohort. Some Nepali students already on Fulbright scholarships have noted disruptions, delays and even cancellation of stipends.&nbsp;
The student visa restrictions were initially just for foreign students admitted to Harvard University, but it was later extended to all Chinese students and now to all students. Universities like Columbia which actively recruit foreign students, face sharp enrolment declines, threatening their financial stability and diversity.
An Indian female PhD candidate at Columbia University had her visa revoked by the US State Department, and said she was targeted on the basis of her social media posts on Israeli military attacks in Gaza. Social media vetting of political activism has raised concerns about privacy and freedom of expression in a country where such rights were a given.
Many students have been informed via email that their visas have been revoked for getting speeding or parking tickets, but even others with no criminal record have been affected. The fear of deportation looms large amongst international students, including those from Nepal.&nbsp;
For most Nepalis who migrate to the US for education, the journey is a high-stakes investment. They come largely from middle-class families, often rely on a patchwork of scholarships, work-study programs, loans, or even the sale of family assets to afford fees.
Most Nepali students pursue STEM subjects which offer extended Optional Practical Training (OPT) periods that help fund their education. But with the US backsliding on education and humanitarian matters, countries like the UK and Canada are becoming more attractive despite their own recent stricter controls on student visas.&nbsp;
The UK universities saw a 63% rise in Nepali students’ admissions in 2024. Japan is another popular destination with 64,816 Nepali students enrolled as of 2024.
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Already, China, Hong Kong and Malaysia are poised to benefit from the increased scrutiny of US student visas. Several Hong Kong universities are offering unconditional admission to affected students, while Malaysian institutions are targeting previously US-bound Asian students. China and India have 330,000 and 280,000 students respectively in America, but the numbers for China have seen a sharp drop in the past year.
Elsewhere, branch campuses of American institutions such as NYU in Abu Dhabi, Georgetown in Dubai and Northwestern in Doha are getting more admission applications, and universities in the Gulf region are expanding infrastructure to accommodate those who would otherwise have gone to the US.&nbsp;
Even educational institutions in Nepal are hopeful that the US visa restrictions can be an opportunity to at least keep Nepali undergrads in Nepal, and also attract foreign students from the region.&nbsp;
“Many students might choose to complete their undergraduate degree here in Nepal and then move abroad for their Master’s degree later,” says Aryal of King’s College. “There was a need for quality higher education in Nepal anyway in terms of innovation and opportunities, so this could be the time to reduce our dependence on other countries.”
Nepal’s strategic position between India and China makes it sensitive to US policy shifts. India, a key ally, is also under US scrutiny for potential student travel restrictions. Chinese universities are already offering more scholarships to Nepali talent to capitalise on the US retreat.
American universities have challenged student visa restrictions in the courts. A federal court in Boston revoked the blanket ban on Harvard, and the State Department has ordered the resumption of processing student and exchange visitor visas.&nbsp;
Some are still hoping that President Trump will backtrack on the student visa restrictions, just like he has done with many of his more drastic executive orders.
Even so, the visa see-saw and longer-term uncertainties about living in the United States and its education system means students across the world are making alternative plans.
Says Aryal: “Policies of foreign countries change according to their needs, so excessive dependence was never a good idea. We should work to create different opportunities and choices of higher education within Nepal, so students are retained.” &nbsp;

America no longer prime destination for Nepali students

While Nepal was hosting the Sagarmatha Sambaad international climate conference in Kathmandu this month, on Mt Everest it was pretty much business as usual.&nbsp; The signs of climate breakdown are all there: a river now runs through Base Camp in summer, the Khumbu Icefall is more unstable, and there are more &nbsp;frequent avalanches. When expeditions arrived in March, the mountains were bare: it had not snowed since September, but then blizzards dumped unseasonal snow in May. And despite climate worries, such is the pull of Himalayan mountaineering that the Everest Industry showed no signs of slowdown. More than 600 international climbers and their Nepali guides had made it to the summit of the world’s highest mountain. At one point there were an estimated 2,000 people in the tent city on the Khumbu Glacier. All the ropes and ladders on the Icefall came down on Thursday, marking the official end of the spring climbing season, and just in time to avoid a monsoon cyclone approaching from the Bay of Bengal. It has been an action-packed season. One factor could be that Everest fees will go up from September: each foreign climber needs to pay a $15,000 royalty, up from the present $11,000. The cost for a Nepali climber on the South Col route will also go up: from Rs75,000 to Rs150,000.&nbsp; The fee to climb Everest in autumn is $7,500 (up from $5,500), but most climbers still prefer spring. Winter permit fee (December-February) is only $3,750 per person and the mountain is now also open for monsoon (June-August) climbs, when the fee is ever lower at $2,750. The revised rule also makes it mandatory for every two climbers on an 8,000m peak to hire one Nepali mountain guide.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025053004050_67f856fe52714e4bdcf21ae7d45c6f18c82117b9d0a5f73ed1efa04c96de1046.jpg" data-media-id="editor_0" data-image-id="2025053004050_67f856fe52714e4bdcf21ae7d45c6f18c82117b9d0a5f73ed1efa04c96de1046" data-rendition-name="original" width="931" height="732" loading="lazy" alt="The Everest Industry graph 1"> </figure>  In addition, climbers also have to pay for porters and guides, equipment, Base Camp costs, Ice Fall and fixed rope team fees, so climbing Everest does not come cheap. But such is the draw of climbing the world’s highest peak that some say the increased fees will not diminish the crowds next year. The government has tried to spread expeditions out to other seasons and other 8,000ers, but with not much success. Earlier this year, Nepal unilaterally increased the number of 8,000m peaks to 14 by adding six more sub-summits to broaden the choice for climbers. Added were: Yalung Kang (8,505m), Yalung Kang West (8,077m) &nbsp;Kangchenjunga Central (8,473m), Kangchenjunga South (8,476m), Lhotse Middle (8,410m) and Lhotse Shar (8,400m).&nbsp; The announcement could go against the accepted topographic criteria that a stand alone peak has to be at least 300m higher than an adjoining prominence, and at more than 3km isolation from it. The UIAA (Union Internationale des Associations d'Alpinisme) still recognises only 14 mountains as eight-thousanders, and only eight of those are in Nepal, or on the border with China. Nepal’s revised mountaineering regulations also increased the insurance coverage of high-altitude workers to protect porters and high altitude guides who usually take more risks on the mountains. Rescue teams and clean-up campaigners to collect trash and remove bodies of dead climbers up to Camp IV of Mt Everest do not need permits.&nbsp; The Sagarmatha Pollution Control Committee is now using drones to fly down trash in 20kg sacks. Each climber is also required to bring down at least 6kg of waste and not just their own, but this rule is erratically enforced. With five fatalities on Everest and Lhotse, Spring 2025 had a historically low death toll. Another five climbers died on Annapurna, Kangchenjunga and Makalu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025053004050_38681de22f0fefb6faa12b01755566d09c5064d0ff84e12ccc7b5d68ea9ba38a.jpg" data-media-id="editor_1" data-image-id="2025053004050_38681de22f0fefb6faa12b01755566d09c5064d0ff84e12ccc7b5d68ea9ba38a" data-rendition-name="original" width="665" height="740" loading="lazy" alt="The Everest industry graph 2"> </figure>  Journalist Ben Ayers who ran the Everest Live social media channel from Everest Base Camp with daily updates credited the low death rate to dramatic rescues of climbers from the ‘Death Zone’ by their Nepali guides and longline helievacs — the visuals all uploaded on YouTube.&nbsp; “Ironically, this perception of safety is bringing more and more inexperienced climbers to the mountain, and they need more rescues,” Ayers said in one of his dispatches.&nbsp; American expedition chronicler and summiteer Alan Arnette suspects there is a lot of under-reporting given that the jet stream and storms were lashing Everest even till late in the season. He told us: “I heard a lot about frostbite and rescues that were not made public. It’s become practically impossible to cover the details on Everest. All the teams report nice news, and they don’t talk about bad stuff to avoid hurting businesses.” Although trash on Nepal’s mountains makes headlines, what does not receive as much attention is the climate impact of so many expeditions. The Sagarmatha Sambaad conference sidestepped this issue, which is ironic given that the impact of climate breakdown is most evident on Himalayan peaks and their glaciers.&nbsp; <h2>Need for Speed</h2> The big stories this year have been about speed-running from their home cities to the top of Everest. Ukrainian entrepreneur Andrew Ushakov flew out of JFK on 15 May at 10:15AM Nepal time, and was on the summit 3 days, 23 hours, and 7 minutes later on 19 May at 9:22AM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250601080640_1c5cc6fc991307861768f07037ed9d30930fb20f35dbb57dc31c9a92a9e1a885.jpg" data-media-id="editor_2" data-image-id="20250601080640_1c5cc6fc991307861768f07037ed9d30930fb20f35dbb57dc31c9a92a9e1a885" data-rendition-name="original" width="1440" height="1800" loading="lazy" alt="The Everest Industry"> <figcaption>Andrew Ushakov at the summt. Photo: ELITE EXPED</figcaption> </figure>  “I could never find the time for the traditional 40-50 days of acclimatisation,” Ushakov explained matter-of-factly. His ‘Everest Sea-to-Summit’ climb was possible because he spent 400 hours in hypoxic sleep tents over the past four years in New York. However, Ushakov did use ropes already fixed, hired four Nepali guides, helicoptered to Base Camp, and used much more oxygen than an average climber. And after the climb, Ushakov was arrested at Kathmandu airport for being in possession of $20,000 of undeclared cash and spent a night in jail and fined $60,000.&nbsp; The other speedsters were Garth Miller, Alastair Cairns, Anthony Stazicker, and Kev Godlington, all former British Army commandos. They left London and summited five days later on 21 May, and flew right back. They also used hypoxic tents to simulate the thin air high on Everest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250601080644_90c8dd5cc07b4b43f2989b1dc0c0650ab80f10ebb06680c25a6909c519957bd8.jpg" data-media-id="editor_3" data-image-id="20250601080644_90c8dd5cc07b4b43f2989b1dc0c0650ab80f10ebb06680c25a6909c519957bd8" data-rendition-name="original" width="810" height="668" loading="lazy" alt="The Everest Industry "> <figcaption>All four members of the Furtenbach team at the summit. Photo: Sandro Gromen-Hayes</figcaption> </figure>  But more controversial was their use of xenon gas therapy in a German hospital to ramp up the production of oxygen-carrying haemoglobins in their blood. Xenon is banned by the World Anti-Doping Agency for being performance enhancing in sports. Expedition leader Lukas Furtenbach said this rule does not apply to mountaineering, as it is not a regulated sport like swimming. Nepal has no rules about xenon, but the Department of Tourism said it was launching an ‘investigation’ to decide on future policy since it is difficult to ban xenon, but allow oxygen. The controversy has also divided the mountaineering community, with some climbers saying they just want to maximise their chances of survival. Spending less time on the mountain could make climbing safer by reducing avalanche risk. It would also mean less trash on the mountains, but it would reduce the income of Nepal’s expedition industry. It is also unclear how much of the success was due to xenon therapy and whether the ex-special forces were already in good physical shape.&nbsp; The need for speed hides the fact that climbing in the Himalaya is dangerous business, and climbers cannot sprint to the top just by huffing xenon. But ultra-fast climbs could be charged more, and the revenue generated can be used to establish state-of-the-art rescue operations, and increase pay and insurance for guides. Two other speed chasers this season were Swiss-Ecuadorian Karl Egloff and American Tyler Andrews, both on Everest without oxygen. Andrews choppered to Base Camp to catch a weather window, but turned back from 8,500m due to high winds. Heavy snow and wind also forced Egloff to descend from 7,000m. Slow and steady climbers like Anja Blacha from Germany did make it to the summit without oxygen, while Kami Rita Sherpa broke his own record with his 31st Everest summit as he led a 26-strong Indian Army group. There were 468 permits issued for foreign climbers from 48 expeditions to Everest this spring. Nepal’s other eight-thousanders together had only 17 expeditions. Nepal has more than 1,000 peaks above 6,000m, and has opened only 476 of them for climbing.&nbsp;

The Everest Industry

While Nepal marked <a href="https://nepalitimes.com/news/mt-everest-pvt-ltd">Mt Everest</a> Day on 29 May, on the other side of the planet in the US state of Colorado dozens of Nepalis who have climbed the world’s highest peak multiple times were busy working as chefs and Uber drivers. Among them is Nima Doma Sherpa, who climbed Mt Everest in 2019 after her husband Tshering Wangchu was among 16 crushed by an avalanche on <a href="https://nepalitimes.com/banner/on-thin-ice-in-the-khumbu">the Khumbu Icefall</a> five years earlier. A large serac broke off the West Shoulder of <a href="https://nepalitimes.com/news/the-everest-industry">Mt Everest </a>and fell directly on a group of <a href="https://nepalitimes.com/opinion/more-porters-sick-on-everest-trail">porters and guides</a> making their way up the Icefall at 5,800m. Their bodies were flown by helicopter to Khumjung where Tshering Wangchu was born. He was excited about climbing Mt Everest for the first time.&nbsp; In Khumjung, Nima Doma felt like her own life had also ended. This was the kind of news Sherpa wives, mothers and sisters dreaded every <a href="https://nepalitimes.com/here-now/peak-climbing-season-2025-s4abrxny">mountaineering season</a>. She stayed home for more than two years grieving, but ultimately gathered up all her emotional strength to take care of her 6-year-old son and 3-year-old daughter. Nima had grown up in Khumjung hearing <a href="https://nepalitimes.com/review/stories-of-nepal-s-summiteers">tales of adventure on the mountains </a>from their father, Ang Chubi Sherpa who had climbed Everest in 1993. He used to bring her and her sisters and brother European chocolates after every expedition, and used to tell them that the chocolate bars grew on the mountains. “It was only after we got older did we realise that he told us that chocolates grew in the mountains so we would not worry about him putting himself in harm's way,” Nima Doma recalled with a faraway look at her home in Boulder this week. Nima went to the school that <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/commemorating-edmund-hillary-in-nepal,4145">Edmund Hillary</a> opened in Khumjung till Grade 8, and then dropped out to help in the kitchen and <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">tend yaks</a>. She was married off to Tshering Wangchu, who was also a high altitude guide. When Tshering went on expeditions, Nima also started working as a porter from Namche to Base Camp. It was perhaps her father’s tales of mountains of chocolates that had always attracted her to <a href="https://nepalitimes.com/here-now/knowing-our-mountains-43v4iyvo">the peaks</a>. After her husband was killed ten years ago this month, being a widow with children was not easy for Nima Doma. But she was not alone: there were at least 200 single mothers in <a href="https://nepalitimes.com/here-now/khumbu-since-1950-jaww4qn0">the Khumbu</a>, and 20 of them just in Khumjung whose husbands had been killed in <a href="https://archive.nepalitimes.com/article/nation/tragic-start-to-himalayan-spring-nepal,3695">mountaineering accidents</a>. Some were not even 20 years old, and had children growing up without fathers. But there were also women in the 50s whose husbands had been killed in the 1980s. Nima found sponsors for her children’s education, and moved to Kathmandu. In the capital, Sherpa widows used to meet to help each other. Some of them had joined the Nepal Mountaineering Association (NMA) training for rock and ice climbing. “I decided that it was no use sitting home and crying anymore, after meeting other single mothers I felt less alone,” remembers Nima, who joined the Juniper Foundation and enrolled in an NMA training camp in Manang. There she climbed Chulu East (6,584m) and met Furadiki Sherpa, whose rope-fixing husband had also been <a href="https://nepalitimes.com/news/on-mt-everest-s-70th-records-and-fatalities">killed on Everest</a> in 2013. They set themselves the goal of climbing Everest one day, and started a fund-raising drive.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250530090544_621be0724b9182c8e3594b2c562a71ec32ac01d985a71d0cf31646de9d51e15a.png" data-media-id="editor_12" data-image-id="20250530090544_621be0724b9182c8e3594b2c562a71ec32ac01d985a71d0cf31646de9d51e15a" data-rendition-name="original" width="2678" height="1274" loading="lazy" alt="Everest summiteers find new life in the US"> </figure>  “We decided we had to overcome society’s stigma of <a href="https://archive.nepalitimes.com/article/nation/widows-personal-happiness-comes-last-in-face-of-social-financial-hardships,1855">widowhood</a> and prove that <a href="https://nepalitimes.com/here-now/remembering-junko-tabei">women could also climb mountains</a>,” Nima said, adding that she was inspired by Nepal’s first woman Everest summiteer Pasang Lhamu Sherpa, who died during her descent in 1993. Nima Doma and Furdiki climbed the technically-difficult Ama Dablam (6,812m) and then arrived at Everest Base Camp in April 2019 as part of their Two Widows Expedition with the motto, ‘So Can We’. While climbing up the Icefall Nima passed the spot where her husband had been killed. It was a jumble of constantly-shifting ice blocks bigger than houses. She closed her eyes and said a prayer. “I remember thinking, this is so difficult and dangerous. This is what my husband had to do to support our family,” Nima Doma said. “I was determined to fulfil my husband’s dream of climbing Chomolungma, and to prove to ourselves that we two women could do it.” It was 23 May 2019 when <a href="https://www.reuters.com/article/world/two-sherpa-widows-scale-everest-and-smash-stigma-idUSKCN1SU0MV/" target="_blank">Nima and Furdiki stepped on the summit</a> and looked over into Tibet, and down at Tengboche Monastery to the south.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250530090544_6b822582b5d88ba5e972db084f184690b40653c6efd9901b2dd082ffba2a263b.png" data-media-id="editor_16" data-image-id="20250530090544_6b822582b5d88ba5e972db084f184690b40653c6efd9901b2dd082ffba2a263b" data-rendition-name="original" width="2700" height="1522" loading="lazy" alt="Everest summiteers find new life in the US"> </figure>  Nima Doma hugged Furdiki, took off her mask and wept. But for the first time in five years, it was not from grief but relief — relief for being free of all the sadness and sacrifices and for fulfilling her husband’s dream. They had found <a href="https://nepalitimes.com/here-now/life-after-death">life after death</a>. “I felt this immense joy to be on top of the world, it was indescribable,” Nima Doma said, “I have wept only twice in my life. Once when my husband died, and once there on top of Everest.” The tears had frozen on Nima Doma’s cheeks, as she and Furdiki headed back down the mountain.