India open to foreign aid, first Policy change in 16 years

Apr29,2021 #Covid 19 #Foreign Aid #India #Policy
Money Cash Law Insider

Kareena Eugene

India has now started accepting donations and aids, and gifts from foreign nations as the country goes through massive shortage of oxygen, drugs and related equipment amid the increase, at an alarming rate, in COVID cases. It marks a major shift in the policy in 16 years.

Marking this shift are two other changes that have happened. Sources say that, India has “no conceptual problem” in procuring oxygen related equipment and life saving drugs from China.

Adding to it, New Delhi has still not decided whether to accept aid from Pakistan, although it is said it is unlikely to accept. The State Governments are also free in procuring these medicines and, the Central Government will not be coming in its way.

All the three elements of change add up to New Delhi’s new strategy, which mainly relies on self-reliance and its own emerging power image. It’s a marked change since the UPA Government under Manmohan Singh decided to not accept any aid from foreign sources.

Before such a policy, India had accepted aid from foreign Governments for the Uttarkashi earthquake in 1991, Latur earthquake in 1993, Gujarat earthquake in 2011, Bengal cyclone in 2002 and the Bihar floods in 2004.

The then Prime Minister Manmohan Singh, in the aftermath of the December 2004 tsunami, famously said, “We feel that we can cope up with the situation on our own and we will take their help if needed”. It was a “watershed moment” for India’s disaster aid policy.

More than 20 countries have offered help so far. While Bhutan will provide oxygen and the US is likely to share AstraZeneca vaccines by next month.

The countries that are sending support are the US, UK, France, Germany, Russia, Ireland, Belgium, Romania, Luxembourg, Portugal, Sweden, Australia, Bhutan, Singapore, Saudi Arabia, Hong Kong, Thailand, Finland, Switzerland, Norway, Italy and the UAE.

However, New Delhi did not acknowledge the change in approach with sources pointing out that these are not donations or aid.

The foreign sources contributing said that India had not made an “appeal” for help and that these are procurement decisions. A source said, “If some governments or private entities want to donate as a gift, we accept it with gratitude,”.

The Indian Government has asked all the foreign Governments and agencies providing, to donate to the Indian Red Cross Society. After this, an Empowered Group will take the call on how to send them forward.

It is also said that, these donations are coming as a ‘return of favour’ for the emergency medical supplies (from Hydro-chloroquine to vaccines) that India had sent to them. India had sent about 6.5 crore vaccines to more than 80 countries.

New Delhi’s subtle change in approach to procure emergency supplies for China, especially oxygen-related devices, is quite significant considering the border standoff between the two countries.

India will be supplied 25,000 oxygen concentrators, as confirmed by the Chinese Ambassador to India Sun Weidong. The envoy tweeted “Chinese medical suppliers are working overtime on orders from India. At least 25,000 orders for oxygen concentrators in recent days. Cargo planes are under plan for medical supplies. Chinese customs will facilitate relevant processes,”.

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