THE BJP-Sangh Parivar led Narendra Modi government at the centre during its eight months of rule has single handedly accelerated, even completely cemented, the integration of Indian monopoly capitalism with the imperialist centres of finance-capital of the developed industrialised countries. The process of integration of India with global finance-capital needs to be properly contextualised to substantiate the argument that Modi has taken the process to its logical end by enthusiastically pursuing public policies during the eight months of his rule which has clearly brought India under the complete shadow of global finance-capital and transnational capitalism of the developed centres of global capitalism. The process of opening of the Indian national market to foreign capital investors had begun in 1990 under the leadership of prime minister P V Narasimha Rao and finance minister Manmohan Singh. The Rao-Manmohan model of free market economy commonly described as the system of liberalisation, globalisation and privatisation was a complete rupture with the post-independence model of State-led planned development on the basis of self-reliance, import substitution system of industrialisation. The model of self-reliance economic development was followed by the ruling groups of the Indian State by safeguarding country’s relative autonomy. India never followed the policy of isolation while dealing with the international post-Second World War centres of power, on the contrary, India actively participated and interacted with the bipolar global bloc system on the basis of policies of non-alignment without becoming a camp follower of any of the global power bloc. The policy of non-alignment followed by India during post-independence period was promised on the belief that a sovereign state should take its own decisions by keeping in mind material interests as defined by its citizens. The policy of self-reliant economic development and foreign policy of non-alignment in power bloc politics were two sides of the same coin which protected national goal of autonomy of Indian State. Foreign aid was welcomed without political strings because it was considered a necessary ‘evil’ for development of a backward developing economy of an erstwhile colony and terms and conditions for receiving foreign aid for investments were negotiated by Indians with the aid-givers on the basis of equality, modality and priorities to be defined by the Indian Planning Commission.

This model of economics and politics which ensured autonomy of Indian public policy matters was completely abandoned in 1990 and it was replaced by the mode of free market economy and invitation to foreign transnational corporations and international funding institutions like the World Bank, the IMF, private investors and government funds for investment from capital surplus centres of capitalism. It is not only the old model of economic planning of market economy which was abandoned by Narasimha Rao-Manmohan Singh in 1990, the policy of non-alignment was also given farewell when the Rao government recognised the theocratic state of Israel essentially because Western centres of capitalism led by America wanted India to legitimise the Israeli Jewish state leaving behind the traditional friendship with Palestine which have been always a victim of Israeli aggression supported by America. It is not an accident that in 2015, beginning with 1990, India has integrated itself with Israeli defence production industry and has been lukewarm towards the Palestinians. It deserves to be mentioned here with great emphasis that during the eight months of prime ministership, Modi has travelled to every country except Arab countries from where oil supplies and remissions of Indians are eagerly awaited. It is Israel and not the Arab world which is the top priority of Modi and a fact which illustrates that the Indian State’s chief political executive is determined to make India, a zone of influence of western capitalism. President Barack Obama-Narendra Modi parleys in Delhi from January 25 to 27, 2015 have to be seen in this context with a rider that Modi himself is ideologically and politically committed to become a willing party for bringing India under the umbrella of global finance-capital. Three important documents issued at the meetings of Obama and Modi on January 26, provide a framework for substantiating the central argument that Modi government has willingly and voluntarily bid goodbye to ‘relative autonomy of the State’ of India.

The three documents are the Joint Statement, the US-India Joint Strategic union for the Asia-Pacific and Indian Ocean region and the Indo-US Declaration of Friendship. A clinical analysis of the main implications and meanings of these documents should begin with a statement that the Modi government has not only integrated Indian ‘economy’ with global capitalism, it has gone a step forward, for the first time, to integrate India’s ‘defence system’ with the Western industrialised capitalist countries by ‘opening’ defence production sector to private investors with Indian and foreign origin. The Manmohan Singh government vacillated on defence sector investment ceiling; the Modi government did not hesitate for a moment to raise the ceiling from 27 per cent to 49 per cent for private investors. It is for the opposition parties to expose the Modi government on any underhand understanding given to Obama on Nuclear Liability Act and other pernicious tie ups made by Modi with Obama. A great concern for Indians should be around serious implications of ‘Joint Strategic union for Asia-Pacific and Indian Ocean region’ because America has announced that it is ‘Rebalancing’ its Asia policy and Asia-Pacific is the “pivot” of future strategic alliances especially among the countries including the United States, Japan, Australia and also to involve India in this alliance. Obama observed on January 26, that ‘US can be India’s best partner’. China promptly reacted strongly on this Joint Statement on South China Sea disputes and urged that the ‘third parties do not get involved’. China went further on January 26 and bluntly warned India that Washington wants to put “neighbours against neighbours” and gave an advice to India not to fall in this ‘trap’ laid down by America.

Is Modi changing the objectives and context of foreign strategic policy by firmly allying with Asia-Pacific game plans of America along with Japan and Australia and is Modi trying to build this ‘alliance’ against an Asian country like China? It deserves to be clearly stated that the Sangh Parivar and its loyal product Narendra Modi have always considered ‘Muslim Pakistan’ and Communist China as opponents of India. Does Modi understand the changing dynamics of the second decade of twenty first century Asia and global strategic system? Why did China react strongly on January 26 against Obama-Modi Joint statement on Asia-Pacific and Indian Ocean region? Why army chief of Pakistan, Raheed Sharif did make a hurried visit to China for two days at the time when Obama was in Delhi? It is very easy to abandon the time tested foreign policy of non-alignment of India; it is dangerous to shift foreign strategic goals by allying with America and annoying neighbours like China and Pakistan. Does Modi understand that for the first time in post-Cold War phase of international relations, China and Russia are in the process of becoming strong allies and one of the goals of this powerful ‘alliance’ is to checkmate America in Asia? It is time that rights and freedom of maritime navigation in international water ways, seas and oceans should be guaranteed under International Law of Seas, however it does not mean that demand for freedom of navigation should lead to a collision course on South China Sea between India and China. The secular and democratic political parties have to be alert to the fact that Modi has not only abandoned foreign policy of non-alignment or abolished the Planning Commission by replacing it by Niti Aayog, he is pushing India towards a dangerous direction not only by integrating national economy with global finance-capital, he is determined to integrate India with imperialism by following foreign policy which is anti-China, anti-Pakistan and subservient to the United States of America.