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Cash crunch hits cultural, economic diplomacy

MEA said that it had cut down the number of visits of distinguished personalities.

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At a time when prime minister Narendra Modi is keen to show the world India's financial might and soft power, persuasive approach to international relations, shortage of funds has forced the Ministry of External Affairs (MEA) to limit its cultural as well as economic diplomacy. As a result, the ministry had to shut down its cultural centres in Toronto, Abu Dhabi and a sub-centre in Lautoka (Fiji).

In a communication to the parliamentary standing committee, which scrutinised its grants, the MEA said that it had cut down the number of visits of distinguished personalities, deferred postings of directors of cultural centres and teachers of Hindi, Yoga, music and dance at many centres, apart from reducing the number of Indian Studies Chairs. The ministry attributed the move to meagre allocation of resources in the Budget. Against a demand of Rs250.48 crore, MEA has been allocated a budget of Rs192 crore for 2015-16.

The economic diplomacy too has been badly hit, with the Investment, Technology, Promotion (ITP) Division getting Rs5 crore to carry out its activities in 183 missions/posts abroad. The Division is also responsible for promotion and publicity of Modi's 'Make in India" campaign. Upset at the state of affairs, the 30-member parliamentary panel led by Congress MP and former UN diplomat Shashi Tharoor asked the government to make sufficient allocations in proportions to activities assigned to the ITP Division.

The ministry in a communication stated that between 2009 and 2013, India's soft power was unveiled abroad through the Indian Council for Cultural Relations (ICCR). But lack of funds has pushed it to limit its activities. It has been stated that the ministry was not looking at innovative ideas and new approaches including involving private parties.

MEA has now proposed setting up of such Chairs under PPP model. In a first, ICCR has entered into an MoU with EXIM Bank for a short-term Chair in Nigeria. It is also in discussion with universities in Germany, Sweden, Denmark, Canada and New Zealand.

The parliamentary panel said that the allocations were not in consonance with India's foreign policy. It said, "Moreover, the government should formulate a velar vision for expansion and consolidation of India's soft power and accordingly devise a strategy and prepare a blueprint with time lie for expansion of network of Indian cultural centres and their activities conducted therein."

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