Ties with China back on 'normal track', status quo likely with Pakistan till polls: Official sources

India's relations with China have returned to a "normal track" and there have been positive developments like Beijing giving market access to Indian products, but much is yet to be done in addressing the widening trade deficit, official sources said.

India's relationship with China was severely hit by the 73-day face-off between armies of the two countries at the strategically sensitive Doklam tri-juction in the Sikkim sector last year.The sources said the political relationship between the two neighbours has just not only been restored but heightened in the past one year.At the same time, they said India was seriously concerned over China's Belt and Road Initiative and the way international norms and standards in giving contracts under the project were being flouted .

The sources also said India expects China to walk the talk on the issue of giving market access to Indian products."The positive development is that relations with China have returned to the normal track," said an authoritative source, while summing up India's diplomatic engagement in 2018.Calling Indo-Pacific as a major area of India's interest, the sources said the country was keen to talk about it with China and the issue was likely to figure regularly in bilateral talks between the two nations.

They said there was no total unanimity between India and the US on all issues relating to the Indo-Pacific and that New Delhi wants all major powers to be engaged over key matters.Prime Minister Narendra Modi and Chinese President Xi Jinping have held bilateral meetings three times and held an informal summit in Wuhan this year, which the sources described as "unprecedented".They said the second informal summit between leadership of the two countries is likely to be held in the second half of 2019.

On partnerships with leading powers, the sources said India's ties with the US proceeded on a positive track, while "significant trust" has also been built with Russia.
The sources said the China-Pakistan Economic Corridor (CPEC) is a a direct challenge to India's sovereignty and territorial integrity and that it is for dual use, including for military purposes.India has been strongly opposing the CPEC, which is part of the BRI, as it passes through Pakistan-occupied-Kashmir.

On BRI, they said it should follow international norms, ensure transparency and most importantly, respect sovereignty and territorial integrity of countries.Though China has been saying that BRI will ensure economic benefit for the region, the sources said India feels it could destabilise the region.The sources said contracts are being awarded under the BRI flouting laid down international norms and rules which was a matter of great concern.

"You now have a situation where an entirely different set of rules have been put in place. Technical specifications and customs rules are being changed," a source said.They said the narrative on BRI is changing as some countries have started talking about the debt problem arising from the initiative.

Asked whether India would rethink on joining BRI if its concerns are addressed, the source said, "There is no change in our position. Hypothetically, if they were to address these concerns, how we would react is something I can't say." On market access to Indian products, the sources said some positive developments are taking place on allowing market access for certain agri products."We are seeing unblocking of applications and requests for market access for a number of our products, including Basmati and non-Basmati rice, sugar among others," said the source.

Bilateral trade between India and China rose by 18.63 per cent year-on-year and reached a historic high of USD 84.44 billion last year. However, the trade deficit continues to remain high at USD 51.75 billion in 2017.India has been voicing its concerns to China over the huge trade deficit for several years. Both sides have held several rounds of talks on the issue in the last few years. 

It is unlikely that there will be any major initiative to improve ties between India and Pakistan until Lok Sabha elections are held, official sources said Thursday. 

However, they did not "definitively" rule out any positive development. Last month, Pakistan Prime Minister Imran Khan, while calling for bettering ties between the two neighbours, had said that he waswilling to wait for New Delhi's response till general elections are held in India. The Lok Sabha polls are due in April-May.

Asked about the latest episode of harassment of staff at Indian High Commission in Islamabad, the sources said India is not contemplating scaling down its strength in mission.They said Pakistan is yet to grant gas connections to the new residential building of its mission in Islamabad despite repeated requests by India.

"Our diplomats are facing harassment on multiple counts. Our High Commission buildings and projects in Islamabad are stalled for last 10 years. We moved people in the High Commission building with no gas supply," said a source. They said furniture for new buildings are held up at the border and no telecom connections have been granted by Pakistan.

Recalling the "unprecedented levels" of harassment of officials of Indian mission in Islamabad earlier this year, the sources indicated that India had given a tit for tat response."That resulted in them backing of real fast," said a source.

On the Kartarpur corridor project, the sources said it was a cultural initiative and not a diplomatic or political one.They said Kartarpur corridor initiative does not mean India was going to open dialogue with Pakistan on larger issues.The corridor will connect Darbar Sahib in Pakistan's Kartarpur - the final resting place of Sikh faith's founder Guru Nanak Dev - with Dera Baba Nanak shrine in India's Gurdaspur district. Pakistan has been projecting the initiative as its major diplomatic coup. On Thursday, Pakistan described it as the "high point of diplomacy" for the Imran Khan government.