• Latest
  • Trending
Laos: an extended neighbour of strategic importance

Laos: an extended neighbour of strategic importance

May 2, 2023
Hindu temple site in UAE

Diplomats from over 30 countries visit Hindu temple site in UAE

May 29, 2023
PM MODI

Entire planet counting on India-US ties: US Envoy

May 29, 2023
seed

Kaveri Seed looking at more exports to Africa, Asia

May 29, 2023
house of ming

Delhi-inspired ‘House of Ming’ Chinese restaurant in London

May 29, 2023
Foreign Portfolio Investors

FPIs invest Rs 37,316 crore in Indian equities in May

May 29, 2023
The statement of a new Parliament

New Parliament building to herald rise of developed India: PM

May 29, 2023
Photo credit ,min.of mines

Over 120 Start ups & 20 major industries to take part at maiden Mining StartUps Summit to be held on May 29 in Mumbai

May 29, 2023
indo-uk

UK to enhance science, innovation ties with India

May 27, 2023
Nepal PM Prachanda to embark

Nepal PM on 4-day India visit from May 31

May 27, 2023
medicine norms

Pharma industry should focus on quality to compete globally

May 27, 2023
Growth

India to be 4th largest economy in 2 yrs: Vaishnaw

May 27, 2023
The statement of a new Parliament

PM to inaugurate new Parliament building on May 28

May 27, 2023
  • Login
  • Register
Blitzindiamedia
Monday, May 29, 2023
Contact
e-paper
  • Economy
  • India
  • International
  • News
  • Legal
  • TheBlitz Special
  • Opinion
  • Social
  • G20 PODIUM
  • More
  • Videos
  • Hindi Edition
  • UK Edition
No Result
View All Result
  • Economy
  • India
  • International
  • News
  • Legal
  • TheBlitz Special
  • Opinion
  • Social
  • G20 PODIUM
  • More
  • Videos
  • Hindi Edition
  • UK Edition
No Result
View All Result
World first weekly chronicle of development news
No Result
View All Result

Laos: an extended neighbour of strategic importance

by Blitz India Media
May 2, 2023
in GLOBETROTTING
0
Laos: an extended neighbour of strategic importance
0
VIEWS


A Buddhist and Communist country, Laos acquires a very important place in India’s foreign policy due to India’s ‘Look and Act East’ policy. Though this small country of Southeast Asia is virtually sitting on the lap of China, India knows its strategic geographical importance among ASEAN countries.

A 500-strong Indian community in Laos has grown in profile over the years. It is primarily engaged in jewellery trade, restaurant and hotel industry, manufacturing, garments, mining, plantations and agarwood. A few members of the Indian community work for international organizations, multinationals, consulting organizations and private businesses. The ASEAN India Business Council (AIBC), based in Malaysia, has a Chapter in Laos.

YOU MAY ALSO LIKE

Queen’s Relics: A Bridge Of Faith

Bound by history

Laos is a part of India’s extended neighbourhood as only one country, Myanmar, separates Laos from India’s North-East. The distance from the Lao border with Myanmar in the North to Manipur border in India is less than 2,000 km. As the Indian presence grows and the Indians’ success stories become more pronounced, the India-Laos relations in multiple spheres are likely to grow. The views of both the countries converge on many issues of mutual interest in international forums. Laos supports India’s claim for a permanent membership of the UN Security Council. There have been many high-level visits between the two countries right from 1956 onwards and many important bi-lateral agreements signed thereafter.

The bilateral trade between India and Laos in 2018-19 was worth $ 40.42 million, including exports worth $39.38 million from India to Laos and imports worth $1.04 million from Laos to India. The major items of export from India to Laos were electrical machinery and equipment and motor vehicles/cars while the main items of import from Laos to India were plywood and allied products and shellac.

India has accorded Duty-Free Tariff Preference Scheme (DFTP) to Lao PDR. The scheme grants Laos dutyfree access to 94 per cent of India’s total tariff lines. India has supported development of Laos by extending Lines of Credit for infrastructure projects in the fields of transmission line, hydropower project, conversion of diesel to electric driven pump sets, and irrigation projects.

The Government of India has been providing nearly 120 scholarships annually to Lao nationals under various schemes. So far, under ITEC, it has trained about 1500 Lao nationals. The Centre for Excellence in Software Development and Training (CSEDT) was inaugurated in Vientiane on November 26, 2018. An MOU was signed with the Ministry of Information and Culture in May 2007 for the restoration of the Unesco World Heritage Site at Vat Phyu, an ancient Shiva Temple. The work on the project began in June 2009. Eight seasons of the restoration work in Phase-I were completed in May 2017. The Phase-II of the project commenced in November 2018 and was completed last year.

During the Covid-19 pandemic, Prime Minister Narendra Modi had a telephonic conversation with his counterpart Thongloun Sisoulith, the then Prime Minister of Lao PDR. The two leaders exchanged views on the health and economic challenges posed by the pandemic. Sisoulith commended the effective measures undertaken by the Government of India to contain the spread of the pandemic in the Lao PDR.

The Lao PM also thanked PM Modi for India’s support for Lao PDR’s development programmes, in capacity-building and for scholarships. A consignment of medicines and medical supplies gifted by India to Lao PDR was handed over to the Health Minister of Laos to support its fight against the panademic.

Three months back, a bilateral trade summit was held in New Delhi in which Laos Ambassador in India Bounneme Chouanghom thanked the Indian Government for supporting ITEC programmes.

Falling into Chinese debt trap?

The small ASEAN nation of Laos is in dire straits. With Chinese debt having crippled its economy, the country seems to be heading the Si Lankan way. As the cost of a US dollar shoots up to 15,000 Laotian kip, people have started wondering if Laos will fall into the Chinese debt trap, as Sri Lanka did only recently.

Though Laos is a Communist state and public dissent is unwelcome, the people of this Southeast Asian country are increasingly getting angry and frustrated with the state of affairs.

Oil shortages have begun hitting the country and long queues at fuel stations are now a common sight. Apart from its debt crisis, Laos’s currency, the kip, has begun to nosedive. Inflation is also soaring. By all counts, an economic storm is set to turn the country upside down. Around this time last year, the Lao kip was trading at about 9,430 per US dollar. Now, the purchase of one US dollar requires around 15,000 kip, a depreciation of over 40 per cent. Inflation numbers present an equally scary picture; the latest estimates peg it at 13 per cent.

The biggest concern for Laos continues to be its mounting public debt. Last year, it reached $14.5 billion, with about half of the amount owed to China alone. According to Nikkei Asia, Laos also owes 11 pc of its debt to China from bilateral loans. The World Bank says Laos’ foreign debt is estimated to be $1.3 billion.

Laos has chosen to remain aloof from global trade. While trade with the West is negligible, its only meaningful trade partners are China, Thailand and Vietnam. China has debt-trapped Laos while pretending to be its friend.

In 2020, for example, Laos ceded majority control of its electric grid to a Chinese company. The Chinese investment in Laos’ power, transport, a border economic zone and other projects totals over $16 billion. Prime Minister Phankham Viphavanh, it seems, has entered the game rather late. He has now shifted the Government’s entire focus towards saving Laos from an economic crisis. At the moment, though, the country’s problems seem insurmountable.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Our Visitor

023146

POPULAR NEWS

  • Rev Daaji with Sh Parshottam Rupala ji ,Member Rajya Sabha

    Following the guidance of the heart – the only way forward into future

    0 shares
    Share 0 Tweet 0
  • Scholar administrators are witness to an era

    0 shares
    Share 0 Tweet 0
  • Education with Best of the East and the West

    0 shares
    Share 0 Tweet 0
  • Grade 11 students from the Jamnabai Narsee School (JNS), Mumbai raise INR 57.69 L to support underprivileged students and their families with ration kits for a year.

    0 shares
    Share 0 Tweet 0
  • A corporate lawyer, visionary, who is promoting global prosperity & business

    0 shares
    Share 0 Tweet 0
World first weekly chronicle of development news

© 2023 Blitz India Media -BlitzIndia Building A New Nation

Navigate Site

  • About us
  • Contact
  • Videos
  • Team

Follow Us

No Result
View All Result
  • Home
  • Economy
  • News
  • Nation builder
  • Rising India
  • Multilateral
  • G20 podium
  • Globetrotting
  • New India
  • Social
  • Team
  • Download
  • Videos
  • UK Edition
  • Hindi

© 2023 Blitz India Media -BlitzIndia Building A New Nation

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In