India's first policy change in 16 years: country open to foreign assistance, willing to buy from China

In a major policy change in 16 years, India has begun accepting gifts, donations, and assistance from other countries as the country grapples with a huge shortage of oxygen, medicines, and associated equipment as a result of an increase in Covid cases.

This move has been signalled by two other shifts in approach. According to a source, India now has “no conceptual problem” procuring oxygen-related equipment and life-saving medicines from China, and New Delhi has yet to decide whether or not to accept assistance from Pakistan, but it is unlikely to do so. Besides, state governments are also free to procure these life-saving devices and medicines from foreign agencies, and the Central government will not come in the way.

All these three elements add up to a significant change in New Delhi’s strategy, which usually stresses self-reliance and its emerging-power image. It’s a marked change from the policy of the last 16 years since the UPA government under Manmohan Singh decided to not accept aid from foreign sources.

Until then, India had accepted aid from foreign governments — Uttarkashi earthquake (1991), Latur earthquake (1993), Gujarat earthquake (2001), Bengal cyclone (2002) and Bihar floods (July 2004).

“We feel that we can cope with the situation on our own,” then-Prime Minister Manmohan Singh popularly stated after the December 2004 tsunami, “and we will take their support if needed.” For India's disaster relief programme, it was a "watershed moment."

After the Uttarakhand floods in 2013, the Kashmir earthquake in 2005, and the Kashmir floods in 2014, India has declined foreign assistance for the past 16 years.

When the state government announced in August 2018 that the UAE had provided Rs 700 crore in flood relief in the aftermath of the Kerala floods, the Centre ruled out any foreign assistance and stated that it would meet the state's needs for relief and reconstruction through "domestic efforts." This stance had sparked a big spat between the federal government and the state government.

More than 20 countries have offered assistance to India so far, ranging from neighbours to major powers. Bhutan will have oxygen, but the United States is expected to share AstraZeneca vaccines next month.

France, Germany, Ireland, Russia, Belgium, Romania, Luxembourg, Portugal, Sweden, Australia, Bhutan, Singapore, Saudi Arabia, Hong Kong, Thailand, Finland, Switzerland, Norway, Italy, US, UK, and the United Arab Emirates are among the countries sending aid.

Last year, India signalled this change by deciding to allow donations to the newly formed PM-CARES fund from people from all over the world, regardless of nationality.

”On the other hand, New Delhi refuses to accept the shift in strategy, claiming that these are not donations or assistance. They say that India has made no “appeal” for assistance and that these are procurement decisions. “We embrace it with appreciation if any governments or private organisations want to donate as a gift,” a source said.

According to reports, the Indian government is requesting donations to the Indian Red Cross Society from all foreign governments and agencies, after which an Empowered Group will decide how to send them forward.

As per sources, these gifts and contributions from foreign governments are in exchange for the emergency medical supplies — ranging from hydroxychloroquine to vaccinations — that India provided. More than 80 countries received around 6.5 crore vaccines from India.

Given that the two countries have been at odds over the border standoff, New Delhi's subtle shift in approach to obtaining emergency supplies from China, notably oxygen-related devices, is important.

Sun Weidong, the Chinese Ambassador to India, announced that India will receive 25,000 oxygen concentrators. “Medical suppliers in China are working overtime to fulfil orders from India. In the last few days, at least 25,000 orders for oxygen concentrators have been placed. Health supplies will be transported by cargo aircraft. “Related processes will be facilitated by Chinese customs,” the envoy tweeted.

According to sources in New Delhi, procurement is taking place in China, and there is "no conceptual issue."