Commerce, and Beyond
As part of his recent three nation tour Prime Minister Narendra Modi paid a state visit to Jordan on December 15 and 16. His host was Jordan’s monarch King Abdullah II ibn Al Hussein. The Joint Statement which issued on the outcome of the visit mentioned that both leaders noted that it took “place at a significant time, as the two countries celebrate the 75th anniversary of the establishment of bilateral diplomatic relations”.
India and Jordan took the opportunity provided by the visit to extensively focus on the development of their economic and commercial ties. These are currently largely marked by India’s import of fertilizers, especially phosphates, from Jordan. Secretary (South) Neena Malhotra, briefing the media on the results of the visit, said; “Companies on both sides are in discussion for further investment in Jordan to meet growing need for phosphatic fertilizers in India”. The challenge before both countries is to effectively take their bilateral economic and commercial ties beyond India’s imports of phosphatic fertilizers from Jordan.
In his address to the India-Jordan Business Council Modi mentioned some of the areas that business leaders should focus on to make the India-Jordan economic and commercial relationship more extensive. These are also contained in the Joint Statement. Modi mentioned that the two countries could meaningfully cooperate in Digital Public Infrastructure, pharmaceuticals and the health sector, agriculture, infrastructure and construction, clean energy and automobiles. He emphasised that the tourism sector held substantial potential. Modi also noted the Jordan’s place in affording connectivity possibilities to Indian entities in the region.
It will be a challenge for business leaders and officials of both countries to utilise the opportunities in the sectors Modi mentioned to achieve the target of US$ 5 billion annual trade. However, if the right efforts are made then the target is achievable.
Modi’s talks on India-Jordan commercial and economic interaction were important but it is inconceivable that he would not have exchanged views on the current regional situation with the Jordanian leadership. Jordan occupies a very significant location; it is Israel’s neighbour and is home to around 3 million Palestinian refugees in a population of around 12 million. Jordan was therefore deeply impacted by the Gaza war. The Joint Statement has a section on their current bilateral political relations but is silent regarding their views on the West Asia situation. This indicates that the two sides could not, in all likelihood, arrive at a formulation that was mutually acceptable. This impression is reinforced by Malhotra on reiterating only the Indian position on Gaza in her media briefing. She said “Regarding Gaza, you know our position on Gaza. We have welcomed the Gaza Peace Plan and we are happy that the first phase is in force, and we hope that it brings lasting peace to the region. We also participated at the Sharm El-Sheikh conference. We have a longstanding position. We support Palestine issue and we support efforts towards just and durable peace. Anything that builds or contributes towards building just and durable peace in the region, we support those efforts”.
Jordan was deeply disturbed at the Israeli response to the horror of Hamas’s October 7, 2023 attack on Israel which caused 1200 deaths and around 250 persons were taken as hostages to Gaza. Israel reduced Gaza to a rubble and killed around 70000 men, women and children. Queen Rania of Jordan was quoted in the media as saying, “You know what it’s like to be a parent over the last two years? To watch your children suffering, starving, shaking in terror, and to be powerless to do anything about it, and to know that the whole world is watching and not to do anything about it. That nightmare, it’s the nightmare of any parent, but that nightmare has been the daily reality for Palestinians for the last two years”. On his part the King has rejected the idea of Jordan sending a peace keeping contingent as part of an international force in Gaza. This is envisaged as a second step of the Gaza Peace Plan.
Currently, the first phase of the Plan is more or less working but the Palestinians’ situation is still grave. A recent report in a reliable western news organisation noted “Israeli forces remain in control of more than half of the Gaza Strip. Hamas has largely re-established itself in the remainder of the territory”. Though the remains of one Israeli policeman who was taken hostage is still to be located and returned to Israel, Israel seems confident that Phase 2 of the plan will begin soon. This phase envisages that Hamas agrees to abandon any role in Gaza which will be governed by a technocratic authority reporting to an international board. The plan also requires an International Stabilization Force which will police Gaza. And, as the situation stabilizes Israel will begin to withdraw its forces until them remain only in a security perimeter around the strip.
Will the second phase go in accordance to plan? It is difficult to conceive that Hamas will be willing to go into oblivion especially as it is known that it has been able to replace a large number of its cadres. Hence, scepticism about the next step of the plan is not entirely misplaced. However, for the sake of the Palestinians it can only be hoped that peace returns to Gaza.
Ultimately, the only permanent solution lies in a two-state solution but, truth be told, Israel is simply not been willing for it.