Try GOLD - Free
INDIA HAS BEEN REJECTING MEDIATION: FROM KASHMIR BILATERALISM TO TRUMP TARIFFS
The Business Guardian
|August 30, 2025
India's determination to keep foreign powers out of the Kashmir dispute was formalized after the 1971 war, when India's support for Bangladeshi independence led to the defeat and dismemberment of Pakistan.
-

that the Instrument of Accession made the territory part of India. Early attempts at internationalisation convinced Indian leaders that external involvement often created pressure on New Delhi rather than on Islamabad.
The Simla Agreement and bilateralism codified India's determination to keep foreign powers out of the Kashmir dispute was formalised after the 1971 war, when India's support for Bangladeshi independence led to the defeat and dismemberment of Pakistan.
At Simla in July 1972, Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto signed a treaty that converted the 1971 ceasefire line into the Line of Control and agreed that "the two countries are resolved to settle their differences by peaceful means through bilateral negotiations".
The Simla Agreement also stipulated that neither side would unilaterally alter the situation or seek outside intervention.
This clause became India's legal basis for rejecting third-party mediation; New Delhi has since cited Simla whenever foreign leaders or international organisations propose to intervene.
The Cold War pattern: Non-alignment vs. alliances
During the Cold War, the two South Asian neighbours pursued divergent external alignments.
Pakistan joined U.S.-backed pacts such as the Baghdad Pact and later became a conduit for the U.S.-China rapprochement and for American support to the Afghan mujahideen, while India championed non-alignment.
Yet India was not above seeking outside support when it suited its interests; the Soviet Union brokered the Tashkent Declaration after the 1965 war.
Still, the memory of the U.S. tilt toward Pakistan in 1971, when President Richard Nixon and his national security adviser Henry Kissinger dispatched the Seventh Fleet to the Bay of Bengal, hardened Indian scepticism.
This story is from the August 30, 2025 edition of The Business Guardian.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 9,500+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The Business Guardian
The Business Guardian
Two held with illegal cigarette consignment worth Rs 12.5 lakh in Delhi
The crime branch has busted a racket supplying cigarettes without the mandatory pictorial health warnings and arrested two men with a consignment worth around Rs 12.5 lakh, an official said on Wednesday.
1 min
September 18, 2025

The Business Guardian
Taiwan's GDP per capita tops Korea's, driven by TSMC and the AI boom
Yeh Chun-hsien, head of the National Development Council (NDC), on Wednesday attributed Taiwan>s forecast lead over South Korea in gross domestic product (GDP) per capita in 2025 to the success of Taiwan Semiconductor Manufacturing Co. (TSMC) and a boom in artificial intelligence applications, as per a report by Focus Taiwan.
2 mins
September 18, 2025
The Business Guardian
SBI divests of 13.18% stake in Yes Bank to Japan’s SMBC
State Bank of India (SBI) on Wednesday announced the successful completion of the divestment of a 13.18% (approximately) stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC), the state-owned lender said in astatement.
1 mins
September 18, 2025

The Business Guardian
FINALITY DEFERRED — WHY ENFORCEMENT AGENCY REMAINS THE ACHILLES’ HEEL OF INDIA’S ARBITRATION REGIME
Arbitration in India was meant to the justice on fast forward: nimble, discreet, final.
5 mins
September 18, 2025

The Business Guardian
NHAI may raise Rs 40,000 crore in FY26, above Rs 30,000 crore target: ICRA
Rating agency ICRA projects road monetisation at Rs. 35,000-40,000 crore in FY26 if the assets identified by the National Highways Authority of India (NHAI) are monetised in a timely manner.
1 mins
September 18, 2025
The Business Guardian
India’s exports likely to grow 6 per cent this year: Goyal
Union Commerce Minister Piyush Goyal on Wednesday expressed confidence that India’s exports would grow by around 6 per cent this year compared to the corresponding period in 2024.
1 mins
September 18, 2025

The Business Guardian
GST CUT TO 5% WILL MAKE RENEWABLES CHEAPER
India has cut GST on renewable energy equipment from 12% to 5%, making clean energy projects more affordable and accessible.
2 mins
September 18, 2025

The Business Guardian
SBI sells 13.18% stake in Yes Bank to Japan’s SMBC
State Bank of India (SBI) on Wednesday announced the successful completion of the divestment of a 13.18% (approximately) stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC), the state-owned lender said in a statement.
2 mins
September 18, 2025

The Business Guardian
EU lays out new tariffs and sanctions on Israel over war in Gaza
The European Union laid out Wednesday its toughest plan yet to pressure Israel to end the war in Gaza as Palestinians fled en masse from Israeli tanks, drones and troops pushing deeper into the coastal enclave ravaged by 23 months of war.
2 mins
September 18, 2025
The Business Guardian
Next-Gen GST reform: A boon for the Indian economy
The Government of India has taken the ‘Next-Gen GST reform’ under the able leadership of Prime Minister Narendra Modi, which is a path-breaking decision to condense the goods and services tax slabs and reduce and eliminate the tax rates on various products.
6 mins
September 18, 2025
Listen
Translate
Change font size