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By:

Prithvi Asthana

20 August 2025 at 10:50:30 pm

Look at the state as a laboratory: Fadnavis

Maharashtra Chief Minister Devendra Fadnavis inaugurates the expo at the 'Global Fintech Fest 2026' at the Jio World Centre in Mumbai on Wednesday. Pic: PTI Mumbai: Chief Minister Devendra Fadnavis on Wednesday announced that the state will implement the new DELTA Act in the field of tokenisation. He said that Maharashtra will be the first state in India to create a legislative framework for tokenisation. Fadnavis was addressing the Global Fintech Fest 2026. He said, “Maharashtra is putting...

Look at the state as a laboratory: Fadnavis

Maharashtra Chief Minister Devendra Fadnavis inaugurates the expo at the 'Global Fintech Fest 2026' at the Jio World Centre in Mumbai on Wednesday. Pic: PTI Mumbai: Chief Minister Devendra Fadnavis on Wednesday announced that the state will implement the new DELTA Act in the field of tokenisation. He said that Maharashtra will be the first state in India to create a legislative framework for tokenisation. Fadnavis was addressing the Global Fintech Fest 2026. He said, “Maharashtra is putting in place the architecture of the Maharashtra Digitisation and Exchange of Land Token Asset-The DELTA Act. The objective is to create a legal framework for blockchain‑based tokenisation of land and other immovable assets. There is enormous value unlocked in our physical assets, particularly land and we estimate it could be as large as Rs 50 lakh crore.” Highlighting the need for collaboration, Fadnavis said, “We are bringing together expertise from SIVI, BSE, NSE, industry, technology, law and academia because innovation at this scale must be accompanied by the legal certainty, consumer protection and regulatory trust. The operationalisation of this DELTA act requires a significant collaboration between government of India, institutions and government of Maharashtra.” Global Hub Fadnavis appealed the investors to look at the state as a laboratory to the most ambitious project. “The state was building an ecosystem around AI, data centers, GCC, startups, universities, and advanced technology. Look at Maharashtra as your laboratory, not just a market, and bring us your most ambitious ideas for sectors including agriculture, MSMEs, urban governance, mobility, healthcare, financial inclusion, fraud prevention and public finance.” Highlighting the opportunities in the state he said, “Mumbai gives us the India’s deepest financial ecosystem, Pune gives us extraordinary talent and engineering, and Navi Mumbai is emerging a new centre for data centre, and global connectivity.” Pitching Mumbai as the next global hub he said, “Mumbai should increasingly become the city where the future of global finance is designed. The next global fintech company can be made here. The next global financial protocol can be designed here. The next innovation in digital public infrastructure can be designed here. The next breakthrough in AI could happen here.” Agentic AI On Agentic AI, CM Fadnavis underlined the need for the responsible use of AI and the trust involved in creating new technology. He said, “Imagine a farmer receiving financial advice in Marathi, imagine a poor citizen having access to financial intelligence that today requires teams of professionals, this could be transformative but there is an important principle we must never forget, AI may act for the citizen but the citizen must remain in control.” “The future of finance must therefore combine intelligence with accountability, innovation with consent, spear with security and agent with human oversight because in finance ultimately trust is the technology on which every other technology exists,” he added. India's fintech exports could reach USD 60 to 80 bn: Commerce Secretary Union Commerce Secretary Rajesh Agrawal said that by bringing its digital infrastructure, technological capabilities and fintech solutions to global markets, India has an opportunity to increase its fintech services exports almost tenfold, from the current USD 8 billion to USD 60 to USD 80 billion. Describing India's experience in providing financial services as a strong base, he said, “The fintech ecosystem provides a strong base to meet the emerging challenges of emerging economies, especially at the global level. To capitalize on this opportunity, coordination between governments, regulators, startups, financial institutions and partner countries is needed.” Agarwal said, “E-commerce exports by small and medium enterprises (SMEs) have been identified as an area where fintech companies can make a difference. E-commerce is promoting exports to increase the share of MSEs in India's global export sector, but access to working capital is a major challenge for businesses that do not have a history of borrowing and do not have assets to pledge. In this case, an e-commerce company has received an order from an exporter, but needs capital for a short period of time to fulfil it.” “Ministry of Commerce is piloting Export Credit Cards for e-commerce exporters and looking for fintech companies and startups that can develop technology-based short-term credit solutions. If small and medium enterprises are going to export and they need credit, they can ask for short-term loans from banks,” he added. Aggarwal said that India's fintech and technology industry will now have to move beyond exporting individual products to focus on developing solutions to meet the needs of various global markets. “This requires clear guardrails where the risks are understood, room for experimentation where they are still emerging, and the ability to adapt the framework as technology and its uses evolve. Good policy should give innovation room to grow, while ensuring that accountability and resilience grow with it. Policy has to remain informed by what is happening on the ground.” Rohit Jain, Deputy Governor, RBI

India’s Dilemma: The Specter of a Three-and-a-Half-Front War

Jan 1, 2025
4 min read

Updated: Jan 2, 2025

In the first of a two-part series, we examine India’s growing security challenges, both internal and external, and the strategic steps needed to navigate these complexities

India’s Dilemma

The world is a powder keg. Unrest in Iran, Iraq, Israel, Syria, and across the Middle East coincides with the protracted war between Russia and Ukraine. These crises ripple across borders, leaving no country untouched. For India, the stakes are particularly high. In Asia, tensions with Bangladesh and Pakistan, coupled with an unresolved standoff with China, exacerbate an already precarious security environment. Adding fuel to the fire, domestic challenges further intensify the risks, raising the alarming possibility of what strategists dub a “three-and-a-half-front war.”


India’s geographical location offers both an advantage and a disadvantage. Strategically positioned as a hub for global logistics, the country is critical to ensuring regional stability. Yet, its proximity to two longstanding adversaries—China and Pakistan—complicates matters. Bangladesh, with its shifting allegiances, has added a new dimension to this calculus. The volatile domestic situation, marked by communal and political unrest, completes the trifecta, with internal challenges forming the “half front” in this ominous scenario.


Indo-China relations have long tested India’s diplomatic mettle. For decades, China has pursued a strategy to keep India on edge, using a mix of psychological and military provocations. Rooted in its desire to avenge the ‘Century of Humiliation,’ China’s worldview is deeply shaped by a need to dominate its regional neighbours.


India’s rapid ascent on the global stage poses a direct challenge to China’s ambitions of regional and global supremacy. Beijing views New Delhi’s rising stature with unease, particularly its growing influence in the Indo-Pacific, its robust infrastructure along contested borders and its leadership in multilateral forums like the Quadrilateral Dialogue (QUAD). The refusal to join initiatives like the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) has further strained ties.


The 2020 Galwan Valley clash, a tragic flashpoint in Indo-China relations, epitomized China’s aggressive designs. Beijing’s displeasure with India’s border infrastructure development and its closer ties with Western allies has only fuelled its belligerence. Militarily, China holds the upper hand, leveraging its advanced arsenal against India’s aging defence systems. This disparity emboldens Beijing to test India’s resolve repeatedly, creating a perpetual state of tension.


Beyond its direct provocations, China’s deepening ties with South Asia complicate India’s security calculus. Bangladesh, once a trusted ally, now edges closer to Beijing. Economic investments through the Belt and Road Initiative, strategic military partnerships, and increased political engagement hint at a significant shift in Dhaka’s priorities. While India continues to invest in its ties with Bangladesh, the growing influence of China in the region presents challenges that are impossible to ignore.


Since Partition in 1947, India and Pakistan have shared an acrimonious relationship. Pakistan’s grievances, from the creation of Bangladesh to its inability to annex Kashmir, have defined its hostile posture toward India. While India’s economic growth and diplomatic successes have widened the gulf, Pakistan continues to rely on asymmetric warfare through state-sponsored terrorism.


India has responded firmly with cross-LoC strikes and diplomatic efforts like pushing Pakistan onto the FATF grey list. However, Islamabad’s deepening ties with Beijing, including advanced weapon supplies, have strengthened its military, forging a troubling China-Pakistan nexus. This partnership, with potential strategic collaboration in Siachen and Ladakh, poses a serious challenge to India, raising concerns of a coordinated assault from both adversaries.


Bangladesh, once a close ally, now emerges as a wildcard in India’s security landscape. While the two countries share historical ties rooted in India’s role during Bangladesh’s liberation, recent developments suggest a drift. Dhaka’s growing economic partnership with Beijing and its reluctance to fully endorse India’s regional leadership underscore this shift.


China’s significant investments in Bangladesh’s infrastructure, ranging from ports to power plants, mirror its strategy in other South Asian countries. For India, this growing influence represents not just an economic challenge but a strategic one. The possibility of Bangladesh aligning with China in regional disputes adds another layer to India’s external threats.


The Domestic ‘Half Front’

India’s security challenges are compounded by internal issues like communal tensions, political polarization, and insurgencies in Kashmir and the Northeast, which strain resources and create exploitable vulnerabilities. Kashmir remains a flashpoint, with unrest offering Pakistan opportunities to stoke proxies, while Northeast insurgencies require constant vigilance. To counter the threat of a coordinated three-front assault, India must recalibrate its security policy with investments in defence modernization, strong alliances, and diplomatic finesse.


Modernizing the armed forces, with a focus on indigenization and reducing dependence on foreign suppliers, is imperative. Simultaneously, India must strengthen its regional partnerships, leveraging platforms like the QUAD and the Indian Ocean Rim Association to counterbalance China’s influence. Engaging with Bangladesh to rebuild trust and counter Beijing’s narrative will be equally crucial.


A united and resilient nation is less susceptible to external manipulation, ensuring that the ‘half front’ does not become a full-blown crisis. The challenges are formidable, but so too is India’s resolve.


(The author is a retired Indian Naval Aviation Officer and a geo-political analyst.


(In Part Two tomorrow, we focus on Bangladesh’s potential to emerge as a third front in the conflict, explore how India’s domestic situation constitutes a ‘half front’ and examine key remedial measures India must adopt to mitigate the threat)

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