A brief Description on International Sanctions. What are its effects on our Country India.

1. “International
Sanctions”
• What is an International Sanction ?
• Why America is so powerful to put
Sanctions on other Countries ?
• Sanctions on India !
• Effect on Indian Economy !
Haruhit Kunwar
A Citizen of India !

2. What are International Sanctions ??
International sanctions are restrictions, i.e., a form of
punishment, which a country or group of countries impose on
another nation, either to protect national security interests, or
to protect international law, and defend against threats to
international peace and security.
The most common type of international sanction is Economic
Sanction. Economic sanctions may include various forms of
trade barriers, tariffs, and restrictions on financial transactions.
The other being :
Diplomatic Sanctions – deals with the reduction or removal
of diplomatic ties, such as embassies.
Military Sanctions – it deals with the Military intervention.
Sports Sanctions – it prevents one country's people and
teams from competing in international events.
Sanction on Individual.
Sanctions on Environment.
“One country like United States can put Sanction on other
Country like Iran or China to show their disapproval over
China’s Decision.”
In simple words a Country put Sanctions on other Country to
get that Country in Loss and to Show itself more Powerful.

3. Who Gave America rights to put Sanctions on
other Countries ?
Every Nation has a right to Regulate trade between them
and other Country. So its not Only America who has
right to put Sanctions on other Countries, Other Country
as well can put Sanctions on America but it would be
their own Loss.
America being a Powerful Economy and having a most
Powerful Military, is on a ground to levy sanction on
other countries easily.
United States has Sanctions on Countries like :
• Burma
• Cuba
• Iran
• N. Korea
• Syria
• Côte d'Ivoire
And many more.
America and Japan had once levied Sanctions on India in May
1998, when India declared itself as a Nuclear State.
Though it were removed in 2001 because USA needed India to
open up its trillion-dollar market for their companies.

4. Sanctions on India !!
After India declared itself a Nuclear State with the
successful nuclear test Pokhran-II , in 1998, World reacted
in condemning way.
United States
In keeping with its preferred approach to foreign policy, and in
compliance with the 1994 anti-proliferation law, the United States
imposed economic sanctions on India. The sanctions on India
consisted of cutting off all assistance to India except humanitarian
aid, banning the export of certain defence material and
technologies, ending American credit and credit guarantees to India,
and requiring the US to oppose lending by international financial
institutions to India.
Canada, Japan, and other countries
Strong criticism was drawn from Canada on India's actions and its
High Commissioner . Sanctions were also imposed by Japan on India
and consisted of freezing all new loans and grants except for
humanitarian aid to India.
Pakistan
The most vehement and strong reaction to India's nuclear explosion
was from a neighbouring country, Pakistan. Great ire was raised in
Pakistan, which issued a severe statement blaming India for
instigating a nuclear arms race in the region. Surprising the world,
Prime Minister Nawaz Sharif authorised nuclear testing program and
the Pakistan Atomic Energy Commission (PAEC) carried out nuclear
testings under the codename Chagai-I on 28 May 1998 and Chagai-II
on 30 May 1998.

5. Effect on Indian Economy
Overall, the effect of international sanctions on Indian economy
was minimal; the technological progress was marginal. Most
nations did not call for embargoes against India as the exports and
imports together constituted only 4.0% of its GDP, with United
States trade accounting for only 10.0% of this total. Far more
significant were the restrictions on lending imposed by the United
States and its representatives on international finance bodies.
Most of the sanctions were lifted within five years.
The RESERVE BANK of INDIA have prepared a report which is
stated to have estimated total loss of inflow of foreign exchange
due to the suspension of foreign aid to India at US $ 2.8 Billion as
combined aid from all donors.
The suspension of Foreign Aid is unlikely to have a significant
adverse impact on Indian Economy. This is because the net
bilateral aid flow to India are proportionally quiet small being
much less than the 1 % of India’s GDP.
At last every sanctions were lifted up by the Countries and India
didn’t faced much loss towards those Sanctions.
*********************Thank You******************