The calendar is an artificial construct but it is without doubt a useful way to mark the passing hours; to demarcate time past from time present and time future and, importantly, to imagine new beginnings. The effects of the unprecedented tragedy that washed up on our shores last Sunday continue to linger as we make this leap into the ether of a new year. Loss and grief of such enormous magnitude is difficult to reconcile to, yet they come as a reminder of the tremendous resilience this country has demonstrated over the centuries in the face of great odds and of the common ties that bind it. The tsunami also forced us to reevaluate our location in the world. Isolationism and an inflated sense of exceptionalism are part of an anachronistic worldview. They suit us ill in a world inextricably tied together, not just by politics and the economy, but by history and geography. India and Indians need to benefit from international partnerships ranging from the scientific to the corporate. We need to log on to the international knowledge grid.

THE year that has just ended has been witness to several elections, at home and abroad. There will be several more in the new year, notably in Iraq. The year that began with Atal Bihari Vajpayee at the helm and ended with Manmohan Singh testified to the strength of Indian democracy. Prime Minister Manmohan Singh’s credentials as a man committed to reform will be tested in 2005 as never before. From all indications — the stock markets are bullish, exports are burgeoning, industry is doing well — the Indian economy is on the path to growth. But keeping at it will be another challenge in 2005. It would need political consensus from allies, who have proved ideologically intransigent in the recent past, as well as administrative consistency. The new year should witness important steps being made toward a new tax regime, with the government making moves on a Goods and Services Tax. The VAT regime — expected to boost national GDP by two per cent — will also, hopefully, be put in place before long.

February will witness elections in three crucial states, Bihar, Jharkhand and Haryana. Bihar continues to be an area of darkness, presided over by a charismatic leader who has demonstrated an unprecedented ability to win elections despite a consistent record of non-governance. Will the state remain under Laloo Prasad Yadav’s thraldom? Very likely, given the present caste configurations and Yadav’s mastery in manipulating them for his political aggrandisement. So there is another question: will Yadav, should the RJD return to power, display the will to perceive Bihar’s reality for what it is and work towards addressing its formidable problems? Will he enunciate a new language of politics? If he does not do this, he will be personally responsible for having deprived the state of two decades of growth and development.

As they say, the best way out of seemingly intractable problems is always through them. The Indo-Pak dialogue process is a work in progress. The point about negotiating this traditionally inhospitable terrain is to ensure against slippage and reversal. For the moment both sides have guarded against this, although the euphoria of even a year ago has dissipated considerably. Pakistan continues to be suspicious of India’s stance on J&K despite the fact that both Prime Minister Manmohan Singh and President Pervez Musharraf had agreed last September to explore all options for a peaceful settlement of the J&K issue. Last year’s Friendship Series demonstrated the multiplier effects of people-to-people contact. This year should see more consolidation of the process and India’s unilateral move to ease restrictions on the movement of Pakistani students into the country, as also for those over 65, and Pakistan’s reciprocation on military CBMs are important moves in creating trust and goodwill in the region.

Nepal remains a worrisome blip on India’s radar. A resurgent Maoism in Nepal is a serious concern for India, given the formidable Maoist presence on its own territory. But extending wholehearted support to a king who is turning increasingly unpopular and autocratic, is not a perspicacious stance. India should be working towards consolidating democracy within Nepal instead of working against that process by buttressing the power of the palace. The SAARC neighbourhood is not exactly a stable or democratic one. India would be called upon to conduct itself in its relations with its neighbours with sensitivity and wisdom if it wishes to leverage its own status as a senior partner in the region.