'INDRA-2012' Indo-Russian joint exercise to combat terrorism

India for big push to investment in Afghanistan (Delhi Investment Summit)

• India has called for greater private investments in Afghanistan, which will help replace military fatigues now dominating the country with grey suits of company executives. 
• EAM inaugurated the first ever regional conference on Afghanistan, jointly organised by the Ministry of External Affairs and the Confederation of Indian Industry
• These senior political figures from Kabul were frank with their appraisal of the current situation, confessing that they had to make efforts to improve the security situation as well as ease of doing business

Despite U.S. opposition, Iran to be transport hub for North-South Corridor

• A multi-nation transport corridor that would radically reduce cargo transportation time between India on one side and Central Asia and Russia on the other with Iran being the pivot could see dry runs beginning next year.
• A three-day meeting of experts from 16 countries discussed ways to smoothen the way for the International North South Transport Corridor (INSTC) and at least six supplementary routes despite the U.S. pushing its Silk Road proposal in which its bete noire Iran has been excluded. 
• In stark contrast, Iran plays a crucial role in the multi-modal North-South Corridor as its port Bandar Abbas will be the hub of all activity. Experts proposed the setting up of two four-nation groups to resolve many of the ssues. Iran along with Russia and India (all three initiators of the project) will be in both groups.

Indian Foreign Policy: Problems and Prospects

Lecture taken from

http://indiandiplomacy.in/htmllecture.aspx?skrc=313

There are three main determinants of foreign policy: people, history and geography :

o People- identity, values, aspirations and skills
o History- circumstances, opportunities and constraints of the past
o Geography- location, resources and neighbourhood

· India was an old civilization with great cultural resources which, however, was stratified socially, economically and politically. Three major developments changed the character of India:

o The direct involvement of the masses in the freedom movement in the first half of the 20th century with independence in 1947 and, in spite of the Partition, an identity as a secular nation.

o The ambition reflected in the Preamble of the1950 Constitution to form an egalitarian, secular, socialistic-type just society focused on the social and economic development of the people and politically united into a democratic republican nation.

o The economic reforms of 1991, liberating the trading and entrepreneurial spirit of the people


· The near coincidence in time of Indian independence and Partition, the beginning of the Cold War in the aftermath of the World War II and the Communist victory in China created a difficult situation for India. It led to a foreign policy of non-alignment as a means of retaining strategic autonomy combined with an effort to create solidarity of Asian/ developing countries as a political support base.

· In the wake of the Cold War, India’s pro-Soviet–tilt and Pakistan’s total support for the West as well as China’s occupation of Tibet, helped to exacerbate the neighbourhood tensions. In spite of trying to settle peacefully through the UN the Kashmir issue created by Pakistan’s aggression, the issue got converted there into an Indo-Pakistan dispute. Two wars, one in 1965 and the other in 1971, the latter changing the political geography of the sub-continent, and the respective peace agreements signed in Tashkent and Simla failed to resolve the problem. Subsequently, Pakistan started using terror as a state policy to try to force India to submit as part of its proxy war strategy.

· India –China border dispute arising out of an assertive China unwilling to accept ‘imperialist- imposed’ borders, was not contained by the Panchsheel Agreement whereby India accepted Tibet as an autonomous part of China without demanding any tangible quid pro quo, such as acceptance of the McMahon line as the boundary. In fact, the offer of refuge to Dalai Lama in India in 1959 heightened Chinese suspicions, the breakdown of negotiations, and Indian ‘forward policy’, among other things, saw China ‘teach India a lesson’ by attacking in 1962 which led to a humiliating military defeat for India. Chinese occupation of Aksai Chin and claims on Indian territory like Arunachal Pradesh are unresolved.

· India’s ‘Hindu rate of growth’ – meaning growth dependent on natural biological growth, as Hinduism does not practise conversion, rather than any pejorative reference to the religion or its adherents – of around 3.5 % economic growth rate vis-a-vis our population growth rate of around 3% during that period, for most of the first half of the twentieth century under the British and marginally better from 1950s to 1980s meant in per capita terms almost nil growth rate implying very little capacity for national accumulation. The problems of illiteracy, disease and poor infrastructure were other constraints. This led to command economy policies (e.g., Second Five year Plan, etc). These meant not only ideological distaste for India but also its lack of attractiveness as a profitable trade and investment partner for the US business. Combined with India’s pro-Soviet tilt, it implied less than cordial relations with US. This was seen during the Bangladesh War and in the aftermath of India’s peaceful nuclear tests in 1974 when the US put in place a very strong nuclear non-proliferation regime both at home ( through Nuclear Non-proliferation Act, 1978, Pressler and Symington Amendments, etc.), and internationally through IAEA and NSG mechanisms.

· The collapse of the Soviet Union in 1991changed the prospects for India. Forced to deal with a uni-polar world, India made new approaches such as its ‘Look East’ policy towards the miracle economies of ASEAN.. The rise of Indian software globally as well as the rise of Indian- Americans in US and the market-oriented reforms in India combined with freeing US from seeing India through anti-Soviet prism gave a positive fillip to Indo- US relations. The end of the Cold War also reduced the importance of Pakistan in US eyes. Even the nuclear tests of May, 1998 which made India declare itself as nuclear weapon country which initially led to US sanctions, did not prevent a change of approach on the part of the US noticed during the Kargil War with Pakistan in 1999 and reflected through the 2000 with President Clinton’s visit and the lifting of these sanctions in 2001. Relations between India and US can be said to have really turned around with President Bush’s announcement in July, 2005 that the US would offer help to India in civilian nuclear energy. This led to the Indo-US Civil Nuclear Agreement.

· The importance of the Indo-US Nuclear deal lies not merely in that it allowed supply of nuclear fuel and access to nuclear technology, important as they are for India’s economic development, but also in that it was contrary to the stipulations of the Non-Proliferation Treaty (NPT) and, more significantly to the entire US non-proliferation efforts, domestically and internationally, in the wake of India’s 1974 test. Furthermore, it was also considered to be a one-time exception only for India. It meant that in the eyes of the most-powerful nation, India had arrived. Furthermore, we share considerable common interests with the US and have a lot to gain from our partnership with them. However, we should not be carried away by any ‘Hindi-Amreeki Bhai-Bhai’ euphoria. We need to keep in mind the possibility of our being co-opted against China and nor can we afford US and China ganging up against us. Since it is also unlikely that we will side with the Chinese against the US, it would be in our interest to have a subtle trilateral balancing interaction among India, China and the US.

· At the same time, the increasing radicalisation of Pakistan and its near failed state situation poses a threat to India and, indeed, to the rest of the world. In particular, the discovery of Osama bin Laden in Pakistan among other events has rather adversely affected Pakistan’s image in the world and the economic support that it can expect from the external world.

· The perception of India’s rise in the eyes of the external world is also visible in its economic growth potential. With economic growth consistently in the range 7 to 8 % and even touching 9% in the three years before 2008, averaging over the last twenty years nearly 8% growth rate and a per capita average growth of over 5%, as the population growth rate had dwindled to less that 1.6%. This also seen in the savings rate rising steadily from less than 10 % until 1955, to around 33% over the last several years. Combined with the demographic dividend in the coming decades, India economic growth rate is expected to overtake even China’s. The famous BRIC reports of Goldman Sachs also corroborate the great potential for India’s rising economic stature in the coming years and decades. India is now in G-20. However, India is still the poorest in G-20 and is expected to face increasingly acute scarcity of land, water and energy resources as well as environmental problems.

· The fact that three out of the top four economies by 2050 would be Asian- China, India and Japan-, the other being the US, underscores the shift of economic power from the West to the East and the concomitant likely political power profile. It would also bring into focus developmental models based on authoritarianism versus democracy as well the importance of soft power. After all, India has right from the start been a model for other developing counties as what is possible in an open democratic governance system.

· Overall, with the collapse of the Soviet Union in 1991, the on- going decline of Europe and the recent euro-zone crisis sharply denting the dream of United States of Europe, the several hundred years era of European domination is ending. Depending upon our leadership, India may rise to be among the top three global powers. But a global power status, including a permanent Security Council seat, without an inclusive growth at home, dignity and security for all its citizens cannot be our final goal.

India votes for resolution against Sri Lanka

• India voted for a United States-sponsored resolution at the United Nations' top human rights body censuring Sri Lanka for its alleged rights violations during the war against the Liberation Tigers of Tamil Eelam.
• India initially showed reluctance to vote on a nation-specific resolution but changed its stand after political parties in Tamil Nadu exerted pressure on the United Progressive Alliance government to go with the resolution. The DMK, in particular, threatened to pull out its Ministers from the UPA government on the issue. 
• With 24 votes for, 15 against and 8 abstentions, the 47-member United Nations Human Rights Council (UNHRC) adopted the resolution, which noted with concern that an internal inquiry report in Sri Lanka did not adequately address “serious allegations” of violations of international law. 
• The resolution asked Colombo to present expeditiously a comprehensive action plan detailing the steps to implement the recommendations of the Lessons Learnt and Reconciliation Commission (LLRC) and to address the alleged violations of international law. 
• Informed sources said India decided to vote after persuading the sponsor to make two changes in the draft so that it became “non-intrusive” and contributed to a political reconciliation process in the island nation. 
• India did not participate in the debate, but voted with countries like Austria, Belgium, the Czech Republic, Italy, Spain, Switzerland and Uruguay. 
• Many of India's neighbours, including China, Bangladesh and the Maldives; Russia, Kuwait, Saudi Arabia and Indonesia were among the countries that voted against the resolution, which asked Colombo to implement the LLRC's constructive recommendations.

INDIAN OCEAN NAVAL SYMPOSIUM

• 'IONS' provides a regional forum through which the 'Chiefs-of-Navy' of all the littoral states of the IOR can periodically meet to constructively engage one another through the creation and promotion of regionally relevant mechanisms, events, and activities. (Within the context of 'IONS', the term 'Chief-of-Navy' is used in a generic sense. Consequently, for such countries as do not possess a formally established 'navy', the term is applicable to the 'head of the principal maritime agency').
• The primary aim of 'IONS' is to sustain a regionally relevant, consultative forum within which the navies (and/or the principal maritime agencies responsible for maritime security) of the littoral States of the Indian Ocean Region, along with such other relevant maritime entities as may be agreed upon from time-to-time by the members, can discuss issues and concerns that bear upon maritime security, with a view to arriving at agreed courses of action on trans-national issues, based upon a common understanding of the regional maritime security environment.

Objectives

1. To promote a shared understanding of issues and concerns relevant to the Indian Ocean Region, which bear upon maritime security.
2. To strengthen the capability of all nation-states of the Indian Ocean Region to address present and anticipated challenges to maritime security and stability.
3. To establish and promote a variety of trans-national, maritime, consultative and cooperative mechanisms, designed to address and mitigate maritime security-concerns of the Indian Ocean Region.
4. To develop interoperability in terms of doctrines, strategies, procedures, organisational and logistic systems, and, operational processes, so as to promote the provision of speedy, responsive, and effective Humanitarian Assistance and Disaster-Relief (HADR) throughout the Indian Ocean Region

India needs ‘NonAlignment 2.0', new policy report says

• Warning that the time for India to get its act together is now because of the favourable growth prospects, demographic profile and international environment it faces — all of which may subsequently change — a group of foreign policy experts released a report
• NonAlignment 2.0: A foreign and strategic policy for India in the 21st century, which identifies the basic principles and drivers that would make the country a leading player on the world stage while preserving its strategic autonomy and value system.
• As the report reiterated several times, the trends for India to extend its global role and influence are favourable but time is of essence. The basic structures suggested by the report must be quickly implemented because the “underlying factors that are propitious for our growth may not last long.” But the authors say India's big challenge will be to aim at not just being powerful but to set new standards for what the powerful must do, because in international relations, “idealism not backed by power can be self-defeating and power not backed by the power of ideas can be blind.” India's legitimacy in the world will come from its ability to stand for the highest human and universal values and at the global level, “India must remain true to its aspiration of creating a new and alternative universality.” 
• In a situation where the world is no longer bifurcated between two dominant powers, nonalignment today will require managing complicated coalitions and opportunities in an environment that is not structurally settled, the report say. But former NSA Brajesh Mishra, who spoke at the launch, questioned the approach of the report, especially its view that India not take sides in the rivalry between China and the U.S. China's approach was that of the Middle Kingdom, it wants to be number one, and India's priority should be to build a closer partnership with Washington. 
• The report deals with India's approach towards the ‘Asian theatre,' the international order, hardpower, internal security, non-conventional security issues like energy and nuclear options, the knowledge and information foundations of power as well as the state and democracy.
• The report emphasises that for its strategic and foreign policy to be successful, India must sustain domestic economic growth, social inclusion and democracy. Its approach must be to secure the maximum space possible for its own economic growth in order for the country to become reasonably prosperous and equitable. Although India's competitors will put roadblocks in its path, “the foundations of India's success will depend on its developmental model.”

India, China move to maritime cooperation

• India and China have decided to open a new chapter in bilateral cooperation by agreeing to undertake joint operations against pirates and sharing technological know how on seabed research.
• The first proposal seeks to involve the Coast Guards, the navies and air forces in action against pirates. The modalities will be worked out by a joint group that will include the two Foreign Offices, besides the Ministries of Defence, Shipping and Oceanography.
• The talks also touched an area of acute anxiety to the Chinese — the possibility of protesting Tibetans stealing the limelight during the month-end BRICS summit here at a time of heightened tensions in the Chinese province.
• China had cancelled high-level border talks in November last after India declined to withdraw permission for an international Buddhist conference planned around the same time.
• Second proposal — sharing technological know how on seabed research falling outside the domain of coastal countries — is aimed at dousing India's apprehensions after Beijing was permitted by the International Seabed Authority to explore in south-west Indian Ocean.
• Highly placed sources put a great deal of stress on the proposal of joint operations against pirates, especially after China and India exchanged sharp statements over ONGC taking up exploration in the disputed South China Sea.

Black money: India backs convention

• India has ratified an international convention on taxation which will help the country in bringing back illegal funds stashed abroad
• India became the 13th country and the first non-OECD (Organisation for Economic Cooperation and Development) nation to ratify the ‘Multilateral Convention on Mutual Administrative Assistance in Tax Matters,' which seeks to promote transparency and exchange of tax-related information.
• The Convention, a Ministry release said, “also provides for assistance in the recovery of taxes. This will give a fillip to the efforts of the government in bringing the Indian money illegally stashed abroad.”
• It will also allow India to seek past information in criminal tax matters.
• “A party to the Convention is compulsorily required to exchange the past information in criminal matters for at least three years ...” the release said.
• The convention, it said, explicitly provided for automatic and spontaneous exchange of information and would permit tax officials to enter the territory of the other country to examine individuals and records.

FATF Approved the Revised Recommendations for Combating Money Laundering and Financing of Terrorism

• The Plenary Meeting of Financial Action Task Force (FATF) being held in Paris approved the revised recommendations for combating money laundering and financing of terrorism. The plenary also discussed the fourth follow-up report on India’s progress with reference to the Action Plan that it had committed to in June 2010. 
• The plenary appreciated the actions taken by India and the commitment of India to the international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.
• The FATF is an inter-governmental body that sets international standards for combating money laundering and the financing of terrorism. India became a member of FATF in June 2010.

India-ASEAN look to boost ties at Delhi Dialogue

• Delivering the key note address at the fourth edition of Delhi Dialogue in New Delhi on Monday evening, External Affairs Minister SM Krishna said, in the current global economic situation both the sides need to secure this region as an area of growth. He said,India and ASEAN need to enhance connectivity through the realisation of routes such as the Mekong-India Economic Corridor, which would have a beneficial effect especially for the eastern part of India.
• India has contributed to ASEAN integration and supports the efforts towards the creation of an ASEAN Community. Mr.Krishna said,in this digital age, the way forward points to virtual networks and e-connectivity in addition to land, rail and air connectivity. He asserted,ASEAN and India have the potential and the capacities to partner each other in such endeavors.
• Mr.Krishna reiterated that non-traditional and trans-national security challenges like cross-border terrorism, money laundering, drug trafficking, energy security, food security, climate change, disaster relief and response, protecting sea lanes of communications, piracy are present day challenges with repercussions over national, regional and international security. He urged the nations to put in coordinated efforts and demand innovative approaches beyond what ASEAN and India are already doing together in various international and regional ASEAN led fora.

India France relations, significance of Rafale deal

http://www.thehindu.com/opinion/op-ed/article2851361.ece

India, Bangladesh to resume talks on Teesta Treaty

• India and Bangladesh will take the first step towards revisiting the proposed Teesta river treaty when officials exchange river flow data at a technical meeting of the inter-governmental Joint Rivers Commission in Kolkata
• India had put the treaty on hold after West Bengal Chief Minister Mamata Banerjee, unhappy over the treaty's provisions, pulled out of Prime Minister Manmohan Singh delegation to Dhaka last year.
• While agreeing to put off the signing of the Teesta Treaty, Dhaka had asked New Delhi to ensure that the agreement would be examined after some time. An agreement is expected to pave the way for the signing of a similar agreement on the Feni river and five minor ones — Dudh Kumar, Manu, Khowai, Gomti and Muhuri.
• The sources said West Bengal or any of the other State through which over 50 rivers flow into Bangladesh will be kept in the loop while signing water sharing agreements.

Media Statement by PM during 12th India-EU Summit

http://mea.gov.in/mystart.php?id=190019008

February 10, 2012


Your Excellency President Herman Van Rompuy, President of the European Council,

Your Excellency Mr Jose Manuel Barroso, President of the European Commission,

Distinguished delegates and members of the media.

I am delighted to welcome Their Excellencies Mr. Herman Van Rompuy and Mr Jose Manuel Barroso to the first India-European Union Summit in India after the entry into force of the Lisbon Treaty.

We have just concluded extremely productive and wide-ranging discussions in a very cordial and friendly atmosphere.

India and the European Union are strategic partners in a fast changing and complex world. The success of Europe’s political and economic integration is vital for global stability and prosperity. The European Union leaders informed me of the steps being taken by Europe to deal with the debt crisis in the Eurozone. I conveyed to them our best wishes for an early and sustained recovery. Given our rapidly growing links with Europe, this is in India’s interest. Europe’s recovery is also essential for ensuring the recovery of the global economy and bringing back market confidence.

Our trade with Europe has reached 107 billion US dollars in 2011. Both sides have made considerable progress in the negotiations on the Broad-Based Trade and Investment Agreement. There are complex issues involved, but we have both agreed to expedite discussions so that we can conclude an Agreement at the earliest. We seek solutions that are practical, mutually beneficial and acceptable to both sides.



I conveyed to the EU leadership the importance India attaches to EU's participation in our growth agenda including in infrastructure development, clean energy technologies, innovation, research and skill development. Greater investment flows in both directions is a win-win proposition for both sides.

The signing of a Joint Declaration on Research and Innovation Cooperation and the Memorandum of Understanding on Statistical Cooperation are forward looking documents which will further integrate our economies .

I raised the issue of greater people-to-people exchanges and easier travel arrangements for tourism, businesspersons, professionals and other categories of travelers. We have agreed to continue our discussions on these matters.

India’s relations with the European Union go well beyond economic and commercial issues. We share common values of democracy, respect for civil liberties and rule of law. We have healthy and frank exchanges on political and security issues of bilateral, regional and global importance.

The India-EU Joint Action Plan which was adopted in 2005 and reviewed in 2008 is the template of our cooperation, and covers the entire spectrum of our relations.

We held substantive discussions on other areas of our engagement covering energy cooperation, science and technology, culture, counter-terrorism, piracy and cyber-security.

We exchanged views on the situation in West Asia, with particular reference to Syria and Iran and developments in our neighbourhood in Afghanistan and Pakistan. We have a common interest in promoting stability in these areas.



We discussed global challenges such as climate change, the global economic crisis and global governance reforms. We would like to work with Europe at the forthcoming international conferences on Nuclear Security in Korea, the G-20 Summit in Mexico, the Rio+20 Conference in Brazil and Biological Diversity Conference in India.

Our discussions today reinforce my belief that our partnership with the European Union will continue to grow in the coming years. India looks forward to working with the European Union on all issues. This is a partnership that will assume greater global significance in the years to come.

I thank you.


New Delhi
February 10, 2012

Joint Statement by India and European Union on the 12th India-EU Summit

http://mea.gov.in/mystart.php?id=530519010

12th India - EU Summit

• The 12th India-EU Summit will be held in New Delhi on 10 February 2012. Hon’ble Prime Minister, Dr. Manmohan Singh, will lead the Indian Delegation. Mr. Herman Van Rompuy, President of the European Council and Mr. Jose Manuel Barroso, President of the European Commission will lead the EU Delegation.
• This Summit would be the first such Summit in India following the implementation of the Lisbon Treaty.
• India and the European Union share common values of democracy, respect for civil liberties and rule of law. 
• India’s relationship with the EU has grown as our engagements in different areas have intensified over the years. This relationship will expand further as EU evolves. India values its relations with the European Union and sees the EU as a key strategic partner. 
• The Summit will provide an opportunity to both sides to review the entire spectrum of the strategic relationship between India and the European Union and to discuss bilateral, regional and multilateral issues of mutual concern.

Joint Statement on the occasion of the State visit of the Prime Minister of Mauritius

http://mea.gov.in/mystart.php?id=190018986

India's stake in Arctic cold war

http://www.thehindu.com/opinion/op-ed/article2848280.ece

India grants US univ $1.5 mn to establish Vivekananda Chair

• India will provide USD 1.5 million grant to the prestigious University of Chicago to establish a Vivekananda Chair for Indian studies, as part of initiatives to mark the 150th birth anniversary of the 19th century luminary.

Rafale edges out Eurofighter

• India selected the French Fighter Rafale over the Eurofighter Typhoon in a multi-billion dollar contract for the supply of 126 Medium Multi-Role Combat Aircraft (MMRCA) — the country's largest defense deal to date.
• Interestingly, for a company that faltered at the start, with the Defence Ministry indicating that the Rafale was out of the race, Dassault made a comeback and went on to win the bid.
• Sources in the Ministry of Defence said the product was picked up on the basis of it being the Lowest Bidder (L1), a decision arrived at after complex calculations including the life-cycle costs. The two aircraft were chosen from a list of six, including U.S. Boeing (F/A18) and Lockheed Martin (F-16), Russian MiG-35 and Swedish Saab (Gripen), in April last year.
• The deal is estimated to be worth $10.2 billion (Rs.54,000 crore). The plan includes acquiring 126 aircraft, 18 of them in fly-away condition and the rest to be manufactured in India at the Hindustan Aeronautics facility under transfer of technology.
• For France, the MMRCA deal is the third big defence contract that has come its way. In the current financial year, the Government of India cleared the $2.4 billion upgrade of 51 Mirage-2000 aircraft and the $970 million supply of MICA fire-and-forget missile for the same aircraft.