India and the World

Reconnecting to Central Asia: Modi’s visit to Stans states a game-changer

- by Manish Chand

If I say Amir Khusrau is our poet, I would be stoned in India,” the Tajik ambassador said recently in New Delhi, a shade dramatically. In Dushanbe, don’t be surprised if Tajiks recite to you soulful couplets of Zebn-un-Nisa, Aurangzeb’s eldest daughter better known by her pen-name Makhfil (The Hidden One). Mahabharata and Ramayana are prime time shows on Uzbek TV. And this will be a revelation for those not in the know: on Valentine’s Day, Uzbeks celebrate their love for the 16th century Mughal emperor Babur.
From Bollywood and kathak to yoga and Hindi, Central Asia is suffused with the glow of Indian culture and spirituality. It was, therefore, fitting when India launched its Connect Central Asia policy in 2012 as the two regions have been conjoined intimately through historical and cultural ties for centuries. It’s a relationship that has been enriched by culture and poetry, but geopolitically it’s only now this strategically located region is zooming back into the focus of India’s diplomatic-strategic establishment. Prime Minister Narendra Modi’s visit to the five Central Asian states is a compelling statement of India’s reawakened interest in the region that is critical to the country’s interlinked strategic, economic and energy interests. The forthcoming visit of Mr Modi, the first by an Indian prime minister to all five post-Soviet Stans states in one go, is a game-changer of sorts that’s set to transform India’s multifarious relations with the energy-rich Central Asian region, where China has firmly positioned itself as the leading economic power and dispenser of largesse.

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India’s Digital Dream takes off, India Inc bets billions

- by India Writes Network

It’s a digital revolution in the making. If Prime Minister Narendra Modi’s dream of Digital India comes to fruition, the country of 1.2 billion people will be transformed radically into a formidable knowledge powerhouse connected by info highways and powered by transparent governance.

M-governance: Mobile, not Modi

Digital India initiative bears the stamp of the Indian leader, a former tea-seller who has flagged off new dreams for India and is fond of taking slefies with world leaders, but Mr Modi was keen to emphasise at the launch of the campaign in the Indian capital that it should not be equated with him. “We have to move from E-governance to M-governance. M-governance does not mean Modi governance. It means Mobile governance,” Mr Modi said in a messianic tone as he kicked off the Digital India Week in New Delhi on July 1.

Indian corporate honchos, such as Reliance Industries chairman MukeshAmbani and Bharti Enterprises head Sunil Bharti Mittal promised to invest over 4.5 trillion rupees ($71 billion) in Mr Modi-led “Digital India” initiative.

Other organisations, including Metals and resources company Sterlite Technologies will manufacturing LCD panels in India, while a maker of energy-saving motors Japan’s Nidec Corp, will establish 5 factories; all in India’s flagship initiative – “Digital India”.

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It’s China’s moment as BRICS Bank gets ready for launch

- by India Writes Network

It seems to be a golden period for China with yet another non-Bretton Woods institution challenging the West-dominated international financial institutions which have controlled the global financial system post 1945. Two days after 50 countries signed on to become members of the China-led Asian Infrastructure Investment Bank, the Chinese Parliament has ratified the creation of the New Development Bank of BRICS countries. The parliaments of India and Russia have already ratified the NDB, which will be headquartered in Shanghai, and will have an Indian as the CEO of the newly created institution.
With the setting up of these two banks, China has scored a point against the US and the West which have been ignoring the BRICS’ appeal for greater voting rights in the IMF and reform of global financial governance system. The NDB’s shareholding is on an equitable basis, with China, India, Brazil and South Africa contributing 20 per cent of the start-up capital of $50 billion, with a goal to reach a capitalization of US$100 billion.
The formal launch of NDB and AIIB is set to recast global financial landscape. Some will contend that 2015 seems to be the year of China when it became a game changer by hosting two new multilateral banks of the global South.

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India set to get inside SCO tent, focus on terror

- by India Writes Network

Russia will be hosting the twin summits at Ufa – BRICS and SCO – on July 8-9. It’s expected to be a big moment for Russia as Moscow, reeling under Western sanctions on account of its Ukraine actions, signals to the world that it still has friends and partners across a wide swathe of the developing world.
For India, too, the Ufa summit will be a milestone of sorts, albeit for different reasons. The long wait has ended: New Delhi is expected to be elevated from an observer to full-fledged member in this Eurasian organization. The induction of the world’s largest democracy and Asia’s third largest economy is expected to provide more heft to the grouping which has been dominated by Russia and China since its founding more than a decade ago.
Many initiatives and ideas will be competing for attention of leaders at the SCO summit in Ufa. The SCO countries are expected to forge closer regional cooperation in combating terrorism and taking on the Islamic State. Most important, the world will be watching the big picture as the SCO summit endorses a blueprint for development of the organization.

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Will Greece debt crisis impact India?

- by India Writes Network

The rejection a Greek government call to extend its bailout by EU finance ministers has deepened gloom in the Eurozone. If Greece fails to repay the International Monetary Fund (IMF) 1.6 billion euro, Greece could risk leaving the euro.
Since the European Union economy with 28 countries is India’s largest trading partner, a lot of concerns have been raised. It is possible that the Indian markets in the short term may witness capital outflows but the crisis does not have a direct impact on India since India’s exposure to these markets is limited. India’s reliance on foreign funding is also low for the region as the Central Bank’s strong foreign currency reserves built in the run up to a scare of the balance of payments scenario in 2013 have helped strengthen the economy. With the Indian economy fundamentally strong and resilient, India in 2015 is in a much better position to withstand the magnitude of the crisis in Eurozone, thereby reducing any kind of panic and chaos which could otherwise have deterred investors.

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India second largest shareholder in China-led AIIB, hopes for infra boost

- by India Writes Network

Moving beyond the construction of rivalry between the two Asian giants, India has emerged as the second largest shareholder in the China-led Asian Infrastructure Investment Bank (AIIB), which is expected to provide development finance to Asia’s third largest economy which needs at least $1 trillion to bolster its infrastructure.

The 60-article agreement specifies structure and policy-making mechanism, as well as its member’s shares in the bank. The AIIB will have authorized capital of $100 billion, with Asian countries contributing up to 75 per cent of the total capital.

The delegates from 50 member countries gathered at the majestic Great Hall of the People in Beijing on June 29 to sign an agreement, providing the legal framework for the China-led Asian Infrastructure Investment Bank (AIIB), which is seen as a rival to the world’s major financial institutions, including the World Bank and Asian Development Bank.

Seven more countries are due to sign by the end of the year. For India, its ambassador to China Ashok Kantha signed the document.

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Chinese submarine in Karachi puts spotlight on Indian Ocean games

- by India Writes Network

Reports of a Chinese submarine docking in Karachi, after having lurked past Indian waters, have the potential to raise tensions in India’s maritime neighbourhood. This is not the first time such an incident has occurred in Indian waters as similar visits by Chinese submarines were made to Colombo over the past one year. When China’s deadliest submarine the ‘Yuan Class 335’ crossed the Arabian Sea and docked in Karachi on May 22, it was enough to alert the Indian Navy and the security establishment considering that the Indian Ocean Region(IOR) is today probably the most important water body strategically for major powers of the world.

The submarine is reported to have spent a few days in Karachi, refuelling and restocking, before sailing back to China with close to 65 crew members, according to some reports. The Yuan-class submarine ‘335’, is equipped with torpedoes, anti-ship missiles and an air-independent propulsion that dramatically enhances its underwater endurance. Given these capabilities of the Chinese submarines, concerns in New Delhi are understandable.

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Terror strikes 3 continents, sparks global outrage

- by India Writes Network

A string of terror attacks struck people in three countries straddling three continents on June 26, renewing the global focus on the spread of international terrorism fuelled by anarchic warped-up ideologies. In three disparate savage strikes in Tunisia, France and Kuwait, terrorists slaughtered 66 people. The sites chosen for assaults – an American-owned chemical plant in France, a mosque in Kuwait and a seaside resort in Tunisia – ensured that dozens of civilians were killed by suicide bombers and underlined the need for concreted global action to tackle this many-headed monster.

The three strikes took place almost at the same time, after the ISIL militants called for many such operations to be carried out during the holy month of Ramazan.

The Islamic State, also known as ISIL or ISIS which recently marked the first anniversary of the establishment of the so-called caliphate, has claimed responsibility for the attacks in Tunisia and Kuwait.

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BRICS bank to start operations by July 2016: K V Kamath

- by India Writes Network

The BRICS’ signature initiative, the New Development Bank (NDB), a symbol of the grouping’s drive to recast global financial governance architecture, is expected to begin its operations and take up projects by April 2016.

NDB bank will function on the lines of world’s major financial institutions including World Bank, Asian Development Bank, and private money lenders. It will be given the same privileges as those institutions. The bank will have vice presidents from three other nations.

Speaking at the CII National Council Meeting in Mumbai on June 25, the newly appointed chief of the New Development Bank of BRICS countries K V Kamath said, “NDB has opted for a larger canvas by expanding its scope of operations to other member nations. The name of the bank was changed as new partner countries are likely to join the BRICS group of emerging economies.”

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