India and the World

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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Rebuilding quake-hit Nepal: India unveils $1 billion assistance

- by India Writes Network

Underscoring India’s unstinting contribution for creating a resilient Nepal in the aftermath of the quake, External Affairs Minister Sushma Swaraj has pledged an assistance package of $1 billion for the rehabilitation and reconstruction of the nascent Himalayan democracy.

Speaking at the International Conference on Nepal’s Reconstruction, Sushma Swaraj said: “Keeping with our very special relationship that I am happy to announce Government of India’s pledge for Nepal’s post-earthquake reconstruction of Nepali Rupees 10,000 crores, equivalent to one billion US dollars.”

She emphasised that India’s Prime Minister Narendra Modi, along with 1.25 billion Indian citizens, are committed to shoulder their responsibilities towards India’s oldest and closest friend and neighbour in the wake of the April 25 earthquake that devastated Nepal.

“Let us take inspiration from ancient philosophy of Yoga and join hands to create a more resilient Nepal,” said the minister

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From hometown diplomacy to home truths: China blocks India’s UN move against Pakistan

- by Manish Chand

Call it home truths, if you will. After much-hyped hometown diplomacy by the leaders of India and China, the first time at Sabarmati Asharam in Gandhinagar and then at Xian, the city of famed Terracotta Warriors, home truths are staring New Delhi as it engages Beijing. Barely weeks after Chinese President Xi Jinping rolled out the red carpet for Prime Minister Narendra Modi, conjuring up a seductive narrative of major power relations and all that sweet talk of an Asian Century, Beijing is now drawing its own red lines. And this red line is definitely a red rag to New Delhi.
Belying Beijing’s talk of jointly countering terrorism, the Chinese representative has blocked India’s move in the UN demanding action against Pakistan for releasing the Mumbai mayhem mastermind Zaki-ur-Rehman Lakhvi from jail on the ground that India has not provided “sufficient information”. The legal subterfuge deployed by China to shield Pakistan’s action (or lack of action against the architect of 26/11) reinforces the red line drawn by Beijing in its relations with New Delhi. Put simply, it means that China is ready to pump in $20 billion into India, build industrial parks and smart infrastructure, but if it means going against its all-weather acolyte Pakistan

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Afghan President lauds parliament attack hero, UN envoy hails Afghan forces

- by India Writes Network

Afghan President Ashraf Ghani has lauded Esa Khan, the Afghan soldier who killed six of the seven insurgents who tried to storm parliament on June 22, as a hero and honoured him by presenting him with a new home.
Mr Ghani tweeted a picture of himself greeting the soldier, Esa Khan, who will be promoted and given a medal. The Afghan security forces also got rich praise from the UN envoy to Afghanistan.
After a Taliban suicide bomber and six gunmen carried out a brazen attack on Afghanistan’s parliament on June 22, which killed two and injured dozens, the United Nations Envoy to Afghanistan Nicholas Haysom said that Afghan security forces were undeniably stretched amid ongoing threats from Taliban insurgents and Islamic State militants for establishing their foothold in the country.

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Japan’s SoftBank-led $20 billion boost to India’s solar projects

- by India Writes Network

The sun is set to shine brighter on India’s renewable energy plans. In the single largest investment in India’s renewable sector, Japan’s telecom and internet giant SoftBank, along with India’s Bharti Enterprises and Taiwan-based Foxconn Technology Group, will invest about $20 billion in the country’s solar projects over the next 10 years.

The newly founded joint venture – SBG Cleantech Ltd — will be headquartered in New Delhi. It will be led by Manoj Kohli, a Bharti Group veteran who has led the group’s emerging businesses, as an executive chairman. The company plans to generate about 20 gigawatts of energy. SoftBank will have major stakes in the joint venture, while Bharti and Foxconn will join in as minority stakeholders. The exact details of the stake haven’t been decided yet.

“India has two times the sunshine (of) Japan. The cost of construction of the solar park is half of Japan. Twice the sunshine, half the cost, that means four times the efficiency,” said Softbank’s Chief Executive Masayoshi Son.

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