India and the World

Modi dreams big for India, promises $20 trillion economy

- by India Writes Network

Buoyed by renewed global confidence in the India story, Prime Minister Narendra Modi has raised the bar by declaring a new ambitious target of scaling up the Indian economy 10-fold to $20 trillion. To make sure that his claim was not seen as grandiose showmanship, the Indian prime minister unveiled a raft of reforms, including reforming country’s the labyrinthine tax system to attract foreign investment and streamlining the governance system to make it faster and more effective.

Underlining the importance of fast-tracking institutional reforms, Mr Modi declared at a business conclave, organised by The Economic Times, that he was preparing the ground to turn India into a $20-trillion economy from $2 trillion. “In 20 years of liberalisation, we have not changed a command-and-control mindset. We think it is okay for government to meddle in the working of firms. This must change,” he said in New Delhi in a speech that was generously interspersed with the word reform and its improvisations.

However, in a carefully-worded formulation, the prime minister made it clear that his government would not cut subsidies that will adversely impact the poor. “I believe that subsidies are needed for them (poor). What we need is a well-targeted system of subsidy delivery. We need to cut subsidy leakages,” he told the country’s industry titans in New Delhi January 16.

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India-US defence ties: Making co-development mantra work

- by India Writes Network

The India-US relations have gained visible momentum, especially in the arena of defence trade and cooperation. Through joint ventures (JVs) and defence co-production, India and the US have an opportunity to take their strategic partnership to new heights, a crucial area which will be in focus during the visit of US President Barack Obama to India, the first American president to be invited as the chief guest at India’s Republic Day celebrations. The JVs of Indian and American companies and the co-production of military hardware will prove mutually beneficial and add strategic heft to bilateral relations, with a careful considerations on factors like maturity of markets and technology absorption capabilities.
Co-production is going to act as an enabling lever to energise the US’ strategic partnership with India. As India takes steady steps to spur economic recovery through second generation economic reforms, American defence contractors understand the present favourable business climate in India. There are examples of Indian and US defence companies in joint ventures like those of Defence Public Sector Undertaking, Bharat Electronics Limited (BEL), to focus on the design, development, marketing, supply and support of civilian and select defence radars for India and the global markets. The other examples include Lockheed Martin and TATA to build C-130 components, and Sikorsky and TATA to build cabins for S-92 helicopters. India and the US share common political values and a strategic vision and are destined to be long-term partners. The defence ties would be one aspect of cooperation which would assume growing importance as both the countries join hands to combat terrorism, cooperate in counter-terrorism efforts, and in addressing a host of non-traditional security challenges, maritime security and intelligence sharing. Needless to say, the co-development and co-production of military equipment would only serve to buttress an increasingly strong defence and strategic partnership between the world’s oldest and largest democracies.

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India, Japan to galvanise Modi-Abe agenda

- by India Writes Network

Building upon the famed Modi-Abe bonding during their much-publicised meeting in August last year, India and Japan have moved into 2015 with an ambitious mandate to fructify the next steps in their multifarious relationship.
The foreign ministers of India and Japan are set to hold their next round of strategic dialogue as New Delhi hosts Japanese Foreign Minister Fumio Kashida, the first high-level visit from Tokyo after the elections in Japan that brought Shinzo Abe to power with a brutal majority.
During their talks on January 16, External Affairs Minister Sushma Swaraj and her Japanese counterpart are expected to review all aspects of the blossoming relationship, which has been galvanised with Prime Minister Narendra Modi’s personal touch and investment in what the new dispensation in Delhi has identified as a major priority country for India in the years ahead.
The two foreign ministers will review the status of outcomes, including doubling of investment, during Mr Modi’s visit to Japan in September last year, Syed Akbaruddin, the spokesperson of India’s external affairs ministry, said ahead of the trip.
In the strategic sphere, the two countries are looking to collaborate closely in shaping an inclusive Asia-Pacific architecture, a strategic imperative which has been accentuated by China’s perceived assertiveness in the region.

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Modi mantra: Making India the easiest place for doing business

- by India Writes Network

Putting India on the global investment map, Prime Minister Narendra Modi has promised to make the country the “easiest” destination to do business, which would blend a stable tax regime with a predictable, transparent and fair policy environment.
Unveiling immense possibilities the country’s growing economy offers to the world, Mr Modi, with UN Secretary-General Ban ki-Moon and US Secretary of State John Kerry sharing the dais, assured investors that the government will “hold your hands whenever needed.” “If you walk one step, we will walk two steps for you,” the prime minister said at the 7th edition of the ‘Vibrant Gujarat’ summit, a biennial show hosted by the Gujarat government since 2003, which has morphed into a must-attend event for top global companies looking to invest in Gujarat and in India. “This event is perhaps the biggest gathering on earth where a budding entrepreneur has opportunity to see President of the World Bank. We are here as a family, not only in terms of space, but because we recognise that someone’s dream is dependent on someone’s direction. All of us want the planet earth to become a better place to live not only in terms of space, but also because we recognise someone’s dream.”
“India offers you 3Ds – Democracy, Demography and Demand and this is what you are looking for. You will not find all of them (3D’s) together at any other destination of world. We have a large number of hands to work and even a larger number of dreams to be realised,” he said.

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Rely on Modi’s India, Ambani unveils $16.5 billion investment

- by India Writes Network

Upping the stakes in the India growth story, India’s billionaire tycoon Mukesh Ambani unveiled plans for mammoth $16.5 billion (Rs 1,00,000 crore) investments across diverse sectors, and projected that India was on the path to become the world’s fastest growing economy.
The investments will be focused on expanding the RIL petrochemical production capacity and launching the 4G broadband services, which will provide a big boost to Prime Minister Narendra Modi’s pet projects, including Make in India and Digital India initiatives.
Speaking at the 7th Vibrant Gujarat Summit here, the biggest investor conclave being held in India since the Modi government took charge in May 2014, Mr Ambani, the world’s richest energy billionaire and India’s richest man, underlined that “India is marching forward with a clear vision to emerge as global power even when as most of the world is struggling with low growth.”

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Sri Lanka’s new Govt, and India and China

- by N Sathiya Moorthy

Sri Lanka has got a new President and a new government. The nation has voted in the common Opposition candidate Maithripala Sirisena, and voted out incumbent President Mahinda Rajapaksa. Prime Minister Narendra Modi has promptly congratulated Sirisena, indicating the traditional Indian readiness and willingness to work with the new government.
Indian concerns in and with Sri Lanka can be broadly identified with the ‘ethnic issue’ and the ‘China factor’. As the facilitator of 13-A power-devolution deriving from the Indo-Sri Lanka Accord of 1987, India owes to itself, the Tamils of Sri Lanka and that nation as a whole, to help restore ethnic peace and balance in that country.
The Indian sympathies and assistance, if any, for the Rajapaksa government to battle out the LTTE too derived from such a perception. However, the promised peace has eluded Sri Lanka, and that has had its overtones for politics and elections in India, with particular focus on southern Tamil Nadu. More so, it has also had impacted on bilateral relations in more ways than one, particularly in the larger international context of a succession of UNHRC votes on ‘accountability issue’ deriving from US-sponsored resolution on alleged ‘war crimes’ in Sri Lanka.

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