India plays Chinese checkers, steps up military ties with Vietnam

The Narendra Modi government is playing its own version of Chinese checkers as India pushed the envelope for ties with Vietnam by agreeing to supply naval vessels to Hanoi and underlined its strategic intent to spur the modernisation of the military infrastructure in the Southeast Asian country.
In defiance of Chinese objections, the prime ministers of India and Vietnam met in Delhi and decided to ramp up their defence and energy ties. Vietnam Prime Minister Nguyen Tan Dung’s visit to Delhi was advertised as predominantly focused on galvanising economic aspects of the relationship, but has ended up as delivering clear-cut outcomes in military and strategic spheres.
India’s proactive military and economic diplomatic engagement with Vietnam indicates that the Modi government is set to be more assertive in countering China’s designs in India’s immediate and extended neighbourhood. India has watched warily as China has deliberately expanded its economic and military footprints in India’s neighbouring countries.

Read More

Why PM Modi’s voyage to Fiji matters

Prime Minister Narendra Modi’s visit to Fiji Islands would be an enormous boost for the Indian diasporic community and will underline increased warmth in Fiji’s ties with India. The scenic South Pacific island nation, which advertises itself as a ticket to happiness, is basking in the glow of restored democratic governance after a watershed election on September 17. After eight years of military rule, Fiji held elections under a new constitution and a new electoral system that guaranteed equality to all its citizens.
When Prime Minister Modi lands in Suva, the picturesque capital of Fiji, he will be the first Indian head of government to do so in over three decades; the last Indian prime minister to visit the island nation was Indira Gandhi in 1981.
Fiji’s Prime Minister Voreqe (Frank) Bainimarama was among the first world leaders to congratulate Mr Modi after the Bharatiya Janata Party won the national elections in May 2014. “I am confident that the true spirit of friendship and cooperation that provides the unbreakable bond between our two nations and its people will be further strengthened in the years ahead,” Bainimarama had said as he invited the Indian leader to visit Fiji at an early date. Modi had tweeted in response: “We will make India-Fiji relations stronger in the coming years.”

Read More

With China watching, India, Vietnam to deepen economic embrace

In a clear signal that Vietnam is a special friend and strategic partner of New Delhi, India will be rolling out the red carpet for Prime Minister Nguyen Tan Dung Oct 27-28, a visit that comes just five weeks after President Pranab Mukherjee’s high-profile trip to Hanoi.
The core focus of the visit will be economic as strategic and defence ties were dealt with exhaustively during President Mukherjee’s trip. The two countries have already exceeded their trade target of $7 billion set for 2015 ahead of schedule, and will be looking to map out new opportunities emerging in the economic arena. This economic focus will be reflected in the 50-strong delegation comprising a veritable who’s who of Vietnam’s business word the Vietnamese prime minister will be bringing with him to India.
Although the focus of the forthcoming trip by Vietnam’s prime minister will be predominantly economic, the symbolic significance will not be lost on China, which has warily looked at the closer Delhi-Hanoi strategic and economic embrace with a distinct unease. China has repeatedly objected to Indian companies’ involvement in oil exploration in South China Sea, which it claims in entirety. But India has made it clear that its energy cooperation with Vietnam is strictly bilateral, and does not impact the interests of any third country.

Read More

Indo-US détente: Beyond economics?

While India and the US might achieve breakthroughs in the economic realm, the story of geopolitics seems to be more challenging.
The most important aspect of the relationship is the American recognition that India’s success and transformation towards a more prosperous society is in America’s interest, and India’s emergence as a major and prosperous power requires a closer relationship with the US both in the security and economic realms. As Senator McCain states, “Ultimately, this strategic partnership is about India and the US placing a long-term bet on one another – a bet that each of us should be confident can offer a big return.” The countries might have divergent perspectives, but their visions and commitment to a liberal international world order, and a rising Asia that is stable with no single power exercising disproportionate influence, do not conflict. This should be the dominant idea taking the relationship forward, as it did during the civil nuclear agreement, after which this central story line got blurred.

Read More

ITEC toasts 50 years: Celebrating South-South spirit of sharing

Made in India! It’s their tryst with India, and the spirit of South-South sharing, that has branded them for life. On the night of October 22, which coincided with the Diwali eve, students and mid-career professionals from dozens of countries across the globe celebrated a unique institution called ITEC, which brought them together to India in an adventure of learning, seeking, sharing and skilling.

Singing and dancing amid animated chatter to Indian pop star Alisha Chinai’s foot-tapping number Made in India, this rainbow brotherhood toasted the golden jubilee of Indian Technical and Economic Cooperation (ITEC) programme, which has become their ticket to India and the world in more ways than one. The atmosphere was heady and resembled that of a graduation dinner, with ITEC alumni from diverse nationalities exchanging notes, clicking photos and packing their nostalgia bag with memories of India. Noor Mohammed from Afghanistan said disarmingly: It’s a gift. I am so happy to be part of ITEC and come to India.” Catherine from Colombia was also all praise for the ITEC ethos: ”It was an invaluable experience. India is an amazing country.”

Read More

India says it has terror deterrence, asks region to benefit from India growth story

Projecting India’s growth story as a binding economic force for the region, India has said that it would like to resolve all issues through dialogue with Pakistan, but has underlined that it will have an effective deterrence to deal with terrorism.

“We would like to resolve our problems through negotiations, through talks. I don’t think of any problem that cannot be resolved through negotiations,” National Security Adviser Ajit Doval said at the Munich Security Conference, organised by the Delhi-headquartered think tank ORF, in New Delhi.

“But on the other hand, India would like to have an effective deterrence to deal with terrorism,” Mr Doval said against the backdrop of escalating tensions over recent ceasefire violation by Pakistan.

Read More

India’s FDI dreams

Billions of dollars in Foreign Direct Investment (FDI) have been assured to India thanks to Prime Minister Modi’s successful foreign tours and the visit of Chinese President Xi Jinping. Hopefully countries with more wealth and technology than us will help us create jobs. But in his efforts at gathering FDI, the Prime Minister is not any different from the previous government which also staged many road shows with union and state ministers, politicians and even the prime minister going abroad to woo foreign investors.

Everyone knows the advantages of FDI, but there are disadvantages also. One has to remember that FDI in the past has been capital intensive and not labour intensive. Foreign companies tend to use more technology to retain their competitiveness and flexibility than go for hiring more workers. Most are afraid of encountering labour problems. Millions of jobs, however, are needed in India and therefore there has to be a policy of encouraging labour intensive FDI. In mining industry, there is a danger of FDI harming the environment in their extractive manoeuvers. Hence India has to study carefully what kind of FDI it wants.

Read More