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INDIA SURGES AHEAD NEWS
March 2004
POLITICS & POLICY
 
India, Israel Resolve to Fight Terror Globally
 

Contending that it is a global menace, India and Israel have pledged to cooperate in fighting terrorism globally by forging international alliances. In an extensive discussion of the Joint working Group (JWG), touching upon whole gamut of experience in their individual fight against terrorism, the two countries, in a joint statement, emphasised the "growing need for counter-terrorism cooperation within the international community, specifically to strengthen political will and capacity building." It was the third meeting of the JWG since its inception and comes at a particularly tense moment following Israeli assassination of Hamas' spiritual leader, Sheikh Ahmed Yassin, whom Israel blames for direct involvement in terror.

Courtesy: The Hindu, March 26, 2004

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India's Making News in China
 

The last couple of weeks have seen India hogging the headlines in the Chinese media, signalling that winds of change are blowing. While over the last few years, comparisons between India and her Himalayan neighbour in the desi press have become common to the point of being mundane, stories about India are still rare to come by in the Middle Kingdom. Till recently, the mainstream perception in China about India was that, apart from the IT sector, India was - to put it bluntly - a bit of a backwater. "When China and India come together, changes are brought about to both the region and the entire world," boldly claims the lead from journalist Hu Xiao's piece in the China Daily. Hu goes on to detail the political and economic steps taken over the last year to ensure the sweetening, of the once sour, Sino-Indian relationship, starting with Prime Minister Atal Bihari Vajpayee's visit to Beijing in June. The article quotes an anonymous senior research scholar from the Chinese Academy of Social Sciences, as saying that "progress has already been made on the border disputes", and that, given the improved political conditions, the economic relationship between the two nations could really take off in the coming years. Hu stresses that despite bilateral trade having increased seven times in the last four years, from $1bn to over $7bn, "taking into consideration the fact that the two countries have more than one-third of the world's population", trade volumes are still tiny. China 's trade with India accounts for only 0.8% of its total foreign trade volume, and according to China 's Ministry of Commerce, last year there were only 15 major Chinese companies with investments in India.

The second of the China Daily articles, by Zhu Qiwen, titled "Developing along different paths", is a marked departure from the usual self congratulatory editorials which toast the achievements of the Chinese economy. It warns, "looking at the latest growth figures of the Indian economy, we must also realise India is as important as China in the world economic map... The Indian economy registered some 8% growth in '03, ranking among the world's fastest-growing economies. Immersed in pride over our own country's long-term growth, some of us have not prepared for such a newcomer, who is grabbing some of the limelight we had gradually taken for granted."

Moreover, rather than drumming up fears over India "overtaking" China, Zhu argues, "with the world's two biggest developing countries advancing rapidly in their own ways, the world economy is to benefit considerably from that development for sure". While acknowledging that certain rivalry and competition is bound to exist between the two Asian giants, the editorial stresses the importance of fostering bilateral trade relations, to a point that they are commensurate with the size and strength of the two neighbours.

The attention that India is getting in the Chinese media, signals more than a growing interest in the country amongst a few journalists. The Chinese media are government-controlled, and stories, particularly in official media like the China Daily and Xinhua, have to follow a party-approved line. Last Tuesday, Chinese foreign ministry spokesperson Zhang Qiyue said, " China attaches great importance to the development of a long-term constructive and cooperative partnership with India ". It would seem that at last, China is beginning to mean business, both literally and figuratively, when it comes to relations with her neighbour. The light from "Shining" India appears to be falling all the way across the Himalayas.

Courtesy: www.economictimes, March 25, 2004

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India Bids for Revival of Europe-Asia Corridor
 

Amid strong resistance from the US and other western countries, India has intensified its lobbying for revival of the Europe-Asia transport corridor through Russia instead of the EU-initiated Europe-Caucasus-Asia transport corridor called Traceca. The external affairs ministry is working on formation of a regional pressure group comprising India, Iran, Russia and central Asian countries like Kazakhstan, Azerbaijan, Armenia, Lithuania and Turkmenistan to drive home its point. According to sources in the external affairs ministry, setting up transportation and services along the North-South trade route was expected to bring these countries increased transit fee revenues and access to new markets. Proper development of such a corridor would extend the Helsinki-Petersburg-Moscow trade corridor across the Caspian Sea to Iran and India.

Courtesy: The Economic Times, March 24, 2004

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India Snubs US Key Ally Offer
 

After its decision to grant "major non-Nato ally" (MNNA) status to Pakistan last week caused major heartburn in India, the US is trying to placate New Delhi. During a Monday briefing, White House spokesman Scott McClellan said the US was willing to consider a similar arrangement with India. However, the MEA will have none of it. Said its spokesperson, "We have not given consideration to that kind of relationship with the US." A senior official said New Delhi would not accept such an arrangement as such a military partnership negated the very basis of India's foreign policy. "We have only agreed to a strategic partnership which classifies us as an equal partner of the US on our own terms, and we agreed to cooperate on a wide spectrum of relations and not merely defence," the official told HT.

Courtesy: Hindustan Times, March 24, 2004

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Now, France to offer N-sub for Joint Exercise
 

The USA and France may disagree on Iraq, but on India, they're thinking on the same lines. A few months after the US navy offered a nuclear submarine for exercises with the Indian Navy, the French navy has followed suit. Very rarely does a country offer up a nuclear submarine for exercises. This time, the French are bringing Rubis Amethyste, the submarine, Charles de Gaulle, the nuclear-powered aircraft carrier and several other ships. The Amethyste is an SSN or hunter-killer submarine with a good range and capability to fire the deadly Exocet cruise missiles. The French carrier has visited Indian ports on goodwill visits but this is the first time it is exercising with Indian naval vessels. Though India's carrier, INS Viraat, is in the docks, the Navy will be fielding six vessels and aircraft and helicopters for this advanced-level anti-submarine exercise, called Varuna, off the Goan coast. "The exercise will run from 9 April to 15 April. India does not have nuclear submarines, and the exercises will help the Navy acquire the training necessary to track them and during war, destroy such enemy vessels.

Courtesy: The Statesman, March 23, 2004

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India Calls for a Saarc Tax Treaty
 

India on Monday called for a multilateral tax treaty for the Saarc region and a forward looking investment regime. New Delhi said Saarc countries should deepen and widen the pace of their economic integration. Addressing the first meeting of the Saarc Inter-Governmental Expert Group on Investment, Arbitration and Avoidance of Double Taxation in Delhi, foreign secretary Shashank said such a tax arrangement will offer greater and more comprehensive protection to investors and provide relative legal certainty in connection with their tax status. Mr Shashank said the hectic pace of globalisation, the stakes involved for the region in the multilateral trade negotiations and the rush of bilateral and regional trading agreements being entered into worldwide, made it imperative for Saarc nations to step up the pace of their economic integration. "We have the potential, talent and resources to make South Asia an economic powerhouse of the world. We must therefore seize the moment or else be content with being marginal players on the world stage," he said.

Courtesy: The Asian Age, March 23, 2004

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UK, India Ink Hawk MoU
 

For £795 million, the UK has agreed to provide 66 Hawk Advance Jet Trainers (AJTs) for the IAF with an assurance of uninterrupted supply of aircraft. It has also said it will not impose any restrictions or prohibitions at any time during the operational life of the aircraft. After prolonged negotiations, the governments of India and UK today signed a formal Memorandum of Understanding. The entire process took almost 20 years to reach a culmination. India will acquire 24 trainer jets in a fly-away condition from Britain and will manufacture another 42 at the Hindustan Aeronautics Limited (HAL) facility. Christened Hawk Mark 132, the first trainer jet will be delivered three years from the day of signing the contract. In the interim period, 75 pilots will train in England in batches of 25 every year along with pilots of the Royal Air Force in what has been described by British High Commissioner Michael Arthur as a ''major joint training programme''. The trainer jets will be located at Bidar.

Courtesy: The Indian Express, March 20, 2004

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India, Philippines Sign Extradition Treaty
 

India and the Philippines are engaged in a "security dialogue'' for the first time in their bilateral interactions, even as they signed an extradition treaty in Manila. The fight against terrorism and inter-state crimes, including drug trafficking and narcotics-related activities, dominated the discussions between the top officials of the two countries. The "security dialogue'' was initiated in the specific context of the recent anti-terror declaration by India and the Association of South East Asian Nations (ASEAN). The Philippines has now joined other ASEAN members such as Singapore and Thailand, in commencing such a dialogue with India. The treaty outlines the criteria for determining extradition-worthy cases on the Indo-Filipino bilateral front, according to diplomatic sources.

Courtesy: The Hindu, March 14, 2004

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India a Mature Nuclear Power: Yashwant Sinha
 

External affairs minister Yashwant Sinha on Friday said India was a "mature" nuclear power and took the responsibility "very seriously." He said it was the imperfect non-proliferation order, which had compelled India to develop nuclear weapons. "It was the imposition of an imperfect non-proliferation order, evidence of which is all around us, that compelled us to make the transition from nuclear abstinence to that of a reluctant nuclear power," Mr Sinha said. Following the 1998 tests, the first thing India did was to declare a "no first use poilcy and a unilateral ban on testing while expressing willingness to enter into negotiations on an fissile material cut off treaty." "Further, India has repeatedly reiterated its commitment to a complete and universal elimination of nuclear weapons. Despite attempts to politically isolate and economically weaken India, its response was to engage the leading nations of the world in a patient dialogue."

Courtesy: The Asian Age, March 13, 2004

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India to take Part: George
 

In a strategic decision that could considerably enhance India's geo-political influence, New Delhi has decided to accept an invitation from Washington to take part in a NATO air exercise in Alaska along with the United States, the United Kingdom, Canada and Japan. Confirming India's first-ever participation in a NATO military exercise, Defence Minister George Fernandes told The Pioneer that it was a great opportunity for the Indian Air Force men to sharpen their skills and make themselves familiar with newer technologies. "These exercises provide an opportunity to learn and finetune your own strategy to meet the demands of the technological changes happening around," he said.

Courtesy: The Pioneer, March 12, 2004

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'Iran N-programme is Peaceful'
 

Iran on Wednesday said its nuclear programme was for peaceful purposes and Washington had attempted to make a hostile case against it, which was unjust. India and Iran will also shortly sign a memorandum of understanding to jointly combat the menace of international terrorism and drug-trafficking. The MoU is also expected to include extradition of criminals. Ayatollah Shahroudi said a final shape was being given to the MoU and the two countries will also cooperate on other aspects of legal and judicial cooperation. The Chief Justice of the Islamic Republic on Wednesday met Chief Justice of India V.N. Khare and is scheduled to meet law minister Arun Jaitley on Thursday.

Courtesy: The Asian Age, March 11, 2004

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India, Brazil & South Africa Boost Trade Ties
 

The India, Brazil, and South Africa grouping has identified key sectors to promote social and economic development. The grouping also decided to form a "Trilateral Business Council" to enhance business and trade between the countries. Foreign ministers of the three countries, agreed to synergise complementaries of the countries, in areas of industry, services, business and technologies. "They further agreed to consider signing of a trilateral cooperation agreement to promote and facilitate trade among the three countries," the "New Delhi Agenda for Cooperation and Plan of Action," released at the end of the First Trilateral Commission meeting said. Addressing a press conference, external affairs minister Yashwant Sinha said that the object of the grouping was to enhance cooperation among countries and spread the goodwill and the message of peace in the world. "It is not against anyone and it has everything positive and constructive on the global scene," he said. Brazilian foreign minister Celso Amorim said "We should not undermine the capacity of the three big democracies in world affairs. We should certainly enrich the energy for use for many problems that the world faces today." The forum has adopted an agenda for cooperation and plan of action which would supplement the understanding among the three countries. The meeting also discussed various multilateral issues which included peace and security, terrorism, sustainable development and social development. The three countries have agreed to operationalise the separate fund for fighting poverty and hunger. Mr Sinha replying to a question on peace and security, said the three ministers took stock of the global security situation concerning disarmament and non-proliferation of weapons and mass destruction. "The ministers undescored that the implementation of and compliance with non-proliferation and disarmament commitments suffered from serious inadequacies, which should be redressed through appropriate forward looking multilateral actions," Mr Sinha said. The ministers also agreed to intensify their cooperation at the IAEA and other forums with a view to ensuring unimpeded growth and development of peaceful use of atomic energy through supply of technology, equipment and material under appropriate safeguards. On terrorism, the ministers reaffirmed their full support to implementing all the measures to combat terrorism outlined in the UN Security Council Resolution 1373.

Courtesy: The Asian Age, March 06, 2004

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India Contributes to Poverty Reduction Facility
 

The External Affairs Minister, Yashwant Sinha, said today that India would contribute $100,000 to a poverty reduction facility being created by the India-Brazil-South Africa (IBSA) Dialogue Forum under the aegis of the United Nations Development Programme (UNDP). In his opening remarks at the first IBSA Dialogue Forum meeting of Foreign Ministers, Mr. Sinha said India, Brazil and South Africa should help redefine the content of globalisation and make it more relevant to the developing countries. Globalisation, he said, should be inclusive and must not result in marginalisation of people and nations. Mr. Sinha pointed out that the IBSA countries had a total external trade of $300 billion and a combined market of 1.2 billion people. The Ministry of External Affairs spokesman said the Brazilian delegation was keen that the three countries set up a trilateral business council.

Courtesy: The Hindu, March 05, 2004

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A Feather in Agriculture Ministry's Cap
 

The Ministry of Agriculture has successfully covered 20,000 farmers under its pilot project, Farmer Income Insurance Scheme (FIIS), during Rabi 2003-04. The FIIS under implementation in 19 districts of 12 states has been a feather in the cap for the ministry. "Progress upto February indicated that approximately 18,000 loanee farmers and 2,000 non-loanee farmers were included," said sources. Minister of Agriculture Rajnath Singh has been repeatedly claiming that if the scheme is properly implemented, no one can prevent India from becoming a developed nation by 2020. The scheme is aimed at compensating farmers for income losses suffered by them not only due to lower than expected crop yield, but also because of their produce being sold below the official minimum support prices (MSPs). The scheme has protected farmers not only from yield losses, but even adverse price fluctuations. "Started to protect farm incomes, it has ensured sustainable production, enhanced food and livelihood security, encouraged crop diversification and increased competitiveness among farmers," ministry sources said.

Courtesy: The Pioneer, March 05, 2004

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India, Brazil, South Africa to Focus on Defence Cooperation
 

The Defence Ministers of India, Brazil and South Africa agreed to set up a separate dialogue mechanism on defence issues during their February meeting in Pretoria, the Foreign Secretary, Shashank, said on Tuesday. Briefing presspersons on a two-day meeting of the India-Brazil-South Africa (IBSA) Dialogue Forum of Foreign Ministers that begins on Thursday, Mr. Shashank said that some "niche areas" could be identified for defence cooperation. He, however, made it clear that the Pretoria meeting was the first and the initial focus could be on bilateral defence cooperation between the three countries. According to Mr. Shashank, the objective of the forum was to make globalisation a "positive force" that would benefit developing countries.

Courtesy: The Hindu, March 04, 2004

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India-Pakistan Trade Barriers Meaningless, says Shourie
 

The Union Disinvestment Minister, Arun Shourie, described the existing barriers to Indo-Pak trade as `meaningless' even as he pointed to the fact that third country and contraband trade is about ten times higher than the $250 million through the official route. Speaking at the inaugural of the first ever `Made in Pakistan' exhibition organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), he said there was tremendous potential for increasing bilateral trade between the two countries. Among the areas identified by him for growth include tourism, energy exchange and high-end manufacturing goods. Referring to the diversion of official trade, he said the colossal loss of government revenue by way of customs duty to both countries is glaring. Mr. Shourie suggested a three-pronged strategy to spur overall development in the region, First, he said development required unwavering focus bereft of hostility, as hostility distracts from the focus on development. Second, there was great benefit in opening up the markets as it would enable the two countries to become more competitive in the global economic environment. Third, he pointed to the huge potential that needed to be tapped in the areas of tourism, energy exchange and high end manufacturing goods. Outlining the three imperatives for the future, he said long term relationships could not survive by calculating gains and losses on every-day basis. Second, he felt that there was a need for steadier business-linkages keeping in view the long-term interest of overall development of both regions. Third, he drew the attention of business leaders of both countries to look at the way power got transferred from state apparatus to outside. It was therefore imperative to strengthen business linkages in all possible sectors, which would have a beneficial impact on development, he said.

Courtesy: The Hindu, March 04, 2004

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India Cosies up to Africa, Offers US$ 500m Credit
 

After "Looking East", India is now turning to Africa.

While New Delhi refused troops for Iraq, it has decided to send forces for peacekeeping operations in the West African country of Ivory Coast. One battalion of troops will be dispatched to Ivory Coast as part of the 6,000-strong UN peacekeeping force there. Under the newly launched move, New Delhi announced a credit facility of US$ 500 million for projects in the economic and social sectors in eight West African countries. India signed MoUs with Burkina Faso, Chad, Cote d' Ivoire, Equatorial Guinea, Ghana, Guinea Bissau, Mali and Senegal to evolve a mechanism of cooperation under the Techno-Economic Approach for Africa-India Movement (Team-9). The goodwill factor apart, countries like Ivory Coast have huge untapped offshore oil reserves. A strategic foothold was deemed essential and so it was decided that India should be part of the UN peacekeeping force.

Courtesy: Hindustan Times, March 02, 2004