Pompeo’s visit to India: What holds for the India-US ties?

The arrival of the US Secretary of State Mike Pompeo to New Delhi brings forth a range of issues that holds ground both for India and the US. As external affairs minister Subrahmanyam Jaishankar sits down for a bilateral with our American counterpart, the aim will be to inject a new energy into a relationship that seems to have been enveloped in crisis. Well, argument about the usage of word “crisis” might surface, but it is worth noting that there have been recent occurrences of divergence over certain issues. Even as geo-strategic issues converge, relations in the economic sphere have remained testy between both the countries.
 
For nearly two decades, Delhi and Washington had shed their Cold war differences and expanded the ambit of their bilateral and multilateral cooperation. Part of the reason includes the rise of the revisionist power such as China, about whom both India and US share common ground. But, differences once again dominate the public narrative. These range from trade and market access, to cross border data flows and India’s purchase of oil from Iran and advanced weapons from Russia.
 
On this front, this piece takes stock of the threemost potent issues that will be on the table:
 
Trade tensions
 
For the White House behemoth who perceives every relationship in a transactional sense, trade seems to be the signature issue. The sharp convergence of US-India on geo-strategic issues has unfortunately seen trade ties deteriorate under the Trump administration. For instance, Trump has often termed India as “tariff king,” citing high tariffs imposed on items such as the Harley Davidson. Indian exporters recently lost preferential access to American markets for several products and the US seems bent on equal tariffs on both sides on tradable goods. It is very likely that Pompeo will discuss tough topics with his Indian counterpart such as GSP, trade barriers for American companies and data localisation. On the latter, it is likely that US might face resistance, since India has explicitly vouched for localisation of data i.e. data to be stored within the geographical parameters of the country.
 
Oil
 
The volatility in crude oil and its impact on Indian consumers is also a potential issue to feature in the discussions. The visit comes in the backdrop of the increasing tensions in West Asia, with the US tightening its screws on Iran. The West Asian country has for so long been one of India’s top oil suppliers, exporting 23.5 million tones in financial year 2018-19. Though India can source oil from other sources, for instance, the US is a likely partner, but the price at which the oil will be brought would hurt the Indian economy. A formidable example includes the time that would be taken for tankers from the US to reach India. While ships can economically sail from the Gulf to India carrying oil quantities as low as 60 to 40 tonnes, a journey from the US could only be possible in large tankers. Also, voyages from US would take around 50 days,while those from West Asia usually take around eight to ten days.
 
On terrorism and Afghanistan
 
Beyond business, the emphasis will also include taking a common view on the conflict brewing in the west of India. While prospects of oil imports from US-blockaded Iran appear negligible,Washington may have no problems with India’s assets in Iran’s Chabahar port, a project that would establish trade linkages with Afghanistan. In this, India would like the US troops to stay in Afghanistan and stabilize the country, rather than cut a deal with Taliban. New Delhi is not happy with the talks that the US is having with the Taliban that could possible indicate full withdrawal of the US troops in the region. India’s Afghanistan policy is majorly driven by pursuit to stymie Islamabad’s influence in the region, where a Taliban-led government could quickly side with Pakistan. The subject of terrorism thus makes it an inescapable feature in the talks, as Pakistan’s influence in Afghanistan will not only reduce India’s sphere of influence, but also make India more susceptible to Pakistani-inspired terrorism in the wider region.
 
Thus, it is widely apparent that given the present status, where both Indiaand the US are at the crossroads of various issues, it is imperative for both to iron out the contentious aspects of it. In this, a non-ideological approach to the negotiations would focus on breaking the irritants to smaller parts, expanding the boundary conditions and creating linkages across sectors. If Washington views this relationship through the prism of transactionalism, then it could wreck havoc for both the countries. In all, the ball is in DC’s court and it is for them to decide.
 
India Outbound
June 27, 2019

 
 

source https://indiaoutbound.org/pompeos-visit-to-india-what-holds-for-the-india-us-ties/

Could libra revolutionise the financial system?

Facebook, in its latest development, unveiled the launch of its own version of cryptocurrency, Libra, which it says would be a tool for financial inclusion and will disrupt the world’s cumbersome payments system. After a period of intense speculation, the massive social network, along with its partners is touting the Libra digital coin that would make sending money across the world as easy as texting. According to the white paper released on June 18 2019, the usage of Libra would do away with fees, delays and other barriers to the free flow of cash.
 
What exactly is the Libra?
 
Facebook calls its new crypto currency, the libra, which was the Roman unit of weigh measurement for scales or balance. Interestingly, Libra, the astrological symbol, holds the scale of justice, and phonetically it sounds like libre, which is French for free or freedom. Thus, the name is a combination of money, justice and freedom.
 
Besides the nomenclature, another factor that makes Libra interesting, is that its market value is tied to a basket of bank deposits and short-term government securities for a slew of historically stable international currencies, including the dollar, euro, pound among others, unlike the bitcoin (that is known for its volatility). So then, the Libra Association maintains this basket of assets and can change the balance of its composition, if necessary to offset major price fluctuations, in any one foreign currency, so that the value of the libra stays consistent. Also, libras will be fully reserved; so every time a user trades traditional currency for Libra, the money will go into the reserve, and stay there until the customer withdraws from the system. All in all, the libra with all its features, assumes the identity of the money rather than an investment vehicle.
 
Another factor that differentiates libra from other cyptocurrencies such as Bitcoin, is that it can process 1000 transactions per second, which means it is actually scalable, unlike Bitcoins and others relying on similar blockchains(widely shared online ledgers that keep track of activity). Another accentuating feature is there will be no service fees, which could save customers plenty of time and money on moving funds across the borders.
 
Clearly the Libra has been well thought of to raise eyebrows around the world. Notwithstanding the exciting make, the commercial potential of using libra is also significant. Say, if each of Facebook’s 2.4 billion users converted a slice of their savings into Libras it could become a widely circulated currency. Also, if broadly adopted, it could alsovest unprecedented power in the hands of the issuer. In that sense, the usage of Libra could be truly disruptive.
 
Another fact that appears novel in Facebook’s approach to Libra is that Facebook wants to outsource the running of Libra to a consortium of worthies recruited from the world of technology, finance and NGOs. In this regard the Libra Association will assume control. Further, this association to be set up in Geneva will run the currency on a equal-vote basis. Its 100 members are to jointly manage accounts, govern Libra’s reserves and take key decisions. This explains the Libra association’s move to a “permissionless structure” (permission means only entities that fulfill certain requirements are admitted to the association).If such a move is established, this will imply an even distribution of control, encourage competition and lower the barrier to entry, which will essentially lead to the libra being decentralized.
 
What’s in it for India?
 
If Libra works, then it could be a money spinner for Facebook, albeit not directly. However, for all of Facebook’s talk about helping the unbanked in developing countries (read India), it seems intent on becoming a major competitor of the existing banking system. Having said that, governments often tend to resent private institutions that infringe on their prerogatives. This explains India’s staunch opposition to cyptocurrencies, even proposing a 10 year jail term for people who handle them.
 
Though much doubt surfaces about Libra being typified as a cryptocurrency, previous instances of the government holding firmly against WhatsApp Pay, refusing to approve the platform’s launch date, is a stark reminder of this, It could well be that inconsistencies that usually accompany such non-fiat currencies might not matter for the Indian users (especially where the libra could reduce service fees for Indians sending money to families), but governance issues could very well stall the adoption of this form of currency in the near future.
 
India Outbound
June 25, 2019

 
 

source https://indiaoutbound.org/could-libra-revolutionise-the-financial-system/

The strain in trade ties between the two economies comes when global economic growth rate is projected to slow down as trade tensions constantly brew between US and China, weighing heavily on business confidence and investments. https://t.co/mdnbTeM7HN

The strain in trade ties between the two economies comes when global economic growth rate is projected to slow down as trade tensions constantly brew between US and China, weighing heavily on business confidence and investments. https://t.co/mdnbTeM7HN

— India Outbound (@india_outbound) June 21, 2019

from Twitter : https://twitter.com/india_outbound

"Since a company that manages to earn huge revenues from the country through remote digital participation, it is only natural that a portion of the company’s profit be allocated based on the market activity undertaken in such country." https://t.co/FEFIIM2XNa

"Since a company that manages to earn huge revenues from the country through remote digital participation, it is only natural that a portion of the company’s profit be allocated based on the market activity undertaken in such country."https://t.co/FEFIIM2XNa

— India Outbound (@india_outbound) June 21, 2019

from Twitter : https://twitter.com/india_outbound

"As a part of the Indian diaspora, I observe that there is a sense of duality in the Indian mindset that fails to understand those who are their own." https://t.co/nTkCOlp0en

"As a part of the Indian diaspora, I observe that there is a sense of duality in the Indian mindset that fails to understand those who are their own."https://t.co/nTkCOlp0en

— India Outbound (@india_outbound) June 21, 2019

from Twitter : https://twitter.com/india_outbound

"India’s foreign policy arc no longer solely rests on forging or balancing bilateral relationships with super-powers (most notably the US), but has reoriented towards its backyard." https://t.co/H5Di9FvRLh

"India’s foreign policy arc no longer solely rests on forging or balancing bilateral relationships with super-powers (most notably the US), but has reoriented towards its backyard."https://t.co/H5Di9FvRLh

— India Outbound (@india_outbound) June 21, 2019

from Twitter : https://twitter.com/india_outbound

"Given that suspicions Huawei’s hardware cannot be dismissed, but it would do India good to realign their strategic alignment and engage with countries objectively." https://t.co/DleKQYviyh

"Given that suspicions Huawei’s hardware cannot be dismissed, but it would do India good to realign their strategic alignment and engage with countries objectively."https://t.co/DleKQYviyh

— India Outbound (@india_outbound) June 21, 2019

from Twitter : https://twitter.com/india_outbound

The trade row between India and the US

Days after the US terminated India’s designation as a beneficiary developing nation under the Generalised System of Preferences program (GSP),India retaliated by imposing higher tariffs on 28 US products.The penalties run as high as 70% and include highly consumed agricultural goods such as almonds, walnuts and apples as well as chemical and finished metal products.
 
The strain in trade ties between the two economies comes when global economic growth rate is projected to slow down as trade tensions constantly brew between US and China, weighing heavily on business confidence and investments. The decision to levy tariff on US agricultural products appears to be strategic – politically it is an important constituency, but India needs to tread carefully. While failure to react could be construed as a sign of weakness, there is a genuine concern that the move could provoke further action. And given that Modi government is keen to pursue an economic foreign policy, it would be in the interest of India to avoid a trade confrontation.
 
A trade war starts when a country attempts to protect its domestic industry and create jobs. Trump’s directive in levying trade tariffs is part of his strategy of wanting to reduce the hefty trade deficit that US has with India,to create more jobs. But what began as a tool to cut down of US trade deficits have quickly morphed into a defining feature of the trans-Pacific trade. Though tariffs are known to work in the short term but in a trade war scenario, all involved countries lose out from lower productive efficiency (in some ways, this depresses economic growth for all) and higher consumer prices.
 
Such a scenario would play out like a double edged fork for India. On the one hand, India would suffer a lowering of the exports and investments, given that US occupies a sizeable share in FDI equity inflows to India, on the other hand straining of economic ties could spread over to other aspects of strategic partnership that both countries share.
 
Apropos, the US perhaps remains the most consequential partner in India’s Indo-Pacific strategy and several US documents including the recent Indo-Pacific strategy released by the Department of Defense, laud the convergence of interest and values between the two countries further a “free, open and inclusive and rules-based Indo-Pacific.”
 
To be sure, India has much at stake in ensuring that economic ties with its largest trading partner do not end up foundering on the rocky shoals of the current US administration’s approach to trade and tariffs. Trade is not and must not be viewed as a zero-sum game. In this regard, negotiations imply a “give and take” between countries and often require a long-term perspective. India’s great power relations are at a turning point where New Delhi has to adroitly manage its security and economic imperatives. Though the trade tariffs could work as a bargaining chip for India in the short run, it would be India’s own interest to manage the relations with US.
 
India Outbound
June 21, 2019

 
 

source https://indiaoutbound.org/the-trade-row-between-india-and-the-us/

Digital taxation and the path ahead

A key take away from the G20 Finance Ministers and Central Governor’s Meeting that was held last week is the creation of a digital tax for multinational technology companies. This simply means that digital companies such as Facebook and Google will soon have to pay taxes regardless of their physical presence or measured profits in the source countries. Though US staunchly opposes it, given that majority of these tech biggies are physically headquartered there, countries such as Japan, India , UK and France have batted for it, citing the need for both regulation and to get a “fair” share of taxes from the revenue generated by such businesses.
 
A world that is increasingly predominated by everything digital evokes the imperative to create a separate framework for taxing these online service providers. A pertinent example includes the increase in value of e-commerce transactions from 19.3 trillion in 2012 to $27.7 trillion in 2016, which outlines the necessity in recognizing the tradability in digital goods.
 
Now, the DNA of this digital economy functions way differently from the traditional brick and mortal businesses. This is because the digital economy is characterized by a unique system of value creation, resulting from a combination of factors such as sales, function, algorithms and personal information of users. Although using consumer data as a metric to drive businesses is not exclusive to the digital economy, it accumulates a large space in the revenue map of technology companies, where value created by user participation translates into revenue.
 
It was the European Union that initially floated the idea of a Digital Service Tax (DST). The proposal for the DST directive was intended to establish a common system for the taxation of digital services for revenues generated by the supply of these online companies. It mandated that a company established in a member state offering digital services in other member states would have to pay a 3 percent DST in each member state where revenue is generated. Despite the promise in initial intentions, the policy stifled short of achieving a unilateral consensus and is pending as of now.
 
On a similar angle, India too adopted some unilateral measures. A reckoning was made with the accommodation of a 6 % equalization levy (EL) within the Finance act 2016, for specified digital services (particularly advertising services) provided to residents in India. However, are cognition of the burgeoning digital economy paved way for an expansion of the business connection to “Significant Economic Presence” (SEP) that includes digital services under the Finance Act 2018.
 
What is interesting is, an evaluation of these companies in an SEC report lists two major components i.e. user participation and marketing tangibles under profit allocation. But, it is the issue of user participation that leaves one befuddled. Although, it is known that these tech companies often generate massive value through highly engaged user participation from source countries, but since this assessment of the value of user contribution is non-quantifiable, determination of a taxing threshold becomes difficult. So even at the behest of recognizing the virtual space as constituting a nexus for the purpose of taxation becomes novel, but it clearly lacks the metric of user threshold.
 
Thereby, since a company that manages to earn huge revenues from the country through remote digital participation, it is only natural that a portion of the company’s profit be allocated based on the market activity undertaken in such country. But, to do this would include deliberations by policy makers to devise a methodology to assess the user contribution objectively, which would in turn then lead to efficient taxation.
 
India Outbound
June 19, 2019
 
 

source https://indiaoutbound.org/digital-taxation-and-the-path-ahead/

The Living Bridge and a sense of duality in the Indian mindset

The quest to India has historically been to attain dominion of aluxurious plateau, which determined economic and global prosperity of its acquirers. India in its very being was localised in its strength, demarcated internally by regional, cultural and social boundaries. Conquering India has determined the might, fate and valour of many countries that in today’s day and age have emerged as global superpowers.Considering the ongoing Brexit negotiations and India’s creditable economic growth, a dialogue between world’s oldest democracy and the largest democracy would reinvigorate a strong partnership. An episode that started with the establishment of the East India Company in Calcutta, the relationship between India and Britain is one which has withstood the test of time.
 
In 1947, India stood up for itself to combat years of social misconstruction and disharmony, regulating the numerous princely states under a central power to rebuild a country premised on a strong constitution. Our governance and judiciary boldly adopted the English legal system, which is founded on the principles of common law. Least to mention, its commendable political prowess, which has long adopted the principle of “Diversity and Inclusion” is internationally studied and applauded.
 
India has grown enormously since its independence and one of the key factors in its favour is its population, which comes from various regions possessing ingenious talent and intelligence. India is not limited to its geographical parameters. It extends from the farmers in the remotest villages in India feeding masses, to the law-makers of countries across the world. Needless to say, our agility and perseverance has blurred lines of discrimination and incompetency in global competition. Despite our exemplary stronghold at unifying diversity and hard work, there is a lack of connect between an average Indian person and the system that he/she should be able to look up to.
 
As a part of the Indian diaspora, I observe that there is a sense of duality in the Indian mindset that fails to understand those who are their own. There is a clear distinction made between Indians living in India coming from North, South, East and West, and of another breed altogether-the Non-Resident Indians. We grapple with the nuances of customs found in various regions, where not one regional tradition entirely tallies with another. This distinction seems to be nourished at every level, in a strange bureaucratic fashion; from education institutions to obtaining government services that every Indian (regardless of their status) is rightfully entitled to.
 
Naturally, this distinction brews a sentiment of detachment towards our country that contains huge potential for growth. Our wealth of diversity and experiences are not implemented optimally to benefit the wider cause of strengthening our grip as global performers at development. I consider India to be a culmination of “little Indias,” situated in various other countries and spread across the world, where they act as brand ambassadors of India as a whole.
 
India is not limited to an average taxpayer or farmer in India, but extensively includes a person who has made a mark on an international platform in a foreign land. This person is a part of the Indian diaspora- a cornerstone of India’s progress today. The diaspora is the part of the same Indian fabric that perhaps is more unified by reason of nationality on foreign soil, who have learnt that strength lies in accepting differences and learning about them. A lot needs to be done in the policy making space to incorporate the incredible amount of exposure, experience and value that the diaspora can bring to the Indian table of governance. For instance, education institutes need to be more accessible to all Indians equally; and infrastructural analysis needs to encompass needs like those of developed countries.
 
As a qualifying lawyer educated in the UK, I am faced with a common question as to whether I can practice in India and how that is strange considering the laws in India and the UK are different? The striking feature of this question is unawareness. It is not just the legal industry, but in various spheres, there is a dire lack of information and awareness of our own calibre. Our champions of Indian independence- Mahatma Gandhi, Pandit Jawaharlal Nehru, Dr B. R. Ambedkar and many more, were all educated in the UK and brought about a revolution in India that gave billions of us our identity as Indians. If what they brought back with them in the early 20th century gave us independence, today we have a wider reach, exposure and authority on some level that can help us bring out the best for our country.Today, we have over 10 MPs of Indian origin in the current UK Parliament and if we view this broadly, it is a matter of immense pride. A country that ruled us for over two centuries, now includes our fellow Indians for governance and law-making in their country.
 
As we study India carefully, it is a country that is based on a robust foundation, which devolves and branches out intricately, but there is a need to bridge a gap found at a local level amongst these regional differences and vibrant cultures. Knowledge is power and the more we learn about our own internal dynamics, we would be able to progressively move forward. To encompass our international acumen, our diaspora is the network that brings us a global identity. It is that resource that gives us a voice to dictate global economics and politics.
 
India needs to create opportunities to facilitate a holistic and fair exchange of talent and resource for its diaspora to enhance the voice of the nation, for us to be able to exercise our constitutional rights and ask our government the right questions. There is a need to actively bridge the gap between our rich history and our future. India needs to invest in its human resource that internalises global change and equally contributes to it. It is the living bridge that if provided for and developed optimally,promises a brighter future and a pool of international opportunities for the nation by the time it meets its centenary of independence.
 
To read the original article, please click here.
 
Bridge India
June 18, 2019

 
 

source https://indiaoutbound.org/the-living-bridge-and-a-sense-of-duality-in-the-indian-mindset/

China is spearheading the next-gen technology and India would do best not to miss it

Gone are the days when the world particularly the United States used to look down upon the Russian and Chinese internets. But that has all changed with Huawei becoming the springboard of Chinese technology. Established in 1985, Huawei started as a private technological startup by Ren Zhengfei, a veteran of the People’s Liberation Army’s engineering corps, rose to become one of the predominant players in the telecommunications industry by grabbing a 29 percent market share in the industry.
 
Huawei’s growing dominance
 
More importantly, Huawei has by most accounts taken the lead in the technological race to develop one of the modern world‘s most important technologies-fifth generation mobile telephones or 5G. More so, it is has also surpassed Apple to become the second-largest smartphone maker.
 
Perhaps for the first, in China’s modern history, Huawei’s growing market share and technological prowess are putting the Chinese government in a position to dominate the next-generation technology. 5G technology time will support next-gen digital applications and will permit ultra-fast, low latency and high thoroughput communications that will be important for consumers. Further, 5G will also be the technology that ensures artificial intelligence function seamlessly, that driverless cars will not crash among others.
 
In short, 5G will become the nervous centre of the 21st century economy and if Huawei continues its rise, then it is Beijing, not Washington, which will be poised to call the shots in the market.As a result, Huawei’s startling ability to gatecrash what has until now been considered an exclusive bastion of the developed worldhas sent ripples across the western front.
 
Why is it controversial?
 
However, the rise of Huawei has been mewith much consternation who has asserted that the company poses a national security threat. Moreover, the US, without any fruitful evidence has claimed that allowing the company to be involved in the build-out of the 5G networks raises unmanageable security risks because of the nature of the technology and the nature of the relationship between the Communist Chinese Party and the technology companies. Also, given the fact that there will be huge amounts of data on 5G networks both, in the core and periphery, this might result in creating vulnerabilities not present on 3G or 4G networks. In this, Washington has been pressing allies to keep Huawei out of mobile networks, warning that Beijing could use the sensitive data infrastructure for spying.
 
Tasks cut out for India
 
In India, Huawei is one of the prime contenders for sourcing technology for 5G infrastructure. While India has not absolutely refrained from inducting Huawei, has a potential market, but indeed, there are security concerns. This has been explicitly stated by telecom Minister Ravi Shankar Prasad who stated that it is not merely a matter of technology, where Huawei’s participation in 5 G is concerned, rather it also involves a “security” angle to it.
 
Given that suspicions Huawei’s hardware cannot be dismissed, but it would do India good to realign their strategic alignment and engage with countries objectively. In this regard, it would be best to let Indian service providers to use their own technical expertise to assess such espionage risks. For an optimum policy , where both national security and economic prosperity are intertwined, India would do good to adopt a measure that will not only preserve its immediate interest, but will also enhance its technological capabilities.
 
India Outbound
June 17, 2019
 
 

source https://indiaoutbound.org/china-is-spearheading-the-next-gen-technology-and-india-would-do-best-not-to-miss-it/

Modi neighbourhood policy: The Shanghai Cooperation Summit

Under Prime Minister Modi’s leadership, the Neighbourhood First policy has received fresh impetus. India’s foreign policy arc no longer solely rests on forging or balancing bilateral relationships with super-powers (most notably the US), but has reoriented towards its backyard. In his government’s strategic imagination, India’s relations with neighbouring countries must receive the topmost priority. This article takes stock of India’s pivot to Eurasia, underpinned by the Shanghai Cooperation Summit (SCO),being held on June 13-14, Bishkek, Krygyzstan.
 
Modi is often known for projecting himself as an innovative and decisive leader who could make things happen. This was evident from his invitation to the leaders of from the South Asian continent to attend his inauguration in 2014. True to his style, this time too,he invited leaders from the BIMSTEC grouping, along with leaders from the Krygz republic and the Maldives that reaffirms the government’s strategic focus.
 
His outreach to his Krygyzstan counterpart, who is also currently the chair of the SCO, is the one that deserves attention on this context. For long, where India had been merely cognizant of the forum (given that it had been an observer until 2017), the recent invitation clearly signals India’s desire to increase its engagement with the organization.
 
History of the SCO
 
Having begun as the Shanghai Five in 1996 to resolve border disputes between China and four other members i.e. Russia, China, Kazakhstan, Tajikistan and Kyrgyzstan, the forum re-christened itself as the SCO in 2001, after the admission of Uzbekistan. The forum, which primarily started as a security organization, with a moderate ambition of managing border skirmishes and jointly combatting the “three evil forces“ of terrorism, separatism and extremism,has evolved to include in its agenda, political, economic and security cooperation.
 
The SCO opportunity
 
The admission of India and Pakistan in 2017 has expanded the geographical, demographical and economic profile of the SCO, where the grouping currently represents 42 % of global population,22 % of land area and 20 % of global GDP. The SCO’s relevance for India lies in geography, economics and geopolitics. Its members occupy a huge landmass that lies adjacent to India’s extended neighbourhood, where India has both economic and security imperatives.
 
Since the breakup of the Soviet Union, the optimal development of India’s relations with Central Asian countries has been constrained by both political and security reasons. Incidentally, the factor that had actually pulled off India from its formal participation in the summit is the overwhelming Chinese presence in the forum. As Robert Kaplan explains in The Revenge of Geography, where given the idea of a Eurasian integration is organic, its avatar is decidedly Chinese. This is further exemplified by the fact that India is the only country to oppose the BRI (Belt and Road) initiative where, the other SCO members have embraced it.
 
India’s strategy at SCO
 
Given that conventionally, SCO has been a China-led forum with an overwhelming economic presence, it is in India’s interest to carve out a political and economic space for itself in Central Asia. Following the disintegration of the USSR, where both Russia and China have attempted a joint influence over the region, the Central Asian countries would welcome India in breaking into this duopoly.
 
Further, all of this definitely plays out in the broader scheme of things where India is looking to broaden both its economic and strategic engagement. In this sense, the SCO will act as a lever that not only aids India in enhancing its economic cooperation with the Eurasian states, but will also allow India to benefit from the security framework, especially on counter-terrorism. Also, the issue of global terrorism, situation in Afghanistan and the connectivity project through Iran are some critical subjects that essentially ties with the importance of India’s association with the SCO. And this in itself is enough fodder for India to capitalize on the platform to consolidate itself both on the economic and strategic front.
 
India Outbound
June 14, 2019
 
 

source https://indiaoutbound.org/modi-neighbourhood-policy-the-shanghai-cooperation-summit/

PM Modi’s eastward shift in neighbourhood policy

To a foreign policy analyst, Prime Minister Narendra Modi’s first visit abroad in his second term to Maldives and Sri Lanka was expected. Where the first tenure saw Modi carefully harvesting relations with our neighbours both through bilateral meetings and multilateral conventions, his second tenure is about consolidating those dividends that he had reaped during his first tenure.
 
The visit to Male and Colombo strengthens the government’s emphasis on the Indian Ocean island states in its regional geography. While clearly, the invitation of the BIMSTEC leaders reflects a new shifting interest for New Delhi focused on eastward connectivity and economic integration, the visit to these two Indian ocean littorals gives an energy booster to his “Act East” policy. On a similar plane, External Affairs Minister S. Jaishankar’s visit to Bhutan underscores the eastward shift, where between Modi and Jaishankar the focus on India’s neighbourhood was unmistakable.
 
Between the leaders present in Modi’s swearing ceremony over the years and his early high-level travels, a redefinition of the concept of neighbourhood comes forth. This indicates that the Indian Ocean, the Himalayas, Central Asia and South East Asia (by way of the Indian north east) are the strategic loci of his foreign policy. Following the plummeting of ties between India and Pakistan since late-2016, these trends have already been building for some time now.
 
Modi’s visit to Maldives
 
With the Maldives, PM Modi’s visit was astutely designed to showcase that a turnaround has taken place in India-Maldives relations, given the election of a pro-India government in the island country. A slew of announcements, including those focused upon people-centric welfare measures, dominated his visit along with the implementation of an $800 million Line of Credit to the nation. With this, the PM’s visit to the island nation underscores three important objectives; one to continue high-level contacts between close neighbours, assist as developmental partners and strengthen people-to-people ties. Such measures are a stark contrast to China’s approach of extending massive loans for mega infrastructure projects which often results in debt-traps for the host nation.
 
Modi’s visit to Sri Lanka
 
PM Modi’s visit to Colombo was prudent. As the first foreign leader to visit a country that is still reeling under the dastardly attacks of the Easter Sunday, his visit was primarily aimed at expressing solidarity with both the people and the government of the nation. India has already invested in a slew of projects in Sri Lanka since 2017 and thereafter, his visit also signaled a commitment to continue bilateral cooperation on those developmental projects.
 
Moreover, given that India-Sri Lanka already shares a relation fraught with complexities (owing to the Chinese influence in the region, a classic example being the Hambantota Port), PM Modi‘s visit as the first international leader sends a powerful message in the neighbourhood.
 
What has been palpable in these overseas visits is that under Modi, India’s outreach to the neighbourhood is primarily driven by concerns about China. While given the overbearing Chinese influence in India’s own backyard, the overarching messaging from the Indian side has sought to affirm what countries could gain by engaging with it. As Minister of External Affairs, S. Jaishankar has correctly stated that India’s neighbourhood policy had to be “more generous” and freed from bureaucratic reciprocity. With a fresh and powerful mandate combined with creative intelligence the Modi government is well placed to do it.
 
India Outbound
June 13, 2019
 
 

source https://indiaoutbound.org/pm-modis-eastward-shift-in-neighbourhood-policy/

"I’ve always found it strange yet heartwarming that in a foreign land, Indians mesh together and open their hearts, overcoming the same lines that separate us back home. " https://t.co/OSbV4vG3M4

"I’ve always found it strange yet heartwarming that in a foreign land, Indians mesh together and open their hearts, overcoming the same lines that separate us back home. "https://t.co/OSbV4vG3M4

— India Outbound (@india_outbound) June 13, 2019

from Twitter : https://twitter.com/india_outbound

“I want to influence my three children (age 14, 19, 23) to have a connection with India, but how is that possible, if I myself do not have a relationship with India?" https://t.co/vswjAOfdy8

“I want to influence my three children (age 14, 19, 23) to have a connection with India, but how is that possible, if I myself do not have a relationship with India?"https://t.co/vswjAOfdy8

— India Outbound (@india_outbound) June 13, 2019

from Twitter : https://twitter.com/india_outbound

"The meta lessons from the trials of India’s elite institutions expose the stark divergence between the rule of law in practice and on paper. The harsh truth is that politicians are often swayed by power and tempted by the prospect of control." https://t.co/4HIcx1Gofb

"The meta lessons from the trials of India’s elite institutions expose the stark divergence between the rule of law in practice and on paper. The harsh truth is that politicians are often swayed by power and tempted by the prospect of control."https://t.co/4HIcx1Gofb

— India Outbound (@india_outbound) June 13, 2019

from Twitter : https://twitter.com/india_outbound

Whath made foreign policy analyst C. Raja Mohan suggest that Modi’s foreign policy has been “revolutionary”? https://t.co/eaQMk5JlNs

Whath made foreign policy analyst C. Raja Mohan suggest that Modi’s foreign policy has been “revolutionary”?https://t.co/eaQMk5JlNs

— India Outbound (@india_outbound) June 13, 2019

from Twitter : https://twitter.com/india_outbound

"Following the United States and Germany, India continues to be the third largest source for FDI into the UK in 2019." https://t.co/rUjyiZptM5

"Following the United States and Germany, India continues to be the third largest source for FDI into the UK in 2019."https://t.co/rUjyiZptM5

— India Outbound (@india_outbound) June 13, 2019

from Twitter : https://twitter.com/india_outbound

The Global Desi

India is erupting in a chaos of identity. News headlines streaming out of the country highlight divides along caste, community, clans and religions, making us wonder if there is anything that we truly can call Indian.
 
Those who’ve spent large phases of their lives outside India have the added dilemma of national identity. I’ve always found it strange yet heartwarming that in a foreign land, Indians mesh together and open their hearts, overcoming the same lines that separate us back home. When faced with the uncertainties of a foreign culture, we possess the humane capacity to seek out connection over commonalities and approach our differences with curiosity.
 
Winston Churchill once referred to India as “merely a geographical expression.” Indian history is littered with examples of diverse cultures, religions and communities co-mingling at times with mild disturbances and sometimes through the turmoil of violence. Fareed Zakaria, in his essay on “The rediscovery of India,” says that we have always existed as a “loose confederation” for much of history so much so that even when single rulers held dominion, they did so by sharing it with “vassals” and “letting local traditions flourish.” This therefore begs the question, is there a cohesive idea of what it means to be India? Who or what is being Indian?
 
Whenever I’m asked where I’m from, I find myself struggling to provide a succinct yet honest answer. It is hard to judge what the questioner is really pushing to know. Do they mean where I live, perhaps where I was born, which ethnicity I belong to or some variation of all three. I have no simple answers for any of these and I believe that’s the parallel of the global Indian diaspora.
 
It would be unfair to delve into the tangled web of my identity as an Indian without sifting through the sands of my family’s past.My heritage is a long drawn out love affair with the glorious complexities of India. I’m a Tamilian from Kerala, which means my ancestors travelled thousands of kilometers from the border villages of Tamil Nadu into Kerala looking for better economic prospects. That made us uniquely bilingual, speaking a language that effortlessly mixed both Tamil and Malayalam but it also for generations henceforth, made us a clan of vagabonds who didn’t really fit into either state. So, we remain conspicuous in our difference as “Palakkad Tamilians,” perpetually straddling two states.
 
My parents however, each grew up outside of South India, spending time in Mumbai, Nagpur and Kolkata. This imbibed in them a more pan-India feel as they spoke both their mother tongue and also languages of the cities they were in. My mother spoke six languages and my father three. My parents were never quintessentially South Indian. My father given a choice would belt out a Kishore Kumar song before MS Subbulaxmi’s and mother felt at equal ease with both DurgoPoojo and Onam. Yet, they were South Indian in their soul and in their approach to life’s simplicities. It was into this mixed concoction of identity trails that I was born.
 
From an early age, I could sense my parents’ ambivalence about where they belonged.They were equally comfortable with Maharashtrians and Tamilians, yet somehow, they weren’t either. I inherited this confusion and only confounded it.
 
I was raised in both Oman and the UAE. Gulf countries have a huge expatriate population with Indians constituting the largest in the 90s. For us, it felt like another state in India but with better infrastructure and standardof living. Oman was a wonderful place to grow up in, for it retained a certain humility that the neighboring, flashier countries didn’t. The Sultan had studied in Pune and therefore had a soft corner for Indians. He was also very secular so there were several places of worship constructed to make the Indian community feel belonged. My parents found a lot of solace at the temples. It was a weekend ritual for us, like several families, to first attend the Krishna temple, followed by Shiva’s. Like clockwork we would see vehicles arrive at the parking lot and the same families, week after week, descend upon the altar to strive for some semblance of what community felt like back home in India. We laughed and played and sang and prayed within the intricately carved walls of the temples, but the longing for the security of home always hung in the air like a grey cloud.
 
The Middle East is unique because we’re never afforded citizenship yet we spend decades calling it our home. Some of my friends were born in either Muscat or Dubai, yet were legally always Indian. It’s a strange dichotomy. Our parents always lived in the shadow of uncertainty in these countries yet, it was where we continued to build our lives. When my parents moved to the United Arab Emirates, it was a culture shock for me. People here were more modern and abreast with the global pop-culture than in Oman. I was branded as too Indian amongst my classmates in my new school and I’d spend the next seven years trying to overcome that tag. It was ironical that at an Indian school, where we primarily studied Indian history and culture,what was required to be accepted was shedding my Indian-ness. Western themes dominated arts and extra-curriculars, which made our school stand out like a shining beacon amongst all the other Indian schools. These actions only deepened the divide in my formative Indian mind.
 
Since the expatriate population was transient, the education system didn’t really allow for inter-mingling among the varied communities. We lived parallel lives in silos; Indians, Pakistanis, Lebanese, Syrians,British and Americans living in our own organically formed areas and attending schools made for our nationalities. Although we didn’t’ get to interact with them very closely, we were aware of each others’ presence and this exacerbated the need to want to move beyond the identities of being Indian.
 
It was a common theme for friends to visit their extended families in India but complain about the facilities and how far behind they were in their global awareness. For some reason, I always felt welcomed and at peace more in India, in my grandparents’ home than I ever did in Dubai. Perhaps it was the simplicity of the culture at that time. Pre-liberalisation India was immune to the over capitalistic demands of the West and there a palpable sense of contentment amongst majority of middle class, who found joys in their community. To my child’s brain, it looked like happiness. Even our TV shows in the 90’s reflected the trend of the common man(woman) finding simple pleasures through human connections in an otherwise seemingly complex world. In the Middle East, I always felt detached.
 
Moving to the UK for my undergrad was an expansive experience yet it also made me acutely aware of my sudden minority status. I wasn’t a second generation British Indian, nor was I strictly an Indian bred in the Motherland. I was an in-between waif trying to establish my identity, by feeling my way through all shades of Indian-ness. Finally, I realised that I was such an entanglement of global and Indian, that all efforts of parsing the two were futile.
 
I cherish my global perspective and the broadening of my mindsets through my exposure to multiple cultures, situations and lifestyles. It has made me a seeker of experiences that constantly shatter my beliefs and opens me to new learnings. However, my spirit remains deeply rooted in India and all its messiness. It’s in India that I feel most belonged, where I have no question of whether I am accepted or not. It’s where I’ve lived for the better part of the last decade, save a few years in Boston in between.Of course, I am conscious of the privilege afforded to me in terms of my economic status, which plenty of people belonging to minority communities donot have. Perhaps, it is this very privilege that keeps drawing me back here because in India I’m at the top of the pecking order. It’s also where I want to contribute the most.
 
So, to come back to my initial question of what it means to be an Indian, as an NRI, I’d say it is a feeling.It’s the fluttering of our hearts when we hear the National Anthem, or the euphoria of seeing Tendulkar hit a sixer out of the Lord’s stadium or the thrill of seeing ISRO launch its own satellite. India is the warmth that flows from all corners of the world as volunteers set up shelters and rescue operations in the flood-ridden state of Kerala. I was recently at the Wagah Border where the theatrical display of valor and national pride are at their hyperbolic best, achieved primarily through the unabashed use of chants, slogans and patriotic songs. We are, it seems a people of exaggerated feelings.
 
To me, India is an emotion that stays wrapped in the distant corners of our mind and unfurls at the faintest trigger of belonging. Being Indian therefore, is just an expression of that emotion.
 
Bridge India
June 12, 2019

 
 

source https://indiaoutbound.org/the-global-desi/

Building the next chapter of the British-Indian story

Stories are powerful. Values, culture, morals and tradition are communicated through stories. Stories capture our imagination and can inspire change. In this section, I draw on three real stories to illustrate personal experiences of British-Indians who have engaged with India through service, the broader impact this has led toand lessons we can draw out to move forward. By creating more such authentic journeys, we have the ability to create a new rite of passage for the next generation of British-Indians.
 
“It’s given me a sense of purpose”
 
Anand is now studying Economics at one of the top 10 UK universities and aspires for a career through which he is intellectually challenged. He grew up in a non-ethnic, middle class area of the UK, which was very far from regular Indian community activities. Anand grew up in a tight knit family that practiced Indian customs and traditions in their home. At the age of 17, he participated in a 12-day programme that took him to India, where he interacted with inspiring change-makers; he spent time with chai walas, farmers and children in slums.
 
He said on his return, “It’s given me an insight into my father’s childhood. Although they were unfamiliar, I felt connected to the people I met there and what I experienced has pushed me to think harder about global issues and to look within myself and understand the journey I want to pursue. It’s given me a sense of purpose to do more with my future.” Anand said that his experience in India inspired him to develop a social enterprise that addresses the issues of food waste and homelessness, while at University. This was only his second visit to India. He was with his peers with whom he could share and reflect on his experiences.
 
A key insight to draw from this example is the need to plant seeds during these formative years. Facilitated visits such as this one, have the potential to shape how these young people see the world and their role in it.
 
“Sentiment can be used to jumpstart a deeper exploration”
 
Laxmi sought to feel closer to her grandfather, whose roots were in India. Community service was a central practice of his life, so volunteering felt like a way to understand both him and herself better. Laxmi served with an NGO that worked with children who were boot polishing, rag picking and begging out of the necessity to provide income for their families. Laxmi came away from her experience with a deep sense of responsibility towards the efforts of the NGO and believed that physical distance shouldn’t be a barrier to support their work. She went on to start a UK-based social enterprise to retail the products made by these children and others that work with similar ethos and values. This effort serves as a way to open a global market for these products, while also connecting the lives of those children to people in the UK. As part of her community activities in the UK, she mentored a 20-year old through a youth leadership programme. It was through this that she inspired him to explore his relationship to India, one which he had not considered before.
 
A key insight to draw here is that sentiment can be used to jumpstart a deeper exploration for one’s relationship to India. The ripple effect of a single person’s experience will inspire others.
 
“Exchanging skills and time through service”
 
Gibran, qualified as an architect and was accepted to a fellowship programme, through which he served with an NGO in Tamil Nadu to rebuild housing in communities affected by the 2004 tsunami. Inspired by his experience, he stayed on in India to work with a Kutch-based NGO, supporting slum communities, to build affordable housing. Through his experience, he was called to advise international development NGOs in Nepal and Pakistan, after they were hit by earthquakes. He now works for the UK Government to find solutions to the challenges of urban slums around the world. Rather than seeingtime in India as a gap year, time spent constructively working on complex social issues has the potential to fundamentally shift a person’s career trajectory.
 
A key insight here is that when people utilise their skills towards a shared goal with the local community, there is mutual benefit, which builds a deeper more equal connection.
 
A Call to Action
 
We are at a critical inflection point for the British-Indian community’s connection to India. As the stories of those Indians that came to the UK in the late 1960’s start to fade, we must look ahead to where the new stories connecting us to India will come from and what they will entail. The children born to British-Indians, who have lived their whole lives in the UK, will have even more distant ideas of India. There are other 5th generation Indian diaspora groups such as Dutch-Indians, Guyanese-Indians and many more we can look towards to see the direction the British-Indian relationship with India may take if we do not act now.
 
India has a vibrant social sector, which spans from faith-based charities to innovative technology led social businesses. There are dynamic people at each turn, whose sheer determination demonstrates the strength of human will, to shift how we look at an issue as somebody else’s problem or a challenge that we can help to address. Being exposed to this is both humbling and empowering. The NGO sector in India needs more than just foreign remittances. By connecting young people through direct service, they will build a far deeper connection, which will likely result in them being advocates of this work when they return to the UK.
 
We require foresight. When initiating any new programmes, we must keep at the forefront of our mind the British-Indian children who are growing up. When they reach the age of 16, will they have the opportunities or desire to build their own relationship with India, grounded in their own experience? It will take at least six years to design and mature programmes that will enable these youth to connect to India in ways that will embrace the diversity of their aspirations. By having a clear focus on building ways for those between the ages of 16-26, we will be able to positively influence them in their formative years.
 
To achieve this, we must continue to ask searching questions and we must listen to young British-Indians of today. This is not an academic exercise or words left behind in a conference. There is so much more to understand about the British-Indian relationship to India, however, we must act with urgency. We must build a deeper understanding of how they experience the world, their aspirations and together start to shape what this future relationship with India looks like.
 
Bridge India
June 11, 2019
 
 

source https://indiaoutbound.org/building-the-next-chapter-of-the-british-indian-story/

How can we influence the next generation to have a connection with India when we don’t have one?

Each month, at least four young British-Indians who want to serve in India, reach out to me for advice on how should they go about doing so. However, whilst young diaspora is keen to engage with India and this is also a part of India’s agenda, the channels to do so are limited to short term activities. This disconnect leads us to ask what more we must do to make it possible for young people to connect to India through service.
 
Over the years, I have had numerous conversations with 3rd/4th generation British-Indians to understand their relationship to India. Them presuming I wanted to hear why India was important to them automatically limited our understanding of “their relationship to India.” The reasons for their connection to India are largely sentimental, passive and distant; whether these reasons are based on ancestral roots, religion, pop culture or ethnicity. As these conversations go deeper, we realise they are mostly based on the past and they struggle to find forward-looking reasons for why India is relevant to their aspirations and priorities.
 
Looking at the broader context, research over recent years has highlighted that the success of the British-Indian community has been particularly strong across various socio-economic indicators, including employment and education. The efforts of 1st/2nd generation British-Indians have enabled the 3rd/4th generation British-Indians to pursue opportunities with a higher degree of freedom and choice, often underpinned by family stability and financial security. However, recent studies suggest that this may not necessarily be enough; the millennial generation are seeking more. This is a generation that is witnessing in real time the rise of trailblazers such as Steve Jobs, Mark Zuckerberg, Elon Musk and organisations such as Google that are redefining what ‘work’ looks like. As well as being inspired by such stories, they are being challenged by major shifts in the political landscape such as Brexit, the urgency to find global agreement on issues like climate change and growing social inequality. This generation wants to be inspired in their work, feel connected, be a part of something bigger. They seek purpose, they seek first hand experiences and it is in this aspiration, where the opportunity to connect them to India through service exists.
 
Service offers young people an opportunity to connect to something greater than themselves and simultaneously, India’s vibrant grassroots development sector can benefit through this exchange of enthusiasm, skills and time. By listening to those who have served in India, it is evident that there is immense personal growth through this process. Volunteers engage with inspirational change-makers and peers, they build empathy, ownership and self-efficacy to effect positive social change. This development of personal-leadership often translates into them doing more in their home country. They carry forward with them a new perspective on their role as citizens in society, often raising the bar on what success looks like, as being more than just social status or material wealth. They become strong role models, guided by their values, rooted in their own experience.
 
Underlying this conversation are important questions about one’s identity; how does India play a role in how we see ourselves and equally importantly, what role does India play in how others perceive us? Dinesh Kerai, a 2nd generation parent says, “I want to influence my three children (age 14, 19, 23) to have a connection with India, but how is that possible, if I myself do not have a relationship with India? I want my children’s future in our interconnected world to be grounded in a strong sense of who they are.
 
As India grapples with global issues such as poverty, while also pushing the boundaries of space technology, it plays an influential role in shaping our future. I feel fortunate that through my heritage my kids can access the opportunity India presents. I believe that through purposeful service in India, they will be anchored and will nurture a strong moral compass that not only shapes their life, but also touches those around them, wherever they are.” For many of the British-Indian diaspora, this is an emotive, multifaceted and deeply personal dialogue which changes for each person as they grow through different stages of their life. This has been explored further in an article titled “What is the relationship you would like your grandchildren to have with India?”
 
Historically, another way that British-Indians engage with India is through charitable giving and remittances. The nature of this giving varies between generations. Whilst, there are several fundraiser balls hosted in the UK by prominent India based NGOs, they largely attract a particular audience who do not represent young British-Indians. The broad scope of charitable giving in the British-Indian community has been explored through an article titled “The need is right where we are”. Through this article, I urge that we think ahead about the changing relationship of 3rd/4th generation British-Indians and the impact this trend will have on charitable giving.
 
We may also applaud other diaspora groups in the UK, including the Jewish and Afro-Caribbean community on how they have engaged and nurtured their next generation of leaders. They have done so by intentionally investing the time, mentorship and financial resources for these outcomes. We can draw on examples from the Prince’s Trust, The Young Foundation and the RSA Millennium Fellows programme on how we engage young British-Indians in different ways. Envisaging an active and collaborative relationship between 3rd/4th generation British-Indians and India is a dynamic, vision building process which will require commitment, resources and patience. The initiatives we build, should tie together to create a ‘Living Bridge,’ ensuring there is continuity of opportunity, as we grow a community of young people with a shared experience who will together define the next chapter of the British-Indian story.
 
Bridge India
June 10, 2019

 
 

source https://indiaoutbound.org/how-can-we-influence-the-next-generation-to-have-a-connection-with-india-when-we-dont-have-one/

Modi 2.0: The fate of institutional autonomy in India

One of the factors that impacted Modi’s 2014 mandate was his image as a reformer who promised to slay crony capitalism, weed out corruption and policy paralysis. Underlining this image, what emerged was his highly centralized style of working that centered in most of the discussions in the policy circle. Although the decisive mandate in 2019 symbolizes the acceptance of the man by the political capital, trepidation still prevails among the Indian polity. This relates to the safeguarding of institutional autonomy or encroachment into institutional spaces.
 
An analysis of Modi’s past performance in governance explains the uneasy relationship that has persisted between the state and the institutions. The controversies surrounding the RBI, Election Commission (EC), judiciary (SC) among others, indicates the “flailing nature” of our institutions. In other words, the crisis or confrontation that has erupted between the government and the institutions has laid bare the crisis of credibility. These events and the systemic infirmities they point to makes one wonder about the health of India’s elite institutions.
 
The Reserve Bank of India
 
The Reserve bank of India established in accordance with the provision of the Reserve Bank of India Act 1934, has evolved over the years and is provisioned to function with institutional autonomy. However it was during demonetisation in 2016 that truly undermined and jeopardized RBI’s autonomy. A close look at media reports highlights not only that the RBI advise during the exercise was ignored, but it was informed pretty much the same time as the public and then had to scramble for months to do damage control. With demonetisation becoming a clearly failed policy, as it becomes explicit with the return of the devalued currencies into the circulation, it clearly shows that the government had not taken stock of RBI’s warning that the move was “dangerous” for India. Also, the fact that the Government of India still unilaterally decided to implement such an invasive monetary policy decision seriously undermined RBI’s credibility as an autonomous institution.
 
Election Commission
 
The Election Commission of India is a formidable institution, which has led the nation in electoral efficiency since 1950. But, it was during the 2019 elections that the body came under the scanner for breaching the Model Code of Conduct, particularly those by the ruling party. The concern over EC’s credibility was so enormous that it got expressed through a letter, penned by a group of retired bureaucrats and diplomats who condemned EC’s “weak-kneed conduct” and stated that the institution was “suffering from a crisis of credibility.” Another egregious move by the EC includes defending the existence of electoral bonds. These bonds create a mechanism for private actors to fund political parties through a banking system rather than cash, but without the actor or the political party having to disclose a single rupee. While the commission noted in 2017 that the monetary instrument proposed by the government would make funding of political parties more opaque, but they changed their stance before the 2019 election. According to the EC counsel, the EC stands opposed to only the anonymity clause of the bonds and not the bonds themselves. These measures by the EC simply imply that serious questions about the Commission’s Independence are not without cause.
 
The Supreme Court
 
The third example of an elite institution facing a credibility crisis at this scale includes the Supreme Court whose internal fissures have played out in a spectacularly public fashion. The Supreme Court has historically enjoyed widespread popular support, especially compared to highly uneven lower judiciary. However, there have been various structural malaises that have gone unaddressed. The accumulation of power in the hands of the Chief Justice of India (CJI) is a case in point. In early 2018, four of the top five judges of India’s Supreme Court did something completely unprecedented. They did a press conference where they questioned the leadership of the then Chief Justice of India Dipak Mishra, particularly with regard to abuse of power in the allocation of politically sensitive cases.
 
Another notable example involves the case of the Prasad Educational Trust, a matter that the CJI had been overseeing. According to the CBI, the Trust had retained a retired Orissa high court judge to “fix” the outcome of the SC’s decision. When an NGO implored the apex court to set up a special investigation team (SIT), Justice J Chelameswar ordered the establishment of the five-judge Constitution Bench to consider its plea. But, in a dramatic development, the CJI set up a five-judge bench headed by him and overturned Chelameswar’s order, stating that the CJI had the sole prerogative of setting up a bench and allocating matters. Mishra took this case, despite the fact that he had been personally involved in the Prasad case, a case that required an independent investigation.
 
In Conclusion
 
The larger point here is that the structure, functioning and architecture of institutions such as RBI, SC among others are fundamentally different from those of the democratically elected governments. The meta lessons from the trials of India’s elite institutions expose the stark divergence between the rule of law in practice and on paper. On this account, both in paper and practice, the institutions are designed to be autonomous and devoid of any political influence. The harsh truth is that politicians are often swayed by power and tempted by the prospect of control. It is there necessary that institutions and its constituents are freed from any form of temptation and function on an independent basis, otherwise there persists the risk of facilitating greater institutional decay.
 
India Outbound
June 7, 2019

 
 

source https://indiaoutbound.org/modi-2-0-the-fate-of-institutional-autonomy-in-india/

Modi 2.0 and what does it mean for India’s foreign policy?

Debates around the Indian elections are often focused on domestic issues like rural distress, economic malfeasance and so on, while the issue of India’s foreign policy is relegated to the margins. But, the 2019 elections changed the popular discourse. Building upon the narrative of being the country’s watchman or the chowkidar, Modi successfully bucked this trend where he won the mandate on the premise of foreign policy and security issues.
 
Modi may not have paid much attention to foreign policy issues during the 2014 campaign, but his foreign policy record has so far been impressive. While in office, Modi has made 48 foreign trips and visited as many as 92 countries. In addition to his widespread outreach, Modi has also displayed an extraordinary international activism that made many analysts argue that he has dramatically altered the foreign policy landscape. Arguably, not since former minister Nehru’s long tenure, India has been so engaged in wide ambit of issues, ranging from climate change to strategic realignments, which made foreign policy analyst C. Raja Mohan suggest that Modi’s foreign policy had been “revolutionary.”
 
Modi has enjoyed a string of successes, by unleashing a series of foreign policy measures such as the Neighbourhood First and Act East policies, maintenance of a partnership with the US and a hyperbolic Trump, building of a strategic partnership with Japan to advance the intra-Asian balancing of China, to name a few. Moreover, his outreach towards the Sunni Arab states to realize the country’s economic potential and harbouring personal ties with leaders from countries such as Israel have indeed reaped great dividends.
 
For all his successes, however Modi has been unable to overcome Machiavelli’s Fortuna. Thus, great foreign policy challenges await the Modi government, as power rivalry exacerbates in international politics that will bring disruptions to India both at domestic and international front.
 
Distressed Neighbourhood
 
India’s relations with neighbouring countries have been significant owing to their geographical proximity. Modi’s Neighbourhood First approach, aimed at shoring up India’s bilateral ties with the nations to offset China’s rise, has been a mixed bag of success. He has been deft in his responses to Pakistan, with instances such as the Uri surgical strikes and the Balakot air strikes through which he altered India’s conventional stance against Pakistan.
 
However, he has also suffered some policy mis-steps such as India’s ties with Nepal, which have exacerbated the complications of a difficult neighbourhood. On this front, Modi 2.0 could be more inclined to keep turning the screws on Islamabad, whether at the FATF, on terrorism or its support for the Taliban in Afghanistan.
 
Second Modi, would also be expected to manage the contradictions in the US-China relationship in the event of a complete breakdown of relationship between the two countries. Lastly Modi 2.0 needs to focus on harnessing ties with countries such as Sri Lanka, Bangladesh, Bhutan, Nepal and Maldives. Although the invite of the BIMSTEC leaders to the swearing in ceremony is a great diplomatic outreach, but to avoid China taking over its sphere of influence (which it is doing with the BRI project), India needs to act fast; and one way to do this is perhaps elevating ties, akin to a “Special strategic partnership.”
 
Indo-Pacific realm
 
Another highlight of the Modi administration is the carving out of a robust partnership with the United States to harness the capital and technology for India’s domestic development. Against the backdrop of China’s uprising as a revisionist power, the Modi government has shed off India’s past posturing of non-alignment policy and strategic autonomy and forged equitable partnerships not just with the US, but also its allies in the region including Japan, Australia and Vietnam.
 
But the growing proximity with the West, which became a springboard for India to reassert its regional primacy, a challenge would be to balance its Indo-Pacific and Eurasian strategies. While the Indo-Pacific would imply aligning with like-minded democracies to counter China, yet at the same with growing obstinacy of the Trump administration, it is imperative that India forges deeper partnership with Russia, where Russia’s overtures to Pakistan and growing dependence on China has caused some consternation in the South Bloc.
 
Outreach to Middle East
 
During his first tenure Modi had invested considerable political capital, time and resources to forge equitable partnerships with countries in the Middle East namely, Saudi Arabia, UAE, Iran and Israel. Through personal camaraderie and hard-nosed economic considerations, he has managed to befriend these leaders who are in a constant squabble with each other. But with the rising tensions about Iran coupled with the ongoing intra-Gulf crisis, comfortable assumptions about balancing the triad of Iran, Arab Gulf States and Israel will no longer suffice. It is imperative for Modi to have a stable Middle East that would serve India’s energy interests well. And in that case, an approach would require him to elevate these partnerships to a deeper level, amidst all the attendant consequences.
India Outbound
 
In conclusion
 
Thus, if Modi’s first tenure was all about expanding India’s sphere of influence and consolidating its preeminent strategic position, his second term should enable him to operationalise the dividends into practical outcomes. And for that it will require an acceleration of economic reforms along with building an institutional framework that can engage in long-term strategic thinking and thus, helping shape up India’s position in the international affairs.
 
India Outbound
June 6, 2019
 
 

source https://indiaoutbound.org/modi-2-0-and-what-does-it-mean-for-indias-foreign-policy/

Defence and security collaboration between India and the UK

India and the United Kingdom appear to be entering a new era of multi-faceted cooperation, given the renewed vigor of the former’s economic growth trajectory and the latter’s impending exit from the European Union. Thus, there are multiple new elements underlying the cross-border cooperation between India and the UK, a significant component being security and defence, vis-à-vis maritime security, counter-terrorism, disaster resilience, climate change etc.
 
During Prime Minister Modi’s visit to the UK in November 2015, both countries decided to elevate their defence relationship via the establishment of capability partnerships across key strategic areas. Discussions have been institutionalized in the form of dialogue under the Defence Consultative Group Meeting, which is held annually at the level of the Defence Secretary. Moreover, a formal bilateral Defence and International Security Partnership(DISP) was signed, with an emphasis upon strengthening cyber-security, counter-terrorism and maritime security.
 
Under the DISP, both governments agreed to work on indigenous projects under “Make in India.” As part of the ongoing negotiations, the UK is in talks with the Indian government, about building a new state-of-the-art aircraft carrier, similar to Britain’s HMS Queen Elizabeth. According to this, the Indian Navy will possibly purchase detailed plans for a 65,000-ton British warship to build a copy-cat supercarrier (with the design modified to suit local industry requirement), which will be named INS Vishal in 2022
 
In a joint statement released in 2017, a shared vision for the India-UK defence partnership was laid out. It was stated that this would entail not only cooperation in the defence industry, but would also include stronger military to military engagement, in the form of training and advanced joint exercises.
 
In 2019, India and UK renewed their Memorandum of Understanding on defence equipment cooperation, following bilateral defence and security equipment talks in London. This has been described as “step change” in the long-standing defence relationship of both countries. This MoU was originally signed on April 1997 and was subsequently renewed in April 2007.
 
On the global platform, the UK is supportive of India’s bid for a permanent seat in the United Nations’ Security Council. Both countries are also committed towards improvement in the efficacy of the UN’s peace-keeping operations, deepening dialogue on disarmament and non-proliferation as well working towards India’s entry into all Export Control Regimes.
 
Importantly, both countries will continue to work towards the disruption of all financial and tactical support for terrorist networks like the Al Qaeda, ISIL, Haqqanis, Lashkar-e-Toiba and Hizb-ul-Mujahideen. Through the exchange of the best practices and technologies, they will aim to drive forwards international efforts to prevent terrorist attacks via effective strategies, in partnership with the industry, civil society and communities.
 
Both countries have agreed to re-double efforts to identify mutual needs related to defence and security capability needs as well as collaborate on solutions. Through the joint collaboration and exploitation of procurement opportunities, the hope is that both will benefit from technological and manufacturing capabilities, thereby supporting long-term cooperation between their defence and security industries.
 
India Outbound
June 3, 2019
 
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source https://indiaoutbound.org/defence-and-security-collaboration-between-india-and-the-uk/