Archive for ‘India alert’

14/04/2017

Digital dawn: India’s ID system is reshaping ties between state and citizens | The Economist

IT TAKES a little over 90 seconds.

At the government-subsidised ration shop in Sargasan, a village in Gujarat, Chandana Prajapati places her thumb on a fingerprint scanner. A list of the staples she and her family are entitled to this month appears on the shopkeeper’s computer: 10kg of rice, 25kg of wheat, some cooking oil, salt and sugar. The 55-year-old housewife has no cash nor credit card, but no matter. By tapping in an identifying number and presenting her thumb one more time, Mrs Prajapati authorises a payment of 271 rupees ($4.20) straight from her bank account. It is technical wizardry worthy of Stockholm or New York; yet outside buffaloes graze, a pot of water is coming to the boil on a pile of firewood and children scamper between mud-brick houses.

Like most Indians, Mrs Prajapati would have struggled to identify herself to the authorities a few years ago, let alone to a faraway bank. But 99% of adults are now enrolled in Aadhaar, a scheme which has amassed the fingerprints and iris scans of over 1.1bn people since 2010. With her authorisation, any government body or private business can check whether her fingerprints or irises match those recorded against her unique 12-digit identifying number in its database. When it comes to identification, India has unexpectedly leapfrogged every country with the possible exception of Estonia, a tiddler with a penchant for innovation.

Being visible to the state is assumed in rich countries, if only because the taxman insists on it. But India had no equivalent of a Social Security number, and less than half of all births are registered. Only a small minority are required to pay income taxes. Plenty of those entitled to government services, meanwhile, have not received them, because they have not been identified as eligible or because middlemen have stolen their share. At the same time, the benefits rolls are filled with fake beneficiaries, created by those seeking to palm undeserved rations of fertiliser, food or some other subsidised good.Ghosts v the machineLinking ration cards to an Aadhaar number, and thus to the biometric data tied to it, means a single person cannot have more than one and ghosts can have none. The original pitch to politicians—the scheme was adopted by the previous government, but has been embraced by Narendra Modi, the prime minister—was that Aadhaar would help make welfare more efficient. The potential gains are huge. One official estimate suggests that “leakage” in subsidy payments meant that only 27% of the money ended up in the right hands: not so much a leaky bucket as a sieve.

Over 400,000 ghost children were struck off school rolls in just three states after schools were required to match their pupils to Aadhaar numbers to keep receiving state funds. By weeding out false claims, authorities say they have saved $8bn in two-and-a-half years; the annual central-government budget for subsidies is about $40bn. That may be an exaggeration, and critics say there are other ways to improve the administration of subsidies. But the savings clearly outstrip the roughly $1bn cost of deploying Aadhaar.

Changing the mechanics of how a benefit is received is often just as important as the benefit itself. Development experts like the fact that, at least in theory, a villager can gain access to a subsidy in a distant city. This removes a big barrier to internal migration. A project to purge electoral lists found 800,000 fictitious voters in Punjab, a state of 30m. The authorities suspect that 30% of driving licences are fake, many of them duplicates to help drivers evade bans—a ruse that would be impossible if all licences were linked to Aadhaar.

Indeed, the improvements in accuracy and efficiency are so enormous that the government now wants to use Aadhaar more broadly than originally advertised. Recent edicts propose to make it compulsory for everything from booking train tickets to owning a mobile phone. If implemented, these new uses would put paid to the notion that enrolling in Aadhaar is voluntary, which was the promise of its backers—led by Nandan Nilekani, an IT grandee who used to chair the agency that set up Aadhaar. This in a country with no overt privacy laws, let alone a tradition of handling sensitive data competently (many ministries’ websites contain spreadsheets teeming with Indians’ personal data).

But Aadhaar is a poor way to build up an Orwellian panopticon, Mr Nilekani argues, given the wealth of information already available from telephone records, GPS data, bank statements and the like. A bigger problem may be the impracticalities of the system. Unlike reading an ID card, checking someone’s identity through Aadhaar requires an internet connection and, often, electricity. Ration-shop owners in out-of-the-way places are known to march their customers to the top of a hill, roof or tree—wherever a phone signal can be found—to check their identity. Even then, samples seem to show that roughly a third of authentications come back negative, an extraordinarily high failure rate for a technology that people rely on for necessities. The chafed fingers of manual labourers often cause problems, for example.

Those high failure rates are just teething troubles linked to Aadhaar’s many new uses, says Ajay Bhushan Pandey, the head of the agency overseeing the scheme. Devices that scan irises (which offer more reliable readings) are becoming cheaper and should become the norm, he says. Already the Aadhaar database is being tapped 20m times a day, 20 times the rate of a year and a half ago. That thrills cheerleaders as much as it alarms critics.

Source: Digital dawn: India’s ID system is reshaping ties between state and citizens | The Economist

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07/04/2017

Gujarat: India state approves life term for killing cows – BBC News

The western Indian state of Gujarat has passed a law making the slaughter of cows punishable with life imprisonment.

Under an amendment to the state’s Animal Preservation Act, those found guilty of transporting beef will also be jailed for 10 years.

The cow is considered sacred by India’s Hindu majority, and killing cows is illegal in many states.

But the new amendment means Gujarat now has the toughest laws on the issue in the country.

Offenders will face heavy fines, as well as time behind bars. The penalty for either act has been doubled from 50,000 rupees ($771; £618) to 100,000 rupees.

Why India man was lynched over beef rumours

Why the humble cow is India’s most polarising animal

India meat traders strike over closures

Gujarat Minister of State Pradipsinh Jadeja told reporters that the cow was a symbol of Indian culture and the amendments to the act had been made “in consultation with the people”.

Chief Minister Vijay Rupani has also spoken repeatedly of “harsh” punishment for those who kill cows.

The new laws will come into effect from Saturday.

Source: Gujarat: India state approves life term for killing cows – BBC News

09/03/2017

Schumpeter: Mukesh Ambani has made the business world’s most aggressive bet | The Economist

SOME businesspeople are guided by experts, spreadsheets and crunchy questions. What is your three-year target for market share? Will a project deliver a reasonable return on the capital invested? A few hurl all the forecasts and reports into the bin and surrender to their own hunger to make a mark.

One such figure is Mukesh Ambani, India’s richest man. In September 2016 he placed one of the biggest business bets in the world by launching Jio, a mobile-telecoms network that allows India’s masses to access data on an unprecedented scale. In the past six months it has won 100m customers. Only one other firm on the planet has such an acquisition rate—Facebook. From Kolkata’s slums to the banks of the Ganges, millions of Indians are using social media and streaming videos for the very first time.

To achieve this, Mr Ambani has spent an incredible $25bn on Jio, without making a rupee of profit, terrifying competitors and many investors. The motivation for his gamble probably lies with his turbulent family history. Reliance Industries Limited (RIL), Mr Ambani’s company, was set up by his father, Dhirubhai, in 1957. Born in humble circumstances, Dhirubhai was famous for three things: running rings around officials; creating a fortune for himself and RIL’s army of small shareholders; and his appetite for giant industrial projects. RIL jumped from textiles into oil refining and petrochemicals. Its refinery in Gujarat is one of the world’s largest. It opened in 2000, two years before Dhirubhai died.

Mukesh Ambani and his brother, Anil, took the reins in 2002 and split from each other in 2005, leaving Mukesh in full control of RIL. Since then his record has been patchy. RIL’s shares have lagged India’s stockmarket over the past decade and its return on capital has sagged, halving from 12% to 6%.

Emulating his father, Mr Ambani has rolled the dice on several huge projects. He has invested huge sums to modernise the petrochemicals and refining business. This decision has been a success—it is an excellent operation that makes a return of about 12%. But Mr Ambani’s other investment calls have flopped. In 2010-15 RIL spent $8bn on shale fields in America. Now that oil prices are lower they lose money. The group invested about $10bn in energy fields off India’s east coast; they have produced less gas than hoped for and are worth little. And RIL has spent around $2bn on a retail business that produces only small profits. All told, RIL’s refining and petrochemicals unit accounts for two-fifths of its capital employed but over 100% of operating profits. The other businesses, developed mainly after Mr Ambani took sole charge, swallow a majority of resources but don’t make money.

A lesser man might have lost his nerve, but Mr Ambani has pursued another colossal bet in the form of Jio. He knows telecoms: in 2002 he oversaw the family’s first attempt to build a big mobile-phone business (his brother now owns the struggling operation). The latest effort has been a decade in the making. Step by step, RIL acquired spectrum, worked with handset suppliers and built a “fourth-generation” network. Jio’s offer of free services caused a sensation. A savage price war has ensued. One rival executive reckons Jio is carrying more data than either China Mobile or AT&T, the world’s two most valuable operators.

That underlines the potential of India’s telecoms market. Data usage is low, there are few fixed lines and most people don’t have smartphones. The incumbent firms are heavily indebted, so have limited ability to respond to a price war.

Jio will start charging from April 1st. Yet even assuming it keeps cranking prices up and wins a third of the market, a discounted-cash-flow analysis suggests that it would be worth only two-thirds of the sum that Mr Ambani has spent. To justify that amount Jio would at some point need to earn the same amount of profit that India’s entire telecoms industry made in 2016. In other words, there is no escaping the punishing economics of pouring cash into networks and spectrum. For every customer that Jio might eventually win, it will have invested perhaps $100. Compare that with Facebook or Alibaba, both asset-light internet firms, which have invested about $10 per user.

Jio’s three main mobile competitors have scrambled to respond. Bharti Airtel is buying a smaller rival to try to lower its costs. Vodafone is in talks about merging with Idea Cellular, another operator. Half a dozen or so weaker companies (including the firm now run by Mr Ambani’s brother) will probably disappear. The best hope for Jio is that in the distant future it will be one of three firms left and that a cut-throat industry will evolve into a comfy oligopoly, which is possible.

RIL’s share price has gone nowhere for years but excitement about Jio’s 100m new customers has helped it bounce over the past month. Still, the scale of the investment illustrates the risks that shareholders face at a firm that is controlled by one man. Even if Jio eventually gushes cash it is not clear if RIL will pay bigger dividends, or if Mr Ambani will instead pursue another grand project. As investors wait, however, many more of India’s 1.3bn consumers will gain—not only from low prices, but a welcome splurge on the nation’s telecom infrastructure.

Defiance from Reliance
And what of Mr Ambani? Perhaps he hopes to get his money back by turning Jio into an internet firm that offers payment services and content, not just connectivity. China’s Tencent, which owns WeChat, a messaging service, has successfully diversified into games and banking. Still, no telecoms firm has managed this feat and it is hard to see how RIL’s clannish culture can become a hotbed of innovation. More likely, Mr Ambani, aged 59, just doesn’t care what all the spreadsheets point to. Sitting atop his skyscraper, overlooking teeming Mumbai, where some 5m new Jio customers are surfing the web at high speed for peanuts, he can at last say that he has changed India. When you are Dhirubhai’s son, that is probably enough.

Source: Schumpeter: Mukesh Ambani has made the business world’s most aggressive bet | The Economist

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08/03/2017

The partition of India: “Viceroy’s House” is an antidote to colonial triumphalism | The Economist

THE fetishisation of British Imperialism is inescapable. Last December, Theresa May cited the East India Company as an example of Britain’s historical trading prowess. Contestants on a recent season of “The Apprentice”, an entrepreneurial reality show, created batches of “Colony Gin”; Marks & Spencer, a retailer, included an “Empire Pie” as part of its Gastropub collection. This nostalgia is borne out by a YouGov poll from 2016, which found that 44% of respondents are proud of Britain’s colonial history.

Those colonised, though, see the empire rather differently. A charge sheet of Britain’s efforts in India—and every territory colonised can produce an equivalent—might list partition, the man-made Bengal famine in 1943 (which resulted in an estimated 3m deaths), the wretched labour system of indenture and the looting of state wealth. Partition alone resulted in 1m deaths and created 15m refugees in a matter of weeks; Hindus and Sikhs fled their homes in what was the become the Muslim state of Pakistan, while Muslims in India took flight in the opposite direction.

“Viceroy’s House”, a new film written and directed by Gurinder Chadha, seeks to document Britain’s role in partition and the cleaving of the Punjab region. In the final months of the Raj, Lord Mountbatten (Hugh Bonneville) arrives to oversee the transfer of power to Hind Swaraj (Indian Home Rule), and reconcile the demands of independence leaders such as Mahatma Gandhi and Jawaharlal Nehru with those of Muhammad Ali Jinnah. Sir Cyril Radcliffe (Simon Callow)—who had never set foot in India before—is drafted in to assess how 175,000 square miles, home to 88m people, should be split. Ms Chadha carefully balances high politics with its impact on ordinary citizens; relations between Hindu, Sikh and Muslim staff become tense as the prospect of annexing India’s Muslim-majority regions emerges.

The film is good in exposing the Machiavellian motives behind this rushed decision, as well as the gut-wrenching suffering that followed (the house, which “makes Buckingham Palace look like a bungalow”, becomes a camp for the displaced). It is not perfect, however. “Viceroy’s House” absolves everyone—Lord Mountbatten, the British, Hindus, Sikhs, Muslims—of blame for the suffering. Some critics have complained that it does not give any attention to the Indian independence struggle, or catalogue the horrors of British rule. These are deserving of films in their own right; Ms Chadha’s decision to focus her lens solely on how partition unfolded is a wise one.

With millions of people involved in the story of partition, “Viceroy’s House” was always going to be a tricky undertaking, likely to be deemed unsatisfactory by many. Ms Chadha tells the story of this multifaceted moment in the region’s history through the lens of one building, framing it as the tale of “the people’s partition” rather than dealing in factionalism and blame. She has subverted the period-drama genre—how many period dramas close on a shot of a desperate refugee camp?—to produce something akin to a “Dummy’s Guide to partition”.

Yet even as a superficial primer, “Viceroy’s House” fills a gap in Britain’s collective consciousness and cultural memory. In the canon of modern British films about India, partition features in “Gandhi” (1982) and “Midnight’s Children” (2012) but gets scant treatment elsewhere. “Viceroy’s House” stands out from these offerings as a British film narrated with heart, soul and profound sadness by a Punjabi film-maker with a personal investment in the story: the closing credits reveal that Ms Chadha’s grandmother lost a child to starvation while fleeing to India.

It will be hard for some to maintain a sense of nostalgia and triumphalism for Britain’s empire after watching “Viceroy’s House”: Ms Chadha intersperses the drama with Pathé news footage of communal violence and Churchill’s dejected newscasts explaining the collapse of law and order. The film has ensured that partition, which is rarely taught in British high schools, has a place in the nation’s shared public culture again. Too right. Partition is as much a part of modern Britain—home to 700,000 Indian and Pakistani Punjabis, many of whom are the children, grandchildren and great-grandchildren of partition—as butter chicken, saag paneer, naan, bhangra and Bollywood.

Source: The partition of India: “Viceroy’s House” is an antidote to colonial triumphalism | The Economist

28/02/2017

Are motorbikes a barometer of India’s economy? – BBC News

India’s latest economic growth numbers are expected to reflect the impact that the sudden withdrawal of currency notes in November had on the country.

So how has the economy been doing? Sales of two-wheelers are among the best indicators.

Source: Are motorbikes a barometer of India’s economy? – BBC News

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28/02/2017

India’s annual economic growth slows to 7 percent in December quarter | Reuters

India’s annual economic growth slowed to 7.0 percent in the three months through December from a revised 7.4 percent expansion in the previous quarter, government data showed on Tuesday.

Analysts polled by Reuters had forecast 6.4 percent growth for the October-December period.

The central statistics office also retained the growth forecast for the fiscal year ending in March 2017 at 7.1 percent.

Source: India’s annual economic growth slows to 7 percent in December quarter | Reuters

25/02/2017

Room to grow: India’s hostels for the upwardly mobile | The Economist

IF SEVERAL hundred million Indians do migrate from the countryside to cities between now and 2050, as the UN expects, it will be a fiendishly busy few decades for Vivek Aher, who runs a low-cost hostel, one of five, on the outskirts of Pune, a well-off city three hours’ drive from Mumbai.

A fair few of the new arrivals will have their first experience of urban living bunking in one of the hostels’ 1,350 beds. Should recent experience be anything to go by, most of the new arrivals will test Mr Aher’s patience by tacking posters on his hostel’s walls, or endlessly complaining about the Wi-Fi.

India has two main drags on economic growth. One is the difficulty of finding a job, especially in the places people live. The other is a chronic shortage of cheap housing. Aarusha Homes, Mr Aher’s employer, started in 2007 to help people seize economic opportunities far from home. Its rooms are basic and cheap. They include up to six beds, a bathroom for every three or four residents, some common areas and little else. Rent ranges between 3,500 and 10,000 rupees ($52-$149) a month including food.

Most of Aarusha’s tenants are young, many of them taking first steps into the middle-class as IT or business-processing outsourcing professionals. Paying up to six months’ deposit for a city flat is beyond their means, as is the down payment for a motorbike that would allow them to live far from their employer. Aarusha’s successful pitch is that its hostels are safer than slums or informal “guest houses”, especially for women. It now has 4,300 beds in 1,300 rooms spread out over 20 hostels in four cities. The typical tenant stays for six months. Satyanarayana Vejella, the firm’s co-founder, plans to raise another $10m to increase capacity by 12,000 beds in nearly 70 new hostels, all in the next two years. Operating-profit margins are in the mid-teens.

The chain’s backers include investment funds who seek social as well as financial returns. The latter would be improved if the chain dodged taxes by operating in the informal economy, like much of its competition, but it sticks to the formal side. The problems it faces are those confronted by any Hilton or Hyatt: finding properties big enough to offer over 100 beds is hard. Tenants have to be chased for payments. An attempt to cater to blue-collar workers at an even lower price didn’t work out. So Aarusha is reliant on the IT and outsourcing sectors, which are hiring less eagerly than before.Aarusha can probably depend on continuing strong demand for a room from which to make sense of it all before people can get their own places. The hostels have something of a communal feel, and parents find them reassuring because residents put up with not being able to drink, smoke, or mingle with the opposite sex. Soon enough, they will have moved on, taking their aspirations and their posters with them.

Source: Room to grow: India’s hostels for the upwardly mobile | The Economist

24/02/2017

The missing middle: Women in South Asian politics have not empowered women | The Economist

ON THE Indian subcontinent, as in no other part of the world, women have risen to the pinnacle of politics. Indira Gandhi of India, Benazir Bhutto of Pakistan and Aung San Suu Kyi of Myanmar are all famous names. Less well known is that Sri Lanka was the first country ever to elect a woman prime minister, or that it has also had a female president. For 22 of the past 25 years Bangladesh, a largely Muslim country with more people than France and Germany combined, has been led by a woman. And the chief ministers of numerous country-sized Indian states, from West Bengal in the east to Tamil Nadu in the south, have also been women.

India’s democracy is not pretty; these are the winners of bare-knuckle contests.

Yet for all such headline-grabbing successes, the fine print tells a different story. Although there has been steady progress in such things as stamping out female infanticide and spreading women’s education, statistics continue to reveal a stark sex divide. At 27%, the share of Indian women who work, for instance, is less than half the level in China or Brazil (and also in neighbouring Bangladesh, although slightly higher than in Pakistan). In 2012 a household survey found that four-fifths of Indian women needed their husband’s or family’s permission to visit a local clinic. A third said they would not be able to go alone. More than half also said they could not visit a shop, or even a friend, without someone else’s approval. For many, the very idea of going out was alarming: 70% said they would feel unsafe working away from home, and 52% thought it normal for a husband to beat his wife if she ventured out without telling him. In November, following a shock government move to scrap higher-denomination banknotes, a domestic violence hotline in the city of Bhopal in central India registered a doubling of calls, largely from women whose spouses had discovered they had secretly been saving cash.

On your bike

For wealthy and middle-class Indian women, freedoms have steadily grown: Anubha Bhonsle, a television anchor, recalls the strangeness of being the sole female driver of a motor scooter on many streets when she started commuting 15 years ago. “No one would give a second glance now,” she says. Yet in many professions women remain rarities. Barely 10% of the 700 judges in India’s higher courts are female, and only 17% of the 5,000 officers in the Indian Administrative Service, the elite corps of bureaucrats that runs the country.

Women are scarce even in politics. In the lower house of India’s parliament only 12% of MPs are women. State legislatures are similarly male. True, women’s share of seats has risen, but slowly: 50 years ago the proportion of women in the lower house was 6%.

It is only in village and district councils that women hold much sway, but this is partly due to laws that assign either a third or half of seats to female candidates. Earlier this month tribesmen objecting to efforts to impose a women’s quota in local elections rioted in Nagaland, a state on the border with Myanmar that is one of the few exceptions to such rules. Naga men insist that local custom precludes female village chiefs.

Such troubles reveal one cause of slow progress to sexual equality: Indian politicians have generally found it more rewarding to cater to subgroups defined by caste, religion, ethnicity, language or local grievance, rather than to broader categories such as women. This is equally true of female politicians, and of regional leaders less constrained by democracy. Sheikh Hasina, the current, iron-fisted prime minister of Bangladesh, has recently moved to reduce the legal age of marriage from 18 to 16. Given that child marriage is already common, especially in the impoverished countryside, women’s-rights activists are upset. But analysts explain that apa, or “big sister”, who has hounded opposition parties including Islamists, is looking for ways to deflect conservative anger. In order to succeed female politicians in the region often make a point of acting tough. Mamata Banerjee, the diminutive but formidable chief minister of West Bengal, once dragged a male colleague out of the well of parliament by the collar when she was an MP in Delhi. Like Sheikh Hasina and Mayawati, a former chief minister of Uttar Pradesh, as well as Jayalalithaa, a recently deceased former film star and long-serving chief minister of Tamil Nadu, Ms Banerjee has carefully repressed her sexuality. These women are ostentatiously “married” to their cause or their party.

Such care is understandable. Male rivals have not shied from using sex to malign female politicians. One party leader in Uttar Pradesh lost his job for accusing Mayawati, who comes from a downtrodden caste, of “selling tickets like a prostitute”. A colleague went further against Sonia Gandhi, the leader of the opposition Congress party. Absurdly, he accused the head of the Gandhi dynasty of having worked for a Pakistani escort agency.

With so many obstacles blocking the path to power, it is hardly surprising that so many of the region’s successful female politicians got a head start. Amrita Basu of Amherst College finds that more than half of India’s female MPs in the past decade had family members who preceded them in politics. Quite often such dynastic links have been dramatic. Ms Suu Kyi in Myanmar and Sheikh Hasina are both daughters of slain independence heroes. Sonia Gandhi and Khaleda Zia, a former Bangladeshi prime minister and bitter rival to Sheikh Hasina, are both widows of assassinated leaders. Both Jayalalithaa and Mayawati entered politics as devoted lieutenants to charismatic, populist politicians; in Jayalalithaa’s case her mentor also played the lead in many of her films.

For women to play a more normal political role in the subcontinent, perhaps it is in films, and in popular culture in general, that change needs to happen first. All too often on the region’s screens, actresses who are paid a fraction of what male stars get portray women who lack agency in their lives. There is, though, an inkling of change. This season’s blockbuster and already the highest-earning film in Bollywood history, “Dangal”, tells the heart-warming story of sisters who become champions in the male-dominated sport of wrestling. Yet the main hero is not one of the girls, but the father, a former wrestler, who bends them to his will.

Source: The missing middle: Women in South Asian politics have not empowered women | The Economist

16/02/2017

India and Russia seek to revive stalled helicopter venture | Reuters

India and Russia are nearing a joint venture to make light helicopters in India, reviving a plan announced by Russian President Vladimir Putin in 2015.

Delhi needs to replace hundreds of ageing utility helicopters deployed along its Himalayan border with China as well as in the disputed Kashmir region.

This means an initial order of 200 Kamov-226 helicopters, of which 140 will be built in India as part of Prime Minister Narendra Modi’s drive to build a domestic defence industrial base and cut imports, is expected to be increased.

And final documents relating to the $1 billion Kamov deal involving Russian Helicopters, Rosoboronexport and India’s state-run Hindustan Aeronautics (HAL) has been submitted to Putin, HAL’s chief T. Suvarna Raju, told reporters on Wednesday.

While India has sealed deals with the United States for 22 Apache attack and 15 heavy lift Chinook helicopters at total cost of about $2.5 billion, plans to buy Russian helicopters and fifth generation fighter aircraft have been dogged by problems.

“There are issues between parties, but these are being tackled,” Sergey Goreslavsky, deputy director general of Rosoboronexport, said at India’s biggest air show in the southern city of Bengaluru.

A team will assess the Indian manufacturing facilities over the next few months. “We are keeping our fingers crossed about launching production this year,” an executive at Russian Helicopters said.

The executive, who did not want to be named, said the joint venture will be modelled along the lines of Brahmos, the India-Russia entity producing supersonic missiles, which which military analysts say are among the deadliest in their class.

Russia was long the main supplier of military equipment to India, but Delhi has turned to France, Israel and increasingly the United States for supply of hardware in recent years.

U.S. aerospace and defence firms Lockheed Martin and Boeing have both offered to set up production lines in India to make combat planes.

Source: India and Russia seek to revive stalled helicopter venture | Reuters

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15/02/2017

‘Follow one-China policy’: Beijing warns India over Taiwan delegation | This Week In Asia | South China Morning Post

China has lodged a strong complaint with India over a rare visit by a Taiwanese parliamentary delegation, warning New Delhi to follow one-China policy and refrain from any official contacts with Taipei.

Sharply criticising the visit, foreign ministry spokesperson Geng Shung said Beijing had lodged a “solemn representation” with New Delhi to not have any official contact with Taiwan.

Beijing has always opposed any kind of official contact between Taiwan and countries that have diplomatic ties with China, he said.

Why Trump can’t ‘haggle’ over the one-China policy

Geng spoke against any proposal to upgrade India-Taiwan ties, and warned India to be strict about following the one-China policy and be “prudent” about its ties with Taiwan.India has no formal diplomatic relations with Taiwan. The de facto Indian embassy in Taipei is called the India-Taipei Association and the Taiwanese maintain the Taipei Economic Cultural Center in New Delhi.

A three-member parliamentary delegation from Taiwan arrived in India on Monday for a three-day visit. The leader of the delegation, Kuan Bi-Ling, said Taiwan is “totally independent”.

“It (the one-China policy) is a de facto reality…We suffered a lot because of the one-China policy. We have crafted a pragmatic approach in our diplomatic engagement with major countries, including India, despite these difficulties,” Kuan told the Indian media.Hosting an official delegation from Taiwan appears to be a shift in Indian policy. In May last year, India had reportedly backtracked from sending representatives to the swearing-in ceremony of then Taiwanese president-elect Tsai Ing-wen. The visit of the Taiwanese delegation is a possible sign that both countries are attempting to increase political engagement without New Delhi moving away from the one-China policy.No country is exempt from one-China principle, says Beijing

In September 2015, before she became Taiwan’s first woman president, Tsai had spoken about India being in focus for her country to strengthen ties.“Asean and India are poised to become two of the world’s largest economic bodies. Strengthening our overall relations is a natural choice for Taiwan as we diversify our economic and trade ties. In the future, we will form a new task force to actively pursue this policy objective,” Tsai had said in a key speech at the time.

The New Southbound Policy Office, which directly functions under the president, will focus on strengthening all-round ties with Asean and South Asia, particularly India, Taiwanese diplomats had then told the Hindustan Times.

Earlier on Wednesday, nationalistic tabloid Global Times said India is playing with fire and will suffer if it challenges the one-China policy and increases engagement with Taiwan.

How a snub of the one-China policy almost led Beijing and US into war in the 1990s

“At a time when new US President Donald Trump has put the brakes on challenging China over the Taiwan question, agreeing to change course and respecting the one-China policy, India stands out as a provocateur,” it said. “Some Indians view the Taiwan question as an Achilles’ heel of the mainland. India has long wanted to use the Taiwan question, the South China Sea and Dalai Lama issues as bargaining chips in dealing with China,” writer Yu Ning wrote in an opinion piece for the newspaper.

“By challenging China over the Taiwan question, India is playing with fire,” Yu wrote.

The newspaper blamed Tsai for inciting India.“Tsai is exploiting India’s vigilance and strategic suspicions against China. The pro-independence leader came up with the ”new southbound policy” to ramp up trade and economic interactions in Southeast Asia, South Asia and Oceania, in which India is considered “not one of the, but the most” important country…Tsai hopes to put pressure on the mainland by tying India and Taiwan closer.”

Source: ‘Follow one-China policy’: Beijing warns India over Taiwan delegation | This Week In Asia | South China Morning Post

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