Archive for ‘India alert’

10/12/2012

* China’s Great Wall Motor in talks for India entry

China is sensing that India’s time is about to come.  Earlier it offered to support infrastructure projects, now it is hoping to make and sell cars in India.

Reuters: “Great Wall Motor Co, China’s biggest SUV maker, is in talks to set up a wholly-owned business in India, an Indian industry official said on Monday, in what would be the first Chinese car maker to enter the country alone.

People look at cars of Chinese automaker Great Wall Motor Co Ltd displayed during the Sofia Motor Show 2011 in Sofia June 15, 2011. REUTERS/Stoyan Nenov

Great Wall, China’s eighth-largest car maker, sent a delegation to India last week, and targets starting manufacturing of vehicles in India in 2016, Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (SIAM), told Reuters in an interview.

“They are looking at coming into India to set up manufacturing,” said Mathur. “They are meeting industry, they are meeting government, they are meeting suppliers.”

Great Wall executives met with SIAM representatives last week, Mathur said. He did not provide details of investments planned.

Great Wall representatives could not be reached by Reuters for comment.

India’s car market has attracted billions of dollars in investment from overseas manufacturers, such as General Motors (GM.N), Ford (F.N) and Toyota (7203.T). But Chinese car makers have not yet made significant inroads into the country.”

via China’s Great Wall Motor in talks for India entry: industry official | Reuters.

See also:

09/12/2012

* India’s UP saw over 100 communal clashes in 2012

Despite the notion of unity in diversity, India continues to suffer from communal / ethnic clashes over 60 years after independence.

The Hindu: “Uttar Pradesh has earned the dubious distinction of witnessing over 100 communal clashes this year that left 34 people dead.

File photo of the family of 55-year-old Mohammed Umar, who was beaten to death in Mukeempur Pahadpur village near Faizabad on October 25, 2012 as violence erupted during Durga Puja celebrations.

The towns where incidents of such violence took place are Kosi Kalan in Mathura, Faizabad, Pratapgarh, Sitapur, Ghaziabad and Bareilly.

More than 450 people were also injured in these clashes which took place from January till October 31, Home Ministry officials said.

There were 84 incidents of communal clashes in the state in 2011 in which 12 people lost their lives.

The country witnessed 560 incidents of violence this year till October end, which claimed 89 lives, while in 2011, 580 clashes took place that left 91 people dead.

Uttar Pradesh was followed by Maharashtra where 83 incidents were reported so far this year in which 13 people were killed and 88 incidents in 2011 which claimed 15 lives.

Madhya Pradesh saw 78 incidents of communal violence so far this year in which 11 people were killed and in 2011, 81 incidents of communal clashes were reported that left 15 dead.

In Karnataka, there were 54 incidents of communal clashes in 2012 and 70 incidents in 2011 in which three and four people lost their lives respectively.

Rajasthan had witnessed 42 incidents of communal clashes in 2011 leading to death of 16 people while this year the state has witnessed 30 incidents of such violence and six dead.

There were 47 incidents of communal clashes in Gujarat in 2011, in which three persons lost their lives, and 50 incidents so far this year in which five were killed.

Andhra Pradesh saw 33 communal clashes in 2011 in which one died and so far this year, 45 clashes took place in which two were killed.

There were 30 incidents of communal clashes in Kerala in 2011, in which one died, and 46 incidents in this year in which one was killed.

Bihar witnessed 26 incidents with four deaths last year and 17 incidents this year in which three persons were killed.

Tamil Nadu saw 21 incidents of communal violence and two deaths in 2011 and 11 incidents with two deaths this year so far.

There were 15 incidents in West Bengal in 2011 in which three persons were killed, and 22 incidents in this year, in which eight persons were killed.”

via The Hindu : News / National : UP saw over 100 communal clashes in 2012.

Related articles

07/12/2012

* India Dips a Toe into the South China Sea Dispute

Thoughtful commentary about why India, who has no territorial claims in he area, is getting involved with the South China Sea disputes.

Geopolitical Monitor: “Although the Xi Jinping administration is now secure enough in its transition to power to put nationalist jingoism back in the box from whence it came, recent events suggest that China will continue to tow a hard line in regards to its military and economic rights in the South China Sea.Joint exercises between the Indian Navy and the US Navy

Earlier this week, Chinese media sources reported that police authorities in Hainan province will be authorized to search and seize foreign vessels operating in Chinese waters starting next year. The announcement prompted an immediate response from the Philippine government, which condemned the move and requested a clarification as to what exactly can be considered ‘Chinese territorial waters.’ ASEAN also chimed in over the announcement, with Secretary General Surin Pitsuwan calling it a move that “raises the level of concern and great anxiety [in the dispute].”

Judging by Chinese official statements on the subject, it seems likely that this expansion of search and seizure powers applies to China’s entire territorial claim, which is essentially most of the South China Sea, extending as far south as Brunei. It can be seen as an initial attempt to leverage China’s growing naval power to buttress an ambitious territorial claim that has, up until now, remained largely rhetorical.

If Beijing goes through with the plan, it will ramp up the volatility in an already precarious region. Whenever hard military assets are being deployed and coming into close contact with one another, the risk of a crisis breaking out is substantially heightened. It wouldn’t take much for a relatively small and seemingly insignificant event, much like the standoff between China and the Philippines earlier this year, to spin out of control and set off a regional conflict.

And make no mistake: there will be no shortage of military ships operating in the South China Sea. On the very same day that China announced its intention for expanded search and seizures, the government of Vietnam announced that it was going to begin military patrols of its own territorial claim. This announcement comes on the heels of an incident earlier this week in which a group of Chinese boats cut the cables of a PetroVietnam survey vessel operating off the Gulf of Tonkin.

But by far one of the most interesting recent developments in the South China Sea dispute is the entrance of India into the fray. Earlier this week, Indian Admiral D.K Joshi publically asserted that India will not back off from protecting its maritime and economic interests in the South China Sea.

Although India doesn’t have any direct territorial claim in the area, the waters are strategically important to New Delhi for three reasons. First, like for any trade-dependent country, the South China Sea represents an important global shipping route and freedom of navigation must be maintained. Second, India’s state-run Oil and Natural Gas Corporation (ONGC) owns a stake in waters claimed by Vietnam. And third, and perhaps most importantly, the South China Sea represents an opportunity for an Indian riposte against China’s ‘string of pearls’ naval encirclement of the Indian subcontinent.”

via India Dips a Toe into the South China Sea Dispute – Geopolitical Monitor.

03/12/2012

* Post transition, China looking to build ties with neighbours

Talking of mixed messages: on the one hand we hev the Indian Navy trying to establish a position in South China Sea to protect its oil and gas interests there; on the other hand we have foreign ministers shaking hands and vowing better ties between neighbours. Which is the REAL message? And who is trying to fool whom?

The Hindu: “Chinese State Councillor Dai Bingguo told National Security Adviser Shivshankar Menon here on Monday that China was looking to forge stronger ties with its neighbours following the leadership transition.

National Security Adviser Shivshankar Menon with Chinese State Councillor Dai Bingguo, his counterpart as the Special Representative on the boundary talks, at the Diaoyutai State Guesthouse in Beijing on Monday. Photo: Ananth Krishnan

Mr. Dai, who is also Mr. Menon’s counterpart as the Special Representative (SR) on the boundary talks, said Monday’s visit had assumed “special and important” significance as it was one of the first visits by a foreign leader to China following November’s Party Congress, which formalised a once-in-a-decade leadership transition.

“You’re one of the first few foreign leaders we are receiving after the party congress,” Mr. Dai told Mr. Menon at their first session of talks. “I’m sure through your visit the Indian side will have a better sense of China after the eighteenth Party Congress and China’s foreign policy, and how best to join forces to further promote the development of China-India relations”.

The first session of Monday’s talks was devoted to briefing Mr. Menon on China’s transition. Two other sessions later on Monday will focus on Sino-Indian relations and are expected to cover a range of topics from the boundary question to wider strategic issues.”

via The Hindu : News / National : Post transition, China looking to build ties with neighbours.

03/12/2012

* Indian navy prepared to deploy to South China Sea to protect oil interests

India, which so far has not been involved is now doing so after Hainan Province decides to take unilateral ‘policing’ action on the high seas. Does not bode well for resolving the South China Sea territorial dispute.

Reuters: “The Indian navy is prepared to deploy vessels to the South China Sea to protect India’s oil interests there, the navy chief said on Monday amid growing international fears over the potential for naval clashes in the disputed region.

Indian Navy

India has sparred diplomatically with China in the past over its gas and oil exploration block off the coast of Vietnam. China claims virtually the entire mineral-rich South China Sea and has stepped up its military presence there. Other nations such as Vietnam, Philippines and Malaysia have competing claims.

Indian state-run explorer Oil and Natural Gas Corp (ONGC) has a stake in a gas field in the Nam Con Son basin, off Vietnam’s south coast.

Indian Navy Chief Admiral D.K Joshi said while India was not a claimant in the dispute over territorial rights in the South China Sea, it was prepared to act, if necessary, to protect its maritime and economic interests in the region.”

via Indian navy prepared to deploy to South China Sea to protect oil interests | Reuters.

28/11/2012

* China Looks to Increase India Investments

If India allows China to invest in its under-developed infrastructure, then it will be a truly win-win situation.

WSJ: “China, already India’s largest trading partner, is looking to increase its Indian direct investment, taking a page from the playbook of other East Asian nations such as Japan and South Korea.

Zhang Ping, chairman of China’s National Development Reforms Commission, a key policymaking body, was in the Indian capital this week to hold a China-India strategic economic dialog, focused on increasing investments in each other’s countries. He was accompanied by around 200 representatives from government and corporations.

China’s official news agency Xinhua quoted Mr. Ping as saying China would “push forward cooperation in infrastructure including railway, power, telecommunications” with India.

“Economic co-operation between India and China is of relatively recent vintage and still has great potential to develop further,” said Montek Singh Ahluwalia, deputy chairman of India’s Planning Commission. He said China’s co-operation could be valuable in bridging India’s “enormous infrastructure deficit.”

Infrastructure is a particularly attractive sector for many foreign direct investors: India expects to spend $1 trillion on infrastructure over the next five years.”

via China Looks to Increase India Investments – China Real Time Report – WSJ.

26/11/2012

* GSK Invests in India, Nigeria

WSJ: “GlaxoSmithKline  said Monday it plans to increase its stakes in its Indian and Nigerian units at a cost of more than $1 billion as the pharmaceuticals company targets consumers in fast-growing markets.

GSK, the U.K.’s largest drug maker by sales, plans to buy an additional 31.8% stake in GSK Consumer Healthcare Ltd. for approximately $940 million, taking its ownership in the Indian unit to a maximum 75% allowed under Indian ownership rules. The deal is in part a bet on Horlicks, a malted milk bedtime drink regarded as old-fashioned in the U.K. which is seeing rising sales in the former British colony.

Like many drug companies, GlaxoSmithKline is expanding its consumer health-care business as many of its best-selling prescription drugs lose protection from cheaper copies while also expanding into faster growing markets as its main U.S. and western European businesses face slowing sales. European sales fell 9% in the third quarter of 2012, largely due to price pressure from European governments.

At the same time, some consumer-goods companies are expanding into health-care products, a market buoyed by an aging population which continues to spend on vitamins and minerals to improve well-being. Reckitt Benckiser Group  last week signed a $1.4 billion deal to acquire U.S. vitamin maker Schiff Nutrition International Inc.,  outbidding German pharmaceutical company Bayer .”

via GSK Invests in India, Nigeria – WSJ.com.

24/11/2012

* India and China row over new map in passport

This provocative action is most curious as China seemed to have moderated its attitude to territorial disputes at the recent ASEAN summit. Wonder if it is national policy or the over-enthusiastic actions of a newly-appointed Foreign Ministry after the 10-year leadership change?

BBC: “A fresh row has broken out between India and China over territorial claims in the north-eastern Indian state of Arunachal Pradesh and the Aksai Chin area in eastern Kashmir.

A woman holds the new Chinese passport on 23 November 2012

In new passports, China’s maps show the two areas as Chinese territory.

The Indian embassy in Beijing is said to have retaliated by stamping Chinese visas with a map of their own which shows the territories in India.

Several of China’s neighbours have also protested against the new map.

Vietnam, the Philippines, and Taiwan have all objected because it shows disputed islands in the South China Sea and Taiwan to be a part of China.

They have described the new design as a violation of their sovereignty.

Chinese official maps have long shown Taiwan and the South China Sea to be part of its own territory, but the inclusion of such claims on the passport has caused considerable anger.

The potentially oil-rich Paracel Islands, claimed by Vietnam since their troops were forced to leave by China in the 1970s and also claimed by Taiwan, make an appearance on the map, as do the Spratly Islands, part of which are claimed by the Philippines.

The disputed Senkaku or Diaoyu islands, at the centre of recent tension between China and Japan are not included in the new document.

Relations between India and China have been uneasy – the two countries dispute several Himalayan border areas and fought a brief war in 1962.

Delhi is yet to officially take up the row over the map with Beijing.”

via BBC News – India and China row over new map in passport.

See also: https://chindia-alert.org/2012/11/22/5365/

24/11/2012

* India may be top recipient of remittances in 2012: World Bank

Loyalty to one’s family has always been a strong trait of Indians

 and Chinese. And nothing demonstrates this stronger than money!

Economic Times: “India is expected to be the top recipient of remittances from its Diaspora in 2012, according to a World Bank report.

The country is set to receive about $70 billion by the end of the year, with China coming second with remittances of $66 billion, according to the study. Philippines and Mexico, with $24 billion each, and Nigeria with $21 billion follow India and China on the list. The other large recipients include Egypt, Pakistan, Bangladesh, Vietnam, and Lebanon.”

via India may be top recipient of remittances in 2012: World Bank – Economic Times.

24/11/2012

* No meatballs’ as IKEA hits hurdles in India

India cannot make up its mind, it seems, whether to welcome foreign retailers or not.

Hindustan Times: “Swedish retailer IKEA said Friday it was reviewing sweeping curbs imposed on what it can sell at its planned new stores in India that will reportedly prevent it offering its famed meatballs. India’s foreign investment panel has rejected 15 of IKEA’s 30 product lines, a report said on

Friday, underscoring the regulatory hurdles faced by foreign stores who are eyeing the Indian market with renewed interest.

“We are now internally reviewing the details (of the investment board’s decision),” an IKEA spokeswoman told AFP, adding that she could not confirm the curbs as reported by The Economic Times on Friday.

Among the lines IKEA has been told by the Foreign Investment Promotion Board that it cannot sell are gift items, fabrics, books, toys, consumer electronics and food, the newspaper reported.

The group will, however, be allowed to sell furniture — its core business.

The investment panel also reportedly told IKEA it cannot offer customer financing schemes because that would violate banking regulations, or open cafes and food markets because that would break food policy regulations.

IKEA’s entry into India — it has pledged to invest $1.9 billion in the coming years — is being closely watched by competitors as a test case for how a large foreign corporation negotiates India’s byzantine rules and red tape.

India’s government announced a string of pro-market and investor-friendly reforms in September that relaxed or removed barriers preventing foreign retailers from operating in the country.

IKEA hopes to open 25 of its trademark blue-and-yellow stores in India through a 100-percent owned unit, Ingka Holding, as part of a wider push into emerging markets like China and Russia.

The government initially insisted that IKEA obtain 30 percent of its supplies from small Indian manufacturers that the Swedish retailer feared would not be able to keep pace with demand.

Later the government dropped the demand specifying the size of the supplier, but kept the 30 percent local sourcing requirement.”

via No meatballs’ as IKEA hits hurdles in India – Hindustan Times.

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