Posts tagged ‘India’

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.

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.

23/11/2012

* India test-fires missile interceptor

India flexes its muscles. Is it aimed at China or Pakistan; or both?

Times of India: “India on Friday test-fired a ballistic missile interceptor from a defence base in Odisha as part of its efforts to create a shield against incoming enemy missiles, defence officials said.

The indigenous Advanced Air Defence (AAD) interceptor missile was fired from Wheeler Island off the Odisha coast near Dhamra in Bhadrak district, about 170 km from here.

The interceptor was fired a few minutes after the target missile was fired from the Integrated Test Range at Chandipur-on-sea in Balasore district, about 70 km from Wheeler Island.

India is developing the interceptors which have been successfully tested several times in the past, to provide air-shield to important Indian cities against hostile attacks.”

via India test-fires missile interceptor – The Times of India.

21/11/2012

* India to miss export target

Bad news for ruling Congress Party as national general elections are scheduled for next year.

WSJ: “India’s merchandise exports are set to fall way short of initial estimates because of a demand slowdown in key markets, shows a government projection that is likely to deepen concerns on the country’s financial health and hurt its currency.

India’s exports could be as low as $291 billion in the fiscal year through March, compared with the initial target of $360 billion, according to a trade ministry document. At best, that if market conditions improve dramatically from now, exports could total $300 billion to $320 billion.

via India to Miss Export Target – WSJ.com.

21/11/2012

* India outraged: voices rise in crescendo against ‘Facebook arrests’

Technoholik: “Oppressive, deplorable, arbitrary… the adjectives flew freely Tuesday as Indians across all sectors verbalised their outrage at the arrest of two young women who questioned on Facebook the shutdown in Mumbai after Shiv Sena chief Bal Thackeray‘s death.

Shaheen Dhada, left, and Renu Srinivas, who were arrested for their Facebook posts, leave a court in Mumbai on Nov 20, 2012

A day after 21-year-old Shaheen Dabha was arrested with her friend, who had ‘liked’ the post on Facebook, and her uncle’s clinic in Thane was vandalised, police arrested nine people believed to be from the Shiv Sena. Both the women were arrested Sunday – for “hurting religious sentiments” and under the Information Technology Act, 2000 – and released on bail Monday. Police also launched an inquiry against the arrests and the vandalism in Thane, near India’s financial and entertainment hub Mumbai.

But that did little to curb the democracy vs dictatorship debate and the mounting fury over police high-handedness. The topic was hotly discussed in college and school classrooms, in offices, on social networking sites and was also the top trending topic on Twitter. From corporates and students to politicians and academics, the voices of protest, young and old, rose in unison. “I am so scared to write on facebook… My freedom of expression is killed by the arrest of two young ladies in Mumbai,” wrote Guwahati-based wildlife activist Firoz Ahmed on his Facebook wall.

“Police officers who arrested the two girls in Mumbai shud be immediately dismissed. That’s minimum that the govt ought to do,” tweeted activist-turned-politician Arvind Kejriwal. “Now you can’t ask questions about why there should be a bandh? Did anyone notify the police that this is actually a democracy?” Mumbai-based author Jerry Pinto wrote angrily on his Facebook wall. In Mumbai-based communications professional Kumar Manish’s view, the arrests were an “oppressive way of muzzling voices”. “It is unfortunate and deplorable that Maharashtra Police, a state functionary, acts and reacts within couple of hours for an action which is within the laws enshrined in the Constitution of India… We are living in a democracy, let us not make it ‘demo-crazy’,” he added.”

via India outraged: voices rise in crescendo against ‘Facebook arrests’ | Technoholik.com.

21/11/2012

* Hope rule of law will prevail in Pak in 26/11 case: Khurshid

The Hindu: “With the execution of lone surviving Mumbai attacks gunman Ajmal Kasab, India hopes “rule of law” will prevail in Pakistan as well, said External Affairs Minister Salman Khurshid even as civil society organisations were saddened by the end to the country’s moratorium on capital punishment.

Mr. Khurshid was referering to a trial in Pakistan of seven persons accused of masterminding the Mumbai attacks. The Minister said India had not received any request from Pakistan for handing over the body of Kasab whose hanging came barely 12 hours after India voted against a non-binding resolution in the United Nations banning the death penalty.”

via The Hindu : News / National : Hope rule of law will prevail in Pak in 26/11 case: Khurshid.

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