Friday 30 September 2011

CAG of India Appointed External Auditor OF IAEA and WIPO

The Comptroller and Auditor General of India (CAG) has been appointed as the external auditor of two major UN organizations - the International Atomic Energy Agency (IAEA), Vienna and World Intellectual Property Organization (WIPO), Geneva. Both these organizations have traditionally been the stronghold of the developed world and it is for the first time that a Supreme Audit Institution from outside Europe has been appointed to these prestigious positions. These appointments were made in the face of competition from other developed countries like United Kingdom, Spain and Norway.

These appointments for organizations such as IAEA and WIPO, which are specialized agencies, is a recognition of the professional capabilities of the CAG`s auditing talent pool. The international community has acknowledged that public auditors of the Indian Audit and Accounts Department have high professional competence. In particular, their knowledge, expertise and domain experience in conducting performance audits has been highly acclaimed. It is in recognition of such expertise that in the face of competition from Auditors` General of developed countries such as UK and Norway, the CAG of India has been preferred. The tenure of these audits could extend up to six years.

The CAG of India is on the Panel of External Auditors of the United Nations and its Agencies. He is the chair of the Knowledge Sharing and Knowledge Services Committee of the International Organization of the Supreme Audit Institutions (INTOSAI), the global body of Auditors` General which has a membership of 184. He also chairs the INTOSAI Working Group on IT Audit. The CAG of India is also on the Governing Board of the Asian Organization of Supreme Audit Institutions (ASOSAI) and is poised to take over as its Chairman for a term of three years from March 2012.

The institution of the Comptroller and Auditor General of India (CAG) is recognized as one of the most professionally accomplished Supreme Audit Institutions in the world. The CAG occupies a pre-eminent position in the international community of public auditors and is a prominent member of INTOSAI. The recognition of the capabilities of the CAG of India has in the past manifested in his appointment on the Board of Auditors of the United Nations and as external auditor to a number of other major UN agencies like Food and Agricultural Organization (FAO), World Health Organization (WHO), International Maritime Organization (IMO), Organization for Prohibition of Chemical Weapons (OPCW) etc.

Agni II Launched successfully

DRDO Develop Agni II, the pride of India’s strategic arsenal was once again launched successfully on September 30 at 9:30 hrs from the Wheeler Island off the coast of Orissa. The launch was a hattrick after successful launches of Shourya and Prithivi-II, on 24th and 26th September, 2011 respectively. The successful launch once again proved reliability of the Medium Range Surface-to-Surface Missile.

The 2,000 km range missile, already inducted and part of Strategic Forces’ arsenal for strategic deterrence, was launched as a training exercise by the Armed Forces. The two stage missile, equipped with advanced high accuracy navigation system and guided by a novel scheme of state-of-the-art Command & Control System, was propelled by a solid rocket propellant system. The missile reached an apogee (peak altitude) of 220 km and hit the target. All the radar, telemetry systems and ectopic system tracked and monitored all parameters throughout the missile’s trajectory. Two ships located near the target point tracked the missile in the final stage.

Defence Minister AK Antonry, Dr V.K. Saraswat, SA to RM, Secretary Defence R&D & Director General DRDO, Dr. Avinash Chander, Programme Director, Chief Controller R&D (MSS) and Air Marshal K.J. Mathews, Commander-in-Chief, Strategic Forces Command congratulated all the scientists, other DRDO personnel and members of Armed Forces. Project Director  D. Lakshminarayana and his team monitored all the launch operation. The event was witnessed by S.K. Ray, Director RCI, Shri P. Venugopalan, Director, DRDL, Dr. V.G. Sekaran, Director ASL,  S.P. Dash, Director ITR & other senior officials from DRDO and the Armed Forces.

Conference on National Population Register

A Conference of Chief Secretaries, State Coordinators and Directors of Census Operations on the creation of National Population Register (NPR) was held at New Delhi on September 30. The Minister of State for Home, Shri Jitendra Singh delivered the key note address to the delegates and the meeting was Chaired by the Union Home Secretary, Shri R.K.Singh.

In his inaugural address, the Union Home Secretary informed the participants that creation of National Population Register is a vital scheme of the Government, being created under the Citizenship Act, 1955 and Citizenship Rules, 2003. The Government has to compulsorily register every citizen in the country and creation of NPR is the first step towards the creation of the citizens register. He informed that more than 14 crore records have been digitised and more than 50 lakh biometrics have been captured so far under the NPR. A target for completing the exercise by December, 2012 was set by the Home Secretary.

In his key note address to the delegates, the MOS (Home) emphasised the importance of this national flagship scheme of the Government and stated that this is a mandatory exercise. He expressed the hope that with the unstinting cooperation from the State/UT Governments, the work will be completed within the timelines set. Shri Singh congratulated the Registrar General & Census Commissioner, for completing the stupendous task of counting more than a 121 crore persons, scanning more than 26 crore NPR schedules, undertaking data entry and capture of biometrics. Shri Singh reiterated the timelines set by the Government for completing the works by December, 2012 and urged all State/UT Governments to work towards achieving the target in a planned way.

The Registrar General & Census Commissioner, India, Dr. C. Chandramouli made a brief presentation to the delegates on the legal framework in place for creation of NPR.

Arctic Region Controversy

1.Territorial Disagreement Among the Five Arctic Countries:
 Under the 1982 International Convention on the Law of the Sea, the five Arctic Countries - Russia, the US,Canada, Denmark and Norway - control an economic zone within 200 nautical miles of theircoastline. However, frontiers among the five Arctic countries are disputed but the countries didnot attempt to resolve the disagreements due to the frozen Arctic sea. Global warming is shrinking the ice to record low levels bringing previously unattainable oil and gas fields withinreach leading to territorial claims by different countries of the region.

2. Significance of the Arctic Region:
Arctic's Rich Energy Resources: The Arctic region is believed to hold about 25 per cent of the world's undiscovered reserves of oil and gas which would be of immense value once the oil reserves of the Middle East and other places are exhausted.
Arctic's Mineral Resources and Fish Stocks: The Arctic region is also known to be rich in deposits of diamonds, silver, copper, zinc and uranium. It also has rich fish stocks.
Arctic Region Plays a Significant Role in Slowing the Pace of Global Warming: The Arctic region plays an important role in reflecting the sun rays and slowing the pace of global warming.

3. Main Contentious Issues:
 
Lomonosov Ridge:
 
An undersea mountain chain that stretches 1800 km from Greenland near Norway to the Siberian coast.

Commercial Shipping - North-West Passage:
Another area of dispute is the North-WestPassage which could shorten the maritime trade route from Europe to Asia by 2,150nautical miles from the current navigation through Panama Canal. Canada has claimed theNorth-West Passage as its own by virtue of its sovereignty over the archipelago.

4. Territorial Claims by the Arctic Countries:

A. Extension of the Continental Shelf to the Disputed Spots is the Key Issue:
The key issue in the territorial claims by the Arctic countries is whether the continental shelf of the countries claiming the Arctic seabed extends up to the disputed spots. The determination ofthe extension of the continental shelf of the countries involved is difficult as mapping of theseabed beneath the icecap is challenging.

B. Russia:

a. Russia Claims 1.2 Million Sq Km of the Arctic Seabed:
Russia claims 1.2 sq km of the Arctic seabed. In 2001, Russia laid claim to the Arctic seabed, but the UN Commission on the Limits of the Continental Shelf ruled that the claim was not backed by sufficient scientific evidence. Under the International Convention on the Law of the Sea, a coastal country is entitled to a200 nautical miles exclusive economic zone (EEZ) in which a country has sovereign drillingrights for hydrocarbons and other resources. The EEZ can be extended if it is proved thatthe sea floor beyond it is geologically linked to the country's continental shelf.SAKSHI UAI’s STUDY MATERIAL 2008 238.

b. Russia Sends Two Scientific Expeditions to the North Pole to Gather Data to Support Its Claim:
In 2007, Russia send two scientific expeditions to the North Pole to gather data to supportits claim that Russia's northern Arctic region is directly linked to the North Pole viathe underwater Lomonosov Ridge. The scientific expedition has reportedly found evidence that the Arctic Ocean's floor to thenorth of Russia's shores is a continuation of the Siberian continental shelf. This would enable Russia to legally claim the Arctic shelf as its economic zone, according to Russian scientists. In August 2007, the Russian scientific expedition planted a rust-proof titanium Russian flag on the seafloor about 5 km beneath the North Pole.

c. Russia Holds War Games in the Arctic:
In August 2007, Russia held war games in theArctic region, including cruise missile tests and a flight over the North Pole by strategicbombers. The military exercises followed the scientific expeditions to the Arctic region.
 
d. Russia Wants the UN to Decide the Arctic Claim:
Russian scientists have opined that aUN Commission must decide on Russia's claim to the Arctic seabed.
 
 
e. Russia's Claim Disputed by Other Arctic Countries:
Russia's claim to the Arctic seabedis disputed by the other Arctic nations including the US, Canada, Norway and Denmark. Most of the Arctic countries have their own territorial claims to the Arctic seabed.

C. Canada:

a. Canada Claims Sovereignty Over the Arctic:
Analysts point out that Canada has beenclaiming sovereignty over the Arctic lands and waterways since the last 50 years. In August 2007, the Canadian Prime Minister Stephen Harper restaked his country's claim over the Arcticregion by going on an "Arctic sovereignty tour".

b. Canada to Build New Patrol Ships:
In July 2007, the Canadian Government announced that it would build up to eight patrol ships designed to operate in the frozen region.

c. Announced the Construction of the First Arctic Port to Underpin Its Sovereignty:
TheCanadian Prime Minister announced the construction of the first Arctic port on the north side ofBaffin Island to underpin his country's sovereignty in the North Pole.
 
d. Canada Holds Military Exercises in the Arctic:
Canada held military exercises in theArctic territory near the Baffin Island in August 2007.

e. Canada Claims the North-West Passage:
Canada has been claiming the North-WestPassage - which runs below the North Pole from the Atlantic to the Pacific through the Arctic archipelago - as its own by virtue of its sovereignty over the archipelago.

D. The US Pushing for Internationalisation of the Arctic Ocean:
The United States has been blocking Russia's claim to the Arctic seabed. The US has been pushing for the internationalisation of the Arctic Ocean - that is, secure free access to its seabed resources and trade routes. The US has so far not ratified the 1982 UN Convention of the Law of the Seas.

E. Denmark Sends Scientific Expedition to the Arctic to Stake Its Claim:
In August 2007, Denmark sent a scientific expedition to the Arctic to seek evidence that the Lomonsov Ridge is SAKSHI UAI’s STUDY MATERIAL 2008 239
attached to the Danish territory of Greenland, making it a geological extension of the Arcticisland.

5. Conclusion:
 

A. Scramble for Arctic Resources Could Lead to an Environment Disaster:
Scientists feel that opening of the North-West Passage would ignite an "ecological time bomb" as there is no way to clear the oil spills in icy waters. Scientists also warn that a scramble for Arctic resources would threaten its unique wildlife and the Inuit communities that depend on it. This could lead to an environmental disaster.

B. A Treaty Similar to the Antarctic Treaty System Can Protect the Arctic Region from Environmental Disaster:
Analysts opine that there is an urgent need to build an international consensus on adopting a Treaty similar to the Antarctic Treaty system to protect the Arctic region from environmental disaster.
The Antarctic Treaty System recognises the region on the South Pole as an area solely intended for scientific cooperation, keeps territorial claims in abeyance, and does not allow any military activity in the larger interest of humanity.

6. First-Ever Indian Scientific Expedition to the Arctic:
 
Expedition to be an Annual Event: In 2007, Indian Scientists launched the first-ever Indian scientific expedition to the Arctic region. The expedition would be an annual event one in summer and the other in winter, according to the Union Minister for Science and Technology Kapil Sibal. India has sent 26 missions to Antarctica.

Conduct Studies on Climate Change: The Arctic region and the surrounding areas were one of the most important regions which governed the earth's climate. Studies have shown that a tele-connection between the northern polar region and the intensity of Indian monsoon. The Indian scientific expedition would conduct studies on the mechanism of the tele-connection and other climate changes. Under the new Indian Arctic research programme, scientists would conduct studies on use of arctic microbes in biotechnology, glaciology, geology and palaeoclimatology studies.

Experiments to be Conducted at Ny-Alesund in Svalbard Archipelago of Norway:
The Indian scientific expedition would conduct experiments at the Ny-Alesund, located in the Svalbard archipelago of Norway. This is the place where international arctic research facilities are located. Norway, Germany, France, Britain, Italy, Japan, South Korea and China have their own research stations in Ny-Alesund.

India to Consider Having a Permanent Research Station in the Arctic:
 The Union Minister for Science and Technology Kapil Sibal said that India may consider having a permanent research station in the Arctic. India is a signatory to the Svalbard Treaty signed in 1920 which allows signatories to set up base as long as it meets the Norwegian rules.

India-China Relations

Introduction:

1. Rise of India and China Changing Global Balance:
According to Singapore's Minister Mentor Lee Kuan Yew, the rise of India and China was changing the global balance. India and China together account for 40 per cent of the world's working age population and 19 per cent of the global economy in PPP (Purchasing Power Parity) terms, according to Mr. Lee. In the next 20 years their collective share of the global economy could match their percentage of the global population.

2. Asian Renaissance will Depend on How India and China Work Together:
Mr. Lee stressed that Asia's place in the world would depend on how both India and China work together as they rise and actively set out to avoid ending up in opposing camps.

3. Need for India and China to Understand Each Other:
It was vital that India and China understand where they stand vis-a-vis each other, according to Mr. Lee. He opined that the two countries must not be paranoid and suspicious of each other. Instead they can cooperate and compete economically, and each improves its performance by using the other's progress as benchmarks.

4. Major Shift in China's Assessment of India:
 According to Chinese experts on international relations, there is a major shift in China's assessment of India. The assessment is based on the following:
  • China Looks at India as a Comprehensive National Power: India rapid economic growth combined with its growing importance in international affairs has led to China looking at India as a "comprehensive national power."
  • Highest Priority to Relations with India: China accords highest priority for relations with India, according to Chinese experts. It is pointed out that India falls into each of the four major categories of countries that is in China's foreign policy objective to focus diplomatic energies on. The four categories are: developing countries, neighbouring countries, rising powers, and influential players in the international arena.
  • Realisation that Relations with India will be the Key to Stability in Asia: Chinese foreign experts point out that China has realised that relations with India will be the key to stability in Asia. Given the troubled history of the relationship, it is realised that the relationship requires personal care at the highest level.

5. Sino-Indian Ties Poised to Enter a Vibrant and Dynamic Phase:
India's Prime Minister Manmohan Singh said that bilateral relations between India and China were poised to enter a vibrant and dynamic phase, based on a common recognition that the growth and development of both India and China would make positive and long-term contributions to regional and global peace, security and stability.

6. India and China in the Process of Giving Substantive Content to Their Bilateral Relations:
 On the eve of his maiden visit to China, Dr. Singh stated that both India and China were in the process of giving substantive content to their bilateral relations through a comprehensive economic engagement and developing mutually beneficial cooperation. Issues relating to the boundary and cooperation in trans-boundary rivers would be discussed with the Chinese leadership.
 
7. China the Focal Point of India's "Look East" Policy:
The Prime Minister pointed out that China was the focal point of India's "Look East" policy. India and China had established a Strategic and Cooperative Partnership for Peace and Prosperity during the Chinese Premier Wen Jiabao's visit to India in 2005. During the Chinese President Hu Jintao's visit to India in 2006 a 10-point strategy to qualitatively upgrade the bilateral relations was put in place.

8. Economic Ties:
 

A. Large Increase in Bilateral Trade:
Sino-Indian bilateral trade for 2007 was worth $38.6 billion, a large increase from $25 billion in 2006.

B. India's Concern's - Widening Trade Deficit and Composition of Exports:
India's trade deficit increased from $4.12 billion in 2006 to $10 billion in 2007. India is also concerned over the composition of its exports to China, which mainly comprise of low value primary products. Experts feel that India's trade deficit was likely to continue unless the Indians make a much more concerted effort to sell in the Chinese market.

C. India Asked China to Correct the Trade Imbalance:
India's then Commerce Minister Kamal Nath proposed to the Chinese side to look into lifting non-trade barriers and technical barriers to trade against India, as a matter of priority. Specifically, he asked that Indian vegetables and fruits be given access to Chinese markets.

D. Negotiations for a Regional Trade Agreement (RTA):
Chinese experts have suggested an early negotiation of a Regional Trade Agreement (RTA) as a possible solution to overcome India's trade deficit with China. A Joint Task Force was set up by India and China to study the feasibility of an RTA.

E. Indian Industry Opposed to RTA with China:
Indian industry is strongly opposed to a RTA with China, according to the President of the Confederation of Indian Industry, Sunil Bharti Mittal.
  • Indian industry has urged the Government to use utmost restraint when negotiating the matter with China.
  • More time is needed to ascertain that a RTA would not be used to swamp Indian markets with cheap Chinese goods. India is already an instigator of anti-dumping investigations against China.
  • An RTA could involve the recognition of China as a market economy, which India is reluctant to grant due to continued suspicions regarding the transparency of pricing and accounting systems in China.

F. Granting Market Economy Status (MES) to China Could Lead to Fears of Large-Scale Dumping of Chinese Products:
India is reluctant to grant Market Economy Status (MES) to China, which would be the first step towards negotiations of an RTA. If India grants an MES to China, it would mean that India has accepted the pricing figures supplied by China. This could lead to fears of large-scale dumping of Chinese Products. Although 80 countries have granted the MES to China, none of the large economies like the US, the EU and Japan have done so.

G. Chinese Investments Subject to Special Security Clearances:
India has blocked China's investment in certain sectors like telecommunications, port development and cargo carriers on the grounds that certain Chinese companies pose a security threat. Subjecting Chinese investments to special security clearances could cast a question mark on the future bilateral economic ties of the two countries, according to analysts.

H. Balancing the Economic Ties with Security Issues:
The challenge before India and China is to be able to manage the contradictory nature of economic ties with security issues. Balancing both the aspects will have a profound influence on the emerging strategic and security architecture of Asia and the World, according to analysts.

I. Managing Bilateral Economic Relations by Minimising Potential Friction and Maximising Mutual Self-Interest:
China is all set to emerge as the largest trading partner of India. However, India's exports to China formed only 1.46 per cent of Chinese Imports. India is also the 15th largest exporter to China. Analysts suggest that the best way to manage bilateral economic relations is to minimise potential friction and maximise mutual self-interest.

9. India's Strategic Concerns Vis-a-Vis China:
  • Sino-Pakistan relations and the help provided by China to Pakistan's nuclear programme.
  • China's refusal to recognise Arunachal Pradesh as a part of India.

  • Construction of Chinese naval facility on the Coco islands in Myanmar.

10. Boundary Dispute - The Friction over Arunachal Pradesh:

  • Since 1993 India and China have Agreed to Maintain Peace and Tranquillity along the LAC, in the India-China border areas, without prejudice to their respective positions on the alignment of the LAC as well as on the boundary question, External Affairs Minister Pranab Mukherjee told the Lok Sabha in February 2008.
  • The two sides have agreed to clarify the LAC and to take up perceived violations through established mechanisms, including the Joint Working Group, the Expert Group, border personnel meetings, flag meetings and diplomatic channels, according to Mr. Mukherjee.
  • China illegally claims approximately 90,000 square kilometres of Indian territory, including Tawang in Arunachal Pradesh, External Affairs Minister Pranab Mukherjee informed the Lok Sabha.
  • Prime Minister's First Visit to Arunachal Pradesh: Prime Minister Manmohan Singh visited Arunachal Pradesh on January 31, 2008. This was his first visit to the State as Prime Minister. Describing Arunachal Pradesh as the 'India's land of rising sun', Dr. Singh stressed that his Government accorded the highest priority to the development of Arunachal Pradesh and expressed that confidence that the State would emerge as one of the best regions of the country. He also announced the launching of several schemes.
  • China registered its protest against the Prime Minister's visit to Arunachal Pradesh. Chinese officials felt that it was not appropriate for India's Prime Minister to visit a State, major parts of which are claimed by China as its territory.
  • India rejected China's protest against the Prime Minister's visit to Arunachal Pradesh. External Affairs Minister Pranab Mukherjee stressing that Arunachal Pradesh was an integral part of India and the Prime Minister could visit any part of the country.

11. Trust Deficit Remains between the Two Countries:
Despite the establishment of a strategic partnership between India and China in 2005, a serious trust deficit remains between the two countries, according to analysts. It requires courage and political vision on both sides to work at balancing the complex set of factors to strengthen Sino-Indian bilateral relations, according to analysts.
 
II. Background:

1. 1949- Diplomatic Recognition:
India accorded diplomatic recognition to the peoples Republic of China on December 30, 1949. The Peoples Liberation Army (PLA) made China independent through a revolution in 1949.

2. 1954- Accords Signed:
The relations between India and China in the 1950s were very cordial and peaceful. In 1954, the Chinese Premier, Mr. Zou, En Lai visited India which led to the signing of two Accords as follows:

a. First Accord:
India recognised Tibet as an integral part of China and considered it to be an autonomous region of China.

b. Second Accord:
 
The declaration of Panchsheel in the Joint Communiqué. The Panchsheel enshrines the five principles of co-existence as follows:
i) Respect for Sovereignty and Territorial Integrity of all States.
ii) Non-aggression.
iii) Non-interference in Territorial affairs.
iv) Equality and Mutuality.
v) Peaceful Co-existence.

3. 1962- War:
In the late 1950?s China, occupied small portions of territory along the Indo-Tibet Frontier. In 1962, India and China fought a war which resulted in China occupying sizeable portions of the India territory in the West (Ladakh) and in the East (Arunachal Pradesh).

4. 1962 Parliamentary Resolution on Recovery of Indian Territory from China: The Indian Parliament passed a resolution in 1962, pledging to wage an unending struggle till the complete recovery of Indian territory from China and it also forbade cessation of any occupied territory to China as part of any border settlement.

5. Normalisation of Relations - 1988 - Path-Breaking Visit by Rajiv Gandhi to China:
In the 1980?s more efforts were made to normalise the relations. The real break-through in the relations between the two countries came during the path-breaking visit undertaken by Mr. Rajiv Gandhi in 1988.

6. 1990 - Detente:
The 1990?s saw the beginning of the „detente? in the context of changing equations in the global scenario. China?s President, Mr. Jiang Zemin visited India in November 1997. This was the first ever visit by a Chinese Head of State to India. Four agreements were signed during the visit.

7. Deterioration in Relations After India Conducted the Nuclear Tests in 1998: There had been deterioration in Sino-Indian relations after the conduction of nuclear tests by India. China adopted a brazenly partisan attitude by terming India?s nuclear tests as “outrageous” but describing Pakistan?s nuclear tests as only “regrettable”. Senior officials in the government of India articulated the “China threat”.

8. 1999 - Normalisation of Relations:
 In April 1999, China restarted an official dialogue with India. The Joint Working Group (JWG) was convened in Beijing after 11 months delay because of China?s refusal to set dates. The visit by the External Affairs Minister of India, Mr. Jaswant Singh, to China in June 1999, followed by the President, Mr. Narayanan?s visit in early 2000, helped in the normalisation of bilateral relations.

9. 2000 - Indian President’s Visit to China:
The Indian President Mr. K. R. Narayanan visited China from May 28- June 3, 2000. Mr. Narayanan had visited China in 1994 as the Vice-President of India. The Indian President held talks with his Chinese counterpart Mr. Jiang Zemin and other political leaders of China.

10. Irritants in Sino-Indian Relations:

  • Sino-Pak Defence Relationship: The overt and covert military assistance provided by China to Pakistan is the biggest impediment in improving Sino-Indian relations. The Sino-Pakistan collusion in the nuclear field is seen as China?s long term strategy in gaining supremacy in Asia.
  • Boundary Disputes: The non-resolution of Aksai Chin and other boundary disputes. China has laid claim to 90,000 square kms of Arunachal Pradesh. Analysts feel that by not resolving the boundary disputes China wants to keep India under strategic pressure.

  • Military Bases in Tibet and Myanmar: China has built military bases in Tibet and Myanmar which are seen by India as a threat to its national security.
II. Current State of Relations:
1. Defence Ministry’s Annual Report 2008-09:

  • Strategic and cooperative partnership with China progressed during the past one year.
  • Report took note of the White Paper on China’s National Defence, 2008.
  • Double digit growth in Chinese defence expenditure over the previous 20 years leading to significant modernisation of its defence forces, both in terms of quality and quantity.
  • China’s defence modernisation needs to be monitored carefully in the foreseeable future for the implications that it can have on the security and defence of India.
  • China’s military cooperation with Pakistan and other countries in India’s neighbourhood, as well as the possibility of enhancing connectivity with Pakistan through the territory of Jammu and Kashmir “illegally occupied by China and Pakistan” and with other countries would also have direct military implications for India.
  • India would engage China to seek greater openness in its defence policy and posture while taking measures to protect its national security and territorial integrity.
  • Partnership with China progressed further during high-level visits in 2008-09 and the two countries are seeking to build a relationship of friendship and trust, based on equality, which was sensitive to the concerns and aspirations of the other.
  • India and China are engaged in negotiations on the boundary question and have agreed to maintain peace and tranquillity in the border areas through implementation of mutually agreed confidence building measures, pending the final settlement of the boundary issue.

2. Economic Ties:

A. India Imposed a Number of Anti-Dumping Duties and Import Restrictions on Some Chinese Products to Protect Domestic Industries:
  • In June 2009 India imposed a number of anti-dumping duties and import restrictions on a range of Chinese products including toys, textiles, chemicals and mobile phones to protect domestic industries affected by the current financial climate.
  • In June 2009, the Government of India announced a two-year 30 per cent safeguard duty on import of aluminium products from China.
  • In June 2009 a five-year duty on the import of Vitamin-C from China was announced.
B. China Voices Concern over Import Restrictions by India:
  • Following a number of anti-dumping measures initiated by the Indian Government against Chinese products, China has voiced concern that resorting to trade protectionism would undermine the interests of the Indian people.
  • China called for a greater dialogue between the two countries to ensure that the anti-dumping dispute did not derail the rapidly growing trade relationship.
  • Bilateral trade between the two countries grew by 34 per cent in 2008 reaching $51.8 billion.
  • China is currently India’s largest trading partner.

3. Meeting of the Foreign Ministers of India and China (Phuket, Thailand, July 22, 2009):

  • The External Affairs Minister of India S.M. Krishna met his Chinese counterpart Yang Jiechi met on the sidelines of a conference of Foreign Ministers in Phuket, Thailand on July 22, 2009.

  • India and China resolved to further deepen relations, especially in bilateral trade which has been set a target of $60 billion by the end of 2010.


  • At the first meeting with his Chinese counterpart , Mr. Krishna agreed to be in touch with him on major issues such as climate change, the Doha round of trade talks and the global financial crisis.

  • India and China had similar outlook on a number of issues, especially their approach to the global financial crisis, according to Mr. Krishna.

  • There was enough space for both China and India to grow without competing with each other, according to Mr. Krishna.

  • India’s desire to support mechanisms that would ensure lasting peace in the region was conveyed to China.

  • China was looking forward to the visit by India’s President Pratibha Patil.
    4. Fourfold Purpose of the Foreign Ministers Meeting:

    • To get acquainted with each other
    • Deepening the interaction
    • Reviewing the growth of economic ties
    • Coordinating their action in this sphere on the global scale

    III. Conclusion:

    1. Growing Economic Ties have their Implications for Enlarging Bilateral Political Relations:
    The bilateral trade between India and China has been expanding at a fast pace. China has become the largest trading partner of India. Bilateral trade between the two countries has reached $51.8 billion. Analysts point out that the growing economic ties have their implications for enlarging bilateral political relations.

    2. Border Dispute a Test of Sino-Indian Relations:
    China's protests over Prime Minister Manmohan Singh's visit to Arunachal Pradesh in January 2008 could harm the improving Sino-Indian Bilateral Ties. Analysts term China's protests as unwarranted as both sides are currently engaged in a dialogue on the border dispute and have pledged to resolve the dispute in a fair, reasonable and mutually acceptable way. Thus, settlement of the border dispute would be a test of Sino-Indian Relations.

    3. India and China Need to Evolve a Mature Relationship:
    Analysts suggest that India and China need to work closely to avoid potential points of conflict. India needs to clearly state that good neighbourly relations depend on negotiations done in true spirit of give and take. That would form the basis of forging a mature relationship between two of the world's major players of the future.

    4. India and China Need to Play a More Proactive Role for Resolution of Conflicts Across Asia and the World:
    Analysts feel that for the harmonious resolution of conflicts across Asia and the world, India and China need to play a more proactive and better coordinated role. China's President Hu Jintao advocated the development of a multilateral cooperation for creating a multi-polar world as one of the strategies India and China need to follow to enhance their strategic partnership.

  • RIC: Russia-India-China

    Introduction:

    1. Requirements of a Trilateral Relationship:
    Any trilateral formation must look at strengthening of mutual relations of the constituents.
    The areas of mutual concerns must be identified and long-term strategies devised to strengthen cooperation.

    Incremental Approach:
    Instead of an alliance framework aimed at countering the US influence, an incremental approach which has been adopted by India i.e. cooperation on counter-terrorism and jointly developing the energy resources of Central Asian republics is a more feasible approach, according to analysts.

    2. Need for a Trilateral Relationship between India, China and Russia:
    The US presence in Central Asia and Pakistan has renewed the debate on the need for a multi-polar international system in the post-Cold War era. India, Russia and China are concerned about the strategic implications of the US presence in the region for their respective interests in Central and South Asia. A trilateral relationship between the three sides is seen from this angle by analysts.

    3. Factors Favouring the Formation of a Trilateral Relationship between India, China and Russia:

    A. Cooperation Against Terrorism and Development of Energy Resources:
    India and Russia have agreed on the need to include China in a discussion on the Joint development of energy resources and combating terrorism. All three countries are facing threats from Islamic extremists- China in the Xinjiang province, Russia in Chechnya and India in Jammu and Kashmir.

    B. Need for a Multi-Polar International System:
    India, Russia and China prefer a multi-polar international system to counter the growing influence of the US and the role of NATO after the collapse of the Soviet Union, according to analysts. This is possible if the complementary poles pursue political and strategic policies that are not at variance.

    C. Converging Strategic Interests of India and Russia:
    Analysts point out that India and Russia have converging strategic interests and have a long-standing military relationship. Russia endorses India’s position on cross-border terrorism from Pakistan. There is no mutual threat perception on the nuclear issue.

    D. Economic Cooperation:
    Analysts point out that both India and China are keen on economic development and modernisation. Therefore trilateral cooperation between India, Russia and China could yield economic benefits as well.

    4. Factors Impinging the Formation of a Trilateral Relationship between India, China and Russia:

    A. Problems in Sino-Indian Relations:
    China’s special relationship with Pakistan and its supply of nuclear and missile technology to Pakistan. Mutual distrust generated by the unresolved boundary question. China looks towards the growing Indo-US relationship with apprehension and perceives it in terms of an encirclement of China. India feels that by arming Pakistan, China is threatening its security. Sino-Indian bilateral relations have improved recently.
    India and China have a declared policy of no-first-use of nuclear weapons which could be transformed into a formal understanding on a mutually non-threatening nuclear posture.

    B. Bilateral Relationships with the US:
    Analysts point out that the bilateral relations of India, Russia and China with the US is also a factor that impinges the formation of a trilateral understanding between these countries.

    5. India's Views on Trilateral Cooperation:
    Trilateral Cooperation would Contribute to Peace and Development in the Region and the World Trilateral cooperation is not a grouping directed at any nation or bloc.

    6. China's Views on Trilateral Cooperation:
    The three countries can join hands in fields like trade, energy, science and technology to broaden strategic relations.
    The forum of the Foreign Ministers of the three countries could be useful to chalk out a concrete roadmap.

    7. Russia's Views on Trilateral Cooperation:
    The three countries uphold the concept of multipolarity.
    The synergy between the three countries could be utilised to promote their domestic economic development.

    8. First Trilateral Stand-Alone Meeting:
    The Foreign Ministers of India, Russia and China held their first stand-alone trilateral meeting in Vladivostok (Russia) on June 2, 2005. The three Foreign Ministers had been meeting informally on the sidelines of various international forums.

    II. RIC Foreign Ministers Meeting (Yekaterinburg (Russia) May 15, 2008):

    1. Fourth Standalone Meeting of RIC Preceded BRIC Meeting:
    On May 15, 2008 a trilateral meeting of Russia, India, China (RIC) was held in Yekaterinburg (Russia). The RIC meeting preceded the Brazil, Russia, India, China (BRIC) meeting at the same place on May 16, 2008. This was the fourth standalone meeting of RIC at the Foreign Ministers Level.

    2. Joint Communiqué:
    Reaffirmed Commonality of Views on the Global Situation:
    The Joint Communiqué adopted at the trilateral meeting of the RIC Foreign Ministers reaffirmed the commonality in their views on the global situation. For the first time coordinated positions were set out on Kosovo, Iran, Afghanistan and the Asia-Pacific region. India displayed a greater readiness to go along with other RIC partners on these issues.

    Call for Settling Kosovo's Independence in Accordance with Norms of International Law:
    India, for the first time joined Russia and China is stating in the RIC Communiqué that the unilateral declaration of independence of Kosovo was contrary to the UN Security Council Resolution 1244. The Communiqué called for settling the Kosovo issue in accordance with the norms of international law and on the basis of an agreement and through negotiations between Serbia and Kosovo.

    Call for a Political and Diplomatic Settlement of Iran's Nuclear Problem Through Negotiations:
    The RIC Communiqué called for a political and diplomatic settlement of Iran's nuclear programme problem through negotiations. India's External Affairs Minister Pranab Mukherjee stated that India supported Iran's right to peaceful uses of nuclear energy provided it fulfilled its international obligations that all outstanding issues should be resolved through the IAEA and that confrontation and destabilisation in the region had adverse effects on the situation.

    Russia and China Welcomed India's Aspirations for Playing an Enhanced role as an Observer in SCO:
    Russia and China welcomed India's aspirations for playing an enhanced role as an observer in the Shanghai Cooperation Organisation (SCO). India's revived interest in the regional security body, which unites Russia, China and four Central Asian States, was also indicated.

    Common Desire to Expand Multilateral Cooperation with the Central Asian States:
    The RIC Communiqué reaffirmed a common desire to expand multilateral cooperation with the Central Asian States. The three countries agreed to identify various forms of trilateral interaction in the region.

    Deepening Dialogue and Cooperation between the RIC Countries:
    The Communiqué vowed to actively deepen dialogue and interaction between the three countries.

    Call for Expeditious Finalisation of the Comprehensive Convention on International Terrorism:
    Russia and China supported India in calling for expeditious finalisation of the Comprehensive Convention on International Terrorism, submitted at the UN by India.

    Commitment to Further Strengthen Cooperation to Combat Terrorism:
    The three Foreign Ministers reaffirmed their commitment to further strengthen cooperation among their countries to combat terrorism.

    3. India would host the next meeting of the RIC.
     
    4. Significance of the RIC Meeting:

    Display of Enhanced Solidarity on International Issues Indicates the Trilateral Dialogue Acquiring Strategic Dimension:
    Analysts point out that at the RIC Foreign Ministers meeting, Russia, India and China displayed enhanced solidarity on a range of international issues indicating that their trilateral dialogue may be acquiring a strategic dimension.

    RIC Format a Unique Mechanism for Strengthening Cooperation:
    India’s External Affairs Minister Pranab Mukherjee described the RIC format as a unique mechanism for strengthening cooperation. He pointed out that the RIC sent a message to the world that the three leading economies having common views on regional and global issue was of utmost importance and has its impact on the overall international situation.

    India Praised RIC for Extending Its Practical Cooperation to Trade, Technology and Disaster Management:
    India’s External Affairs Minister Pranab Mukherjee praised RIC for extending its practical cooperation to trade, technology, disaster management, relief, health and medicine, which would be highly beneficial to large sections of their populations.

    India - EU Relations

    I. Introduction:

    1. The Reasons Behind Indo-EU Strategic Partnership:
    The following are the main reasons behind the Indo-EU strategic partnership, according to the President of the European Commission, Jose Manuel Borroso:

    A. Shared Fundamental Values:

    Commitment to Freedom and Democracy:
    India and the EU share a common commitment to freedom and democracy, and to independent, free, and vibrant media.

    Respect for Human Rights:
    Both sides strongly committed to ensuring respect for human rights and rule of law.

    Promote Unity in Diversity:
    Both view religious, ethnic and social diversity as a strength, and promote unity in diversity, through tolerance and solidarity.

    Shared Strategic Interest:
    In order to ensure effective multilateralism and meet global challenges, both sides share a strategic interest to join forces as natural allies.

    B. Economic Ties - The Core of the Relationship:

    Bilateral Trade and Investment Below Potential:
    Economic ties form the core of Indo-EU relations. However, trade and investment volumes, despite the impressive growth rates recorded over the past decade, remain well below potential.

    Closer Economic Cooperation Essential to Face Growing Competitive Challenges:
    In order to reap the potential benefits of more trade and investment between the two sides and to improve their economies' ability to face growing competitive challenges brought about by globalisation, closer economic cooperation is essential.

    C. India and EU Important Regional Players:

    EU Seeks to Promote Peace and Stability Beyond Its Borders:
    The EU has expanded from six to 25 members and is expected to expand further. It seeks to promote peace, stability and prosperity beyond its borders.

    India - A Major Force of Stability in South Asia and Beyond:
    India, the largest democracy in the world is a major force for stability in South Asia and beyond.

    Both Sides Emerging Global Powers:
    Both EU and India are emerging as major political powers on the global stage.

    2. Importance of E.U. to India:

    EU India’s Largest Trading Partner:
    The EU is not only India’s largest trading partner but also the largest source of foreign direct investment, according to India’s Prime Minister. However, India accounts for only 1.5 per cent of the EU’s external trade and hence there is vast potential for Indo-EU trade and investment to grow.

    Source of Technology and Home to a Large Indian Diaspora:
    It is also an important source of technology and home to a large and influential Indian diaspora.

    Relation Based on Share Values:
    Prime Minister Manmohan Singh stressed that India and the EU are natural partners and their relationship is based on shared values - democracy, pluralism, rule of law, free press and independent judiciary.

    Broad-Based Engagement:
    Indo-EU partnership has evolved over the years from economic development and cooperation to broad-based engagement on a wide range of issues - globalisation, terrorism, proliferation, energy and environment, according to Dr. Manmohan Singh.

    Need for improving Multipolarity:
    India’s relations with the EU are a matter of high priority because of the need for promoting multipolarity, according to analysts.

    II. Eighth Indo-EU Annual Summit (New Delhi, November 30, 2007):

    1. India Represented by the Prime Minister and Other Ministers:

    The eighth Indo-EU annual summit was held in New Delhi in November 2007. India was represented by Prime Minister Manmohan Singh, External Affairs Minister Pranab Mukherjee, Commerce Minister Kamal Nath and National Security Adviser M.K. Narayanan.

    2. EU Represented by President of the EU Council and Others:
    The European Union (EU) was represented by the Portuguese Prime Minister Jose Socrates as the President of the EU Council, European Commission President Jose Manuel Barroso, European Commissioner for Trade Peter Mandelson and Portuguese Minister of State for Foreign Affairs and Cooperation Joao Gomes Cravinho.

    3. Indo-EU Bilateral Trade and Investment Agreement to be Ready by the Next Summit:
    Prime Minister Manmohan Singh said that both sides are negotiating over a broad-based Indo-EU trade and investment agreement which could be in place by the next summit. Both sides want to recognise that the agreement must be ambitious and more broad based, according to the EU Council President, Jose Socrates.

    4. MoU on the "Country Strategy Paper for India for 2007-2010" Signed:
    India and the EU signed a Memorandum of Understanding (MoU) on the "Country Strategy Paper for India for 2007-2010", which will support India's efforts to achieve the Millennium Development Goals and implement the Indo-EU Joint Action Plan. It has a total budget of 260 million euros.

    5. Joint Statement:

    Reaffirmed Commitment to Successful Outcome of the Doha Development Agenda Multilateral Trade Negotiations:
    The Joint Statement issued at the end of the one-day Summit reaffirmed the commitment of both sides to a successful and timely outcome of the Doha Development Agenda (DDA) multilateral trade negotiations of the World Trade Organisation (WTO), which remained the foremost trade policy priority for the two sides.

    Climate Change - India and EU Agreed Broadly on the Goals of the UN Conference on Climate Change:
    Both sides stressed on the importance of UN Conference on Climate Change which was to be held in Bali in December 2007 and broadly agreed with its goals. However, India and the EU differed on the role of the developing countries in reducing carbon emissions.

    India's Neighbourhood - Expressed Hope that Pakistan Would Return to Stability and Democracy:
    Indian and EU expressed hope that Pakistan would soon return to stability and democracy. The situation in Sri Lanka, Nepal, Bangladesh, Myanmar and Afghanistan was also discussed.
    West Asia Peace Process, Nuclear Proliferation, UN Reforms and Trade were also dealt by the Joint Statement.

    6. Significance of the Eighth Indo-US Summit:

    Summit Reaffirmed to the Common Foundations of Pluralism and Democracy:
    Analysts point out that the eighth Indo-US annual Summit was devoted mainly to the reaffirmation of the common foundations of pluralism, democracy, respect for human rights, and multilateralism.

    The Indo-EU Bilateral Trade and Investment Agreement could be Clinched by End of 2008:
    A significant outcome of the eighth annual summit was a note of optimism that the Indo-US bilateral trade and investment agreement could be clinched by end of 2008. The EU wants firm commitments on simplification of regulatory procedures, intellectual property protection, and public procurement in addition to import tariff reductions. India, on the other hand, wants foreign direct investments from the EU to be stepped up and progress in facilitating the movement of natural persons

    Indo-French Relations

    Introduction:
    1. Improvement in Indo-French Relations: There has been a marked improvement in Indo-French relations after years of neglect, which saw a stagnation of trade, the limited French interest in the Indian market, and the French interest in arms sale to Pakistan.

    2. Reasons for Improvement in Indo-French Relations:
      • Common Strategic Interests: India and France share many common strategic interests and concerns.
      • Political Autonomy: Both have strong traditions of political autonomy.
      • Multipolarity: Both have a stake in promoting multipolarity in international relations. Both the countries favour a more equitable international system, in line with new demographic, economic and geo-political realities. France wants Europe to be one of the poles in the new order and India another.
      • Nuclear Issue - Bilateral Agreement on Civilian Nuclear Cooperation Signed: France has shown a better understanding of the underlying reasons for India’s nuclear tests. India and France signed a bilateral agreement on civilian nuclear cooperation in September 2008. French help in talks with the Nuclear Suppliers Group (NSG) were crucial in seeking changes to the rules governing exports of nuclear goods within the NSG.
      • Defence Cooperation - Uninterrupted Sales and Maintenance Since 1950s: The Indo-French defence cooperation goes back to the 1950’s with uninterrupted sales and maintenance despite India's 1998 nuclear tests. The French Mirage-2000 aircraft plays a strategic role in the Indian defence plans. Currently, India and France are engaged in increasing the military cooperation in many fields.
      • France Backs UN Security Council Membership for India: France has backed India’s claim to permanent membership in an expanded UN Security Council. It is the third permanent member of the Security Council - after Russia and Britain- to publicly back India's claim.
    3. France Wants to Develop a General Relationship with India in Two Key Areas: French Foreign Minister Bernard Kouchner who visited India in December 2007 stated that France would like to develop a general relationship with India in the following two key areas:
      • Stronger Cooperation in the Key Areas of Future: Academic exchanges, scientific and technical cooperation in high technology, and industrial cooperation through the development of direct investment.
      • Development of Concertation with India on Global Issues that Require a Collective Response: The combat against global warming and emerging diseases, and world economic and financial regulation. In this regard, the suggestion of France to enlarge the Group of 8 (G-8) to G- 13 to include India, China, Brazil, South Africa and Mexico is significant for India.
    4. Issues where India and France Differ:
      1. A. Iran:
        • France is opposed to Iran obtaining nuclear weapons and sees Iran as a threat. It has maintained that since Iran was not complying with its international obligations, France would continue, along with its partners, to examine further binding measures within the framework of the UN.
        • India's decision to re-engage with Iran and the remarks of the then Indian Foreign Secretary Shivshankar Menon describing Iran as a factor of stability and security in the region would not be agreeable to the France.
      2. B. Myanmar - France Feels India's Attitude Towards the Military Regime in Myanmar is Soft: Analysts point out that France is of the opinion that India's attitude towards the military regime in Myanmar is soft. It wants India to take a tougher stand, even support the demand for sanctions against the military regime in Myanmar.
      3. C. Supply Arms by France to Pakistan: Despite the political turmoil in Pakistan, France decided not to place an embargo on arms sales to Pakistan.
      4. D. India does not want Further Hardening of the Immigration Laws in France: India looks at immigration and the free movement of people as an important issue and does not want the further hardening of the immigration laws in France.
    Background:
    1. French Assistance during Wars: During the UN embargo on arms supplies to India in 1965 following the Pakistani attack, France under the leadership of General De Gaulle came to India’s assistance. During the Bangladesh war also the French attitude was sympathetic.
    2. Cooperation in the Field of Nuclear Energy: There has been a long period of Indo-French cooperation in the field of nuclear energy and space technology. France replaced the US as the supplier of low enriched uranium for Tarapur reactor. The arrangement continued till the 90’s when the France joined the NPT.
    3. Foreign Policy of France: Analysts feel that France has been conducting three foreign policies- a) as part of the Western alliance, b) in exercise of its own independence and c) to subserve its commercial interests. India has experienced all the three foreign policies of France.
    4. Indo-French Strategic Dialogue:
      • Proposal Formalised in 1988: The decision for a strategic dialogue was taken in January 1998, during the French President’s visit to India. The proposal was formalised during the former Prime Minister Atal Behari Vajpayee’s visit to France in 1998.
      • Issues Covered by the Dialogue: The Indo-French Strategic Dialogue covers a wide range of issues including the strategic balance in South Asia and the Indian Ocean, India’s relations with China and Pakistan, India’s nuclear doctrine, the progress in the unification of European Union, and NATO and its doctrine.
    5. Significance of the Strategic Dialogue:
      • Global Role for India: Analysts feel that the on-going strategic dialogue between India and France will lead to the identification of common global approach and to persuade Russia to share it. This is a right step towards ending the unipolar world dispensation and establishing genuine multipolarity. This will give India a meaningful global role in the changing international politics.
      • Adds Balance to India’s Nuclear Dialogue with the US: Defence analysts feel that the strategic dialogue with France also adds some balance to the on-going Indo-US nuclear dialogue. A nuclear dialogue with France can give a boost to India’s post-Pokhran diplomacy.
      • Transfer of Advanced Technology: According to analysts India and France are trying to arrive at a formulation which will allow the transfer of advanced technology, including civilian nuclear know- how, to India against India’s assured compliance to important non-proliferation rules.
    6. Indo-French Defence Cooperation: The blueprint for Indo-French defence cooperation was established in 1988. The idea was to start a strategic dialogue, project the country’s defence needs and increase cooperation both in terms of direct contacts between the armed forces and technological and scientific collaboration. However, France’s decision to sell Mirage jets to Pakistan stalled the project and for seven years defence cooperation between India and France was low. Interests again revived with the setting up of the High Committee on Defence.
    7. French President's Visit to India (January 25-26, 2008):
      • French President Nicolas Sarkozy Chief Guest at the Republic Day Parade
      • Visit Focussed on Three Main Domains - Strategic Partnership, Economic Ties and Student Exchange
      • Defence Cooperation to Go Beyond Buyer-Seller Relationship
      • Bilateral Pact on Cooperation in Civil Nuclear Energy Finalised, to be Signed After India gets Special Exemption from the NSG
      • France Supports India's Bid for a Permanent Membership of the UN Security Council
      • Cooperation between the Intelligence Agencies to Combat Terrorism
      • Five Agreements Including Cooperation in Nuclear Research Signed
      • Intensifying Exchange of Nuclear Scientists
      • Agreement for Mutual Protection of Classified Information Signed
      • Bilateral Trade Target of 12 Billion Euros by 2012 Set
      • French President Backs India's Entry into the G-8
    8. Prime Minister Manmohan Singh’s Visit to France (September 2008):
      1. India, France Sign Nuclear Agreement (September 30, 2008):
        • France the First Country to Enter into an Agreement with India after the NSG Waiver: During Prime Minister Manmohan Singh's visit to France, India and France signed an agreement on civil nuclear cooperation on September 30, 2008. France was the first country to sign a civil nuclear cooperation agreement with India after the NSG agreed to lift sanctions on India's nuclear trade.
        • The Agreement called "Cooperation Agreement Between the Government of the Republic of India and the Government of the French Republic on the Development of Peaceful Uses of Nuclear Energy," was signed by India's Atomic Energy Commission Chairman Anil Kakodkar and the French Foreign Minister Bernard Kouchner in the presence of India's Prime Minister Manmohan Singh and French President Nicolas Sarkozy.
        • The Agreement opens the way for India to do business with France in nuclear reactors, nuclear fuel supply, nuclear safety, radiation and environment protection and nuclear fuel cycle management.
        • The Agreement added a new dimension to Indo-France strategic partnership, according to Prime Minister Manmohan Singh.
        • Indo-French civil nuclear cooperation has a long history which includes the fast breeder test reactor at Kalpakkam near Chennai, the heavy water production facilities at Vadodara, and the supply of enriched uranium for the Tarapur nuclear plat after the Pokhran nuclear test in 1974.
        • The Agreement was contextualised in the global need to find non-polluting energy sources in order to combat climate change.
        • As responsible States with advanced nuclear technologies, including in the nuclear fuel cycle, both India and France are committed to the highest standards of safety and security and in accordance with their respective nuclear policies and international obligations, according to a background note.
        • The two countries also reaffirmed their common concerns and objectives in the field of non- proliferation of weapons of mass destruction and their means of delivery including a view of possible linkages to terrorism.
        • India and France would soon hammer out commercial agreements to operationalise the nuclear agreement, according to Dr. Kakodkar.
        • In December 2008 French company Areva signed an agreement with the Nuclear Power Corporation of India Limited (NPCIL) for supply of 300 tonnes of uranium to the nuclear plants of India which were running ARTICLE FOR SAKSHI UAI’S STUDY MATERIAL 2009 at 45 per cent of their capacity. The contract came as a follow-up of the nuclear cooperation agreement signed between India and France in September 2008.
    Prime Minister Manmohan Singh Invited as the Chief Guest for France’s National Day Celebrations (July 14, 2009):
    1. France invited India’s Prime Minister Manmohan Singh to be Chief Guest at its National Day celebrations on July 14, 2009. The invitation by French President Nicolas Sarkozy sought to reciprocate India’s gesture of making the French President Chief Guest at the Republic Day celebrations in 2008.
    2. Indian Armed Forces Invited to Take Part in the Parade:
      • 400 Indian Armed Services personnel from the three wings took part in the French National Day parade on July 14, 2009.
      • The Maratha Light Infantry led the parade followed Navy and Air Force units accompanied by their own bands.
    3. French President Paid Tribute to India:
      • French President Nicolas Sarkozy paid tribute to India saying that he was privileged to welcome Prime Minister Manmohan Singh.
      • Indian Prime Minister was the Guest of Honour at the Bastille Day parade to mark the 220th anniversary of the French Revolution.
      • Mr. Sarkozy pointed out that India was a major force in the 21st century which would fully realise its great power potential.
    4. Indian Prime Minister’s Address:
      • Prime Minister Manmohan Singh called for further strengthening the strategic partnership that had developed between India and France since 1998.
      • It was a rare privilege and a great honour for India’s Armed Forces to be invited to take part in the grand spectacle that is the July 14 parade, according to Dr. Singh.
      • India’s freedom struggle took inspiration from the French Revolution and guided the founding fathers of India’s Constitution, according to the Prime Minister. Recalling the 1789 French Revolution, Dr. Singh pointed out that 220 years ago, the great city of Paris saw the emergence of a powerful voice, the universal recognition of the ideals of Liberty, Equality and Fraternity. These ideals changed the course of history.
    5. Issues Discussed during the Meeting of the Two Leaders:
      • Fight against terrorism
      • Situation in Pakistan, Afghanistan, Iran, Iraq, West Asia and the Gulf
      • Furthering Cooperation in the Defence and Nuclear sectors
      • French firm Areva is close to finalising agreements with Nuclear Power Corporation of India Limited.
      • France hopes to sell the Rafale fighter planes to India.
    6. The G-8 line to raise the bar on transfer of enrichment and reprocessing technologies (ENR) to countries that do not have it would have no bearing on France’s nuclear trade with India.
    Conclusion:
    1. Invitation to the Indian Prime Minister to be the Chief Guest for the National Day Parade Points to the Strengthening of the Indo-French Strategic Partnership: Analysts in France felt that the decision to invite Indian Prime Minister Manmohan Singh to be the Chief Guest for the National Day parade pointed to the strengthening of the strategic partnership between India and France.
    2. Growing Bilateral Ties:
      • France backed India at the Nuclear Suppliers Group (NSG) and the International Atomic Energy Association (IAEA) meetings in 2008 that ended India’s isolation from the civil nuclear mainstream.
      • France is one of the few countries, apart from the US and Russia, with whom India has signed a nuclear cooperation agreement.
      • India and France continue to hold joint naval exercises and France was selected as the Indian Air Force’s first partner for joint fighter level exercises in 2003.
      • Trade, cultural and people-to-people contacts are being worked on by both sides.
      • France is India’s third largest supplier of defence equipment and has maintained it as a reliable partner.
    3. Significance of the Indo-French Agreement on Cooperation in Civil Nuclear Energy:
      • Interest in Participating in India's Civil Nuclear Programme Not Limited to the US: The signing of the Indo-French Agreement on cooperation in civil nuclear energy reflects that interest in participating in India's civil nuclear energy programme is not limited to the US only. India need not depend entirely on the US for nuclear fuel and reactor supplies as and when it is able to import both for its civil nuclear programme, according to analysts.
      • There is more to Civil Nuclear Cooperation than the Supply of Fuel or Transfer of Technology: The Agreement brings out the fact that there is more to civil nuclear cooperation than mere supply of fuel or transfer of nuclear technology. India and France have additional cooperation in the civil nuclear energy sector in the form of Indo-French Joint Committee on Atomic Energy along with an ongoing dialogue between the nuclear safety authorities of the two countries.
      • Strengthens India's Position as a Non-Proliferating Nuclear Power: Analysts point out that the civil nuclear agreement strengthens India's position as a non-proliferating nuclear power. The French President Nicolas Sarkozy complimented India on its non-proliferation record and noted its moratorium on further nuclear weapon testing.
    4. Indo-French Relations Need to Rest on Three Pillars - Academic Exchanges, High Technology Cooperation and Industrial Cooperation: The then Union Commerce and Industry Minister Kamal Nath pointed out that Indo-French relations need to rest on three pillars - academic exchanges, scientific and technical cooperation in high technology, and industrial cooperation through the development of direct investment.

    Indo-Japanese Relations

    I. Introduction:

    1. Asia-Centred Global Order:
    Analysts point out that the global strategic opinion is currently debating the global power shift from the West to the East. This implies the change in international relations in the coming years. India and China are seen as the powers on the rise. Japan the largest economy in Asia is also seen as a major player. It is felt that the Euro-Atlantic order is giving way to Asia-centric order.

    2. Profound Impact of Relations between India-China-Japan on Asia and the Evolution of a Multilateral Global Order:
    • In the changing international relations and shift of global focus to Asia, the relations between India, China and Japan would have a profound impact on the peace, security and development in Asia and the evolution of a multilateral global order.
    • In political and security terms India and Japan do not have any dispute but both have complex territorial disputes with China.
    3. Japan Keen on Upgrading Its Bilateral Relations with India:
    According to the Japanese Foreign Office spokesperson Tomohiko Taniguchi, Japan is very much interested in upgrading its bilateral relations with India so that the two countries can work together on the basis of global partnership and also strategic partnership.

    4. Issues between the Two Countries:
    • Global Partnership with a Strategic Orientation:
      Analysts point out that India and Japan are currently engaged in a global partnership with a strategic orientation. Global partnership denotes dialogue on issues of international concern, while a strategic partnership would signal a closer overall relationship.

    • Negotiations for a Bilateral Economic Partnership Agreement:
      The two sides are also negotiating a bilateral economic partnership agreement.

    • Japan Keen to Invite India for Maintaining Maritime Security:
      The Japanese Foreign Office Spokesperson said that Japan was exploring the possibility of inviting India to join Japan, the US and Australia for maintaining maritime security through anti-piracy and anti-terror cooperation.

    • Structured Discussions in the Defence Field:
      India's Foreign Secretary Shiv Shankar Menon said that India and Japan had agreed to structured discussions in the defence field in May 2006 during the visit of India's Defence Minister to Japan. The Coast Guards of the two countries were already holding annual exercises and a memorandum of understanding (MoU) between the two sides had been agreed upon in November 2006.
    5. Strong India-Japanese Relationship would Play a Significant Role in the Emerging Asian Security Architecture:
    Prime Minister Manmohan Singh described the relations with Japan as one of the most important bilateral relationships. He pointed out that a strong India-Japan relationship would play a significant role in the emerging Asian security architecture and would contribute to the peace, stability and prosperity of Asia and the world.

    II. Background:

    1. Japanese Prime Minister's Visit to India (April 29-30, 2005):
    No specific agreements were signed between India and Japan during the visit of Japanese Prime Minister, Junichiro Koizumi to India. The entire visit focussed on the Joint Statement and the Eight-Fold Initiative.

    A. Joint Statement:

    a. Asia Emerging as Leading Growth Centre of Global Economy:
    In a Joint Statement issued after talks between India's Prime Minister, Manmohan Singh and Japan's Prime Minister, Junichiro Koizumi, India and Japan recognised that Asia was now emerging as the leading growth centre of the global economy and exerting an ever-greater influence in global affairs. Both leaders expressed happiness at the rapid transformation taking place in Asia and confidence in its bright future.

    b. Creating an Arc of Prosperity across Asia:
    Both countries had a common interest in and complementary responsibility for promoting security, stability and prosperity in Asia. Both leaders agreed on an action plan to ensure that their bilateral cooperation works towards providing regional stability and creates an 'arc of prosperity' across Asia.

    c. Indo-Japanese Global Partnership Reflects Convergence of Interests:
    The two leaders held that their global partnership reflected a broad convergence of their long-term political, economic and strategic interests, aspirations, objectives and concerns.

    d. High-Level Strategic Dialogue:
    A high-level strategic dialogue was formalised to include maritime and energy security among other areas, between National Security Adviser, M.K. Narayanan and diplomatic adviser to the Japanese Prime Minister, Yoriko Kawaguchi.

    e. Partners Against Proliferation:
    India and Japan pledged to work as partners against proliferation of Weapons of Mass Destruction (WMD).

    f. Joint Study Group to Consider the Feasibility of an Economic Partnership Agreement:
    The two leaders directed that the Joint Study Group on furthering economic relations, to be set up in June 2005, submit its report within a year, and consider the feasibility of an economic partnership agreement.

    g. Cooperation on UN Security Council Reform:
    The Joint Statement also emphasised on the importance of taking a decision on UN Security Council reform before the UN summit in September 2005.

    B. Eight-Fold Initiative to Give Strategic Orientation of the Global Partnership:
    • Enhanced and upgraded dialogue architecture.
    • Expansion of trade and investment flows and exploration of an Indo-Japan economic partnership agreement.
    • Enhanced security dialogue cooperation.
    • Science and Technology Initiative.
    • Cultural and academic initiatives and strengthening of people-to-people contacts.
    • Cooperation in ushering a new Asian era.
    • Cooperation in the UN and other international organisations.
    • Cooperation in responding to global challenges and opportunities.
    2. Significance of the Visit:

    a. Reinforcing the Strategic Relationship:
    Analysts point out that the visit of the Japanese Prime Minister, Junichiro Koizumi to India was aimed at reinforcing the strategic relationship that has developed between the two nations, especially in light of their cooperation for permanent membership of the UN Security Council.

    b. Reasons Behind the New Warmth in Indo-Japanese Relations:

    Japan Views India as a Potentially Important Ally:
    Analysts point out that the visit to India by the Japanese Prime Minister demonstrates that Japan views India a potentially important ally in the emerging international order. It is felt that Japan's tense relations with China could have provided an additional motivation for building ties with India.

    Sustained Relations with Japan Part of India's Policy of Building Closer Ties with Major Powers:
    Analysts opine that sustained engagement with Japan is part of India's policy of building closer ties with all the major powers. Stronger relations will help India in establishing India as a key player in the Asia-Pacific region, and the larger international system.

    c. Imparting Strategic Orientation to their Global Partnership:
    The Joint Statement and the Eight-Fold initiative pledge for imparting strategic orientation to their global partnership. This new relationship will be developed through three tiers of cooperation, bilateral, regional and global. The strategic elements of the dialogue will be identified by the national security advisers of both countries.

    d. Greater Cooperation in the Security Arena:
    Indo-Japanese cooperation in the security arena would be enhanced. The Indian coast guard and the Japanese coast guard will initiate steps to establish a framework for effective cooperation. The Indian Navy and the Self Defence Force of Japan will also strengthen their cooperation.

    e. Focus on Enhancing Economic Ties:
    During the Japanese Prime Minister's visit to India both sides decided to enhance economic ties. The aim is to impart a 10-fold increase in trade from $4 billion in five years. Japan will assist India in large infrastructure projects. One such project is the high-speed computerised freight trains between metro cities and running parallel to the Golden Quadrilateral Highway network.

    III. Prime Minister Manmohan Singh’s Visit to Japan (October 21-23, 2008):

    1. Joint Declaration on Security and Cooperation between India and Japan:
    • The Security declaration contains elements like joint exercises, disaster management, counter-terrorism, piracy and non-proliferation.
    • The declaration builds on the existing momentum in defence ties between India and Japan.
    • It seeks to gradually widen the ambit of defence ties with a view to influence the nature of Asia’s emerging security architecture.
    • Both countries asserted that their partnership would be an essential pillar for the future architecture of the region.
    • Declaration includes policy coordination on regional affairs in the Asia-Pacific region, bilateral cooperation within multilateral frameworks in Asia, in particular the East Asia Summit (EAS), ASEAN Regional Forum (ARF) and the ReCAAP process against piracy in South-East Asia.
    • The mechanism of cooperation include regular Foreign Office consultations and Defence Ministry and Armed Forces interactions, including bilateral and multilateral exercises.
    2. Significance of the India-Japan Joint Declaration on Security Cooperation:

    India-Japan Security Declaration a Significant Milestone in Building Asian Security Power Equilibrium:
    Analysts feel that the India-Japan security cooperation declaration was significant milestone in building Asian power equilibrium. A group of Asian countries linked by strategic cooperation and sharing common interests could become critical to institute power stability in a scenario where shifts in economic and political power are increasing Asias security challenges.

    India-Japan Security Cooperation Not Limited to Bilateral Cooperation but also to the Security in the Asia Pacific:
    Analysts point out that the India-Japan joint declaration on security cooperation recognises the common commitment of India and Japan to democracy, open society, human rights and the rule of law. The declaration obligates the two sides to work together to build bilateral defence cooperation as well as security in the Asia Pacific.

    India-Japan Security Cooperation Not Directed Against China:
    Japan Regards Security Cooperation with India as very important, according to the Japanese Prime Minister Taro Aso. He stressed that there was no assumption of a third country as a target such as China. Indias Prime Minister Manmohan Singh also stressed that the Indias economic relations and security cooperation with Japan would not be at the cost of any third country, least of all China.

    India only the Third Country to Sign a Security Cooperation Document with Japan:
    Analysts point out that Japan considers India Crucial to its strategic policy. India is only the third country after the US and Australia, with which Japan has signed a security cooperation document.

    3. Economic Cooperation:
    • Japan committed $4.5 billion to the 1,468 km-long freight corridor between New Delhi and Mumbai.
    • India’s bilateral trade with China in the past one year alone was more than the whole of India’s total trade with Japan, according to Prime Minister Manmohan Singh.
    • India and Japan working hard to finalise the proposed Comprehensive Economic Partnership Agreement (CEPA). Differences remain in case of agriculture and pharmaceuticals where Japan is resisting Indias demands for market access.
    • The Joint Statement issued by the two countries stressed that the early conclusion of the WTO’s Doha Round negotiations was vital for the maintenance and development of the international trade system.
    • Economic Cooperation, the “first leg” of bilateral relations with Japan, had yet to realise its full potential, according to Indias Foreign Secretary. Political and security cooperation was the “second leg” of the bilateral relationship.
    IV. Third Round of India-Japan Strategic Dialogue (Tokyo, July 03, 2009):

    1. Foreign Ministers of India and Japan Meet in Tokyo:
    Indias External Affairs Minister S.M. Krishna and his Japanese counterpart Hirofumi Nakasone met in Tokyo on July 03, 2009 for the third round of the India-Japan strategic dialogue. The meeting was an annual exercise.

    2. Both sides agreed to sustain and possibly expand their canvas of cooperation in the bilateral and international domains.

    3. The two countries agreed to work actively together for the accomplishment of the dedicated freight corridor project in India and for the early realisation of the Delhi-Mumbai industrial corridor project.

    4. Economic Ties:
    • No timetable set for the finalisation of an over-arching comprehensive economic partnership agreement.
    • Both sides emphasised the need for a high-quality and mutually beneficial accord.

    5. Security Cooperation:
    • The two Ministers discussed follow-up measures for formulating an “action plan” on the unprecedented Joint Security Declaration on Security Cooperation issued during the Indian Prime Ministers visit to Japan in October 2008.
    • A bilateral dialogue on maritime security, inclusive of anti-piracy cooperation, would start soon.

    6. Nuclear Issues:
    • Meeting of minds on the issue of worldwide nuclear disarmament and non-proliferation.
    • Japan appreciated India’s ongoing observance of a voluntary moratorium on nuclear-weapon tests and expressed hope that India would sign the CTBT and ratify it.
    • Japan was also hopeful of cooperation with India for an early start of multilateral negotiations on a Fissile Material Cut-off Treaty (FMCT).
    • India assured Japan of its constructive participation in nuclear disarmament talks.
    • India reaffirmed its commitment to a universal, non-discriminatory, and verifiable regime for a nuclear weapons-free world.

    7. Climate Change:
    • India emphasised the need for an ambitious but also an equitable and fair solution.
    • Both sides shared the view that they should step up their bilateral dialogue on this issue.

    V. Significance of the India-Japan Strategic Dialogue:
    • The overall agenda for India-Japan strategic dialogue is vast. The scope of the dialogue is wide and the issues include the economic well-being of people, eco-friendly development, energy security, and international peace and stability.
    • The growing convergence of views on the issue of worldwide nuclear disarmament is significant as Japan was opposed to India’s nuclear tests and had imposed economic sanctions on it.
    • The India-Japan strategic dialogue points to the fact that Japan has realised that India is a responsible nuclear power. Indias nuclear weapons are not an irritant in the overall India-Japan relations.
    • The „Strategic and Global Partnership agreed to by India and Japan is a stimulus package for dialogue between the two countries. It provides for talks aimed at specific agreements, on cooperation in the bilateral and multilateral domains, according to analysts.
    • The India-Japan strategic dialogue was not designed to send any political signal to China. The new dynamics of Sino-Indian relations did not figure in the India-Japan strategic dialogue.

    VI. Conclusion:

    1. Major-Shift in Indo-Japanese Relations:
    Analysts point out that the agreed move to view the bilateral relations from the prism of strategic interests in the regional and global perspectives signifies a major shift in Indo-Japanese relations.

    2. Prime Minister's Visit in the Context of India's Growing Importance for Japanese Diplomacy:
    According to the Japanese Foreign Office spokesperson, Indian Prime Minister's visit to Japan and his summit meeting with his Japanese counterpart took place in the context of India's growing importance and influence for Japanese diplomacy.

    3. Factors Behind the Growing Indo-Japanese Relations:

    Analysts opine that the following factors have played a key role in bringing together India and Japan closer:
    • India's View that Japan must have Its Rightful Place in the World:
      In 1957 India had accorded a warm welcome to then Japanese Prime Minister Nobusuke Kishi. At a time when Japan was treated as an enemy state in the rest of Asia, India's then Prime Minister Jawaharlal Nehru insisted that Japan must have its rightful place in the world. When rest of Asia was demanding reparations from Japan, India chose to waive its claims. Thus, India's political empathy for Japan has become important in the current context where Japan wants to become a normal power.

    • At a Time when Japan wants to take New Security Responsibilities in Asia, India which has no Disputes with Japan is seen as welcome partner:
      Analysts point out that the current Japanese Prime Minister Shinzo Abe wants to amend Japan's pacifist Constitution so that Japan can become a normal power and take new security responsibilities in Asia. Unlike the rest of Asia which could be sceptical about Japan's political change, India which has no disputes with Japan is seen as a more welcome partner.

    • Rise of China has Compelled Japan to Review Its long-term Options in Asia:
      Analysts point out that the rise of China has compelled Japan to review its long-term options in Asia. In this context, political and security cooperation with India has become a component of Japan's new strategy. However, the Indo-Japanese global and strategic partnership is more focused towards gaining flexibility in their conduct of foreign and security policies in Asia rather than seeking to contain China, according to analysts.

    • Japan wants to Avoid Overwhelming Economic Dependence on China:
      In 2005 there were anti-Japan protests in China which underlined the dangers of Japan's overwhelming dependence on China. Japan was looking for another important economic relationship and India as a rising economic power in Asia looked a dependable partner for Japan. The result was the plan to establish a Comprehensive Economic Partnership Agreement to fully utilise the economic potential between the two countries.

    • Shared Political Values:
      After the visit of India's Prime Minister Manmohan Singh to Japan in December 2006, the two sides have injected the notion of shared values into the bilateral relations. The two countries are the major democracies of the world and have a common commitment to democracy.
    4. Elevation of Indo-Japanese Bilateral Relations Not Aimed at Countering China:
    India has emphasised that the elevation of the Indo-Japanese bilateral relations were not aimed at countering China. It was emphasised that India, China and Japan should be the three countries which will have to be the anchors of stability and progress in Asia.