India's Economic Ties with Western & African/ME countries

[ericos87]

hi there,

I came up with a new thread called Look East & West. This has to do with India's ties and cooperation with both Eastern (including Middle-East) and Western world (including South West meaning Latin America).

[ericos87]

India, Japan, Brazil, Germany push for early UNSC reform
Press Trust of India / New York September 25, 2010, 19:20 IST

India, Japan, Brazil and Germany -- the aspirants for permanent representation in the India, Japan, Brazil-- today pledged support to each others' candidature while agreeing to push ahead for an early expansion of the powerful body.

In a meeting on the sidelines of the UN General Assembly, foreign ministers of the G4 nations jointly pressed for an early movement on the issue of reforms, which they believe is essential to reflect the realities of the present day world.

"The Ministers reiterated the need for urgent reform of the Security Council, which would include expansion of both categories of membership, permanent and non-permanent," a statement released after the meeting said.

Indian ambassador to the UN, Hardeep Singh Puri, said that some substantial movement in these efforts is expected soon, indicating that the reform process could begin as early as in 12 months.

The meeting, also attended by External Affairs Minister S M Krishna, decided to push ahead with the Security Council reform and seek results at the earliest.

"They all want to make sure this happens at the earliest," Puri said.

"The Ministers noted with satisfaction the overwhelming support among member states for expansion of both categories of membership in the Security Council, including developing and developed countries," the statement said.

Puri noted that this meeting between the foreign ministers indicated that the reform agenda would now be discussed between governments, and not just by the countries' diplomats at the UN.

"While reiterating their support for each other's candidatures as aspiring new permanent members, they reconfirmed their view of the importance of Africa to be represented in permanent membership, in an enlarged Council," the statement said.

At the same time, however, Puri pointed out that not all the countries were on the same page when it came to what shape this reform should take.

"There are nuances... But there is complete unanimity in terms of objective," he said.

Meanwhile, India is gearing up to join the Security Council as a non-permanent member after a gap of 19 years and diplomats here are hoping that reform comes in the next two years while India is already on the Council.

Puri told PTI that such a development would put India on a "firmer and long-term" footing.

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[ericos87]

India at centre of global biz, politics
1 NOV, 2010, 07.17AM IST, INDRANI BAGCHI & SHUBHAM MUKHERJEE,TNN

NEW DELHI/MUMBAI: It will be business intersecting with geopolitics over the next few weeks as India gets ready to take its place at the global high table. The global biggies ' visits kick off this Diwali with US President Barack Obama inking commercial deals worth $15 billion. The US President will also discuss big strategy — global balance, currency war, Af-Pak and the rise of China.

Obama will be followed by French president Nicholas Sarkozy. Beleaguered at home, Sarkozy — in India from December 6 — will sign a billion-dollar deal for upgrading Mirage fighter planes. Sarkozy is also scheduled to ink the first commercial agreement for nuclear reactors in India by Areva, the first beneficiary of the Indo-US nuclear deal.

Russian President Dmitry Medvedev will be the next dignitary on India visit. The Russian President will sign a slew of defence deals and reaffirm an old friendship with India.

On December 16, India will play host to its neighbour-rival. Chinese premier Wen Jiabao will come to repair relations with India after a year of rubbing eachother the wrong way. At Hanoi this week, Wen and PM Manmohan Singh decided to walk through difficult issues and at least try and maintain the modicum of decent state-to-state relations.

Incidentally, R-ADAG chairman Anil Ambani last week sealed a $10-billion deal for the supply of power plant equipment with Shanghai Electric, about the same amount as the deal for 126 fighter aircraft that's up for grabs.

Is India already at the global high table? Other powers seem to think so. India continues to be more conservative in its approach, but can hardly prevent itself from feeling a little flattered. Actually, UK's new young PM, D a v i d Cameron, set the ball rolling in July with a visit that put a number of strategic eggs in the Indian basket. So, while the terms of engagement would still be different as each of them have a set of objectives, yet all of them are chasing mutually beneficial opportunities in India.

The visiting heads of states would be eyeing the defence orders that are slated to emanate from India as well as slices of the nuclear trade as definite short term attractions. The longterm attraction is Indian market, which is a trillion-dollar economy, its high growth rate of an estimated 8.5% and projection that India would be catapulted to the top three of the league tables of the largest economies in 20-25 years.

When that happens India would also have a significant clout over global affairs. In short, it would be useful to partner with such a country now which can deliver on two different levels of the value chain — as buyer of their finished products as well as a destination for FDI.

Sample the numbers: India is expected to buy almost $50 billion worth of arms over next couple of years (although you can't compare with Saudi Arabia which put in a contract for $60-billion weapons from US ) India's plans to buy 126 fighter planes for $10.4 billion (Rs 46 ,488 crore ), which forms one of the larger arms deals worldwide, apart from a host of other weapons platforms. The world is impressed by India's performance in the recession years. It grew at 6.7% and 7.4% in 2008-09 and 2009-10 respectively The estimated 300-million middle class with growing spending power.

Economics is not the only thing that is driving these leaders to India. What India also brings to the table is a stable democracy with smooth transition in leadership , which makes the political risk very low. The presence of a large young population makes the market attractive.

According to analysts, India could soon beat China in growth rate. There is also a geopolitical shift of power to India. It started with the invitation to participate in the G8 summit in 2003. By the time the global crisis struck in 2008 , then US President George Bush mobilized G20 and put countries like India at the world's top decisionmaking table. In a world increasingly governed by economics, geopolitical relevance of India can only improve.

"This is historic since we are yet to see so many top global leaders queuing up to visit the country," said a top Indian industrialist, who shares the top platform among industry captains and global leaders but declined to be quoted.

He also said that it shows where India is headed as an economy and its immense potential as a market for both products as well as a destination for foreign direct investment. It's no longer about a head of state coming to sell only the country's defence portfolio, he added, pointing to the fact that the US, Russia and France are some of the biggest arms producers in the world.

It wouldn't be, however, incorrect to paint the economic and bilateral needs of all these countries with the same brush. While France would largely look at defence tie-ups, its emphasis would also be on nuclear cooperation. About 90% of its installed power in France is nuclear energy-based. Similarly, Russia would focus on defence contracts but would also look at collaborations in the oil and gas and telecom sectors.

The US, on the other hand, could look at increased market access for insurance and retail, apart from the lucrative defence contracts. According to industry sources, there is also a lot of interest in defence jointe ventures and the US could seek an increase in the FDI limit from 26% to 49%.

"When President Obama lands in India and senses the excitement and buzz taking place in the world's largest free-market democracy, accompanied by the largest US trade and business delegation in US history, every boardroom in America will sit up and take notice, and ask: 'Why aren't we doing more in India?'

The result will be joint ventures, collaborations, and partnerships between new entrants that have so far not partaken of the Indian opportunity. Technology transfers will accelerate, sharing in innovation will become natural, and countless jobs will be generated for both sides, bolstering relations for decades to come," Rom Somers, president US-India Business Council, said.

China is the only country in the pack which perhaps does not have arms to sell to India but seems favourably inclined towards improving its trade ties with its neighbour. China is now India's largest trade partner.

However, it's also a touchy time for both India and China in terms of bilateral relations with China getting more aggressive about seeking newer territory in India and making the Indian side uncomfortable by building large roads and rail links close to India.

Says Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry (Ficci), "Our relationship with China is an interesting set of contradictions. We export a fourth of what they export to us, which means they are better placed in terms of the balance of trade. However, we have also been cooperating with China at G20 on the issue of currency devaluation and, before that in Copenhagen, on the issue of carbon emissions. With that in the background, China could only gain through increased and better terms of engagement with India".

India is the only balancing factor for China in Asia and is a huge market, Mitra further added.

China has a huge interest in selling its power and telecom equipment in a market like India. In fact, about two thirds of the Indian orders for power equipment are said to have been won by Chinese companies in the last few years. But with political differences and the anti-dumping cases (over 80% of all our anti-dumping cases are against Chinese goods), the talks could take more time to fructify.

Mitra believes that India today is perceived as a member of the top table in global geopolitics and one can, therefore, clearly see the writing on the wall. "That's why these countries are seeking to engage with us and trying to marry our synergies with their core competencies," Mitra said.

Interestingly, the visits of these four heads of state, all members of the United Nations Security Council, follows Prime Minister Manmohan Singh's visit to Japan and South Korea, which is also seen as a move by India to reach out to the other important players in the Asian region to improve trade as well as, perhaps, to counter China's growing power.

India implemented a CEPA (Comprehensive Economic Partnership Agreement) with South Korea before the United States implemented an FTA (Free Trade Agreement ) with that country, and the Japan agreement was just put in place.

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[Cov Boy]

Very interesting articles.

India is gaining a lot of respect due to its economic & political position in the world. With high profile leaders visiting India, finally the world is taking India seriously.

A semi-permanet seat on the UN Security Council has sealed & confirmed India's importance.

[ericos87]

India needs new Look-West policy: Vice President
2010-11-20 18:00:00

New Delhi, Nov 20 (IANS) Vice President Hamid Ansari Saturday called for the adoption of a new Look-West policy aimed at the Gulf and West Asia that can secure the country's economic, strategic and cultural interests in the region, which has a huge non-immigrant population of over six million Indian workers.

'For us in India, a 'Look West' policy towards this part of West Asia would be as relevant for safeguarding and promoting India's interests as its Look-East policy aimed at East Asia that has been in place for some years,' Ansari told a conference.

'The strategic relevance of the sub-region to India has to be located in geographic and economic terms,' Ansari said in his inaugural address at the Indian Council of World Affairs (ICWA) conference on India and GCC Countries, Iran and Iraq: Emerging security perspectives.

Nearly 100 delegates from India and the region are participating in the two-day conference.

The GCC countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Ansari said: 'The focus of Indian interest in the region would remain on the desirability of having friendly governments, regional peace and stability, access to oil and gas resources, freedom of navigation in the Persian Gulf through the Straights of Hormuz, continued market access for Indian trade, technology, investments, security and welfare of the Indian workforce, particularly in times of the distress emenating from disturbed local or regional conditions.'

The vice president also pointed out that the region is within the security parameters of India and the operational radius of the Indian Navy.

'The latter's participation in the anti-piracy operations in the Arabian Sea is a case in point. If needed, it can escort shipping and interdict forces hostile to it,' he said.

Ansari said it is 'evident' that given the geo-political imperatives of the eight littoral states of the Persian Gulf, security perspectives and threat perceptions do not converge.

'The concerned states want to prosper and avail of the benefits of development. The Gulf lands are essential for the world's economic health since they are a principal source of hydrocarbon energy as well as a major market for industrial goods, technology and services. Therefore the peace of these waters must be maintained,' he added.

Ansari, who was ambassador to Iran and Saudi Arabia, cited several of India's trade ties with the Persian Gulf region.

India imports over 63 per cent of its crude oil from these regions. These countries account for 22 per cent of India's total trade. The UAE is one of the top trading partners of India with a total trade of $ 43.5 billion, ahead of China and the US. Saudi Arabia is India's fourth largest trade partner and Iran stands ninth. Indian non-immigrant workforce of nearly six million work in these countries.

'A Gulf regionalism that is outward looking, flexible and dynamic, consistent with regional diversity would contribute to regional and global welfare, peace and security.

'This would also enable these nations to take advantage of the opportunities emerging from enhanced economic integration, as also to face the common threats of terrorism, proliferation of weapons of mass destruction, securing energy exports, security of sea lanes, tackling pandemics, natural disasters and others,' Ansari said.

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[ericos87]

Medvedev joins scramble for India’s business
By James Lamont in New Delhi
Published: December 21 2010 17:35 | Last updated: December 21 2010 17:35

Dmitry Medvedev, Russia’s president, has closed a remarkable chapter in Indian diplomacy during which five of the world’s most powerful leaders have flocked in quick succession to New Delhi seeking new business and closer political alignment.

The leaders of the UK, US, France and China preceded Mr Medvedev’s arrival on Tuesday with strong bids to take advantage of India’s fast-growing economy and give greater recognition to the country’s rising global stature.

Accompanied by some of their largest business delegations, they have struck deals to supply India with energy and military equipment. They have also sought ways to integrate Asia’s third-largest economy more fully into the world economy, and promoted its role in the governance of the global financial system.

Barack Obama, the US president, left India with more than $10bn worth of deals to help create jobs at home; Wen Jiabao, the Chinese premier, this week claimed $16bn worth of new business in a global scramble to do business with one of the world’s fastest-growing economies.

In return, the leaders of the United Nations Permanent Five countries have offered recognition of India’s standing as the world’s largest democracy and pledged their support for India playing a greater role in multilateral institutions, particularly a future seat at the UN Security Council.

Describing Moscow as a “major energy power”, Mr Medvedev on Tuesday stressed Russia’s role as a key energy supplier and an uncompromising stand on terror to single out his visit from the overtures of others. Among 15 agreements, he signed a pact to align India’s oil and gas companies with powerful Russian state-owned energy companies, like Gazprom, and an agreement to supply two nuclear reactors.

Like his peers, Mr Medvedev heavily promoted the complementary nature of his economy to India and pushed for a “modern” engagement across sectors including pharmaceuticals, defence and space technology.

“I believe that trade between us does not nearly reflect our privileged partnership,” Mr Medvedev observed. “India is a comfortable partner especially in energy.”

He and Manmohan Singh, India’s 78-year-old prime minister who enjoys a high international standing as a statesman and a development economist, agreed a target of doubling bilateral trade to $20bn within five years to re-energise deep ties forged in the decades after India's independence.

These now face competition from warming relationships with western powers, and the regional dominance of the Chinese economy.

Mr Obama, in a warmly received address to India’s parliament, described India as “emerged” rather than an emerging power and market.

They have also addressed India’s concerns about security in south Asia, and the threat of extremism from Pakistan and Afghanistan.

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[ericos87]

Global Economic Power List: India enters top 5
Posted: Sat Feb 26 2011, 02:20 hrs
New Delhi

The Indian government is the fifth most powerful in the world in terms of its ability to project the economy in the global sphere, as per a new ranking of 112 governments released as part of the Economic Survey 2010-11.

As per the Index of Government Economic Power (IGEP), India’s economic power has increased substantially in the nine year period. It moved to the fifth spot in 2009 from a ranking of 10 in 2000. According to the IGEP 2009, the US was at the top of the list, followed by China, Japan, Germany, India , Russia, Brazil, France, Italy and the UK.

The index aims to assess a government’s performers on the globe in terms of its ability to raise resources, credit-worthiness and credibility in international financial markets and determine its importance in multilateral fora based on four variables – government revenues, foreign currency reserves, export of goods and services and human capital.

“There are rankings of individuals and nations. But governments are a separate entity from nations and individuals and this index will give an idea of how much say they should have globally,” finance ministry’s chief economic advisor Kaushik Basu and the Survey’s chief author said. The finance ministry will soon publish a detailed paper on the index and its implications.

The Survey has pointed out that India’s has registered ‘one of the most dramatic rises in ranks’ on the index. “Among the large economies, China and India also demonstrate remarkable robustness by not having lower index values in 2009 unlike all the other countries occupying the top 10 positions in 2000,” it said.

The ranking comes at a time when India has managed to shrug off the impact of the global financial crisis and has returned to a high growth trajectory of over 8.5 per cent. The economy is expected to expand at 8.6 per cent in 2010-11 and is likely to touch 9 per cent GDP growth in the next fiscal.

The Survey also noted a strong positive correlation between the growth in economic power as a percentage change in index and the change in GDP across the post crisis period. “This indicates a link between growth in economic power as measured by the index and the ability to recover from the crisis,” it said.

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[ericos87]

Mozambique PM invites Indian investments


BOOSTING COOPERATION: Union Minister for commerce and Industry Anand Sharma (right) with Prime Minister of Mozambique
Aires Bonifacio Baptista Ali at a conclave in New Delhi on Monday. Photo: Ramesh Sharma

Seeking big participation of Indian business houses to boost the economic cooperation and help in resurgence of Africa, Mozambique Prime Minister Aires Bonifacio Baptista Ali on Monday extended an open arm warm invitation to Indian companies to grab the opportunity and make ‘big investments' in Africa.

“Indian multinational companies, small and medium enterprises and individuals are already investing in Africa and the results are very encouraging. Indeed, we would like to reiterate our warm invitation to all Indian business people to make huge investments in Africa and join our efforts geared to boost and diversify our economies, thus contributing to African development,” Mr. Baptista Ali said at the 7{+t}{+h} CII-EXIM Bank conclave on India-Africa Project Partnership.

Mozambique is the partner country at the summit which is a follow-through for the India-Africa summit to be held in May in Ethopia and is likely to be attended by Prime Minister Manmohan Singh. Togo, which has been accorded as the guest country status, is represented by its Prime Minister Gilbert Houngbo.

The Mozambican Prime Minister said the conclave was taking place at a moment characterised by growing instability and upheavals in the Middle East and increasing signs of economic and financial instability worldwide due to increase in oil and food prices. “This represents a challenge and an opportunity for our countries. We need to devise innovative approaches to promote peace, stability, democracy and well-being to our citizens and nations,” he said.

Mr. Baptista Ali said India could tap opportunities arising from regional trade agreements in Africa, as well as preferential trade agreements signed with large Western economies.

He said both Africa and India were important players in the global economy. While Africa was a resurgent economy with large strategic resources, India had the advantage of a vast market and an acknowledged record in innovative technologies. “Africa is strongly committed to promote private sector initiatives and South-South cooperation as key engines of economic growth in order to eradicate poverty and promote development in our countries, India is a key partner in this process,” he said.

T. C. A. Ranganathan, Chairman and Managing Director of Exim Bank of India, said “Ever since this conclave started seven years ago, India-Africa trade has gone up seven-fold.” He pointed out that six of the world's fastest growing countries were from Africa.

Confederation of Indian Industry (CII) President Hari Bhartia said both the regions needed to learn from each other. “Technology and information sharing will play an increasing role in empowering people,” he said.

Keywords: Mozambique-India trade relations

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[ericos87]

India, Africa aim to raise trade to $70 bn
Elizabeth Roche & Asit Ranjan Mishra

India and Africa are aiming to increase bilateral trade from the present $45 billion to $70 billion in the next four years by increasing cooperation in fields such as information technology, agriculture, health and pharmaceuticals.

Looking to shore up its economic profile in the resource-rich continent, India has also extended credit lines worth more than $50 million to Mozambique and Tanzania.

“We have set for ourself a target of $70 billion by 2015 and I am sure that we will be able to achieve it,” commerce and industry minister Anand Sharma said at the two-day India-Africa business conclave, organized by the Confederation of Indian Industry (CII), adding that the potential for bilateral business was “huge”.

In contrast, China’s bilateral trade with Africa crossed the $115 billion mark by November last year, according to a report on the People’s Daily website.

Mozambique’s Prime Minister Aires Bonifacio Ali invited Indian businesses to invest in Africa.

“Indian multinational companies, small and medium enterprises and individuals are already investing in Africa, and the results are encouraging,” Ali said. “Indeed, we would like to reiterate our warm invitation to all Indian business people to make huge investments in Africa and join our efforts geared to boost and diversify our economies, thus contributing to African development.”

Over 650 participants from more than 36 African nations are attending the two-day conclave aimed at showcasing Indian expertise in various fields to African businesses.

According to Sanjay Kirloskar, chairman of CII’s Africa committee, “Africa is going to be the continent of opportunity and fast growth, and it’s important that Indian business collaborate more and more.”

“India and Africa are in a unique situation wherein both can gain with mutual cooperation. Africa can learn from India on attaining food sufficiency, growth of small and medium enterprises and small engineering, infrastructure, skilled manpower etc. Africa is rich in resources and can play an important role in India’s further development needs,” he added.

Indian firms are increasing their investments in areas such as telecommunications, financial services, food processing, manufacturing, infrastructure, back-office services and tourism in Africa, Kirloskar said.

“Natural resource-based investments dominate Indian investors’ portfolios in Africa in value”, but “investment by these companies is beginning to diversify rapidly across many sectors,” he said.

On its part, Africa was looking at forging partnerships in areas such as information technology, agriculture, health and pharmaceuticals, he added.

Indian officials acknowledge that China, which overtook Japan as the second largest economy in the world, has outstripped India in investments and securing oil, gas and mineral assets in Africa.

“The comparison between India and China at some levels is not correct,” said one government official, who did not want to be named. “They have a different system of governance; their investment strategy is government-driven as is their asset-procurement strategy, whether it’s oil, gas or minerals. In India, it’s more private enterprise-driven and the government acts as a facilitator. But India is making its presence felt.”

An African diplomat, who also did not want to be named, agreed India’s ways of doing business were being appreciated in many countries across the continent. “If a company from India comes into Africa, we see one or two Indian managers in the hierarchy, the rest are all Africans. You generate employment, something that cannot be said about China. Chinese companies come with their own workmen,” he said. “But competition is good so we welcome everybody.”

elizabeth.r@livemint.com

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[ericos87]

India, Kazakhstan sign pact on nuclear cooperation
Sandeep Dikshit

Manmohan, Nazarbayev agree on a 3-year Joint Action Plan



A toast to ties: Kazakh President Nursultan Nazarbayev with Prime
Minister Manmohan Singh during their meeting in Astana on Saturday.

ASTANA: In restricted and delegation level talks here that lasted 100 minutes, Prime Minister Manmohan. Singh and Kazakhstan President Nazarbayev by and large concentrated on bilateral issues by “putting flesh on various areas of collaboration,” . Secretary in the Ministry of External Affairs Sanjay Singh said.

With most initiatives having been time consuming so far, Dr. Singh and Kazakhstan President agreed on a three-year Joint Action Plan. It details specific milestones in hydrocarbons, civilian nuclear energy, space, IT & cyber security, high-tech and innovative technology, pharmaceuticals, healthcare, agriculture and cultural exchanges.

A step forward

The two countries moved a step towards more intensive collaboration in nuclear energy with the signing of the Agreement on Cooperation in Peaceful Uses of Nuclear Energy but this is subject to both sides “adhering to their existing obligations under multilateral nuclear regimes.”

They also inked a memorandum in the area of information security and India agreed to set up an Indian-Kazakhstan Centre of Excellence in the Eurasian University in Astana.

Speaking at a luncheon, Dr. Singh noted that Kazakhstan was one of the first Central Asian States with which India established diplomatic ties. He also pointed out that Mr. Nazarbayev's visit in 2009 (when he was Chief Guest at the Republic Day celebrations) launched the strategic partnership and paved the way for “solid and substantive outcomes in sectors where we have complementary strengths.”

The Prime Minister highlighted the pacts on nuclear energy, mutual legal assistance, agriculture, cyber security and healthcare and hoped that diversification would take place in pharmaceuticals, IT, mining, fertilizers and science & technology to broad base bilateral ties.

This biggest and economically most virile Central Asian country has always appreciated Indian culture and Bollywood movies ranging from Raj Kapoor-Dilip Kumar starrers to ones featuring new age actors such as Neha Dhupia and Aishwaria Rai.

The summit meeting follows a two-day Pakistan-Kazakhstan Joint Ministerial Commission in Islamabad which basically focussed on strengthening trade and investment ties.

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[ericos87]

Tanzania, India find ‘South-South' ties in good health
Siddharth Varadarajan


Prime Minister Manmohan Singh presents a
giftto his host, Tanzanian President Jakaya
Kikwete, in Dar es Salaam on Friday.

Dar es Salaam: Indian officials have spent the past week fighting off Western suggestions that they are in a race for influence in Africa with the Chinese. On Friday, their claim that India and China complement one other was endorsed by President Jakaya Kikwete of Tanzania, who gave a concrete and unscripted example of how the specific skill sets the two Asian powers possess has worked to the advantage of his people

Speaking to reporters at a joint press conference with the Indian Prime Minister on Friday, Mr. Kikwete said that Tanzania lacked the capacity to provide a whole range of treatments at home, including heart surgery and care for cancer and renal diseases. A few years ago, his government sent 29 doctors and nurses to India for specialized cardiac training and now they have returned and are performing open-heart surgeries in the country for the first time. The Chinese have pitched in with an offer to help build a 200-bed hospital. “So the Indians have helped to train our people and Chinese have helped to build the hospital where they will work”, Mr. Kikwete said.

Tanzanians spend nearly $80 million every year on medical treatment abroad, including in India; so, when the Apollo Hospitals group from India announced its intention of setting up a specialty hospital here, the Tanzanian government jumped at the chance. The $150 million project will be a joint venture between Apollo, the Tanzanian health ministry and its National Social Security Fund, with the Tanzanians providing the land and building and the Indian side the equipment and doctors. An MoU was signed by Apollo chairman Prathap C. Reddy in the presence of Dr. Manmohan Singh and Mr. Kikwete.

Apollo's plan is to develop their Dar es Salaam hospital as a hub-and-spoke model with smaller clinics in 14 countries across the eastern African region. Though the details of the project have yet to be worked out – including Apollo's social obligations - President Kikwete said there would also be a training component so that Tanzania's long-term health-care capacity gets augmented.

Speaking later at a function to inaugurate the India-Tanzania Centre of Excellence in Information and Communication Technology at the Dar es Salaam Institute of Technology, Dr. Singh spoke about taking this capacity-building to the stratosphere: “I would specially like to announce our readiness to cooperate with Tanzania in the area of space technology and applications,” he said. Though he probably had satellites in mind, India should consider offering to eventually send the first African into space as part of its own manned mission project. Such an offer would fire the imagination of a continent that India regards as an emerging economic – and strategic - pole of the international system.

When Indira Gandhi came to Dar es Salaam in 1974, she gifted Mwalimu Julius Nyerere a peacock and peahen from India. There are today 14 peacock nests around the State House. The last time Dr. Singh came to Tanzania was in the late 1980s, when he was secretary-general of the South Commission, an independent body set up by the Non Aligned Movement with Nyerere as its chairman. Their exertions were, unfortunately, not as productive as that of Mrs. Gandhi's poultry. The collapse of the Soviet Union and the advent of neoliberalism undermined this unique project of the Global South even before it got off the ground. Tanzania abandoned Ujamaa, its system of socialism, and India embraced liberalization.

Twenty years later, however, even under the new economic paradigm the two countries have embraced, the need for South-South cooperation is being felt more than ever before. The only difference now is that the process is being driven as much by private capital as by the State, though often the two are in close partnership. Apollo officials told The Hindu that once their hospital project's details are settled, they may consider approaching the Indian government for access to a part of the $5 billion line of credit which has been set up for Africa. Tanzania is also keen to promote investment in its agricultural sector. Millions of hectares are available for long-term lease and contracts have been signed with European and Saudi firms. But unlike in Ethiopia, these lands are not always vacant. Which is why the Indian High Commission has not encouraged Indian companies to get into farming here.

The city of peace

Wrapped around a natural harbour that is deep enough to allow massive container ships to gently sail at shouting distance from its colonial-era government quarter, Dar es Salaam is an attractive city that has all the charm of a bustling port without the menace and chaos one normally associates with cities like Mumbai and Karachi across the Indian Ocean. Traffic jams are a major problem – the bureau chief of the East African newspaper said he would rather leave for work at 6 am than put up with a three hour commute. Amazingly, however, road discipline appears to be maintained at all times, even when cars are backed up for miles on undivided roads and the oncoming lanes are empty.

The 1990 report of the South Commission noted that because “the South doesn't know the South … we have been compelled to commit our own errors, unable neither to learn from the experience of the others in similar situations nor to benefit from other's positive experiences.” Mr. Kekwete said he looked to India for technology and investment. Manmohan Singh graciously added that as Tanzania developed, he hoped Tanzanian companies might also come and invest in India. However, one thing Tanzania could offer to teach Indians right away is traffic sense.

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[ericos87]

Analysis: India eyes diplomacy and private sector to woo Africa
By Henry Foy and Aaron Maasho
NEW DELHI/ADDIS ABABA | Fri May 27, 2011 8:37am EDT

(Reuters) - Bereft of China's riches, India is banking on diplomacy, development and its entrepreneurial private sector to woo African nations to open markets and natural resources to Asia's third-largest economy


A shopper (R) is attended to at a fashion shop in Johannesburg January 19, 2010.
Credit: Reuters/Siphiwe Sibeko

New Delhi has promised billions of dollars in development support, financing for infrastructure projects and the building of educational and training institutes as it positions itself as the alternative to Beijing.

India enjoys historical ties with some African countries, but became a mere observer when China came calling for resources and energy, with financial riches New Delhi could not match.

China boasts foreign exchange reserves of more than $3 trillion, 10 times India's $307 billion, and has aggressively used state-owned development banks to invest heavily in oil, gas and other resources across the continent.

But after being caught cold by China, and losing a series of bids for oil rights and infrastructure projects to its Asian rival, India is banking on a new approach to Africa that blends trade and investment with development economics.

"India's approach is reciprocal, expecting access to resources in exchange for developing technology and training Africa's human resources. That's how India is different to other foreign powers," said Suresh Kumar, head of the Department of African Studies, University of Delhi.

"In providing education, technology, development and security, India is a complete partner."

Like China, India has posted high economic growth rates since 1990 and the economy in a country of 1.2 billion people is now expanding at more than 8 percent a year. Resources from Africa are seen as crucial to help sustain growth.

Total trade between India and African countries stood at $46 billion last year, still less than half of China's $108 billion in 2008, but a huge increase on $3 billion in 2000-1. India says it will reach $70 billion by 2015.

Beijing also leads the way in diplomatic terms, with 42 embassies across sub-Saharan Africa, double India's diplomatic presence of only 21 embassies, a report from the London-based Chatham House think-tank said.

MAKING UP FOR LOST TIME

Indian is keen to trumpet its cultural links with African countries, citing a shared history of imperialism and trade routes established hundreds of years ago.

The Indian diaspora in Africa tops 2 million people, but it is mainly concentrated in South Africa, the Indian Ocean and some countries along the Eastern seaboard such as Kenya.

"The private sector is pushing the Indian government to engage on Africa more consistently and to expand its network," said Alex Vines, head of Chatham House's Africa Program.

Prime Minister Manmohan Singh, on a six-day trip to Ethiopia and Tanzania this week, pledged $5 billion over three years in development support, $700 million for new institutions and training programs and $300 million for an Ethiopia-Djibouti railway line.

"India can be blamed for waking up late to the African opportunity, but can make up for lost time by projecting itself as a more humane investor than its northern neighbor," wrote India's Hindustan Times newspaper in an editorial.

While India, and other emerging economies, see Africa as an important supplier and customer to drive growth, it is a sign of New Delhi's growing global economic and political clout, that it is seeking to play a leading role in Africa's development.

"Africa is determined to partner in India's economic resurgence as India is committed to be a close partner in Africa's renaissance," said the declaration after the second Africa-India summit in Ethiopia this week.

India's state-run oil firms are beginning to invest in countries including Nigeria and Kenya, coal and diamond firms have invested across the continent, and new embassies in Niger and Malawi have been opened to assist firms with securing uranium for India's fast-growing nuclear power industry.

PRIVATE SECTOR PUSH

India is also keen to leverage its global expertise in the information technology, agriculture and human resource sectors in helping African countries, many of which face similar developmental hurdles that India itself is grappling with.

While China has snapped up resources through governmental agreements, India's government wants the private sector to spearhead the push to secure investments across the continent.

"India's engagement with Africa is completely different with that of China. With China its state-to-state, even if the investors are private companies," said Zemedeneh Negatu, Ernst & Young's Managing Partner for Ethiopia.

Indian telecoms firm Bharti Airtel spent $9 billion acquiring Zain's African assets last year, with a view to implementing strategies in Africa that were developed in the world's fastest-growing mobile market.

Largely thanks to the Bharti deal, India was the most acquisitive nation in Africa in 2010.

With African consumer spending set to nearly double to $1.4 trillion by 2020, according to McKinsey and Co., Indian consumer goods makers are also pushing hard across the continent.

Godrej Consumer has bought personal care products makers in Nigeria and South Africa, while Dabur India, Marico and Emami

have also bought assets.

"India's engagement with Africa in the economic sense will be driven by the private sector," said H.H. Viswanathan of the New Delhi-based Observer Research Foundation.

"The majority of the top 10 Indian companies in Africa are private firms, not state-run like the Chinese firms."

Development assistance aside, as the Indian private sector expands in Africa, the continent is also destined to benefit from job creation as companies seek lower production costs.

"Labour costs have become more and more expensive in China and India. Chinese and Indian companies are starting look at destinations where they can do their things cost-competitively," said Ernst & Young's Zemedeneh.

"That's where Africa benefits."

(Editing by David Clarke)

Source

[ericos87]

India forges new bonding with Libya
Saubhadra Chatterji / New Delhi May 30, 2011, 0:41 IST

During Prime Minister Manmohan Singh’s African safari, India forged a new bonding with war-torn Libya — much of it away from the limelight — while exploring new investment opportunities and strengthening ties with other African nations.

So overwhelmed was Libyan Foreign Minister Abdal al Latti al Obedi, that he reportedly told External Affairs Minister S M Krishna, “Our brothers (friendly Arab and African countries) didn’t help as much as you did for us!”

New Delhi officially endorsed the African Union’s (AU’s) stand of calling for an immediate ceasefire and a political solution through peaceful means and dialogue for peace in Libya, a country that has annual bilateral trade of $844.62 million with India.
But behind the scene, there were more efforts during the African Union (AU)-India Summit to stand beside Libya in its hour of crisis.

Top official sources told Business Standard that New Delhi had to intervene to even secure hotel bookings for the Libyan delegation in Addis Ababa, the seat of AU. “Initially many hotels were scared to host the Libyan leaders. We finally managed to get them rooms in Hilton Hotel,” said an official.

Hilton had hosted the Indian delegation except the Prime Minister and his top officials. Team PM stayed at Hotel Sheraton.

Facing uncertainty, the Libyans initially were hesitant to send a minister-led delegation to Addis Ababa for the AU-India summit. But New Delhi, through its diplomatic channels, convinced Tripoli to send a high-level delegation and assured it of diplomatic support.

“When we contacted other friendly African nations to know about the Libyan delegation, most of them were clueless about their plans. So, we had to step up our diplomatic efforts,” said a senior official. After deciding to come with their foreign minister to Addis Ababa, the Libyans also sought a last-minute appointment with Manmohan Singh for a bilateral meet. New Delhi, however, politely expressed its inability to arrange a slot, as the PM was preoccupied with other bilateral meetings. But a meeting with Foreign Minister S M Krishna was arranged on the sidelines of the Afro-India Summit.

During the meeting, Krishna expressed “regret” over the NATO airstrikes and supported the call for an immediate ceasefire in Libya. He also urged for stopping violence and attacks on civilians, an Indian official said later. After the India-AU Summit, Singh said, “We have discussed the Libya situation at length at the summit, and we fully support the AU position.”

Indian companies, especially in sectors like hydrocarbon, power, construction and information technology have several ongoing projects in Libya.

“We are also concerned about the 18,000 people of Indian origin who were working there,” said another official.

While India’s oil import from Libya is just one million tonnes out of the annual import of 160 million tonnes, many Indian workers are engaged in Libya in construction and petroleum sector jobs.

Source

[zoxtannin]

We already have a thread for Look East and its highly recommended at you post related topics in one thread which is easy to follow.

I suggest you rename this thread for Africa and Middle East so that there can be more clarity.

[murlee]

Israel, India look to hi-tech as trade ties expand

Israeli and Indian industry associations signed a memorandum of understating on Wednesday aimed at spurring cross-border innovation and entrepreneurship, as the two countries add high technology to their growing network of trade and economic cooperation.

While bilateral trade has grown exponentially, the agreement between the Confederation of Indian Industry (CII), the country’s biggest trade association, and the Israel High Tech Industries Association, is unusual in that it focuses on technology. The Indian state of Andhra Pradesh, home to the up-and-coming software center of Hyderbad, is close to signing a pact with Israel’s Matimop, a government agency that facilitates multinational research and development ventures.

High tech is important to both countries, but their industries are very different. India is focused on software services -- writing code and operating systems for other companies. The National Association of Software & Services Cos (NASSCOM) forecasts will post exports of as much as $70 billion in the year to March 2012. The Israeli industry is much smaller but more diverse, and focuses on developing cutting-edge software, telecommunications and medicine. Exports in 2010 were about $29 billion.

Industry executives see potential to marry Israel’s innovative prowess with India’s huge and talented pool of human resources.

“There’s a complementary software story. Indian firms are entirely process orientated and Israel firms are much more about product,” Naushad Forbes, director of India’s Forbes Marshall and chairman of CII’s Innovation Council, told The Media Line. “If we put those two together, we can be unbeatable worldwide.”

Israel is trying to manage the shifting balance of world economic power. Countries like China and India post faster growth and present more intriguing markets than the older and slower economies of Europe and the US, which have been the biggest markets for Israel’s export-heavy economy. Closer trade and business ties also strengthens Israel’s political standing in the global community.

Starting at $200 million annually when diplomatic relations were established in 1992, trade between Israel and India ballooned to $4.7 billion mark last year when India vaulted into second place among Israel’s export markets. This does not include defense sales which are reportedly over $1 billion annually. In the first quarter of this year the level of trade plummeted to just $336 million, the Israel Export Institute reported on Wednesday, but industry figures and government officials are hopeful that growth will resume.

The two countries are negotiating a free-trade-area agreement (FTA) that will remove barriers to trade. In addition to the agreement with Andhra Pradesh, Israel is negotiating bilateral accords with two other Indian states. In March, Israel’s Finance and Industry Ministries allocated 100 million shekels ($29 million) to promote trade with China and India.

Much of the trade until now has been focused on defense, where increased arms spending has created a natural market for Israel military technology like unmanned pilotless vehicles (UPVs) and early airborne radar systems. These ties will likely deepen because of an Indian requirement that local components account for 30% of any contract, said Forbes. That will require Israeli companies to outsource or set up manufacturing in India.

Ties between Israeli and Indian technology companies are just starting, but they will likely involve more than sales. Companies will benefit mostly from combining Israeli innovation with India’s vast low-cost manpower.

“Israeli companies are already operating in India. We can learn from each other. There is a tremendous opportunity for collaboration and joint ventures,” Shri Sachin Pilot, the Indian minister of state for communications and information technology, said in Jerusalem.

Andhra Pradesh is already a high tech powerhouse, with software exports last year of $8 billion, equal to half the state’s total. But Ajay Misra, principal secretary to the state’s Information Technology and Communication Department, said India had ambitions to expand out of software into computer and telecommunications hardware. Israeli innovation could help, he said.

“That’s our next step,” he told The Media Line. “We’ve achieved a lot in the software and service sector, but in hardware we haven’t done anything on a big scale.”

In a taste of the kind of tie-ups that may be on the way, last Bangalore-based Tejas Networks, India's largest domestic telecom manufacturing company, is planning to acquire Ethos Networks, an Israel-based high-technology company specializing in carrier Ethernet and network-management products. Tejas now uses the Ethos team as an Israeli R&D center.

Steven Katz, a principal at the Israeli high technology investor, Vertex Venture Capital, said Israeli companies could also benefit from closer ties with India. But, he cautioned, managers will have to be careful about when and how they do it. It is critical that the most innovative parts of any new technology, where Israel’s comparative advantage lies, be developed at home.

“Once you [the company] get to a certain size and you need to build a new software module and you need 20 engineers, that’s when you can perform the development there,” Katz told The Media Line. “But the creativity and ingenuity should stay in Israel.”

http://www.jpost.com/MiddleEast/Article.aspx?id=223356

[rockystone]

India-Africa bilateral trade likely to double by 2015: Ficci

http://economictimes.indiatimes.com/...w/10329589.cms

Bilateral trade between India and Africa was likely to double from the current USD 53 billion in the next five years, the Federation of Indian Chambers of Commerce and Industry (Ficci) said on Wednesday.

"Bilateral trade has more than doubled from USD 25 billion in 2006-07 to USD 53.3 billion in 2010-11. We expect faster growth and double the current figure in the next five years," Ficci secretary-general Rajiv Kumar said at the two- day 'India-Africa Business Partnership Summit' that began here today.

Kumar said growth would be primarily from the transport, equipment, services, healthcare and agriculture sectors.

Over 120 African and 250 Indian delegates, comprising heads of public-sector undertakings, corporate houses, government representatives and consultants are expected to participate in the summit.

Meanwhile, Tanzania Minister for Information, Communication and Technology Makame Mnyaa Mbarawa said his country had the most politically stable government in the sub-Saharan region, making itself the most important target destination for investments.

He said that India, with its investment of USD 1.27 billion between 1991 and 2008, is the largest global investor in his country.

Reliance Industries, Bank of Baroda, Tata Africa Holding, Bharti Airtel, and many other companies are already engaged in business activity in Tanzania, he disclosed.

TCA Ranganathan, chairman and managing director of Exim Bank, said the bank was helping in setting up food processing, textiles, diamond and IT clusters in African countries.

According to Ranganathan, IT and diamond clusters would be coming up at Botswana and Ghana respectively.

Andhra Pradesh Chief Minister N Kiran Kumar Reddy, who inaugurated the conference, said the industry should view Africa as an alternative trade destination to Europe and United States.

He said the State Government has been offering several incentives to the industry and special incentives to those with investment of about Rs 250 crore, besides offering power at cheaper rates as part of the industrial policy.

[murlee]

India-France Joint Statement on Progress in “India-France: Partnership for the Future”

Joint Statement by Foreign Ministers of India and France on Progress in “India-France: Partnership for the Future”

The External Affairs Minister of the Republic of India, Shri S.M. Krishna and the Senior Minister for Foreign and European Affairs of the French Republic Mr. Alain Juppé met in New Delhi on 20 October 2011 and reviewed the progress on the implementation of the Joint Declaration on bilateral, regional and international issues of common interest and importance “India-France: Partnership for the Future” adopted by Prime Minister Manmohan Singh and President Nicolas Sarkozy on December 6, 2010.

Reaffirming that the India-France Strategic Partnership has been steadily strengthening and widening in scope, they agreed on a roadmap for its further development.

Bilateral

Trade and Economic Cooperation

The two Ministers recalled the target set in December 2010 of increasing bilateral trade to 12 billion by 2012 and reiterated their commitment to achieving it. They also welcomed the increase in foreign direct investment flows in both directions and agreed to address the genuine concerns of investors.

India and France have identified energy efficiency, renewable energy, preservation of biodiversity, urban services and infrastructure as promising fields of cooperation. To that end, Agence Française de Développement financing could be of relevance.

Space co-operation


Minister Krishna and Minister Juppé welcomed the successful launch of Megha-Tropiques satellite, a joint contribution to the global scientific community engaged in research on climate and weather systems. The forthcoming launch of SARAL, a joint satellite to study sea surface altitude would be another milestone in space cooperation. India and France encouraged Indian Space Research Organisation (ISRO) and the French National Space Agency (CNES) to pursue further cooperation in Earth System Science and Climate within the framework of the MoU signed in December 2010 and to explore new fields of cooperation in the future.

Defence Cooperation

India and France reaffirmed their continued interest in enhancing bilateral cooperation in Defence. They welcomed the success of the first joint exercise between the two Armies (Shakti, ongoing in October 2011), as also the exercises between their Navies (Varuna in January 2011) and Air Forces (Garuda in 2010).

The two countries welcomed the finalisation of the project for modernisation of Indian Air Force’s Mirage 2000 aircraft and noted ongoing efforts to finalise joint defence research and development programmes, namely the SRSAM and Kaveri programmes. They reiterated their desire to cooperate in other high technology programmes and projects in the defence sector in the future.

Both countries reaffirmed their interest in intensifying their cooperation in combating piracy in the Gulf of Aden off the coast of Somalia and other areas.

Civil Nuclear Cooperation

India and France agreed to an early entry into force of the agreement on intellectual property rights on the development of the peaceful uses of nuclear energy. They recognized the importance of the highest levels of safety for nuclear power plants. They agreed to strengthen the cooperation between the Atomic Energy Regulatory Board of India and the Autorité de Sureté Nucléaire of France, and their technical support organizations. They welcomed the progress in the discussions between AREVA and NPCIL, aiming at finalizing the contract on the construction of two EPR reactors at Jaitapur and look forward to its early implementation. Following India’s enactment of civil nuclear liability legislation, both countries stand ready to further exchange views on this issue so as to ensure the appropriate framework for the sound development of their cooperation. They look forward to the conclusion of an agreement between ALSTOM, NPCIL and BHEL for supplying the Indian nuclear power program with the most recent technology for manufacturing turbo-generators

Education, Science & Technology

The two Ministers agreed that both Governments will work together to encourage an increase in the flow of students and researchers in both directions. India and France will increase the number and academic level of exchange students. They share a long term ambition for bilateral cooperation at the Indian Institute of Technology (IIT) in Rajasthan. France will finance scholarships for Indian students at the PhD level, depute professors to IIT Rajasthan and substantially contribute to the establishment of Joint Centres of Excellence/ research laboratories in the next five years. India welcomes this bilateral cooperation project in the higher education sector.

Culture

The two Ministers applauded the success of the cultural festivals Bonjour India and Namaste France. They committed to bolstering exchanges in the fields of culture and heritage. They took note of the success of the International seminar on “Traditions of cultural liberalism in India & France” organized in Paris in June 2011. They welcomed the future opening of an Indian cultural centre in Paris and looked forward to the upcoming Tagore exhibition in Paris.

Migration and consular issues

India and France welcomed the recent negotiations for a Human Resource Mobility Partnership Agreement where progress was made on the essential aspects. They underlined the positive impact that this agreement will have on a global approach to comprehensive migration, based on the intensification of business opportunities, exchanges of students, researchers and young professionals and better tackling of irregular migration. They agreed to continue this discussion and resolved to conclude the Agreement as early as possible. They also agreed to reinforce the dialogue on consular issues.

Regional and global challenges

Afghanistan

India and France reaffirmed their solidarity with Afghanistan. They welcomed the will of the international community to remain committed after the 2014 transition, through bilateral and multilateral fora. Looking ahead to the Istanbul Conference of November 2, they welcomed the commitment of the region to work for a stable, peaceful, democratic and independent Afghanistan, achieved through an Afghan-led and Afghan-owned process. They called for the continued engagement of the international community and increased cooperation in the region to work towards a terror-free Afghanistan. This would be in the interest of Afghanistan, the region and the international community at large.

Libya

The two countries support the efforts of the National Transition Council representing the Libyan people as a whole, to establish democratic institutions in a free Libya, to promote human rights, and to rebuild their country after the sufferings they have endured.

Middle East

Minister Krishna and Minister Juppé exchanged views on issues related to the Middle East including the peace process and the situation in Syria and agreed to continue the dialogue at all levels.

EU

Minister Krishna and Minister Juppé reiterated their willingness to participate in the strengthening of the relationship between the European Union and India. They called for a successful India-EU summit in February 2012. They agreed that India and the EU should continue to work for the early conclusion of the negotiations for a mutually beneficial and balanced Broad-based Trade and Investment Agreement (BTIA), which will lead to substantial increase in bilateral trade and investment flows

Terrorism

India and France have endeavoured to jointly fight international terrorism, a common threat. They reiterated their view that terrorism cannot be justified on any grounds or attributed to any root causes. They noted that the bilateral Joint Working Group on Counterterrorism had met in Paris in June 2011. The two sides agreed to further expand information exchange and enhance counterterrorism cooperation in areas of mutual concern. They resolved to continue their efforts for early adoption of the Comprehensive Convention on International Terrorism at the UN.

G20

The two Ministers reaffirmed the role of the G20 as the premier forum for international economic cooperation. India fully supports the priorities put on the G20 agenda by the French presidency. India and France reiterated their commitment to working together in the G20, especially on global issues notably, addressing the Financial crisis, development including infrastructure and food security, social dimension, fight against corruption, innovative financing, commodity price volatility, reform of the international financial institutions and financial regulatory reforms. They are committed to make the G20 Summit in Cannes a success, and support the adoption of an ambitious action plan for growth.

UN Reform

France reaffirmed its support for India’s accession as a permanent member of an enlarged UN Security Council. India and France are committed to reinforce their consultations at the UN on issues pertaining to international peace and stability.

Non proliferation

The two countries will intensify their cooperation on non-proliferation challenges, and will continue to work towards India’s full membership to the four export control regimes.

Climate Change

The two Ministers stressed their resolve to address the challenges posed by Climate Change, firmly based on the principles and provisions of the UN Framework Convention on Climate Change (UNFCCC), in particular the principle of Equity and Common but Differentiated Responsibilities. They reaffirmed their commitment to work together for an equitable, balanced and comprehensive outcome to the upcoming 17th Conference of Parties at Durban, South Africa.

http://www.isria.com/pages/20_October_2011_146.php

[azzi282]

EU, India speed up work on free trade pact

The European Union and India will work "full steam ahead" in talks due to start next week on clinching an ambitious free trade pact ahead of a February deadline, the EU said.
India has been in discussions with the EU, its biggest trading partner, since June 2007 to liberalise trade in goods, services and investment through a free trade agreement.
"The EU and India are working full steam ahead to find solutions which are acceptable to both sides," EU trade spokesman JohnClancy said in a statement on Saturday.
Frustrated by delays in reaching an agreement, European governments threatened in September to break off talks with India on the free-trade deal and set a February 12 deadline to conclude a pact.
Thirteen rounds of talks have already taken place. More work is needed on issues such as tariffs, services and procurement policy, the EU said.
The EU statement said negotiations would begin from Monday and last until December 5. The talks are being held in Brussels, an EU spokeswoman said.
"Intense negotiations will continue over the coming months to effectively solve the remaining core issues between now and the EU-India summit, which is scheduled for February 10" in New Delhi, Clancy said.
Earlier in the week India's Commerce Minister Anand Sharma expressed satisfaction with the progress of negotiations.
But Sharma's comments came at the same time as a top German government official expressed concern in Berlin over the "painfully slow" progress of talks.
Germany's head of the Foreign Trade Division, Berend Diekmann, said the EU bloc and India were "far away" from reaching an agreement on a deal and that there was no way a treaty could be signed before the India-EU summit.
"India and the EU are far away from each other as far as the negotiations are concerned," Diekmann was quoted by the Press Trust of India as saying.
The two sides originally hoped to conclude a wide-ranging deal by 2010 that could increase bilateral trade to $US237 billion annually by 2015 from about $US92 billion currently.
India and the EU have been at odds over intellectual property rights involving life-saving generic HIV/AIDS drugs and other medicines which are produced by Indian companies.
UNAIDS, the Joint United Nations Program on HIV and AIDS, has expressed fears that EU proposals for the agreement could make generic HIV drugs unaffordable - something New Delhi has pledged to resist.
High tariffs on cars, chemicals, machinery products, agriculture and wines and spirits in India are the other issues which need to be resolved.
"There are some important issues outstanding, and only an ambitious agreement will bring significant benefits," Clancy said.
The free trade pact would involve slashing of duties on more than 90 per cent of the trade and opening up of mutual markets for services and investment.
India has already implemented free trade agreements with countries such as Japan, Malaysia and South Korea.

http://news.ninemsn.com.au/article.aspx?id=8376643

[murlee]

Taking ties with Israel forward

On November 29, 1947, the UN General Assembly passed a Partition Plan, with a two-third majority, dividing the British Mandate of Palestine into two States — Jewish and Muslim. The Resolution was accepted by the Jewish leadership, and rejected by the Arabs. A newly independent India, torn apart by the massacres that followed its communal partition, predictably voted against the partition of Palestine on communal lines. Just over two years later, responding to international realities, India recognised Israel.

But the seeds of partition of Palestine were sown half a century earlier, when the First Zionist Congress, held in Switzerland in 1897, called for the establishment of Jewish sovereignty in the “Land of the Pure,” or Palestine. Arab intellectuals responded two decades later, demanding independence from the Ottoman Empire of all Arab Provinces, including Palestine. Refusing to recognise the State of Israel, invading Arab forces were humiliatingly defeated in wars with the Jewish State in 1948, 1967 and 1973. The Egyptians made peace with Israel in 1979, and have since maintained a normal, but sometimes uneasy relationship with it. Jordan soon followed suit.

ARAB-ISRAELI TENSIONS

Ever since then, a number of Arab countries commenced overt or covert ties with the Jewish State. Some, like Kuwait and Oman, shut their doors to the free entry of Palestinians. Moreover, Arab-Israeli differences now lie largely subsumed in Shia-Sunni tensions within countries like Iraq and Bahrain. Historical Arab-Persian rivalries between Shia-dominated Iran on the one hand, and its Sunni Gulf Arab neighbours led by Saudi Arabia on the other, also tend to dominate Arab attention today, even more than the Palestinian issue.

An Israeli delegation led by Yitzhak Rabin, and Palestinian leaders led by Yasser Arafat, strove in 1993 to find a peaceful solution to their differences, through what became known as the Oslo peace process. A crucial milestone in this process was Arafat's letter of recognition of Israel's right to exist. Since then, the “Mid-East Quartet”, comprising the US, EU, Russia and the UN, has taken centrestage in promoting direct talks between Israel and the Palestinians. Neither India nor China or any other Asian or Middle Eastern country has a role in this effort.

Driven by its domestic political compulsions, the dynamics of Cold War politics and by its role in the Non-Aligned Movement, India hesitated in moving towards establishing diplomatic ties with Israel, even though ties at covert levels continued, with Israel providing India with urgently needed military supplies, during and after the 1965 India-Pakistan conflict. But, with the end of the Cold war and the Arabs and Israelis themselves talking directly to each other, India moved, albeit belatedly, to establish diplomatic ties with Israel, in 1992.

SECURITY-LED TIES

What has emerged since then has been a burgeoning security relationship between the two countries. For Israel, this relationship has attained greater importance after Turkey turned hostile to it, in recent years. Israel, however, has normal and friendly relations with China, Japan and a number of East Asian countries. It also has friendly ties with India's neighbours like Sri Lanka, Nepal and Myanmar.

The India-Israel relationship has quietly, but most importantly, been security- driven. While many aspects of the relationship, particularly in the spheres of defence, aero-space and counter-insurgency have been kept under wraps, they are now coming into public focus in studies by Indian and Israeli scholars. During the past decade, Israel has emerged as the second largest supplier of sophisticated weapons systems to India. Former President Dr A. P. J. Abdul Kalam played a crucial role in promoting this effort, after his visit to Israel in 1996, as Scientific Adviser to the Defence Minister.

This has now led to vastly expanding collaboration in areas like crucial air defence systems and missiles, upgrading of aging equipment from the Soviet period, including tanks and fighter aircraft, and cooperation in areas of research and development, in highly-advanced night vision devices, sensors and Unmanned Aerial Vehicles, which have a crucial role in dealing with cross-border terrorism. Sadly, our former Ambassador to Israel Raminder Singh Jassal, who played a key role in shaping the strategic direction of relations with Israel, died recently in Turkey.

As India seeks industrial development in areas of high technology and the involvement of its private sector in areas like defence and aerospace, Israel has emerged as an important partner.

The Tatas have become the first Indian corporate house to seek manufacturing and R&D facilities through collaboration with Israel, in areas like radars, electronic warfare and homeland security systems. Cooperation in aerospace with Israel commenced with the agreement reached in 2003, that India would launch a satellite developed by the Tel Aviv University.

RANGE OF TRANSFERS

The Israeli satellite “Polaris” was launched by ISRO in 2008. Shortly thereafter, India launched an Israeli-made imaging satellite RISAT 2. India has also leveraged its ties with Israel to secure Congressional understanding in the US on several critical issues.

While American concerns on the rise of China have helped India obtain exclusive access to advanced early warning systems like the Israeli ‘PHALCON', there are areas of concern where Israeli transfers to China are finding their way to Pakistan — for fighter aircraft like the Chinese J10, which was designed and developed by Israel.

Under pressure from its Communist allies, Dr Manmohan Singh's UPA (1) Government avoided visits by Cabinet Ministers to Israel. The CPI (M)'s apprehensions were strange, given the fact that two of its top leaders, Mr Jyoti Basu and Mr Somnath Chatterjee, had paid an extended visit to Israel in 2000, and sought Israeli cooperation in agriculture and industry. It has been fairly common for Chief Ministers of Indian States, ranging from Maharashtra and Himachal Pradesh to Haryana and Punjab, to visit Israel for collaboration projects in agriculture, horticulture, water management and sprinkler systems.

In a welcome change to what was a strange policy, driven by the “compulsions of coalition politics,” the External Affairs Minister Mr S. M. Krishna is now scheduled to visit Israel on January 9.

This doesn't signal a change in India's principled position that Israel should avoid building settlements in territories occupied by it and work for a solution that leads to the emergence of a viable Palestinian State, while guaranteeing the security of all States in the region. Arab States tend to take India for granted, by routinely supporting gratuitous anti-Indian Resolutions on Jammu and Kashmir, in the Organisation of Islamic Cooperation (OIC). They should be left in doubt that friendship is a two-way street.

http://www.thehindubusinessline.com/...?homepage=true

[sixsigma1978]

I'm all for an all-out Indo-Israel strategic partnership.
Funny how the West Bengal Commies are opposing it - even more ridiculous when they suggested India ditches US for a strategic pact with China. I seriously think The Communists in India were created to reduce India to shambles.
Their economic policies turned West Bengal into an Industrial Wasteland - then they tried to Internationally isolate India with their ridiculous pander to china policies during UPA-1. And now they're dictating terms against a natural Ally.