European Union, foreign policy, Great Power Dynamics, India, international affairs

India: Too strategic to fail

Co-authored with Akshay Mathur

Since the second wave of COVID-19 engulfed India, there has been an outpouring of support from nations around the world. Help came from all directions. Rich nations including the US, UK, Germany, and Australia; developing and emerging markets like Mexico, Indonesia, and Bangladesh; and even smaller nations like Mauritius, Kuwait and Bahrain have rushed emergency supplies to India. Partner countries have responded to India’s humanitarian need with whatever they could muster, from oxygen concentrators and liquid oxygen to Remdesivir.

An embattled India sought help and gratefully accepted what it got. This assistance came with a sense of camaraderie—with confidence, eagerness, and without prejudice. The tone and tenor of aid being offered is markedly different from ‘north to south’, ‘rich to poor’, ‘developed to developing’, or ‘conditions-based’ grants of the past. It is also qualitatively different from the all-round aid India received in the 1960s or 1970s. This time, India was short of only essentially two commodities—oxygen and specific medicines like Remdesivir. As such, its requests were focused and purposeful.

India’s strategic position in international relations

Why did the world respond so expeditiously? One reason is India’s emerging salience in global affairs. India today is a strategic partner to many nations. It is a dependable stakeholder in the Indo-Pacific, a dynamic market-based emerging economy with a direct bearing on geoeconomics, and a core member of the club of democracies. How India responds and recovers will be a test for emerging arrangements on economic interdependence, regional security, artificial intelligence, reforming multilateralism, and trade negotiations. India, despite its low per capita income is too strategic to fail—or even to be put out of action for too long.

As Australia sent support, it spoke of India as a key partner in the Quad in vaccine production. The Australian government emphasised the criticality of helping India recover quickly, for its production capacity is important for the world to fight COVID. The United States’ move to waive IP protection for COVID-19 vaccines, its willingness to negotiate at the WTO, and its delivery of raw materials required for India to make millions of vaccine doses showed that shoring up India’s domestic manufacturing capacity is a key motivation for external assistance. A similar perspective came from the India-EU Summit. It highlighted cooperation on “resilient medical supply chains, vaccines, and the Active Pharmaceutical Ingredients (APIs)” as central to the joint fight against COVID.

India’s significance in global politics cannot be gauged from data alone. It is still a developing country by any economic measure. Yet, when seen as a member of the G20, a founding member of the Quad, an invitee to the G7, a member of the alliance of 10 ‘like-minded’ democracies (D10), a member of the Global Partnership on Artificial Intelligence, the chair of BRICS in 2021, an elected member of the United Nations Security Council for 2021-22—India’s aggregate strategic, geopolitical, and geoeconomic weight and influence matters.

There is also recognition and gratitude for the 66.3 million vaccines India shipped as bilateral aid, contracts, and through the WHO-led COVAX to other nations, before the second wave hit India. True, this approach is being questioned by some today. But if we step away from the polemics of the moment, it is important to recognise this as a sign of India’s commitment to good global citizenship. This will offer little solace for those who have lost loved ones or are currently suffering because of the devastating second wave; there are understandable questions about the way in which the second wave has been handled, and illustrations of where the state (and society) could have done better. Even so, that does not mean we start interrogating the very basis of global citizenship and solidarity—the same sense of unity that has come to India’s assistance today. Without friends abroad, our situation would surely be worse.

The speed and scale of global support could very well be attributed to India’s active and effective foreign engagements. It demonstrates how Indian diplomacy punches above its weight on the international stage and can mobilise help when needed. India today is understood more comprehensively around the world. Its actions and policy positions on global affairs are more pronounced and appreciated.

To be sure, India is not the only nation to which aid is being provided. The total assistance to India by the US is worth nearly US $100 million, of more than a billion dollars in contributions made so far including to GAVI. But support to India is one of the largest. Similarly, the EU has pledged €2.47 billion for supporting vaccines to developing and low-income nations. Global civil society has raised its voice in support of India in unison. The fact that even progressive critics of India in the US polity have rallied to India’s cause—and discovered common ground with it on issues of vaccine IP and access—is an acknowledgment of the uniqueness of the pandemic moment, the goodwill for India in its entirety, and the contribution of India to global causes.

A developing side story in this journey of Indian diplomacy has been paradiplomacy. Take, for instance, the role of business chambers. The Federation of Indian Chambers of Commerce & Industry (FICCI) is working with its German counterpart, Bundesverband mittelständische Wirtschaft (BVMW)—an association of the German Mittelstand—on oxygen concentrators. The US industry-led Global Task Force is working with the US-India Business Council and the US-India Strategic Partnership Forum on ventilators and concentrators. Danish companies such as Maersk have directly supported India with oxygen concentrators and medicines.

Similarly, California sent oxygen generation units and the German state of Baden-Wuttermberg sent oxygen equipment to Maharashtra, with which it has sister-city agreements. This demonstrates that paradiplomacy by subnational governments in India has come of age. Japan specifically directed its aid to India’s Northeast, aligning COVID support with existing regional interests. Bhutan sent oxygen to India through neighbouring Assam. Gujarat, Kerala, Karnataka, and Andhra Pradesh, among others, have all put global economic and diaspora networks to use. Indian businesses, professionals, and students remain the best roving ambassadors for their mother country and, in some cases, their home states. The Indian diaspora in Qatar for instance, has sent direct support. Indian business corporations have stepped in and sourced key equipment from foreign countries where they have operations. For the first time, perhaps, India’s aggregate calling abroad is larger than the piecemeal efforts that have been deployed by it in the past.

The way forward: Continuing with good global citizenship

All this is comforting for an India in whose wellbeing nations around the world are invested. What we need now is for India to fulfil the goals it must embrace. The pharmacy of the world has to live up to its promise as a vaccine source for not just itself, but also its neighbours and the Global South. Without India being vaccinated and without Indian vaccine capacity being widely available, the world will not be able to defeat COVID-19. As many have repeated over the past year, “No one is safe until everyone is.”

The international community has done what it can for India. It is time for us to return the favour—jab-by-jab. For that we need to heal as a country, build capacity to cater to each Indian, and plan for the needs of many outside who count on us. Even if the natural impulse is to look inwards and only provide for one’s own, the way forward is continuing with good global citizenship, not curtailing it. The Prime Minister has often spoken of the potential of India’s scale, speed, and size. In the coming six months, one-sixth of humanity has to put these attributes to use. There is no scope for failure and the outcomes will be scrutinised by many.

As the Health Ministry prepares its plan to vaccinate the entire adult population by December, this is the also the time to plan how much we can deliver to the world. The numbers, in terms of vaccine doses being produced, need to be rethought to take into account the imperative of assisting those countries who require India’s manufacturing capabilities to safeguard them from the devastating impact of the pandemic. Research indicates that COVID-19 is likely to become a seasonal phenomenon like the common flu, in which case, India must invest in the production of booster shots that may be administered regularly. As the treacherous virus mutates, experts are of the opinion that it might potentially mutate into a form that evades existing vaccine immunity. To prepare for such a scenario should it arise, research and development efforts should also be directed towards responding to potentially more lethal variants. As we race towards the immunisation of the world against the novel coronavirus, vaccines will be the most important global products, servicing the world’s needs.

For India to continue being a responsible global actor that plays a central and vital role in the mission to vaccinate the world against COVID-19, India needs to build the capability and capacity at home first. The intensity of the second wave may not have entirely been within our control; but what we do next will be. So, we must ramp up production, vaccinate our population, and then embark on the essential task of making the world safe for all, and not just the rich. The success of India in saving lives—at home and abroad—in the coming months and years,  will rest on its vaccine capability that needs greater heft and rapid investments.

The views expressed above belong to the author

Standard
climate change, India, Sustainable Development

Enough Sermons on Climate, It’s Time for ‘Just’ Action

As Britain readies to host the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow in November this year, there is a concerted effort to push countries towards publicly endorsing and adopting ‘Net Zero’—a carbon neutral emission norm—as policy. This is a demand for an inflexible, near-impossible, time-bound agenda to achieve what is no doubt a noble goal. And, as is often the case with climate-related issues, the nobility of intent is at risk of being overwhelmed by sanctimonious hectoring that raises hackles instead of ensuring meaningful participation.

On 3rd March, UN Secretary-General Antonio Guterres took to Twitter to call on governments, private companies and local authorities to immediately initiate three measures to mitigate climate change: Cancel all coal projects in the pipeline; end coal plant financing and invest only in renewable energy; and, jumpstart a global effort to a ‘just transition’ from carbon to non-carbon energy sources.

On the face of it, this was an unexceptionable call from the high priest of the UN to the global laity to rise in support of an important cause. But if we were to scratch the surface of the Secretary-General’s words, we would see that his call was little more than virtue-signalling.

For, there is nothing ‘just’ about the transition that he has sought without delay. Implicit in his call is the immoral proposition to disregard poverty, despair and the yawning development deficit between nations as he places them all on the same plane. Inherent in this approach is the unedifying complicity of global institutions in foisting an arrangement founded in the belief that the poor in the developing world should underwrite the climate mitigation strategy of the developed world. The climate high priests need to realise that depriving the world’s poorest of their aspirations can never be ‘just’ climate action. It can be convenient and, hence, it has much appeal in many quarters.

The climate high priests need to realise that depriving the world’s poorest of their aspirations can never be ‘just’ climate action. It can be convenient and, hence, it has much appeal in many quarters

An Alternative Script

A waffle-free alternative script for those given to sermonising to the world would focus on three other aspects that may actually lead to faster transitions and more justice. First, an impassioned call to those who control capital—managers of pension, insurance and other funds—to ensure larger amounts of money leave the country of origin and flow to countries of deficit for building sustainable, climate resilient infrastructure of the future. The Climate Policy Initiative has calculated that less than a quarter of climate finance flows across national boundaries; in other words, the overwhelming majority of climate finance is raised for domestic projects. The states expected to disproportionately do more to battle climate change are located in Asia, Africa and Latin America. Yet, they are inadequately funded and financed and cost of capital in these places dampens the scope of action. It would be stressing the obvious to say that the frontline states cannot be expected to engage in this battle without adequate inflow of climate capital at the right price for climate action.

Second, the assessors of risk—the intractable credit rating agencies, the cash-rich central banks and the big boys of New York, London and Paris—who decide how much capital should flow in which direction, should be called upon to recalibrate their risk assessment mechanism. Let it be said, and said bluntly, that objective ‘climate risk’ outweighs subjective ‘political risk’ which prevents the flow of capital to key climate action geographies. Risk must be reassessed objectively. Till then, the highfalutin sermons of the Pontiffs of Climate would be mere lip service, which none among the Climate Laity would bother to take seriously.

Third, and, perhaps, the most ‘just’ proposition the Secretary-General could make, would be a moral directive to all Western nations to shut down coal plants and fossil fuel- based enterprises immediately and entirely abandon carbon-fuelled energy for any purpose. After all, green energy sources need room to grow and space to mature and the OECD nations must allow this at warp speed. It is farcical to deny coal plants to countries that are still struggling to claw their way up the development ladder and demand that they turn carbon neutral while thousands of units and homes belch and blow climate emissions every day in rich economies. What is good for the rich cannot be bad for the poor.

Rich countries have failed to reduce their share of fossil fuel emissions. CSEP’s Rahul Tongia has calculated that the top emitting countries in terms of per capita emissions (nations above the global average emissions) still account for about 80 per cent of global Fossil CO2.  He further explains that the absolute emissions of these countries are rising even when measured in 2019. The rich took more than their fair share historically, and are still doing so. Any ‘Just Transition’ must involve evicting the squatters occupying carbon space to the detriment of others. Buying this space from the poorer is not ‘just’; it is another perverse business model based on extraction and mercantilism of centuries past.

Any ‘Just Transition’ must involve evicting the squatters occupying carbon space to the detriment of others. Buying this space from the poorer is not ‘just’; it is another perverse business model based on extraction and mercantilism of centuries past

In the run-up to COP26 at Glasgow, we are witnessing a new passion play of countries making a dramatic show of embracing the idea of Net Zero economies in the coming decades. The script of this passion play draws on starkly evocative narratives that seek to catalyse action through theatrical terms such as ‘climate emergency’. From appropriating the voice of the powerless to acquire legitimacy and crafting compelling narratives through a new cohort of well-funded ambassadors to push the envelope on climate change policy approaches, we are seeing varied actors engaging with climate issues in different ways. These different efforts have a common design, the economic objective of socialising the cost of climate action and making the poor carry the can for the rich.

That said, some facts are irrefutable. The last decade has been the warmest in recorded human history and its effects are visible to all. In February this year, an iceberg larger than New York City broke off the frozen Antarctic  and my just be a prelude to what lies ahead. Indeed, the possibility of the Arctic turning into a benign waterway in the near future can no longer be ruled out. It would require extraordinary un-intelligence to argue that global warming and its fallout can be mitigated by business-as-usual decision-making. But even as there is trans-world consensus on climate change and its impact, many would and must disagree on the proposed burden-sharing and distribution of responsibilities as we respond as a collective.

The India Imperative

India will be significantly affected by climate change in the coming decades. It is already feeling the heat and is combatting challenges from its mountains to its coasts due to shifting weather cycles and changing climate. It needs clearheaded policies, backed by political will, on this single most important issue that will impact its growth, its stability and the very integrity of its geography comprising a multitude of topographies.

This is happening at a moment when India is poised to exit the low-income orbit and take off on a trajectory towards becoming a middle-income country. Its journey from a US $3 trillion economy to a US $10 trillion economy coincides with ongoing climate action, polarising climate debate and climate-impacted economics. India can neither isolate itself from this reality, nor can it be reticent or timid in making its choices known to the world. India cannot be a receiver of decisions made elsewhere; it has to be on the high table, co-authoring decisions implicating its future.

For India, the moment offers three opportunities in these challenging times. First, India has to prepare itself through its policies, politics and internal rearrangements to seize and realise the single biggest global opportunity of leading a global effort to mitigate emissions of the future. The IEA, in its India Energy Outlook 2021 Report, estimates that India’s emissions could rise as much as 50 percent by 2040—the largest of any country, in which case India would trail behind only China in terms carbon dioxide emissions. This need not happen and is an opportunity for India and the World.

India must grab this chance to lower its future emissions through the right investments, technologies and global partnerships. The developed world, too, must make a matching response: Just like the Marshall Plan invested billions to rebuild post-War Europe with Germany at its heart, a new age Climate Marshall Plan must see India at its core. India must prepare and offer itself as the single biggest climate mitigation opportunity for the world and the most important green investment destination.

The developed world, too, must make a matching response: Just like the Marshall Plan invested billions to rebuild post-War Europe with Germany at its heart, a new age Climate Marshall Plan must see India at its core

Second, neither the world nor India should forget the dictum that on climate, India solves for the world. The solutions that India experiments with and implements successfully will be fit to be repurposed for other developing countries with similar geo-topographical conditions and economic sensitivities. Many of them are frontline countries in the climate battle.

India can and must become the hub of climate action for this decade and beyond, offering services, technology and infrastructure through climate supply chains that span the developing world. The International Solar Alliance is just a modest beginning. The future holds multiple opportunities. The country must lead the charge through building financial institutions that will support and sustain green transitions and helping create green workforces fit for purpose for the coming decades, amongst others.

Third, as India celebrates 75 years of its independence in 2022 and leads the G20 in 2023, it has the chance to make its most significant identity shift. India moved from being a British colonial state to a free nation in 1947, and then moved from being perceived as a land of snake-charmers to becoming an internationally acknowledged technology hub at the turn of the century. This decade offers the chance for it to emerge first as aUS $5 trillion and then as aUS $10 trillion economy that will be green and low carbon in its evolution – the first large green economy of the fourth industrial revolution.

India’s expectations from Glasgow COP26 should be uncluttered—its single purpose must be to catalyse global flows and investments to India and other emerging economies. If India fails to attract investments, the markets will clearly have not signed on to the climate agenda. In this effort, India needs a leg-up from the Climate Pontiffs.

Perpetuation of global poverty and low incomes cannot be the rich world’s climate mitigation strategy. ‘Net Zero’ should not seek this end state. On the contrary, investing in the emerging world’s green transition is the only way to build a ‘just’ world. The UN Secretary-General could help ensure that the largest pool of new money flows to where the climate battle will be fought—in India and in the emerging world. That would be a just transition and an efficient one.

Standard
China, foreign policy, Great Power Dynamics, India, Sustainable Development, USA and Canada

If the EU fails, we can say goodbye to the liberal order

Eastern Focus: To what extent is Europe important for the future of the world order? Europeans feel like they count less and less on the world scene.

Samir Saran: Europe is, paradoxically, the single most important geography that will define the future trajectory of the global order. If Europe remains rooted in its fundamental principles – of being democratic, open, liberal, plural, supporting a transparent and open market economy, defending rule of law, the rights of individuals, freedom of speech – the world will have a chance of being liberal. If the European Union is split between the north and south, east and west and we see a large part of it deciding to give up on the Atlantic project and align with more authoritarian regimes – which is quite tempting, due to the material side attached to the choice – that will be the end of the Atlantic project. An EU that is not united in its ethics is an EU that will eventually write its own demise. How will Europe swing? Will it be an actor, or will it be acted upon?

I have the belief that post-pandemic EU, as a political actor, will see a new lease of life. A new political EU may be born as the pandemic ends. Unless that happens, I believe this is the end of the European Union itself. It is a do it or lose it moment. Unless Europe becomes strategically far more aggressive, far more expansive, aware of its role, obligations and destiny you will see an EU that fades. For me, the most important known unknown is the future of Europe. Will the EU hold? Will the 17+1 become more powerful than the EU 27? Which way will the wind blow on the continent? Will it really be the bastion of the liberal order or will the liberal order be buried in Europe?

The Indo-Pacific is the frontline for European safety

EF: We’ve been used to only existing as part of the transatlantic relationship. In the past few decades, Europe has never really seen itself as an individual actor, but rather in coordination with the US. That is something that is starting to shake now. Do you see Europe acting on its own terms, as a global actor, in the positive case in which the member states do get their act together? Are we rather going to continue to act together with the US? Or find some other partners?

SS: I suspect that with Brexit, you might see a far more cohesive EU, organised around the French military doctrine and French military posture. With an absent UK, I have the feeling that the political cohesion of the EU will increase and that the EU will be far more coordinated in its approach to the geostrategic and geopolitical questions. France realises that by itself, without the size of the EU, it might not be a significant actor. A French military presence will be compelling only if it acts on behalf of the EU.

Europe believed that it could change China by engaging with them, however I suspect China will change the EU before the EU changes China.

In terms of other partners, Europe has made one error. Europe believed that it could change China by engaging with them, however I suspect China will change the EU before the EU changes China. The mistake that the EU makes is that it imagines that an economic and trading partnership will create a degree of political consensus in Beijing. Nevertheless, Beijing is not interested in politics, but in controlling European markets.

What Europe should do is to consider the importance of India. If the European continent needs to retain its plural characteristics, South Asia is the frontline. What is happening today between India and China is actually a frontline debate on the future of the world order. The Himalayan standoff is just the first of the many that are likely to happen unless this one is responded to. If China is able to change the shape of Asia and recreate the hierarchical Confucian order, don’t be surprised if the fate of Europe will follow the same path. If Europe needs to feel secure in its own existence it needs to create new strong local partnerships – with India, Australia, Indonesia, Japan. The EU needs to see itself as an Indo-Pacific power. The Indo-Pacific is the frontline for European safety. If the Indo-Pacific was to go the other way, the mainland is not going to be safe.

EF: What do you think about the CEE’s role in the new emerging order? We see an increased competition for hearts and minds here. How could India help, in an environment of increased competition and active engagement of China in this space?

SS: The Central Europeans are going to be the centre of attention for many actors. China will buy their love, America will give military assurances and so on. In the near future, many actors will realise the importance of the CEE, simply because it is these countries that will decide which way Europe finally turns. In some ways they are the swing countries, the swing nations that are going to decide whether Europe remains loyal to the ideals of its past or decides to have a new path. CEE countries are in many ways the decisive countries.

CEE has two important options and two important pressures. The options: will they be able to create a consensus (between the Chinese, the Russians, the Old Europe and the new countries like India) or will they be an arena for conflict? Can we create a ‘Bucharest consensus’, where the East and the West, North and the South build a new world order and the new rules for the next 7 decades? If you play it wrong you might become the place where the powers contest, compete and create a mess.

There are also two pressures. Firstly, there is an economic divide in Europe. You are at a lower per capita income, you need to find investment funds for the infrastructure, employment, livelihoods and growth, which results in an economic pressure that needs to be tackled. Therefore, Europe will have to decide if the provenence of the money matters. Does it matter if it is red or green? Does it matter if they come from the West or the East? That is one pressure that needs consideration. How do you meet your own aspirations, while being political about it?

The other pressure is the road you want to take. How do you envisage the future? Is it going to be a future built on cheap manufacturing? Being an advanced technological society, are you going to be the rule-maker of theFourth Industrial Revolution or its rule-taker? Secondly, the nature of the economic growth that you are investing in becomes another pressure. This is the second choice that the CEE will have to make. In that sense, I believe that India becomes an actor. As we have experienced this in the past 20 years, we are one of the swing nations that could decide the nature of the world order, thus we may share this experience with you. We have also decided that we don’t want to be a low-cost manufacturing economy like China, but rather a value-creating economy, building platforms. Even if we have a small economic size, we have a billion-people digital platforms, digital cash system, AI laboratories and solutions.

What is happening today between India and China is actually a frontline debate on the future of the world order. If China is able to change the shape of Asia and recreate the hierarchical Confucian order, don’t be surprised if the fate of Europe will follow the same path.

As we move into theFourth Industrial Revolution, the tyranny of distance between Europe and India disappears. We don’t have to worry about trade links, land routes and shipping lines. Bits and bites can flow quite rapidly. As we move to the age of 3D printing, to the age of quantum computing, of big data and autonomous systems, the arena where we can cooperate becomes huge.

India gives Europe room to manoeuvre, room to choose. When it comes to choosing, besides the traditional American and Chinese propositions, there is also a third one – India, a billion-people market.

EF: Do you expect that there is going to be a shift in the EU toward reshoring and ensuring that manufacturing is not captive to Chinese interests or to Chinese belligerence?

SS: I think that we are going to see a degree of reshoring everywhere. It is not going to be only a European phenomenon. Political trust is going to become important. Political trust and value-chains are going to affect one another. Countries are going to be more comfortable with partners who are like-minded. They don’t have to agree on everything, but they should be on the same ideological and political spectrum.

There are two reasons for this. One is the pandemic that we are currently facing and in a way it exposed the fragility of globalisation as we know it. The hippie and gypsy styles of globalisation are over. I think that people are going to make far more political decisions. The second is that as we start becoming more digitalised societies, individual data and individual space are going to be essential, thus you don’t want those data sets to be shared with countries whose systems you don’t trust. Value is going to increasingly emerge through intimate industrial growth, far more intimate in character – it is going to be about the organs inside your body, it is going to be about the personal experiences, about how we live, transact, date or elect. They are all intimate value chains. The intimate value-chains will require far greater degree of thought than the mass production factories that created value in the XXth century.

The EU may be setting the format for managing our contested globalisation

EF: You mention the rising value of trust, as a currency even. In Europe, we often point out that we are an alliance based on values. But even our closest partner, the US seems to be moving in a much more transactional direction, let alone China and others. You are describing a worldview that is relying increasingly on shared values, at least some capacity to negotiate some common ground, on predictability, whereas in many ways it seems that things are moving in the opposite direction, a much more Realpolitik one. Is this something that is going to last?

SS: The pandemic has brought this trend to the fore. People are going to appreciate trust and value systems more than ever. But I think this was inevitable. If you would recall, India used to be quite dismissive of the EU, calling it “an Empire of gnomes”, with no strategic clout. But if you look at the last two years, India has started to absorb, and in a sense to propose solutions that the EU itself has implemented in the past. India came up with an investment infrastructure framework in the Indo-Pacific that should not create debt trap diplomacy, should create livelihoods, respect the environment and recognise the rights and sovereignty of the people. India came up with this when it saw that the Chinese were breaking all rules and all morality to capture industrial infrastructure spaces. The Americans under Donald Trump also came up with the Blue Dot American project for the Indo-Pacific – a framework that was based on values. Whenever you have to deal with a powerful political opponent you throw the rule book in there. If you don’t want to go to war with them, you will have to manage them through a framework of laws, rules and regulations. The value systems are a very political choice. They are practices and choices enshrined in our constitutions and foundational documents. Therefore, dismissing values and norms as being less political or less muscular is wrong. The EU, “the empire of gnomes” that was much criticised for the first two decades as weak and not geopolitical enough, may well become an example for other countries. If it remains solvent, a vibrant union, and if it is not salami-sliced by the Chinese in the next decade, the EU may well be setting the format for managing our contested globalisation.

This pandemic is the first global crisis where Captain America is missing

EF: How does India see the future of the Quad? Usually the Quad is associated with a certain vision of the Indo – Pacific, free from coercion and open to unhindered navigation and overflight. Are we going to see the emergence of a more formal geopolitical alignment or even an alliance to support a certain vision about Asia?

SS: The Quad is going to acquire greater importance in the coming years. It is going to expand beyond its original 4 members. We’ve already seen South Korea and the Philippines joining the discussion recently. We are going to see greater emphasis by all members doing a number of manoeuvres, projects and initiatives together. The next 5 years will be the age of the Quad. The pandemic started this process. I see three areas where the Quad can be absolutely essential.

One is in delivering global public goods, keeping the sea lines open and uncontested so that trade, energy and people can move with a degree of safety and stability. In a sense, I see the Quad replacing the Pax Americana that was underwriting stability in certain parts of the world.

The second area is going to be around infrastructure and investments in certain parts of the world. I see the Quad grouping many initiatives that will allow for big investments in countries which currently have only one option – China. The Quad will be able to spawn a whole new area of financial, infrastructure and technology instruments closer to the needs of Asians, South Asian, East African, West Asians including the Pacific Islands. The Quad will be the basis of this kind of relationships in the upcoming years.

Thirdly and most importantly, the role of the Quad will be to ensure that we won’t reach a stage where we have to reject the Chinese. None of us wants a ‘No China’ world, because all of us benefit from China’s growth and economic activities. Many of us have concluded that the only way to keep the Chinese honest in their engagements, economical or political, is to be able to put together a collective front in front of them, not negotiate individually. The EU has done that longer than anyone else and that’s why the Chinese don’t like the EU and apply a ‘divide and conquer’ methodology to get more favourable deals. The Quad is in many ways an expression of that reality, as well of that the middle powers in Asia and Pacific (Indonesia, Australia and Japan) will have to work together, sometimes without the Americans, to negotiate new terms of trade and new energy, or technological arrangements. The Quad in many ways is also the ‘make China responsible’ arrangement, an accountability framework which will keep the Chinese honest and responsible actors in the global system.

The next 5 years will be the age of the Quad. The Quad in many ways is also the ‘make China responsible’ arrangement, an accountability framework which will keep the Chinese honest and responsible actors in the global system.

EF: Do you also see this trend extending into the political sphere in a kind of collective endeavour both in Asia (through the Quad) and in the West (starting with Europe perhaps) to build a new kind of world order? Do you feel that this ‘middle powers concert’ is one possible way to go? Or do you believe that we are going to be disappointed, as we were by the BRICs, when some of the members drowned in their own domestic problems? 

SS: We are part of a world that doesn’t have any superpowers. The last superpower was America, and that ended with the financial crisis ten years ago. Ever since, we have been literally in a world which had quasi-superpowers like the US, to some extent Russia, the Chinese, but there was no real hegemon that could punish people for bad behaviour and reward people for good behaviour.

Some of the most interested actors in the Indo-Pacific in the last two to three years happened to be the UK and France. A few years ago, they sensed that if they want to be relevant in the future world order, as it is built and as it emerges, they need to be present in the debates that are unfolding in this part of the world. Both partnered with India – to do military manoeuvres, to create maritime domain awareness stations, to invest in infrastructure and to create clearly the beginnings of a new order that might emerge from here. We will have to create these coalitions to be able to get things done.

The pandemic tells us something which is also quite tragic. Ever since I was born I have never witnessed a global crisis that did not have America as a response leader. This pandemic is the first global crisis where Captain America is missing. What makes it even more complicated is that the successor to Captain America has caused the crisis. Hence, you have the old power, which is absent and engrossed in its own domestic realities, and the new power that has been irresponsible and has put us in this position. Both the previous incumbent and the new contender don’t have the capacity to take action in this world by themselves. This tells us that building a coalition of middle powers is absolutely essential. It is not a luxury, it is not a choice. This is something concerning our own existential reasons that we must invest in.

EF: Do you see this coalition of middle powers as some sort of a ’league of democracies’? It is a concept that was previously advanced by John McCain and now Joe Biden is embracing as his overarching framework for foreign policy. Do you see the potential for creating this league of democracies as some sort of manager and defender of the liberal international order?

SS: I think it is inevitable. Technology is so intimate that we are not going to trust our data with folks we have a suspicion about. Thus, it is this reality that makes this coalition of democracies and like-minded countries inevitable. Even if we may never call it that, it is going to become that. We are going to notice countries engaging in these intimate industries with others who are similar, who are like-minded, who have similar worldviews. Still, this process may take longer than we have. We do not have the luxury of time, because we are going to be destroyed, divided, decimated and sliced in the meantime.

A few countries will have to take leadership – either the French, the UK, the EU itself, or India, or all of them. Until there is an agreement on a big vision for the new world order we must agree to an interim arrangement and have to create a bridging mechanism that takes us from the turmoil of the first two decades of this century to a more stable second half of the century. We don’t want to go through two world wars in order to achieve this unity, as we did in the past century. We need to have some other mechanisms that will prevent conflict, but preserve ethics.

In this context the EU-India and the CEE-India projects are essential. It is us who have the most at stake, because our future is on the line. The more the world is in turmoil, the less we will be able to grow sustainably. It is our interest to create and invest in institutions and informal institutions that could preserve a degree of values and allow for stability.

Such a coalition reuniting countries from Central Europe, Western Europe and from Asia (such as India, Australia, Japan) will normalise the behaviour of both America and China. I do not think that they behaved responsibly in the last few years – one because of its democratic insanity, and the second because of its absolutist medieval mindset. Along these lines, you have democratic failure at one end and a despotic emergence at the other end. We need to ensure that democracy will survive and that the middle powers will be able to normalise this moment.

EF: What is Russia’s role in all this? Is Russia going to be on our side? Or is it going to be on China’s – considering that sometimes they seem to, although their agendas perhaps align only when it is opportune for both of them?

SS: Russia has an odd reality. It is a country that has a very modest GDP (the second smallest within the BRICs) but it is also a country that is possibly the second most powerful military force in the world. A big military actor with a very small economic size. This is creates a policy asymmetry in Moscow. It has very little stakes in global economic stability or global economic progress, but it has huge clout in the political consequences of developments around the world. The Russians have somehow to be mainstreamed into our economic future. Unless Russia is going to have an active role in the Fourth Industrial Revolution or have real benefits, their economy will stay in the 20th century and therefore their politics is going to reflect a 20th century mindset. If they are included in the economic policies of the future, their politics will evolve too. It is not an easy transition. Nevertheless I would argue that the Russians have to be given more room in European thinking so that they don’t feel boxed into the Chinese corner. The last thing that we should be thinking of is giving Russia no option but to partner with the Chinese. Perhaps the immediate neighbours (the CEE) will not be open to a partnership, taking into account their political history. But countries like India would be able to offer space for manoeuvre. In that sense, India could be a market, a consumer, an investor in the Russian economic future and the CEE-India partnership could become important. Can we together play a role in normalising that relationship? Can we give the Russians an option other than China? If Russia’s economic future is linked to ours, it doesn’t have to be in the Chinese corner. The Russians are not the Chinese. The Chinese take hegemony to a whole new level; the Russians have this odd asymmetry that defines their place in the world. This asymmetry should be addressed with new economic possibilities and incentives.

The rise of the Middle Kingdom

EF: We’ve been discussing how to react to a world that is increasingly defined by China. But what are China’s plans? What does China want? 

SS: I do not know their plans, but I can tell you how I see China’s emergence, from New Delhi. I define it through what I call the 3M framework.

Firstly, I see them increasingly becoming the Middle Kingdom. Chinese exceptionalism is defined in those terms. They believe they have a special place in the world – between heaven and earth. They will continue to defy the global rules and they will not allow the global pressures to alter their national behaviour or domestic choices.  So we will see the first M, the Middle Kingdom, emerge more strongly in the years ahead.

This pandemic is the first global crisis where Captain America is missing. What makes it even more complicated is that the successor to Captain America has caused the crisis.

Secondly, this Middle Kingdom will make use of modern tools. They see Modernity as a tool, not as an experience. In that sense they use it to strengthen the Middle Kingdom, not to reform and evolve. Such tools include digital platforms, the control of media and a modern army with modern weapons to control and dominate.

Thirdly, the final M deals with a Medieval mindset. They are a Middle Kingdom with Modern tools and a Medieval mindset that believes in a hierarchical world. We are a world which has moved away from the hierarchies of the past. The world is more flat, people have equal relationships. The Chinese don’t see it like that. They see a hierarchical world, where countries must pay tribute to them. They sometimes use the Belt and Road Initiative to create the tribute system or the debt trap diplomacy to buy sovereignty. Likewise, they use other tools to ensure the subordination of the countries they deal with.

These three Ms are defining the China of today.


This interview appeared in The Eastern Focus

Standard
Content Modernisation, Cyber and Technology, Free Speech, Freedom and Expression, India, media and internet, tech and media

Social media platforms can’t be a law unto themselves

Social Media Platforms, Communities, safety, societies, debates, politics, US Election, monitoring, safety, sovereign, boards, superfluous

The US elections are witnessing heated, contested, loud and aggressive debates, with media (new and old) donning visibly partisan robes. One such media report has sought to pull India and Indians into the middle of the Trump Vs Biden campaign battle.

First, there is a simple fact that often eludes social media platforms like Twitter and Facebook as well as the easily outraged proponents of the newly-minted ‘cancel culture’. Social media platforms may have their own terms and rules of engagement and content monitoring; it is their prerogative. But those terms and rules cannot—and, more importantly, must not—be allowed to supersede the law as framed by sovereign states, especially democracies, where these platforms operate.

Social media platforms may have their own terms and rules of engagement and content monitoring; it is their prerogative. But those terms and rules cannot—and, more importantly, must not—be allowed to supersede the law as framed by sovereign states, especially democracies, where these platforms operate

For example, the law as it exists in India, based on its constitutional and penal provisions, overrides terms and rules framed by social media companies based anywhere in the world, operating within its territory. After all, if these companies ensure compliance with Indian law in order to conduct business, equal compliance would be in order for content monitoring and management. There cannot be two separate arrangements.

It is necessary to underscore this point to unclutter the debate triggered by an article in the Wall Street Journal, which imputed that Facebook has shown extraordinary preference for the BJP on account of the political bias of some of its employees. Facts do not bear out the newspaper’s contention, which is of a piece with what is termed as ‘cancel culture’, where only those views that are endorsed by a ‘select few’ may be allowed a public platform. The ensuing shouting match needs to be contested with a tempered view on the more substantial issue of a platform’s self-assumed supreme right and absolute authority to decide what can and cannot be allowed to be said.

It is quite obvious that the upcoming US presidential election and the attempt to coerce platforms into becoming an extension of the campaign for or against the incumbent Administration—which is no secret within and outside social media corporate offices—instigated the outrage against Facebook’s alleged political bias in India. It is a proxy that prepares the ground for what lies ahead.

It is quite obvious that the upcoming US presidential election and the attempt to coerce platforms into becoming an extension of the campaign for or against the incumbent Administration—which is no secret within and outside social media corporate offices

But since it involves India, and Indian users of Facebook and all other platforms, let us locate this debate within the Indian context and focus on three crucial questions surrounding platform accountability and compliance.

First, what is the Indian consensus on what constitutes freedom of expression online? It certainly must not be what Facebook, Twitter, et al deem fit. The Constitution of India guarantees its citizens certain fundamental rights that cannot be encroached upon except under special circumstances and that too only by the state, not an external agency. Article 19 (2) qualifies freedom of speech and expression with “reasonable restrictions … in the interests of the sovereignty and integrity of India, the security of the state, friendly relations with foreign states, public order, decency or morality or in relation to contempt of court, defamation or incitement to an offence.” More often than not, these restrictions are followed in the breach, unless there is a specific complaint.

India’s judiciary has intervened to either uphold or strike down these restrictions depending on their application. In other words, there are no specific, watertight definitions guiding Article 19 (2). By and large, all speech, unless it violates India’s penal code, is held to be free. Perceptions and legal positions have changed over time. For instance, DH Lawrence, once held to be ‘obscene’ by the courts, is now a part of university curricula. Barring the early years of the Republic, the restriction on speech that may harm relations with ‘friendly countries’ has never been imposed. The Supreme Court’s Hindutva judgement has elasticised political speech. ‘Hate speech’ is broadly defined as speech that promotes enmity between communities while ‘violent speech’ is understood to be speech that calls for or poses an imminent threat of violence. There are separate laws to deal with both and judgements to guide their application.

Now, for some recent examples of free speech, social media responses and the consequences. Last week, P Naveen, a relative of Congress MLA Akhanda Srinivasa Murthy in Karnataka, posted content—in response to another post—which was deemed to be “anti-Islam” by a mob that ran riot, burning down the legislator’s house and ransacking two police stations. The police opened fire; four people lost their lives. It could be argued that had Facebook been alert and ‘unbiased’ in its content monitoring, then it would have pulled down the provocative post that prompted the response by Naveen, thus, nipping all mischief in the bud. But since the first post remained untouched, could that be imputed to Facebook’s bias towards a specific community and against another? At which point does accountability come in?

Also last week, Twitter locked the account of JNU professor and well-known public figure Anand Ranganathan for posting a verse from the Quran that called for “punishment” of those who “abuse Allah and his messenger” in the context of the Bengaluru riots. Twitter has said that Anand Ranganathan’s account has been locked because his tweet violated the platform’s rules that explicitly state, “You may not promote violence against, threaten, or harass other people on the basis of race, ethnicity, national origin, sexual orientation, gender, gender identity, religious affiliation, age, disability, or serious disease.” How can something that can be freely stated, either in writing or verbally—in Indian media because there is no legal bar on it—be out of bounds on Twitter? Do Twitter rules supersede Indian laws?

Which brings us to the second question: What should be the operating law for social media platforms? Is it the law of India or is it the law of the country where the parent company is based? Or, more ominously, is it the ‘law’ as framed by the company, regardless of the law(s) of either the parent or the host country. With respect to the brouhaha over Facebook and its alleged bias, were company officials pushing back against Indian law or were they pushing back against a presumptive ‘law’ to (selectively) govern speech globally? It is this grey area in which social media platforms operate that creates fertile ground for mischief and indeed for political capture and gaming. It is imperative that there be no ambiguity in this regard, especially because it concerns the rights of citizens.

The third big question that arises is: What recourse do we have when someone – an individual, an institution, or the state – seems to be erring on the side of hate speech? Will the errant entity or individual be held to account by law or by dissent? As of now, it is unclear as to exactly which authority we are appealing. Without a framework to approach and remedy cases like these, Indian social media users will remain subject to the whims and fancies of content platforms, who will arbitrarily decide for themselves what is the ‘common good’, often with scant regard for the law of the land. For instance, if Twitter were to ban the account of an Opposition leader, it would prompt cries of censorship. On the other hand, if a ruling party leader were to be banned, should it be seen as acting under pressure?

It is for the state, a sovereign entity, to respond (in keeping with its extant laws) if there is a speech violation, intentionally or otherwise. Platforms like Facebook and Twitter cannot be allowed to arrogate to themselves this role and render the sovereign power of the state meaningless. As mentioned earlier, the Constitution allows only for the State to restrict citizens’ rights in extraordinary situations, and even that is open to judicial scrutiny. If we were to allow Facebook, Twitter and other social media platforms to have the executive power to infringe upon our freedoms, it would create space and scope for them to be used as political tools by those in power or out of power. That would be against all canons of national sovereignty and fly in the face of freedom.

Therefore, social media platforms cannot, and must not, interfere in the domestic debates and political processes of a sovereign country. If cause and effect (to a social media post) are limited to a local jurisdiction, content platforms cannot, and must not, get involved, except for providing evidence to aid law enforcement, if called upon by the courts. If the effect of social media content is transnational, then international agreements between the countries concerned may be used for law-enforcement application.

Social media platforms cannot, and must not, interfere in the domestic debates and political processes of a sovereign country

The noise over Facebook’s alleged bias aside, we are talking about the sanctity, integrity and safety of societies, communities and countries. Sovereign states, more so in democracies, are responsible for these areas of public life and are accountable to national institutions as well as citizens. Social media and content platforms, however, are accountable to nobody but their boards. They are far removed from the concerns of the user whose time and patronage they actively solicit.

Corporate governance cannot be restricted to the non-digital world; it must now extend to digital platforms. Platforms should be held both answerable and actionable for their decisions, which cannot be unfettered from the law of the land where they operate. Everything else is superfluous.

Standard
Commentaries, foreign policy, India, international affairs, Maritime Security, Strategic Studies

Britain should shed its China obsession to seize the moment in the Indo-Pacific

Post-Brexit Britain needs to move away from its China-centric policy and step up trade engagements in the region, which offers potential for win-win economic gains. London should also look to join its allies, including the US, India, Australia in the support of regional security to manage the risks posed by Beijing

 Britain, Indo-Pacific, Singapore, China-centric, Engagements, region, Australia, regional security

We are living through the Indo-Pacific Century – a moment of great opportunity in world history when the balance of power and wealth is shifting eastward for the first time in hundreds of years.

But 2020 has offered proof that this century will also be a challenging one.

First, the coronavirus pandemic has been the biggest shock to the global economy for decades. Even countries that have avoided the worst of the public health crisis have seen significant negative economic effects. The disease has served to underline how globalisation has connected all of us, for better and for worse.

Second, the pandemic has been accompanied by a more assertive China. In recent months, Chinese troops have had a bloody face-off with India along the border between the two countries in the Himalayas, while Beijing continues to aggressively press its claims in the South China Sea – all this amid its extension of control over Hong Kong through the controversial national security law.

These factors may have contributed to Britain’s decision to ban Huawei from its 5G network, as Australia did earlier. Telecommunications will play an increasingly central role in developing closer security partnerships, and Britain’s choice is a clear indication of the country’s willingness to continue to work shoulder to shoulder with the United States and its other partners. The UK is not alone in this realisation. India, the US and Japan have also banned, or are considering banning, Chinese apps.

This context prompts a vitally important question. How can Britain better partner and work with countries in a region spanning an area extending from India to Japan and reaching down to Australia and the South Pacific, to partake in the growth-led opportunities and manage the risks posed by a prosperous and expansive China?
A London think-tank, Policy Exchange, has announced an Indo-Pacific Commission that we are part of, to examine these issues. Together with other experienced policymakers from around the world, we will discuss and recommend new approaches Britain and its allies can take to further the rules-based order across this strategically important region. Naturally, for the UK, this interest also reflects a new post-Brexit awareness of the importance and potential of the Indo-Pacific, as London looks beyond the European Union to strengthen alliances and explore new markets.
Our advice to Britain, though it applies to other countries, would start with two basic ideas. First, avoid being too China-centric. As the commission’s chairman, former Canadian prime minister Stephen Harper, has observed, a focus on China alone – both its positives and negatives – would be to overlook the myriad opportunities for trade and other cooperation on political, defence and diplomatic issues with countries including Japan, India, South Korea, Australia, Indonesia and Singapore in the Indo-Pacific region. Think, for example, of the opportunities that the City of London could explore in South and Southeast Asia in financial innovation, in which it is a world leader.
Second, Britain should reimagine its place in the world order. It might have retreated from “East of Suez” more than half a century ago but this is the time to step up. As the world’s fifth-largest economy, there are potential win-win economic gains to be made in the Indo-Pacific; for example, in entering existing multilateral trade agreements, as well as bilateral agreements with Australia, India, Japan and other growing Asian economies.
Britain also remains a leader in innovation and technology, as shown by the phenomenal global success of entrepreneurs like James Dyson, whose company is now headquartered in Singapore and whose technology and products are considered a global standard for future-oriented innovation. More recently, the leadership role of the UK can be seen by the strides Oxford and Astra-Zeneca are making on a Covid-19 vaccine. Astra-Zeneca has partnered with the Pune-based Serum Institute of India, which is the largest vaccine maker in the world by volume, to manufacture 1 billion doses of this vaccine.
Britain also remains a leader in innovation and technology, as shown by the phenomenal global success of entrepreneurs like James Dyson, whose company is now headquartered in Singapore and whose technology and products are considered a global standard for future-oriented innovation
This is a precursor to the potential of partnership between Britain and the Indo-Pacific countries. This leadership – bolstered by the fact the UK is home to no fewer than six of the top 50 universities in the world – means that the country has the potential to be the knowledge lab for the Indo-Pacific economies, where many young people still see the UK as their key destination for education and business.
Just as the UK should build on existing multilateral trade agreements in the Indo-Pacific, it should also look to join its allies in the support of regional security and defence. What are the most effective ways for London to join partners and allies – notably India, Australia and Japan – to strengthen regional security through defence engagement and presence? One answer can be found in the recent news that British officials are debating whether to base one of the UK’s new aircraft carriers in the Far East, where it would conduct military activities with allies including the US and Japan.

Just as the UK should build on existing multilateral trade agreements in the Indo-Pacific, it should also look to join its allies in the support of regional security and defence

This, of course, builds on what is already happening, with Japan’s Maritime Self-Defence Force conducting trilateral exercises recently in the Philippine Sea with the Australian Defence Force and the USS Ronald Reagan Carrier Strike Group. Britain, as a permanent member of the UN Security Council – and a country with existing defence arrangements with Singapore, India, Malaysia, Australia, New Zealand and Japan – can play a role here, not least in the context of the contested South China Sea. Britain has an opportunity in the Indian Ocean as well. It should seize this new geopolitical moment and participate in the shaping of a new coalition along with India and the US.
Standard
China, India, Indian Defence, Internal Security, Strategic Studies

Celebrating Rafale, rethinking India’s national security

Indian Air Force, Media Wars

As five Dassault Rafale fighter jets – the first of 36 India agreed to purchase from France four years ago – landed at Ambala Air Force base, there was understandable celebration among civilians and those who don the military uniform in India. After all, this is the first high profile defence acquisition, barring the American assault helicopters, in decades.

The celebratory mood, however, must not hide the dark reality of India’s inept defence procurement process. The Indian Air Force, hobbled by fleet depletion and aircraft well past their fly-by-date, first communicated its desire to procure 126 Medium Multi-Role Combat Aircraft (MMRCA) to the Ministry of Defence in 2000.  After two decades, three prime ministers, four Governments, and a dizzying number of flip-flops and somersaults, the first five Rafale fighter jets finally landed in India on 29th July.

Opportunistic media hype apart, the arrival of these jets should be a moment of sombre national introspection. A nation that set out to procure 126 aircraft is able to obtain just five after two decades, that too by having to throw away piles of files that prevented any progress. This is a saga of a nation with an incompetent ‘system’.

The arrival of these jets should be a moment of sombre national introspection. A nation that set out to procure 126 aircraft is able to obtain just five after two decades, that too by having to throw away piles of files that prevented any progress

India is unprepared for the ensuing decade that will witness a world in upheaval and where national security will demand a significant share of resources and human capital. The Biblical ‘Four Horsemen’ have long symbolised the end of times. An honest enquiry into India’s national security preparedness will be defined by the four horsemen whose arrival portend the coming of the Apocalypse.

First, as the MMRCA saga shows, is India’s institutional inability to quickly arrive at a decision, which is invariably followed by inadequacy when it comes to swift execution of that decision.

The Rafale story serves as a demonstrator of the Indian state’s woeful (in)capacity – of its severe budgetary constraints; its inept (and self-serving) bureaucracy; its crusty defence establishment riddled with turf wars, ego battles and a vaulting sense of entitlement; and its incompetent political class that has spectacularly failed to rise to the defence of India by putting national security above party politics.

These stakeholders must be reminded of history’s abiding lesson: No nation has achieved its full potential without first establishing a strong national security industrial base. In recent times, India has set itself on the path to realising this goal with an overwhelming dependence on foreign powers. Even then, it has repeatedly stumbled due to procrastination by the ‘babu-neta’ combine.

Second, the inability to be honest with oneself. This is marked by the inability to read history correctly and to recognise India’s real enemy. Despite the obvious lessons New Delhi should have drawn from its defeat in 1962, it has largely privileged placating Beijing only to further fuel China’s untenable ambitions. As part of this perverse posture, India’s custodians of discourse have downplayed the bloody nose India has given China on at least two occasions last century and even the significant battlefield losses inflicted on China this summer.

India’s many dalliances with China, be it at BRICS or over the AIIB (Asian Infrastructure Investment Bank), were shaped by the romanticism of co-creating an ‘Asian Century’. That should have ended with Doklam in 2017. It was a promise China never meant to keep or maybe never even made at all.

India’s many dalliances with China, be it at BRICS or over the AIIB (Asian Infrastructure Investment Bank), were shaped by the romanticism of co-creating an ‘Asian Century’. That should have ended with Doklam in 2017.

We have hidden facts from 1962 onwards from all, and we continue to hide facts about Chinese behaviour and action even today. Since 2013, Chairman Xi has made abundantly clear his absence of interest in Asian multi-polarity. In Doklam, he shouted it through a megaphone for all the world to hear. China apologists do not hear and do not care.

They fail to assess China as an implacable neighbour and Xi as afflicted with an insatiable lust for power and territory. They ignore the China that views India as a civilisational foe and the Communist Party that seeks to undermine its neighbour’s political, economic and social architecture. Instead, these ‘experts’ crowd out other views from powerful pages, explaining Beijing’s malfeasance as a consequence of India’s sovereign decisions, internal politics and enhanced partnership with America.

What will it take for India to admit, unambiguously, that its neighbour is a long-term geopolitical rival and an existential threat? The tangential elements of this outlook are in place: India’s rejection of China’s Belt and Road Initiative and, more recently, its digital avatar. But the question is: Will such tactical moves serve as the cornerstone of a long-term strategy? Or, since the elephant in the room can no longer be ignored, is the template for Wuhan 2.0 being drafted by the blind men (and women) who have over the decades led India to its China conundrum?

Third, the inability to sense and seize an opportunity. Many countries have realized, or are beginning to, that they hedged their bets in Asia incorrectly. Their misplaced mission to socialise China into a rules-based international order having totally failed, they are now confronted by the reality of an imperial Beijing. Can New Delhi leverage this opportunity?

In 1972, China sensed America’s need to counterbalance the USSR and used that moment to sneak past the Iron Curtain. The Great Thaw was less a Henry Kissinger masterstroke and more a Mao success. The historic photograph in The Washington Post of a grinning President Richard Nixon with an inscrutable Paramount Leader Mao Zedong told the story best.

Beijing thought ahead and seized the moment, letting Washington foolishly believe it had stolen a march over China. Neither Nixon nor Kissinger could look beyond their immediate political imperative; China looked into the future, almost into the next century.

The lesson from that singular act of China was, and remains, that shadows of the past should not be allowed to precede India’s foray into a new world order. In 1971, Nixon ordered the US Seventh Fleet’s Task Force 74 into the Bay of Bengal as a nod to America’s ‘tilt’ towards Pakistan and to signal opposition to the Indo-Soviet Treaty.

But history moves in unpredictable cycles. The contrast between then and now is striking: The US has sent a carrier battle group into the region at a time when India and China are locked in a border confrontation. This time round, the group is exercising with Indian naval forces, bolstering a US-India partnership dedicated to resisting China’s coercive tactics and ensuring that the Indo-Pacific remains free and open. Clearly, 2020 is not 1971.

Asia has come a long way since the 1970s. In the retail market of the region’s geopolitics, India still commands a premium. As prospects of a two-front war become increasingly probable, can India shed its coy reluctance and operationalise arrangements that will welcome American naval presence in the Arabian Sea and the Bay of Bengal? A US frigate or two would send the signal to Rawalpindi to behave if India and China do engage militarily in the Himalayas. It would, in the medium term, also allow India and the US to manage the inevitable increase of Chinese presence in the Indian Ocean.

The first step towards this would be operationalising, even if for optical purposes, the Logistics Exchange Memorandum of Agreement by inviting US ships exercising in the region to use Indian facilities. This should further expand into the Indian Ocean with India facilitating an agreement on the Chagos Islands by leveraging its bilateral relations with Mauritius. A US presence at Diego Garcia is in India’s interest. It always was; now more than ever before.

Simultaneously, and before it’s too late, India must militarise its southern tip, the Andaman and Nicobar Islands: An air base and a naval docking facility are passé; India needs its very own Diego Garcia in its own national waters. If India does not do it now, very soon a rising crimson tide will leave it with no political room to have any choice. Far from matching China on the seas, if the Rafale saga is a pointer, Indian boats may need Chinese permission to leave the lagoons as our hardware would be weak and partnerships non-existent.

Although there is bi-partisan consensus in the US on Washington’s China policy, it is worth recalling that Joe Biden was part of an Administration that once harboured imaginations of a ‘G-2’ world. Drawing the US into the Indian Ocean and India’s seas will stymie such inclinations as well as get rid of the shadows of 1971 that lurk in some minds.

Although there is bi-partisan consensus in the US on Washington’s China policy, it is worth recalling that Joe Biden was part of an Administration that once harboured imaginations of a ‘G-2’ world

From the seas to the mountains, India must use the response to China’s hostility to its advantage – boldly, robustly and openly. For instance, the Quad can be taken beyond maritime security if India were to invite its partners for mountain exercises in the Himalayas next summer. China has militarised the Line of Actual Control (LAC). India militarising its Himalayan zone and creating special multilateral training and collaboration programmes would be an apt sovereign response.

The ongoing confrontation in Ladakh reminds us that claims over territory have to be backed up by connectivity, military presence and control. We may need to prepare for a highly militarised and un-tranquil LAC in the coming years.

As always, our commentariat will be pleading and pushing for ‘inaction’ as a policy option, in the mountains and in the seas. The underlying argument will be consistent with the ones deployed in the past – our actions must not provoke the dragon. The fact remains that China’s belligerence is not predicated on India’s actions, it flows from Beijing’s hostile and expansionist worldview.

Last, though not least, the inability to take its citizens into confidence. India is the only nation with great power ambition that has not adopted a formal and declared national security strategy. What passes for one is the frail doctrine of ‘strategic autonomy’, open to multiple subjective interpretations. Like ‘Panchsheel’, ‘Non-Alignment’ and ‘South-South Cooperation’, it is just another convenient phrase. It serves as a shield for indecisiveness, not as a lighthouse for agile decision-making.

Beyond the shrill prime time media wars that shape the foreign policy outlook of India’s voters, they largely have no metrics through which to judge the actions of their elected Government. India’s 1.3 billion citizens deserve far better. But since that awareness is denied to them, they applaud the landing of five fighter jets while awaiting another 31 on some unknown date, even as the country faces off Xi’s forces in the north and a ‘terror factory’ to its west.

Beyond the shrill prime time media wars that shape the foreign policy outlook of India’s voters, they largely have no metrics through which to judge the actions of their elected Government

The question is, should we ignore the four horsemen and continue marching straight into a geopolitical Apocalypse?

Standard
China, Commentaries, foreign policy, India, Strategic Studies, tech and media

Resisting Chinese encroachment

India must not contribute to the digital and economic rise of the same power that harms it

 Chinese encroachment, China Tech, apps, Hegemony, Xi Jinping, Huawei, Samir Saran

On June 29, the minister for electronics and information technology and law and justice, Ravi Shankar Prasad, tweeted that “For safety, security, defence, sovereignty & integrity of India and to protect data & privacy of people of India the government has banned 59 mobile apps.” After the usual partisan bluster surrounding this move subsides, India must operationalise and strengthen this momentous decision. India, its people, and its territory that are now increasingly digital, must be protected from China’s encroachment and influence.

This long-term response has to be shaped by three ideas. First, India must not contribute to the success, proliferation and performance of digital weapons that will be ranged against it. China’s tech must be recognised as one. Second, it must wean itself away from an iniquitous trade relationship that makes it dependent on a country that seeks to harm it. And, third, India needs to step out of the shadow that stunts its own economic growth, diminishes its political clout and limits its digital ambitions.

The presence of China’s hardware and platforms in India’s digital ecosystem constitutes a long-term security threat. Arriving at this conclusion requires no strenuous leap of logic. A level-headed assessment of China’s stated intentions and observable actions is enough. China has manipulated democratic means to transmit its propaganda and advertised its way to ensure suitable reportage and headlines. It has leveraged WeChat to interfere in Canadian politics, and to intercept content beyond its jurisdiction, and adopted western social media platforms to target dissidents abroad, exacerbate racial tensions in the United States (US), interfere in Taiwan’s political processes and spread disinformation about the coronavirus. China has entrenched the influence of its tech platforms in key global institutions such as the United Nations in an attempt to redraw the rules of information flows and the ethical applications of emerging technologies like facial recognition systems.

China has entrenched the influence of its tech platforms in key global institutions such as the United Nations in an attempt to redraw the rules of information flows and the ethical applications of emerging technologies like facial recognition systems.

These are fundamental to China’s great power ambitions — they assist Beijing to expand its “discourse power”, develop indigenous technologies, create lock-ins through standards and infrastructure, weaponise its economic and technological interdependence, and emerge as a technology superpower. Relations with India are inconsequential to Beijing’s imagination of the world. India has to look out for itself. This new mindset to review engagement with China tech is a vital first step to protect itself.

China will continue to gather information on Indians. More worrisome is the insidious ability of the Communist Party of China (CPC) to interfere in or influence India’s political and social spheres. During the Doklam stand-off, the security establishment discovered that the Chinese-owned UC Browser was filtering certain news on Android handsets in India to shape perceptions and outcomes — classic information warfare in the digital age. Recently, we have seen content critical of China being taken down on one of the banned apps and moderation of other incidents and images as well.

This is not unique to Chinese platforms. But far-reaching national security legislations, and subservience to a one man-led party that is inimical to India, make their continuance untenable. Indian democracy, howsoever flawed, must steer clear of the digital “tea rooms” owned by the CPC.

Will this Indian decision cause economic harm to Chinese platforms? In terms of revenues, clearly it will not. In terms of value, tremendously so. Platforms rely on network effects to scale — every additional user drives up valuations and the aggregate data that they produce feeds into other commercial and research and development activities and product development. Indian eyeballs and data should not fuel Chinese malfeasance directed against them.

Similarly, India must bar China’s telecommunications infrastructure from its 5G networks. It is time to say “No way Huawei”. Countries such as Singapore, the US, Australia and others have already signalled different degrees of intent to manage the Dragon. New Delhi’s decision should strengthen this trend and encourage others. Political trust is increasingly going to shape the direction of technology flows. India must work with its allies and partners through new initiatives such as the Global Partnership on Artificial Intelligence to compete with and contain China.

India must bar China’s telecommunications infrastructure from its 5G networks. It is time to say “No way Huawei”

India’s actions will invite consequences. China will respond using other aspects of the economic relationship. India’s dependence on electronics, pharmaceuticals and other industrial inputs are well-documented and easy pickings. China’s response could manifest itself along the Line of Actual Control or through cyber intrusions. China’s ability to impose costs must serve to motivate India.

Bilateral trade is healthy when there is a balance. With China, it is a doubled-barrelled shotgun trained between India’s eyes. It is important that we fix this now as a three trillion dollar economy. Otherwise, all our future growth will only serve to strengthen the entity which seeks to weaken us.

India’s decision has come at a time when economic activity is already under siege from the Wuhan virus and when major economies are also questioning their dependence on China. A reconfiguration of value chains is inevitable. Public opinion favours this and the short-term pain will be acceptable to many. As India restarts its pandemic-stalled economy, let us create value chains that are not of dubious origin.

Standard
China, foreign policy, India, Indian Defence, Strategic Studies

Emperor Xi reinvents Chinese Checkers: Only CPC Wins

The current violent confrontation between India and China in east Ladakh along the Line of Actual Control should come as a surprise to none. This was inevitable. An inexorable chain of events was set in motion in 2017 when New Delhi rejected Beijing’s imperial invitation to the Belt and Road Initiative (BRI) event presided over by President Xi Jinping. A second rude rebuff followed later in the summer of that year when India stood up to China’s efforts to reorganise  Himalayan political geography on the Doklam plateau. India must be prepared to strongly repel the backlash from Beijing on our mountains, in our waters and through our digital platforms.

The Indian commentariat is needlessly agonising over the drivers of the latest Chinese actions. Let us stop theorising and be bold enough to accept that China is just being itself. India has made decisions like independent nations do as an exercise of their sovereignty. To argue otherwise would be tantamount to ignoring the sum total of Beijing’s behaviour during the ‘Made in China’ pandemic: The acceleration of territorial revisionism in the South China Sea; the subjugation of Hong Kong through the stoutly contested national security law; repeated violations of Taiwanese airspace; heightened naval aggression around Japan’s Senkaku Islands; and its most recent encroachment in Nepal.

There is a pattern to this madness; a reason for this seemingly inexplicable restlessness.

In Jiang Zemin’s 2002 report to the 16th Party Congress, the Communist Party of China (CPC) presciently foresaw a 20-year “period of strategic opportunity” for China – linked to its entry into the WTO and America’s misguided interventions in the Middle East that enabled Beijing to play a deft game of Chinese Checkers — and build national power. Emperor Xi, anointed to office for life with a heavenly mandate, is now exercising that power as a counterpoise to the diminishing clout of American influence, and the weakening resolve of a wavering EU and unsure Europe. This is the moment for the Xi Dynasty (like the Mao Gang in another era) to take charge of the wheel and steer China to its centennial objective of world domination by 2049.

The new version of Chinese exceptionalism shaped and directed under Xi’s tutelage is linked to China’s past identity, largely a product of myth-making. It has willed itself into believing that it does not need to work within the matrix of international laws, rules and norms. It has decided that the time when China would “hide and bide” its motivations and capabilities is past.

The new version of Chinese exceptionalism shaped and directed under Xi’s tutelage is linked to China’s past identity, largely a product of myth-making. It has willed itself into believing that it does not need to work within the matrix of international laws, rules and norms

The CPC is now externalising the authoritarian idiosyncrasies it wields at home. Medievalism is the hallmark of Chinese external assessments. This is evident from its insatiable urge to redraw boundaries as an adventure sport and from its estimation of its population (as well as others) as mere fodder. This behaviour is exemplified in China’s ‘hostage diplomacy’ with Canada. Chen Weihua, the European Union bureau chief of the China Daily, offered an unsympathetic glimpse into how China views the issue: “People often fail to note that Meng is worth 10 Kovrig and Spavor, if not more.”

Supplementing this behaviour are two critical tools: an expansionist military and modern methods of engagement. Xi has overseen what is arguably the most wide-ranging modernisation of the People’s Liberation Army: purging it of corrupt or disloyal officials, ensuring its transition to a capable and expeditionary naval force; undertaking crucial administrative and organisational reforms; and reaffirming its absolute loyalty to the CPC and its ideology. In parallel, Xi has presided over China’s long-term efforts to securitise and weaponise global supply chains, flows of technology, finance and data, and institutions of global governance. The all-pervasive Chinese state is but an instrument for the benefit of the CPC.

Time and again India has confronted these realities at 14,000 feet above sea level and soon it may have to defend its blue waters against the rising crimson tides. At one level, Beijing is merely attempting to ‘remind’ India of Asia’s geopolitical hierarchy—that failure to kow-tow to the Middle Kingdom carries consequences. More worryingly, Beijing may have concluded from India’s history that heightened aggression along the LAC will invariably bring India to the negotiating table—that India will grant China greater political concessions, market access or economic bargains as the price for “peace and tranquillity”. The Indian state will have to dispel and disprove this Chinese assumption.

China is also using this moment to send a message to its other neighbours in the East and South China Sea. While a similar escalation in those waters by China carries the risk of drawing in American military response, the attempt to reorganise boundaries  on the Himalayas conveys the same intent. China is demonstrating to the world the limitations of decaying American power without having to actually confront it. In its neo-Confucian assessment an Indian capitulation may signal the final rites of Pax Americana. Beijing may be in for a surprise on both counts, provided countries are able to correctly assess the deeper import of recent Chinese actions.

China is also using this moment to send a message to its other neighbours in the East and South China Sea. While a similar escalation in those waters by China carries the risk of drawing in American military response, the attempt to reorganise boundaries  on the Himalayas conveys the same intent

India must begin with the daunting acknowledgement that the world’s second largest economy is its primary long-term geopolitical and geoeconomic rival. It must also internalise that it will not be able to negotiate its way into any favourable outcomes with China. While nations must talk and unofficial summits like Wuhan and Mamallapuram are important, India must have the singular purpose of investing in and developing robust political, economic, digital and military tools that should, for the short to medium-term, be able to protect territory and rebuff the northern marauders.

For too long, Delhi has been hesitant to impose costs for China’s military adventurism, preferring instead to settle matters diplomatically. In doing so, India has failed to realise that while Xi’s China is irrational, it is not an entirely unpredictable actor. It sees capitulation and a preference for negotiation as a sign of weakness. Delhi must be creative about how it imposes costs for this behaviour—creating unconventional and asymmetric options that help in ‘area denial’ operations in the Himalayas. Accelerating roads and infrastructure is one part, building emplacements is the second. The politics of ‘sharp’ presence (physical) is the only vocabulary understood in those terrains.

For too long, Delhi has been hesitant to impose costs for China’s military adventurism, preferring instead to settle matters diplomatically. In doing so, India has failed to realise that while Xi’s China is irrational, it is not an entirely unpredictable actor

The adage ‘it is the economy stupid’ has never been more relevant. Obsession with building India’s economic heft must override all other considerations. China’s rise was underwritten by its strategic co-option of globalisation. In an era where global flows of data are outstripping trade in goods, and where technology supply chains are being jealously guarded, India’s goal should be to emerge as one of the centres of the topography of digital globalisation. India did well to reject the BRI; it must now ensure that it rejects BRI’s digital avatar as well.`

The banning of Chinese goods may be important signalling but will have little impact on the northern neighbour due to the asymmetry in trade. Zealous protection of India’s digital backbone and networks (5G) and billion people plus digital platforms from Chinese encroachment and intrusion, either openly or by stealth, must be the clear-eyed strategic objective. But India cannot do this alone. And here is where its own period of strategic opportunity begins. In a powerful dissent against the Xi regime, Tsinghua University professor Xu Zhangrun laments the consequences of Beijing’s global assertiveness: “Instead of embracing a [global] community,” he writes, “China is increasingly isolating itself from it.” The challenge for India is to capture this moment – to shed (self) righteous theories of foreign policy in favour of pragmatic, even cynical, partnerships that bolster its economy, provide it with technology, arm its military and support its global ambitions.

That India is still debating Non-Alignment as a choice is a sad reflection of its inability to grasp the reality that stares it in the face, its failure to read the writing on the wall, its myopic disregard for what the future holds. When Non-Alignment was conceived it was an attempt by the leadership of the day to carve out a space for India in a world dominated by two superpowers. Does its propagation allow similar space to India now? Or does a string of strategic partnerships (not of the variety that exists in the dozens) serve India’s interests better?

That India is still debating Non-Alignment as a choice is a sad reflection of its inability to grasp the reality that stares it in the face, its failure to read the writing on the wall, its myopic disregard for what the future holds

Indeed, the time for hiding behind ‘strategic ambiguity’ is over. This stands true for New Delhi’s involvement with international institutions as well. How will India take advantage of its seat in the UN Security Council, its upcoming presidency of the G-20, its chairmanship of the WHO, its position in the Global AI Alliance, or its leadership of the International Solar Alliance? India now increasingly finds a place on the high table of global governance. Question is, can it make the most of these arenas? Can Delhi marshal its diplomatic resources to convince the international community that events in the Himalayas carry global consequences, and that silence now, only emboldens China’s perverse great power ambitions in other geographies and domains? Will New Delhi develop the appetite to call out China on Taiwan, Tibet, Xinjiang and Hong Kong in international forums? And can it incubate a discursive space that will challenge ‘wolf warrior’ propaganda?

Standard
climate change, foreign policy, India, Strategic Studies, Sustainable Development, USA and Canada

US-India Partnership for a Green Future

Climate change is one of the most formidable challenges for this young century. As the World Economic Forum’s The Global Risks Report 2020 makes clear, failure to mitigate and adapt to climate change is the single most impactful and second-most likely risk facing the international community over the next 10 years. How effectively governments, businesses and societies can work together to make a tangible impact on this global challenge will determine the future of our planet.

As shown in Figure 1, the United States (US) and India contribute almost 20 percent of global greenhouse gas (GHG) emissions. Although the two countries differ markedly in both per capita emissions and incomes, India and the US must take concrete action according to their capabilities to develop solutions that can boost economic growth and mitigate the catastrophic consequences of climate change. The best way to achieve these twin goals is to invest in infrastructure for a resilient and low-carbon future; cooperate in key areas that produce relevant knowledge; foster innovation exchange; strengthen technical assistance bilaterally and for others; and catalyse capital investments for energy access, energy efficiecy, and renewable technologies.

Source: 2019 Emissions Gap Report, United Nations Environment Programme

Both the US and India have taken important strides together to advance their strategic partnership in the domain of climate action and policy. However, existing efforts continue to rely mainly on an incremental approach to tackling climate change. Such measures are welcome but insufficient. As the world grapples with the COVID-19 pandemic, we are reminded of the human and economic costs associated with weak international cooperation, delayed action, and the lack of investments in important infrastructure and capabilities. Climate-induced disasters may make the current pandemic look meek, and the world could ignore this risk at its own peril. Thus, it is vital for India and the US to double down on efforts to drive structural change, hurdle institutional barriers, and overcome the inertia inhibiting green growth and development.

In line with these goals, the Observer Research Foundation (ORF) and The Asia Group (TAG) convened a joint roundtable in October 2019 to advance recommendations to strengthen the US–India partnership for a green future with a special focus on climate mitigation, renewable energy, and climate financing. Across these topics, it is clear that both countries face a number of complex and overlapping challenges and opportunities. Even as recent policy efforts have strengthened each country’s capacity to tackle these challenges, this report seeks to identify policy recommendations to support this progress.

Standard
Commentaries, Economic Reforms, economy, Economy and Growth, India

By the global ball and value chain

While MNCs are choosing well-established regional supply chain in East and Southeast Asia for now, India must look to the futu

Of the many ways the post-Covid world will look different, the rapid confluence of trade, technology and national security will rank high among them. The US’s assertion in the 2017 National Security Strategy (NSS) that ‘economic security is national security,’ EU Commission President Ursula von der Leyen’s call this February for ‘tech sovereignty’, and China’s focus on ‘self-reliance’ in strategic technologies portend a new age for geo-economics. All three areas have acquired a sharper edge in the middle of the pandemic.

India must signal to its citizens, businesses and the international community how it plans to respond to this moment being shaped by three developments. First, the weaponisation of economics and trade, a trend prevalent among partners and rivals alike. Second, the measurement of national power will now be based on the ability to control global digital flows comprising technology, information, human capital and finance. Can India be an influential actor?

The decoupling of supply chains due to the sharpening US-China trade war makes this an imperative. GoI seems to have sensed this moment and is attempting to seize it.

And third, old industrial tools like import substitution and market restrictions will need radical repurposing for these times. Can India devise a new mantra compatible with the latest version of globalisation? All of this translates into one layered question: How can India first attract large investments, then grow and develop its technology sector, and finally share and export ‘Digital India’ to other geographies?

This will be based on India’s ability to manufacture for, and service, the growing digital markets, as well as shape the norms, rules, standards and topography of global physical and digital supply chains. The decoupling of supply chains due to the sharpening US-China trade war makes this an imperative. GoI seems to have sensed this moment and is attempting to seize it.

Dislocations in trade and technology are an opportunity to attract global investors. India has done poorly in the past. A September 2019 Nomura report suggested that of the 56 companies relocating out of China, only three have opted for India. Nevertheless, decoupling is a long-term process. While MNCs are choosing well-established regional supply chain in East and Southeast Asia for now, India must look to the future.

Beijing’s economic statecraft underpins its efforts to shape the world in its own image through territorial aggression, debt-trap diplomacy and institutional capture.

In this regard, India’s decision to announce three interrelated schemes on production-linked incentive (PLI) for manufacturing of components and semiconductors, and electronics manufacturing clusters, is important. These replace the earlier ‘merchant export from India’ scheme, and align India’s support for its nascent electronics industry with WTO rules. This new regime for manufacturing and export is designed specifically to draw in large global manufacturers like Apple and Samsung, facilitating the relocation of a part of their production base and downstream suppliers to India.

The ability of just a few global investors to help India integrate into global supply chains (GSCs) should not be underestimated. For example, the market value of the hardware Apple produces in China was nearly $220 billion in FY2019, of which it exported $185 billion, dwarfing India’s total electronics exports of $8.8 billion in the same year. Apple has over 800 production facilities globally, over 300 of which are based in China. Even minor relocations of these value chains to India will be beneficial. The reported relocation of certain processes to India by Apple contractors Wistron and Foxconn, among the largest and most sophisticated Taiwanese electronics manufacturers, will bring with them their own secondary supply chains.

Such opportunities will multiply for India — such as the Britain-proposed ‘D10 alliance’ (a club of 10 democracies) on 5G and emerging technologies — begin to reorganise patterns of trade to favour nations ‘politically trustworthy’. The logic driving disengagement with China on crucial supply chains is obvious. Beijing’s economic statecraft underpins its efforts to shape the world in its own image through territorial aggression, debt-trap diplomacy and institutional capture. Part of India’s response to this reality will be political muscularity along the border and in the oceans. The other, more durable, response will be an obsessive nurturing and growth of the economy.

These ventures are also a litmus test for GoI’s resolve for reform.

This must be dictated by a strategy that enhances India’s ability to integrate into the production and manufacturing of strategic technologies, to secure value from global data flows, and to grow Indian platforms and digital propositions for the world. Growing and new investments from US blue-chip tech giants like Apple and Facebook into India’s manufacturing base and digital platforms augur well.

But these ventures are also a litmus test for GoI’s resolve for reform. In 1982, GoI’s integration of Suzuki into the domestic market for automobiles spawned a new wave of investments into this sector making it one of the world’s most competitive. As the realignment of supply chains accelerates post-Covid-19, investors from around the world will be closely watching the performance of these major global corporations in India before making their own decision.

Standard