Tag Archives: India

Power Play

One of the worst consequences of America’s long Presidential election is that the issue of Clean and Renewable Energy Technologies became terribly politicized. An area where America’s two largest political parties should have naturally found common ground to work together, instead became frightfully polarizing owing to a combination of mutual vote-bank politics and bungling. Regardless of who wins next week’s contest, public policy initiatives in cleantech will suffer in the short and medium term from these debacles.

To make matters worse, a wave of high profile failures particularly in the solar and battery technology sector are contributing towards a bearish market sentiment to domestic cleantech investing.

However global trends emphatically indicate an increasing desire particularly in the developing world to move away from hydrocarbon dependence, leaving the door open for American companies with their strong advantage in high-tech R&D to capitalize despite domestic sluggishness.

India is already becoming a hub for cleantech innovation with both extensive economic linkages to both the United States and emerging markets in Asia. Despite its sometimes  glacial bureaucracy, India is coming out all barrels firing on massive development of solar grids, deployment of electric vehicles, and sweeping away its archaic power infrastructure.

Last month India’s government approved a $4B plan to spur both electric vehicle production over the next seven years with a target of putting over six million all electric vehicles on the road. This is in concert with over 3 gigawatts of solar power expected to be installed in India over the next four years. Much of this is expected to come from American companies such as First Solar.

Simply put, all American solar and renewable energy companies, NEED an India strategy. Moreover the American legislature needs to be supportive of companies doing business in India. In this current economic environment the jobs and export income from healthy cross border trade is too precious to be sacrificed for political expediency.

Pakistan’s Nukes: How Much is Enough?

The time has come to question why the country needs tactical nuclear forces

Marking the anniversary of Pakistan’s 1998 nuclear tests, Nawaz Sharif on Monday boasted of the key role he played as prime minister in bringing about this achievement.  Sharif, who now heads the Pakistan Muslim League-Nawaz, the main opposition party, asserted that his actions have provided an infrangible guarantee of the country’s security vis-à-vis Indian military might, thereby resolving the fundamental vulnerability that had plagued Pakistan since its tumultuous founding.  “India could have attacked Pakistan many times,” he stated, “but due to Pakistan being an atomic power, India could not gather the courage to do so.”

The impact of South Asia’s nuclearization on regional security is a subject of vigorous scholarly debate.  But Sharif’s words raise a basic policy issue: If he truly believes that the country’s defenses are now impregnable, why doesn’t he speak out against the on-going expansion of Pakistan’s nuclear arsenal that is rapidly leading Islamabad away from the minimum deterrence posture it declared following the 1998 tests?  After all, if he really means what he said, this expansion is not only militarily unnecessary but also diverts precious economic resources away from more pressing national priorities.

Worries have arisen that South Asia is on the verge of a nuclear arms race that, according to U.S. intelligence experts, “has begun to take on the pace and diversity, although not the size, of U.S.-Soviet nuclear competition during the Cold War.”  Islamabad in particular has added to its armory in dramatic fashion over the past few years and is reportedly on a path to soon eclipse the United Kingdom as the world’s fifth largest nuclear weapons power and to become the fourth largest by the end of the decade, overtaking France.

A 2008 U.S. intelligence assessment noted that “despite pending economic catastrophe, Pakistan is producing nuclear weapons at a faster rate than any other country in the world.”  It is increasing its capacity to generate plutonium and just last week reports emerged about the development of a submarine-launched nuclear cruise missile.  And over the past month it has conducted a spree of missile test-launches, including an air-launched cruise missile and a ballistic missile with a 60-kilometer range that can deliver a small, low-yield nuclear warhead designed for battlefield use.  According to media reports, the military establishment is placing an emphasis on short-range nuclear forces in order to achieve “strategic parity” with India.

So what is driving all this effort?  Despite mounting internal security challenges – including a spectacular terrorist assault upon the Pakistani army’s general headquarters in Rawalpindi in October 2009 – the armed forces continue to be preoccupied, almost to an excessive extent, with the conventional military balance vis-à-vis India.  General Ashfaq Parvez Kayani, the powerful army chief, regularly cites the risks posed by the Indian army’s “Cold Start” doctrine – which emphasizes the threat of large-scale but calibrated punitive actions in order to deter Pakistani adventurism.

But Kayani’s alarm is exaggerated, as Cold Start is still more of a concept than an operational reality.  Indeed, the present government of Prime Minister Manmohan Singh seems to have disowned it altogether.  Moreover, the Indian army’s condition does not inspire much confidence in its ability to carry out the doctrine even of it were assured of political support.  Military leaders reportedly told Mr. Singh in the days following the November 2008 terrorist strikes in Mumbai that the army was utterly ill prepared to go to war.  A 2009 internal assessment that the army submitted to parliament concluded that it will take some two decades for the army to gain full combat preparedness.  And in a February 2010 cable to the State Department, Timothy Roemer, the then-U.S. ambassador in New Delhi, assessed that the Cold Start strategy “may never be put to use on a battlefield because of substantial and serious resource constraints.”  More recent revelations have further underscored the army’s woeful state.

All military establishments tend to inflate the capabilities of their enemies, and the one in Rawalpindi is no exception.  But something more fundamental is at work in driving Pakistan’s nuclear buildup: the dysfunctional state of civil-military relations.  The army’s fixation on the Indian threat is rooted in large measure in a desire to perpetuate its traditional praetorian role.  An important factor, too, is the cloistered nature of the nuclear weapons complex, which not only lacks any semblance of civilian oversight but also impedes interaction with the broader military establishment.  With decision-making compartmentalized within a small coterie of officials, searching examination of the political and military utility of nuclear weapons as well as the development of sound strategies for their employment is severely constrained.

One issue that demands more rigorous scrutiny is why Pakistan is moving toward a Cold War-style strategy by acquiring a capacity to execute battlefield nuclear options against invading Indian forces.  Tactical nuclear forces might have made sense when the United States and the Soviet Union were attempting to extend their deterrence shields thousands of miles away from their national homelands.  But Pakistan needs only to deter its immediate neighbor, whose two largest population centers – Mumbai and Delhi – are within easy reach of existing Pakistani nuclear weapons.  Moreover, as I have detailed elsewhere, a minimal deterrence posture seems to have worked just fine in safeguarding Pakistani territory from Indian attack during the serious military crises in 1999 and 2001-02.

The good news is that some Pakistani leaders are starting to ask the right sort of questions.  Nawaz Sharif in the past has called for a reduction in the heavy share of the budget consumed by the military, and General Kayani recently acknowledged the need for greater balance in defense and development spending.  The current government of President Asif Ali Zardari has also managed to claw back some authority in the national security arena that previously was the sole province of the men in khaki.

Parliamentary elections are due in early 2013 and perhaps will take place as soon as this fall.  Once a new government is in place in Islamabad, it would do well to ask tough questions about the direction and scope of the nuclear weapons program.  Maybe then Pakistan can find the resources to address dire domestic needs like an increasingly wobbly fiscal situation, a chronic electrical power crisis that some experts suggest is more of a threat to stability than is terrorism, or a woefully underfunded education system that features the lowest enrollment rates in South Asia.

This commentary was originally posted on Chanakya’s Notebook.  I invite you to follow me on Twitter.

Be a Good Boy, Study Hard, and Start a Business

“My son got an A-minus in mathematics! He has brought shame on the family!”

Parody it may be, but sentiments such as this strike so close to the Indian bone that countless comedy programs have at some point featured a cartoonish parent scolding their child for delivering even a modicum less than perfection.  Indians in India, for all their other virtues and talents, have historically not been highly forgiving of failure.  While this attitude can be a fantastic foundation for a disciplined work ethic, it is not necessarily the optimal trait for building a robust technology startup ecosystem in India.  That requires a certain fearlessness and assiduousness in equal measure.  However, instilling the entrepreneurial ‘can-do’ attitude is one of America’s great virtues and gifts to the world.

Sadly, Administration rhetoric regarding India’s IT services industry has been unfriendly and contrarian to this spirit to say the least.  Yet it is not for nothing that most of America’s technology conglomerates— Intel, Microsoft, Google, Cisco, Motorola, and others—not only have a presence in India but conduct high-tech R&D there as well.  Given the size of India’s aggregate population and its pool of engineering talent, developing a startup biome as a next step would represent a major opportunity for both for Indian business and American venture capital and high-technology firms.

Successful and highly lucrative technologies such as cloud computing were developed by startups who often served as flexible technology incubators by larger more established companies.  These firms depended on networks of business accelerators and venture capital firms to support their technological development and business growth.  As we have witnessed in Silicon Valley, those initial investments of a few hundred thousand dollars often have come to be worth hundreds of millions and translated into high-paying jobs for college educated professionals.

Historically it has been difficult for Indian startups to get their ideas funded domestically, and even far more difficult to bootstrap companies through family and friends.  Capital flows from both financial and strategic American investors could well fill the void and be the impetus to encourage startups in India.  To be successful, this requires greater recognition by public policy makers of the mutual benefits of increasing trade and cross-border investment.  The Tata Group alone has over $3 billion in FDI in the United States and employs more than 19,000 workers in this country. That is as much a face of India’s IT services industry as BPO centers in Bangalore.

If the point was unclear, I’m sure someone is developing an app for this.

India must Upgrade its China Strategy from Dissuasion to Deterrence

It is in India’s interest to focus its diplomatic efforts to expedite the delineation of the Line of Actual Control (LAC) on the Indo-Tibetan border and urge China to resolve the territorial and boundary dispute in an early time frame. In conventional weapons and present force levels, the Indian Army has adequate combat capability to defend the border, but not sufficient to deter war as it lacks a potent offensive operations capability. The gap between India and China in overall military potential, particularly the gap in strategic weapons, is increasing rapidly in China’s favour. China is also actively engaged in upgrading the military infrastructure in Tibet in substantive terms. The all-weather railway line to Lhasa, being extended further to Shigatse and later to Kathmandu, will enable China to build up rapidly for a future conflict. New roads and military airfields have also been built. Military camps are coming up closer to the border. China has inducted a large number of SRBMs into Tibet and can rapidly induct another 500 to 600 SRBMs for a future conflict by moving them from the coastline opposite Taiwan. With improvements in military infrastructure, China’s capability of building up and sustaining forces in Tibet has gone up to 30 to 35 divisions. The PLA’s rapid reaction divisions can also significantly enhance its combat potential over a short period of time. As China’s military power in Tibet grows further, it will be even less inclined to accept Indian perceptions of the LAC and the boundary.

Another factor of concern to India is the emplacement of Chinese nuclear-tipped missiles in Tibet, reportedly first brought to the Tibetan plateau in 1971. While these missiles may have been targeted against the Soviet Union till recently, the present Russia-China rapprochement would make such targeting illogical. The mere presence of Chinese nuclear-tipped missiles in Tibet poses a direct and most serious threat to India as these missiles (DF-2, DF-3, DF-4 and, possibly, DF-5) are capable of reaching all Indian cities. Beijing has been very effective in hiding details of the number of missiles actually deployed and India is only now acquiring the technological means to track and pinpoint the exact locations of these missiles or any others in the Lanzhou-Chengdu region and at the Datong and Kunming missile bases which may have the potential to reach and target Indian cities. This shortcoming needs to be overcome as early as possible through an Indian military intelligence satellite and by humint means.

India, therefore, needs to build up adequate military capabilities to deter the threat from China. In the short-term, the requirement is to ensure that there are no violations of the LAC through effective border management while maintaining a robust dissuasive conventional posture. India must step up its diplomatic efforts to seek early resolution of the territorial dispute, particularly the immediate delineation of the LAC physically on ground and map. Efforts to develop military infrastructure in the border areas for the speedy induction of forces need to be stepped up. India must maintain a strong capability to defend island territories in the Bay of Bengal and to safeguard national interests in the Exclusive Economic Zone. Diplomatic efforts to increase India’s influence in the CARs, Myanmar, Nepal, Bangladesh and with the ASEAN countries should be pursued vigorously.

The long-term requirement is to match China’s strategic challenge in the region and develop a viable military deterrence capability against the use of nuclear and missile weapons systems. Threats posed by nuclear-tipped ballistic missiles cannot be countered by the deployment of land forces and conventional air power alone. Nuclear weapons are best deterred by nuclear weapons and, as a logical corollary, only missiles can deter missiles. Hence, India must develop, test and operationally induct the Agni-III, Agni-IV and Agni-V IRBMs and raise two mountain Strike Corps so as to be able to upgrade its present strategic posture of ‘dissuasion’ to one of credible ‘deterrence’ against China.

The Prospects Look Good for Bill to Eliminate Per Country Limit

Legislation that will have a positive direct impact on Indian nationals passed the House of Representatives on Tuesday, November 29. The vote was an overwhelming 389 to 15.

HR 3012, “The Fairness for High-Skilled Immigrants Act,” would eliminate the per country limit for employment-based immigrants in a transition over a four-year period. The primary effect of the bill would be to shorten the wait times substantially for highly educated foreign nationals from India and China. The part of the Immigration and Nationality Act that limits nationals of any one country to 7 percent of the total employment-based immigrants in a year will be removed the law books. In addition, by raising the family per country limit from 7 percent to 15 percent it would also help long-waiting family-sponsored immigrants from Mexico and the Philippines.

The House Floor

Speaking in favor of the bill on the House floor, Rep. Jason Chaffetz (R-UT), the chief sponsor of the bill, emphasized that the legislation provided no new green cards. He said the measure was necessary to have the law match the way employers in America hire – based on merit, not country of origin.

House Judiciary Committee Chairman Lamar Smith (R-TX) also spoke in favor of the bill. He emphasized the long wait times, pointing out that some nationals from India in the employment-based third preference (EB-3) had been waiting since 2002 for green cards. In support of the bill, Rep. Smith asked: “Why should American employers who seek green cards for skilled foreign workers have to wait longer just because the workers are from India or China?”

On the Democratic side, Representatives Steve Cohen of Tennessee and Jim Moran of Virginia spoke in favor of the bill. (No one spoke against the bill.) Rep. Moran talked about the importance of skilled immigration generally to jobs and business development in Northern Virginia.

Prospects in the Senate

The passage of the bill in the House gave bill supporters new information about the chances for the legislation to move in the Senate. The New York Times reported, “The bill seemed likely to pass easily in the Senate, said Senator Charles E. Schumer of New York, a leading Democrat on immigration.”

Explaining the implications of the bill, The New York Times noted, “By far, the main beneficiaries will be highly skilled immigrants from India and China, including many with master’s degrees and doctorates in science and engineering. Because they come from populous countries that send many people to work here who have advanced science and technology skills, immigrants from those two nations had been forced by the country limits into lines that were many years long and growing much longer.”

An Associated Press article also quoted Senator Schumer, the chair of subcommittee that handles immigration in the Senate Judiciary Committee, who is favorably disposed toward the bill: “Sen. Charles Schumer, D-N.Y., who heads the Senate Judiciary panel on immigration, said he planned to move the bill as quickly as possible in the Senate, ‘where we expect it to find overwhelming support.’ He said the legislation would ‘remove outdated constraints that prevent us from attracting the kind of innovators who can create job growth in America.’”

An analysis by the National Foundation for American Policy concluded that passing H.R. 3012 would reduce the wait for a newly sponsored foreign national from India in the employment-based third preference (EB-3) to 12 years, far less than the potential wait of several decades under current law. In the employment-based second preference (EB-2), the wait would drop to two or three years, rather than the current 6 years or more for a newly sponsored Indian-born scientist, researcher or engineer sponsored in that category.