Tag Archives: trade relations

Indian-Americans and U.S. Politics Blog

Pravasi Bharatiya Divas begins in New Delhi on Jan 7

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The 9th Pravasi Bharatiya Divas (PDB), an annual meet of non-resident Indians organized by the Ministry of Overseas Indian Affairs, will begin tomorrow at the Vigyan Bhavan in New Delhi, India. The three day event will be inaugurated by Prime Minister, Manmohan Singh aPBDnd includes seminars, round-table conferences, interaction with Union Ministers, cultural programs and Conferment of Pravasi Bharatiya Samman Awards. Around 1500 delegations from over 50 countries are expected to participate in the event.

The Pravasi Bharatiya Divas has grown to be one of the largest meeting points for the Indian Diaspora across continents.  PBD gives non-resident Indians an opportunity to engage, interact and build relationships with members of the Diaspora across the globe, as well as the country of their forefathers. The PBD is not just a meet and greet event, but serious deliberations on issues of concern to the community, problems facing the country, business and other opportunities presented by India etc. are also discussed alongside a plethora of cultural events. Earlier PBDs have resulted in the formulation of various schemes and plans such as the Overseas Citizenship of India scheme, establishment of Overseas Indian Facilitation Centre, conceptualization of Pravasi Bharatiya Kendra, formation of Prime Minister’s Global Advisory Council of people of Indian Origin, setting up of the India Development Foundation, and the launching of the Global Indian Network of Knowledge (Global-INK).

This year the Pravasi Bharatiya Divas would focus on the North-Eastern States of India, healthcare, education and increasing involvement of the younger generation of the Diaspora. As such, the Ministry of Development of the North Eastern Region has partnered with PBD. The Chief Ministers of the states in the region will discuss the investment opportunities in their states in a special plenary session. The relatively neglected north-eastern region is one of the most scenic and untouched parts of the country, and provides numerous opportunities for business and tourism. However, it is has been reeling under the menace of insurgents and has been unable to develop at par with the rest of the country.

Among other sessions will be the annual C.K. Prahalad memorial lecture to be delivered by Gautam Ahuja. The Chairman of Corporate Strategy and International Business group at University of Michigan’s School of Business will talk about inclusive growth. A plenary session with a group of Union Ministers will discuss business opportunities in India, while dedicated seminars on healthcare and education opportunities in India will also be conducted. The Pravasi Bharatiya Samman awards will be presented by the President of India to distinguished non-resident Indians.

Defence And Strategic Affairs Blog

How long will India play to maintain status quo?

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It was like just another formality in the Sino-Indian relationship being fulfilled, as the Chinese Prime Minister Wen Jiabao concluded his “significant” “trust-building” India visit on Friday. The Chinese Premier brought along a huge entourage of 400 business leaders to India, signaling the only purpose of his visit – more business. India and China signed six business deals, announced plans to increase business to $100 billion by 2015 and established a Strategic Economic Dialogue. PM Wen Jiabao also announced that Indian and Chinese companies would be signing deals worth $16 billion. But at the end of three day tour, the fact remains that there is a huge trade deficit and imbalance between India and China, and no concrete announcements to reduce or eliminate it were made.

The trade between the two countries has almost tripled since 2005 and today stands at $60 billion. But India’s trade deficit with China is about $19 billion this year alone. This is explained by the two fold increase in Indian exports to China between 2005 and 2010($11.6 billion) and three-fold increase in Chinese exports to India ($30.8 billion). India has been largely exporting raw materials to China, and importing finished goods made mostly from the same raw materials. This pattern of trade, even if it results in large numbers for cumulative trade, is not good for Indian interests and business. Not to mention the large dumping of Chinese goods into India that damages local manufacturing, and against which India has launched various complaints with the WTO. Further, Chinese FDIs in India are only $52 million, whereas since 2005 Indian FDIs into China have been $879 million.

In the backdrop of this trade imbalance it would have been expected that the Indian side would demand and negotiate constructive mechanisms to reduce the trade deficit and balance out the balance sheet. However, the joint statement by the two leaders only made ambiguous references to working towards improving trade. Neither were there any signs of China conceding ground or supporting Indian in case of some of the other contentious issues such as the stapled visa for Kashmiri residents, terrorism emanating from Pakistan, China-Pak nuclear deal and dam on the Brahmaputra. Even during the Foreign Secretary’s Press Briefing her answers to these questions were full of diplomatic jargon and ambiguity, leaving one to conclude that India could not squeeze out even one favorable comment on contentious issues from China.

Wen Jaibao’s visit was symbolic of the ‘cordial’ imbalanced relationship between the two countries. The Indian government’s reactions and remarks showed more a willingness and desire on its part to not antagonize the Chinese and maintain status quo, rather than stand up for its rightful claims and risk retaliatory actions by the Chinese in international forums or along the borders. It is unfortunate that in spite of the much touted personal rapport between Manmohan Singh and Wen Jiabao, home-ground benefit, India’s growing clout in the world, and two recent successful visits by President Obama and President Sarkozy, India could not stand up for its demands and make its  presence felt during this Chinese visit. It is time, after 60 years of being together, that India steps up its game, and works towards not improving relations, but developing a mature relationship with China where it does not play second fiddle and pussyfoot around it.

(This post originally appeared at the FPA’s India blog.)

Defence And Strategic Affairs Blog

India China Economic Union – An open letter

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Dear PM Wen Jiabao and PM Manmohan Singh,

Only a sixth sense of mutuality and common sense can help China-India relations today. While the realities are being resolved and negotiated, we simultaneously and urgently need a powerful new idea of joint interest to both countries.

Economic entanglements are the surest guarantor of peace and development. India and China must start exploratory discussions of any variation of an economic union between the two countries. Working towards such a framework will ensure peace and economic development between both countries.

* The reality of the India China Economic Union may happen in 50 years or 100 years, but by progressing towards such an objective both countries will accelerate friendship and socio-economic development of one-third of global population.
* It is but obvious that in 20-30 years or by 50-100 years the relationship and economics will be so different that we cannot even imagine today. But one thing will be sure – the two countries and our people will be far deeply integrated and inter-connected in their economies, cultural understanding, people-to-people linkages, and global challenges.
* Sirs, you can see the future – kindly seize the moment and take a bold step.
* In advance of this summit in Delhi, we had been researching and modeling various thoughts to protect and advance the national interest of each country, as well to make a generational change towards friendship, peace, socio-economic and cultural relations between both countries.
* Our research shows that the first thing both our countries need today, is a sixth sense. The current and historic issues are too deep and will take time to resolve. While these issues are being resolved, it is now time to introduce, in parallel, a sixth sense in our relationship and to create a vision for an India China Economic Union.
* Other research, including a small web-based sample, shows that the topmost problem in relations between China and India is of mutual images, and mutual trust. Apart from the government in each country, this is the top concern in the publics too.
* Therefore the top priority of our leaderships today must be to find a solution to these two problems. By promoting this sixth sense of the imminence of an economic union, our leaders will guide the policy and publics of both countries towards peace, people-to-people relationships, and socio-economic development.
* Such a vision will lay the foundations for harmonious growth for hundreds of years ahead. Both countries should set up a joint working group and think-tank, funded with US$ 10 million by each country, as first step. This economic union may be modeled after the example of European Union or any variation, and the working group should present reports of the progress on sidelines of annual PM level meetings.

Premier Wen Jiabao is visiting India along with a business delegation of over 300 businessmen. Geopolitics, business and people-to-people linkages are all on the agenda. In all these meetings and discussions, the key underlying dynamic will be mutual images and trust.

Mutual Imagery and Trust

To improve mutual imagery and trust, both countries need to take several urgent steps. Each country should take responsibility to take 3 specific steps to build trust and image. These steps should be reflected in the joint communiqué which shall be issued during the visit.

* India has already announced introduction of Mandarin as an optional subject in schools. China must similarly introduce Hindi language in its school system. Also, China must ramp up English speaking skills among its citizens. Lack of English is proving an obstacle to better understanding and business with China.
* Both countries must promote people-to-people linkages. Through tourism, even a weekly flight with free seats; through cultural exchanges, even promoting film shoots in each other; and through youth and business exchange programs. The expatriate communities in each country must be guided by embassies to engage more with the host society.
* India must encourage its communist parties to act as a bridge in building relations with China. U.S.-India relations improved in large part due to a unique presence of an over 3 million strong Indian-American community. Similarly, with China, the communists of India can play a unique role in building image and trust between both countries.
* Any delegation which travels to the other country must be provided a three hour orientation and cross-cultural understanding of the country they will visit. The embassies should provide this service to their host country government. The chambers of business must provide this service to the business delegations they take.
* More Chinese students must be given generous scholarships to come and study journalism and MBA in India, and similarly Chinese government must attract Indian students to China. These future businessmen and media leaders will help to promote understanding and economic activity between the two countries and many may settle down in host country.

India China Economic Union

Improvement in mutual images and trust shall further pave the way for reducing fears and concerns of each country, and for creation of the India China Economic Union. India fears China’s “string of pearls” strategy, and China fears India is ganging up with the U.S. to restrain its growth. China is troubled by India’s stance on Tibet and Taiwan, and India is concerned with China’s behavior on its Western and Eastern borders.

Both countries also need to take fresh confidence building measures. China must vacate the portion of Kashmir which Pakistan ceded to it. India must clarify and settle the Tibet and Taiwan issue with China.

Thus a sixth sense of Indo-China relations will need a troika approach – all in parallel:

* Improvement of mutual imagery and trust,
* Fresh confidence building measures, and,
* A vision for creating the India China Economic Union.

Much of these may not happen in our lifetimes, or even for several generations. But some such framework will be a reality 100-200 years from today. By taking this visionary step, Sirs, you will leave an imprint on history for ever.

Sincerely,

Robinder Sachdev