India

India’s Troubled Relationship with the Internet

By Ritika Bhasker

India's web censorship policies have drawn unfavorable comparisons to those of China. Source: runran's flickr photostream, used under a creative commons license.

Kapil Sibal’s recent remarks about the Indian government not making any attempts to stifle social media were designed to counter the growing furor, both online and offline, regarding the world’s largest democracy’s latest attempts at censorship. For one, Indian censors have deemed the Oscar-nominated Girl with the Dragon Tattoo “unsuitable” for public release due to director David Fincher’s refusal to cut separate scenes depicting rape, and consensual sexual intercourse. Simultaneously, the exhausting debate that surrounds Salman Rushdie’s Satanic Verses—which is still banned in India—continues with Rushdie’s recent forced cancellation of an appearance at the Jaipur Literature Festival. While the government strenuously denies any attempts to ban Rushdie entering the country, the fact remains that even a video-conference with Rushdie was deemed far too provocative for the protesters who had gathered around the venue. And now, with the looming threat of government prosecution, several Internet companies including Google and Facebook have begun to comply with government requests to remove allegedly provocative and objectionable content from their websites.

Google’s bi-annual transparency report isn’t very flattering of the government, either. Between January and June of 2011, there were 68 government requests for a removal of 358 items, the majority of which were on social networking site, Orkut, and had been identified as being critical of the government. Google’s records state that the requests came from, “… state and local law enforcement agencies to remove YouTube videos that displayed protests against social leaders or used offensive language in reference to religious leaders.” (more…)

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Myanmar @ End of January 2012

By Rajiv Bathia This post was released in the ICRIER Wadhwani Chair  India-U.S. Insight Newsletter here. Re-posted with permission.

Myanmar’s Tatmadaw (military) strategists and pundits who gave the finishing touches, some two years back to their 2003 plan to bring about controlled political change, have ample reasons to celebrate the extent of success achieved so far.

Each arm of the triangle of Myanmar’s politics comprising the Government, NLD and ethnic minorities, has registered progress as compared to the situation prevailing in January 2010. Government-NLD relations have improved considerably, with Suu Kyi and her other party candidates ready to participate in April by-elections as a prelude to entering the Parliament. Following the release in batches of a sizable number of political prisoners, new winds of freedom are blowing in the land. The Government has concluded ceasefire agreements with several insurgent groups, the Karens being the most important of them all NLD and other political forces continue to back national reconciliation, while being conscious that nothing substantial can be achieved in a hurry and the Government remains the indispensable interlocutor and planner of future moves.

Likewise, the country’s relations with the international community look more promising than ever before. An unending series of high-level visits has lent new legitimacy and prestige to President Thein Sein’s government. He now plans an early tour of ASEAN capitals. Foreign travels by Suu Kyi are also likely to begin in the coming months. Sanctions by the US and EU are under review even as the EU has already lifted visa restrictions on top leaders. Purse strings for aid flows are getting loosened. Western corporate leaders are also beginning to consider anew investment prospects. (more…)

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Opportunity in Myanmar for U.S.-India Strategic Coordination

By Amer Latif & Nicholas Lombardo

Bagan sunrise in Myanmar. Sustained political reform in Myanmar represents an opportunity for U.S.-India strategic engagement. Source: druidabruxux's flickr photostream, used under a creative commons license.

With the recent decision by the United States to restore full diplomatic relations with Myanmar, prompted by the country’s nascent political reforms and release of political prisoners, 2012 is set to be a pivotal year for Myanmar’s relations with its neighbors and with the West. In recent months, Myanmar has hosted Thailand’s prime minister, foreign ministers from Indonesia and Japan, and historic visits by U.S. secretary of state Hillary Clinton and British foreign secretary William Hague. Naypyidaw, sent a parliamentary delegation to Delhi in mid-December to study the rules and practices of the Indian parliament, signaling its interest in alternate democratic processes, and India’s army chief, General V.K. Singh, visited Myanmar for bilateral consultations this past week. The gradual changes in Myanmar also provide an opportunity for closer policy collaboration between United States and India in the year ahead.

Until recently, Washington and Delhi have historically taken divergent approaches to relations with Naypyidaw (the capital was Yangon until 2005). While the United States has aimed to isolate Myanmar politically and economically with sanctions directed at the military junta’s human rights abuses and suppression of democracy, India shifted away from a similar stance during the 1990s after becoming wary of losing influence with Myanmar vis-à-vis China. Delhi and Naypyidaw have cooperated since then on areas of mutual strategic interest including infrastructure development, counterterrorism, military-to-military relations, and science and technology training.

Yet, as Indian ambassador Rajiv Bhatia points out in a recent ICRIER publication, the United States has criticized India in the past for its approach to relations with Myanmar’s government. During President Obama’s state visit to India in November 2010, Bhatia notes, the president called out India in a speech to parliament for often avoiding issues of democracy and human rights violations “in international fora.” He urged India to accept expanded international responsibilities commensurate with its role as an emerging power, including the condemnation of violations in Myanmar. (more…)

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Better Late than Never: India-Pakistan Trade Steps in the Right Direction

By Persis Khambatta & Ketan Thakkar

An Indian & a Pakistani soldier conclude a ceremony. Trade normalization may reduce tension between their countries. Source: Joshuahsong's flickr photostream, used under a creative commons license.

Last week, Pakistan haltingly announced its intention to begin normalizing trade relations with India, ultimately granting India MFN status. This means that Pakistan’s tariffs on Indian imports would receive the same treatment as imports from its other trading partners. But what will it mean for India-Pakistan relations going forward?

Given that nothing in the past has worked to decrease tension on either side of the border, taking the heat off of politicians and putting it in the hands of economists and the private sector is a worthy effort.  Current bilateral trade is thought to be between $2 billion and $3 billion, most of it in three sectors—chemicals, base metals, and machinery and electronics—going through unofficial channels, mainly Dubai, costing both economies valuable revenue and increasing the price of goods on both sides of the border. Greater trade liberalization would reduce these costs, and begin to move the needle on trade volume upwards.

With an expected jump in trade, a simultaneous increase in people-to-people and private-sector interaction is logical. Increased commerce should be seen as a starting point for reducing tensions between the two countries and as a step in the right direction to help each country weather global economic forces. The move also seems to indicate that the countries are willing to separate economic issues from their more difficult political issues, which can only help move forward the formal dialogue they resumed this summer. These talks were suspended after the 2008 Mumbai terrorist attacks. (more…)

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Déjà Vu

By Karl F. Inderfurth

Istanbul Conference on Afghanistan

U.S. Deputy Secretary Burns meets with Pakistani Foreign Affairs Minister Khar at the Istanbul Conference on Afghanistan, Nov 1, 2011. Source: U.S. Department of State's flickr photostream, used under a creative commons license.

The formal document issued at last week’s high-level conference in Turkey was entitled the “Istanbul Process on Regional Security and Cooperation for a Secure and Stable Afghanistan.” The participating nations pledged they will be guided by a set of “common principles and commitments,” including “Respect for Afghanistan’s sovereignty, unity and territorial integrity” and “Non-intervention in the internal affairs of other states.”

While commendable, that language also provoked a sense of déjà vu. In July 1999, I led the U.S. delegation to the UN-sponsored “6 Plus 2” conference on Afghanistan, held in Uzbekistan. The formal document issued at the end of that meeting was the “Tashkent Declaration on Fundamental Principles for a Peaceful Settlement of the Conflict in Afghanistan.” It included this pledge: “We reaffirm our firm commitment to the sovereignty, independence, territorial integrity and national unity of Afghanistan.” Participants included Pakistan, Iran, China, the neighboring Central Asian republics, the United States, Russia, and a Taliban representative. Several states promptly disregarded their solemn commitments upon adjournment of the meeting. (more…)

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To Better Protect India, Harden the Indian Periphery

By Amer Latif

Indian Customs at a Nepal - India border crossing. Source: Flickr user Jakol's photostream, used under a creative commons license.

Last month, I had the privilege of testifying before the House Subcommittee on Terrorism, Nonproliferation, and Trade on the subject of US-India Counterterrorism Cooperation.  During the hearing, I made the point that the U.S. and India should closely examine the possibility of working together on strengthening the borders and counterterrorism capacities of India’s neighboring states to prevent them from being exploited by regional terror groups such as Lashkar-e-Tayyaba (LeT).

Without a doubt, terror groups operating from Pakistani territory continue to represent the greatest terrorist threat against India.  However, groups such as the LeT and HUJI have become adept at exploiting weak borders and ungoverned spaces along India’s borders in Nepal, Bangladesh, Sri Lanka, and the Maldives.  For India, it is not only strategically essential to build its domestic counter terror (CT) capabilities, but also to harden its periphery and deny the use of its neighbors‘ territory as facilitation nodes for terrorist group operations such as transit, money laundering, and recruiting.

In Nepal, the country has recently emerged from a brutal civil war in which a fragile government is trying to form a constitution and determine an acceptable way to integrate cadre from the People’s Liberation Army into the Nepalese Army.  While Kathmandu wrestles with these challenges, the LeT has reportedly established operations in Nepal in the Terai where a majority of Nepal’s Muslims reside. (more…)

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Monsoon Effect: U.S. Debt Downgrade and its Impact on India

By Sanjana Basu

Monsoon Sandbags in Mumbai

Now more exposed to the global market, India looks to weather the effects of the U.S. debt downgrade.

World markets continue to be in turmoil since Standard & Poor’s downgrade of the U.S. AAA credit rating on August 5. This time around, India is not as cushioned from a global financial crisis arising out of the U.S. debt debacle, due to its increased exposure to global markets. Moreover, domestic political paralysis, inflationary pressures, market volatility, and falling overseas demand may exacerbate the negative impact of this debt crisis on India. That said there are also several reasons to stay positive: India’s rupee has held up well against the major global currencies, India’s foreign exchange reserves are strong and growing, exports are surging and economic growth is still robust.

Exploring the situation in greater detail, there are three ways the fallout from the S&P decision may hinder India’s economy:

First, Indian equity markets have been shaken up by global uncertainty. Volatility in global markets has affected India’s equity markets, with the main Bombay Stock Exchange Sensex closing at a near 19 month low on August 26. (more…)

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Towards an Innovation Economy: Challenges for the U.S. and India

By Persis Khambatta

President Barack Obama walks with Prime Minister Singh of India at the White House, Nov. 24, 2009.

President Obama talks with Prime Minister Singh of India. Innovation is increasingly viewed as a key area for U.S.-India cooperation.

Recently, Prime Minister Singh of India declared the present decade to be the ‘Decade of Innovation’ and announced the creation of a National Innovation Council, which will promote innovation centers nationwide. When laying out, “A Strategy for American Innovation,” President Obama said: “The United States led the world’s economies in the 20th century because we led the world in innovation. Today, the competition is keener; the challenge is tougher; and that is why innovation is more important than ever.” Clearly, our leaders get the critical importance of innovation—the application of new inventions and technologies to solve old problems, address new challenges and generate economic growth.  What’s needed now is action from legislators on both sides to press ahead and enable innovation.  New drug discoveries, clean energy, energy efficient buildings, greater access to electricity and lower-cost healthcare, cold-chain technologies, expanded access to broadband and joint experiments in space can all be many steps closer to reality if policies are put in place to enhance bilateral cooperation between the U.S. and India.

Three things come to mind as a place to start: (more…)

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Indian Investment in the U.S. and the Road to the BIT

By Elizabeth Foster

Indian Minister of Commerce Anand Sharma, who recently agreed with U.S. Trade Representative Ron Kirk to fast-track negotiations on a Bilateral Investment Treaty, or BIT.

Indian Minister of Commerce Anand Sharma, who recently agreed with U.S. Trade Representative Ron Kirk to fast-track negotiations on a Bilateral Investment Treaty, or BIT.

Secretary Clinton’s visit to India on July 19 and President Obama’s own visit in November last year demonstrated that the U.S.-India relationship continues to be a priority for the Obama Administration. This relationship is also viewed with growing importance on Capitol Hill, where the Senate India Caucus has grown to 38 members since its founding in 2004. There is, however, a lingering perception among some Americans that India is partially responsible for the outsourcing of American jobs. As long as high unemployment persists, and job creation remains the foremost concern of a majority of Americans, the perception of the relationship as a one-way street could present an impediment to initiatives that would foster greater Indian investment in the American economy. To remedy this, American officials must emphasize the tangible economic benefits Americans derive from Indian investment.

Jose Fernandez, Assistant Secretary of State for Economic, Energy, and Business Affairs has said that “foreign investment will be one of the most important drivers for the creation of new jobs” in the U.S. economy. Indian investment exemplifies this trend. Indian companies have saved over 40,000 American jobs by acquiring failing American companies, and altogether Indian companies employ over 60,000 Americans across the U.S according to a 2010 FICCI study (PDF). (more…)

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India-Bangladesh Relations: Sustaining the Momentum

By Sanjana Basu

In last week’s U.S.-India Strategic dialogue in Chennai, Secretary Clinton urged India to step up its leadership role in the region. She specifically stated that India “has a great commitment to improving relations with Bangladesh, and that is important because regional solutions will be necessary on energy shortages, water-sharing, and the fight against terrorists.”

Secretary Clinton greets attendees at her address at the Anna Centenary Library in Chennai.

Secretary Clinton greets attendees at her address at the Anna Centenary Library in Chennai.

This statement could not have come at a more opportune time. For the first time since 1975, India and Bangladesh have embraced a historic opportunity to build a lasting relationship. A sustained diplomatic investment in a robust bilateral relationship will produce positive results for both countries. The effects of better bilateral relations can only strengthen India’s “Look East” policy. But, as a recent essay in Outlook India put it: “Merely looking east won’t do. India now must hold Bangladesh’s gaze.”

During Minister S.M. Krishna’s Dhaka visit in July, Bangladesh and India signed two trade-related pacts. These included a Bilateral Agreement on Promotion and Protection of Investments (BIPPA) which came into effect on July 9, and a Standard Operating Procedure to facilitate transit from neighboring Bhutan. Dhaka and New Delhi also agreed to enhance security cooperation, acknowledged steps toward signing an interim deal on the shared waters of River Teesta and River Feni, and began talks on a framework agreement for the demarcation of the last 6.5 kilometers of their land border. (more…)

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