India Indonesia Relations

India Indonesia Relation Recent PM Visit

·         Both Dr. Singh and Mr. Yudhoyono are currently in the final lap of their second terms in power.

·         India and Indonesia’s youthful demographic profile and expanding middle-class consumer base have led many an excitable investment banker to mark them as the economies to watch.

·         India is the world’s largest democracy and Indonesia its third largest one.

·         The two countries are also home to the largest (Indonesia) and third largest (India) number of Muslims in the world. Both are members of important multilateral forums like the G-20 and East Asia Summit.

·         India and Indonesia are maritime neighbours. Given that Indonesia rules the major waterways between the Indian and Pacific Oceans—- waters through which more than half of all international maritime trade passes — the strategic significance of the relationship looms large. In fact India’s 2009 maritime strategy document listed the Sunda and Lombok straits, both under Indonesian control, as major choke points with complicating potential for Indian interests. Cooperation with Indonesia is a prerequisite to enable the Indian Navy’s operations in these waters. Joint coastal monitoring has been ongoing since 2010, but there is a need to step up this cooperation, including joint maritime exercises and training.

·         The relationship with Indonesia has also assumed greater importance in the context of China’s rise and expanding regional reach. Both India and Indonesia have the potential to act as balancing powers and can aid each other in their mutual goals of engaging China to benefit from its economic might, while ensuring that Beijing’s power is not untrammelled. In recent months Indonesia has been playing the mediator’s role within Asean to find a solution to China’s maritime disputes with countries like Vietnam and the Philippines.

·         Counter-terrorism is another field where Indonesia and India should deepen their cooperation. They have both suffered from major terrorist attacks by radical Islamist groups in the last decade.

·         Economic relations between the two countries, another focus of Dr. Singh’s visit, are not insubstantial. Two-way trade was worth around $21.3 billion in 2012.

Forty-six per cent of India’s trade with Indonesia consists of palm oil imports. Indonesia is also India’s biggest supplier of coal, with some 76 per cent of Indian coal imports originating there. While there is some Indian investment in Indonesia, focused on automotives (Tata Motors has just launched three models of cars), textiles, steel and banking, talks on a comprehensive economic cooperation agreement (CECA) have yet to take off.

·         Indonesia has a large Indian diaspora, many of whom play an influential role in the Indonesian economy. Yet, India has failed to exploit these connections. The lack of direct flights connecting India and Indonesia is a dampener on business as well as people-to-people exchanges.

·         In contrast, the Chinese diaspora is an active economic bridge between mainland China and Indonesia. Indonesia’s trade with China stands tellingly at $66 billion.

Joint Statement

The Leaders agreed to adopt a five-pronged initiative for strengthening the Strategic Partnership

1.      Strategic Engagement

·         hold Annual  Summits, including on the margins of multi lateral  events

·         Joint Working Groups  on Education, Tourism, Coal , Oil  and Gas, Agriculture, Counter Terrorism and Science & Technology

·         regular exchange of delegations between the two Parliaments have helped in sharing views, experiences and best practices

·         acknowledged  the  increasing  intensity of  collaboration  between  the  Indian Space Research Organization (ISRO) and the National  Institute of Aeronautics and Space of Indonesia (LAPAN)

·         Cooperation regarding the Utilization of Nuclear Energy for Peaceful  Purposes

2.      Defence and Security Cooperation

·         commencement of the Defence Ministers’ Dialogue  and  regular  convening  of  the  Joint Defence Cooperation Committee (JDCC)

·         closer  collaboration  on  capacity building  and  exchange of best practices in  the field of maritime security and hold joint exercises

·         enhance bi lateral cooperation  in  combating  terrorism,  terrorist financing, money laundering, arms smuggling, trafficking in human beings, and cyber crime

3.      Comprehensive Economic Partnership

·         expressed  confidence in achieving  the bilateral  trade  target of US $25 billion by 2015

·         launch of negotiations on an India-Indonesia Comprehensive Economic Cooperation Agreement (CECA) that would build upon the ASEAN-India FTA by bringing more depth and coverage

·         cooperate in promotion of energy efficiency technologies, new and renewable energy technologies, with the shared aspiration to ensure energy security

·         highlighted the importance of food security for the peoples of both countries and agreed to work together and with other partners towards concrete actions in food security mechanisms, research and development and in international  bodies

·         direct flight connectivity for trade and tourism

4.      Cultural and People-to-People Links

·         build upon the close historical  and cultural  links through promotion of art, literature, music and dance  under the Cultural  Exchange Programme

·         work on the  institutionalization  of  university-to-university  linkages  to  facilitate  faculty  exchange,  teachers training, double-degree programmes

5.      Cooperation in Responding to Common Challenges

·         Realizing that the international  community faced common challenges of increasing the momentum of global  economic recovery, both sides agreed that as key members of the international  community, India and Indonesia must work together effectively in fora like the UN, UNFCC, WMO, WTO and the G-20 to help achieve consensus on common and collective approaches to these important issues

·         as two large countries straddling the Indian Ocean, have a  high  stake  in  ensuring  the  effectiveness  of  Indian  Ocean  Rim  Association  for  Regional   Cooperation (IORARC)  in  promoting  regional   cooperation  in  the  fields  of  Mari time  Safety  &  Security,  Trade  and Investment  Facilitation

MOU signed

1        Health cooperation.

2        Combating Corruption.

3        Combating Illicit Trafficking in Narcotics, Drugs, Psychotropic Substances and their Precursors.

4        Cooperation in the field of Disaster Management.

5        Public Administration

6        World Affair

     

     written by - atul yadav

Globalization (impacts on Indian society)

Definition:

Globalisation is an inevitable phenomenon in human history which brings the world closer through the exchange of goods and products, services, information, knowledge and culture.

Globalisation has its own pros as well as cons. But it has affected more number of populations than the benefits it has given to fraction of the society all over the world. As per the critics the birth of Globalisation did happen to check for new markets for the finished goods and services of the developed rich countries.

Over the last two decades, overseas development assistance from the rich to poor countries has totalled $50-80 billion per year. In the same period, every year, $500-800 billion of illegal funds have been sent from the poor to rich countries. That is, for every one dollar of aid money over the table, the West gets back $10 under the table and, for good measure, lectures the rest on corruption.

The rapid growth of global markets has not seen the parallel development of social and economic institutions to ensure balanced, inclusive and sustainable growth.

Positive impacts of Globalisation:

1.      Global village: The world became the global village where the people in various parts of the world exchangethe ideas, knowledge, goods and services, information, culture.

2.      Technology has been and is continuously spreading across the urban centers and in some extent to rural parts of India as well.

3.      Indian Business:

a.       Just-in-time and other more efficient techniques of inventory control

b.      Improvement in corporate governance practices

c.       Customer relationship management practices.

d.      Inflow of foreign funds

e.       Healthy competition with foreign products

f.       A growing market for high quality and low price product

g.      High growth rate is showing economic prosperity in India

4.      Generation of more employment opportunities

5.      Indian economy growth:globalization and liberalization has been resulted in fiscal consolidation, growth in foreign exchange reserve, increased foreign investment and to a considerable extent, control of inflation.

Negative Impacts of Globalisation:

Growth for the sake of growth is the ideology of the cancer cell.

-          Edward Albee (American ecologist)

1.      Income inequalities:There is a growing divergence in income levels between countries and peoples, with widening inequality among and within nations. Assets and incomes are more concentrated. Wage shares have fallen. Profit shares have risen. 

2.      Unsustainable Development:Sustainable development is defined as development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. Under this definition development is not just limited to economic growth but is made to encompass environmental protection, and an equitable distribution of wealth and resources with the goal of improving and raising the standards and quality of living for everyone. The development practices followed the world over during the Globalisation era marked by a high level of market competitiveness often seemed to follow unsustainable development practices.

3.      GlobalizedCrime:Globalisationhas also let loose the forces of “uncivil society” and accelerated the transnational flows of terrorism, human and drug trafficking, organized crime, piracy, and pandemic diseases like HIV-AIDS, bird-flu etc.

4.      National-level progress in India has gone hand in hand with an ever greater gap between the prosperity of urban, middle-class Indians and the squalor still seen in many of its 600,000 villages where most Indians live. Uprooted from ancestral lands and unable to adapt to the demands of a modern economy, aboriginal populations (Adivasis) often see revolutionary redemption as the only way out of their predicament.

5.      Technology has failed to percolate to villages in absence of electricity and other communication infrastructure. Few people know about the internet. Mobile connections are increasing in rural areas but at slower pace. New advancement of technology has not much influence in rural areas.

6.      Agriculture: Globalization has few detrimental effects as government is always willing to import food grains, sugar etc. whenever there is a price increase of these commodities. On the other hand, subsidies are declining so cost of production is increasing. Even farms producing fertilizers have to suffer due to imports. There are also threats like introduction of GM crops, herbicide resistant crops etc. Also the farmers are influenced by politicians and corporate world to migrate from food crops to cash crops and thus the farmers are pushed into the volatility of global cash crop markets. This sometimes results into suicides of Indian farmers across the country.

7.      Indian Business:

a.       Unequal distribution of wealth disparity in income

b.      Rapid privatization government driven public sector units are on sale

c.       Uneven growth in respect of different sectors

d.      Extreme mechanization is reducing demand for manual labours

e.       Both employee and consumer exploitation are on rise by private sector

8.      Informal sector:As much as it has led to the creation of jobs for many individuals, globalization is also contributing to the suffering of people within the informal sector. It is important to note that the informal sector is deliberately not included in the labor legislation. For instance, informal workers are not subject to the 1948 Factories Act which covers the general working conditions, working hours, safety and health, prohibition of child labor, basic amenities among other things (Stone 1996)

9.      Environmental damage:Globalisation has tremendously affected upon the environment due to very rapid development of industries. The rivers in the country are polluted due to the disposal of industrial sewage into them, deforestation at rapid pace due to want of setting up the new industries by compromising the environmental norms. Global warming is one of the results of Globalization.

10.  Giant shift from food crops to cash crops: Tens of millions of formerly food crop sustenance Indian farmers have been locked into the volatility of global prices in agricultural commodities especially cash crop prices

11.  Poverty: There is always a surplus of food available with Indian government but still half of the world’s poor present in India. This is because of the exclusion of downtrodden from the growth and hence they don't have the purchasing power to buy the grains.

Measures to manage the challenges of Globalisation:

1.      The transfer of state functions to supranational forms of regional governance could enhance the capacity of individual states to combat uncivil society. The sharing of expertise, institutions, policy tools, personnel and other resources can go a long way in stemming the tide of unwanted activities.

2.      Human trafficking is among the darkest sides of Globalisation, turning human beings into commodities bought and sold in the international marketplace. Women and children are among the most exposed to it. NGOs from all continents attempt to cope with this nefarious activity and report on those involved in it.

3.      Balance between openness and regulation requires keeping a watchful eye on trans-border crimes that thrive in the interstices of the national and the international

4.      The growth should always be an inclusive growth so that the fruits of Globalisation should be cherished by all classes of the society.

5.      The development should be sustainable not on papers and in summits but in implementation so that the developments of contemporary world should not harm the future generation.

6.      Government should focus on the Directive Principles of State Policy (DSPS) so that the trickle-down theory of Globalisation will be justified.

Name: SharadDurgawad

GCC (gulf cooperation council) and its relations with India

GCC Background:

Established: 25 May 1981in Abu Dhabi.

Objective:

·to formulate similar regulations in fields such as religious, finance, trade, customs, tourism, legislation, and administration.

·to strengthen scientific and technical progress in industry, mining, agriculture, water and animal resources.

·to establish scientific research centers.

·to set  up joint ventures.

·  Unified military presence (Peninsula Shield Force)(military force).

·to build strong cooperation of the private sector.

·to strengthen ties between their peoples.

·establishing a common currency by 2010(khaleeji :proposed name of currency)

Positive Binders:

·         Oil and gas reserve

·         Investment in infrastructure

·         Hotspot events for sports(Asian Games,FIFA world Cup,summer Olympic games)

·         Indian population in GCC countries(Cultural Relationship)

·         some of the fastest growing economies in the world

Members :  Arab states bordering the Persian Gulf, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates

Non-Members :

·         Iraq :

is the only Arab country bordering the Persian Gulf that is not a member of the council. The associate membership of Iraq was discontinued in 1990 after its invasion of Kuwait in the First Gulf War.Kuwait supports Iraq joining the GCC

·         Jordon Moracco :

the only two Arab monarchies not currently in the council, the current members see them as strong potential allies. Although Morocco is not near the Persian Gulf, the Moroccan foreign minister TaeibFassiFihri notes that "geographical distance is no obstacle to a strong relationship"

·         Yemen:

hopes to join by 2015. Although it has no coastline on the Persian Gulf, Yemen is on the Arabian peninsula and shares a common culture and history with other members of the GCC.The GCC members and Yemen are also members of the Greater Arab Free Trade Area (GAFTA).

·         Iran :

At the December 2012 Manama summit, the GCC states called for an end to Iranian interference in their internal affairs

India and its Relationship

Background :

·         immediate neighborhood separated by Arabian sea

·         vital stake in the stability, security and economic well-being of the Gulf..

·         major trading partner of india(oil and Gas reserve)

·         to strengthen relationship by fallowing Look ‘west’ policy

·         FTA agreements (natural economic hinterland)

·         Man-power agreement

	Saudi Arabia	Kuwait
Historical/Cultural	·         Since 3 B.C	·         recent discovery of artifacts such as pottery and jewellery from the Kuwaiti island of Failaka point to commercial and cultural interaction between the two countries ·         horse trade ·         The demolition of the Babri Masjid also impacted ties
Political	·         J.Nehru,I.Gandhi,M.Singh Visit ·         King Abdullah visit after 51 years ·         5 Principle of Peaceful co-existence ·         Support for membership in OIC ·         Co-operation to Reduce Terrorism ·         Extradition treaty signed	·         2006 visit by sheiksabah al-ahmed al-jaber al-sabeh
Social	·         set up institutes of higher education and research, provide educational opportunities in India for Saudi Arabian students and expand cooperation between India's Council of Scientific and Industrial Research and the Saudi Arabian Standards Organisation (SASO)	·         Indians form one of the largest expatriate communities in Kuwait numbering about 640,000 people ·         18 Indian Schools  of kuwait affiliated to the Central Board of Secondary Education, New Delhi
Economical	·         Trade relations with southern india(spice) ·         During the 1930s, India heavily funded Nejd through financial subsidies. ·         Latgest supplier of oil to india ·         1.4 million workers ·         Embargo against india during oil crises	·         Oil imports ·         a centre for ship building and pearl diving and fishing were important commercial activities ·         DTAA and BIPA agreement ·         PSU and Private industries(LnT) ·         Trade facilitated by Kuwait fund for arabic economic development
SnT	·         launch joint ventures for developing gas-based fertiliser plants in Saudi Arabia	·         agreements on avoidance of Double Taxation, drug reduction and prevention of illicit trafficking in narcotic drugs

	Qatar	U.A.E
Historical/Cultural	·         since 200years ago and credit goes to thattibhatias ,kutchibhatias ,luwatias ·         diplomatic relations between the two countries in 1973, was on Cultural and Technical Cooperation (1980). ·         presence of the large Indian population, representing all regions and religions, contributes significantly in promoting Indian art, culture and traditions in this country.  The Indian community are affiliated to the Indian Culture Centre  (ICC), ·         indian cinema is popular in Qatar.  There are a number of theatres that play Indian movies throughout the year.  The 4th edition of DohaTribeca Film Festival held in Doha late last year  opened with Mira Nair’s ‘The Reluctant Fundamentalist’.	·         Since 3000 BCE when dubai was hub of malabar trade ·
Political	·	·
Social	·         a majority of the Indian community continues to be  engaged in unskilled and semi-skilled work and, therefore, belong to the low or lower-middle income groups, for the last few years, an increasing number of Indian nationals have been engaged in professional jobs as doctors, engineers, chartered accountants, bankers, etc.The number of Indians who have established themselves as entrepreneurs is small, but they are affluent.  Separate figures for male and female employees are not available. ·         indian Community Benevolent Forum (ICBF), Indian Cultural Centre (ICC) and Indian Business and Professional Network.  These organizations work in close coordination with the Embassy and  represent the community well	·         the largest migrant group in the country ·         1st GCC state to provide aid through ADFAED(abudhabi fund for economic development ) ·         the Indian Workers Resource Centre (IWRC) in Dubai which is a free, walk-in resource centre providing Indian workers, especially semi-skilled and unskilled labourers, direct access to welfare services in the United Arab Emirates
Economical	·         synergy in the hydrocarbon ·         A number of Indian banks – State Bank of India, Canara Bank, Syndicate Bank, Bank of India, ICICI Bank – are operating in Qatar.no retail banking is allowed ·         Largest LNG supplier to india	·         People-to-people contacts and barter trade for clothes and spices from India in exchange for dates and pearls from the region have existed for centuries ·         the UAE, which is India's top trading partner in the entire West Asia North Africa (WANA) region ·         highest import-export trade among GCC countries ·         the hamriyah free zone to explore oversea operations
SnT	·         joint venture to be set up in Mesaieed Industrial area between Qatar Industrial Manufacturing Company (QIMC) and KLJ Organic Limited to manufacture Chlorinated Paraffin Wax along with caustic soda, hydrochloric acid, calcium chloride and sodium hypochlorite as by-products and co-products, purchase of majority stakes of Indian basmati rice seller Bush Foods Overseas  by Hassad Food of Qatar ·         joint maritime security and training	·         invest in agriculture ·

	Oman	Bahrain
Historical/Cultural	·         trade in the Roman and pre- Islamic times.(Indus valley civilization) ·         Tipu Sultan sent a diplomatic delegation to Oman during his reign. ·         Sultan Taimur spent more than 30 years in the Indian commercial capital Mumbai till his death in 1965 and he was buried there	·         Poet Ebrahim Al-Arrayedh grew up in Bombay, while 17th century Bahraini theologians Sheikh Salih Al-Karzakani and Sheikh Ja`far bin Kamal al-Din were influential figures in the Kingdom of Golkonda ·         Pearl industry role during medieval regime
Political	·         Embassy in muscat ·         first Ambassador of India arrived in Muscat in 1973 ·         supportive of India on  issues such as Kashmir ·         it supports India's bid for permanent membership of the United Nations Security Council.	·         Close ally ·         Politically, it is easier for Bahrain’s politicians to seek training and advice from India ·
Social	·         large Indian expatriate community ·         number of PIO got omani nationality	·         the Bahrain India Society was launched in Manama ·         extradition treaty
Economical	·         Trade with Gujarat and Malabar coast ·         joint ventures in sectors including fertilisers, pharmaceuticals, energy and engineering.[10] The Oman-India Fertiliser Company (OMIFCO) plant at Sur in Oman and the Bharat-Oman Oil Refinery at Bina have been set up as joint ventures between Indian public sector companies and Oman Oil Company ·         India has been considering the construction of a 1,100-km-long underwater gas pipeline from Oman for transporting natural gas. Called the South Asia Gas Enterprise (SAGE), it will act as an alternative to the Iran-Pakistan-India pipeline.	·         Many Indian companies
Defence relation	·         Oman is the first Gulf nation to have formaliseddefence relations with India. ·         The Indian Air Force has also been holding biannual joint exercises with the Royal Air Force of Oman since 2009.	·         Keen in IT sector ·         MoU between electronics and computer software( ESC) and Bahrain economic development board (EDB)

Some concerns with GCC countries:

Concerns which can be improved

·         Relationship with Pakistan(kashmir support) ·         Soviet Relations with india ·         India’s neutral stance during gulf war ·         Labour problems(social agreements) ·         Security in Gulf region(energy) ·         Internal matters ·         Terrorism ·         Anit-piracy issue ·         India’s Entry to OIC ·         Visa Relaxations ·         Soft power ·         Military co-operation ·         Strategic issues(UNSC) ·         Protecting interest of diaspora

 written by  :RamanBhattad