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Books on India
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Update No: 041 - (27/06/07)
PAKISTAN'S NUCLEAR SHADOW OVER INDIA
According to latest American intelligence reports, satellite imagery shows
that Pakistan is building a nuclear reactor that can produce weapons-grade
plutonium at the Khushab nuclear site, 100 miles southwest of the Pakistani
capital, Islamabad. According to the Institute of Science for International
Security, the progress made on developing nuclear reactors displays Pakistan's
resolve to continue developing nuclear weapons irrespective of the implications
of such an action for the South Asian subcontinent. Such theories have been
validated by senior officials at Pakistan's Atomic Energy Authority who believe
that the country is intent on extending its infrastructure in this area,
underlining their claim that nuclear technology has always been developed for
peaceful energy use. It appears that along with peaceful uses of nuclear energy,
what also remains at stake is, Pakistan's national security interests. How these
two things are related, is yet to be explained. From various public statements
made to the press in the past, the Pakistani government has always signalled its
intention to develop nuclear weapons as a deterrent to India. The American
intelligence reports further observe that "Pakistan may have decided to
produce more plutonium for lighter warheads for cruise missiles, or to upgrade
weapons aimed at Indian cities and the country is moving towards a new
generation of plutonium based weapons." The most significant conclusion
generated by the report focuses on the renewed fear of an arms race in the South
Asian subcontinent. Given such conclusions drawn by American intelligence, the
primary issue now is whether or not the United States is going to exert any
pressure on Pakistan to forgo its nuclear weapons program. As United States is
using Pakistan's support in its fight against terror, this option might be next
to impossible while engaging both India and Pakistan in a nuclear deal might
look a more promising alternative. Of course, one could also argue that the very
reason for Pakistan's expansion in nuclear capabilities has been a direct
produce of India-US cooperation in nuclear technology over the last year.
INDIA DEFIANT AT WTO TALKS
In a recent round of talks at the WTO summit in Germany, Brazilian farmers
have blamed India for being the main cause for the collapse of World Trade
Organization talks in Germany. Spokesman, Antonio Donizeti of the National
Confederation of Agriculture and Livestock stated that "India was the major
complicating element in these negotiations through its resistance, its service
demands and its totally inflexible position." Both Brazil and India walked
out of the talks with United States and European Union during WTO negotiations
in Germany that aimed for multilateral agreement on farm subsidies and open
markets. In Washington, US President George W Bush accused Brazil and India of
fighting for their interests at the expense of poorer countries. However,
Donizeti also claimed that India was not the only party to blame for the
deadlock in talks. While Brazilians were quick to critique India's position,
they did take responsibility for their own aggressive stance on agricultural
policies. Moreover, the United States and European Union were also guilty for
not providing easier access to market and internal support to various member
countries. Therefore, Donizeti said that in the overall scheme of things, there
were no real winners or losers. However, the stakes for the Brazilian farmers is
the highest in these trade talks only because they would be the worst off and
could almost lose approximately 10 billion US dollars worth of potential exports
if a trade accord fails. India maintained a strong stance in defending its
agricultural sector from foreign competition and adopted a tougher stance on the
farm products it believes should be spared from foreign competition under an
accord. India insists that 20 per cent of its farm tariffs face no or only
minimal cuts. The WTO intends to complete a new global trade pact by the end of
the year.
INDIA SUPPORTS SRI LANKA IN FIGHT AGAINST TERRORISM
In a new turn to India's relations with Sri Lanka, Indian Defence Minister
A.K. Anthony, while addressing India's top military brass, stated that the India
is willing and ready to provide Sri Lanka with arms and ammunition to help fight
against terrorism. Anthony also said that terrorism and non-state actors were
the most virulent threats to the national security of both countries. A new
'security paradigm' will be implemented which will include different components
such as security cooperation, strategic partnerships and deterrence in
accordance with India's security and strategic interests. India's bid to support
Sri Lanka against the growth of terrorism is a response to the rise and increase
in power of the Liberation Tigers of Tamil Elam (LTTE), a militant group.
Simultaneously, Anthony also expressed a desire for diplomatic and political
solutions to the problem. In accordance with extending its support to the Sri
Lankans, the Indian government has agreed to begin coordinated patrols of the
maritime boundary between India and Sri Lanka in the Palk Straits.
ECONOMY/BUSINESS
According to a major new study, India is the most easy, comfortable or safe
market to do business with. The major new international study by BT, one of the
world's leading providers of communications solutions and services, commissioned
Datamonitor to undertake the study of 800 senior executives in the US, UK,
France and Germany for its study, "Building Business with BRICS." This
study has revealed that while more than six out of 10 (64 per cent) directors of
large American, British, French and German corporations accept that emerging
economies will "reshape" the global business landscape, many seem to
have only an elementary knowledge of their business environments, demonstrating
ignorance at the realities of these countries. For instance, nine out of ten
directors (88 per cent) could not name the currency of Brazil and 14 per cent
believe that vodka is the main product of Russia, for example. While India was
considered to be the most comfortable BRICS economy in which to do business,
Russia was perceived as the least comfortable BRICS economy to do business.
Francois Barrault, the CEO of BT Global Services said that the findings of this
survey are rather worrisome. The study also found that directors perceived data
security to be the main barrier to effective collaboration with international
businesses, followed by different legislation and regulations and political
interference.
ANALYSIS BY THE WALL STREET JOURNAL
According to a recent analysis by the Wall Street Journal, ICICI Bank,
India's biggest private bank by assets has raised more than US$4 billion in the
country's largest-ever fund-raising exercise by an Indian company, attracting
worldwide attention from domestic and overseas investors. The bank priced the
shares at the upper end of expectations at 940 rupees (US$23.17) each, and its
American depositary shares at US$49.25 per unit. ICICI Bank had set an
indicative price band of 885 rupees to 950 rupees for its public offering. The
combined amount of US$4.29 billion that was raised, excluding over allotment
options, tops the India state-run Oil & Natural Gas Corp.'s US$2.58 billion
offering in 2004. The 87.5 billion-rupee domestic part of the offering is by
itself India's second-largest after Oil & Natural Gas. ICICI is planning to
use the funds from the sale to expand its consumer-credit and corporate
businesses and a rural banking project. The bank's local offering has an over
allotment option valued at 13.13 billion rupees, while the US$2.14 billion
overseas offer has an over allotment option valued at US$320 million. The
company didn't specify whether the options will be exercised.
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