Atlantic Council Proposes Recommendations for India

In its report The Sino-Indian Clash and the New Geopolitics of the Indo-Pacific authored by the South Asia Center of Washington-based Atlantic Council made a series of recommendations to help India meet security challenges.

Highlights of the Report authored by Robert A. Manning and Bharath Gopalaswamy, as reported by Live Mint are:

  • India should propose regular India-U.S.-China talks at least on an annual basis, perhaps on the margins of the G20 or the East Asian Summit meetings aimed at minimizing the risk of misperception or miscalculation.
  •  India and the U.S. should enhance joint maritime patrols in the Indian Ocean.
  • United States and India must boost bilateral security cooperation in the Asia-Pacific.
  • India should also seek assistance from Japan and the United States in developing its indigenous shipbuilding capabilities and should consider permitting Australia to join the Malabar exercises to resurrect the initial Quadrilateral grouping.
  • India should improve its carrier aviation capacity, which will help maintain sea control in the Indian Ocean.
  • The United States can play a major role in helping India modernize its unmanned aerial vehicle fleet.
  • India must seek to improve its space surveillance capacities. India already possesses a developed space program which it must utilize to serve practical military needs.
  • India should establish forward bases to advise the militaries of neighboring countries. India could set up a brigade for each South Asian nation (other than Pakistan), which would take on the responsibility of training and advising the militaries of those countries.
  • India could also create a satellite campus of the National Defense Academy, or an entirely new academy, to train greater numbers of Bhutanese/ Nepali/ Bangladeshi/ Sri Lankan troops in India.

The report noted that as a democracy and a committed market-oriented economy, India appears more focused than China on the rules-based global order, while trying to build a larger role and expand its voice and influence within it.

Flags of US and India

November 11, 2017   No Comments

India’s Shrimp Exports Surge Due to Bumper Harvest

According to a report by Globefish, a unit within the United Nations Food and Agriculture Organization, the seafood export value from India is expected to reach $2.3 billion — a growth of 41 percent this year. The abundant vannamei shrimp harvest in India will boost India’s seafood export performance in 2017, along with that of Chile.

shrimp

FIS reports that significant import growth is forecast for the South East Asian emerging markets in particular, while the traditional “big three” comprising the United States, EU and Japan will all see a surge in seafood demand due to improving economic conditions. The value of world trade in fish and fishery products is expected to increase by a projected 5.8 percent to $150.9 billion in 2017.

The top five shrimp exporters  in 2016 were India, Vietnam, Ecuador, Indonesia and Thailand.

October 29, 2017   No Comments

India Growing Robustly Says World Bank’s Kim

Predicting a strong global growth this year, World Bank president Jim Yong Kim said India has been growing “pretty robustly”.

Speaking at the Bloomberg Global Business Forum meeting in New York, Kim said, “A country like India is growing, has been growing pretty robustly. We think, Japan is growing. Europe is growing in a much more healthy way. The United States continues to grow. There is a leveling-out in developing countries.” In June, the World Bank predicted a 7.2% growth rate for India this year against 6.8% growth in 2016.

Economy chart

“Dormant capital will earn a higher return, where developing countries will have access to much more capital for the infrastructure needs, even for investing in health and education, investing in resilience to climate change and other factors,” he added.

He said in terms of indebtedness, the bank was watching very carefully the debt-to-GDP ratios of every single country, reports the Hindustan Times.

October 2, 2017   No Comments

HSBC: India to be a $7 Trillion Economy in 2028

British financial services giant  HSBC said India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector.

Thire brokerage’s estimates show that India will be a $7 trillion economy in 2028, as compared to less than $6 trillion and $5 trillion for Germany and Japan, respectively. Currently, India is at the fifth spot in global rankings with a GDP of about $2.3 trillion (fiscal 17), reports BusinessLine.

Rs. 50 currency notes

Other takeaways from the report:

  • Demographics and macro stability were key strengths for the country
  • India needs to create an ecosystem of continuous change
  • An avenue of job creation can be the social sector
  • India will continue to be a services oriented economy but it needs to pay extra attention on manufacturing and farm sectors as well

“Apart from services, other hallmarks of the India story over the next decade will be higher investment and capital goods flows as its focus on manufacturing increases; Indian consumers forcing foreign brands to turn ‘glocal’; and a two-way human capital footprint that will see many skilled people traveling overseas. It (India) needs to broaden its specialization (beyond just IT in business and cricket in sports) if it wants to run harder and fly higher,” the report added.

September 22, 2017   No Comments

U.S. Invests the Most in India’s Startups

According to New York-based CB Insights, U.S.-based investors are the most active foreign participants in India’s start-up ecosystem over the past five years, making over 800 equity deals during the period.

In the list of top five foreign investors in India’s technology ecosystem, U.K., with 1% of deals stood at 5th place; Japan at 4th with 2% of deals; Hong Kong at 3rd with 3% of deals; Singapore at 2nd with 5% of deals; while the U.S. topped with four times the number of deals than investors from Singapore.

Planning in a startup

Business Standard reports: Of the U.S.-based investors, New York-based Tiger Global has been the most active, backing some of India’s largest start-ups, including Flipkart, Ola, and ShopClues, while also making numerous other investments in smaller companies. Hong Kong-based Saif Partners, has backed firms such as Paytm and Urban Ladder. California’s Accel Partners, which has an India unit, made its largest investment in Flipkart through its overseas unit rather than the local one.

Both Tiger Global and Japan-based Softbank have pumped billions of dollars in India’s startup ecosystem in the past few years.

August 31, 2017   No Comments