No Rushing with FDI Reforms

India favours calibrated liberalisation of foreign investment norms in sensitive sectors like retail, defence, banking and insurance on account of domestic sensitivities.

India already has a liberal and transparent FDI regime in place except for a few sensitive sectors where the country was in favour of `calibrarted liberalisation’.

India's initiatives like simplification and consolidation of the FDI policy would go a long way in improving business environment. At present, FDI is not allowed in multi-brand retail in India, but it is permitted in wholesale trade and single-brand retail. Up to 26% FDI is allowed in defence and insurance sectors, while banks can have up to 74% of foreign investment.

The US wanted India to address longstanding impediments such as investment caps, agricultural market access barriers, high tariffs, intellectual property rights and the need for continuing regulatory streamlining and transparency,etc, in recently concluded CEOs Meet in the US.

These insights emerged in an official and industry delegation in the second meeting of the Forum co-chaired by Tata Group Chairman Ratan Tata and Honeywell Inc CEO Dave Cote. The meeting was also attended by finance minister Pranab Mukherjee and deputy chairman of Planning Commission of India Montek Singh Ahluwalia.

The US official delegation included secretary of state Hillary Clinton, treasury secretary Timothy Geithner, commerce secretary Gary Locke, US Trade Representative Ambassador Ron Kirk and director of National Economic Council Larry Summers.

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Credit: Business Standard.

Afghan War General Removed from Command

President Barack Obama and Gen. David Petraeus walk to the White House Rose Garden on Wednesday to make a statement after meeting with Gen. Stanley McChrystal, who was ousted as commander of forces in Afghanistan. Patraeus was nominated to assume McChrystal's command.

Obama said bluntly that Gen. Stanley McChrystal's scornful remarks about admin officials represent conduct that "undermines the civilian control of the military that is at the core of our democratic system." He ousted the commander after a face-to-face meeting in the Oval Office and named Petraeus, the Central Command chief, who was McChrystal's direct boss, to step in.

In a statement expressing praise for McChrystal yet certainty he had to go, Obama said he did not make the decision over any disagreement in policy or "out of any sense of personal insult." Flanked by Vice President Joe Biden, Defense Secretary Robert Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, in the Rose Garden, he said: "War is bigger than any one man or woman, whether a private, a general, or a president."

Afghan War General Removed from Command

This enhances CMR in a country -- a part of 'Military - Civil Maryada' covered in the Post below. Military must know where is the limit, and the Civil how to 'gracefully act' in an embarracing situation with the Military, upholding the national interests.

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Credit: msn.com

Britain's CDS Axed

Britain’s senior most serving military commander, Air Chief Marshal Sir Jock Stirrup has been axed before his term was to end in April next year. The Sun reports that the decision, which is expected to have far reaching political consequences, was announced by Defence Secretary Liam Fox.Sacking of Sir Stirrup has not surprised the security experts, as his performance in Afghanistan was seen as far from satisfactory and was dogged by the failure to provide the requisite equipment to the British troops in Afghanistan.

Meanwhile, Chinese news agency Xinhua reports the British Defence Secretary denying charges that Sir Stirrup had been sacked. According to the news report, Liam has said that the services' professional head, Air Chief Marshal Sir Jock Stirrup, had not been sacked, but he would be replaced early, leaving his post in the autumn some months earlier than his retirement in the spring of next year.

Current Army head General Sir David Richards or vice-Chief of the Defence Staff, General Sir Nicholas Houghton are favourites for the top job. The Ministry of Defence's top civil servant Sir Bill Jeffrey will also get the elbow. The Mirror reports that the Chief has been made a scapegoat and criticized the new government of politicizing the armed forces.

Coutesy: 8ak.

India’s Defence and Aerospace Market: Emerging Trends

All the Studies/Reports/Surveys indicate that as defence expenditure is dropping in the traditionally big-spending western economies, including the USA, Indian defence spending will grow steadily over the next 20-25 years, as India implements a major defence modernisation. CIIs Report entitled “Prospects for Global Defence Export Industry in Indian Defence Market”, released in Jun 2010 at the Eurosatory 2010 too indicates this.

Linking defence spending to the International Monetary Fund (IMF) prediction that India’s economy will grow in real terms by 7.5 per cent from 2010 to 2014, the Studies indicate that India’s current defence expenditure of $32.03 billion will rise to an estimated $42 billion by 2015. The Capital Expenditure on new weapons / platforms will rise from the current $13.04 billion to $19.2 billion in 2015.

The figures are impressive. India will spend $100 billion on weaponry during the current Five Year Plan (2007-12), which will rise to $120 billion during the next Five Year Plan (2012-17), as per reports in the media.

“Buy Local” and "taxation arrangements" create special advantages for Indian firms. In case of Defence Public Sector Undertakings (DPSUs), tax advantages can be as high as 50 per cent. There are therefore clear opportunities for foreign firms in providing specialist inputs to Indian Defence Industry for developing advanced platforms and systems indigenously.

Read the full Article: India’s Defence and Aerospace Market: Emerging Trends

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Courtesy: Business Standard.

India’s Naval Power and Indian Ocean

India's increasing role in the Asia-Pacific has been firmly supported by the region's premier naval power, the United States. Since 2001, the U.S. and India have conducted over 40 joint military exercises, including one of the largest multilateral naval exercises ever held in the region, Malabar 2007, which featured three aircraft carriers, 28 surface vessels, 150 aircraft and over 20,000 personnel from India, the U.S., Japan, Australia and Singapore. A 10-year Indo-U.S. defence pact signed in June 2005 deepened intelligence-sharing, military technology transfers, missile-defense collaboration and arms sales.

The question for New Delhi will be how best to leverage this progress for additional security and improved relations throughout the region. Although India's "Look East" policy has clearly met with success, there are many in India who still fail to acknowledge the vital role it is poised to play in Asia. The ability of countries in the region to partner effectively with India would be enhanced significantly were New Delhi to define more concretely its vision for the country's broader role in Asia.

Read the full Article: India’s Naval Power and Indian Ocean

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Courtesy: USIBC and Its News Agencies.

Moments of Truth

Chinese President's Visit to the US
US President's Visit to China

Courtesy: Internet Fan