Buying of systems, but selling what…
By: Amit Bhushan Date: 14th Oct. 2016
Media analysts in political parties would have perhaps identified new and emerging patterns of rhetoric. Each ‘buy’ especially defence contract seems to be a strategic buy and an achievement, even if the actual delivery might be years away and there might not be any strategic usage envisaged in immediate aftermath. The only difference from past perhaps is, that the usual allegations about agent’s commission seem to be missing. So we seem to be celebrating the jobs being shipped overseas, while tom-tomming ‘Make in India’ at the same time.
While there has been increase in naval procurement domestically, however most efforts around naval equipment sales seem to be political posturing to canvass political support with sometimes backing up with cultural relations & people to people contacts. As a result, Indian coporates in the sector may not be in a position to sell even fishing boats or trawlers or even ferries, luxury yatch etc. in say Indian Ocean rim, where we may claim to be having some solid influence. Similar thing can be said about our ability to sell small reconnaissance aircrafts or air ambulance to island states in our proximity with which we may have strong relations.
Normally any investors other than PSUs or those who may have access to cheap bank finance (with the ability to throw the gauntlet on one’s own term), would like to enlist suitable political support to develop these markets to manage risks. Investors would prefer an Institutional arrangement system whereby these countries are getting required services for hydrography/oceanography, satellite studies, Weather forecasting support, communication channel management including data transfers etc. as well as equipment for better fishing, tourist boats etc. thus feeding a suitable economy that keeps them supplied with necessary service package rather than political conglomeration alone. Support for energy security as well as food security would perhaps go a long way but these areas would require reliance to be proven in areas where there a degree of strategic value but not complete submission. With its vast and cheap technical manpower and necessary entrepreneurship, India provides a suitable ground, but needs to evolve suitable politico-economic framework.
While the evolving strategic scenarios catapults India to play an increasingly active role beyond its immediate neighborhood, however losing sight in immediate neighborhood might be foolish in current paradigm where global trade flows might be fluctuating and regional trade flows increasing in importance. The strategy should be continue to deepen cooperation within neighborhood just as in SAARC and keep growing these relations while monitoring global opportunity scenario/spectrum.
By: Amit Bhushan Date: 14th Oct. 2016
Media analysts in political parties would have perhaps identified new and emerging patterns of rhetoric. Each ‘buy’ especially defence contract seems to be a strategic buy and an achievement, even if the actual delivery might be years away and there might not be any strategic usage envisaged in immediate aftermath. The only difference from past perhaps is, that the usual allegations about agent’s commission seem to be missing. So we seem to be celebrating the jobs being shipped overseas, while tom-tomming ‘Make in India’ at the same time.
While there has been increase in naval procurement domestically, however most efforts around naval equipment sales seem to be political posturing to canvass political support with sometimes backing up with cultural relations & people to people contacts. As a result, Indian coporates in the sector may not be in a position to sell even fishing boats or trawlers or even ferries, luxury yatch etc. in say Indian Ocean rim, where we may claim to be having some solid influence. Similar thing can be said about our ability to sell small reconnaissance aircrafts or air ambulance to island states in our proximity with which we may have strong relations.
Normally any investors other than PSUs or those who may have access to cheap bank finance (with the ability to throw the gauntlet on one’s own term), would like to enlist suitable political support to develop these markets to manage risks. Investors would prefer an Institutional arrangement system whereby these countries are getting required services for hydrography/oceanography, satellite studies, Weather forecasting support, communication channel management including data transfers etc. as well as equipment for better fishing, tourist boats etc. thus feeding a suitable economy that keeps them supplied with necessary service package rather than political conglomeration alone. Support for energy security as well as food security would perhaps go a long way but these areas would require reliance to be proven in areas where there a degree of strategic value but not complete submission. With its vast and cheap technical manpower and necessary entrepreneurship, India provides a suitable ground, but needs to evolve suitable politico-economic framework.
While the evolving strategic scenarios catapults India to play an increasingly active role beyond its immediate neighborhood, however losing sight in immediate neighborhood might be foolish in current paradigm where global trade flows might be fluctuating and regional trade flows increasing in importance. The strategy should be continue to deepen cooperation within neighborhood just as in SAARC and keep growing these relations while monitoring global opportunity scenario/spectrum.