Description
The Foreign Ministry in India seems to be the first to be taking off to reach China-like speed for the current government post elections. The reasons are basically simple. It only needs to make requests and agreements while the responsibility to ensure deliverables is expected by other ministries and departments. Yes, a lot of groundwork is required to sign agreements but the same is basis an ‘in principle’ broad consensus within respective departments and ministries or in the group of department/ministries led by high office. The actual implementation to thrash out nitty-gritty takes much longer and is countered with sometimes perennial blockages or movement to a different set of priorities. Hopefully, the neighbours like Nepal have the capability to involve Indian businesses who are adept in shaking the domestic bureaucratic lethargy including politically inclined minds to get the decisions that favour the respective investment projects/Joint ventures by working their way through byzantine alleys of India’s bureaucratic complex.
The Government Policy Watch
By Amit bhushan Date: Aug. 5
th
2014
The Foreign Ministry in India seems to be the frst to be taing o! to rea"h
#hina$%ie s&eed 'or the "urrent go(ernment &ost e%e"tions. The reasons are
basi"a%%y sim&%e. It on%y needs to mae re)uests and agreements *hi%e the
res&onsibi%ity to ensure de%i(erab%es is e+&e"ted by other ministries and
de&artments. ,es- a %ot o' ground*or is re)uired to sign agreements but the
same is basis an .in &rin"i&%e/ broad "onsensus *ithin res&e"ti(e de&artments
and ministries or in the grou& o' de&artment0ministries %ed by high o1"e. The
a"tua% im&%ementation to thrash out nitty$gritty taes mu"h %onger and is
"ountered *ith sometimes &erennia% b%o"ages or mo(ement to a di!erent
set o' &riorities. 2o&e'u%%y- the neighbours %ie 3e&a% ha(e the "a&abi%ity to
in(o%(e Indian businesses *ho are ade&t in shaing the domesti"
bureau"rati" %ethargy in"%uding &o%iti"a%%y in"%ined minds to get the de"isions
that 'a(our the res&e"ti(e in(estment &ro4e"ts05oint (entures by *oring their
*ay through by6antine a%%eys o' India/s bureau"rati" "om&%e+.
3e&a% *ith its heritage a"tua%%y re&resents a rather easier &o%i"y "ha%%enge.
7ith its &eo&%e ha(ing shaen o! an autar"hy 8i.e. their erst*hi%e monar"hy9
are un%ie%y to be in"%ined to*ards another #hina %ie or Mao %ie autar"hy. In
that sense *ith the "urrent regime/s agreement o' not im&osing any medie(a%
re%i"0(estige 'orm o' go(ernment on its &eo&%e in de'eren"e to its ideo%ogi"a%
ba"ers: did the tri" o' yie%ding a &ositi(e out"ome 'or the &resent
go(ernment. The su""ess o' the (isit by "urrent ;M *i%% de&end u&on the
abi%ity to ee& the .ideo%ogi"a% 'ountains see&ed in the great 2indu Traditions/
under "he" and "ontinue to &ush businesses to tae &ositions on &ro4e"ts o'
mutua% interests in both "ountries ba"ed by the "a&ita% su&&ort and business
agreements0ru%e based su&&ort. This o' "ourse *i%% re)uire he%& to su&&ort the
bureau"ra"y in the 3eighbourhood to de(e%o& "a&abi%ities and "a&a"ity to
hand%e "om&%e+ business &ro4e"ts and &ro&osa%s and tae suitab%e
de"isions0a"tions in %ine *ith g%oba% business norms be"ause most su"h
&ro4e"ts *i%% sti%% "ontinue to de&end u&on fnan"ia% su&&ort 'rom g%oba%
in(estors rather than "a&ita% star(ed India/s o*n "a&ita%. And o' "ourse it *i%%
be *at"hed *ith interest that *hat the %arger "ountry gets in return rather
than 4ust the businesses gaining on su"h o&&ortunities in su"h re%ations.
The 'oreign ministry o' "ourse seems to be turning its head to*ards more
"om&%e+ neighbours %ie Burma- Bang%adesh and <ri =ana *hi"h is good
sin"e it &uts &riority to se"ure neighbourhood 8*hi"h is a%so a"hie(ab%e9
be'ore mo(ing on to other %o'ty goa%s. By mo(ing a*ay 'rom ;a- #hina or ><
'o"used and being more ba%an"ed in identi'ying o&&ortunities *here 'or*ard
mo(ement is &ossib%e is a good a&&roa"h and *hen a&&%ied to neighbour- it
"an yie%d good di(idends due to trade0tourism0business &ro+imity. 7hat the
ministry a%so needs to do is to in(o%(e other ministries to a"tua%%y "ra't some
immediate 8medium to %ong term or 1$5 years9 de%i(erab%es. =ie &romoting
outbound tourism is sub4e"t to the neighbouring "ountries &o%i"ies but
&romoting inbound tourism in India is sub4e"t to domesti" &o%i"ies. The
3e&a%ese "iti6ens "ou%d be su&&orted in their )uest to (isit &%a"es %ie Badri$
?edar- Ayodhaya or @aya or 'or ?umbh0Ardh$umbh 8most%y seasona% tra(e%9
by *oring a%ongside .states/ and .tour o&erators/ to e(o%(e ser(i"e o!ering
*hi"h is suitab%y &ri"ed and assures a me"hanism 'or sa'ety to the (isitors.
<imi%ar%y moda%ities need to be *ored out 'or trans&orters to *or a"ross
borders to smoothen trade 'urther *ithout "om&romising on interests o'
Indian trans&orters. This *ou%d re)uire the ministry o' sur'a"e trans&ort
"reate "oordination de&artment 'or su"h agen"ies and states- rather than 4ust
'o"using u&on in'rastru"ture and the booty in(o%(ed thereunder. A suitab%e
&eo&%e orientation in the ministry to ensure a"tua% ser(i"e de%i(erab%e to
&eo&%e in "ost e!e"ti(e manner *i%% be a &aradigm shi't rather than %ea(ing
this so%e%y to entre&reneurs0;<> or bureau"rati" 'a"i%itation agen"ies a%one
*ho then ."reate0or"hestrate/ "ustom A trade &ro"edures and India/s state
run me"hanism *hi"h o'ten remain %amedu" "onfned to the borders. A
suitab%e ma"hinery to thrash out these moda%ities and *or u&on to &romote
these &eo&%e to &eo&%e "onta"ts a%ongside su&&ort to mutua% in(estments and
businesses *i%% *or a %ong *ay. India *i%% a%so need to ee& in *at"h the
im&a"t o' &orous borders *ith these nations ha(ing im&a"t on smugg%ing o'
go%d- e%e"troni"s et". or nar"oti"s- 'ae "urren"y- terror et". *hi"h "ou%d
im&a"t domesti" industry 0 business en(ironment signif"ant%y and thus
e(o%(e me"hanism to dea% *ith su"h issues.
B' interest *i%% be ho* the re%ations *ith %arger neighbour and region *ith
"ountries %ie Burma and Bang%adesh e(o%(e A in &arti"u%ar untying the
Bang%adesh to mo(e 'rom under de(e%o&ed to a de(e%o&ing e"onomy. India
*i%% a%so need to dea% *ith high%y "ontentious boundary- *ater and
immigration issues besides other things su"h as ty&hoon disasters-
e&idemi"s- nar"oti"s- 'ae "urren"y issues *hi"h are a regu%ar 'eature. India
may ha(e to mo(e out o' su&&%ying ri"e A other 'ood stu! to Bang%adesh and
hando(er that ro%e to Burma 8under suitab%e bi0tri %atera% trade 'a"i%itation
me"hanism9 *hi%e it 'o"uses on .trading/ mi%- meats et". and o!er su&&ort to
de(e%o& these mu"h %arger marets e(o%(e a mutua%%y benef"ia% maret
me"hanism to trade. <u&&ort to he%& e(o%ution o' bureau"rati" "a&abi%ities A
"a&a"ities in nurturing mining- in'rastru"ture and ser(i"es in Burma and
'oster suitab%e business a"ti(ities in Bang%adesh might be re)uired 'or
su""ess'u% "on(ergen"e o' interests. This may in(o%(e hoisting g%oba%
"om&eten"y 'or %ight (ehi"%es %ie t*o A three *hee%ers- >tensi%s maing et".
in Bang%adesh in"%uding "ustom e%e"troni"s and e%e"tri"a% assemb%y besides
their ro%e in readymade garments and %o* end 'oot*ear. De(e%o&ment o'
Cegiona% Cai%*ays- Coad net*or- ;i&e%ine net*or and 7ater*ay 8in%and and
near$shore9 trans&ortation- Te%e"om net*or in"%uding internationa% (oi"e A
data mo(ement- and the need to get the energy e)uations right *i%% be some
o' the intri"ate issues. Bang%adesh may a%so at some stage *ant to "om&ete
in em&%oyment intensi(e 4e*e%ry businesses but that *ou%d re)uire a
dramati" im&ro(ement in interna% se"urity- g%oba% "onne"t besides other
su&&orti(e 'a"tors. India may *ant to %ay 'oundations to e+tend its hand in
e(o%(ing a regiona% Cu&ee based Trade sett%ement me"hanism as *e%% as
touring "he)ues0"ards at some %ater stage.
India may a%so *ant to 'o"us on de(e%o&ing a sea "onne"t *ith the Indian
B"ean Is%and nations su"h as Ma%di(es- <ey"he%%es- Mauritius- Mo6ambi)ue in
"on4un"tion *ith say- <outh A'ri"a to o!er "onne"tion (ia #ruise- =iners- bu%
"argo 8in"%uding 'ue% %ines9 and Air say (ia @oa or Mumbai. This *i%% de(e%o&
to and 'ro tour and trade me"hanism and he%& strategi" outrea"h and
regiona% se"urity e!orts. India/s su&&ort to in(est in ser(i"es businesses in
these "ountries "ou%d be a "%in"her be"ause the u&&er "rust Indian A <A
"ustomers are &retty soon going to outnumber other "%iente%e in these
"ountries as India/s e"onomy taes o!. <u"h a mo(e *i%% a%%o* 'or e+&ansion
o' "or&orate a"ti(ities- baning ser(i"es and trading o&&ortunities 'or India
besides he%& shoring u& maret attra"ti(eness o' India due to su&er si6ed
regiona% hub ro%e 'or a %arge but %o* in"ome &o&u%ation *ith edge in
&rodu"ing ser(i"es and manu'a"tures *here India "an in"reasing%y tae u&on
hi$te"h and hea(y Industria%s- mass manu'a"turing in"%uding 'or domesti"
"onsum&tion- inno(ation &rodu"ts- "ement- stee%s- te%e"om e)ui&ment-
shi&&ing- rai%*ays and "a&ita% goods and a (ora"ious a&&etite 'or
"ommodities.
doc_742707585.doc
The Foreign Ministry in India seems to be the first to be taking off to reach China-like speed for the current government post elections. The reasons are basically simple. It only needs to make requests and agreements while the responsibility to ensure deliverables is expected by other ministries and departments. Yes, a lot of groundwork is required to sign agreements but the same is basis an ‘in principle’ broad consensus within respective departments and ministries or in the group of department/ministries led by high office. The actual implementation to thrash out nitty-gritty takes much longer and is countered with sometimes perennial blockages or movement to a different set of priorities. Hopefully, the neighbours like Nepal have the capability to involve Indian businesses who are adept in shaking the domestic bureaucratic lethargy including politically inclined minds to get the decisions that favour the respective investment projects/Joint ventures by working their way through byzantine alleys of India’s bureaucratic complex.
The Government Policy Watch
By Amit bhushan Date: Aug. 5
th
2014
The Foreign Ministry in India seems to be the frst to be taing o! to rea"h
#hina$%ie s&eed 'or the "urrent go(ernment &ost e%e"tions. The reasons are
basi"a%%y sim&%e. It on%y needs to mae re)uests and agreements *hi%e the
res&onsibi%ity to ensure de%i(erab%es is e+&e"ted by other ministries and
de&artments. ,es- a %ot o' ground*or is re)uired to sign agreements but the
same is basis an .in &rin"i&%e/ broad "onsensus *ithin res&e"ti(e de&artments
and ministries or in the grou& o' de&artment0ministries %ed by high o1"e. The
a"tua% im&%ementation to thrash out nitty$gritty taes mu"h %onger and is
"ountered *ith sometimes &erennia% b%o"ages or mo(ement to a di!erent
set o' &riorities. 2o&e'u%%y- the neighbours %ie 3e&a% ha(e the "a&abi%ity to
in(o%(e Indian businesses *ho are ade&t in shaing the domesti"
bureau"rati" %ethargy in"%uding &o%iti"a%%y in"%ined minds to get the de"isions
that 'a(our the res&e"ti(e in(estment &ro4e"ts05oint (entures by *oring their
*ay through by6antine a%%eys o' India/s bureau"rati" "om&%e+.
3e&a% *ith its heritage a"tua%%y re&resents a rather easier &o%i"y "ha%%enge.
7ith its &eo&%e ha(ing shaen o! an autar"hy 8i.e. their erst*hi%e monar"hy9
are un%ie%y to be in"%ined to*ards another #hina %ie or Mao %ie autar"hy. In
that sense *ith the "urrent regime/s agreement o' not im&osing any medie(a%
re%i"0(estige 'orm o' go(ernment on its &eo&%e in de'eren"e to its ideo%ogi"a%
ba"ers: did the tri" o' yie%ding a &ositi(e out"ome 'or the &resent
go(ernment. The su""ess o' the (isit by "urrent ;M *i%% de&end u&on the
abi%ity to ee& the .ideo%ogi"a% 'ountains see&ed in the great 2indu Traditions/
under "he" and "ontinue to &ush businesses to tae &ositions on &ro4e"ts o'
mutua% interests in both "ountries ba"ed by the "a&ita% su&&ort and business
agreements0ru%e based su&&ort. This o' "ourse *i%% re)uire he%& to su&&ort the
bureau"ra"y in the 3eighbourhood to de(e%o& "a&abi%ities and "a&a"ity to
hand%e "om&%e+ business &ro4e"ts and &ro&osa%s and tae suitab%e
de"isions0a"tions in %ine *ith g%oba% business norms be"ause most su"h
&ro4e"ts *i%% sti%% "ontinue to de&end u&on fnan"ia% su&&ort 'rom g%oba%
in(estors rather than "a&ita% star(ed India/s o*n "a&ita%. And o' "ourse it *i%%
be *at"hed *ith interest that *hat the %arger "ountry gets in return rather
than 4ust the businesses gaining on su"h o&&ortunities in su"h re%ations.
The 'oreign ministry o' "ourse seems to be turning its head to*ards more
"om&%e+ neighbours %ie Burma- Bang%adesh and <ri =ana *hi"h is good
sin"e it &uts &riority to se"ure neighbourhood 8*hi"h is a%so a"hie(ab%e9
be'ore mo(ing on to other %o'ty goa%s. By mo(ing a*ay 'rom ;a- #hina or ><
'o"used and being more ba%an"ed in identi'ying o&&ortunities *here 'or*ard
mo(ement is &ossib%e is a good a&&roa"h and *hen a&&%ied to neighbour- it
"an yie%d good di(idends due to trade0tourism0business &ro+imity. 7hat the
ministry a%so needs to do is to in(o%(e other ministries to a"tua%%y "ra't some
immediate 8medium to %ong term or 1$5 years9 de%i(erab%es. =ie &romoting
outbound tourism is sub4e"t to the neighbouring "ountries &o%i"ies but
&romoting inbound tourism in India is sub4e"t to domesti" &o%i"ies. The
3e&a%ese "iti6ens "ou%d be su&&orted in their )uest to (isit &%a"es %ie Badri$
?edar- Ayodhaya or @aya or 'or ?umbh0Ardh$umbh 8most%y seasona% tra(e%9
by *oring a%ongside .states/ and .tour o&erators/ to e(o%(e ser(i"e o!ering
*hi"h is suitab%y &ri"ed and assures a me"hanism 'or sa'ety to the (isitors.
<imi%ar%y moda%ities need to be *ored out 'or trans&orters to *or a"ross
borders to smoothen trade 'urther *ithout "om&romising on interests o'
Indian trans&orters. This *ou%d re)uire the ministry o' sur'a"e trans&ort
"reate "oordination de&artment 'or su"h agen"ies and states- rather than 4ust
'o"using u&on in'rastru"ture and the booty in(o%(ed thereunder. A suitab%e
&eo&%e orientation in the ministry to ensure a"tua% ser(i"e de%i(erab%e to
&eo&%e in "ost e!e"ti(e manner *i%% be a &aradigm shi't rather than %ea(ing
this so%e%y to entre&reneurs0;<> or bureau"rati" 'a"i%itation agen"ies a%one
*ho then ."reate0or"hestrate/ "ustom A trade &ro"edures and India/s state
run me"hanism *hi"h o'ten remain %amedu" "onfned to the borders. A
suitab%e ma"hinery to thrash out these moda%ities and *or u&on to &romote
these &eo&%e to &eo&%e "onta"ts a%ongside su&&ort to mutua% in(estments and
businesses *i%% *or a %ong *ay. India *i%% a%so need to ee& in *at"h the
im&a"t o' &orous borders *ith these nations ha(ing im&a"t on smugg%ing o'
go%d- e%e"troni"s et". or nar"oti"s- 'ae "urren"y- terror et". *hi"h "ou%d
im&a"t domesti" industry 0 business en(ironment signif"ant%y and thus
e(o%(e me"hanism to dea% *ith su"h issues.
B' interest *i%% be ho* the re%ations *ith %arger neighbour and region *ith
"ountries %ie Burma and Bang%adesh e(o%(e A in &arti"u%ar untying the
Bang%adesh to mo(e 'rom under de(e%o&ed to a de(e%o&ing e"onomy. India
*i%% a%so need to dea% *ith high%y "ontentious boundary- *ater and
immigration issues besides other things su"h as ty&hoon disasters-
e&idemi"s- nar"oti"s- 'ae "urren"y issues *hi"h are a regu%ar 'eature. India
may ha(e to mo(e out o' su&&%ying ri"e A other 'ood stu! to Bang%adesh and
hando(er that ro%e to Burma 8under suitab%e bi0tri %atera% trade 'a"i%itation
me"hanism9 *hi%e it 'o"uses on .trading/ mi%- meats et". and o!er su&&ort to
de(e%o& these mu"h %arger marets e(o%(e a mutua%%y benef"ia% maret
me"hanism to trade. <u&&ort to he%& e(o%ution o' bureau"rati" "a&abi%ities A
"a&a"ities in nurturing mining- in'rastru"ture and ser(i"es in Burma and
'oster suitab%e business a"ti(ities in Bang%adesh might be re)uired 'or
su""ess'u% "on(ergen"e o' interests. This may in(o%(e hoisting g%oba%
"om&eten"y 'or %ight (ehi"%es %ie t*o A three *hee%ers- >tensi%s maing et".
in Bang%adesh in"%uding "ustom e%e"troni"s and e%e"tri"a% assemb%y besides
their ro%e in readymade garments and %o* end 'oot*ear. De(e%o&ment o'
Cegiona% Cai%*ays- Coad net*or- ;i&e%ine net*or and 7ater*ay 8in%and and
near$shore9 trans&ortation- Te%e"om net*or in"%uding internationa% (oi"e A
data mo(ement- and the need to get the energy e)uations right *i%% be some
o' the intri"ate issues. Bang%adesh may a%so at some stage *ant to "om&ete
in em&%oyment intensi(e 4e*e%ry businesses but that *ou%d re)uire a
dramati" im&ro(ement in interna% se"urity- g%oba% "onne"t besides other
su&&orti(e 'a"tors. India may *ant to %ay 'oundations to e+tend its hand in
e(o%(ing a regiona% Cu&ee based Trade sett%ement me"hanism as *e%% as
touring "he)ues0"ards at some %ater stage.
India may a%so *ant to 'o"us on de(e%o&ing a sea "onne"t *ith the Indian
B"ean Is%and nations su"h as Ma%di(es- <ey"he%%es- Mauritius- Mo6ambi)ue in
"on4un"tion *ith say- <outh A'ri"a to o!er "onne"tion (ia #ruise- =iners- bu%
"argo 8in"%uding 'ue% %ines9 and Air say (ia @oa or Mumbai. This *i%% de(e%o&
to and 'ro tour and trade me"hanism and he%& strategi" outrea"h and
regiona% se"urity e!orts. India/s su&&ort to in(est in ser(i"es businesses in
these "ountries "ou%d be a "%in"her be"ause the u&&er "rust Indian A <A
"ustomers are &retty soon going to outnumber other "%iente%e in these
"ountries as India/s e"onomy taes o!. <u"h a mo(e *i%% a%%o* 'or e+&ansion
o' "or&orate a"ti(ities- baning ser(i"es and trading o&&ortunities 'or India
besides he%& shoring u& maret attra"ti(eness o' India due to su&er si6ed
regiona% hub ro%e 'or a %arge but %o* in"ome &o&u%ation *ith edge in
&rodu"ing ser(i"es and manu'a"tures *here India "an in"reasing%y tae u&on
hi$te"h and hea(y Industria%s- mass manu'a"turing in"%uding 'or domesti"
"onsum&tion- inno(ation &rodu"ts- "ement- stee%s- te%e"om e)ui&ment-
shi&&ing- rai%*ays and "a&ita% goods and a (ora"ious a&&etite 'or
"ommodities.
doc_742707585.doc