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June 2010 Edition
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Editor's Note
From the Editor-in-Chief,
June, the halfway mark in a year, sprouts impulses for change. The G20 Summit
taking place in Toronto in the last week of June is spreading hope in the world about
collective measures that may contain the contagion of collapsing national economies
under tighter regulation and enlightened policies. India may not be the fixer in
the whole show. Nevertheless, it tows a pragmatic line as the advocate of rational
regulation than a predator of sorts trying to annihilate the passion of the banking
sector through undue penal taxes. The outcome of the Toronto Summit is expected
to bring more clarity to the scenario and it remains to be seen whether Banking Tax
will become a reality or not. The Seoul Summit of G20 in November may bring a
fresh debate on tools of regulation.
The Cover Story on India-US Strategic Dialogue looks at the niceties of Indo-US
relations and its implications for the subcontinent. The expected visit of President
Obama to India in November this year will be the next occasion to intensify the
ongoing talks. The Indo-US CEO Forum also had its meeting in Washington in the
third week of June bringing together business and industry of the two sides, adding
a new element to the cooperation.
The current edition carries an important interview—the Vice Minister for Trade and
Industry of the Czech Republic Milan Hovorka visited India last month and he spent
time with Diplomatist, for an interview. The minister outlined the emerging avenues
of investment in India particularly in the energy sector where global companies can
take part. His observations are important.
In the aftermath of the visit of the Sri Lankan President Mahinda Rajapaksa to
India, we are carrying an article on India-Sri Lanka relations written by an expert in
Sri Lankan affairs who traces the vicissitudes in ties through the last two decades.
India had a string of visitors in Presidents of South Africa and Turkmenistan who
reached out to the business communities in India besides holding diplomatic parleys.
Our article on Tajikistan gives some good insights about the Central Asian country
and its ties with India including defence cooperation.
The special supplement on Seychelles also celebrates a visit—that of its President
who visited India in early June. The supplement has captured the beauty of Seychelles
in many words and the piece on tourism is a must read.
The France-Africa Summit celebrated its silver jubilee and the French President
Nicholas Sarkozy made some eloquent pronouncements and reached out to Africa.
In the business section, the Pharma sector is discussed in detail where an array
of acquisitions by foreign players has heightened the sector’s global profile. The
revival in the electrical sector is also reported in the business pages. There is more.
So, read on….
G Kalyan Kumar
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June 2010 Edition
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US-INDIA STRATEGIC DIALOGUE: Of Warm Gestures and Irreconcilable Positions
Strategic partnership mandates compromise and vision from both the partners
The United States and India are among the world’s top five greenhouse gas emitters and have been victims of extremism, and are thus vital to solutions on climate change and terrorism.
Read the Article.
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India is a Top Priority Country: Milan Hovorka Mr. Milan
Hovorka, Deputy Minister of Industry and Trade,
Czech Republic visited India recently. In an
exclusive interview with G. Kalyan Kumar,
Editor-in-Chief, Diplomatist, the Minister looks
at the various avenues of cooperation between
the two countries. Subscribe to Read.
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Indian Vice President Visits Czech Republic
India’s Vice President M. Hamid Ansari paid a state visit to Czech
Republic for three days from 7 June and gave a new impetus to
the bilateral engagement between the two countries. During the
visit, three agreements were signed in Prague.
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Inclusive Face of
Global Economy
and More
In today’s world, G20 has emerged
as the most inclusive face of global
economy. Since its inception in the
mid-1970s, the G7 acted as the informal
club steering global economic and
financial issues. However, the last couple
of decades saw the world veering around
to the view that G7 lacked political
legitimacy as representation from the
emerging players in the world economy
was skewed. These critics have claimed
that although the G7 was an informal
global steering committee, it needed to
reflect the shift in global economic power
in recent decades.
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G20 & ECONOMIC RECOVERY: The Long Road to Toronto
Key G20 Leaders Stephen
Harper, Prime Minister
of Canada, Lee Myung-
Bak, President of Korea,
Barack Obama, President
of the United States, and
Nicolas Sarkozy, President
of France outlined a
broad agenda for the G20
Summit in which faster
economic recovery is
priority number one.
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G20 and TRADE ISSUES: Revamping Positions on Doha Round Critical
For the past several months,
the G20 Summit countries have
worked together to contain the
global economic crisis and encourage a
sustainable economic recovery. As part
of these efforts, the G20 leaders have
sought to constrain the protectionist
pressures that invariably arise during
times of economic stress and to maintain
an open international trading regime. The
G20 trade agenda as enunciated in the
three summit declarations has covered
two specific trade actions: a ‘standstill’
on new protectionism and a charge to
complete the Doha Round of multilateral
trade negotiations. Subscribe to Read.
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India for Tighter Regulations:
Resists Bank Tax
India’s stand is that
instead of a bank tax,
regulations for the
banking sector should
be strengthened.
Finance Ministry
sources said that
since Indian banking
regulations were quite
prudent, the view was
that there was no need
for imposing any tax on
banks in the country.
Subscribe to Read.
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India-Sri Lanka Bilateral Relations: The Indian Reality in Sri Lanka’s Existence
The importance of the Indian factor in
Sri Lanka’s external relations is best
evidenced in the fact that Sri Lanka
is simply indescribable without reference
to India. An island in the Indian Ocean, just
south of (or off) the Southern shores of India,
all descriptions of Sri Lanka are a variant of
this because none else is possible. The island
of Sri Lanka is defined by its placing, and
that placing is in relation to and proximity
to India. Subscribe to Read.
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BILATERAL NOTES
India-Thailand trade to touch US$10 billion in 2012
Colombia Polls: Juan Manuel Santos Elected President
India, South Korea may sign Nuke Deal
India-Australia hold talks on Energy Sector
Canada, India to sign key agreements during PM’s Visit
India-Syria to Increase Bilateral Trade
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25th AFRICA-FRANCE SUMMIT: A New Brotherhood
The 25th France-Africa held in Nice
was a grand event. About 40 heads
of state including South Africa
attended the two-day Summit that began
on 31st of May and ended on 1st of June.
Besides the French speaking African
countries (former French colonies), the
African Union Commission, the EU, La
Francophonie, the FAO and the World
Bank attended the summit at the beatific
ambience of Nice in southern France.
The summit coincided with the 50th
anniversary of independence for 14
former French colonies.
Subscribe to Read..
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TURKMENISTAN PRESIDENT’S VISIT:
Focus on Cooperation in
Energy Sector
Mr. Gurbanguly Berdimuhamedov,
the President of Turkmenistan,
paid a State Visit to India from 24-
26 May 2010, during which the President
of India and the President of Turkmenistan
held discussions on matters of mutual
interest. The visiting President and the
Prime Minister of India chaired delegation
level talks and exchanged views on a wide
range of bilateral, regional and global
issues. The Vice President of India and
other senior political leaders called on
the President of Turkmenistan.
Subscribe to Read..
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South African President Jacob Zuma Visits India
President of South Africa Jacob Zuma
paid a three day visit to India from
2 June, starting from Mumbai. This
was his first visit to Asia, after coming
to power. After holding talks in New
Delhi on 4 June, South African President
Jacob Zuma and Indian Prime Minister Dr.
Manmohan Singh expressed that the two
countries would cooperate more closely
on issues such as Climate change, Reform
of global institutions and Economic issues.
President Zuma said he wanted to build
on “historic ties with India, which was a
strong supporter of the struggle waged
against apartheid in South Africa”.
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INDIA-TAJIKISTAN: Enduring Partner in Central Asia
For India, all the five Central Asia states
pose huge significance due to their
vital geo-strategic location. The five
landlocked republics – Uzbekistan, Kazakhstan,
Kyrgyzstan, Tajikistan and Turkmenistan are
in India’s extended neighbourhood. The
Central Asian region as a whole not only
connects Asia to Europe, but is also rich
in natural resources. It occupies a special
place in India’s foreign policy priorities.
Its importance to India today is not only in
their civilisational aspect but transcends to
geopolitical and economic domains.
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PHARMACEUTICALS: MNCs Tightening Grip
In the last couple of years, the pharma
sector saw an increase in the number
of acquisitions made by multinationals.
In 2008, two Indian pharmaceutical
companies were acquired from abroad,
Ranbaxy by the Japanese firm Daichii, and
Dabur Pharma by Singapore’s Fresenius
Kabi. The buyouts, including acquisition
of Piramal Healthcare’s generic medicine
unit by US based Abbott Laboratories for
US$3.7 billion seeded many gains for these
companies, notably a market share that
soared to 25 percent from 15 percent.
Analysts expect that pharma MNCs will
maintain this acquisition spree and soon
control nearly 50 percent of the US$9.5
billion domestic retail drug market.
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ELECTRICALS: SEEING GOOD TIMES
The electricity sector in India is one
of the largest developing sectors.
With the opening up of power
generation and related services for
the private sector investments, a huge
market opportunity has been opened up.
And the industry is seeing good times,
after a lull of almost two years.
Subscribe to Read.
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