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Introduction
India is poised for an historical opportunity of emerging as a
dominant player in the world economy and polity. The vast untapped
potential of the country in its multiple dimensions has been
universally realised, recognised and acknowledged. The Indian diaspora
is becoming increasingly assertive and is seen as an engine of growth
and prosperity even in the West and in Europe. India’s strengths are
ironically its vast population, educated youth, appetite for energy
and consumer goods and the growing military power. The long and hard
battle that the country has waged to emerge as a resilient democracy,
overcoming many ideological and militant revolutions, has also paid
rich dividends. India today is a stellar example of “establishing
democratic rule in the Third World”. This evokes memories of India
poised as it was in the 19th Century, a jewel in the British Crown,
sought by colonial powers, Britain, France and Russia. This was the
period of the Great Game, immortalised by writers as Rudyard Kipling.
Today it is a player in the emerging great game of resources, trade
and economy. The dimensions of this New Great Game are, thus,
multi-spectral, yet there is a security dimension to it which is
considerably significant and needs greater exploration.
Aim
The aim of this paper is to define security dimensions of India’s
economic and political growth from the perspective of the “Great
Game”.
The Great Game
The Great Game was the 19th Century battle for the control of Indian
wealth. The Russian empire surreptitiously supported by the French
increasingly forayed across Central Asia and the Indo- Afghan frontier
in an attempt to reach the gates of the Indian sub continent. The
British, no mean empire builders, employed great subtlety, subterfuge
and intrigue to combat this threat. Local leaders and intelligence
guides, adventurists and powerful war lords were mustered through
typical British skills at organisation to beat the Russians in a
battle of wits and stratagem over an extended period. A number of
Indian military commanders and intelligence agents had a prominent
role to play in this Great Game. These were Maharaja Ranjit Singh,
Zorawar Singh, Mohan Lal besides renowned British figures,
Younghusband, Pottinger and Arthur Connolly.
The Great Game was marked by an aggressive forward policy by the
British as against the advice of the “masterly inactivity school”,
which did not want to stir a hornet’s nest.1 It was adventurist
nationalism at its best. There was limited use of conventional armed
forces but reliance on local forces, sabotage and subterfuge,
Information warfare, deception and deceit were effectively used to
gain positional advantage. It had a primarily geographic dimension,
located on vast wasteland of Central Asia.
The new Great Game on the other hand is a conflict over resources,
energy including oil, nuclear and hydro power. Strategic minerals,
trade, information technology and knowledge are all goals to be sought
by the players. The size of a country’s market and demand will also be
significant in attracting investment and growth. Defence will be an
important constituent of the Great Game because India’s military
capability is envied and its arms build up vied by multinational
corporations. The geographical landscape of these manoeuvres will be
spread over Central, West, South and South East Asia, and the Indian
Ocean. The aggressive competitors will be the United States of
America, China, Russia and India. The benign competitors are envisaged
as the European Union, Japan, Australia and other large states. Non
state actors both commercial and disruptive terrorist organisations
will have an important role to play in this Great Game.
India’s Strategic Strengths
India’s strategic strengths, which enable it to participate in this
New Great game are now well established. The peace and prosperity of a
multiethnic, multireligious democracy, which has succeeded in
overcoming the vestiges imposed by partition is the country's greatest
strength. India has lately made rapid progress in the quality of
governance. Fall in the failed states list from 79 to 93 in just one
year is one indication.2 The jump in competitiveness index of states
from 39 to 28 is another. These are all indications of long term
success benchmarked against global states. India’s demographic
strength is indicated by the Malthusian dividend rather than the bomb
of 500 million working age population by 2025. This is the most
productive populace which is enterprising, risk taking and outgoing.
The intellectual capital in the big league information and knowledge
age signified by the Business Processing Outsourcing segment
graduating towards the value added knowledge sector is fast denoting
the country’s strength. This is also indicated by the 2.5 million
graduates every year who pass out from Indian colleges with
approximately 250,000 engineers. This signifies 28 per cent of the
available global work force as opposed to 11 per cent of China.3
India is likely to be the third largest economy by 2030. It has $
160.677 billion foreign exchange reserves-one of the largest amongst
developing countries. The low cost of compensation of production
workers in the manufacturing sector which is below
$ one per hour as opposed to developed nations as the USA, which is
above $ 20 and the European Union, above $ 25, provide it manifold
advantages. Then there are 10 to 30 million people of Indian origin
living across the globe, equivalent to the population of Australia or
Canada, which form a powerful source of influence. Indian industrial
strength is signified by Mittal Steel, which has seen the French giant
Arcelor running for Russian cover. The automobile and auto ancillary
sector is another key strength of the country. India is one of the
largest diamond traders with an industry value of Rs 70,000 crore per
year. Thus, we see in India a resource hungry and demand heavy state,
with over one billion population. The energy, consumer and infra
structure appetites spell great opportunities for Indian and global
corporations.
India’s Vulnerabilities – the Security Dimension
India’s vulnerabilities in the New Great Game, denoting crisis created
by opportunities are that growth and disruption will be concomitant.
There are a large number of failed states in the Great Game area as
well as on the periphery of Indian territory. Resources are best
acquired from the near vicinity and all land and sea routes pass
through or are astride our neighbouring states. India is also
surrounded by states that are either openly or ideologically
antagonist as well as powers skeptical of the country’s growth. These
are likely to create hurdles towards smooth attainment of our
objectives. The perils of the New Great Game were evident with the
kidnapping and killing of two Indians in Afghanistan. Working on green
field projects of infra structure development in the war ravaged state
of vital significance to India, Kutty and Suryanarayana were brutally
killed by the Taliban, allegedly at the behest of the Pakistan's
intelligence agency, the ISI, which demanded that all Indians in
Afghanistan leave the country. The outrage in the country was
understandable, but this is the price we will have to pay to
participate in the Great Game. The cost, however, can be reduced
through better awareness of the threats and being better prepared for
it.
The internal security dimension of the country is no less challenging
as it affects economy and growth. India’s rural landscape is a vast
market of 128 million households with limited spending power. The
urban market is roughly 45 million households with large paying
capacity. However, the problem lies in over 200 districts of the
country in the grip of severe law and order strife bordering on
militancy. Some say the country is in a state of stable anarchy.
Others give India’s internal security, two points on a 10 point
scale.4 The increasingly para military nature of militancy in the
Maoist dominated so called Compact Revolutionary Zone is a cause of
serious concern as it is showing signs of a, “state within a state”,
with its own system of justice, taxation and governance. The
organisation of Kashmiri militancy is at a lower level, a form of
networked terrorism, but has a higher degree of political sensitivity
and lethality. On the other hand, sporadic violence mars the landscape
in the North East with splintered terrorist groups operating at will
in many parts of the hilly areas. Ironically, all these areas are rich
in natural resources and are also attractive tourist destinations.
The above factors denote that expansion of national power in the
economic sphere has to be accompanied by growth of security power. The
East India Company flourished solely because it was supported by the
British state. The dimensions of security power in modern times will
be kaleidoscopic where military will be the primary but not the only
means. While soft power is likely to dominate, the varied dimensions
of military capabilities need to be understood. There are
environmental and economic proportions to this threat which need
consideration. Societal security is also of increased importance with
approximately 30 per cent of the Indian population living below the
poverty line, 50 per cent of population in Indian cities living in
slums and water and electricity, a perennial problem both in urban and
rural areas, the imbalance needs to be specifically controlled.
We live in a Hobbesian World, “poor, nasty, brutish and short”.
But there can be no retreat from this reality. As the weekly Economist
has said with reference to terrorism, “It is a dangerous illusion to
suppose that another retreat by the civilized world would satisfy the
appetite of the terrorists and get them to leave us alone – such a
retreat would convince the terrorists that free nations will change
... policies, forsake ... friends, and abandon ... interests whenever
... confronted with murder and blackmail”.
Energy Security
Energy security will be a key factor in the New Great Game. Energy
security entails long term measures to adequately maintain the
required supply of energy resources both domestic and imported in the
country at all times and at minimum cost. This includes not just
security of the sources of supply but other issues such as extraction
and refining, economical purchase through buyer’s power, distribution,
environmental effects and avoiding manufacturing fraud. The US spends
$ 50 billion a year on oil security deployments in the Gulf Region.
India’s energy requirements are gigantic. The requirement of power by
2031-32 is estimated to be 7,70,000 MW. With oil price threatening to
breach the $ 100 per barrel mark and depleting resources of coal, the
energy mix of hydro, oil, gas, coal, nuclear and unconventional
sources has to be carefully strategised to enable stable long term
energy security. Alternate energy sources will provide 8300 MW by 2009
while nuclear energy is targeted at an ambitious 40,000 MW by 2030.
Notwithstanding the above, gas and oil will be the prime constituents
of the energy mix with gas forming 25 per cent of this overall
combination.
70 per cent of India’s crude is imported and all of it comes by sea.
India is expected to be the largest importer of oil by 2050 and our
oil consumption is expected to rise to 150 million tons by 2020.
India’s gas requirements by 2024 are said to be 125 billion cubic
metres (BCM) of this 52 BCM are likely to be available locally while
the balance of about 75 BCM will have to be obtained from abroad. 70
per cent of the gas reserves in the World are said to be in North and
Central Asia and the Gulf countries. The same is true of oil reserves.
Russia is another important player in the oil and gas energy space.
World polity is increasingly focused on the energy resources in the
Caucasus with the BTC (Baku-Tbilisi-Ceyhan) Pipeline commissioned on
28 May 2006 and the United States politically undercutting Russian
influence amongst CIS nations with the formation of the Organisation
for Democracy and Economic Development in Ukraine. Thus, we see the
opening stages of the new Great Game unfolding.
Building strategic relations with the countries of Central Asia and
the Caucasus along with West Asian states to include Iran, Iraq when
it gets going fully, Kazakhstan and Turkmenistan is of critical
importance. Myanmar too will be a key energy ally of the country.
While our focus has also been in obtaining oil rights in countries as
Syria where a 50:50 partnership between Oil and Natural Gas Company (ONGC)
and China National Petroleum Corporation marked a new beginning as
also in Sudan, Sakhalin and the Nam Con Son Basin in Vietnam, these
will only enlarge our strategic capability and are too far out to
provide continuity in supplies. For this we have to depend on the
immediate neighbourhood. Thus, the SAARC region including Afghanistan
is of considerable significance to the country for oil security.
Transportation of oil and gas will be multi modal. If it comes by sea,
the security of the sea lines of communications assumes importance. In
case it comes through oil pipe lines, and this appears to be the way
ahead, these pass through antagonist states as Pakistan to the West
and Bangladesh in the East; more over Balochistan, a province of
Pakistan is seeing rising insurgency which is beyond the control of
the Government in Pakistan. Under such a situation energy security
assumes critical importance. The experience in Assam where oil
pipelines have become a target for anti national elements also rings
an alarm. The vulnerability of pipe lines in other countries some of
which are antagonists is also a cause of concern. While diplomatic
measures may provide a modicum of security, some of it would involve
physical guarding of assets which may have to be carried out through
proxy forces as the Americans have done in BCT. The key pipelines,
which are in the offing in the Indian context are as follows:-
| (a) |
TAPI. The
Turkmenistan–Afghanistan–Pakistan gas pipe line project. The
length is 1921 kms to Multan. This has the backing of the Asian
Development Bank. The cost is $ 3.5 billion and the extension to
India is likely to cost $ 600 million. It will deliver 55 MCM.
1200 kms of the route is sensitive. |
| (b) |
IPI. This is the Iran–Pakistan–India gas pipe
line which is 2720 kms long with a cost of $ four billion and
delivering 90 MCM per day. 760 Kms will pass through sensitive
areas. |
| (c) |
MBI. The Myanmar–Bangladesh–India pipeline,
with a total length of 897 kms, the cost is $ one billion. It
has a capacity of 33.5 MCM per day. 289 kms passes through
sensitive areas.5 |
Another option for laying pipe lines is by outflanking antagonist
states. The Myanmar pipeline is proposed to bye pass Bangladesh and
the Zaranj–Delaram route via Iran is under construction to provide an
alternative approach to Southern Afghanistan, given Pakistani
sensitivities to Indian forays into its back yard. All these issues
highlight the need for security.
India is also emerging as a refining hub with lucrative margins of $
two per barrel the highest in the World. Pipeline manufacture is also
an important area in which India is leading. The coast of Gujarat is
emerging as a key area. Its proximity to Pakistan and the internal
turbulence in the state is a cause of concern. Thus, the security of
the port areas and the sea lanes also needs some consideration.
Vulnerability of India’s off shore installations, which are said to be
worth Rs 175,000 crore, is also important as
68 per cent of India’s oil production comes from offshore resources.6
In terms of security from the vagaries of world oil price and cartels
as OPEC, the efforts initiated by the former petroleum minister, Mr
Mani Shankar Aiyar to form an Asian or a Sino Indian cartel free of
the New York Mercantile or the London Brent Crude Index needs to be
pursued with vigour. In India, Mumbai appears to be the ideal location
for such an Asian oil trading hub, given the strength of the financial
capital in equity and commodity trading and the dynamic investing and
trading community of the country.
Nuclear Energy
Nuclear energy is also assuming considerable significance given the
need for environmentally superior mode of production. With a target of
40,000 MW, the Indian nuclear energy potential is attracting a large
number of state and non state energy suppliers lining up for their
share of the pie. France is a key nuclear energy producer, so are
private players as GE, Areva and Westinghouse. The US interest in the
Indo–US Nuclear agreement needs to be seen from the perspective of
opening of the Indian nuclear energy market as of great commercial
interest for America. To that extent it can be reasonably assumed that
the outcome of the US Congressional approval to the Agreement will be
positive. International Thermonuclear Experimental Reactor project (ITER)
is a programme conceived by the United States, Russia, china, Japan,
Korea and the European Union to build a reactor with hot fusion. India
has been granted admission in this exclusive club. The large hardon
collider project is being built by the European Organization for
Nuclear Research (Organisation Européene pour la Recherche Nucléaire
commonly known as cern). ITER is to provide unlimited, clean and cheap
energy wherein one kg of fusion fuel would be able to produce the same
amount of energy as 10 million kg of fossil fuels. The reactor is
expected to be built by 2016.7 India thus needs to approach the
nuclear issue with growing strength and not diffidence. The countries
in question have an increasing stake in India’s energy market and will
veer towards granting it entry into the NSG shortly.
Hydro Power
With the turbulence in Nepal showing some signs of receding there
is a scope for improvement in relations with it, which is significant
from the energy point of view as it can be a major source of hydro
power for India to the tune of 43,000 MW which include the following
projects under consideration8 :-
| (a) |
West Seti Hydro Project. |
| (b) |
Upper Karnali. |
| (c) |
Pancheshwar. |
| (d) |
Sapta Kosi. |
| (e) |
Sun Kosi. |
| (f) |
Burhi Gandak. |
| (g) |
Kamla Multi purpose. |
| (h) |
Bagmati. |
The next significant facet of the Great Game is of economic security.
India’s potential is vast though it is still a small player in the
global economic sphere. The potential lies in prospects rather than
the present output. Market players consistently predict India’s rise
to the first three economies of the global order any time from 2030 to
2050 based on individual predilections. Suffice to say the potential
is largely unrealised so far. Some hard facts may be more relevant.
Indian exports were $ 120 billion in 2005-06, doubled in two years
from 2003-04. India’s foreign exchange reserves are $ 162 billion up
over 10 times in as many years from the doom faced by us in early
1990’s. Indian market size is also huge and a back of the envelope
calculation will denote that if the one billion population spends $
one a day average, it would imply $ one billion a day or $ 300 to 400
billion dollars a year. Thus the country is seen as a major point for
investment by global, national as well as multinational entities.
The security of trade through the sea is of considerable significance
for India’s economic growth. 90 per cent of India’s trade by volume
and 77 per cent of trade by value worth $137 billion is seaborne.
Indian shipping has registered 584 merchant ships making it amongst
the 20 largest maritime nations of the world and there are as many as
200 major and minor ports on India’s coast line. In terms of
international shipping, 60,000 ships transit through the Indian Ocean
every year carrying goods estimated to be over $1800 billion. Of $ 200
billion worth of oil coming through the Strait of Hormuz annually, $
60 billion worth passes through the Strait of Malacca, with
approximately 11 million barrels of oil moving through Malacca every
day.9 India’s geographical location and peninsular structure enables
it to dominate this area and ensure its security. The coast line off
Somalia, the Gulf of Aden, Bangladesh and Indonesia has emerged as
piracy infected areas of the World in the past one year or so. With
resurgence of Pakistan in the maritime sphere aided by China and
increased threat from piracy and crime on the high seas, security of
trade routes for economic growth is of considerable significance for
the country. An improved perception of security in this region will
boost our trade with Pakistan, Iran, West Asia and South East Asia
amongst other countries.
In the internal security sphere, economic growth is linked to
development of infra structure. The National Highway project is making
slow progress over the years and an additional 1113 kilometres has
been approved by the Cabinet recently. This is in some of the strife
prone areas. It needs an umbrella of security. In the air fields
segment, out of 454 airports in the country, 170 are non operational.
If these are developed it will generate growth of these areas so far
removed from development. So would the additional ports which are
being developed on the East as well as West coasts with Gujarat and
Andhra Pradesh taking the lead. This will provide considerable boost
to internal growth provided we are able to ensure security.
Another key issue in economic security is that resource rich states of
the country, Chattisgarh, Orissa, Bihar, Madhya Pradesh, Assam, Jammu
and Kashmir and the North Eastern States are under varied influence of
militancy. Most of these are rich in coal, iron ore, minerals, oil and
forest produce. The Bailadila mines in Chattisgarh which produced
15.75 Million tons of Iron ore earned a massive Rs 2100 crore profits
in 2005-06. Assam has produced five million tons of oil out of the 30
Million tons domestic production. 1.3 billion tons oil and 1.56
billion cubic metres of gas reserves are said to be in this critical
North Eastern state, while there are 55 oil exploration blocks on
offer. Internal security, thus, needs to be focused not merely on
political issues but also economic facets of stabilising growth.
In the international sphere, trade wars are imminent, with denial
regimes, trade barriers and sanctions followed by preferential funding
used as a route to foster interests by developed countries including
China of late. The flooding of goods from China is a stark reality
which the manufacturing lobby in India seems to have accepted. Perhaps
as it has only affected the small players, the toy and the lock
manufacturers it has been considered as a closed chapter. But the 1000
suicides in the Indian small scale sector is a cause for concern.
Measures as free trade regimes and economic alliances need to be
created to overcome these economic challenges. Indian companies such
as United Breweries are facing impediments in acquisition of foreign
entities as Taittinger while the NRI, Mittal is facing resistance to
acquire Arcelor and emerge as the largest steel maker of the World.
There is a need to provide some institutional props to our
entrepreneurs stymied by foreign protection interests.
Evolution of the Asian Monetary Union is a long way off. India will
have to devise a strategy to overcome these encumbrances and derive
major concessions based on the size of its strategic as well as retail
market. For instance the Indian and Air India deal for aircraft from
Boeing and Airbus is worth $ 9.3 billion, a number of other air lines
are also contracting aircraft. The large size of the demand needs to
be leveraged to advantage to gain concessions.
Smooth functioning of finance, stock markets, trade and currency with
a level playing field is another area of grave concern. The dimensions
of money laundering are said to be worth $ 800 billion to $ two
trillion per year globally. Loss of developing nations such as India
is said to be $ 50 billion per year. The underground economy is
sustaining terrorist organisations in Jammu and Kashmir as well as
other parts of the country. Counterfeit currency is another move in
the great game of undermining economic security of the country.
Pakistan is the usual suspect with multiple routing through Bangladesh
and Nepal. The volatility of the stock market is another cause of
concern. It is said that 85 per cent of the investment in the stock
market is speculative. Foreign Institutional Investors operating from
Mauritius are a key factor, some of whom are acting as fronts for
influential Indian players. The nexus of bankers-stock brokers and
finance companies continues to be exposed from time to time.
Corruption is another major issue of concern for economic security. Mr
N Vittal the former Chairman of the Central Vigilance Commission
termed it as financial terrorism. In the Mumbai blasts of 1993, RDX
was smuggled into Mumbai by a bribe of Rs 20 lakh leaving 200 plus
dead, while in a recent incident, in Russia, explosives were smuggled
on aircraft by paying a bribe of $ 16 or Rs 650/- leaving over 300
dead. In Jammu and Kashmir the cost of a grenade being thrown on a
vehicle is sometimes ludicrously low as Rs 150/-. This in turn causes
major social disruption in the country as seen post the Mumbai blasts.
Thus we see that while India has great economic potential, its
canalising towards effective contribution to stability can be achieved
by measures to secure its vulnerable outposts.
Space is another area where the country has considerable leverages in
the New Great Game. The budget of the ISRO is $ 700 million a year,
with most of it in capital intensive development activities. The space
field is an internationally integrated one. Thus international
participation is seen in projects as the Chandrayan moon mission in
2007 – 08. There were 30 international responses when the project was
floated for international participation. While an outer space treaty
exists which denies national sovereignty over outer space, there are
threats which arise in space on issues of geosynchronous orbiting.
Tonga has already declared rights over its geosynchronous space in
which these orbits operate, as also other equatorial countries are
planning to do so shortly. Exploitation of the moon may lead to
conflicts over mineral and other resources. The preparedness of the
country to face such challenges in the realm of space is unknown. The
much vaunted Aero Space Command could perhaps provide some focus of
appreciating the threats which may arise from space exploration,
presence and utilisation.
Indian arms build up has a security and economic dimension. While it
would enhance our deterrence it would also provide a boost to economic
growth in the manufacturing sector. India’s defence budget appears to
be creeping towards the magical
Rs 100,000 crore or $22 billion. The distribution is likely to be
50:50, revenue and capital. This will imply an arms accretion of $11
billion per year. The principle beneficiaries will be the Indian Navy
and the Indian Air Force, which is aiming to be a precision strike
force by 2015. The Indian Artillery is slated to acquire 1600, 155 mm
guns in the next 15 years. The list of major Indian arms acquisition
is impressive as given below10 :-
| (a) |
8 Maritime surveillance aircraft. |
| (b) |
6 Mid air refuelling aircraft. |
| (c) |
80 Medium lift helicopters of the mi 17 class. |
| (d) |
66 Hawk advanced jet trainers. |
| (e) |
3 Airborne warning and control systems. |
| (f) |
126 fighters for the Air Force. |
| (g) |
60 advanced light helicopters. |
| (h) |
Light combat aircraft. |
| (i) |
Intermediate jet trainers. |
| (j) |
Medium transport aircraft in the 15 to 20 ton
class. |
| (k) |
66 hawk jet trainer – Rs 12,000 crores. |
| (l) |
Aircraft Carrier Gorshkov – Rs 12,000 crores. |
| (m) |
Phalcon AEW from Israel – Rs 10,000 crores. |
| (n) |
24 diesel powered submarines. |
| (o) |
The helicopter acquisition list is also very
impressive. the Army Aviation is seeking 60 helicopters off the
shelf and 137 from HAL at a cost of $ 500 million. The total
bill is of $ 1.5 billion and has also projected a requirement of
500 attack, high altitude reconnaissance and medium lift
aircraft. |
| (p) |
The Indian Coast Guard is bidding for 60
helicopters by 2017. |
| (q) |
The IAF is bidding for 80 MI 17 class, while
the Navy is negotiating for 16 helicopters for anti submarine
warfare to replace the older Sea Kings. |
The economic dividend lies in government policy of 30 per cent
offsets, which is relatively modest as there is more leverage for
bargain in strategic deals. The offsets would imply that foreign
companies need to outsource approximately 30 per cent components to
Indian industry, implying massive potential for growth in the
country’s manufacturing sector. Are we exploiting this strength enough
to gain maximum advantage from our vast defence import market? This is
a question which needs to be pondered over. Aggressive price
negotiations employing sophisticated tools and expert advice are
called for. Any savings accrued would provide additional resources for
development in other areas. We do not seem to be doing enough in this
sphere. Indian companies are also increasingly building up their
defence production capacities. BEL, BHEL, BEML and other public sector
companies are leading equipment producers. Larsen and Toubro and TATA
group are manufacturing 40 Pinaka MBRL each while Tata group has shown
interest in other areas of defence manufacturing. India has also
embarked on an ambitious missile production programme. The BrahMos
Cruise missile can be produced at the rate of 400 missiles per year
and the scale is over and above the indigenous requirement. The IBSA
route adopted of cooperation between India, Brazil and South Africa (IBSA)
in three different continents may provide us an entry into the
lucrative South American and African defence market.
|
IT AND TECHNOLOGY DIVIDEND |
The trend in the IT industry denotes a movement from stand alone
computers to the internet to mobile, “internet”. Mobile phones are
increasingly used for political as well as commercial activities
including social disruption, economic transactions, entertainment,
general information and finally communications. Blog power exclusive
to the internet is also extending to mobile phones. India by sheer
force of numbers today can colonise the global IT software and
services industry. Though its overall share is still very low. IT
exports of the country are Rs 100,000 Crore or $ 22 billion. Software
exports are slated to increase to $ 60 billion by 2010. China has
exports of $ 180 billion while the US exports are $ 149 billion. We
have a lot to catch up.
However, there is increased focus on high end work and we are no more
seen as software coolies. There are increased signs of reverse off
shoring with the Taiwan Institute of Information Industry setting up
off shore development in Chennai’s Olympia Park and INFOSYS hiring 300
Staff from the US Universities.
The key area of concern once again is security which has multiple
dimensions today to include technology disruption, economic anguish as
well as social mayhem. Mobile networks are increasingly vulnerable as
200 viruses have been discovered in this space. The vulnerability of
the internet is well known. There are 17 million users of the internet
in the country today and soon it will be the number one internet using
nation in the World that is if the mobile revolution does not overtake
the internet one. The large number of B2B AND B2C transactions on the
internet and on mobile phones enhance vulnerability of these media. We
have to expand beyond the present policies, organisations and
implementation to ensure fool proof security of our information
sphere.
India is doing well in the field of space, nuclear, energy,
telecommunications, web services, bio technology, robotics, nano
processes and information. In the information technology field alone
we are having major advantages in RFID, remote infra structure
management, knowledge process outsourcing and intellectual property
creation.
Media Power Supplementing the Great Game
A quote from His Highness the Dalai Lama on media power appropriately
brings out the impact of modern media “The power of the media whether
direct or indirect is a real power which acts on us, which modifies
our behaviour, our tastes and probably our thoughts.” Media will have
an increasing role to play in supplementing the Great Game.
Information power can be used for national growth, control social
disruption and ensure balance. However, this is an emerging field and
any effort for attaining balance are being seen as control, by the
media, inviting adversarial reactions. On the other hand the,
“bollywoodisation” of news and hidden camera journalism has replaced
respected personalities as Prannoy Roy with sensational crime
reporters of all hues. Thus the space for creating informed opinion
amongst the masses has considerably shrunk. Public opinion is being
manipulated by commercial and vested interests to force the government
of the day to act against national interest. Kandahar being one
example. Such a situation will not enable us to play our cards
correctly in the New Great Game. The media will thus have to be taken
on board while a separate Electronic Media Council may exercise some
control over this, which seems to be going berserk at times.
India’s services sector is one of its key areas for growth. It
includes such value added services as media, entertainment, knowledge,
health services, tourism and travel, security and clinical research
services. Health services are regarded as the key business
opportunity. The US is slated to spend 20 per cent of its GDP on
health care. Collaboration between the US and India involving
hospitals and laboratories would reduce healthcare costs for the
United States with great savings for its economy while for India it
will virtually replicate the benefits that accrued from the IT
revolution. The potential of travel and tourism should not be lost
sight of. However, unless we ensure a better security atmosphere in
the country, we will not be able to reap benefits from these sectors.
Security services are important and need some consideration. So far it
has been restricted to the government sector with Indian participation
in the UN contingents in various countries. There is increased scope
for private sector agencies operating in the lucrative global security
services market exploiting the expertise of domestic agencies in this
sphere.
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SUMMARIsING THE SECURITY FOCUS |
The New Great Game will be characterised by jockeying by World powers
for economic advantage. It will be a multi dimensional game of energy,
trade, information, technology, space and defence. There will be
limited use of violence but extensive intimidation. This highlights
the importance of soft power and use of non state proxies. The
geographical dimensions of the New Great Game will include the areas
of West and Central Asia, South and South East Asia and the Indian
Ocean. The capability paradigm of the New Great Game would entail
multi dimensional structuring of security forces. Covert intelligence
and Special Forces capabilities will be key instruments of policy. We
need to have state sponsored, commercial as well as non state proxies
operating in our areas of interest and influence, Central Asia, South
East Asia, Afghanistan, Balochistan, Myanmar and so on. Support of the
Indian diaspora is also essential. Increased emphasis on dynamic means
of conducting manoeuvres of influence to gain political and economic
advantage such as information and trade warfare need to be considered.
Non military dimensions of security will also assume significance. We
are in for what have been called as pin striped soldiers watching
giant computer screens, identifying threats to multiple systems that
denote human enterprise of the morrow. There is a need to visualise
the threats more proactively and not fall prey to an energy or
economic Pearl Harbour. Thus we should not fall into the trap which
Roger Trinquier has called as, “...persisting(ing) in studying a type
of warfare that no longer exists and that we shall never fight again”.
Growth of Soft Power
Soft power is assuming increased importance to include not only
information and culture but also diplomacy and cooperative security.
Building economic and political alliance will be the key to exercising
soft power. In some cases, economic union may precede political
coalition while in other cases it may be just the opposite. Thus, we
find that in SAARC, economic cooperation is preceding political as
these issues are too complex to be resolved in the present state of
dissonance while in the ASEAN sphere, the political is seen to be
preceding the economic. In the security sphere there are a number of
alliances looking for partners including the NATO and the Collective
Security Treaty Organisation which controls the Central Asian Security
Space. Clubbing with these may provide us major advantages if the
political resistance to such ideas is ironed out. Major initiatives in
Africa and South America will also provide us the advantage of the
vast natural resources offered by these Continents, where China is
already in the lead. A domestic consensus on foreign policy may be a
precursor to achieve these objectives.
Effective use of diplomatic pressure points needs to be made which is
lacking at present. There is no annual report on terrorism or annual
certification of countries not cooperating with the country in anti
terrorism which are means that the United States has been employing
effectively so far. Two track back channel means need to continue to
include Bangladesh and Myanmar as well, to achieve a breakthrough in
people to people contacts. The British Foreign Secretary recently
landed in Somalia amidst a civil war, demonstrating a stellar resolve
at the highest level to exploit opportunities for growth of power.
Such examples need to be emulated to establish presence in areas of
critical economic importance. A visit by any of our leaders to
Indonesia would have sent a correct signal to foster our interest in
that country. Organisational think tanks as the United Service
Institution of India are also important players in the field of
information and knowledge management at the higher military and civil
bureaucracy level. These should be leveraged to greater effect in the
World of tomorrow.
India has very effectively used aid and relief to build closer
alliances with people in the neighbourhood as also well afar. Tsunami,
the Jammu and Kashmir earthquake and Hurricane Katrina wherein $ five
million and 25 tons worth relief were provided are all salient
examples of our aid and relief diplomacy. The speedy relief to
Indonesia recently is another move in this direction. This trend needs
to be continued in the interest of humanitarian assistance to the
needy. Traditional soft power means films, entertainment and cricket
also can be continually exploited. It would thus be seen that the
dimensions of soft power are vast and its potential provides major
leverages to the country which need to be fully optimised.
Security against Violent Threats
The importance of the military will never diminish but will take
many diverse forms. By building our economic and military capabilities
concomitantly we should be able to move from military deterrence to
dissuasion in the conventional and the nuclear spheres. Deterrence
against terrorism also needs to be an area of focus, for which a more
aggressive external policy will have to be evolved as the present soft
policy is not paying dividends. Deterrence against terror has many
dimensions. The first stage of deterrence is against states supporting
terrorism which has been achieved during Operation Parakram, while the
next stage of deterrence against covert support of terrorism by states
needs greater emphasis. The strategy of deniable level of terrorism
followed by some states in the neighbourhood also needs an effective
counter. This alone will build the confidence of Indian power in the
neigbourhood. In the domestic space too, there is a need to ensure
that those groups who are playing into the hands of terrorists by
acting on their minions need to be marginalised. Ironically these
personalities are well known. The state now needs to act more
decisively to ensure that their duality and duplicity is exposed.
These elements have a greater impact on Indian security than the
terrorists whose role is limited to the physical.
Nuclear deterrence is a harsh reality in the great game. It will
guarantee us the umbrealla for growth. How many bombs do we need to
ensure deterrence? Presently estimates are that we have 75 bombs to
counter China’s possible 300 plus. What ever be the numbers, the need
to build up our nuclear arsenal post haste has been highlighted by the
recent introduction of the Fissile Material Cut Off Treaty at the
Conference on Disarmament in Vienna.11 Building a missile shield over
our critical assets to guarantee a second strike capability will also
enhance nuclear deterrence. Monitoring of the emerging threat from WMD
terror also needs consideration before we are hit by a, “tsunami” of
terror.
Conclusion - Role of the Armed Forces in the Great Game
India’s Armed Forces have increasingly played an important role in
nation building. During the fight for Independence, retention of the
armed forces as an instrument of the state led to its successful
integration into the state structure. The decades of the 1950’s to
1970’s saw the Armed Forces successfully overcoming the threat of
external aggression, while the decades from 1970’s to 2000’s led to
establishment of deterrence. From 1950 to this day the Army is engaged
in controlling internal dissension. These roles have to be expanded to
fill in the diverse facets indicated by the requirements of the New
Great Game. Increased force projection capability, emphasis on covert
and overt role of special forces, rapid deployment potential, hostage
rescue and relief, training and military diplomacy are essentials
which need consideration. Intelligence operations would also have to
be effective over a diverse area than being restricted to the sphere
of internal and external border security management as at present. A
para military structure could be considered and a force on the lines
of the National Security Guard could cater for such contingencies. It
will have the advantage of military rigour combined with an outward
police veneer, which may be more acceptable diplomatically as well as
domestically.
Major accretions in air and naval assets for power projection as well
as control of the seas are called for. We may have to overcome the
continental mindset of our Armed Forces and provide a larger role for
the Navy and the Air Force. A blue water and strategic lift capability
will be in order. This combined with the Army’s rapid deployment and
special forces – small team ability would provide us significant
advantages in the emerging land scape of protecting our vast economic
interests. We also need not shirk from deploying our forces abroad in
national interest based on economic, resource and entrepreneurial
accretions. What ever be the form of security, there is a definite
role for the Armed Forces in the New Great Game and the earlier it is
analysed and rationalised, the greater would be the national dividend.
In the end we need to abandon the age old Hindu mind set and cross the
oceans for that will denote the greatest virtue in the 21st century.
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