India pitches for membership of global non-proliferation regimes

April 19, 2012

Global

New Delhi, April 19: India on Wednesday made the most persuasive case for India's "full membership" of the global non-proliferation regimes. In a major policy statement, foreign secretary Ranjan Mathai told a gathering of nuclear experts that "the logical conclusion of partnership with India is its full membership of the four multilateral regimes."

Mathai, unusually, gave a detailed exposition of India's own strategic export control regime, national laws governing trade in sensitive items and its enforcement mechanisms. The aim, said officials, was to be more open about India's own efforts and systems while making a more compelling case for New Delhi's membership to the non-proliferation regimes. India's efforts to join the four top non-proliferation regimes - Nuclear Suppliers Group (NSG), Missile Technology Control regime (MTCR), Australia Group and Wassenaar Arrangement - started out in November 2010, but the campaign is yet to acquire critical mass.

While India is yet to make a formal application to join the regimes, its proposed membership has started a debate in these clubs. Over the next few months, all four clubs will be holding their plenary sessions where the Indian case will figure prominently. The government believes the top diplomat's statement today will provide an impetus to India's case and stir the debate. Another complaint has been about India's almost brahminical approach to what its doing in the non-proliferation field. Thus far, there has been little attempt by the Indian government to explain its non-proliferation objectives, systems and mechanisms to the world. With Mathai's speech, the government is also trying to clear the cobwebs about itself to the world.

In the months since November 2010, when India made a bid to join these groups, India has held several "outreach" sessions with all four. Mathai said he was in Vienna in March for the NSG outreach, while he expected to conduct an Australia Group outreach within the next few weeks. But its now being felt in the government that the Indian campaign has to move into higher gear. Today was a sort of opening salvo. Mathai clarified India has placed 12 out of 14 of its nuclear reactors under international safeguards, which puts India well within the deadline for compliance with its separation plan. He also reiterated India's commitment to ratify the additional protocol which envisages more intrusive checks into India's civilian nuclear sector.

India's membership is not an easy decision. First, there is an NPT adherence that is seen as crucial criteria. India has not signed the NPT and is not likely to do so, as a non-nuclear weapons state. So India's membership into these groups would have to take this refusal into account. Trying to transcend this hurdle, Mathai suggested they look at the bigger picture. "There are underlying objectives and principles that are common to all the regimes to which India subscribes to fully as it has demonstrated responsible non-proliferation and export control practices and has shown the ability and willingness to contribute substantially to global non-proliferation objectives." Whether this is acceptable is not yet clear. Although India wants to join with the four regimes in tandem, the NSG is believed to be the more important one. This year, India believes that with the US at the helm of NSG, its case might be easier.

Mathai said India, has the ability to produce and manufacture a large portion of the products that are controlled by these regimes. "As India's integration with the global supply chains moves forward, it would be in the interest of the four regimes that India's exports are subject to the same framework as other major supplier countries." It effectively puts the onus elsewhere - that outside the club, India can still manufacture sensitive items and they would be unregulated by the non-proliferation regimes. This should be a powerful argument for India being inside the tent. Of course, he left unsaid the fact that China's decision to supply nuclear reactors to Pakistan without the NSG waiver, has actually emasculated the global body.

Instead, Mathai interestingly placed India's actions and objectives of strong export control systems within India's development matrix. "As India's integration with global trade patterns and supply chains deepens, it would increasingly become an important hub of manufacturing and export of high technology items. Foreign investment including through offsets for governmental procurement will strengthen our global links. Our export control system would add to the reliability and credibility of Indian companies in the global market and thus increase their competitive edge."

The foreign secretary added, "India has continued with its policy of refraining from transfer of enrichment and reprocessing technologies (ENR) to states that do not possess them and supporting international efforts to limit their spread." While India might be fully in compliance, the NSG has adopted a guideline that prevents ENR technologies from going to non-NPT states. This would put India out of the box. The current negotiations are trying to square that circle. Mathai said India supports the IAEA's fuel-bank resolution and pitched to become a supplier state. Obviously, India cannot be a full supplier if it cannot access latest ENR technologies.

India, he said, not only had a series of legislative tools to control sensitive trade - from Atomic Energy Act, Customs Act of 1962 to the WMD Act of 2005 - to a robust enforcement mechanism. Mathai said, "DGFT is in the process of introducing by June this year an online application system that would not only further ease the application process but also facilitate implementation." He added, "We view a strong and effective national export control system as an essential link between our broader national security goals and our wider foreign policy objectives."

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News Network
March 21,2020

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.

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News Network
June 19,2020

Kolkata, Jun 19: The nationwide clamour for boycott of Chinese goods is getting louder amid the Ladakh face-off, with traders urging the Centre to direct e-commerce firms to restrict the sale of items from the Dragonland, which imports products worth USD 74 billion to India annually.

Of the total import from China, retail traders sell goods worth around USD 17 billion, mostly comprising toys, household items, mobiles, electric and electronic goods and cosmetics among other things, which could possibly be replaced by Indian products, a national trading body said.

"We, at 'Federation of All India Vyapar Mandal', are advising our members to clear their stocks of Chinese products and refrain from placing fresh orders. We are also requesting the government to restrict e-commerce companies from selling Chinese products," V K Bansal, the association's general secretary, told PTI.

Sushil Poddar, the president of the Confederation of West Bengal Traders Association, said its members have been told to shun trading in Chinese goods as much as possible.

Another national traders' body, The Confederation of All India Traders (CAIT), has decided to step up its movement against the boycott of Chinese goods, under its campaign 'Bhartiya Samaan-Hamara Abhimaan'.

It released a list of over 450 broad categories of commodities, comprising 3,000 Chinese products.

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Agencies
June 11,2020

New Delhi, Jun 11: India on Thursday rejected a US government report that voiced concerns over alleged attacks and discrimination against religious and ethnic minorities in the country.

"Our principled position remains that we see no locus standi for a foreign entity to pronounce on the state of our citizens' constitutionally protected rights," Spokesperson in the Ministry of External Affairs Anurag Srivastava said.

He was replying to a question on the report at an online media briefing.

Mandated by the US Congress, the '2019 International Religious Freedom Report' that documents major instances of violation of religious freedom across the world was released by Secretary of State Mike Pompeo on Wednesday.

"India's vibrant democratic traditions and practices are evident to the world. The people and government of India are proud of our country's democratic traditions," the spokesperson said.

"We have a robust public discourse in India and constitutionally mandated institutions that guarantee protection of religious freedom and rule of law," he added.

The India section of the report said that US government officials underscored the importance of respecting religious freedom and promoting tolerance and mutual respect throughout the year with the ruling and opposition parties, civil society and religious freedom activists, and religious leaders belonging to various faith communities.

The report referred to the revocation of the special status of Jammu and Kashmir last August and the passage of the Citizenship Amendment Act (CAA) in Parliament in December as major highlights for India last year.

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