Comment & Briefs

It is no exaggeration to state that Sino-Japanese relations are currently going through a phase of renewal and revival. Reflecting current sentiments that seek to build an optimistic future, Wen Jiabao became the first Chinese leader to visit Japan since 2000. Wen's visit follows Japanese Prime Minister Shinzo Abe's surprise visit to China in October 2006, which was unfortunately overshadowed by the North Korean nuclear test.

The Ministry of Defence (Finance) organised a day-long seminar on March 24, 2007 on Outsourcing Possibilities in Defence. The seminar brought together a variety of perspectives – of the Services, the Ministry of Defence, industry, academia and think tanks. The March 24 event was a follow-up to the first-of-its-kind International Seminar on Defence Finance and Economics held in November 2006. Its importance lies in the fact that not long ago ‘defence’ was considered a ‘strategic’ affair and thereby excluded from public scrutiny and economic analysis.

The LTTE's air attack on the Sri Lankan Air Force base at Katunayake, adjoining the Katunayake International Airport (KIA), marks a new dimension in the three-decade-old conflict. The bombing raid by the Tamileelam Air Force (TAF), reportedly originating from Vanni, has not only sharpened the focus on the island's security but also on that of India. Besides, the bombing, which left three people killed and about 17 injured, has thrown open the question of how weak the Tigers really are even after the debacle they have recently suffered in the Eastern Province.

On February 28, 2007, Finance Minister P. Chidambaram presented the Union Budget for the fiscal Year 2007-08 (April 1, 2007 - March 31, 2008). Out of a total budgeted expenditure of Rs. 6,80,521 crore, Rs. 96,000 crore was earmarked for national Defence, which includes allocations to the three Services - Army, Navy and Air Force - Defence Ordnance Factories, and the Defence Research and Development Organisation. This is besides the allocation of Rs. 16, 695.83 crore for Defence Civil Estimates, including Rs. 14,649 crore for Defence Pensions.

With the passage of a year since the visit of President George W. Bush to India, it is the business communities of the two countries that have benefited the most from the momentum created by the upsurge in Indo-US relations. While two-way trade and investment had been growing at a steady clip, the announcement and subsequent passage of the Bill on Co-operation in Civil Nuclear Energy, intended to remove the last vestiges of the adversarial relations between the two countries, have taken business relations to a new level.

The recent meeting of the Indo-Russian Business Co-operation Council and the Trade and Investment Forum in New Delhi was significant, in that it took place after the recent summit-level talks between the two countries. This symbolises the fact that both countries assign considerable value to increasing bilateral trade and economic co-operation.

In response to the government-organised National Naxalite Co-ordination Committee meeting held in December 2006 at Bhubaneswar, Naxalites have enunciated their counter-strategy. The Communist Party of India-Maoist (CPI-Maoist), which accounts for 98 per cent of left-wing extremist violence in India, decided to intensify the people's war by increasing its mass base across the country and strengthening its armed cadres. The decision, taken at a leadership conclave held somewhere in the forests along the Jharkand-Orissa border sometime in January or February 2007, was unanimous.

The general impression is that Iran has gained tremendously from rising oil prices, fuelled by its vast oil wealth. In reality, however, given increased domestic consumption coupled with inefficient usage and subsidies, Iran is actually struggling to produce enough oil and gas for export. Without substantial upgrades Iran's oil production is expected to go through a gradual decline. Though Iran has abundant oil reserves, estimated at around 137 billion barrels, it has not even been able to generate its OPEC quota due to lack of technical expertise and skills.

The Sixth Aero India Aerospace and Defence Exhibition held from February 07 to 11, 2007 was by all accounts a 'big' event. The biennial gathering was organized jointly by the Ministry of Defence's (MoD) Department of Defence Production and the Federation of Indian Chambers of Commerce and Industry (FICCI). For the first time, Farnborough International Ltd., the organization that holds the Farnborough International Air Show, was involved. 503 defence companies from 33 countries were represented at the Yelahanka Air Force station in Bangalore, the venue of the show.

In January 2007, when the Iranian Supreme Leader Ayatollah Khamenei suggested to the Secretary of the Russian Security Council, Igor Ivanov, that the two countries should explore setting up an OGEC or an organization of gas exporting countries similar to OPEC, Ivanov dismissed it as a "general idea" and not a "proposal for discussion".