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Saturday, April 30, 2011

Air India


Air India is a state-owned flag carrier, the oldest and the largest airline of India. It is a part of the Indian government-owned Air India Limited (AIL) which is renamed as Air India Ltd.

The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Its corporate office is located in South Mumbai. It is the 16th largest airline in Asia. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport. A international hub at Dubai International Airport is currently being planned.

Star Alliance announced on 13 December 2007 that it had invited Air India to join as a member and it is expected to become a member sometime in 2011.

Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines, a division of Tata Sons Ltd (now Tata Group). On 15 October 1932, J. R. D. Tata flew a single-engined De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary piloted by former Royal Air Force pilot Nevill Vintcent.

Following the end of World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India. In 1948, after the independence of India, 49% of the airline was acquired by the Government of India, with an option to purchase an additional 2%. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. On 8 June 1948, a Lockheed Constellation L-749A named Malabar Princess took off from Bombay bound for London via Cairo and Geneva. This marked the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden.

On 25 August 1953, the Government of India exercised its option to purchase a majority stake in the carrier and Air India International Limited was born as one of the fruits of the Air Corporations Act that nationalised the air transportation industry. At the same time all domestic services were transferred to Indian Airlines (now renamed as Indian). In 1954, the airline took delivery of its first L-1049 Super Constellations and inaugurated services to Bangkok, Hong Kong, Tokyo and Singapore.


Air India International entered the jet age in 1960 when its first Boeing 707-420, named Gauri Shankar was delivered. Jet services to New York City via London were inaugurated that same year on 14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India. On 11 June 1962, Air India became the world's first all-jet airline.

In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka. This coincided with the introduction of the 'Palace In The Sky' livery and branding. A feature of this livery is the paintwork around each aircraft window, in the cusped arch style of windows in Indian palaces. In 1986 Air India took delivery of the Airbus A310-300; the airline is the largest operator of this type in passenger service. In 1988, Air India took delivery of two Boeing 747-300Ms in mixed passenger-cargo configuration.

In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400 named Konark made history by operating the first non-stop flight between New York City and Delhi. In 1994 the airline was registered as Air India Ltd. In 1996, the airline inaugurated service to its second US gateway at O'Hare International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at the renamed Chhatrapati Shivaji International Airport in Mumbai.

In 2000, Air India introduced services to Shanghai and to its third US gateway at Newark Liberty International Airport in Newark. In May 2004, Air India launched a wholly owned low cost airline called Air-India Express. Air India Express connecting cities in India with the Middle East, Southeast Asia and the Subcontinent. In 2004 Air India launched flights to its fourth US gateway at Los Angeles International Airport in Los Angeles (which has since been terminated) and expanded its international routes to include flights from Ahmedabad, Amritsar, Bangalore and Hyderabad.

In 2007, the Government of India announced that Air India would be merged with Indian. As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established, into which both Air India (along with Air India Express) and Indian (along with Alliance Air) will be merged.

On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited.


Subsidiaries:

Air India Cargo

In 1954, Air India Cargo started its freighter operations with a Douglas DC-3 Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate freighters.

A member of IATA, Air India carries all types of cargo including dangerous goods (hazardous materials) and live animals, provided such shipments are tendered according to IATA Dangerous Goods Regulations and IATA Live Animals Regulations.


Air India Express

Air India Express is the airline's low-cost subsidiary which was established in 2005 during the aviation boom in India. It operates scheduled passenger services primarily to the Persian Gulf and South East Asia. Air India Express is currently the only airline in Air India Limited which posts profits. It operates a fleet of Next Generation Boeing 737-800 aircraft.Cochin International Airport is the main hub of the airline from which it has connections to almost all the Gulf countries.


Air India Regional

Formerly known as Alliance Air serves mainly on regional routes. Its main hub is Delhi's Indira Gandhi International Airport.


Air India has codesharing agreements with the following airlines:

Aeroflot

Air India Regional

Air Mauritius

Austrian Airlines

BMI

GMG Airlines

Gulf Air

Ethiopian Airlines

Kuwait Airways

Lufthansa

Singapore Airlines

South African Airways

Turkish Airlines

Uzbekistan Airways

Friday, April 29, 2011

Indus Water Treaty

At the time of independence, the boundary line between the two newly created independent countries i.e. Pakistan and India was drawn right across the Indus Basin, leaving Pakistan as the lower riparian.

Moreover, two important irrigation head works, one at Madhopur on Ravi River and the other at Ferozepur on Sutlej River, on which the irrigation canal supplies in Punjab (Pakistan) had been completely dependent, were left in the Indian territory.

A dispute thus arose between two countries regarding the utilization of irrigation water from existing facilities. Negotiations held under the good offices of International Bank for Reconstruction and Development (World Bank), culminated in the signing of Indus Waters Treaty in 1960.

The Treaty was signed at Karachi by Field Marshal Mohammad Ayub Khan, the then President of Pakistan, Shri Jawaharlal Nehru, the then Indian Prime Minister and Mr. W.A.B. Illif of the World Bank on 19th September, 1960. The Treaty however is effective from 1st April, 1960 (Effective Date).

BRIEF PROVISIONS OF INDUS WATERS TREATY 1960

i. The Indus system of rivers comprises three Eastern Rivers (Ravi, Beas and Sutlej and their tributaries) and three Western Rivers (Indus, Jhelum and Chenab and their tributaries).

ii. The Indus Waters Treaty 1960 was signed on 19.09.1960 between India and Pakistan. It is however effective from 01.04.1960.

iii. Under the Treaty, the waters of Eastern Rivers are allocated to India. India is under obligation to let flow the waters of the Western Rivers except for the following uses:

(a) Domestic Use,

(b) Non-consumptive use,

(c) Agricultural use as specified,

(d) Generation of hydro-electric power as specified

iv. India has been permitted to construct storage of water on Western Rivers upto 3.6 MAF for various purposes. No storage has been developed so far.

v. India has been permitted Agricultural Use of 7,01,000 acres over and above the Irrigated Cropped Area (ICA) as on 1.4.60. Out of this additional ICA of 7,01,000 acres, only 2,70,000 can be developed (i.e. a total ICA of 9,12,477 acres including that on 1.4.1960) till storages are constructed and 0.5 MAF of water is released there from every year. ICA during 2008-09 was 7,92,496 Acres.

vi. Under the Treaty, India and Pakistan have each created a permanent post of Commissioner for Indus Waters. They together constitute the Permanent Indus Commission (PIC), which is entrusted with the implementation of the Treaty. The PIC is required to hold meetings and tours and submit report on its work to the two Governments every year. It has held 111 tours and 106 meetings so far.

vii. Both sides are required to exchange information related to river flows observed by them, not later than three months of their observation and to exchange specified information on Agricultural Use every year.

viii. India is under obligation to supply information of its storage and hydroelectric projects as specified.

viii. India communicates as a gesture of goodwill, flood data to Pakistan from 1st July to 10th October every year, to enable them to undertake advance flood relief measures. The arrangement is reviewed every year.

ix. The Commissioners may discuss the questions arising under the Treaty under Article IX of the Treaty related to Settlement of Differences and Disputes and in the case of non-resolution, take further action under this Article for resolution through a Neutral Expert, negotiators or Court of Arbitration. [A Neutral Expert appointed by World Bank on Pakistan’s request delivered
Expert Determination on Baglihar Hydroelectric Project in Feb. 2007. To resolve the issues of Kishenganga H.E. Project, Pakistan has initiated proceedings for setting up a Court of Arbitration]

Thursday, April 28, 2011

Noble Laureates of India

Amartya Sen (b-1933): Prof. Amartya Sen is the recipient of the Nobel Prize for Economics for the year 1998, becoming the first Asian to have been honoured with the award. The Santiniketanborn economist who is a pioneer in Welfare Economics has to his credit several books and papers on aspects of welfare and development. An economist with a difference, Prof. Sen is a humanist. He has distinguished himself with his outstanding writings on famine, poverty, democracy, gender and social issues. The 'impossibility theorem' suggested earlier by Kenneth Arrow states that it was not possible to aggregate individual choices into a satisfactory choice for society as a whole. Prof. Sen showed mathematically that societies could find ways to alleviate such a poor outcome.

Subramanian Chandrashekhar (1910-1995): The Nobel Prize for Physics in 1983 was awarded to Dr S. Chandrashekhar, an Indian-born astrophysicist. Educated in Presidency College, Chennai, Dr Chandrashekhar happened to be the nephew of his Nobel forbear, Sir C.V. Raman. He later migrated to the United States where he authored several books on Astrophysics and Stellar Dynamics. He developed a theory on white dwarf stars which posts a limit of mass of dwarf stars known also as Chandrashekhar Limit. His theory explains the final stages of stellar evolution.

Mother Teresa (1910-1997): The Nobel Peace Prize was awarded to Mother Teresa in 1979. Albanian parentage, Agnes Gonxha Bojaxhiu was born at Skopje, now in Yogoslavia. She joined the Irish order of the Sisters of Loretto at Dublin in 1928 and came to Kolkata in 1929 as a missionary, only to find the misery of the abandoned and the destitute. Concern for the poor and the sick prompted her to found a new congregation, Missionaries of Charity. Having become an Indian citizen, Mother Teresa served the cause of dying destitutes, lepers and drug addicts, through Nirmal Hriday (meaning Pure Heart), the main centre of her activity. Her selfless service and unique devotion, not only to helpless fellow-Indians but also to the cause of world peace, earned her and India the first Nobel Peace Prize.

Hargobind Khorana (b. 1922): Hargobind Khorana was awarded the Nobel Prize for Medicine in 1968. Of Indian origin, Dr Khorana was born in Raipur, Punjab (now in Pakistan). He took his doctoral degree in Chemistry from Liverpool University and joined the University of Wisconsin as a Faculty Member in 1960. His major breakthrough in the field of Medicine -interpreting the genetic code and analysing its function in protein synthesis- fetched him the Nobel Prize.

Chandrashekhar Venkataraman (1888-1970): India's first Nobel Prize for Physics was claimed in 1930 by the renowned physicist Sir C.V. Raman. Born at Thiruvanaikkaval near Tiruchirapalli in Tamilnadu, Raman studied at Presidency College, Chennai. Later, he served as Professor of Physics at Calcutta University. Recipient of many honours and awards, including the title of 'Sir', Sir C.V. Raman received the Nobel Prize for an important optics research, in which he discovered that diffused light contained rays of other wavelengths-what is now popularly known as Raman Effect. His theory discovered in 1928 explains the change in the frequency of light passing through a transparent medium.

Rabindranath Tagore (1861-1941): Rabindranath Tagore was the first Indian ever to receive a Nobel Prize. Popularly known as Gurudev, India's Poet Laureate Tagore was born on 7th May 1861, in Kolkata. He was awarded the Nobel Prize for Literature in recognition of his work Geetanjali, a collection of poems, in 1913. Tagore wrote many love lyrics. Geetanjali and Sadhana are among his important works. The poet, dramatist and novelist is also the author of India's National Anthem. In 1901 he founded the famous Santiniketan which later came to be known as Vishwabharati University.

Bharat Ratna Award

India has produced a legacy of brave hearts since times immemorial. Probably there is not enough space to measure their sacrifices. However, we cannot close our eyes to those people who have made our country proud by excelling in their own fields and bringing us international recognition.Bharat Ratna is the highest civilian honour, given for exceptional service towards advancement of Art, Literature and Science, and in recognition of Public Service of the highest order.
The original specifications for the award called for a circular gold medal, 35 mm in diameter, with the sun and the Hindi legend "Bharat Ratna" above and a floral wreath below. The reverse was to carry the state emblem and motto. It was to be worn around the neck from a white ribbon. This design was altered after a year.

The provision of Bharat Ratna was introduced in 1954. The first ever Indian to receive this award was the famous scientist, Chandrasekhara Venkata Raman. Since then, many dignitaries, each a whiz in varied aspects of their career has received this coveted award.

In fact, our former President, Shri A. P. J Abdul Kalam is also a recipient of this esteemed honour (1997). There is no written provision that Bharat Ratna should be awarded to Indian citizens only. The award has been awarded to a naturalized Indian citizen, Agnes Gonxha Bojaxhiu, better known as Mother Teresa (1980) and to two non-Indians – Khan Abdul Ghaffar Khan and Nelson Mandela (1990). It is also not mandatory that Bharat Ratna be awarded every year. The last time this award was given was in 2008, to Pandit Bhimsen Gururaj Joshi.

List of Awardees:

Pandit Bhimsen Gururaj Joshi
Arts : 2008 : Karnataka

Kumari Lata Dinanath Mangeshkar
Arts : 2001 : Maharashtra

Late. Ustad Bismillah Khan
Arts : 2001 : Uttar Pradesh

Prof. Amartya Sen
Literature & Education : 1999 : United Kingdom

Lokpriya Gopinath (posth.) Bordoloi
Public Affairs : 1999 : Assam

Loknayak Jayprakash (Posth.) Narayan
Public Affairs : 1999 : Bihar

Pandit Ravi Shankar
Arts : 1999 : United States

Shri Chidambaram Subramaniam
Public Affairs : 1998 : Tamil Nadu

Smt. M.S. Subbulakshmi
Arts : 1998 : Tamil Nadu

Shri (Dr.) A.P.J. Abdul Kalam
Science & Engineering. : 1997 : Delhi

Smt. Aruna Asaf (Posth.) Ali
Public Affairs : 1997 : Delhi

Shri Gulzari Lal (Shri) Nanda
Public Affairs : 1997 : Gujarat

Shri Jehangir Ratanji Dadabhai Tata
Trade & Industry : 1992 : Maharashtra

Shri Maulana Abul Kalam Azad
Public Affairs : 1992 : West Bengal

Shri Satyajit Ray
Arts : 1992 : West Bengal

Shri Morarji Ranchhodji Desai
Public Affairs : 1991 : Gujarat

Shri Rajiv Gandhi
Public Affairs : 1991 : Delhi

Sardar Vallabhbhai Patel
Public Affairs : 1991 : Gujarat

Dr. Bhimrao Ramji Ambedakr
Public Affairs : 1990 : Maharashtra

Dr. Nelson Rolihlahla Mandela
Public Affairs : 1990 : South Africa

Shri Marudur Gopalan Ramachandran
Public Affairs : 1988 : Tamil Nadu

Khan Abdul Ghaffar Khan
Social Work : 1987 : Pakistan

Shri Acharya Vinoba Bhave
Social Work : 1983 : Maharashtra

Mother Mary Teresa Bojaxhiu Teresa
Social Work : 1980 : West Bengal

Shri Kumaraswamy Kamraj
Public Affairs : 1976 : Tamil Nadu

Shri V.V. Giri
Public Affairs : 1975 : Orissa

Smt. Indira Gandhi
Public Affairs : 1971 : Uttar Pradesh

Shri Lal Bahadur Shastri
Public Affairs : 1966 : Uttar Pradesh

Dr. Pandurang Vaman Kane
Social Work : 1963 : Maharashtra

Dr. Zakir Hussain
Public Affairs : 1963 : Andhra Pradesh

Dr. Rajendra Prasad
Public Affairs : 1962 : Bihar

Dr. Bidhan Chandra Roy
Public Affairs : 1961 : West Bengal

Shri Purushottam Das Tandon
Public Affairs : 1961 : Uttar Pradesh

Dr. Dhondo Keshav Karve
Social Work : 1958 : Maharashtra

Pt. Govind Ballabh Pant
Public Affairs : 1957 : Uttar Pradesh

Dr. Bhagwan Das
Literature & Education : 1955 : Uttar Pradesh

Shri Jawaharlal Nehru
Public Affairs : 1955 : Uttar Pradesh

Dr. M. Vishweshwariah
Civil Service : 1955 : Karnataka

Shri Chakravarti Rajagopalachari
Public Affairs : 1954 : Tamil Nadu

Dr. Chandrasekhara Venkata Raman
Science & Engineering. : 1954 : Tamil Nadu

Dr. Sarvapalli Radhakrishnan
Public Affairs : 1954 : Tamil Nadu

Wednesday, April 27, 2011

India's Foreign Relations


Afghanistan

Notwithstanding a significant deterioration in the security situation, impinging directly on us with the attack on the Indian Embassy in Kabul in July 2008, we remained at the forefront of international efforts to assist Afghanistan in building a stable democratic and pluralistic society. The Zaranz-Delaram road giving Afghanistan access to the sea was formally inaugurated by EAM Shri Pranab Mukherjee and President Karzai on 22nd January, 2009. The implementation of the scheme of ICCR Scholarships and ITEC training programmes for Afghan nationals and the execution of community based, small development projects in the fields of agriculture, rural development, sanitation, vocational training, etc. is progressing satisfactorily. India continued to contribute for the Afghan Reconstruction Trust Fund and pledged a sum of US $ 1 million to the UNDP election fund. India has also pledged an additional US $ 450 million (over the US$ 750 million earlier committed) to effectively meet the requirements of our ongoing and future projects. President Karzai visited India in August 2008 and again in January, 2009.

Bangladesh

India continued to constructively engage with Bangladesh on a broad spectrum of bilateral issues during the year. EAM Shri Pranab Mukherjee visited Bangladesh in February 2009, after the Awami League led Grand Alliance won an overwhelming majority in the general elections of December 2008 and formed the government under the premiership of Sheikh Hasina. The other high level visits included visits of Bangladesh Army Chief, Gen. Moeen from 24 February - 1 March 2008, MoS for Commerce and Power Jairam Ramesh to Dhaka in October 2008 including that of Chief of Army Staff, Gen. Deepak Kapoor.

India took several initiatives, many unilaterally, to bring the two countries closer. They included restarting of the passenger train service 'Maitree' Express between Kolkata and Dhaka after 43 years. India gave substantial assistance to Bangladesh to overcome damages caused by natural disasters like cyclone. India started providing duty free access to exports from LDCs in the SAARCincluding Bangladesh from 1 January 2008 (except some items on India's sensitive list). India has undertaken a project to construct Kalabhaban for the Department of Theatre and Music, University of Dhaka. As a move to check the activities of Indian Insurgent Groups (IIGs) on Bangladeshi soil, the two sides revived the Joint Working Group.

Bhutan

India and Bhutan continued to share uniquely warm and cordial relations, which were further strengthened during the year through regular high level interactions. The year also witnessed the coronation of the 5th King of Bhutan. PM Dr. Manmohan Singh visited Bhutan from 16-17 May, 2008 during which he addressed the first session of the democratically elected Parliament. During the visit, PM announced that India will double the target of hydropower development in Bhutan to 10,000 MW for export to India by 2020; Government of India's assistance for construction of the first rail link between India and Bhutan, and establishment of the prestigious Nehru-Wangchuck scholarships for Bhutanese students.

Prime Minister of Bhutan, Lyonchhen Jigmi Y. Thinley, paid a state visit to India from 14-17 July, 2008 and again visited India from 12-14 November, 2008 to participate in the 2nd BIMSTEC Summit in New Delhi. President of India Smt. Pratibha Devisingh Patil accompanied by the then EAM Shri Pranab Mukherjee paid a state visit to Bhutan from 5-8 November, 2008 as Chief Guest at the formal coronation of His Majesty Jigme Khesar Namgyel Wangchuck, the King of Bhutan.

Bhutan celebrated 2008 as the Golden Jubilee Year of the visit of Pandit Jawaharlal Nehru to Bhutan in 1958. A Parliamentary delegation from Bhutan visited India during February 2009 and had interaction with their counterparts in India.

India-Bhutan bilateral relations are characterized by close consultations, maturity, complete trust and mutual understanding and are an example of good neighbourly relations. This special relationship is further sustained by the tradition of regular visits and exchange of views at the highest levels. The Government of India has committed to extend full support and cooperation to the Royal Government of Bhutan for consolidation of democracy following the installation of the first democratically elected Parliament and Government in Bhutan in May 2008. India has been the largest trade and development partner of Bhutan, Ever since Bhutan initiated planned development efforts in the early 1960s India has been extending financial assistance to Bhutan's Five Year Plans (FYP). Recently, Government of India has committed to develop 10,000 MW of hydropower in Bhutan for export to India by 2020.

China

This has been an important year for India-China relations. Prime Minister Dr. Manmohan Singh paid an official visit to the People's Republic of China from 13-15 January 2008. The leaders of India and China resolved to develop the Strategic & Cooperative Partnership for Peace and Prosperity between the two countries. They also reiterated their firm commitment to resolving all outstanding differences through peaceful negotiations, while ensuring that such differences are not allowed to affect the positive development of bilateral relations. The two Prime Ministers signed "A Shared vision for the 21st Century" which reflects the aspirations of the two countries to cooperate with each other on areas of mutual interest on regional and multilateral affairs.

The Foreign Ministers of India and China also exchanged visits in June 2008 and September 2008 respectively. The new Consulates General in Guangzhou and in Kolkata were formally inaugurated during these visits. Bilateral trade in the calendar year 2008 reached US$ 51.8 billion, which is close to the target of US$ 60 billion by 2010 that has been set by the two Prime Ministers. Cooperation and exchanges in the area of defence relations also continued with the holding of the 2nd Joint Military Exercises and the 2nd Annual Defence Dialogue in India in December 2008. The Special Representatives of the two countries met in September 2008 for the 12th round of discussions on the India-China Boundary issue. India provided humanitarian relief assistance worth US$ 5 million to China in the aftermath of the devastating earthquake that struck Sichuan province in May 2008. The two countries have also consulted with each other on important global issues including the international financial crisis and climate change.

Iran

The momentum in India-Iran bilateral relations was maintained in 2008-09 through regular exchanges of delegations in different fields as also by high level visits. The impetus provided by high level discussions have contributed to enhanced bilateral cooperation in energy, trade & commerce, investment, culture and transit related issues as well as cooperation in regional and international issues of mutual interest. The President of Iran Dr. Mahomud Ahmadinejad paid a visit to New Delhi on 29 April 2008. EAM Shri Pranab Mukherjee visited Tehran from 28-30 July 2008 to attend the 15th NAM Ministerial Conference and thereafter for the India-Iran XVth Joint Commission meeting from 31st October - 2 November. 2008. The VIth Annual Foreign Office Consulations at the level of Foreign Secretary were held in New Delhi from 17-18 December 2008.

Maldives

Bilateral relations between India and Maldives continued to be close and friendly. Both the countries remained engaged in further strengthening their friendly relations through high level exchanges and implementing various developmental projects. The newly elected President Mr. Mohamed Nasheed paid a State visit to India from 23-25 December 2008, during which an agreement on Standby Credit facility of US$ 100 million to Maldives and an Air Services Agreement were signed between the two countries. MoS for Commerce, Shri Jairam Ramesh visited Maldives from 29-31 January 2008. In January and February 2009, Defence Minister and Minister of Health and Family of Maldives visited India to enhance cooperation in security related issues and health respectively.

Myanmar

Relations with Myanmar continued to develop further during the period and became truly multifaceted. India was one of the first countries to rush emergency relief assistance to Myanmar in the aftermath of Cyclone Nargis in May 2008. PM of Myanmar Thein Sein visited India for the BIMSTEC Summit in November 2008 and Vice President of India Dr. M. Hamid Ansari visited Myanmar from 5-8 February 2009.

During Vice President's visit agreements for setting up an industrial Training Centre by HMIT (1) & a Centre for English Language Training were signed. Engagement in the economic and commercial sphere strengthened considerably. The Bilateral Investment Promotion & Protection Agreement (BIPPA) was signed. The opening of a new trade point at Nagaland border with Myanmar was agreed to. Institutional mechanisms to check the activities of Indian Insurgent Groups in Myanmar were developed. India also remained committed to provide assistance in developing infrastructure within Myanmar, including the Kaladan Multimodel Transit Transport Project, and strengthen cooperation in oil and natural gas exploration, power sector, manufacturing, etc.

Nepal

India extended all possible support to the Government and people of Nepal in consolidating the peaceful democratic transition. The year witnessed several high level bilateral visits. Prime Minister Hon. Pushpa Kamal Dahal Prachanda's first official visit abroad to India from September 14-18, 2008 provided broad political direction to forge a 21st century relationship with India. During the visit, the Prime Minister held talks with PM Prachanda and conveyed India's commitment to support Nepal's democratic and economic transformation. Drafting a new constitution and conclusion of the peace process are priorities for the Government of Nepal. India expressed its commitment to assist the Government of Nepal in these tasks. As agreed by both sides, several high level bilateral consultation mechanisms were also reactivated.

Promotion of investor-friendly business environment in Nepal would help in realization of the potential for major expansion of Indian investment in key areas like hydropower, agriculture, tourism and infrastructure in Nepal for mutual benefit.

EAM Shri Pranab Mukherjee visited Nepal in November 2008 to discuss issues of mutual interest. Foreign Secretary visited Nepal from February 17-18, 2009 to follow up on the agreements reached during PM Prachanda's visit to India and EAM's visit to Nepal.

Nepal and India share friendly and close political, economic, and social ties. The two nations' strong cultural affinities and unfettered people-to-people contacts across the open border make it a relationship that has few parallels. Currently, main challenges for Nepal are drafting of a new constitution and successful conclusion of the peace process for bringing peace, stability and economic development. Following the resignation of former Prime Minister Pushpa Kamal Dahal Prachanda of Unified Communist Party of Nepal - Maoist (UCPN-M) on May 4, 2009, a new coalition government under the leadership of Mr. Madhav Kumar Nepal of Communist Party of Nepal Unified Marxist-Leninist (CPN-UML) was sworn in on May 25, 2009. Foreign Secretary visited Nepal on June 20-21, 2009, to exchange views with the Nepalese leadership on future development and strengthening of relations between the two countries. Hon Minister for Water Resources Shri Pawan Kumar Bansal visited Nepal on July 11-12, 2009 for joint inspection along with Hon. Minister of Irrigation of Nepal of the repairs carried out by GOI of the breach in embankment of the Kosi river. Nepal's Defence Minister Mrs Bidhya Bhandari also paid an official visit to India on July 21, 2009.

Pakistan

The Composite Dialogue Process with Pakistan entered its 5th round in 2008-09. The Dialogue had been premised since its resumption in 2004, on the commitment made on 6 January 2004, that Pakistan would not permit territory under its control to be used to support terrorism in any form. Notwithstanding some achievements during the year in segments of the Composite Dialogue Process, terrorism and non-implementation of the 6 January 2004 commitments by Pakistan has eroded the fundamental premise of the Dialogue process. Terrorist attacks in India and on the Indian Embassy in Kabul in July 2008, increase in ceasefire violations and continued infiltration across the LOC placed a strain on the dialogue process in particular and India-Pakistan relations in general. The terrorist attack on Mumbai on 26 November 2008 and concrete evidence of the involvement of elements in Pakistan in the attack led to a pause in the dialogue process.

After the Mumbai attack, the Ministry undertook several steps both bilaterally with Pakistan and at international fora to obtain Pakistan's cooperation in bringing the Pakistan-based perpetrators to justice and to ensure that such acts do not recur. As a result, the United Nations Al-Qaeda and Taliban Sanctions Committee listed individual entities based in Pakistan including leaders of the Lashkar-e-Taiba under Security Council Resolution 1267. The Jamat-ud-Daawa was also listed as an alias of the Lashkar-e-Taiba. On 12 February 2009, Indian High Commissioner in Islamabad was formally informed of Pakistan's response to the dossier that India had made available on 5 January linking the terrorist attacks on Mumbai to perpetrators in Pakistan. In their response, Pakistani authorities admitted that elements in Pakistan were involved in the terrorist attacks on Mumbai. Pakistan also sought further information and material relating to the investigation. The then EAM Shri Pranab Mukherjee termed this a positive development in a suo moto statement on 13 February in Parliament. On 13 March 2009, the Government of India provided detailed responses and material to the Pakistan High Commissioner in New Delhi to all 30 questions raised by Pakistan which in turn was acknowledged by Pakistan Ministry of Foreign Affairs.

Despite the above developments and despite high-level statements from Pakistan promising cooperation regarding the Mumbai attack, in terms of actual action taken the response has been disappointing. As a result, there has been a sharp deterioration in bilateral relations.

Responding to the announcement of the new US strategy for Afghanistan and Pakistan, MEA spokesperson on 30 March 2009 welcomed the very "clear expression of will to carry through the struggle against extremism in Afghanistan and its roots in Pakistan" and expressed India's "readiness to play a constructive role as a responsible power in defeating extremism of all kinds."

Sri Lanka

In Sri Lanka, the military conflict in the North escalated in 2008 leading to a major humanitarian crisis and the eventual military defeat of the LTTE. The situation in the North and the plight of Tamil civilians displaced and affected by the conflict were important issues in the bilateral discourse between India and Sri Lanka. The then EAM visited Colombo on January 27, 2009 and held discussions with President Mahinda Rajapaksa. This was preceded by Foreign Secretary Shivshankar Menon's visit to Sri Lanka on 16-17 January, 2009

In response to the emerging humanitarian crises in Sri Lanka, India sent large-scale emergency relief assistance including family packs for IDPs, medicines and setting up of a 62 member Emergency Field Hospital in Northern Sri Lanka. India also remained engaged with Sri Lanka in support of a peacefully negotiated political settlement within a united Sri Lanka.

Bilateral exchanges continued to strengthen during this period. Prime Minister Dr. Manmohan Singh and EAM Shri Pranab Mukherjee visited Sri Lanka for the 15th SAARC Summit held from 2-3rd August, 2008. Trade and investment linkages were further consolidated India remained Sri Lanka's largest trading partner in 2008 with bilateral trade worth US$ 3.27 billion. India also emerged as the second largest investor in Sri Lanka in 2008.

SAARC

The South Asian Association of Regional Cooperation, (SAARC) was created in 1985, as an expression of the region's collective decision to evolve a regional cooperation framework. Presently, there are eight member countries in SAARC namely Afghanistan, Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan and Sri Lanka.

India was the Chair of SAARC in 2007-2008 (since the 14th SAARC Summit held in New Delhi from 3-4 2007 upto the 15th Summit held in Colombo from 2-3 August 2008). The period was the most productive than SAARC has ever known with SAARC transforming from declaratory, to implementation. Each of PMs announcements at the 14th Summit in Delhi has been implemented, with India discharging its responsibilities in a non-reciprocal (asymmetric) manner. The landmark achievements in SAARC are as follows:

SAARC Food Bank is now operational with a total stock of 2,43,000 MT contributed by all member states. They have also identified the locations from where the requesting country could draw its requirements from the sending country based on mutually acceptable terms.

The establishment of the South Asian University is on schedule with the establishment of the Project Office, finalisation of its international legal contours by the South Asian University Act 2008, grant of privileges and immunities as per UN Immunities and Privileges Act 1947 and funding as per "Principles of Regional Centres". Process of transfer of 100 acres of land from DDA for leasing out to SAU also is at an advanced stage.

At the 13th SAARC Summit held in Dhaka, in November 2005, Prime Minister proposed the establishment of a SAARC Museum of Textiles and Handicrafts. The Museum would be an Intergovernmental Body on the lines of the other SAARC Regional Centres and will be based in Delhi Haat. Pitampura. For the establishment of the SAARC Museum of Textiles and Handicarfts, the necessary financial processing is under way.

SAARC Development Fund (SDF) is also operational out of the temporary cell of the SAARC Secretariat pending completion of its permanent premises in Bhutan. Two projects are currently under implementation out of the SDF. India has transferred its full commitment of US $ 189.9 million to the SDF, and has proposed a third project on providing bio-mass cooking stoves and solar lanterns to SAARC Member States.

Apart from above, India is also implementing the projects, in the areas of Telemedicine (Bhutan and Afghanistan), Shuttle Breeding of Pulses (Bhutan), setting up of Seed Testing Laboratories (Bhutan), Rainwater Harvesting (Bhutan and Sri Lanka) and Rural Solar Energy Electrification Project (Sri Lanka) under a hub-and spoke mechanism with India as the hub.

There is progress in full implementation of South Asian Free Trade Agreement (SAFTA) in letter and spirit. Member states have appreciated India's gesture to give zero duty access to LDCs from January 1, 2008, one year ahead of target date and unilateral reduction of its Negative List with respect to LDCs from 744 to 480. India continues to revise its Sensitive Lists and, as of now, have 744 items outside its ambit for the LDCs and 868 for the Non-LDCs. A draft Agreement on Trade in Services is in final stages of negotiation expected to be ready by the end of this year.

The signing of the SAARC Convention of Mutual Assistance in Criminal Matters in Colombo and the 15th SAARC Summit, has generated momentum for signing similar agreements on security related matters in other mechanisms in SAARC. For example, the Standard Operating Protocol on Trafficking of Women & Children has also been similarly finalised at the third meeting of the Regional Task Force to implement the SAARC Conventions relating to trafficking in women & children and promotion of child welfare in South Asia held in Shimla on May 28-29, 2009.

People-to-people activities and exchange on visits have phenomenally increased through offer of training programmes, workshops within SAARC member states and arrangement of cultural activities such as handlooms and handicrafts Exhibitions from SAARC members states in Pragati Maidan, ITPO, Surajkund Mela, the South Asian Bands Festivals, SAARC Festivals of Literature, SAARC Folklore Festival, SAARC Food Festival, SAARC Fashion Show and the forthcoming 9th SAARC Trade Fair in Bhutan etc.

The dynamism infused by India into the SAARC processes is also evident by the numerous training programmes which have been hosted in India for Member states in the diverse fields of women empowerment, micro finance, security, energy, science and technology, information technology, agriculture education and commerce etc.

The above initiatives have enabled SAARC move from declaratory phase to implementation. Due to India's dynamic commitment to SAARC, to engage neighbouring countries on core developmental aspects of health, education and infrastructure, the number of SAARC activities/meetings held per annum has made a quantum jump to 133 scheduled for the period 2009 until 2010, reflecting the new dynamic SAARC that is being increasingly seen as the premier vehicle of regional economic cooperation to bring the fruits of development to the people of South Asia.

South East Asia and the Pacific

India continued to pursue closer relations with South East Asia and the Pacific region as envisioned in its 'Look East Policy' during the year. With some countries in the region, we stepped up relations to the strategic level, while diversifying and strengthening relations with others. Regular exchange of high level visits at bilateral level and interactions at regional and multilateral fora contributed to a higher degree of engagement among leaders in the region to help develop renewed dynamism in India's relations with these countries. In the last five years, Prime Ministers, Presidents and Ministers of several countries in the region visited India. Our leaders also visited various countries in the region. These visits and signing of several framework agreements have significantly contributed to India's growing relations with countries in this region.

The bilateral trade and investment between India and countries in ASEAN have considerably increased, touching about US$ 40 billion in 2007-08. India – ASEAN Free Trade Agreement (FTA) in goods has been successfully negotiated and is ready for signature. With the implementation of India-ASEAN FTA, the trade with ASEAN countries will cross the target of US$ 50 billion by 2010. Meanwhile, bilateral FTA is being negotiated with several countries in the region, the conclusion of which would significantly enhance the two-way trade. The trade with Australia also crossed US$ 10 billion.

For the socio-economic development of countries in the region, India continued to provide assistance to Cambodia, Laos, Vietnam and Philippines in the form of grants, soft loans and credit lines and training courses, under ITEC scheme. As a Dialogue Partner of the Pacific Islands Forum (PIF) countries, India has been engaging with Pacific Island countries by providing regional assistance in capacity building and social and economic programmes and sustainable development. In response, India succeeded in eliciting support from majority of the countries in the region on issues of India's interest such as India's candidature for UN Security Council membership, Commonwealth, civil nuclear cooperation etc.

India's growing profile has attracted countries in the South East Asia and Pacific region to foster closer engagement at the regional and multilateral fora such as ASEAN, EAS, BIMSTEC, MGC and ARF.

East Asia

Japan

India-Japan relations, which have expanded and broadened in recent years, continue to undergo a significant and qualitative shift. Prime Minister Dr. Manmohan Singh paid an official visit to Japan on 22-23 October 2008 for the Annual India- Japan Summit meeting. The two Prime Ministers signed a Joint Statement on the Advancement of the Strategic & Global Partnership between India and Japan and a Joint Declaration on Security Cooperation. The 2nd Strategic Dialogue between the Foreign Ministers was held in August 2008 when the Foreign Minister of Japan visited India. Ministerial level dialogues were also held on economic and trade matters and on energy.

India was the largest recipient of Japanese Official Development Assistance (Yen 236.047 billion or Rs. 11,802.4 crores approximately) in the financial year 2008-09. Steady progress was made on the flagship projects jointly initiated by the two countries. On the Western Dedicated Freight Corridor Project, the Japanese side has agreed to provide financial assistance of approximately 450 billion Yen as a loan for the Phase-I, and have expressed their commitment to work with India for early finalization of the assistance for the entire Western Freight Corridor. On the Delhi-Mumbai Industrial Corridor initiative, the two sides have held meetings of the Joint Task Force to finalize the contours of the project. We have an annual calendar for defence exchanges. The two sides have also continued to discuss a Comprehensive Economic Partnership Agreement, with the objective of concluding a mutually beneficial and high quality agreement. Both sides are also engaged in discussions and Japanese assistance for a new IIT at Hyderabad. Defence and functional exchanges have also emerged as an important area for bilateral cooperation.

Republic of Korea

Our relations with the Republic of Korea have steadily grown. Former President A.P.J. Abdul Kalam attended the inauguration ceremony of the new President of the Republic of Korea, Lee Myung-bak. Prime Minister Dr. Manmohan Singh met the new President at the G-8 Summit meeting in Japan in July 2008. The two countries are negotiating a Comprehensive Economic Partnership Agreement that they hope to conclude in FY 2009-10. During the year 2008-09 important cooperation also took place in other areas.

Mongolia

The Prime Minister Dr. Manmohan Singh met the President of Mongolia in the margins of the 7th ASEM Summit Meeting in Beijing in October 2008. The Defence Minister of Mongolia visited India in February 2009. Bilateral cooperation on economic and trade matters, defence, education, culture and also in the training of Mongolians under the ITEC programme have continued to develop during the year. India also provided Mongolia with 5000 MT, each of rice and sugar as humanitarian assistance in view of our very friendly relations with that country.

DPRK

Relations between India and Democratic People's Republic of Korea (DPRK) continue to be cordial with a focus on humanitarian assistance and exchanges in the areas of culture, sports and education.

Eurasia

India maintained friendly and cordial relations with Russia, Ukraine, Belarus, Central Asian and Caucasian countries during the year through visits, conclusion of bilateral agreements, periodic bilateral and multilateral engagements, cooperation programmes, cultural events and other initiatives. Some of the important bilateral engagements during the year included the State visits of the President of the Russian Federation Mr. Dmitry A. Medvedev to India in December 2008, the President of Kazakhstan Mr. Nursultan Nazarbayev as Chief Guest at the Republic Day celebrations 2009 and visit of the Vice President of India to Kazakhstan and Turkmenistan in April 2008.

India and Russia continue to further consolidate their strategic partnership. Co-operation in defence, space and nuclear energy has intensified. During President Medvedev's visit to India from 4-5 December 2008 for the annual bilateral Summit, nine important agreements were signed apart from a Joint Declaration. The agreements include an Inter-Governmental Agreement on Cooperation for the construction of additional nuclear power plant units at Kudankulam site as well as for the construction of Russian designed nuclear power plants at new sites, and a MoU between ISRO and Russian Federal Space Agency on joint activities in the field of human space flight programme. From the Russian side, Defence Minister Mr. Anatoly Serdyukov visited India from 28-30 September 2008, Foreign Minister Mr. Sergey Lavrov visited on 20 October, and Deputy Prime Minister of Russia, Mr. Alexander Zhukov, visited on 20 October, and Deputy Prime Minister of Russia, Mr. Alexander Zhukov, visited India to co-chair the 14th Session of the India-Russia IGC on Trade, Economic, Scientific, Technological and Cultural Cooperation. The year 2008 was celebrated as "Year of Russia" in India with almost 140 events being organised in different cities of India, and similarly, the year 2009 is being celebrated as the "Year of India" in Russia.

Deputy Prime Minister and Foreign Minister of Turkmenistan, Mr. Rashid Meredov led a high level delegation to India from 20 - 22 January 2008. Mr. Meredov co-chaired the 2nd Session of the India-Turkmenistan Intergovernmental Commission for Trade, Economic, Scientific and Technological Co-operation along with the MoS for External Affairs, Shri E. Ahmed. During the visit Mr. Meredov called on the Vice President and the PM and also met the EAM Shri Pranab Mukherjee. Vice-President Shri M. Hamid Ansari paid an official visit to Turkmenistan from 4-6 April 2008. Minister of Petroleum and Natural Gas Shri Murli Deora visited Turkmenistan in November 2008. Defence Minister of Belarus Colonel General Leonid Maltsev visited India from 16 - 18 February for DEFEXPO India 2008 in New Delhi. He met the Defence Minister on 16 February to discuss bilateral defence co-operation. Indian army chief General Deepak Kapoor visited Belarus from 12-15 March 2008 and met the Belarusian Defence Minister, Chairman of the State Military & Industrial Committee and Chief of the Army Staff. General Kapoor visited the Military Academy of Belarus and several defence production enterprises. The Belarusian Minister of Industry Mr. Anatoly Rusetsky attended the 4th Session of the India-Belarus IGC on Economic, Trade, Industrial, Scientific, Technological and Cultural Cooperation in New Delhi from 17 - 18 November 2008. The first session of the Indo-Belarusian Joint Commission on Military Technical Cooperation was held in Minsk from 27 - 30 May 2008. Foreign Minister of the Kyrgyz Republic. Mr. Ednan Karabaev visited India from 4-6 February 2008 to review bilateral relations and discuss regional issues of mutual interest. He met the Ministers of External Affairs, Commerce & Industry, Human Resource Development and Culture & Tourism.

During 2008, Vice President (VP) Shri M. Hamid Ansari's visit to Kazakhstan from 6-10 April 2008 gave a major boost to India-Kazakhstan relations. During his visit, VP met with the President and Prime Minister of Kazakhstan and addressed the Senate. Kazakhstan President Mr. Nursultan Nazarbayev paid a state visit to India from 23-26 January 2009 and was the Chief Guest at the Republic Day celebrations - the first time that a leader from a Central Asian country was accorded this honour. With another important Central Asian Country, Uzbekistan, our relations progressed with holding of Foreign Office consultations in New Delhi on 1st August 2008, and meeting of the 8th Session of the India-Uzbekistan Inter-Government Commission on trade, economic, scientific, and cultural cooperation in September 2008. The Uzbek Minister of Economy Mr. B. Khodjaev had visited New Delhi from 16-17 September 2008 for the 8th Session of the IGC.

The Gulf, West Asia and North Africa

India maintained its historical and traditionally cordial relations and cooperation with the countries in the Gulf region. Gulf countries together provide 70% of our total crude oil requirement and about 4.5 million Indians live and work in the region, remitting more than US$ 10 billion annually. The year witnessed several high level visits which underlined the importance of the region in our relationship. The most important was PM Dr. Manmohan Singh's visit to Qatar and Oman in November 2008 which opened new areas for bilateral cooperation. In Qatar, PM signed two documents relating to defence cooperation and security as well as law enforcement matters. In Oman, an MoU on manpower and another for establishing India-Oman Joint Investment Fund were signed. EAM Shri Pranab Mukherjee accompanied by MoS Shri E. Ahamed and Secretary (East) paid an official visit to Muscat from 13-14 January 2008. During the visit, EAM called on Deputy PM for Council of Ministers and Mr. Yousef bin Alawai bin Abdullah, Minister responsible for Foreign Affairs of Oman.

Dr. Majeed Mohsin Al Alawi Labour, Minister of Bahrain, visited India on 25 April 2008 and discussed with Minister of Overseas Indian Affairs, the MoU on Labour and Manpower Development. Dr. Fatima Bin Al Balooshi, Minister of Social Development, Bahrain, visited India from 17-21 August 2008 and held talks with the Minister of Textiles and Minister of State for Women & Child Development among others.

MoS Shri E. Ahamed visited Kuwait from 29-31 January 2008. During the visit, MoS called on the Kuwaiti Prime Minister. A wide range of bilateral and regional issues, including the revised format for Labour Contract to be signed between the Kuwaiti employer and Indian worker were discussed in his meetings with the Deputy PM/Minister and Minister of Social Affairs in Labour.

The year, marked by several high-level visits, witnessed strengthened bilateral relations with Saudi Arabia. Saudi Foreign Minister Prince Saud Ali Faisal visited India twice in 2008, in February when he called on PM Dr. Manmohan Singh and EAM Shri Pranab Mukherjee and on 26 December when he met Vice President, EAM and NSA. EAM paid a two- day visit to Saudi Arabia from 19-20 April 2008 and called on Saudi King Abdullah bin Abdul Aziz Al Saud and Governor of Riyadh Prince Salman bin Abdul Aziz Ali Saud. Mos Shri E. Ahamed visited Saudi Arabia on 17 April 2008 and signed the Haj agreement with Saudi Haj Minister Dr. Fouad Al-Farsy. Finance Minister along with Petroleum and Natural Gas Minister attended the Oil Summit, held in Jeddah on 22 June 2008 at the behest of Saudi King Abdullah.

The year 2008 also was the consolidation in the friendly bilateral ties between India and UAE. HE Shaikha Lubna Ali Qasimi, Minister of Foreign Trade, visited India on 25 April and was awarded "Woman Achiever of the Year" by FICCI. The 1st ever India-UAE Joint Air Forces exercise took place in September 2008 in Abu Dhabi. EAM visited UAE in May 2008 and met both the Foreign Minister and Crown Prince.

West Asia and North Africa

India's engagement with West Asia and North Africa was cemented through a series of high level interactions that included State visits to India by President Bashar Ali-Assad of Syria. President Mohammed Hosny Mubarak of Egypt and President, Mahmoud Abbas of the Palestinian National Authority. India's dialogue with Egypt was also taken forward during and official visit by EAM to that country in July 2008. India's steadfast support for the Palestinian cause was underlined during the State visit of President Mahmoud Abbas of the Palestinian National Authority (PNA) during which, in the presence of the Prime Minister. Dr. Manmohan Singh, President Abbas laid the foundation stone of the Palestinian Embassy building in New Delhi, a gift of the Government and people of India, and construction of which is nearing completion. Implementation of PM's offer of $ 10 million as budgetary support to the PNA was completed during the year.

India strongly condemned the Israeli incursion into the Gaza strip that began in December 2008. India's varied relations with the Arab world were institutionalised through a Memorandum of Cooperation with the League of Arab States signed in December 2008 during the visit of the Secretary General H.E. Mr. Amre Moussa to New Delhi.

India contributed towards development of Iraq's human resources by providing 100 slots to Iraq under Indian Technical and Economic Cooperation (ITEC) programme to train its officials in various training and professional institutions all over India. IOC provided training in India to 228 Iraqi oil officials. On February 26, 2009, President Jalal Talabani of Iraq transited through India and tried to encourage our participation in the reconstruction and development of Iraq, especially in the power sector. During the meeting with secretary (East), he expressed a keen desire for encouraging Indian companies and personally assured fullest support to them in Iraq.

Africa

The first India-Africa forum Summit was held in New Delhi from 8-9 April 2008 built upon the foundations of the historical relationship that has existed between the two, and created a roadmap for a structured interaction, engagement and cooperation in coming years. The Summit renewed India's commitment to Africa. The two historic documents, the Delhi Declaration and the India Africa Framework of Cooperation were adopted at the end of the Summit. The Delhi Declaration is a political document that covers issues of bilateral, regional and international interests to India and Africa, including our common positions on UN reforms, climate change, WTO and international terrorism, etc. the India Africa Framework for Cooperation spells out the agreed areas of cooperation. Prime Minister announced a substantial increase in the existing lines of credit to Africa to US $ 5.4 billion over the next five years, and a separate grant of US $ 500 million for projects in the areas of capacity building and human resource development. The Heads of State-Government from Africa who attended the India Africa Forum Summit included Mr. Jakaya Mrisho Kikwete, President of Tanzania, Prof. Alpha Oumar Konare, Chairperson of the African Union Commission, Mr. Joseph Kabila Kabange, President of Congo, Mr. John Agyekum Kufuor, President of Ghana, Mr. Abdoulaye Wade, President of Senegal, Mr. Thabo Mbeki, President of South Africa, Mr. Yoweri Kaguta Museveni, President of Uganda, Mr. Tertius Zongo, Prime Minister of Burkina Faso and Mr. Meles Zenawi, Prime Minister of Ethiopia.

There were several other high-level visits from Africa including Ethiopian Prime Minister, Meles Zenawi, Mr. Paul Kagame, President of Rwanda and Dr Boni Yayi, President of the Republic of Benin. Regular exchanges continued at the ministerial and official levels.

India extended several lines of credit to African countries for specific infrastructure development projects. Both the TEAM-9 and ECOWAS have fully utilized the lines of credit extended to them for projects in different sectors, ranging from agriculture, health, rural electrification, transport and power, which are in the various stages of implementation. Our ongoing political and economic engagement with the Africa Union Commission continued to strengthen, as also our institutional cooperation with regional organisations such as COMESA, SADC, ECCAS and EAC. The Aid to Africa budget of the Ministry was used for other cooperation programmes.

Two successful India-Africa Project Partnership Conclaves were organised by the CII with the support of the Ministry, the first in Dar-es-Salaam on 28 August 2008 and the second in New Delhi from 22-24 March 2009. FICCI also organised the India-Africa Business Partnership Summit in New Delhi on 19-20 January. All these events witnessed a high-level of participation from Indian and African businesses.

All these initiatives have significantly enhanced India's engagement with countries in Sub-Saharan Africa and have come at a time of increasing private sector engagement in Africa. Two-way trade has increased from US $ 5.5. billion in 2001-02 to around US $ 36 billion in 2008-09 representing an almost seven-fold increase in as many years. Bilateral investment is approximately US $ 17 billion.

India opened resident Missions in Mali and Nigar. The Gamba, Gabon and Madagascar opened their Missions in New Delhi and Mali announced its intentions to open one soon.

The Government of India's prestigious Pan-African e-Network Project was formally inaugurated on 26 February 2009 by the External Affairs Minister Shri Pranab Mukherjee in New Delhi for eleven countries, out of the 35 countries that have signed the agreements to join the Project. 4 more African countries signed the agreement for joining the Government of India sponsored Pan-African e-Network project, taking the total to 39.

5th CII-EXIM Bank India-Africa Conclave on India-Africa Project Partnership 2009 was held from 22-24 March 2009 at New Delhi. Nearly 500 delegates from Africa and more than 300 from India attended the Conclave. India-Africa two-way trade which was around US$36 billion in 2007-08 has already reached US$33 billion in the first nine months of 2008-09.

Number of training slots for African countries under the Indian Technical and Economic Cooperation programme was around 1500 and the scholarships for higher studies was around 500.

Dr. Boni Yayi, President of the Republic of Benin, made the first ever State visit to India from March 3 to 7, 2009. Five agreements were signed, including for establishment of an IT Training Centre, a Technology Demonstration Centre, and cooperation in small scale industry sector. Prime Minister announced a US$15 million Line of Credit and US $ 2 million grant to Benin.

Vice President Shri Mohammad Hamid Ansari visited South Africa during May 8-10, 2009 to attend the inauguration ceremony of Mr. Jacob Zuma, the 4th democratically elected President of South Africa.

EUROPE

PM Gordon Brown of UK visited India to attend the 4th India-UK Summit which took place in New Delhi from 20 - 21 January 2008. Prime Minister Dr. Manmohan Singh met Mr. Gordon Brown again in London on the sidelines of the G-20 Summit on 1 April 2009. Mr Nicholas Sarkozy, President of France, accompanied by a high level Ministerial and business delegation, visited India from 25 - 26 January 2008 and was the Chief Guest at the Republic Day parade. Prime Minister Dr. Manmohan Singh visited Paris for the India-France Bilateral Summit on 30 September 2008. Both PM and President Nicolas Sarkozy reaffirmed the Strategic Partnership between India and France and their commitment to further strengthen cooperation in core areas such as civil nuclear cooperation, space and defence. Germany continued to be India's largest trading partner within the EU. Dr. Frank Walter Steinmeier, German Federal Chancellor and Minister of Foreign Affairs, visited India, from 19-21 November 2008. Recently, scientific and technological cooperation has emerged as one of the key elements in the Indo-German interaction. Bilateral visits between India and Spain at the ministerial level continued during the period, the most notable being the visits by Indian Ministers of Finance, Health and Family Welfare and Petroleum and Natural Gas, to Spain. India continued to strengthen bilateral relations with Italy at different levels. Prime Minister Dr. Manmohan Singh met PM Mr. Silvio Berlusconi on 24 October 2008 on the sidelines of the ASEM Summit in Beijing.

India has traditionally enjoyed warm, friendly and close relations with countries of the Nordic as well as Central and Eastern Europe. Efforts to diversify and deepen India's friendly relations with these countries were pursued assiduously. The potential for high technology manufacturing in India, cooperation in petroleum, non-conventional energy. bio-technology, nano-technology and engineering, together with areas like deep-sea fishing and food processing raised new possibilities for collaboration. Ministerial and official interactions with these continued. Mr. Kostas Karmanlis, Prime Minister of the Hellenic Republic visited India from 10 - 13 January 2008. Mr. Ferene Gyurcsany, Prime Minister of Hungary visited India from 16-19 January 2008. During his visit, he called on the President and met the, Prime Minister UPA Chairperson, Leader of Opposition in Lok Sabha, Ministers of External Affairs, Petroleum & Gas and Commerce & Industry. From Sweden, Trade Minister, Public Health Minister, Minister for Migration and Asylum Policy and Crown Prince visited India during the period. The Standing Committee on Foreign Affairs from the Swedish Parliament paid an official visit to India in January 2009. Bilateral visits between India and the Czech Republic included the visit by MoS (AS) Shri Anand Sharma and Commerce & Industry Minister Shri Kamal Nath and from the Czech side, the visit by their Industry and Trade Minister and the Chief of the General Staff of Czech Armed Forces. Former President of India Dr. A.P.J. Abdul Kalam visited Finland in April 2008 to attend a seminar there and President of Finland Mrs. Tarja Halonen visited India from 5 - 7 February 2009 to attend the Delhi Sustainable Development Summit. With Poland, there were regular visits at various levels. General Deepak Kapoor, Chief of Army Staff, paid a goodwill visit to Poland in March 2008. Following the visit of Anders Fogh Rasmussen, Prime Minister of Denmark, to India from 4 – 8 February 2008, bilateral relations between the two countries were further strengthened. There was increased interaction between India and Turkey during 2008-09. The Prime Minister of Turkey Recep Tayyip Erdogan paid an official visit to India from 21-24 November 2008.

West Europe

Hon'ble President Smt. Pratibha Patil paid a State visit to Spain from 20-23 April, 2009 where she was received with great warmth and full state honours. During the visit MoUs on Agriculture, Renewable Energy and Tourism were signed.

The G8 summit took place at L'Aquila from July 8-10, 2009. Prime Minister attended the Summits Earlier EAM attended the Foreign Ministers' meeting on stabilization of Af-Pak on June 26 in Trieste and had a bilateral meeting with Italian FM on the sidelines.

Prime Minister, Dr. Manmohan Singh visited France as the Chief Gust of Honour at the French National Day celebrations held in Paris on 14 July, 2009. A 400 strong Indian military contingent led the Bastille Day parade on the occasion. This symbolized the friendly and strategic partnership between India and France.

The 20th Ministerial India EU Troika meeting was held in Prague on 29 June, 2009. The Indian delegation was led by External Affairs Minister, Shri S.M. Krishna and the EU side was led by Mr. Jan Kohut, the Czech Minister of Foreign Affairs, the incoming Swedish Presidency and Ms. Benita Ferreo Waldner, the EC Commissioner for External Relations and European Neighbourhood Policy. The Troika Ministerial meeting was the first high level political interaction that took place between the two sides after the formation of the new Government in India. During the meeting, both sides took stock of the progress post Marseille Summit of September, 2008 and discussed about the preparations required in the context of the forthcoming 10th India-EU Summit to be held in New Delhi on 6 November, 2009. Both sides also held wide ranging discussions on regional and global issues.

European Union

India and the EU (European Union) are indispensable poles in the emerging multi-polar structures. Exchange of high level visits between India and Europe were maintained and summit-level interactions took place. India's engagement with EU intensified and diversified in fields such as defence & security, nuclear and space, trade and investment, energy, food security, climate change, science and technology, culture and education. Special envoys were sent to all the EU countries seeking support for waiver in the NSG for Civil Nuclear Cooperation with USA. Following the Mumbai terrorist attacks, leaders of EU and member States sent messages and made telephone calls condemning the attacks, conveying condolences for the victims and reaffirming solidarity in the fight against terrorism, Prime Minister Dr. Manmohan Singh visited Marseille, France, for the 9th India-EU Summit on 29 September 2008. PM had discussions with EU/French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso. The Summit, inter alia, reviewed India-EU joint Action Plan of 2005 and issued a revised plan extending Strategic Partnership to new areas. It also issued a Joint Work Programme (JWP) for Indo-EU Cooperation in Energy, Clean Development and Climate Change. PM. also attended the India-EU Business Summit titled, 'New Synergies for Partnership' which was held on 30 September in Paris. The 19th India-EU Troika Foreign Ministerial Meeting was held on 30 May 2009 in New Delhi and the India-EU Strategic Dialogue was held on 05 December'08 in New Delhi. In addition, 4th Round of the India-EU Energy Panel Meeting and the 11th Meeting of the India-EU Joint Working Group on Consular issues were held in New Delhi on 08 September and 23 May 2008, respectively.

The EU is India's largest trading partner. Bilateral trade crossed Euro 55 billion in 2007 and is targeted this to reach Euro 100 billion in 5 years. India and Europe have been witnessing a very dynamic investment relationship.

USA

The year 2008 was marked by an intensification of the bilateral engagement between India and the USA. The signing of the Indo-US civil nuclear Agreement in Washington on 10 October 2008 was a culmination of the civil nuclear energy initiative announced during the visit of Prime Minister Dr. Manmohan Singh to the USA in July 2005. India successfully concluded an India-specific Safeguards Agreement with the International Atomic Energy Agency (IAEA) on 1 August 2008 which paved the way for the USA to approach the 45 nation Nuclear Suppliers Group (NSG) for an adjustment of the NSG guidelines to enable its Members to enter into civil nuclear cooperation and trade with India. The formal signing of the Agreement by External Affairs Minister, and his US Counterpart Secretary of State, Dr. Condoleeza Rice took place on 10 October 2008 in Washington. The agreement is a symbol of the transformed nature of the bilateral dialogue and has added strategic content to the relationship. It has also opened up vast opportunities for bilateral, economic and high technology engagement.

While economic and commercial ties, defence cooperation and people to people contact were other priority areas of focus in the bilateral agenda, Indo-US consultations on global issues of common concern and the dialogues, work plans and implementation groups for bilateral initiatives in energy, education, science and technology, health, space, agriculture among others, continued to add depth and strengthen the Indo-US linkages.

Several high-level visits took place during the period. PM Dr. Manmohan Singh visited Washington in September 2008. In his meeting with President Bush the two leaders reviewed the entire gamut of bilateral relations and expressed satisfaction on the achievements and progress made on the bilateral agenda and was set out in the Joint Statements of July 2005, issued during PM's visit to Washington and of March 2006, issued during the visit of President Bush to India.

US Secretary of State Dr. Condoleeza Rice visited New Delhi in October 2008 and held discussions with EAM Shri Pranab Mukherjee. The latter visited Washington DC from 24-25 March 2008. He met his counterpart and also called on President George Bush. He interacted with a select group of scholars at the Camegie Foundation, a Washington based think tank. PM also visited Washington in November 2008 to attend the G-20 Summit.

Mr. William Burns, Under Secretary for Political Affairs, US State Department visited India during 10-13 June 2009. He held talks with Foreign Secretary during which the two sides reviewed the existing architecture for bilateral dialogue and discussed new elements of cooperation which could form part of the new bilateral agenda and regional and global issues of common interest and shared concern. Under Secretary Burns called on the Prime Minister and handed over a letter addressed to him by President Obama. He also called on EAM, Home Minister, HRD Minister, Deputy Chairman, Planning Commission and the Leader of Opposition.

Commerce and Industry Minister Shri Anand Sharma visited Washington during 16-19 June 2009 to attend the 34th anniversary of the US India Business Council. He met with his US Counterpart Ambassador Ron Kirk, US Trade Representative and discussed Indo-US trade relations. CIM also met with US Commerce Secretary Gary Locke and US Secretary of State, Ms. Hillary Clinton at the Synergies Summit hosted by the US India Business Council.

UN National Security Advisor, Gen. James Jones visited India during 25-26 June 2009. He held talks with his Indian counterpart and discussed security cooperation and global issues of common concern. NSA Jones called on Prime Minister and Raksha Mantri.

US Secretary of State, Ms. Hillary Clinton visited India during 17-21 July 2009. She called on PM and held delegation level talk with External Affairs Minister. The five-day visit gave a boost to Indo-US relations and laid the roadmap for bilateral interaction in the coming years. Secretary of State and EAM jointly announced a new agenda for Indo-US relations in its "third Phase" (defined as 3.0 by Secretary of State) categorized as the five pillars of the relationship. They are
science, technology, health and innovation;
strategic cooperation;
energy and climate change;
education and development; and
economics trade and agriculture. The revised dialogue architecture establishes new formalized interaction in the fields of health, education, women's empowerment, climate change and strategic issues. Speaking at the Joint Press Conference after the delegation level talks, Secretary Clinton reiterated that deepening of Indo-US relationship was a personal priority for her. External Affairs Minister reciprocated the commitment of the US to strengthen bilateral relationship and conveyed the importance India attaches to Indo-US strategic partnership.

Two agreements - Technical Safeguards Agreement (Space) and an Indo-US Science and Technology Endowment Fund and Board Agreement were signed during the visit. The S&T Agreement seeks to establish an India-US Board and an Endowment for developing Joint Research and Development, Innovation, Entrepreneurial and Commercialization Activities in Science and Technology. The Technology Safeguards Agreement would allow India to launch third country civil or non-commercial satellites of US origin and which have US components. The two sides also agreed to a formulation on End Use Monitoring (EUM) to be included in letters of offer and acceptances for defence equipment to be acquired from USA for Government of India. A joint statement was issued during the visit highlighting the significance of Indo-US relationship and the global and bilateral agenda that would be pursued by the two sides. Secretary Clinton's visit was high on content and symbolism. The two sides discussed bilateral, regional and global issues and affirmed their commitment to strengthen Indo-US strategic partnership. She conveyed an invitation from President Obama to Prime Minister to pay a State visit to Washington on 24 November 2009. This is the first invitation extended by the new US Government for a State visit by any Head of State of Government.

Defence and Security

The fifth meeting of the India-US Senior Technology and Security Group was held on 11-12 May 2009 in Washington USA. Issues related to Technology Transfer and Technology Collaboration were discussed.

Admiral Timothy J. Keating, Commander, US Pacific Command visited India from 13-15 May 2009 to discuss with Government of India issues related to the regional security situation, terrorism, and maritime security.

Shri Vivek Katju, Special secretary (Pol & IO) in MEA led the Indian delegation for the 11th meeting of the India-US Joint Working Group on counter-terrorism in Washington, 17 June 2009. The meeting enabled the Working group to address a wide range of issues relating to Counter Terrorism and India's membership of the Financial Action Task Force.

Energy and Science and Technology Partnership

The second meeting of the India-US Civil Nuclear Working Group, was held from 28- 30 April 2009 in Idaho National Laboratory, Idaho, USA. Both countries identified areas of collaboration in the field of nuclear energy and reactors.

A delegation comprising concerned GoI Ministries and Industry representatives participated in BIO 2009 Exhibition from 18-21 May 2009, in Atlanta, USA. India's leading pharmaceutical and biotechnology companies and GoI Ministries demonstrated their technological capabilities and explored opportunities for enhancing biotech exports and R & D collaboration.

India-US Biotechnology and Life Sciences Working Group under the bilateral High Technology Cooperation Group met on the sidelines of BIO 2009 on 20 May 2009 in Atlanta. Discussion focused on differentiation between legitimate generics and counterfeits; Intellectual Property Rights (IPR) issues like data protection, tractional knowledge disclosure norms; capacity building in harmonising regulatory frame work and collaboration in R & D.

The Obama Administration sent its first delegation to India from February 15-24, 2009, to mark the 50th anniversary of American Civil Rights leader Dr. Martin Luther King Jr's visit to India to study Mahatma Gandhi's teachings. The delegation included Dr. King's eldest son, Dr. Martin Luther King III. Ambassador Richard Holbrooke, US Special Representative for Afghanistan and Pakistan, visited India from 15-16 February. He called on EAM Shri Pranab Mukherjee, on 16 February, and discussed the situation in Afghanistan and Pakistan with them.

Canada

India's relations with Canada were substantively reinvigorated during the period with the Canadian Government under Prime Minister Stephen Harper continuing to consider relations with India a foreign policy priority. Canada's Foreign Minister, Mr. Maxime Bernier visited India from 10-12 January 2008. Canada's Deputy Minister for Citizenship and Immigration, Mr. Richard B. Fadden visited India from 12-18 January 2008. India and Canada opened a new chapter in their relations when Canada supported India's Safeguard Agreement with the IAEA and it also joined the NSG's consensus decision to allow nuclear trade with India.

Canada India Foundation organized a Canada India Energy forum in Toronto on April 16-17, 2009 to identify opportunities for bilateral cooperation in areas of renewable, fissile and nuclear energy. Invitees included energy companies, government departments and regulatory agencies, policy makers, legislators, investors, bankers and financiers from both countries. The Government of India delegation was led by Deputy Chairman, Planning Commission.

A Government of India team led by Dr. R.B. Grover, Director (Strategic Planning Group) in Department of Atomic Energy and Mr. Don Sinclair, Director General, International Security Bureau, Department of Foreign Affairs and International Trade, Canada held discussions on 21-22 May 2009 on the draft agreement for civil nuclear cooperation.

India-Canada Dialogue on Strategic Issues was held on 18 June 2009 in Ottawa. Both sides exchanged perceptions for enhancing mutual understanding on the situation in the South Asian region, issues related to disarmament, refugee situation, disaster management and other global issues of common concern.

The India-Canada Joint working Group on Counter-terrorism met in Ottawa on 19 June, 2009. The meeting enabled a discussion on global threat perceptions, ongoing terrorist investigations, technical cooperation in the area of counter-terrorism, drug-trafficking etc.

The 3rd India-Canada Joint Committee on Science and Technology Cooperation was held in Ottawa on June 8, 2009.

On June 4, 2009, Punjab's Minister of Agriculture, Mr. Sucha Singh Langah and Manitoba's Deputy Premier and Agricultural Minister Rosann Wowchuk signed.

MoU between Manitoba and Punjab on Food Development Park to provide the Manitoba's expertise to support establishment of a food development centre in Punjab to expand agri food industry.

The first meeting of the India-Canada Environment Forum which has been set up under the India-Canada Agreement for cooperation in the area of environment was held on 18-19 June 2009 in Ottawa.

Latin America and the Caribbean (LAC)

In the light of existing commonalities with regard to bilateral and multilateral issues and mutual economic interests, India's engagement with LAC countries intensified during the period under reference. Cross-sectoral linkages were facilitated through regular dialogue at the political and official level and also through exchange of business delegations, experts and professionals from both sides. Contacts at the institutionalised level were maintained through Joint Commission Ministerial meetings and Foreign Office Consultations. As many as 21 agreements and MoUs were signed during this time. Indian companies stepped up their presence in sectors such as oil and hydrocarbons, ICT, mining, pharmaceuticals, agriculture, auto industries, new & renewable energy and in the services sector. As part of our Development Partnership and South-South cooperation initiatives, Line of Credit assistance to the tune of US $ 160 million was announced for LAC countries and disaster relief to the tune of US $ 2.125 million was disbursed. IT Centres were also set up in three LAC countries and a total of 382 ITEC scholarships were announced and utilized by LAC candidates. The signing of a JV agreement between the national oil company (PDVSA) of Venezuela and ONGC Videsh for oil production and development activities in the San Cristobal oil field in eastern Venezuela, acquisition of the rights of Encana Corporation of Canada in 10 offshore blocks in Brazil by the BPRL-Videocon JV, Waiver of commercial debt and interest to the tune of Rs. 128 crore owned by Cuba to India and sale of 7 advanced Light (Dhruv) helicopters by HAL to Ecuador was among the important milestones in our economic/commercial relations with LAC countries.

Tuesday, April 26, 2011

Reasons for the rise of price in Silver


The price of silver has been on a run for a while now. On Tuesday, silver closed at a price of Rs 62,500 per kg.

In the last fifty days silver has given a return of around 28 per cent (to give you a sense of comparison your savings account gives you a return of 3.5per cent in one year).

In the last one year, silver has given a return of greater than 100 per cent. So what is it that is driving the price of silver to such astonishing levels?

Silver: The industrial element

While gold may be a favourite with Indians, it is silver that has a lot of industrial uses. This is primarily because silver is the best conductor of electricity, the best heat transfer agent, the best reflector of light, a good lubricant and a versatile catalyst and alloy.

At the same it is also the most malleable and ductile.

As a recent report brought out by Hinde Capital puts it "It is used in photography, electrical applications, particularly in conductors, switches, contacts and fuses. Silver alloys are used in batteries as cathodes."

And as times goes by more and more uses of silver are being found.

"As a bactericide, silver is used in water purification and air handling systems. Silver is also a natural biocide and is very effective against bacterial infections such...New products using silver's biocidal qualities are being developed each year; clothing, bandages, toothbrushes, door-knobs (flu-protection), keyboards, the list goes on growing."

All these industrial uses ensure that there is a good demand for silver. But that still does not tell us why the silver price is going up so fast.

Is the world running out of silver?

If some of the premier silver analyst of the world are to be believed the world is running out of silver. Some like Adrian Douglas, the proprietor of Market Force Analysis and also a director of GATA (the Gold Anti-Trust Action Committee), even suggest that the world will run out of silver in 2020, and silver will thus become the first element on the periodic element likely to become extinct.

In fact if one believes numbers put out by Theodore Butler, the world's foremost silver analyst, the situation gets very scary.

Butler has mentioned in several interviews in the past, that silver inventories have declined to 1 billion ounces ( 1 troy ounce = 31.1 grams) from 10 billion ounces in 1940.

In comparison, he says that the world has around 5 billion ounces of gold. So if Butler is to be believed the world has five times more gold than silver.

Of course if this figure is true, the price of silver in the days to come is going to go through the roof.

While Butler's estimate might be rather extreme, numbers clearly show that the supply of silver is less than demand.

The Silver Institute, which tracks silver supply, reports that from 2000 to 2009 (the latest data available), the supply of silver went up to 709.6 million ounces, up from 591 million ounces.

This shows an increase of around 2per cent per year. The silver demand in 2009 stood at 889 million ounces. So demand was 25per cent more than supply.

The difference between supply and demand was met out of sales of silver scrap.

Why not recycle silver like gold?

Gold is typically recycled and handed down across generations. The same is not possible for silver, given that is largely used as an industrial metal in very small amounts.

Thus it is very difficult to recycle silver. Also at its current price it does not make monetary sense.

So why not produce more silver?

The earth's crust has 17.5 times more silver than gold, but the production of silver cannot be increased overnight.

A majority of silver (around two-thirds) is mined as a by product of mining of other metals like copper, lead and zinc. So production of silver in a way is linked to the production of other metals.
The skewed gold silver ratio

Silver bulls have been of the view that the price of gold and silver over the period of history has been in the ratio of 15:1.

As Jeff Nielson, in a recent column "For most of the last 5,000 years it has averaged approximately 15:1 until this century, when a combination of developments skewed this ratio to its most extreme imbalance in 5,000 years."

The current ratio of gold and silver is around 35. So silver bulls have been arguing that due to this the price of silver has to go up.

China is buying silver

It seems the Chinese have also taken fancy to silver. The country imported 122.6 million ounces of silver in 2010, when five years back it had exported 100 million ounces of silver.

This increase in imports has largely been on account of people taking fancy to silver jewellery, as gold jewellery has become extremely expensive.