Indicia Knowledge Brief A Daily Assessment on Indian Defence and Internal/Homeland Security March 16, 2015. Primary aims of Indicia Daily Brief are two-fold. First, it distills infinite information into a capsule form, thus saving precious time of its clients. Second, it tries to link micro-events to larger strategic canvas through its analyses, thus providing support knowledge for better understanding and decision-making. Indicia Analysis of the Day India has yet again emerged as the world’s largest buyer of weapons and military equipment, accounting for some 15 per cent of all such international imports, while Russia, despite losing monopoly over the Indian defence market, continues to hold a dominant position as the largest supplier for New Delhi. Foreign Secretary S. Jaishankar’s three-day visit to France and Germany later this month in a last-minute bid to seek closure to $23-billion Dassault Rafale fighter deal and an early works agreement with Areva on the Jaitapur nuclear power project in return for critical “Make in India” defence technologies and a joint venture for making large forgings for civilian nuclear reactors. The government is open to reviewing all cases of blacklisted defence firms on merit and has partially lifted a ban on Tatra trucks as it prepares a new policy that will allow foreign defence firms to legally hire agents, Defence Minister Manohar Parrikar said. I. National Defence and Security: India emerges as world's largest arms importer, yet again: India has yet again emerged as the world’s largest buyer of weapons and military equipment, accounting for some 15 per cent of all such international imports, while Russia, despite losing monopoly over the Indian defence market, continues to hold a dominant position as the largest supplier for New Delhi. Saudi Arabia, China, the United Arab Emirates (UAE) and Pakistan, are the next four biggest global importers. These trends have emerged from a report released by the Sweden-based think-tank Stockholm International Peace Research Institute (SIPRI). The assessment was done for a five-year period (2010-2014). Titled ‘Trends in international arms transfers’, it says India’s share in global imports has increased by 140 per cent over the previous five-year bloc, 2005–2009, indicating that New Delhi’s attempts to be self-reliant were not enough as more and more sophisticated planes, warships and radars are procured from outside “India’s imports were three times larger than those of either of its regional rivals China and Pakistan. This contrasts with 2005–2009 when India’s imports were 23 per cent below China’s and just over double those of Pakistan,” The SIPRI report said. In the period 2010–14, which is the basis of the latest report, Russia supplied 70 per cent of India’s arms imports, the USA 12 per cent and Israel 7 per cent. Acquisitions from the US are a break with the recent past. During the period studied by SIPRI, India procured fighter jets and Mi-17-V5 helicopters from Russia; specialised transport planes, the C-130-J Super Hercules and the C17 Globemaster from the US; UAV’s and radars from Israel. The previous report that studied the period 2009-2013 had said Russia supplied 75 per cent of the equipment to India, while US and Israel had 7 per cent and 6 per cent sales. This means Russia share of 70 per cent is a drop from earlier year, while the US and Israel have grown. However, in a sign of an omnipresent threat, India’s neighbour China is helping Pakistan, Bangladesh and Burma in ramping up military prowess. China is now the third largest exporter of weapons ahead of traditional manufacturers Germany, France and UK. Its biggest benefactors are Pakistan, Bangladesh and Burma — all having a shared boundary with India and could potentially cause trouble for New Delhi. The three countries accounted for 68 per cent of Beijing’s exports. New Delhi sees China’s exports to countries around India as a part of its long-term strategy of having a ‘string of pearls’ — a kind of military toe-hold in countries around India. Chinese exports of major arms increased by 143 per cent between 2005–2009 and during the latest fiveyear block 2010-14. Its share of global arms exports increased from 3 to 5 per cent, the report siad. The five biggest exporters in 2009-13 were the US, Russia, China, Germany and France. The US and Russia remained by far the largest exporters, accounting for 31 per cent and 27 per cent, respectively, of all global trade. Pakistan, which is at the fifth spot of global importers, got 51 per cent of its equipment from China and 30 per cent from the US. Gulf countries like the UAE and Saudi Arabia are also adding numbers to their weapons, with the US and the UK being the major suppliers. Source: http://www.tribuneindia.com/news/nation/india-emerges-as-world-s-largest-arms-importer-yetagain/54336.html * Jaishankar to visit France to better defence ties: Foreign Secretary S. Jaishankar leaves on a three-day visit to France and Germany later this month in a last-minute bid to seek closure to $23-billion Dassault Rafale fighter deal and an early works agreement with Areva on the Jaitapur nuclear power project in return for critical “Make in India” defence technologies and a joint venture for making large forgings for civilian nuclear reactors. Jaishankar, who will visit both countries between March 25 and 27, will get the groundwork done for Prime Minister Narendra Modi’s trip to Paris (April 10-11) and Hannover (April 12-13). While India is looking towards skill development and deepening of economic ties with Germany, the bilateral relationship with Paris is centred on space, defence and strategic ties. Although it is still early days with agreements work in progress, the finalisation of the deal for 126 Rafale medium multi-role combat aircraft (MMRCA) and freezing of technical parameters for the first two 1650 MW nuclear reactors with manufacturer Areva is a distinct possibility as both countries are eager to push their strategic relationship forward. Source: http://www.hindustantimes.com/india-news/jaishankar-to-visit-france-to-better-defenceties/article1-1326756.aspx * Indigenous Military Trucks all set to replace Tatra Trucks in next few years: The government is open to reviewing all cases of blacklisted defence firms on merit and has partially lifted a ban on Tatra trucks as it prepares a new policy that will allow foreign defence firms to legally hire agents, Defence Minister Manohar Parrikar said. The new Defence Procurement Policy (DPP), will lay thrust on development of domestic defence industry and faster acquisition process for the Indian Armed Forces. Asked about the new government’s policy on blacklisted firms, Parrikar said, the “debarment principle” is also being worked out and pointed out the basic principle is in the interest of the armed forces. “So if I have to deal with a firm which does have some earlier colour on it, it will based on merit,” Parrikar said in an interaction with journalists late last night. He added that based on merit and necessity, the government can “consider after proper verification, lifting the ban or restriction to a reasonable level”. Explaining the process, he said the state-run BEML has been allowed to supply spare parts for the Tatra trucks as long as it does not deal with the British subsidiary of the company, which was banned by the UPA following a scandal. “We have lifted the restricted ban for technical and purchases of spares from the original company provided they have nothing to do with the people who have been blacklisted,” he said. Parrikar pointed out that one should not just go by the name Tatra as there are 3-4 companies which make the trucks. “The company which has been banned is Tatra UK and we have permitted BEML to deal with the original company which is owned by different people now,” he said, adding the condition is that they should not have relations with “questionable individuals”. “A restricted Non Objection Certificate has been granted to BEML, because we do need for defence purpose Tatra vehicles. It has become critical for certain applications,” he said..... Source: http://www.defencenews.in/defence-news-internal.aspx?id=B4NOlfhj03E= * China plays down India's worry over growing sea clout: Amid concerns over its growing assertiveness in South China Sea, China said there was no "insecurity" as well as no restriction on the freedom of navigation in the region. "The problem does not exist," Chinese Ambassador Le Yucheng said referring to freedom of navigation and security in the resource-rich South China sea. Describing it as a stable region, the envoy said South China Sea was key for China's international trade. The envoy had words of praise for the Prime Minister Narendra Modi, who he said had done remarkably well to lift India's economy. "China, more than anyone else, is interested in ensuring security of the waters. 70 per cent of Chinese goods come and go through the waters," he said. Asked about the mentioning of the South China Sea dispute in the India-US joint statement issued during President Barack Obama's visit in January, Le said China took note of it and that there was no problem of security or any issue relating to freedom of navigation in the region..... Source: http://economictimes.indiatimes.com/news/politics-and-nation/china-plays-down-indias-worryover-growing-sea-clout/articleshow/46564341.cms * hearing in SC: Army doctors' battle over sixth pay commission up for In what may bring some relief to doctors serving as officers with the ministry of defence, the Supreme Court has fixed for hearing on April 13, a petition that seeks implementation of the sixth pay recommendation for them. A three-judge bench of justices T S Thakur, R K Agrawal and R Banumathi did not agree to postpone till May a petition filed by retired wing commander Dr A K Handa who had moved the SC for the dues of doctors serving or retired from the army. More than six years after the sixth pay commission recommended up gradation of the scale of government doctors, pan-India nearly 6000 officers and pensioners of the Army Medical Corps, including those who fought the Kargil war, are still battling for their dues even though in 2011, theArmed Forces Tribunal, Chandigarh directed implementation of the promotion pay scheme and the SC in 2013 ratified it. The ministry however felt that the recommended hiked pay scale under dynamic assured career progression for armed forces doctors in uniform would lead to "command and control problems". On March 12, Dr Handa's petition was placed before the three judges and it was pointed out that despite more than three months having passed, the Central government had yet to file its reply to the petition. An additional solicitor general insisted that Dr Handa's petition be clubbed with a plea for appeal filed last year by the Centre, through the defence ministry against a similar order which is scheduled for hearing in May 2015. The SC bench reminded the ASG that this petition by Dr Handa was a prayer for implementation of AFT Chandigarh judgement passed in July 2011 which had reached finality in Supreme Court in September 2013 with the apex court dismissing the appeal by the defence ministry against implementation of DACP for armed forces doctors. ... Source: http://timesofindia.indiatimes.com/india/Army-doctors-battle-over-sixth-pay-commission-up-forhearing-in-SC/articleshow/46579738.cms * Eurofighter Jets on offer by the UK If India Scraps Rafale Deal: The United Kingdom is ready to offer Eurofighter aircraft if India scraps deal to acquire French Rafale jets, UK Foreign Secretary Philip Hammond said. British authorities are aware that the “deal with Dassault has not gone smoothly,” Hammond was quoted as saying by Sputnik News. The UK sees this as an opportunity to offer Eurofighters if India opens an official competitive bidding, Hammond added. The Eurofighter Typhoon is a multirole fighter aircraft jointly produced by three companies based in United Kingdom, Germany and Spain, and Italy. Hammond is currently on a two-day trip to India. He said he has not raised the issue with Indian authorities in the course of the ongoing meetings. India chose France’s Dassault Aviation in 2012 to supply it with 126 Rafale fighter jets, scrapping a rival proposal from the producers of the Eurofighter Typhoon. However, the project has been put on hold over high costs and Dassault’s unwillingness to guarantee the performance of Rafale aircraft produced in India under transfer of technology agreements. Indian media have repeatedly suggested that the country’s authorities could abandon the Rafale deal in favor of Russia-designed SU-30 fighters. Source: https://www.ibcworldnews.com/2015/03/16/eurofighter-jets-on-offer-by-the-uk-if-india-scrapsrafale-deal/ * PROFILE: INDIA NEEDS TO CORRECT DISTORTIONS IN MILITARY China announced its annual defence allocation at US$141.5 billion on March 5, and this makes it the world’s second largest national defence budget. The USA at almost $600 billion has by far the world’s highest military outlay. It may be recalled that India had announced its own defence allocation for the financial year 2015–16 on February 28 and this is pegged at just under $40 billion (Rs.246,727 crore). This differential should not come as a surprise for the US remains a very high military spender and is also the lead nation in the world’s biggest military alliance – NATO. In the last decade, the US-led war on terror after 9-11 and the subsequent military operations, first in Afghanistan and then Iraq, have led to considerable fiscal expenditure by the Pentagon. The US is unlikely to dramatically reduce its military outlay (about 3. 5 percent of GDP ) in the near future and will remain the world’s most credible and militarily capable country for the next decade plus. In contrast, both China and India allocate under 2 percent of their GDP towards defence allocation, and given the difference in their respective GDP, the China-India gap is over $100 billion in Beijing’s favor. Most estimates aver that China is relatively opaque about its total defence spending and that the actual amount allocated to the People’s Liberation Army may be closer to $250 billion. Apart from the PLA military allocation, in past years Beijing had revealed that its internal security budget is higher than its military allocation. However this year, the internal security allocation was not indicated but one may infer that this figure will be in the range of $250 to $300 billion. In summary, the annual military and internal security allocation for China this year could well be in the $500 billion range. Given the prevailing economic trajectory of China – the annual GDP growth rate has been revised from the double digits of the last two decades to the new normal – of 7.5 percent and the current defence allocation of $141 billion represents a 10 percent increase from the last year.... Source: http://www.eurasiareview.com/15032015-india-needs-to-correct-distortions-in-military-profileanalysis/ * India’s Military Muscles Up to China Threat: India’s fear that China is encircling it has prompted the government of Prime Minister Narendra Modi to boost military spending and liberalize investment in defense. That’s drawing investor focus to four stocks – Bharat Forge (500493.IN), Larsen & Toubro (500510.IN), Pipavav Defence (533107.IN) and undervalued Tata Motors (500570.IN), which could rise by more than 50%. India’s fears stem in part from the longstanding feud with China over their Himalayan border, the one that broke into open warfare in 1962. Then when Xi Jinping visited India in September to build Sino-Indian ties, People’s Liberation Army troops made the undiplomatic gesture of moving into disputed territory to block an Indian construction project. India has accused China of more frequent incursions, similar to the rising number of visits Japan has seen from China’s air force near disputed islets in the East China Sea. India has also become wary of an increased Chinese naval presence in the Indian Ocean. Chinese companies have built ports in Pakistan, Sri Lanka and Myanmar, part of a commercial expansion designed to secure access to the Suez Canal and European markets as well as raw materials in Africa and the Middle East. But India sees China’s westward creep as part of slowly tightening “string of pearls” around New Delhi’s neck. Modi has thus worked hard to cultivate ties with Beijing’s rivals, Japan and the U.S. He hosted a gum-chewing Barack Obama as the first U.S. president to review the Indian military review during the National Day parade. And he has sparked a bromance on Twitter with Japanese Prime Minister Shinzo Abe, whom he visited in Tokyo last September. So like Japan, which in January raised its military budget 2% to a record 4.98 trillion yen ($41 billion) and China, which earlier this month said it would boost military spending by 10.1% to 886.9 billion yuan ($143.7 billion), Modi’s new budget lifts India’s military spending by 11%, to nearly 2.47 trillion rupees ($39.2 billion). That includes a 15% increase in military capital expenditure, which will go toward buying more hardware, like the 45 warships India is now building or the six submarines.... Source: http://online.barrons.com/articles/SB52018153252431963983004580520974137350474 * It’s now ok to speak of India-Israel defence ties… We’re not shy, ashamed: Daniel Carmon: I will start with a topic that has dominated the news recently — the state of the relationship between the US and Israel. There have been a number of revelations — the leaked South African diplomatic cables, more recently the former head of Mossad has spoken out on Iran. What is Israel’s position on the nuclear deal with Iran that appears imminent? And what are your concerns if the P5+1 underwrite a nuclear agreement and the global community is comfortable with it? The Israel-US bond is very strong. It is unbreakable, untouchable and I wouldn’t worry about it at all. It’s, without doubt, strongly embedded in our values, democracies, history, and the recognition of where both people and the free world should be going. There is a discussion on how to deal with the Iranian threat. I want to pinpoint specially on the Iranian threat being a threat not only to Israel. Through history and now, Israel has been compelled to face new challenges. Ours was the first country to face international terrorism. Iran is a country that is posing a threat to the whole region and, I would even dare say, to the world too. It is a country with a rogue regime with rogue activities, and engaged in international terrorism. I have personally witnessed Iranian terrorism. Iran, through its proxies, planned, attacked and destroyed the Israeli embassy in Buenos Aires. I was there and I know. Iran is trying to expand its presence in so many areas of our region in various ways. We have borders with Lebanon, Syria, Jordan and Egypt, and we enjoy a peace treaty, but Iran is trying to be on our borders. Iran is also trying to acquire nuclear and military capabilities. This is the main reason our Prime Minister (Benjamin Netanyahu) went to Washington a couple of days ago to put on the table a wake-up call, saying Iran cannot be allowed to acquire capabilities that are unconventional. The international community knows it, it has set up sanctions against Iran — both on the UN Security Council side and the economic side. These cannot be lifted before a real and agreeable solution is set, and this is what the Prime Minister wanted to say and said it out loud in the US Congress..... Source: http://indianexpress.com/article/india/india-others/its-now-ok-to-speak-of-india-israel-defenceties-were-not-shy-ashamed/ II Homeland Security * Pakistan troops violate ceasefire along IB in Jammu: Violating the ceasefire, Pakistani troops fired on border out posts (BoP) along the International Border in Jammu district. Ceasefire Violation: Pakistan Rangers Resort To Firing Along Int'l Border Pak Troops Violate Ceasefire, Target BoPs Along IB Ceasefire Violation: Pakistan Targets 10 Indian Posts,2 BSF Jawans Injured Pakistani Rangers fired four to five rounds on a forward BoP in Jughnuchak belt of R S Pura sector last night, a BSF officer said. BSF troops guarding the borderline did not retaliate to the firing. There was no casualty or damage on our side, he said. Source: http://indianexpress.com/article/india/india-others/pakistan-troops-violate-ceasefire-along-ib-injammu/ * No ‘Rambo-style’ operations in Naxal areas, SOPs being revised: CRPF: CRPF will desist from undertaking any “Rambo”-style operations in the Naxalaffected areas even as the standard operating procedures in that regard are being rejigged, the chief of the country’s largest paramilitary force has said. Also, in the Left Wing-Extremism operations theatre, more than one lakh central security troops, apart from state police forces, will now be able to get better feed and intelligence data from technological gadgets as the NTRO’s Unmanned Aerial Vehicles (UAVs) base has now been operationalised right inside the Naxal hotbed in Chhattisgarh. “We don’t need to do Rambo-style operations… we don’t want that. When we ask our boys to perform a task (in Naxal- affected areas), they do it with a prompt sincerity and hence it is our responsibility to see that they are safe,” CRPF Director General Prakash Mishra told PTI. The former Odisha DGP, who took charge of the lead anti-Naxal operations force a few months back, said that the operations of the force will now be more focused and intelligence-based rather than being done by deploying security personnel in “herds” to effect a Rambo-type offensive that requires a huge number of boots on the ground..... Source: http://indianexpress.com/article/india/india-others/no-rambo-style-operations-in-naxal-areassops-being-revised-crpf/ Indicia solicits comments and advice from readers on any aspect of the report. 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