A recent editorial in the Peoples daily, ran a piece on the Chinese view of India-Pakistan relations, something it hasn’t done too often. At a time, when China’s soft power in the region is being questioned, the editorial seeks to comment on the people’s view of India-Pakistan anti-terrorism efforts, saying that although the talks didn’t really show results, they are “important steps towards mutual political trust”.The editorial concludes with ‘The efforts for peace once again prove that dialogue is the sole path to resolving differences between counties. India and Pakistan’ steps on this road are not big yet; but they are moving, in a positive direction.’

Is this a precursor to China’s bid to dominate the region, and usurp America’s role as Asia’s policeman?

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Five days after Indian Foreign Minister Pranab Mukherjee visited Beijing to settle India - China border issues, and weeks after India discovered Chinese threats to its communication network and other space assets, India launched the Integrated Space Cell (ISC). The establishment of the ISC oddly follows an agreement between India and China on peace and tranquility, ongoing confidence building measures and a MoU on defence cooperation - marking another twist in the ‘friendly enemy’ status the two countries share.

Justifying the formation of the cell, Defence Minister A. K. Antony said at the United Commanders’ conference that India wanted to utilise space for peaceful purposes and remained committed to non-weaponisation of space. However, “offensive counter space systems like anti-satellite weaponry, new classes of heavy-lift and small boosters and an improved array of military space systems have emerged in our neighbourhood.” according to the Hindu.

The Space Cell will be put under the command of the Integrated Defence Services Headquarters and will act as a single window for integration among the armed forces, the department of space and the Indian Space Research Organization (ISRO), the Times of India reported.

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Foreign Ministers of Russia, India and China met for the eighth time in Yekaterinburg, Russia to reaffirm their commonality, in views on the global situation and, for the first time, set out coordinated positions on Kosovo, Iran, Afghanistan and the Asia-Pacific region, The Hindu reported.

Russian Foreign Minister Sergei Lavrov said a joint communique on boosting links between the three large developing countries would look at enhanced co-operation on humanitarian aid, fighting terrorism and combating drug trafficking.

“I believe that against the backdrop of a multi-polar world it is necessary to advance cooperation between Russia, China and India, the three countries that are rapidly growing and enjoying strong economic growth,” said Chinese Foreign Minister Yang Jiechi.

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The maritime arms race in Asia has crossed another threshold with the publication of satellite pictures of a massive Chinese underground submarine and warship base giving it a significant tactical advantage in the strategically important South China Sea.The naval base has been constructed by tunnelling into the mountainous shoreline of China’s southern Hainan Island near a place called Sanya.

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Its been a long march since Thomas Friedman declared the world to be flat. Now, it seems as economies grow larger and countries struggle to gain control of depleating natural resources national  barriers are rising.  

A story by the wall street journal says that the global economy appears to be entering an epoch in which governments are reasserting their role in the lives of individuals and businesses. Once again, barriers are rising. Call it the new nationalism.

The report goes on to say: Just a decade ago, Asia, Latin America and Russia were on financial life support from the International Monetary Fund and World Bank. The U.S. was planning yet another round of global trade negotiations. The European Union was writing a constitution to shift power to Brussels from member nations.

Now borrowers shun the IMF and World Bank. Trade talks are shelved. Barriers to foreign investment are rising around the world. State-owned companies are expanding, particularly in oil and gas. Public support of immigration restrictions is growing in countries from the U.S. to India.

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Emerging countries India, China, Brazil, Mexico and South Africa - the outreach countries of the G8 met in Beijing yesterday ahead of the G8 summit to be held in Japan’s northern island of Hokkaido in July. The outreach countries, also permanent invitees to the G8 are meeting to discuss multilateral trade and climate change issues.  The discussions will be centered around developing a coordinated approach before the annual summit of G-8 leaders in Japan in July.

India’s Foreign secretary and ex Ambassador to China, Shiv Shankar Menon is in Beijing on a three day visit and met Chinese Assistant Minister of Foreign Affairs He Yafei and Vice Minister of Foreign Affairs Wang Yi. Menon’s visit is a precursor to India’s External Affairs Minister Pranab Mukherjee’s visit to Beijing, likely in June, and comes on the heels of the successful relay of the Olympic torch in New Delhi.

During the meetings Menon pitched for the principle of equity in global climate change negotiations and reiterated India’s position of collective but differentiated responsibility between developed and developing countries in reducing greenhouse gas emissions - a point of view that found echo among officials of the four countries, official sources told Thaindian in New Delhi.

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India’s Minister for Culture & Tourism opens first China office in Beijing

The Indian Minister for Culture & Tourism, Madame Ambika Soni opened the nations first national tourism office in Beijing last night at a star studded gala dinner at the Beijing hotel. This follows the Chinese establishment of a similar office in New Delhi last August.

The new office, sited on the 29th floor of the East Tower of Beijing’s prestigious Twin Towers - the same building as Dezan Shira & Associates regional office - is headed up by Mr. S.R. Meena and is the 14th overseas office of the Indian Tourism Department.

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Kamal Nath, India’s Minister of Commerce provides his comments on how to maintain India’s growth and what lies ahead.

The full interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi

Kamal Nath is the third of the big three of Indian foreign politics – after Dr. Manmohan Singh, the Prime Minister, the Minister of Finance, Mr. Chidambaram, who we interviewed yesterday, and Kamal Nath, the charismatic and globe trotting Minister of Commerce. Together, these men represent the unified force of a resurgent India, united in views and passion for the country, and amongst the most recognizable Indian politicians around the world, these are globe trotting reformists, determined to battle the negativity of coalition politics and underpin India’s long awaited position at the high table of world trade. In this frank discussion, Mr. Nath touched on many issues, but especially the desire to get government out of the way and allow the private sector to flourish.

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India’s Finance Minister lays down his reasoning India will escape a US recession, plus comments of Indian Government Corruption.

The full interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi

Meeting with India’s Finance Minister, Mr. P. Chidambaram, is always a lesson in elocution and delivery. One year ago, when we last met him in our annual series of meetings with Indian Ministers in Delhi, he was shy, somewhat reserved, yet bullish. India was doing well, with growth rates at a consistent level of between 7-9% looking sustainable, and the Prime Minister, Dr. Manmohan Singh, stating to us that as long as India could keep such growth rates, it could afford it’s massive redevelopment, infrastructure and rural expenditure needed to lift the country into a true democracy with all people able to share in it’s wealth. “As long as those rates are sustainable” both the PM and Mr. Chidambaram chorused, “India’s continued development is assumed”.

Just a year on, we are faced with a different set of issues that could impact upon the Indian, and quite possibly, other emerging market economies, especially that of China. The US sub-prime crisis has dried up liquidity and seen money vanish. The US dollar is approaching record lows. The price of gas has just exceeded USD100 a barrel, respected international financial institutions are going bankrupt, and the prices of commodities in foods and metals have doubled and tripled. A year on, it’s not just a matter of India bullishness. A large blot has appeared on the landscape.

Sitting down with Mr. Chidambaram we had just one question to ask in our hour long discussion: “Can India escape a potential US recession ?”

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India’s State Secretary for Civil Aviation, Ashok Chawla provides his blue print for development and investment

Interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi

The number of India’s total domestic passengers has doubled in just five years, and is set to expand even more rapidly. With more airports per square mile than any other Asian nation, a legacy of the British, much however needs to be done to upgrade, improve, and rebuild Indian airport capacity as anyone who has arrived at Mumbai or Delhi international airports well knows. But beyond the surface veneer of construction in progress, shabby terminals and dodgy washrooms, a revolution is occurring.

Ashok Chawla:
India has over 450 airports nationally, of which about 90 are currently operational. In conjunction with the Ministry of Urban Development (see other interview) we are highlighting a number of domestic airports for development which have a key strategic development role to play. However, firstly let me explain that all airports were previously managed by the Airports Authority of India, and that this has now changed. The AAI is now involved in two main models for airport infrastructure development. These are:

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