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Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN




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2point6billion.com discusses business and investment news rising from the geopolitical relations of China and India, and the interactions these two countries have with the rest of emerging Asia.



Monthly Archives: August 2007

India’s nuclear deal – home & neighbours ?

In July 2005, US and India reached an agreement on civilian nuclear energy cooperation which aimed at warming US-India relations, lift the US moratorium on nuclear trade with India, provide US assistance to India’s civilian nuclear energy program, and expand US-Indian cooperation in energy and satellite technology. With this deal US recognized India’s history of imposing voluntary safeguards on its nuclear program. It also recognized that India has a good record on proliferation. Although it is not a signatory to the Nuclear Non-proliferation (NPT) treaty, India has maintained strict controls on its nuclear technology and has not shared it with any other country. 

But India’s own political parties, all this time, had been thinking the other way. Some of these have never been happy with the US and now using this nuclear treaty as a weapon, they have raised voice over Indian government’s increasing relationship with the US. In this week, they have asked the government to stall the agreement and demanded an immediate review of all strategic aspects of the agreement  And if it not done, they have threatened mass protests across the country and also a re-look at its relations with the ruling United Progressive Alliance.

The left front is asserting that using this deal, US is putting pressure on India to buy fighter planes, helicopters, radars and artillery involving multi-billion dollars investments of Indian forex reserves. The left front says, this deal for US alone, is a strong “commercial advantage”. 

Pakistan & the deal?

Pakistan though a strong alliance of US since 9/11 happenings, has not received a similar deal on from Washington. Some critics say this apparent U.S. favoritism toward India could increase the nuclear rivalry between these two nations, and potentially raise tensions in the already dangerous region. 
Pakistan is worried that this will possibly feed the Indian nuclear weapons program and therefore weaken deterrence. Some experts feel these two countries, both already nuclear, will now deal more cautiously with each other. Pakistan is already exposed as a proliferation risk. Pakistani nuclear scientist A.Q. Khan’s illicit nuclear network, revealed in 2004, had shocked the world with its trade of nuclear technology. These experts therefore has a reason to worry worry that this US-India deal could even prompt Pakistan to go elsewhere for a similar nuclear deal. 

China & the deal? 

Some analysts feel that China’s rise in the region is prompting US to seek a strategic relationship with India. The US is trying to cement its relationship with India to counter balance China. The US administration is hoping that improving ties with India is the only way to politically deal with China.

Posted in Business | 1 Comment

Power Production, 2006

Numbers:(“2830″,”664″,”Billion kWh)

While China was surplus for the first time in 2006, India had a 14.5% peak power deficit.   

Posted in The Comparator | Comments Off

Western media highlights India’s successes & failures

As India celebrated its 60th Independence Day yesterday, the world news agencies, particularly the European press has focused in the recent weeks on “this day of pride for India” and “the arrival of a golden (Indian) age“. The world today has accepted India’s rise to prominence and its emergence as a force to recon with.
 
For last many days, mainstream British newspapers have been running ‘India at 60′ series. While The Times produced a special India supplement, The Guardian devoted its entire features pull-out to “The New India“.

The Guardian’s India special’s theme was expressed by its cover headline: “This is the best place in the world to be born right now”.

Tuesday’s India specials are the culmination of a fortnight-long focus on India by the British press. These include The Independent’s attempt to answer the question, “60 years after Partition, why is India doing so much better than its immediate neighbour & rival – Pakistan, who too got independence at the same time?” Continue reading

Posted in Foreign Trade | Comments Off

Cumulative Trade Surplus, as at end July 2007

Numbers:(“136.8″,”-20.6″,”Billion $)

India had a deficit of $ 11.84 bn during the same period in 2006, its exports continued to slide in the face of a rising rupee while China’s surplus grew despite recalls of its goods in the USA and other countries.     

Posted in The Comparator | Comments Off

Independence Day wishes to India

id-day-mail-flyer.jpg

Posted in Business | 2 Comments

Cricket (Shen Shi Yun Dong) – The Gentleman’s Game to being a Noble Game

final-cc.bmpCricket – evokes passions within South Asia synonymous to those exhibited by the Latin Americans & Europeans for Soccer.

An English sport – primarily now played in the Commonwealth Nations, the former British colonies. The centre of gravity of the sport is though now centered on India where it evokes a billion passions and several more $$$. No longer is it the gentleman’s sport played over the English greens in pristine whites for it is characterized by raucous crowds screaming their hearts out. Indian wins within India are cheered by scenes depicting those of street parties and fire works displays of the nature on display at the millennium eve’s party on the Sydney harbour while losses at times result in extremes from violence, discussions within the parliament (YES) to burning of effigies of the cricketers. Why? Only for cricket being the sport which puts India a force to reckon with – a country of a billion + which struggles to draw a single ‘gold’ in the Olympics! Not to mention the cricketers are amongst the highest grossers in the country and including endorsements their annual take homes runs into millions and millions of $$.

But then – I am not here trying to write on Indian Cricket but rather cricket in China!

The Chinese cricket team is the team that represents the country of the People’s Republic of China in international cricket. They became an International Cricket Council affiliate member in 2004. Hong Kong is a member of the ICC in their own right, becoming an ICC associate member in 1969. Hence, players from Hong Kong are not eligible to represent China in international competition.

Although cricket was brought to China by the British as long ago as 1858, the game was never taken up by the locals and, beyond a few expatriate tournaments, did not exist in the world’s most populous nation until the start of this century. Continue reading

Posted in Business | 7 Comments

Gini Coefficient of Inequality, 2006

Numbers:(“44.7″,”32.5″)

Gini Coefficient measures the degree of income equality, 0 indicates perfect equality, and 100 indicates perfect inequality where one
person owns everything.  

Posted in The Comparator | Comments Off



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