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India Defence and Security Report Q4 2009Published by: Business Monitor International Published: Nov. 2, 2009 - 75 Pages Table of Contents
AbstractThe unexpectedly strong mandate given to the ruling United Progressive Alliance government in theApril-May 2009 national elections is a considerable positive for political stability and offers potential foreconomic reform. Nonetheless, the new government faces a daunting task to support the economy, boostdomestic security and improve relations with Pakistan and the US.The Indian National Congress (INC) now has the opportunity to implement the economic reform agendaof Prime Minister Manmohan Singh. However, more immediate priorities, such as the implementationand subsequent rollback of fiscal stimulus measures, the need to enforce government control in Naxaliterebel-controlled areas and to manage relations with Pakistan and the US will most likely take precedencein the short term, as the major commitment to troop deployment against the Naxalites showed inSeptember. The US and India finalised a defence agreement that allows the sale of sophisticated US arms to India asUS Secretary of State Hillary Clinton visited New Delhi on July 20. The move will enable India tomodernise its military, something that is likely to cause consternation across the border in Pakistan. TheUS has only recently made headway in convincing Pakistan to deploy a larger share of its armed forcesfrom the border with India to fight Islamist insurgents in its northwest provinces. This development couldnow be reversed as India is expected to spend more than US$30bn on arms over the next five years. Prime Minister Singh and Pakistani President Asif Ali Zardari met on the sidelines of the Shanghai CooperationOrganisation (SCO) summit in Russia in June, where they agreed to arrange a meeting betweentheir foreign secretaries. Although we view these initial talks - the first since the Mumbai attacks inNovember 2008 - as a positive sign towards better relations, we do not foresee any significantimprovements in bilateral ties anytime soon, at least until Islamabad is able to present evidence that it isbringing Kashmiri separatists operating from its territory under control Get Full Details About This Report >> |
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