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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: energyplay who wrote (56021)11/16/2004 5:32:22 PM
From: RealMuLan  Read Replies (1) of 74559
 
India emerging Asian power: Study

PRESS TRUST OF INDIA
Posted online: Tuesday, November 16, 2004 at 1709 hours IST
Updated: Tuesday, November 16, 2004 at 1715 hours IST




WASHINGTON, NOV 16: The new US administration must continue the general movement toward normalisation and cooperation with India whose stunning economic performance, skilled leadership and ability to function as a democracy have made it Asia's third great power, a US study on Asia has said.



The study by the San Francisco-based Asia Foundation on America's role in Asia said the progress of India and China have brought about a global shift in power--now economic but later military as well. "India's stunning economic performance, its considerable ‘soft’ or cultural power, its skilled leadership, and its ability to function as a democracy while undertaking a myriad of internal economic, cultural, social and political reforms, have made India Asia's third great power," Stephen Cohen, senior fellow at the Brookings Institution, who headed the task force on South Asia, says in the study.

The next US administration, says Cohen, must continue the general movement toward normalisation and cooperation with India that began in the late 1990s. Observing that India is no longer seen as a weak state in terms of military capabilities either, he said, "Its armed forces are highly professional, although they lack modern equipment, they are under firm civilian control, and have successfully fought several wars". However, the US should not expect India to place its armed forces at the service of American interests, he says.

Urging the US to come up with answers to several questions, including the status of the transfer of dual use technology to India's military and economic programmes, Cohen said it should support New Delhi for the UNSC permanent membership, "especially if it can put the Kashmir conflict behind it," and for membership of the G-8. Noting that the Indian economy has during several quarters been the fastest growing economy in Asia, he said, "India became a software superpower, and Indian high-tech firms are now competitive around the world, including the US where job loss due to overseas outsourcing, especially to India, has become a campaign issue in several states. There is some speculation that if present trends continue, the Indian economy might surpass that of China in ten years". Pointing out that India's rise has implications for the larger Asian canvas and American policy, he said, "Some have argued that India is a potential rival to China, and could be part of a balance of power strategy that the United States might want to pursue vis-a-vis Beijing." However, Cohen said the Congress-led government is unlikely to be interested in such a role. "Still, the direction and weight of US-Indian relations could affect American policy throughout Asia."

The study also notes, "China is rapidly becoming the world's manufacturing hub; India a key provider of services. This 'power shift' will gain further momentum if recent signs that Japan's economy is emerging from the doldrums are sustained. Needless to add, Asian nations are busy translating their growing economic power into political and strategic clout." the attention devoted to China's rise, they say, should not be allowed to obscure the fact that India is emerging as a major power in its own right. PTI tvp dv 11161452 del

Pakistan's stability, by contrast, the study says, is "fragile, and its control over radical Islamists and its own nuclear arsenal may prove unreliable."

"Indian concerns with disorder and radicalism in the Muslim world," it says, "parallel our own, and New Delhi is actively cultivating closer ties with all the major powers," including China.

It is increasingly active in East Asian markets and politics, and is making occasional naval forays East of the Malacca Strait. It is unwilling to cede a dominant role to any outside power in its neighbourhood, eager to expand commercial ties with all countries, and determined to play a larger role in global trade negotiations, the study says, adding India "appears resigned to US' closer links with Pakistan, yet resists the notion of a US mediating role on Kashmir issue."

Overall, the study says, the Asians continue to play a balancing game. Whether US influence will wax or wane will depend to a considerable degree on whether Washington can cultivate better relations with each of these powers than they possess among themselves.

China, it says, looms large as a long-term challenge to a stable balance of power in the area, but at present it is regarded as a force for moderation in the region preoccupied by daunting domestic challenges.

Under current circumstances, therefore, any US effort to promote the containment of China would be at best premature, and at worst, highly counterproductive, the study says.


Cohen urged the US to come up with answers to several questions, including the status of the transfer of dual use technology to India's economic programmes.

Noting that the Indian economy has during several quarters been the fastest growing economy in Asia, he said, "India became a software superpower, and Indian high-tech firms are now competitive around the world, including the US where job loss due to overseas outsourcing, especially to India, has become a campaign issue in several states. There is some speculation that if present trends continue, the Indian economy might surpass that of China in ten years".

The study also notes that while China is rapidly becoming the world's manufacturing hub; India is a key provider of services. This 'power shift' will gain further momentum if recent signs that Japan's economy is emerging from the doldrums are sustained.

The attention devoted to China's rise, they say, should not be allowed to obscure the fact that India is emerging as a major power in its own right.
financialexpress.com
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I wonder how much does this guy take from India to advocate for India like that?<g>
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