November 10, 2014:
In an unexpected stroke of good luck for you, me and the country, the price of crude oil has fallen from $115 a barrel in June all the way down to $84. This has meant cheaper petrol and diesel, and a lower subsidy bill for the Government. One big factor responsible for this price fall is the unexpected increase in oil produced from shale in the US.
What is it?
Shale oil is essentially crude oil but an unconventional one at that. While the conventional fuel is usually found in porous rocks such as sandstone, shale oil is trapped in shale rock formations that are not easily permeable and hence is tougher to tap. So though its existence has been known for long, shale oil wasn’t being extracted in large quantities.
But technological advancements — horizontal drilling and fracturing (fracking) — introduced and honed since the early part of the century have enabled shale oil exploration and production on an industrial scale.
Most of the action in shale oil so far has been in the US where explorers have struck copious quantities of the black gold. It has not been smooth sailing though. Environmentalists and local communities have been up in arms against the pollution caused to land and water bodies by the chemicals used in the fracking process.
Nevertheless, shale oil produced in the country has grown by leaps and bounds over the years. So the dependence of the US — the largest oil consumer in the world — on imported crude oil has fallen sharply. And this has added to the weakness of global crude oil price in recent months.
Conventional crude oil producers such as Saudi Arabia have been cutting prices to maintain their market share and to drive some of the high cost shale oil producers out of action.
But whether this will have the desired effect remains to be seen — technological improvements are expected to push down the cost of shale oil production.
Also, while Saudi Arabia might have the financial muscle to sustain low prices for quite some time, other conventional producers such as Venezuela and Nigeria may likely find it difficult to hold out.
Why is it important?
Shale oil has the potential to be a massive game-changer in global energy supply and pricing — with enormous geopolitical implications. It’s not just the US; countries such as Russia, China and Argentina are also believed to have vast stores of shale oil. India too is taking baby steps to find and explore its shale assets potential.
Progress in other nations has been quite slow so far. But there’s no saying when the inflection point will be reached. If production continues to expand, countries such as the US could start exporting oil in a few years.
Why should I care?
For starters, more shale oil means lower petrol and diesel prices. So you spend less on travel.
Cheaper crude oil also reduces India’s current account deficit and subsidy bill and will also give a boost to the country’s GDP — that means more and better-paying jobs, and more profitable businesses. But shale oil production in India in the future could also mean more environmental challenges. So the right trade-off needs to be made.
Success in my Habit
Wednesday, November 19, 2014
No official notice yet on alignment change, says L&T Metro Hyderabad
HYDERABAD, NOVEMBER 18:
L&T Metro Rail Hyderabad Limited has informed that they have not received any official communication with regard to change in alignment suggested by the Telangana Government.
Speaking on the sidelines of an event hosted on infrastructure at Fapcci, VB Gadgil, Chief Executive of L&T Metro Rail Hyderabad Limited, said so far they have not received any letter from the State Government on the alignment change.
This statement is significant in the backdrop of an announcement made by the Telangana Government that L&T has agreed to alignment change. A statement issued by the Chief Minister’s Office on Saturday after a meeting with AM Naik, Chairman, L&T, Shankar Raman, CFO, L&T and VBGadgil, with the State Chief Minister K Chandrasekhar Rao, mentioned the Government’s keenness to bring about changes in the alignment and also the Government’s resolve to increase the length of the metro project from the present proposed 72-km stretch across three corridors to 200 km.
Responding to queries, Gadgil said, “It is not impossible to make changes and everything would depend upon the technical feasibility. In any case, if there are changes that need to be taken up, the State would have to bear additional costs involved on the changes in alignment.”
According to sources, a meeting of the Prime Minister’s Monitoring Group, which closely tracks the progress of large projects, is slated for November 30.
L&T Metro Rail Hyderabad Limited has informed that they have not received any official communication with regard to change in alignment suggested by the Telangana Government.
Speaking on the sidelines of an event hosted on infrastructure at Fapcci, VB Gadgil, Chief Executive of L&T Metro Rail Hyderabad Limited, said so far they have not received any letter from the State Government on the alignment change.
This statement is significant in the backdrop of an announcement made by the Telangana Government that L&T has agreed to alignment change. A statement issued by the Chief Minister’s Office on Saturday after a meeting with AM Naik, Chairman, L&T, Shankar Raman, CFO, L&T and VBGadgil, with the State Chief Minister K Chandrasekhar Rao, mentioned the Government’s keenness to bring about changes in the alignment and also the Government’s resolve to increase the length of the metro project from the present proposed 72-km stretch across three corridors to 200 km.
Responding to queries, Gadgil said, “It is not impossible to make changes and everything would depend upon the technical feasibility. In any case, if there are changes that need to be taken up, the State would have to bear additional costs involved on the changes in alignment.”
According to sources, a meeting of the Prime Minister’s Monitoring Group, which closely tracks the progress of large projects, is slated for November 30.
RBI chief Rajan wants focus on sustainable growth
PORT LOUIS: India will focus on sustainable economic growth and developed economies should do the same, Reserve Bank of India governor Raghuram Rajan said on Tuesday.
The RBI is under corporate and government pressure to bring down interest rates and boost economic growth.
"We have to make sure that across the world we focus on sensible, sustainable sources of growth," Rajan told reporters in Mauritius on Tuesday.
The RBI is under corporate and government pressure to bring down interest rates and boost economic growth.
"We have to make sure that across the world we focus on sensible, sustainable sources of growth," Rajan told reporters in Mauritius on Tuesday.
Thursday, October 2, 2014
Microsoft to set up 3 data centres in India by 2015
"When we think about the cloud opportunity in India itself, it is going to be a $2 trillion opportunity," chief executive Satya Nadella said in Delhi on Tuesday, adding that the move will help Indian companies, government and entrepreneurs. Without disclosing the investment involved in setting up the data centres, Nadella said they will have "sizeable" capacity.
The announcement is significant given that the ruling Bharatiya Janata Party has been vocal about bringing local data centres to India to maintain data sovereignty. Besides, a large number of Indian enterprises have increasingly voiced concerns about hosting their data on the public cloud because none of the major players such as Amazon Web Services, Microsoft or Google have cloud data centres in India.
"I think in two or three years, when the servers come to India, the public cloud market will become more interesting because now there are some territorial issues in holding the data in the country," Jagdish Belwal, CIO at Tata Motors, which currently uses Amazon Web Services, told ET in a recent interview.
Competition in the cloud market is increasing, with players such as IBM spending millions of rupees advertising its Softlayer cloud and Oracle making a push in the Indian market with the announcement of several new cloud offerings for different industries. Microsoft's move to set up a local data centre will give the company "more muscle" to compete in the cloud services market and "Office 365 could see higher adoption", according to Vishal Tripathi, principal research analyst at Gartner.
Minda Corp. acquires majority stake in its Japanese subsidiary
It did not disclose the amount it paid to acquire the stake.
Noida-based Minda is a supplier of electronic and mechanical security systems for two-wheeler, three-wheeler and off road vehicles to original equipment manufacturer and exports about 20% of its products to the US, the UK, Europe, South East Asia and ASEAN countries.
Minda Corp. has 12 joint venture companies, of which Minda Furukawa Electric develops and produces the entire range of wiring harnesses for four-wheelers and components related to wiring harness.
Minda Corp. gained 1.9% to end at Rs.540, while the CNX Nifty rose 0.07% to close at 7,964.80 points.
Core sector growth at 5.8% in August
New Delhi: Driven by good expansion in steel, coal, cement and electricity generation, the output of eight crucial core sector industries rose 5.8 per cent in August from 2.7 per cent in July, official data showed on Tuesday.
The eight industries had risen 4.7 per cent in August, 2013-14.
For the first five months of 2014-15, the eight grew 4.4 per cent, marginally higher than the 4.2 per cent in the corresponding period of the earlier year.
This might boost industrial growth data for August, which had dipped to 0.5 per cent in July. The eight industries constitute 38 per cent of the Index of Industrial Production (IIP).
Earlier, there was apprehension over IIP growth in August after a mere 2.35 per cent rise in merchandise export for the month. The August core sector data had allayed this fear about industrial growth in the month, said ICRA senior economist Aditi Nayar.
However, there is no one-to-one correspondence between core sector data and the IIP numbers. For instance, core sector output rose 7.3 per cent in June from 2.3 per cent in May but the IIP rise declined to 3.9 per cent from the earlier five per cent.
Crude oil, natural gas and refinery products saw production contracting in August. In July, five industries had seen a decline. Steel, which saw production falling 3.4 per cent in July, rose 9.1 per cent in August. Electricity generation rose 12.6 per cent in August after doing so by 11.2 per cent in July. In the first five months of the current financial year, electricity generation has grown by double digits in four months. The exception was May, when it expanded 6.3 per cent.
Production of coal, a vital raw material for electricity generation, increased 13.4 per cent in August, more than double the 6.2 per cent in July and the highest growth in it during the first five months of 2014-15. However, the recent Supreme Court decision on coal block allotments, cancelling all but four of the 218 made since 1990, makes it unclear if this can be sustained, said Nayar.
Cement posted 10.3 per cent growth in August, though lower than the 16.5 per cent in May. The fact that August also showed a monsoon revival showed that construction activity, either for infrastructure or for personal dwellings, is on the upswing.
The economy rose at a two-year high of 5.7 per cent in the first quarter of this financial year (April-June), after two years of below-five per cent growth. The Reserve Bank of India has retained its earlier economic growth target of 5.5 per cent for 2014-15, projecting growth in the second and third quarter to be moderating, before rebounding in the fourth one.
The eight industries had risen 4.7 per cent in August, 2013-14.
For the first five months of 2014-15, the eight grew 4.4 per cent, marginally higher than the 4.2 per cent in the corresponding period of the earlier year.
This might boost industrial growth data for August, which had dipped to 0.5 per cent in July. The eight industries constitute 38 per cent of the Index of Industrial Production (IIP).
Earlier, there was apprehension over IIP growth in August after a mere 2.35 per cent rise in merchandise export for the month. The August core sector data had allayed this fear about industrial growth in the month, said ICRA senior economist Aditi Nayar.
However, there is no one-to-one correspondence between core sector data and the IIP numbers. For instance, core sector output rose 7.3 per cent in June from 2.3 per cent in May but the IIP rise declined to 3.9 per cent from the earlier five per cent.
Crude oil, natural gas and refinery products saw production contracting in August. In July, five industries had seen a decline. Steel, which saw production falling 3.4 per cent in July, rose 9.1 per cent in August. Electricity generation rose 12.6 per cent in August after doing so by 11.2 per cent in July. In the first five months of the current financial year, electricity generation has grown by double digits in four months. The exception was May, when it expanded 6.3 per cent.
Production of coal, a vital raw material for electricity generation, increased 13.4 per cent in August, more than double the 6.2 per cent in July and the highest growth in it during the first five months of 2014-15. However, the recent Supreme Court decision on coal block allotments, cancelling all but four of the 218 made since 1990, makes it unclear if this can be sustained, said Nayar.
Cement posted 10.3 per cent growth in August, though lower than the 16.5 per cent in May. The fact that August also showed a monsoon revival showed that construction activity, either for infrastructure or for personal dwellings, is on the upswing.
The economy rose at a two-year high of 5.7 per cent in the first quarter of this financial year (April-June), after two years of below-five per cent growth. The Reserve Bank of India has retained its earlier economic growth target of 5.5 per cent for 2014-15, projecting growth in the second and third quarter to be moderating, before rebounding in the fourth one.
Indian markets outperform global peers in H1 of FY15
New Delhi: Indian markets rose 19 per cent in the first half of this financial year, the best performance by any market during this period, globally. The rise was primarily due to strong flows from foreign institutional investors (FIIs), amid hopes the new government at the Centre would announce key policy reforms to help kick-start economic growth.
As of September 26, FIIs had invested Rs 61,024 crore this financial year, while mutual funds had put in Rs 15,298 crore during the same period, according to Securities and Exchange Board of India data. The market rally saw the BSE Sensex and the National Stock Exchange Nifty hit their record highs of 27,355 and 8,180, respectively, after the results of the general election. “Since the formation of the government, the NDA (National Democratic Alliance) has made all the right noises, through the Union Budget and a series of announcements. These have had a positive impact on the sentiment and the investment climate. The equity market has also given a thumbs-up to most initiatives,” said a recent note by ICICI Securities.
The rally in the mid- and small-cap stocks outpaced the rise in the benchmarks, with the CNX mid-cap and the CNX small-cap indices gaining 32 per cent and 34 per cent, respectively, during this period.
The road ahead
While most analysts agree the rally has more steam left, they expect the markets to consolidate before resuming their rally. Amid this backdrop, they suggest investors should brace for volatility. On the domestic front, analysts are also keeping a tab on the government’s reform agenda, which is expected to play out after the outcome of the state Assembly polls.
Vaibhav Sanghavi, director (equities), Ambit Investment Advisors, feels in the immediate term, the markets will react to corporate results, to be announced in October. He adds through the next six months, the Union Budget will also be a key determinant of how the markets fare.
“At the same time, there are a lot of events stacked up at the global level, including tapering of the US Fed Reserve’s bond-buying programme, economic data from Europe and China and geopolitical events. Beyond October, investors should brace for volatility, which is likely on account of global factors, rather than domestic,” he says.
On FII flows, analysts suggest long-only funds will continue to pour in. However, hot money flows are likely to be impacted due to realignment of carry trades. A stronger dollar could see some flight of capital to the US, they add.
Lalit Nambiar, fund manager, UTI Mutual Fund, says: “The strengthening of the dollar will impact global markets, including India. Besides state election results, US news flow is the most critical thing to influence market direction for India. One must realise an improvement in domestic earnings is yet to show; the markets have moved up largely on hope…The next few months might not be as easy as the recent past, in terms of FII flows to Indian markets.”
“One needs to be selective and patient while investing at current levels, as there could be some correction before the markets start to rise again. This will probably be relatively healthy for Indian markets, compared to a continuous run-up, which suddenly loses steam,” he added
Sanghavi of Ambit feels India is the best bet among emerging markets. Though he doesn’t expect the markets to correct more than 5-10 per cent through the next six months, he doesn’t feel the markets will gain more than 10-15 per cent from current levels.
On the domestic front, analysts are also keeping a tab on the government's reform agenda, which is expected to play out post the outcome of the State polls. Though they believe that the groundwork for certain essential reforms (GST, fuel price rationalisation, direct benefit schemes, government approvals) has largely been done, it is a question of implementation now.
As of September 26, FIIs had invested Rs 61,024 crore this financial year, while mutual funds had put in Rs 15,298 crore during the same period, according to Securities and Exchange Board of India data. The market rally saw the BSE Sensex and the National Stock Exchange Nifty hit their record highs of 27,355 and 8,180, respectively, after the results of the general election. “Since the formation of the government, the NDA (National Democratic Alliance) has made all the right noises, through the Union Budget and a series of announcements. These have had a positive impact on the sentiment and the investment climate. The equity market has also given a thumbs-up to most initiatives,” said a recent note by ICICI Securities.
The rally in the mid- and small-cap stocks outpaced the rise in the benchmarks, with the CNX mid-cap and the CNX small-cap indices gaining 32 per cent and 34 per cent, respectively, during this period.
The road ahead
While most analysts agree the rally has more steam left, they expect the markets to consolidate before resuming their rally. Amid this backdrop, they suggest investors should brace for volatility. On the domestic front, analysts are also keeping a tab on the government’s reform agenda, which is expected to play out after the outcome of the state Assembly polls.
Vaibhav Sanghavi, director (equities), Ambit Investment Advisors, feels in the immediate term, the markets will react to corporate results, to be announced in October. He adds through the next six months, the Union Budget will also be a key determinant of how the markets fare.
“At the same time, there are a lot of events stacked up at the global level, including tapering of the US Fed Reserve’s bond-buying programme, economic data from Europe and China and geopolitical events. Beyond October, investors should brace for volatility, which is likely on account of global factors, rather than domestic,” he says.
On FII flows, analysts suggest long-only funds will continue to pour in. However, hot money flows are likely to be impacted due to realignment of carry trades. A stronger dollar could see some flight of capital to the US, they add.
Lalit Nambiar, fund manager, UTI Mutual Fund, says: “The strengthening of the dollar will impact global markets, including India. Besides state election results, US news flow is the most critical thing to influence market direction for India. One must realise an improvement in domestic earnings is yet to show; the markets have moved up largely on hope…The next few months might not be as easy as the recent past, in terms of FII flows to Indian markets.”
“One needs to be selective and patient while investing at current levels, as there could be some correction before the markets start to rise again. This will probably be relatively healthy for Indian markets, compared to a continuous run-up, which suddenly loses steam,” he added
Sanghavi of Ambit feels India is the best bet among emerging markets. Though he doesn’t expect the markets to correct more than 5-10 per cent through the next six months, he doesn’t feel the markets will gain more than 10-15 per cent from current levels.
On the domestic front, analysts are also keeping a tab on the government's reform agenda, which is expected to play out post the outcome of the State polls. Though they believe that the groundwork for certain essential reforms (GST, fuel price rationalisation, direct benefit schemes, government approvals) has largely been done, it is a question of implementation now.
Joint statement during the visit of Prime Minister to USA
The two leaders extolled the broad strategic and globalpartnership between the United States and India, which will continue to generategreater prosperity and security for their citizens and the world. Prime Minister Modi emphasized the priority India accords to its partnership with the United States, a principal partner in the realization of India’s rise as a responsible, influential world power. Given the shared values, people-to-people ties, and pluralistic traditions, President Obama recognized that India’s rise as a friend and partner is in the United States’ interest. Theyendorsed the first "Vision Statement for the Strategic Partnership” as a guide to strengthen and deepen cooperation in every sector for the benefit of global stability and people’s livelihoods over the next ten years. They committed to a new mantra for the relationship, "ChaleinSaathSaath: Forward Together We Go.”
The two leadersrecognized that the bilateral relationshipenjoys strong support in both countries, which has allowed the strategic partnership to flourish even as the governments change.Welcoming the wide range of collaborative activities undertaken to improve their citizens’ lives, both leaders agreed to revitalize the existing partnership and find new areas for collaboration and mutual benefit.
Economic Growth
Noting that two-way trade has increased fivefold since 2001 to nearly$100 billion, President Obama and Prime Minister Modicommitted to facilitate the actions necessary to increase tradeanother fivefold.President Obama and Prime Minister Modi recognizedthat U.S. and Indian businesses have a critical role to play in sustainable, inclusive, and job-led growth and development.
In order to raise investment by institutional investors and corporate entities, the leaders pledged to establish an Indo-U.S. Investment Initiative led by the Ministry of Finance and the Department of Treasury, with special focus on capital market development and financing of infrastructure. They pledged to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of U.S. companies in infrastructure projects in India.
In this context, the U.S.government welcomes India's offer for U.S. industry to be the lead partner in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh).The Prime Minister will welcome two trade missions in 2015 focused on meeting India’s infrastructure needs with U.S. technology and services.
They also committed to a new partnership to advance the Prime Minister's goal of improved access to clean water and sanitation for all. USAID, through the Urban India Water, Sanitation, and Hygiene (WASH) Alliance, will serve as knowledge partner to help leverage private and civil society innovation, expertise, and technology, such as with the Bill and Melinda Gates Foundation, to support the Prime Minister's 500 Cities National Urban Development Mission and Clean India Campaign.
The President welcomed the Prime Minister’s ambitious plan to extend basicfinancialservices to all its citizens, giving them powerful tools to manage their finances and more fully participate in India's growing economy.The President and Prime Minister underlinedthe important contribution that U.S. locomotive technology, equipment to monitor rail system assets, and U.S. best practices can play in modernizing India’s vast railway network, including accessing programs of U.S. Trade and Development Agency in this work.
The leaders discussed their concerns about the current impasse in the World Trade Organization and its effect on the multilateral trading system, and directed their officials to consult urgentlyalong with other WTO members on the next steps. Theleaders committed to work through the Trade Policy Forum to promote a business environment attractive for companies to invest and manufacture in India and in the United States. Agreeing on the need to foster innovation in a manner that promotes economic growth and job creation, the leaders committed to establish an annual high-level Intellectual Property (IP) Working Group with appropriate decision-making and technical-level meetings as part of the Trade Policy Forum. They recognized in particular the contribution of the Indian and U.S. Information Technology (IT) industry and the IT-enabled service industry in strengthening India-U.S. trade and investment relations.
The two leaders committed to hold public-private discussions in early 2015 under the Commercial Dialogue on new areas of cooperation, including innovation in advanced manufacturing. In order to share best practices in manufacturingand work toward greater harmonization of standards, the National Institute of Standards and Technology’s Manufacturing Extension Partnership program will start a dialogue with Indian counterparts. The two countriesplan to work expeditiously through several joint initiatives to facilitate greater confidence in cross-border trade and investment.
The President also offered to support the Prime Minister to achieve his goal of preparing young Indians for 21st century jobs through new partnerships to share expertise and global standards for skills development in India, including by reinvigorating the Higher Education Dialogue.
The leaders look forward to the annual U.S.-India Economic and Financial Partnership in early 2015.They also welcomed the expansion of the partnership in oversight of financial institutions, including between Reserve Bank of India and the U.S. Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of Currency.They also agreed to reinvigorate the India-U.S. CEO Forum, and welcomed India's offer to host the Forum for the second time in early 2015.
Energy and Climate Change
The two leaders reaffirmed their commitment to implement fully the U.S.-India civil nuclear cooperation agreement. They established a Contact Group on advancing the implementation of civil nuclear energy cooperation in order to realize early their shared goal of delivering electricity from U.S.-built nuclear power plants in India. They looked forward to advancing the dialogue to discuss all implementation issues, including but not limited to administrative issues, liability,technical issues, and licensing to facilitate the establishment of nuclear parks, including power plants with Westinghouse and GE-Hitachi technology.
Recognizing the critical importance of increasing energy access, reducing greenhouse gas emissions, and improving resilience in the face of climate change, President Obama and Prime Minister Modi agreed to a new and enhanced strategic partnership on energy security, clean energy, and climate change. They agreed to strengthen and expand the highly successful U.S.-India Partnership to Advance Clean Energy (PACE) through a series of priority initiatives, including anew Energy Smart Cities Partnership to promote efficient urban energy infrastructure; a new program to scale-up renewable energy integration into India’s power grid; cooperation to support India’s efforts to upgrade its alternative energy institutes and to develop new innovation centers; an expansion of the Promoting Energy Access through Clean Energy (PEACE) program to unlock additional private sector investment and accelerate the deployment of cost-effective, super-efficient appliances; and the formation ofa new Clean Energy Finance Forum to promoteinvestment and trade in clean energy projects.
Both leadersare committed to working towards a successful outcome in Paris in 2015 of the conference of the UN Framework Convention on Climate Change (UNFCCC), including the creation of a new global agreement on climate change.
The leaders recalled previous bilateral and multilateral statementson the phase-down of hydrofluorocarbons (HFCs). They recognized the need to use the institutions and expertise of the Montreal Protocol to reduce consumption and production of HFCs, while continuing to report and account for the quantities reduced under the UNFCCC. They pledged to urgently arrange a meeting of their bilateral task force on HFCs prior to the next meeting of the Montreal Protocol to discuss issues such as safety, cost, and commercial access to new or alternative technologies to replace HFCs. The two sides would thereafter cooperate on next steps to tackle the challenge posed by HFCs to global warming.
They launched a new U.S.-India Partnership for Climate Resilience to advance capacity for climate adaptation planning, and a new program of work on air quality aimed at delivering benefits for climate change and human health.
They also launched a new U.S.-India Climate Fellowship Program to build long-term capacity to address climate change-related issues in both countries. The President and Prime Minister instructed their senior officials to work through the U.S.-India Energy Dialogue, U.S.-India Joint Working Group on Combating Climate Change, and other relevant fora to advance these and other initiatives.
The leaders welcomed the conclusion of a Memorandum of Understanding between the Export-Import Bank and the Indian Renewable Energy Development Agency, which would make up to $1 billion in financing available to bolster India’s efforts to transition to a low-carbon and climate-resilient energy economy, while boosting U.S. renewableenergy exports to India. The two leaders reiterated the importance of conserving India's precious biodiversity and agreed to explore opportunities for collaboration on national parks and wildlife conservation.
Defense and Homeland Security Cooperation
The Prime Minister and the President stated their intention to expand defense cooperation to bolster national, regional, and global security. The two leaders reaffirmed that India and the United States would build an enduring partnership in which both sides treat each other at the same level as their closest partners, including defense technology transfers, trade, research, co-production, and co-development.
To facilitate deeper defense cooperation, they welcomed the decision to renew for ten more years the 2005 Framework for the U.S.-India Defense Relationshipand directed their defense teams to develop plans for more ambitious programs and activities. The two leaders also agreed to reinvigorate the Political-Military Dialogue and expand its role to serve as a wider dialogue on export licensing, defense cooperation and strategic cooperation.
The leaders welcomed the first meeting under the framework of the Defense Trade and Technology Initiative in September 2014 and endorsed its decision to establish a Task Force to expeditiously evaluate and decide on unique projects and technologies which would have a transformative impact on bilateral defense relations and enhance India's defense industry and military capabilities.
The President and Prime Minister welcomed cooperation in the area of military education and training, and endorsed plans for the United States to cooperate with India's planned National Defence University. They also decided to expand military-to-military partnerships including expert exchanges, dialogues, and joint training and exercises. They also committed to enhancing exchanges of civilian and military intelligence and consultation.
The leaders agreed to intensify cooperation in maritime security to ensure freedom of navigation and unimpeded movement of lawful shipping and commercial activity, in accordance with accepted principles of international law. To achieve this objective, the two sides considered enhancing technology partnerships for India's Navy including assessing possible areas of technology cooperation. They also agreed to upgrade their existing bilateral exercise MALABAR.
The leaders reaffirmed their deep concern over the continued threat posed by terrorism, most recently highlighted by the dangers presented by the ISIL, and underlined the need for continued comprehensive global efforts to combat and defeat terrorism.The leaders stressed the need for joint and concerted efforts, including the dismantling of safe havens for terrorist and criminal networks, to disrupt all financial and tactical support for networks such as Al Qaeda,Lashkar-e Taiba, Jaish-e-Mohammad, the D-Company, and the Haqqanis. They reiterated their call for Pakistan to bring the perpetrators of the November 2008 terrorist attack in Mumbai to justice.
They pledged to enhance criminal law enforcement, security, and military information exchanges, and strengthen cooperation on extradition and mutual legal assistance. Through operational cooperation through their law enforcementagencies, they aimed to prevent the spread of counterfeit currency and inhibit the use of cyberspace by terrorists, criminals, and those who use the internet for unlawful purposes, and to facilitate investigation of criminal and terrorist activities. The leaders also committed to identify modalities to exchange terrorist watch lists. President Obama pledgedto help India counter the threat of improvised explosive devices with information and technology. The leaders committed to pursue provision of U.S.-made mine-resistant ambush-protected vehicles to India.
The President and Prime Minister looked forward to easing travel between their two countries, as India introduces visa-on-arrival for U.S. citizens in 2015 and works toward meeting the requirements to make the United States’ Global Entry Program available to Indian citizens.
High Technology, Space and Health Cooperation
Fundamental science and high technology cooperation has been a critical pillar of the strategic partnership, the two leaders confirmed, and they looked forward to renewing the Science and Technology Agreement in order to expand joint activities in innovative technology. The Prime Minister welcomed the United States as a partner country, for the first time, at India’s annual Technology Summit in November 2014.In addition, they committed to convene the ninth High Technology Cooperation Group (HTCG). They planto launch new partnerships to source and scale innovation for the benefit of citizens in both countries and to harness innovation to solve global development challenges.
The President welcomed India’s contribution and cooperation on high-energy physics and accelerator research and development with the U.S. Department of Energy. The President thanked the Prime Minister for his offer to have U.S. institutionspartner with a newIndian Institute of Technology.
The leaders committed to partner on the Digital India initiative, with the goal of enhancing digital infrastructure, deploying e-governance and e-services, promoting industry collaboration, and digitally empowering India’s citizens.The President welcomed India's proposal to establish the Global Initiative of Academic Networks (GIAN, or Knowledge) under which India would invite and host upto 1,000 American academics each year to teach in centrally-recognized Indian Universities, at their convenience.
The two leaders exchanged congratulations onthe successful entry into orbit of their respective Mars missions, which occurred two days apart. They welcomed the establishment and planned first meetingof the NASA-ISROMars Joint Working Group under the U.S.-India Civil Space Joint Working Group. The leaders also look forward to the successful conclusion of a new agreement to support the NASA-ISRO Synthetic Aperture Radar (NISAR) mission, to be launched in 2021.
The United and India also intend to start a new dialogue on maintaining long-term security and sustainability of the outer space environment, including space situational awareness and collision avoidance in outer space.
The President and Prime Minister recognized the extensive ongoing cooperation in the health sector which they will put to use in preventing the spread of the Ebola virus. The President welcomed India’scontribution to the UN Fund and donation of protective gear to the effort against Ebola, and thanked the Prime Minister for encouraging Indian-owned businesses in West Africa to contribute to the fight against Ebola. The Prime Minister also offered to deploy Indian expertise in the fight against Ebola, including by investing its resources in producing modelling of the spread of the disease, jointly producing rapid deployable diagnostics, and considering joint training of response personnel.The United States stands ready to amplify India's efforts to achieve a further reduction in preventable child and maternal deaths, including replicating India's successful approaches in other countries.
The leaders agreed to launch a new phase of the India-U.S. Vaccine Action Program to develop affordable vaccines for dengue, malaria, and tuberculosis, and the establishment of an adjuvant development center. They also agreed in principle to initiate cooperative activities to increase capacity in cancer research and patient care delivery, including by developing collaborative programs for and with India's upcoming AIIMS-National Cancer Institute. The President welcomed India’s offer to take a leading role in the Global Health Security Agenda.
Global Issues and Regional Consultations
Highlighting their shared democratic values, the President and Prime Minister recognized the critical role that women play in India and the United States, as shown by India’s "BetiBachao, BetiPadhao” ("Save Daughters, CelebrateDaughters, Educate Daughters”)initiative. They looked forward to holding a Women Empowerment Dialogue in order to exchange best practices to enhance the role of women in their countries, and they asserted zero tolerance for violence against women.
As a critical step in strengthening global nonproliferation and export control regimes, the President and Prime Minister committed to continue work towards India’s phased entry into the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement and the Australia Group. The President affirmed that India meets MTCR requirements and is ready for membership in the NSG. He supported India’s early application and eventual membership in all four regimes.
As active participants in the Nuclear Security Summit process, the United States and India welcomed progress toward reducing the risk of terrorists acquiring nuclear weapons or related materials, and noted their shared commitment to improving nuclear security nationally and globally. They reviewed their bilateral dialogue on nuclear security and endorsed working through India’s Global Centre for Nuclear Energy Partnership to reinforce safe and secure use of nuclear energy worldwide. They also pledged to strengthen their efforts to forge a partnership to lead global efforts for non-proliferation of WMDs, to reduce the salience of nuclear weapons in international affairs, and to promote universal, verifiable, and non-discriminatory global nuclear disarmament.
Noting India’s "ActEast” policy and the United States’ rebalance to Asia, the leaders committed to work more closely with other Asia Pacific countries through consultations, dialogues, and joint exercises. They underlined the importance of their trilateral dialogue with Japan and decided to explore holding this dialogue among their Foreign Ministers.
The President and Prime Minister emphasized the need to accelerate infrastructure connectivity and economic development corridors for regional economic integration linking South, Southeast, and Central Asia. The President reiterated that the United States, through its New Silk Road and
India-Pacific Economic Corridor, is promoting the linkage of India to its neighbors and the wider region to enable a freer flow of commerce and energy.
The President and Prime Minister noted the success of their countries’ collaboration on agricultural innovation in three African countries.They announced a new agreement to expand joint development initiatives in third countries in a range of sectors, including agricultural productivity, clean energy, health, women’s empowerment, and disaster preparedness. They also look forward to continuing the productive cooperation in Afghanistan on promoting women’s economic empowerment.
The Prime Minister and the President reaffirmed their shared interest in preserving regional peace and stability, which are critical to the Asia Pacific region's continued prosperity. The leaders expressed concern about rising tensions over maritime territorial disputes, and affirmed the importance of safeguarding maritime security and ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea. The Prime Minister and President called on all parties to avoid the use, or threat of use, of force in advancing their claims. The two leaders urged the concerned parties to pursue resolution of their territorial and maritime disputes through all peaceful means,in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea.
India and the United States pledged to consult closely on global crises, especially unfolding events in Syria and Iraq. The two leaders committed to exchange information about nationals returning from these conflict zones, and to seek cooperation in protecting and responding to the needs of civilians stranded in the middle of these conflicts.
Recognizing the importance of their respective strategic partnerships with Afghanistan, the leaders asserted the importance of a sustainable, inclusive, sovereign, and democraticpolitical order in Afghanistan, and committed to continue close consultations and cooperation in support of Afghanistan’s future.
They stressed the need for diplomacy to resolve the serious concerns of the international community regarding Iran’s nuclear program, and called on Iran to comply with its UN Security Council-imposed obligations and to cooperate fully with the International Atomic Energy Agency.
The two leaders expressed concerns over the continued development by the Democratic People’s Republic of Korea (DPRK) of its nuclear weapons and ballistic missile programs, including its uranium enrichment activities. They urged DPRK to take concrete actions toward denuclearization and other goals, as well as to comply fully with all its international obligations, including all relevant UN Security Council resolutions, and to fulfill its commitments under the 2005 Joint Statement of the Six-Party Talks.
The President expressed appreciation for the contributions of Indian peacekeepers to global peace and stability for the past 60 years, and welcomed the partnership with India to train third country peacekeepers at India’s training center in New Delhi. The President reaffirmed his support for a reformed UN Security Council with India as a permanent member, and both leaderscommitted to ensuring that the Security Council continues to play an effective role in maintaining international peace and security as envisioned in the United Nations Charter.
The President also affirmed his commitment to enhancing India's voice and vote in international financial institutions, and ensuring that resources are made available and are used creatively through multilateral development banks for infrastructure financing.
The President thanked the Prime Minister for the gracious invitation to return to the great nation of India. In conclusion, the two leaders affirmed their long-term vision for a resilient and ambitious partnership through the first "Vision Statement for the Strategic Partnership,” which they will hold up as the guiding framework for their governments and people.
Tata Power signs deal with Honeywell to build defence navigator in India
Mumbai: Honeywell Aerospace on Monday said it has signed a licensing agreement with Tata Power Co. Ltd's strategic engineering division (SED), enabling it to produce Honeywell's Tactical Advanced Land Inertial Navigator, or "TALIN", in India. It did not disclose the financial details.
This Honeywell-patented technology enables vehicles and artillery to navigate precisely, even where global positioning system (GPS) satellite guidance is not available, to increase troop safety and maximize mission success.
Aligning with the Indian government's objective of organically growing its defence industry and the call for Make in India, Honeywell will licence the design, hardware and expertise to assemble, test and, in the future, build the production kits for TALIN to Tata Power SED, Honeywell said in a statement.
TALIN is a highly accurate, shock-stabilized position and pointing inertial navigation system designed for use on a wide range of military and commercial platforms. It provides users with extremely precise attitude and position awareness with or without the use of GPS.
"Our strategic agreement with Honeywell supports Tata Power SED's commitment to the Make in India initiative-a priority for India's new government," said Rahul Chaudhry, chief executive officer at Tata Power SED.
"We are proud to have completed this technology-sharing arrangement, which will offer the Indian armed forces a state-of-the-art inertial navigation technology, made in India and with local product support. This agreement sets the standard for locally produced defense technologies to sustain India's military growth and mission success over the coming years," he said.
The initial efforts will begin in 2015 for TALIN 2000, with production and manufacturing of the system components expected by 2016. At this time, the agreement will also be extended to cover Honeywell's TALIN 3000, 4000 and 5000 products, which offer varying capabilities to suit a wide range of operational requirements, the company said in a statement.
"TALIN represents the latest in GPS-free navigation and positioning technology, designed to improve asset safety and ultimately mission success," said Arijit Ghosh, president-India, Honeywell Aerospace.
At 1.07pm, Honeywell Automation India Ltd rose 7.5% to Rs.5,637.50, while Tata Power was trading at Rs.83.70, down 0.7% from its previous close. India's benchmark stock index Sensex gained 0.16% to 26,668.92 points.
This Honeywell-patented technology enables vehicles and artillery to navigate precisely, even where global positioning system (GPS) satellite guidance is not available, to increase troop safety and maximize mission success.
Aligning with the Indian government's objective of organically growing its defence industry and the call for Make in India, Honeywell will licence the design, hardware and expertise to assemble, test and, in the future, build the production kits for TALIN to Tata Power SED, Honeywell said in a statement.
TALIN is a highly accurate, shock-stabilized position and pointing inertial navigation system designed for use on a wide range of military and commercial platforms. It provides users with extremely precise attitude and position awareness with or without the use of GPS.
"Our strategic agreement with Honeywell supports Tata Power SED's commitment to the Make in India initiative-a priority for India's new government," said Rahul Chaudhry, chief executive officer at Tata Power SED.
"We are proud to have completed this technology-sharing arrangement, which will offer the Indian armed forces a state-of-the-art inertial navigation technology, made in India and with local product support. This agreement sets the standard for locally produced defense technologies to sustain India's military growth and mission success over the coming years," he said.
The initial efforts will begin in 2015 for TALIN 2000, with production and manufacturing of the system components expected by 2016. At this time, the agreement will also be extended to cover Honeywell's TALIN 3000, 4000 and 5000 products, which offer varying capabilities to suit a wide range of operational requirements, the company said in a statement.
"TALIN represents the latest in GPS-free navigation and positioning technology, designed to improve asset safety and ultimately mission success," said Arijit Ghosh, president-India, Honeywell Aerospace.
At 1.07pm, Honeywell Automation India Ltd rose 7.5% to Rs.5,637.50, while Tata Power was trading at Rs.83.70, down 0.7% from its previous close. India's benchmark stock index Sensex gained 0.16% to 26,668.92 points.
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