The $10 billion dogfight

airbase at Yalahanka is punctured by a deafening roar, as the FA 18 super hornet, performs a stunning rolling loop. The fighter jet is on the Indian air force's shopping list. And it is not just another list going. In these times of recession, $10 billion spells a massive business opportunity. That is the cost of acquiring 126 multi role combat aircraft that India needs for upgrading the air force to the next level. The whole world is lining up to sell, aircraft firms turning up in full strength at the bi- annual air event in Bangalore which kicked of the marketing process. The Indian air force is looking for solutions to a crisis of quality and quantity in its force preparedness. Where as the force needs a minimum contingent of 40 squadrons, currently the force is able to field only 33 squadrons.Says Air vice marshal(rtd) Kapil Kak, additional director of center for air power studies a new Delhi based think tank " This is the biggest ever IAF contract. The winner will need to have three essential attributes. It will have to be a true multi role fighting capability, that includes air to air and air to ground superiority. It will need a powerful AESA radar that can simultaneously track 400 targets and engage at least fifty. Thirdly any air craft will need to have technological modular upgradeability which will allow the IAF to develop it over the years technically. There are many reasons for this depletion in airpower. The first is age of the existing IAF fleet. The IAF has not introduced any new fighter planes over the last decade with the exception of 40 top of the line SU 30 MKI fighter jets from Russia. In the same time, it has had to retire the Mig - 23 fighter bomber as well as the MIg 25 supersonic fighter reconnaissance aircraft. The other major culprit has been air crashes. The IAF has lost more then 200 fighter jets over the last decade. These include all types of aircraft but the largest number has been the ageing fleet of its mainstay – the Mig 21.To get over the resultant shortage of fighter planes India has floated the request for Information, official speak for an tender, to acquire 126 fighter jets that will be the striking arm of the IAF for decades to come.THE F A 18 Super hornet – the front runnerThe super hornet is a formidable aircraft. It is a fifth generation fighter planes and a front runner for the contract. The fighter is designed for air dominance and has Day/night strikes capabilities in all weather. Says Dr Vivek Lall, VP and country head Boeing Integrated Defense Systems, "The Super Hornet will provide the Indian Air Force with a tactically superior and combat proven multi-role combat capability. This is further enhanced by its renowned reliability, ease of maintenance, and exceptional operational availability - all of which contribute to its low Life Cycle Cost." However two factors could hold back this fighter from winning the IAF contract. The first is the issue of defense off sets. The United States has traditionally not shared technology with client states where as India has a stated policy that requires fifty percent of all defense building work to be done within India. Another hurdle is that the US rules will make it difficult for India to have this fighter plane tweaked to make it capable of delivering nuclear weapons. The US has stringent end user agreements for their aircraft and India may not be open to intrusive inspection of their air craft once the fighter joins the force. The proven choice F - 16 super viperAmong those who fly the f 16 is a legend. Across the world in war time sorties it has a 72-0 kill ratio. That is, it has shot down 72 fighters but has never itself been shot down in combat. Its remarkable measurability and proven superiority in wars such as the US attack on Iraq and the Israeli attack on the osirak nuclear reactor have made it the best fighter plane of its generation. Although without question a superb machine there is problem. The Pakistan air force has older version the fighting falcon and that would mean that they would be in a far better position to asses what the technical specifications and operational performance of this fighter plane would be,. This is something that may make it difficult for the super viper. However aviations experts say that the F 16 being offered to India is a block 60 variant and complete in a different advanced category then the one that the Pakistan Air force flies. The Dark Horse - MIg 35The Mig 35 is a dramatic improvement on the Mig 29 which the IAF has flown for many decades. At the Bangalore air show the unofficial consensus among those who watched was that the plane style a long march among rivals when it came to aerial acrobatics. The Mig 35 is a multi role fighter. Although heavier then the competition it has some unique abilities. Says Mikhail T Globenko, regional director for marketing Russian aircraft corporation, " The IAF has a requirement for am modern multi role fighter that can deliver an air superiority platform and the MiG 35 is the ideal choice and it can also be a compatible platform given that the Mig 29 is already ins service with the IAF." The MiG 35 has a powerful Zhuk active electronically scanning array (AESA) radar and can fire a greet range of missiles and bombs. However the Indian relationship with Russian weapons delivery has been rocky with terms of trade changing mid way and thus the trust factor of the delivery schedule and pricing as has happened from with the Indian purchase of the air craft carrier admiral Ghroshkov where the Russians have reportedly hiked prices three fold from the contracted one billion dollars to nearly three billion. The competitor - Euro fighter typhoonThe Euro fighter has an edge in this competition since it is the most modern of the fighter planes on offer and has great strengths in air to air and air to ground roles. The EADS Company has worked with India before as well and is likely to be more flexible with off sets and end user agreements then the Americans. This is likely to be an aircraft that will be the real competitor for this tender. The aircraft has sold over 300 planes to several countries including 72 on order from the Royal Saudi Arabian air force. The challenger RafaleIs a exciting new fighter from Dassault aviation which already supplies the IAF with the Mirage 2000 and the Jaguar fighters. The Rafale stands out in its abilities at air superiority role as well as its advanced avionics and abilities to launch multi role missions. The air force will also be looking keenly at the fact that the firm has a record of working with India on off sets. The air craft is also known to have a very low Radar signature that makes detecting it tough - and can be a critical advantage in combat. The outside chance - SAAB GripenThis Swedish beauty is the last in the race but it too has the modern attributes of a multi role fighter aircraft and is a very new aircraft. The bird is well known for speed and maneuverability and can reach the speed of up to Mach 1.2 without afterburners. It also has a powerful radars and advanced avionics suits. So as the world places its bets and the fighter's role may the best bird win the chance to fly the IAF blues.

The $10 Billion dog fight

A slow down is not a recession

Don't P A N I C

Ninad Dhirubhai Sheth

Confidence is the key. In cricket, when you are low on that critical element, the same shot that got you those spectacular no one moves boundaries result in inglorious caught behinds. The Indian economy is somewhat a similar mood spell. Fundamentals are intact. On almost all parameters including saving rates, investment rates and domestic spending the country is better placed then the US Japan and Germany the three economies which have fallen into a recession. Yet the mood is one of fear. Look around and you see a country low on confidence. The economic crisis globally has induced a scare in India. It is amazing that so many are worried so much by the global crisis even as the economy itself grows apace. It is as if we are determined to talk ourselves into a recession. Go to the ministry of finance and you see nervous bureaucrats scurrying around trying to understand the impact of the global crisis. In Mumbai big firms - the Tata's included - are communicating with staff asking for belt tightening, giants like L&T are cutting back on grand ship building and realty projects. And the airlines, well that's too well documented to be detailed. Thus the fear of recession is writ large in today's corporate India. But is there really a recession? For one thing the classic definition of recession a - shrinking economy for two consequent quarters – simply does not imply to India. The economy grew the last two quarters - albeit at a marginally slower pace. Comments Surjit Bhalla, Chairman, Oxus investments, a noted economist, "We do not have a recession in India. Sure, the global recession will lead to a growth downturn however it cannot be called a classic recession. Look at the realities, inflation is back in single digits and oil prices have halved. Thus we have more elbow room now. " A Standards and Poor's report recently commented that countries like India are less likely to be impacted by the global downturn since their exposure to global trade is marginal when compared to their domestic consumption.Says Pavan Jain CMD, of safexpress, a logistics firm, "There certainly is an economic slowdown, but to call it a recession would be a statement made too soon. As compared to what the other countries are facing we are still in a better position as our banking structure is not as influenced as the western countries. We can call it a spill over effects of the global financial meltdown. More liquidity is coming in to the system and this will help we need to reduce fuel taxes and bring the price of petrol down and lastly the domestic consumption is still a growth story so overall I think we should just concentrate on the basis and results will come." The first bright spot for the Indian economy is the foreign exchange cushion. With nearly $255 billion put the country in a far better position when it comes to measures such as recapitalization of banks and providing support to the rupee. The Software sector that is depended on the external markets is still very much in vogue due to economic arbitrage being in India's favor. With the recent fall in the rupee the InfoTech sector has remained competitive. Firms with size, such as Wipro and Infosys can bet on bigger contracts since the pattern in the rich world is to outsource more - not less - in a down turn. The three large Indian IT firms together hold in access of $500 million in cash reserves. This will allow not only for adjustment s during the downturn - but also overseas acquisitions at the right price since firms in the west are looking good at current valuations. Agrees Raman Roy BPO veteran and chairman of Quattro an IT consultancy based in Gurgaon, "India is a part of the solution of the global crisis not a part of the problem. The US cost structure in a recession predicates further outsourcing. They have to cut costs there not add them. As for India, our dependence on the US market while significant is not absolute. In India there is a growth slowdown that can not be termed as a recession. " A report brought out in October 2008 by Everest, an IT consultancy points out that in fact this quarter and the next will see robust outsourcing orders for larger Indian IT firms from the US should Indian firms manage their cost structures in a correct manner. The state of Indian banks is the third redeeming factor in India's favor Vis a vis the global slowdown. The health of Indian banks is also much better in comparison to their global counterparts. What the US is now doing by taking stakes in big banks, is a matter of course in India. This has helped develop buoyancy. It was reported by the Reserve Bank of India that as much a half a billion dollars came into the NRI bank receipts in September 2008 alone. While some sectors such as banking and export firms have fired a record number of people it is not a sea of pink slips out there. Says Ashutosh Khanna, Partner Korn Ferry, a leading global recruiter "Look, jobs are out there for many sectors. Look at Unilever they grew by 16% last quarter. Sectors such as telecom and consumer durables have picked up and there is robust demand for quality professionals in these. Entertainment too is growing bear in mind that when times are bad sectors such as the liquor industry and entertainment have historically done well. We see a continuing trend of growth in these sectors of the economy." So while there may be a roll back on those fat pay checks the spa as a fringe benefit may not be on offer if you are good enough jobs are still around in many sectors. It's all about Money Globally the crisis is about sourcing money to fund the running of business and supporting business expansion. Here India is on a sounder footing. The RBI is expected to cut lending rates by at least 2 percentage points in the current quarter. This will see an infusion of nearly 80,000 crore of liquidity into the Indian market. What that does is restore confidence among lenders, among entrepreneurs and among corporations - the holy trinity that drives the Indian growth story. With the infusion of cash will also come the peripheral advantages such as new projects and strengthen infrastructure spending on new roads, electricity plants, ports and so forth. This can have the crucial multiplayer effect for the economy. The lending rate is the catalyst to pull a country out of the bad times. Says Ajay Relan of CX partners, an Investment Bank," A dramatic rate cut will certainly help in kick starting the economy, bringing it back on track. However India cannot afford to be complacent. India needs to channels its record level of savings into productive assets. We can no longer afford the ghastly cost overruns in infrastructure projects and so forth." Clearly to ride out the storm India needs to ensure that its tardy abilities at project execution are replaced by a vigorous new approach. We may create new money but it is much harder to create opportunities where that money is spending productively. Taken together, domestic consumption, easier lending rates, entrepreneur culture and robust foreign exchanges can come together to lift us out of what are bad - but not horrid times. As in Cricket so for the Indian economy – stick around this could yet be fun.

joseph stiglitz ninad d sheth

‘Poor nations are the losers’

Nobel Prize winner Joseph Stiglitz tells Ninad D Sheth that globalisation has a direct linkage with Indian farmers commiting suicide

Professor Joseph Stiglitz is an authority on the ramifications of globalisation and its inherent contradictions. A former World Bank chief economist, he is an insider in this debate and has been sharply critical about the manner globalisation is being pushed all over the world. Prof Stiglitz won the Noble Prize in Economics in 2000 for his path-breaking work on the theory of ‘asymmetric information’. Recently in India, he spoke on globalisation and its myths, the IMF doublespeak and neo-con American pressures, and the stakes for poor countries in free markets of the ‘brave new world’.

You have said in your book that globalisation is not a win win….
Yes. It is far from a win win. The poor countries have a lot to loose on all fronts. Indeed, they have lost a lot under the garb of this win win.

Externally, it puts them at a disadvantageous position in both trade and investment. Internally, it creates a connected elite that is numerically insignificant but is in the global orbit cornering the resources. To be honest, win win is the biggest myth of globalisation.
India is trapped in a paradox of globalisation where there is a possibility of opening too much without equally beneficial access to the West. Does this possibility worry you?

Yes. This is a real possibility. The trade platform is complex and as GATT and subsequent WTO sessions have demonstrated, trade can only be fair if the nations involved fight for their right. There is an uneven balance of power out there. On the issues of agriculture, investment and environment, India may come under tremendous pressure from both the US and the EU. The key would be two-folds, the attraction of Indian markets for the West and India’s own ability to forge an alliance with other countries to push issues. In the latest round the India-China-Brazil chain helped the setting of the agenda. The arrogance of the past is very much evident in the western stance; this has given way to a realisation that this is a new equation. However, the US retains a capability in diplomacy and economics to cut side deals and push its own agenda.

What about the impact on environment of global markets supply chains? You seem to say that it could be a doomsday environment…
This is one of the least studied impacts of globalisation. The environmental impact by its very nature will be drastic. The ability to strip countries bare for centralised profit is starker then ever. Globalisation ensures that commodity prices remain low for a very long period of time. Farmers’ suicides in many poor countries are linked not only to local conditions but also to the supply chain generated by globalisation.

Professor, you were in many ways an insider at the World Bank. When did the turning point come? When did you realise that something was amiss in the fund-bank prescriptions?
There was a slow but sure realisation. In Ethiopia in the late 1980s, I saw that all the IMF was doing with regard to tightening of the structure to lower the budget deficit, or with financial markets and currency stability, was frankly absurd. That on the ground it was leading to massive real deprivation. I pointed it out to the IMF but they were just not receptive. The free market consensus was gospel. There was absolutely no response from the Fund. The bank was supportive initially but the Fund saw no reason to deviate from the chosen path.

The East Asia crisis that followed truly made you choose a different path….
Yes, no doubt. The IMF had a wrong call after another in East Asia. I realised soon enough that the ‘Washington consensus’ was not having any patience for individual prescriptions.

You profess that the free market has an ‘asymmetry of information’. This loads the market in favour of a few players who have the information. Do you agree that recent developments in information technology and its wide availability have cut through these asymmetries?
That is a good question. While information technology has without doubt made strides, there are certain sorts of asymmetries that information technology can overcome very quickly. However, IT has not reduced all the market asymmetries. For example, IT is useful for price information about homogeneous products. This can certainly correct price differentials in the market. The market has many more sources of information such as measuring productivity. And utilising information technology alone cannot do these.

But 360-degree feedback and other software does allow for better understanding of labour productivity as well.
Yes, but the problem is transparency and ownership of the information and the leverage derived thereof. This information is not freely available and thus creates market imperfection.

India has $100 billion of reserves but seems to be at its wits end as to what to do with it.
Yes, it is a tough call. It raises difficult trade offs. You can’t employ these simply in bonds or gold for the yield is only between one and three percent. It is better to pour it into domestic infrastructure creation. However, if you create domestic infrastructure only with foreign reserves it would lead to currency appreciation and in the long run hit job creation; that is a difficult trade-off. The way out is to have an 80-20 mix between the reserve and domestic capital spending on infrastructure. The domestic part can come through taxes for example and that will not lead to currency appreciation or loss of jobs. So my call on the $100 billion is to have 80-20 reserves and domestic ratio through tax collection and that will ensure that there is no currency appreciation.

Is there no other way?
Some countries choose to borrow from the markets but given the high fiscal deficit that is not an option for India. If exports are to be protected and job creation is a priority, I see no other way except a mix to raise that money.

You are a great champion of subsidies. For example, in fertilisers here subsidies miss their target those who do not need it corner it the most.
I do not deny that subsidies can be appropriated by the politically vocal. There are ways and means—both conventional and creative—to so design subsidies that they reach the desired ends. We did this with the Clinton administration. There are ways one has to ensure that structural parameters are worked out and fine-tuned.

Since you left, has the IMF ‘mended’ its ways at all?
Yes, they have been receptive. There is a realisation that in East Asia the fiscal measures were too strong. That the bailout problems were mishandled. The IMF has even come out with a paper recently that says that capital market privatisation is not necessarily good for growth. However, in its basic tenor such as emphasis on inflation over unemployment, emphasis on privatisation, and the singular approach to complex problems—it has not changed as much as I would like. On transparency there is no change at all. For example, the executive directors of the IMF still vote in secret.

Will IMF become more stringent in the George Bush unilateral era?
It’s not as simple as that. While the No. 2 person at the IMF is always US-imposed, many people around the world are saying why shouldn’t international institutes be really international, as opposed to American in character? I think that while the IMF will certainly face some neo-conservative pressures it may also face the tide form the other side.

The poorer countries have been aggressive in trade but not in finance…
Yes, they seem to think they need the money. Which is true. But these are not grants; the developing world has an excellent record in returning loans. I think that there is a growing realisation that economic issues are complex and each solution is different. The IMF too will need to pay heed.

Apart from Malaysia, which other country has done well in bucking the IMF’s call?
China. It almost totally ignores the IMF. During the crisis and following it, China did exactly the opposite of what IMF’s position would have been. They lowered the interest rates, they provided billions of dollars in fiscal stimulus, they did not liberalise their capital markets and what have you got? Only 7 percent growth instead of 8 percent!

And Korea?
Korea too. It did not shut down the banks and opted for restructuring. They didn’t opt for forced restructuring either. And they did not close their chip plants and now the chip plants are back in favour and they are again competing globally and making money.

history of indian archeology

The story of Indian archeology during the colonial period is one of accidental discoveries, committed individuals and unexpected developments. This new book captures all three elements in a chatty writing style that, while scholastic in its detail, is not heavy in technique. The three most important elements in the book deal with the imperial agenda in Indian archeology, the fascinating story of the discovery of the Indus Valley civilisation and the comparative differences between Roman and Indian archeological techniques. The books outlines the fact that the discipline of archeology worldwide is only 300 years old.

In India the emphasis of the archeologists was driven by their personal desires. The pioneers of Indian archeology, Alexander Cunningham and John Marshall, had two primary interests — to peer into the history of Buddhism and the fascination with Alexander’s encounter with India. It is not surprising therefore that John Marshall, who is credited with the discovery of the Harappan legacy, worked for 20 years at Taxila in Pakistan. He visited Mohenjodaro only after announcing its discovery by his subordinates in London Illustrated News.

The book brings to light the fact that Harappa in particular was ill served given the techniques of archeology that destroy several layers of priceless materials from the past. The combined destruction brought on by the construction of a nearby railway line which used Harappan bricks in its construction, as well as a slash and find method, destroyed a lot of clues of the past.

The history of museums in India makes for interesting reading, as does the detailing of the loot that the British took from India. Loot was of course for the British Empire and the British Museum in London has perhaps more loot than any other single building in the world.

At the same time the book outlines the role of the British Empire in particular and that of Viceroy Curzon in reviving and sustaining institutional interest in India’s past. The book is a must read for those who are enthralled by the story of how India recovered its history through diligent digging of a few individuals fascinated by things lost in the foggy ruins of time.

Pakistan and Islam

The Islamic republic of Pakistan, to paraphrase Baron Clausewitz, is fogging the war on terror. Like a
geopolitical Jekyll and Hyde, a great game seems to be on. The brave US soldier, in the shadow of the great Himalayan mountain passes, guns drawn, sees in Pakistan at once friend and foe. The international community is like that nervous soldier with a finger perpetually on the trigger.

Inside Pakistan, too, the same scene repeats itself. There is no let-up in suicide terror bombings even after an elected government took power. The support for Sharia law and an Islamic state has far greater acceptance in Islamabad then is generally believed. In this respect, Pakistan has more in common with Algeria than Turkey.

All this would matter for little to the outside world, but for one inconvenient fact. Pakistan is the only Islamic state with nuclear weapons. Armageddon is near should those weapons fall in the wrong hands. And a lot of wrong hands hide in those caves on the Afghan border. Thus, even though an economic basket case, humiliatingly dependent on Saudi handouts and American largesse, Pakistan is a problem.

The trouble in Pakistan is neither structural nor political. It has a far deeper root. It is a dilemma inherent in the nature of Pakistan's state. The country was premised as a homeland for the believers. Islam is in its DNA. The founder of this republic, Mohammed Ali Jinnah, was of the opinion that only an Islamic republic can ensure Muslim rights and their way of life. He rejected the secular idea that formed the founding notion of India.

At its founding, the state had to negate both the older civilisation of India and her democratic polity, and only the Islamic way would do. The struggle underway now is between those who demand the Islamic way and those who try to uphold the idea of Pakistan but cannot offer a non-Islamic alternative statehood.

Thus, an Islamic republic that came into being through a surrogate political process is demanding real parents. In the process it has opened the old dilemma of Islam and democracy. In theory, this problem is of course stark and obvious. Unlike republics such as India, where sovereignty is enshrined in the individual, the Islamic way derives it from Allah. The one person, one vote idea has no resonance. The will of Allah should override universal franchise and personal choice.

This premise of a nation of Islam survived for a large part through American support. The US chose to bypass democratic institutions in favour of the Pakistan army. Most generals that ruled the country have studied at American military schools. The current low-profile chief of the Pakistan army, General Parvez Ashraf Kiyani, has done three courses in the US. This includes the elite course at the staff command at Fort Leavenworth.

This American support and Pakistan's role in the Afghan jihad is well documented. It fostered through the dictator, General Zia ul-Haq, in the 1980s, a near realisation of Pakistan's Islamic founding ethic. Those chickens are now truly coming home to roost.

The secular Turkish model that was sought to be replicated in Islamabad has failed completely. The secular impulse in Pakistan is nowhere near Turkey, where literally hundreds of thousands pour onto the streets in defence of secularism enshrined in the Turkish constitution.

The world faces a challenge. A radical fringe in Pakistan with a great deal of mass support is demanding its own tryst with destiny - an Islamic republic with a social and judicial system based on the Sharia. Pakistan's rulers have flirted with Islamic forces in the past. But now that these forces threaten to spin out of control and engulf Pakistan, the country's rulers are at their wit's ends.

There lies the problem. How Pakistan deals with its dilemma will be of great importance not only to them but also to the rest of the world.

leveraging india's soft power

An economic growth rate of nearly eight per cent, a robust military infrastructure and the nuclear weapon capability have come together to define India’s search for security and status in the emerging world order.

However, little attention is paid to a completely different set of sources that can be leveraged by India to consolidate its place in the global scheme of things. This influence becomes visible, from the capability to nurture and leverage, as, in the words of Harvard political scientist Joseph Nye, "soft power".

Soft power has many sources. It is derived from the openness and attractiveness of the cultural aspects of a country that hold an abiding appeal to the international community. It encompasses the allure of its political system, the spiritual foundations on which the country has based its founding ideas and the robustness of its popular culture.

On all three counts, India is almost uniquely placed. Our ability to manage such plurality and mind boggling differences within a widespread and deep rooted democratic polity is of interest to the world.

This appeal is enhanced by the fact that India is in a tough neighborhood. India has on its periphery, a non-democratic, nuclear-armed Islamic republic in Pakistan, and a totalitarian regime in China that has a particularly nasty human rights record — not to mention a rabid Bangladesh and a despotic Nepal.

Democracy is the master weapon in India’s soft culture arsenal. This is not just a vague notion of goodness but a very real tool in international affairs and of interest to like-minded powerful democracies like the USA and Japan. To nurture this power, India has already taken a step by participating in the UN Democracy Fund with a large role for itself. This should help the world in finding alternatives to despotism and look at strengthening democratic institutions from around the world.

The second consideration of soft power, is in the spiritual ideas that inform a nation’s history. India can, and indeed does, lead the world in this. From interest in Japan and China in Buddhism, to India’s historic role as a soft power in places as far as Indonesia—the country is well placed to leverage the spiritual advantage. With Germany, we have historic roots of language and culture, while with the UK there is the colonial connection—and with America, it’s democracy.

The consumer dimension of this spiritual power should not be underestimated. Every time a future leader of the outside world comes to India as a backpacker, or a star like Madonna takes up yoga, this soft power permeates their inner space of a foreign constituency. Such bonding is all the more powerful given its voluntary nature.

The third leg of the soft power triad is the power of our popular culture. The fact that Indian movies are now screened in places as diverse as Afghanistan, Egypt and Leicester Square is proof of India’s appeal to the world. Indian movies are shown in scores of countries and have an estimated market of US$2 billion. The fact that Pakistan refuses to allow Indian movies, is proof of the fear that closed societies have of soft power. India must leverage this advantage with the systematic aim of deepening and enlarging this constituency in Pakistan.

These are the opportunities, but what is the reality? On the world scene India has failed to really put soft power into practice. The vibrancy of such assets as Indian food in Britain or yoga in the USA has developed largely by default and by the initiatives of the private sector rather than by a concerted diplomatic effort. Institutions such as the ICCR have understood the need to go beyond our ancient traditions and move into the present day and age of popular culture, but they need to do more.

India has the enormous advantage of a wide spread—and increasingly affluent—diaspora. With the exception of China, the country has the world’s largest non-resident community. The role of this group of 20 million people in spreading India and what it stands for, cannot be underestimated. With overseas people of Indian origin, the country has an embedded advantage.

In places like Mauritius their political presence is significant. In the United States and in Europe, Indians are affluent and slowly moving into the political arena. In the Arab world, the Indian diaspora is the only plurality on offer. The triad of soft power thus gets a leg up through this incredibly powerful overseas community.

As India makes its play in the global empire of ideas, it is discovering that it has a very good hand. When played in synch with the country’s emerging economic might and military capability, soft power could be an ace in our pack. It is both a multi billion dollar marketing opportunity, and in the context of countries like Pakistan, is a diplomatic tool of increasing utility which will pay huge dividends in the future.

Leveraging india's soft power

Indian Media

Indian Media