DefInsights VOL.1 ISSUE 6 ~ NOVEMBER 2017
A SUGOSHA PRESENTATION
PROJECT FGFA
CHINESE WHISPERS Why PLA’s modernisation impacts India’s defence procurement
CONTENTS 11
IDEAS FOR ACTION
EMP WEAPONS AND THE NEW EQUATION OF WAR NEIGHBOUR WATCH
05
MODERNISATION OF CHINESE MILITARY: IMPACT ON INDIA’S PROCUREMENT
PROGRAMME UPDATE
09
5TH GENERATION FIGHTER PLANE: STATUS REPORT
POLICY ANALYSIS
OFFSETS WORLDWIDE: A COMPARATIVE STUDY SOUND BYTE
14
22
THERE ARE NO GOOD TERRORISTS: INDIA
Editor’s Note
Right time to address the industry’s concerns
W
ithin just two months of being in office, Defence Minister Nirmala Sitharaman has been active in meeting with the industry representatives to address issues that they may have with the procurement and export procedures and policies. However, it must be borne in mind that the present government under Prime Minister Narendra Modi has just about 18 months more before it goes to face the next general elections to parliament. This effectively means that this government has just about a year before it could do anything at all on the defence industrial policy front, to give the much-needed relief to those businesses waiting with bated breath for some return on their huge investments in the sector. On October 28, Sitharaman held a meeting with industry representatives, in an effort initiated by Confederation of Indian Industry, in New Delhi. The idea behind the meeting, according to officials in the Defence Ministry, was to under the primary and immediate concern that the industry may have regarding any of the industrial, procurement and export policies of the present government for the military equipment sector. Sitharaman, after hearing out the 30-odd industry representatives, is said to have issued directions for action to the ministry officials. Such an immediate response from the minister and sending out a message to the ministry officials on the concerns of the industry’s sentiments has gone down very well with the industry honchos, people aware of the proceedings say. She gave three key directions to the Defence Ministry officials, aimed at improving the participation of the private sector in the defence sector, apart from increasing the made in India military products, with a lot of indigenous content in them. Here go those three key ideas that Sitharaman is working on, not in any specific order though, for your consumption: One, the Defence Minister wanted the officials from her ministry to get a plan ready for the Ministry of Home Affairs. The proposal is to ask Home Minister Rajnath Singh - Sitharaman would be meeting him herself to impress upon this idea - to consider a time-bound licensing for defence industries. That apart, if the time limit for licensing is breached due to bureaucratic hurdles, then the licensing is deemed to have been given to the industrial house. That’s, however, easier said than done, particularly because of the huge investment that’s involved in defence business and in view of the uncertainties that this deemed licensing involves. If an industry goes ahead with manufacturing based on deemed licensing, would that mean they would be given out the industrial license anyway, despite objections, if any, from the Ministry of Home Affairs? That poses a serious security risk to the nation. That’s the larger question. In case, the government decides at a later stage to reject a licensing application after due process, what happens to the investment that the businesses may have put in for defence manufacturing based on the deemed licensing? Investment security is an ease of doing business question too, apart from licensing being a national security one. If these questions elicit answer that are convincing, then there can be no greater reform than this deemed licensing move? We may have to wait for some more time before we know the answers.
November 2017 | DefInsights | 3
Two, Sitharaman is said to have assured parity for the local, domestic defence manufacturers with that of their foreign counterparts on the taxation part of the current industrial processes. Taxation has been a perennial issue that has confronted the industry and is a key ‘ease of doing business’ parameter. Successive governments have failed to see the debilitating effect that taxation that is unfair to the domestic industry is doing to India’s self-reliance in military capability. Taxation parity with the more powerful and monied competitors from abroad would go a long way in ensuring a level playing field for domestic players in the defence sector. It will be a welcome move. Third, but not the least, is probably the definitive move to increase productivity and optimising the use of locally-developed technology for commercial benefits. The Defence Minister has directed the bureaucrats to get the Defence Research and Development Organisation (DRDO) to list out technologies and products that they have already shared with the Indian industry till now and on the commercial utilisation. She has also asked the DRDO to get the master list of its technologies and equipment developed in its labs that could be transferred to the domestic industry for putting those products to commercial use and help benefit India in self-reliance, as also to explore the export market for the same. Sitharaman gave the example of having met with some Indian industry representatives abroad during her recent visit, from whom she had learnt that India was exporting a DRDO-developed defence product to that friendly nation. This, according to the minister, was the kind of outcomes that DRDO’s efforts should bear. The listing of such DRDO technologies and equipment available to the Indian private industry could be a good means to measure the success of the indigenous research and development efforts at the hands of government labs. This would also result in outcomes that contribute to the ‘Make in India’ initiative of Prime Minister Narendra Modi. These three exercises that the Ministry of Defence would get involved in could help bring out the best from the Indian defence industry for the benefit of the armed forces and the nation. We recommend more such minister-industry interactions in the months to come. --N C Bipindra Editor 4 | DefInsights | November 2017
NEIGHBOUR WATCH
MODERNISATION OF CHINESE MILITARY: IMPACT ON INDIA’S PROCUREMENT T By Colonel K. V. Kuber
he dragon smiles with a pinch all around. The conclusion of the 19th Congress of the Communist Party of China (CCP) has thrown up a new dimension in the geo-politics of the region. Mao’s legacy is history, so it seemed after his enigmatic portrait was replaced by the one and only one towering visage, Xi Jinping. Selection of a 200-member central committee, a 25-member politburo and an Apex Politburo Standing Committee (PSC; having just five to nine most powerful party leaders) is the hallmark of the event at the Great Hall of the People. There are no surprises here, Xi Jinping will be central to all and central to the central leadership, that’s how it works, more work behind the curtain than what is seen and heard. Welcome to the emerging new world order. Trump and Modi leading the two largest democracies of the world, Abe returned to power to institutionalize the reforms he has conceived and worked for, Xi returned with a larger than life enigma, and we have Kim Jong Un and leaders like Kim to provide for the balance of geopolitics. What are the major implications for the largest democracy in the shadow of these developments and how must we position ourselves in this new world order? Xi has emphasised that the PLA is vital for the party and hence a need to keep them close to themselves. Well, it is no secret that Xi’s spouse is a serving Major General in the PLA. Idea is to have an expert system and yet retain complete control over them. The CCP now infiltrates all organs of governance and corporate. To woo the PLA, PLAN, PLAAF, rocket forces and others, the underlying emphasis would be on modernisation of the Armed Forces, to keep them loyal and ready. The thrust of the PLA’s modernisation is based on the concept of non-contact wars which rely on psychological operations that compel the enemy into submission without an actual military engagement.
An effort in the reorganisation of the PLAAAF has witnessed a flattening of the apex structure with Xi calling all the shots, he is known to be present in the Military Operations Planning Room and in direct conversation with the theatre commanders. The concept adopted is a limited war under Informed conditions; smaller military objective with major political connotations. Information Warfare, Electronic Warfare and Surveillance are integrated and applied as a single homogenous entity. While the 21 group armies in the 1990s has reduced to just 13 Group Armies today, the quality of recruitment as well as arms and equipment has improved considerably. They train in an exclusive area of about 10,000 Sq. Km, a unique and tough concept indeed. PLAN intends to incorporate 65 Destroyers and Frigates, of which they have 21 x Destroyers, 35 x Frigates, 20 x Corvettes and notably 56 Amphibious ships. They are progressing towards a Blue-Water Navy(PLAN); as they consistently increase their tonnage and can meet a wide range of operations. The Ari Craft Carrier capability is equally large. Aircraft carriers can be bought off the shelf or for that matter a Strike Corps is not as much as a problem as it is to deploy them, train them to become battle worthy. Their combat capability has increased since the modernisation drive began in 2014. While China is racing ahead in its drive to modernisation, we have not even been good spectators. China’s new round of modernisation of its Armed Forces began in 2010 indicating major progress in 2020 and to fight and win wars in the mid-21st century. They would keep talking and keep nibbling, confusing the world and yet eating into real estate on ground, at sea and in the air. A larger emphasis is on IW, EW, and ensuring information dominance. Their foray into Space is admirable, with the military (PLA SSF) in complete control of all Space programs and IW. They have 181 November 2017 | DefInsights | 5
NEIGHBOUR WATCH
satellites in orbit from a meagre 10 (in 2000). What is of importance is the importance given to Cyber W and IW since Xi Jingping heads the Centre for Cyber Space Affairs. Investment in skill development is note-worthy with a demand of 1.2 million work force by 2020 from a present demand of 700, 000(of which the country can field only 30,000 as on today. Where are we? Acquisition of the Rafales from Dassault Aviation of France has brought about a sense of ascendency in the might of IAF, parity in capability was always in the favour of the IAF. Additional Rafales, the ongoing discussion needs to be taken to a logical conclusion, thus arming the IAF with a capability to set the Chinese thinking. Our military balance is more equal due to the SU MKI and now the Rafales. Acquisition of the Single Engine aircrafts, is another important milestone that would set parity at a more equal level, both in quality and quantity. Gripen E next generation, is a natural choice given the advanced technology incorporated and the state-of-the art features. Aerospace industry in India is set to grow to levels never seen before. US would be happy with this choice for the important part of engines and few other systems belong to them. Single engine aircrafts will also help assist the AMCA program in stealth ca6 | DefInsights | November 2017
pability, while expediting its development. Air to air refuelling capability has been put on the back-burner, needs to be revived. Advanced US technologies incorporated in the Predators and Avengers would integrate such capabilities both in terms of passive and active intervention (when required). This would endeavour to enhance our IW capabilities in the Sub-continent. Cooperation with the US for being a part of the “Fish Hook”, the improved sound surveillance system as also the General Dynamics developed “DRAPES (Deep Reliable Acoustic Path Exploitation System)”, to get reliable information on the movement of submarines in our area of interest. As Russia, and especially China, have developed larger and more advanced submarine fleets, the U.S. Navy has had to re-learn old Cold War anti-submarine warfare competencies while developing new capabilities to tackle more challenging modern submarine technology. Using cueing data from those platforms, improved local anti-submarine assets like the P-8I Poseidon sub hunter aircraft (ASW capabilities) and surface combatants with new, improved towed sonar arrays of their own, like the Multi-Function Towed Array, can then close on a target, and track or engage it as needed. Use of UAVs in tandem is a force multiplier. The acquisition of A-330 based AWACS is a long pending programme, the government may like to pur-
NEIGHBOUR WATCH
sue to achieve the over-arching capability in IW and command and control of the areas of Interest. This will be in sync with the other programmes that are in the pipeline. In addition, Amphibious aircraft from Japan is an essential pre-requisite to project force in areas of interest, besides enhancing maritime amphibious capability both at sea and across the Brahmaputra. Capitalising on the progress made in the Indigenous EW Program, it is a neighbourhood call to enhance capabilities in EW and IW, incorporating all facets of IW. Information Ascendancy is a battle wining factor. If the Chinese had a Sun Tzu, we have a Chanakya Niti. The greatest recorded war in history, the Kurukshetra war, is replete with examples of Information Warfare in aid of the greatest of Army Commanders ever on a battle field. Our leadership needs a lesson or two from the Bhagwat Gita, to improve upon IW, EW, Psy W, Cyber W and create a potent force to deal with Information and cyber. Does a requirement exist for us to re-evaluate our capabilities in IW and space and initiate an effort to integrate the capabilities for a national benefit and not relegate it to a specific service, to create and enhance national capability? The SSBN capabilities of China are not much to talk about and our own Prithvi has more than matching capability and Nirbhay successfully tested for more
than 1000 Km range; with the steady progress in the IMDGP, we would retain the leadership position in the subcontinent. In the application of Force, we would retain a more than equal capability. Is there more we can do? Yes, much more, but then, we may like to address the programs that have been listed above, they are already in the pipeline. The programs in the pipeline will provide us with a Airborne EW capability duly integrated with UAVs, UAS, shipborne sensors, ground based EW capabilities and an ascendancy in IW. This is an essential pre-requisite for launching of operations. We are at a cusp of a Defence Industrial Revolution, with the friendlier Defence Procurement Procedures (DPP 2016), the implementation of Strategic Partnerships and a number of MAKE programs on the anvil, the government will do well to put into action all of the above programs to enable them to fructify by 2020. We, as a nation, have little choice but to actively speed up modernisation for the Indian Armed Forces. Let the Armed Forces guard the nation effectively and let the nation equip the Armed Forces efficiently. (The writer is an Indian Army veteran and CEO of Sugosha Advisory) November 2017 | DefInsights | 7
MISCELLANY
Sugosha Advisory CEO Colonel K.V.Kuber (Retired) seen along with Israel Aerospace Industries Malat division head of offset department Eli Shemesh (Middle) and SASMOS Managing Director H.G. Chandrashekar.
Sugosha Advisory Director Sohil Patel speaking at the SASMOS event, where he anchored a session. 8 | DefInsights | November 2017
PROGRAMME UPDATE
FIFTH GENERATION FIGHTER AIRCRAFT: STATUS REPORT N ew Delhi and Moscow signed an Inter-Governmental Agreement (IGA) a decade ago, in October 2007 for Hindustan Aeronautics Ltd (HAL) to partner with Russia’s Sukhoi Design Bureau in developing and manufacturing the Fifth Generation Fighter Aircraft (FGFA). Between 201013, HAL and Sukhoi spent $295 million each on a “Preliminary Design” phase.
By Sohil Patel
Later, the t1wo sides were required to sign an “R&D Contract” to define the total scope; the work share and responsibilities of each side; and the financial implications of the programme.” HAL also initiated the development of the Advanced Medium Combat Aircraft (AMCA) in 2008. It is a single-seat, twin-engine, stealth supermaneuverable all weather multirole fighter aircraft. History A fifth-generation jet fighter is a jet fighter classification used around the world that encompasses the most advanced jet fighter generation. As on date the
only combat ready fifth-gen fighter aircrafts are the Lockheed Martin F-35 & F35 and the Chengdu J-20. The Lockheed Martin F-35C Lightning II, Sukhoi Su-57, HAL AMCA, TAI TFX, Shenyang J-31, and Mitsubishi X-2 Shinshin are currently under various stages of testing and development. A preliminary development agreement was signed in 2010 between Russia’s United Aircraft Corporation and India’s Hindustan Aeronautics Limited, when India paid its 50 percent share of $250 million toward initial development cost. As mentioned earlier, HAL is also developing a fifth-generation aircraft in the form of the AMCA, and one would wonder the need for developing two platforms. While there was resistance from some quarters of the MoD on the grounds of duplicating effort to go ahead with Russia while we are developing the AMCA, an Expert Committee was formed to deliberate the issue. After six months, the committee found no conflict in the FGFA and AMCA projects. Aeronautical Development Agency (ADA)
November 2017 | DefInsights | 9
PROGRAMME UPDATE
is the key agency responsible for the design and development of the AMCA. Many of the key systems and avionics have already been designed by ADA. The next step in the development process, however, may prove more challenging as India must develop the key components to fit the schematics drafted by the ADA. Current Status Russia is already doing very well with its Air Force’s FGFA called PAK-FA, which had its first flight in 2010 and will likely be inducted this year. Recent development suggests that India and Russia have negotiated a draft R&D Contract, which commits both sides to spending $6.1 billion on the project at $3.05 billion each. “Defence Research and Development Organization has been involved regarding the work share and transfer of technology, whereas the IAF is involved in finalizing the operational requirements and the number of fighters,” said a senior retired Indian Air Force officer and defense analyst. The involvement of both the countries is huge in the FGFA program, wherein HAL will be doing main10 | DefInsights | November 2017
ly system integration with inputs from DRDO and other establishments. The extent to which Russia is willing to transfer technology to India has been a sticky point between the two countries. Stealth design technology, sensor data fusion, systems integration and modern manufacturing technology would be the good areas for consideration for transfer of technology. After the final agreement is inked, Russia will supply three prototypes of India-specific FGFA in another three years. However, the FGFA could take minimum 8 to 10 years before getting inducted, around 2027-28. Indian Armed Forces are grappling with multiple platforms and acquisition plans, which include the single-engine fighter aircraft through SP route, the Rafale acquisition, FGFA, AMCA, Tejas and its variants and the Naval Fighter Aircraft requirement. It is to be seen if so many platforms and acquisitions make for a sustainable portfolio for the future. What about the lifetime maintenance and cost of all these platforms?
IDEAS FOR ACTION
EMP WEAPONS AND THE NEW EQUATION OF WAR
By Atul Pant
An electromagnetic pulse (EMP) is an intense burst of electromagnetic (EM) energy that causes, or can be used to cause, damage. Though natural EMP is always noticed as disturbances on the radio during lightening, much more powerful EMPs are generated by solar geo-magnetic storms. EMPs can also be generated, and artificially through nuclear explosions, or non-nuclear radio frequency weapons. Electric and magnetic fields resulting from such intense EMPs induce damaging currents and voltage surges in electrical/electronic systems, burning out their sensitive components such as semi-conductors. The existence of a powerful man-made EMP was first proven during the first few nuclear tests. In 1962, the US conducted a high-altitude nuclear test code-named ‘Starfish Prime’. A 1.4 megaton weapon was detonated 400 kilometres above Johnston Island in the Pacific Ocean. Electrical equipment more than 1,400 kilometres away in Hawaii were affected by the EMP generated by the test. Street lights, alarms, circuit breakers, and communications equipment all showed signs of distortion and damage. More tests by the US and the erstwhile USSR yielded similar results, with even underground cables suffering damage. Seven low earth orbit (LEO) satellites failed in the months following the Starfish Prime test, as residual radiation damaged their solar arrays and electronics. The enormously devastating effects of EMP were only then realized. This led to the further development of nuclear bombs optimized for EMP effects, rather than physical destruction. The use of nuclear EMP weapons during hostilities between states is likely to be fraught with risks. High altitude nuclear EMP is likely to cause catastrophic damage to electronics in vast regions across thousands of kilometres, and may often affect even the state using the weapon. Besides, the first use of nuclear weapons carries the escalatory risk of retaliatory nuclear strikes. Andrei Sakharov, the Soviet nuclear scientist conceived of the concept of generating a non-nuclear EMP (NNEMP) as early as 1951. Although work on NNEMP started subsequently, it was only in the 1990s that documents and information began to appear in public about these weapons. Though infor-
mation on these weapons is mostly kept classified, non-nuclear EMP weapons are now a part of military arsenals of at least major powers such as the US and the UK. NNEMP Weapons Classified as Directed Energy Weapons, NNEMP weapons generate a less powerful EMP and have radii of effectiveness ranging from a few hundred meters to a few kilometres. Military NNEMP weapons are probably in existence in the form of either aircraft or missile delivered e-bombs or mounted systems on aircraft, drones or missiles. Boeing claims to have successfully tested an EMP missile — Counter-electronics High-powered Microwave Advanced Missile Project (CHAMP) — at the Utah Test and Training Range in 2012. Small suitcase-sized ground-based NNEMP weapons with short ranges are also feasible. The adverse impact of a NNEMP attack is envisaged to be more on systems and devices with electronic components, as the voltages required to damage semi-conductors are small. Experts consider that NNEMP are easy to develop and relatively inexpensive and that these could also be put together using Commercial-Off-The-Shelf (COTS) materials. Avi Schnurr, CEO and President of the Electric Infrastructure Security (EIS) Council of the United Kingdom (UK), has statedthat ‘the biggest issue with non-nuclear EMP weapons is that the complexity and threshold required to produce them is minimal, to say the most’. Given the relative ease of development, not only major powers but even smaller countries could develop them. On March 25, 2003, CBS NEWS reported the first possible use of an e-bomb by noting that ‘The U.S. Air Force has hit Iraqi TV with an experimental electro-magnetic pulse device called the “E-Bomb” in an attempt to knock it off the air and shut down Saddam Hussein’s propaganda machine….’ Even at their current levels of technological capabilities, there is a possibility that India’s neighbours already possess aircraft or missile delivered e-bombs. Short range briefcase-sized EMP devices could even get into the hands of non-state actors and terrorists, in all likelihood made out of COTS materials. November 2017 | DefInsights | 11
IDEAS FOR ACTION
Military Employment EMP weapons could be used against military and civil targets alike. They have been called Day-1 weapons by some experts, as these are likely to be used as early as possible in war to maximize asymmetry over the adversary. Modern militaries are heavily reliant on advanced electronics. Even at the lowest levels, weapons, equipment, communication and data sets, among others, have some embedded electronics. At higher levels, naval ships, aircraft, artillery pieces, armoured vehicles, radars, military communication and data network, command and control centres, automated air defence (AD) weapon systems, etc., have substantial and critical electronic components. Majority of the present day military equipment and networks are either insufficiently or not at all hardened against EMP. Therefore, at every level, militaries are vulnerable to EMP attacks. An e-bomb with a lethal radius of even a few kilometres could put out of action a deployed battalion-size force or a large number of airfield assets or a naval flotilla. The damage to the electronics will take considerable time to repair and the downtime of the affected combat systems may extend from a few hours to even months. Unserviceable combat systems and the absence of command and information systems are likely to result in prevalence of disorder and uncertainty, giving the offensive side a considerable advantage to wrest initial gains and turn the situation in its favour. On their part, defending forces can foil enemy of12 | DefInsights | November 2017
fensives by disrupting the latter’s control and coordination through the use of e-bombs. Given the rather limited radius of effectiveness of e-bombs, a large number of e-bombs would however be needed to cover the length and breadth of enemy forces in battle zones, including vital targets like war rooms, operation -centres, force headquarters, airfields, AD systems, etc. E-bombs could prove to be more effective than explosive bombs since they would not spare even the dugout or blast protected targets. A single wave EMP attack could considerably reduce the combat capability of a force. Even localised damage could have the potential to disrupt activity, especially if combined with other forms of attack. To ensure optimal use of own EMP weapons and deny a counter EMP strike opportunity to the enemy, militaries would need to devise tactics and strategies. Besides military targets, a number of strategic civilian targets, like urban data and communication centres, stock exchanges, factories and other centres of gravity could also be attacked by e-bombs. Targets hardened against physical destruction or located amidst the civil population could be particularly vulnerable to e-bombs. With increasing networking and redundancies, however, data and communication facilities are becoming resilient against total annihilation. EMP weapons could also be used clandestinely to take out important targets during peace time, when the use of conventional weapons would be considered outrageous, as it will be difficult to prove who
IDEAS FOR ACTION exactly was responsible. Such incapacitating applications of EMP could also prove to be an effective deterrent against enemies contemplating military action. Since information on e-bombs is kept highly secret, experts are unable to definitively gauge the extent of damage it may cause. Damage would depend a lot on the target characteristics also, for instance whether the electronics of the target are enclosed in metal, the percentage of electronic components in the target, exposure of metal cables, connection to power supply, terrain masking, etc. Likely damage could, however, be arrived at by conducting simulation and field testing. The collateral damage potential of e-bombs, i.e. damage to electronics in hospitals, emergency services, etc., may make their use sinister and would need careful contemplation. Countermeasures Faraday’s caging and metal encasing of systems and components is considered to be the most effective protection against EMP, besides physically destroying the weapon delivery platform itself. These are designed to divert and soak up the EMP. Additionally, electrical surge protection circuits and terrain masking could be useful. However, the costs of building EMP protected military systems or EMP hardening of all current systems is considered prohibitive by experts. It may be possible for only a few critical systems. At present, no infallible solution seems to be available against NNEMP. Threat Appraisal The EMP threat has been a rising concern for all major powers, which have constituted high-level commissions and committees in the recent past to study the threat. Think tanks have also been engaged in discussing the issue. Deposing before the Defence committee in November 2011, the UK’s then Minister of State for the Armed Forces, Nick Harvey, stated that EMP ‘is certainly considered a potential threat. It is not considered a particularly likely one, certainly in the foreseeable future; but we keep that constantly under review.’ The US also keeps the threat under vigil and has also possibly evolved contingency plans. India, with its hostile neighbourhood, should not discount facing an overt or clandestine use of NNEMP weapons during either peace or hostilities. Keeping a tab on their possible development in the neighbourhood may be prudent. For retaining combat capability in case of EMP attacks, building redundancies into important military structures and developing fibre-optic networking may be indispensable. Measures like cost-effective Faraday caging and shielding for frontline equipment may be studied.
According to a 2015 news report, India too had started work on EMP in 1985. The report stated: ‘According to publicly available information, KALI (Kilo Ampere Linear Injector) is a linear electron accelerator being developed in India, by Defence Research Development Organisation (DRDO) and Bhabha Atomic Research Centre (BARC). It is designed to work in such a way that if a missile is launched in India’s direction, it will quickly emit powerful pulses of Relativistic Electrons Beams (REB). It damages the on-board electronic systems.’ Looking at the gross asymmetrical advantage it provides against adversaries, India should actively consider developing an offensive NNEMP capability. Conclusion Major Western powers have confirmed the existence of NNEMP weapons. However, their effectiveness and likely success rate remains intangible since information on these matters remains classified. With the ease of development and low costs, these weapons are likely to proliferate and should be factored into war contingencies. India is vulnerable to EMP attacks, given the presence of technologically capable neighbouring rivals and adversaries. India should conduct a formal evaluation of the regional EMP threat and work towards building EMP resilient data and communication structures, both for civil and military requirements. There may also be a need to devise contingency plans and procedures for EMP attacks. Looking at the advantages and practical employability of e-bombs, India should also provide impetus to developing and inducting an offensive NNEMP capability. (Group Captain Atul Pant is Research Fellow at the New Delhi-based Institute for Defence Studies and Analyses (IDSA), which published the article first) November 2017 | DefInsights | 13
POLICY ANALYSIS
OFFSETS WORLDWIDE: A COMPARATIVE STUDY I
ndia has traditionally followed a system of supporting the strategic sectors through state-run and state-administered industry. The Ordnance Factories were a British Legacy, with Sir Hugh Rose, C-in-C India, spelling out the guiding parameters for procurement as early as 20th March 1865.
By Colonel K. V. Kuber
In the post-Independence era, the policy was guided by Prof PMS Blackett’s recommendation to follow a tow-phase defence strategy, in the short term to meet local adversaries and for more sophisticated arms for the long term. His recommendations were to build a limited manufacturing capability and rely more on diplomatic efforts. Thus, with a focus on state to manage the strategic sector, came the DRDOs and the DPSUs, while the Ordnance Factories only expanded. The Indian defence sector therefore remained the exclusive preserve of the state-administered companies. It is not the business of the government to be in business. We have not yet learnt this fundamental principle of business. Opening of the Defence Sector for private sector participation happened only through the Industrial policy of 1991, later reinforced by the Press Notes in 2001 and 2002. We have since come a long way. Offsets policy was introduced as part of the Defence Procurement Procedure for the first time in 2005 with detailed guidelines for implementation in DPP 2006. Progress on Policy While the Government of India included Offsets as part of the procurement procedures in 2005, there were more than 130 countries that were practicing offsets. Offsets is a term applied to Defence Sector while the more popular term is “Industrial Participation (IP)”, Offsets also awes its origin to IP and is a form of IP with few restrictions and government regulations applied in consonance with international norms. The first attempt at the Offsets Guidelines incorporated a direct execution of Offsets, in the Defence Sector through licenced companies in India. This was later relaxed to include all Indian companies in compliance with the norms of DIPP. Further, in sync with global practices, multipliers for technology transfer, for small companies, Banking of Offsets
were included to make it more attractive for the Foreign OEMs, besides an element of flexibility. However, best efforts of the government have not resulted in desired outcome, even the aim of offsets to make globally competitive industry in India is a far cry. The obligations on the foreign OEMs is only increasing while domestic industry is starved of business and fuelled by hope. What is the impediment and what are others doing? A glimpse of the Global Offsets Implementation is shown in the figure along with. There are different models each attempting to satisfy the requirements of that geography. Some are open ended, they do not have a specific aim, however, will allow foreign OEMs to propose projects and will guide and evaluate them for optimum effect. Israel Israel is a great example of harnessing strengths and creating options for industrial development. The Industrial Cooperation Authority (ICA) at the Ministry of Economy and Industry administers offsets in Israel. The ICA is responsible for offset management in Israel and handles industrial cooperation agreements with more than 200 foreign companies and corporations that are world leaders in areas such as defence, aviation, energy, electronics, medical equipment, and vehicles. Additionally, the ICA initiates meetings between Israeli companies and foreign industries, connects Israeli factories to foreign suppliers and ensures that offset obligations are fulfilled. The ICA helps the Israeli industry by making connections between Israeli manufacturers and Foreign Suppliers that are required to engage in industrial cooperation in Israel. The focus is on encouraging the foreign OEMs in developing long-term partnerships with local industry, basically with a view to open new global markets, that they identified as a challenge. They internally focussed on skill development to keep pace with industrial development to bring about a synergy for overall development. In total, Foreign Suppliers fulfilled more than US$10 billion over their obligations (net) against contracts valued at $25 billion. For them, Israel is a desired destination for investment far beyond their obligation. Over 200 multinational companies are committed to offsets in Israel, of which 150 of them having open offsets obligation of over $2 billion. The total value of Offsets obligations is more than $1 billion 14 | DefInsights | November 2017
POLICY ANALYSIS each year. The total value of offsets obligations fulfilment stands at more than $2 billion each year. In total, foreign suppliers fulfilled offsets obligations of more than $10 billion (net) over the last ten years. For them, Israel is a preferred destination for investment far beyond their offsets obligation. On the domestic industry side, offsets activity is directed for more than 500 Israeli industries each year. This implies that there exist thousands of transactions between Israeli companies and foreign OEMs each year. Over 200 Israeli government and public entities are potentially required to include industrial cooperation requirements in their tenders, 40 of them are presently active (this applies to all tenders of value over $ 5mln). 40% of this engagement is coming from the Defence Industry and the remainder of 60 per cent is coming from civil industries {a reversal of trend observed in the recent years}. They call themselves as a “Start Up Superpower”, hub of creativity, Centre of sophistication, knowledge and land of Industry. The transformation form Obligation to Opportunity is complete. The definition of Israeli made goods is indeed interesting, “Goods manufactured in Israel or in another region or place, with the approval of the ICA, in one transaction or in several consolidated transactions or during a period that shall be determined, all at the discretion of the ICA, provided that the price of the Israeli content therein constitutes at least 35 percent of the Bid Price or a lesser value, pursuant to criteria published by the ICA in the Official Gazette”. Contrast this with our definition of Indigenous content, sometimes appears unrealistic. For this reason, the Israeli offset policy is quite lenient in several respects. There is no clause for liquidated damages or other formal penalties. A reasonable percentage (minimum 35 per cent in the case of civil procurements and 50 per cent in the case of military procurements) is asked for by way of offset. The policy does not lay down precisely what sectors the offsets are to be directed at; the general principle is of direct or other high-tech technology transfer and defence industry investments. This gives the country the required flexibility to take advantage of any good proposal that may come its way. The objectives are clearly enunciated: (a) Long-term cooperation leading to competitive production of Israeli products. Goal is to develop new markets of high quality goods and create a frame-work for bi-lateral and multi-lateral industrial and trade cooperation between FOEMs, their subsidiaries and Israeli industry. (b) Emphasis on regional job creation on top of receiving direct R&D Grants. (c) Furthering international cooperation in industrial R&D. (d) Encouragement of technological entrepre-
neurship. (e) Development of future technologies through increased Academia-industry cooperation. There are two aspects of offset policy in Israel- offsets programmes that are created because of government purchases and offset programmes that are created out of private sector procurement activity. The Israeli government requires mandatory offsets on its procurements. However, the volume of voluntary offsets in the private sector is greater than that of mandatory offsets required by the commercial activities of the government. The Industrial Co-operation Authority (ICA) monitors and co-ordinates the offset policy both in the government and in the private sector, although it does not formally approve projects; conclusion of agreements is in the domain of the respective parties that are taking part in the trade. The approach followed by the ICA is of active support and openness to innovative ideas and out-of-the-box proposals for fulfilment of offset obligations. Once a foreign supplier wins a contract in Israel, an “Umbrella Agreement” is signed with ICA, clearly specifying; (i) all business activities of the supplier in Israel and (ii) all purchases and investments in Israel; without the need for obtaining separate undertaking for each purchase. The entire activity is then guided by such an umbrella agreement. Contrast this with the avenues of Offsets Discharge specified by the Defence Offsets Guidelines, in the context of DPP in India. One of the larger and more successful offset programmes finalized by the Israeli government was associated with the $2 billion purchase of combat aircraft in the nineties. Mc Donnell Douglas, who won the bid, agreed to provide liberal offset package of about 100 per cent of the sale value. The technology transfers that came out of these offsets have helped Israeli companies such as Israel Aircraft Industries, Cyclone Aviation Products, Israel Military Industries, and TAT Aero to develop their own weapons and systems that now enable them to compete for export orders. Quick Snapshot of Other Countries Saudi Arabia: The Economic Offset Program (EOP), as it became known, is an innovative investment program launched by Saudi Arabia in 1984, requesting that international contractors re-invest in the Kingdom a percentage of the value of (mostly) defence-related contracts awarded to them. In 1984, Saudi Arabia was the first country of the Gulf Co-operation Council (GCC) to establish an offset program. This was followed by the United Arab Emirates in 1991 and Kuwait in 1994 (Al-Ibrahim, 1996). Saudi Economic Offset Program is under the Deputy Minister of Defense. Saudi offset request is that November 2017 | DefInsights | 15
POLICY ANALYSIS
35% of their contract value is invested in Saudi jobs creation and training, economic diversification, technology transfer and foreign direct investments in general. Threshold is 400 million Saudi Reals (107 million USD). UK and France have established bilateral offset program with Saudi Arabia. UK Al Yamamah Economic Offset Program (I, II and III) is the most complex and longest program; it began in 1987 and still alive. The French Offset is directed by Societe Francaise d’Exportation de Systemes Avances (SOFRESA), a private company operating on behalf of the French government. The U.S., despite the fact the most of its defense sales to the Kingdom are U.S. Defense Department Foreign Military Sales, leaves offsets to the private contractors, such as Lockheed Martin, SAIC, Boeing, and General Dynamics. Foreign Direct Investments are authorized and supervised by SAGIA (Saudi Arabian General Investment Authority), and they receive high multipliers according to the most strategic sectors and the Kingdom’s priorities (such as water, electricity, communications, etc.). Saudi’s offset market has an enormous significance for the Saudi non-oil economy since Saudi Arabia spends about 10% of its GDP in defense procurement. Canada: Canada’s offset agreements (known as Industrial and Regional Benefits (IRB)) are managed by the IRB directorate within the Canadian government’s Department of Industry. The IRB Policy was created in 1986 to assist Canadian companies in leveraging government procurement. The Policy requires that prime contractors place sub-contracts and investments in the high-tech sectors of the Ca16 | DefInsights | November 2017
nadian economy in an amount usually equal to the value of the defense contract won. Investments can be direct (transactions that give small- to medium-sized enterprises an opportunity to provide goods, services and/or long-term service support directly for the items being procured by the government) or indirect (transactions which are not directly related to the procured items and are, instead, related to investments, technology cooperation, and product mandates). Spain, Morocco, Brazil, Kuwait, Turkey and others have different policies that shape their country’s requirements. For example, Spain has offsets classified into four groups, Directed Offsets (designated offsets), aerospace co-production offsets, indirect offsets, indirect commercial offset including investments and have a high implementation effect. Analysis From an overview of the policies enumerated above, Israel has been the focus for this paper, while others have similar policies that are compulsively engaging. In this series we shall bring about a comparison with countries of similar size and complexity to understand if others are doing better. One major aspect that ails our Offsets implementation is the inability in Decision Making. The Defence Offsets Guidelines are written well but execution is wanting. Let’s see some of these from a policy level and then at Implementation level. Operational Aspects: Policy and Implementation: Recommendations
POLICY ANALYSIS
Definition of Avenues for discharge of Offsets needs to be compared with the Umbrella Agreement of Israel. An Umbrella Agreement is more open and provides for greater flexibility both OEM and the Offsets Implementation Authority. Move towards an Umbrella Agreement with greater flexibility for both.
the implementation. There is a huge gap between the filing of claims and award of credits for reasons best known to the concerned department. Remove non-stake holders from the decision-making loop and allow quick decision making.
We believe in collegiate system of discussions and decision making with no single official or organisation accountable for decisions taken (if any). Create clear accountability directly nominating officials, with devolution of power.
Interpretation of certain clauses is appalling; such as in the case of 3.1(a) involving “Direct Purchase/Execution of export orders….”, the department instead of a direct interpretation to use this clause for generating exports by exploiting the OEM’s global position; have rather included this for discharge of offsets by Indian companies in global tenders. While such an interpretation is neither logical nor in the interest of industrial progress; In the past decade or more there is not a single instance of Indian company winning an order against a global tender to make use of this clause for discharge of Offsets. In any case, the very fact that an Indian company wins an order, there must not be a provision for mandating offsets on them, unless the MoD is somewhat encouraging trading (which is not true). Integrate Experts in the system for a more pragmatic understanding and interpretation. Make interpretation public.
Non-stake holders enjoy more influence in the system. While the Services HQ are the ones to derive the direct benefit, other departments including CGDA (Controller of Defence Accounts), have a greater say in
Facilitation to OEMs and Indian industry: the government does not directly facilitate industrial relationships. The government may like to create a body for facilitation to take industries for visits to OEM premises
We do not have an Offsets Implementation Authority. We have a DOMW (Defence Offsets Management Wing) under the Department of Defence Production, which is a healthy mix of few officials, working under a Joint Secretary, having no accountability. While the contracts are administered by one department (DG Acquisition under the DOD); Offsets are administered by DOMW under the DDP, each under a different Secretary. Create an independent organisation like the ICA, to independently create, facilitate, implement and monitor offsets.
November 2017 | DefInsights | 17
POLICY ANALYSIS for a greater understanding of each other. Waiver to Offsets. In some cases, the government provides waiver to offsets obligations of a few OEMs. Such information is not available in public domain, and is between the OEM and the government. Reasons for such waivers must be made public. For example, it is learnt that the procurement program of MI 17 helicopters from Russia has been waived off from discharging offsets in India. Waivers must be given in exceptional circumstances and reasons be made public. Orientation to the Letter than the Spirit of Policy. Our officials are very much oriented to the letter and take recourse to find if a mention of the indicated proposal is made in the policy/procedures; they forget the spirit. The spirit of development, job creation and identified need of the hour must take precedence to the letter. Need of the hour: Need of the hour is to:(a) Create jobs (b) Enhance manufacturing, (c) Reduce imports – find arrangements for local manufacture (d) Enhance exports; optimally use offsets mechanism to find global markets (e) Focus on weakness such as Electronics, and Skill development at all levels (f) Reinforce our strengths, such as IT, ITES and Design Services (g) Increase FDI in Defence to Offset FE outgo; seek investments in Indian industry (h) Induce technology in Industry
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(i) Collaboration arrangements in R&D with Industry, Manufacturing technologies, (j) Strengthen the base, develop and strengthen small companies (k) Create an Inclusive domestic industry approach Conclusion In principle while our offsets policy has evolved, we may take a reality check and adopt newer ways to attract investments and strengthen our Defence Industrial Base. The direct beneficiaries are the Armed Forces and the Indian Industry. Foreign OEMs will do well to have strong relationships with domestic industry at the ack end while the Indian industry leads the procurement. We need to adopt a more pragmatic approach, while discarding the traditional “No Decision in My Tenure” approach. Fearless application of innovative ideas with a singular aim of nation’s progress must be on the agenda. Non-stakeholders must be removed from the system like the CGDA for audit and consequent delays with infusion of fear of observations being raised. Should there be a necessity for a non-stakeholder to be in the decision-making process, a clear responsibility with accountability be laid down. We have too many people in the system who make observations, have authority to derail a program through their observations, but do not ever contribute in a positive manner with solutions. They may be identified and removed. Delegation of powers, authority and accountability must be the new norm. Summary of recommendations are as under:
POLICY ANALYSIS
Global Snap Shot: Offsets Discharge Country Austria
Level of Offset % Offset Preference Minimum Obligation Threshold USD million 1
Belgium
2.7 to 11
Brazil
1 million
Bulgaria
Canada
Czech Republic
Penalties for non-performance
Managing Body
5-10 percent of undischarged portion of obligation
Min of economy
100%
Direct and indirect
5-15 years
Free and open
Direct and indirect
Contract period plus 1-2 years 10 percent
100% and more Primarily direct, with a focus on the aeronautics industry
Min of economy
MoD
110%.
Direct and indirect
10 years maximum
Inter-agency Council on Special-Purpose Public Procurements under a Compensatory Arrangement
Encourage IP
Direct and indirect
through discussions
100 percent
Direct and indirect
10 years maximum
100 percent
Direct and indirect
30 percent of the obligation must be discharged within 4 years; Remaining obligation will be payable on non-performance.
100 percent
Direct and indirect
Within contract period
100%
Direct
Contract period plus 1-2 years Penalties for non-fulfilment are applied.
6 NA
Industrial and Regional Benefits Policy - Industry Canada
NA Offset Commission
22
Denmark
5
Estonia
10
Finland
Discharge of Offset Requirements
Penalty of 120 percent of the undischarged portion of the obligation may be applied.
10
Offset Commission
Ministry of Employment and the Economy, assisted by the Finnish Committee on Industrial Participation.
France
Like the US is completely independent of the world for its needs; focus on homegrown technology and products
Germany
Germany applies a policy of “industrial balances,� based on 100% of the contract value; 80 to 100 %
Greece
Direct and indirect
Contract period plus one-year
Offset Committee, Ministry for National Development and Economy
5
35: Civil 50: Open Defence Israel
Offsets Benefits Contract Monitoring Section, Hellenic Ministry of National Defence
12 100 %
Hungary
Direct and indirect. Defence-related only. Multipliers from 1 to 10;
Within contract period
Effective mechanism to monitor
Industrial Cooperation Authority, Ministry of Industry, Trade and Labour
5
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POLICY ANALYSIS
Italy
6
Japan
NA
Kuwait
Lithuania
70 to 100 percent Direct and indirect. Defence-related only. Within Contract period; Up to 10 percent of the unfulfilled obligation
Secretariat General of Defence and National Armaments Directorate,
Focus on Indigenous capability building with an emphasis on technology infusion and R&D. 35 percent
Direct and indirect
8 years
6 percent of the total contract value
National Offset Company
100 percent
Direct and indirect
10 years maximum. 50 percent of the obligation must be discharged within the Ministry of Economy; Litas 5 million; USD 2 million first 5 years
KD 3 million
2
Ministry of the Economy and Foreign Trade Luxembourg
Malaysia
Netherlands
No formal offset policy, but may form part of the supply contract. Focus on Direct discharge of Offsets; normally 10 years discharge
100 %
Direct and indirect accepted. Direct preferred; multipliers only for programs that result in high-end technologies. Includes Banking can transfer offsets credits up to 50% of value; during the period of the main contract;
100 %
Direct and indirect. Programs include company investments through venture capital funds and marketing Commissariat Military Production, Ministry of Economic Affairs support for innovative or high-tech products developed by companies experiencing difficulty expanding overseas. Failure to meet obligations may result in increasing the unfulfilled portion by 15-30%; max 10 years.
12
MOEC, Ministry of Finance
6
The supplier must undertake to carry out industrial co-operation equal to a minimum of 100 % of the value of the basis of calculation. Direct and indirect with a minimum of 50 percent of the obligation to be invested in projects of strategic importance to the Norwegian Armed Forces and national security and Norwegian industry. Norway
7mln
Poland
6mln
Portugal
12
100 %
Direct and indirect. Direct offsets must not be lower than half the value of the obligation; max duration of Department of Offset Programmes, Ministry of Economy 10 years
100 %
Direct and indirect. Priority sectors for indirect offsets are aerospace, automotive, CIS, energy (renewables). A minimum percentage of offsets related to defence may be required. 6 to 8 years of fulfilment and penalties up to 15% Direct and indirect Contract period plus 2 years
80% Romania
Saudi Arabia
Singapore
Permanent Offset Commission
EUR 3 million Minimum of 35 percent, though typically more than 40 percent. Direct and Indirect; 10 years of compliance
Economic Offset Committee with support from the Saudi Industrial Development Fund
Seeks industrial participation of 25 to 30 percent. Typically, up to 10 years and penalties also levied up to 10%
Defence Science and Technology Agency, Ministry of National Defence
107 million
USD 10 million
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POLICY ANALYSIS
Slovakia
Slovenia
100 percent
Direct, semi-direct and indirect, the direct and semi-direct part must equal no less than 30 percent of the Ministry of Economy and the Inter-Ministerial Offset Commission offset agreement; typically, five years and 7% of unfulfil ed portion as penalty
100 percent
Direct and indirect
Low
5 years.
Value undisclosed
Offset Working Group and Ministry of Defence
EUR 400,000 Defence Industrial Participation. USD 2-10 million: up to 50 percent direct offsets. Above USD 10 million: at least 50 percent Direct Offsets: Armaments Corporation of South Africa. Indirect Offsets: direct and 30 percent indirect offsets. It is usual that 100 percent offsets (split evenly between direct and indirect) is requested. Department of Trade and Industry
South Africa
South Korea
Spain
Sweden
Switzerland
USD 2 Million
50 percent
Direct and indirect. Foreign direct investment in new or existing local defence companies permitted Defence Acquisition Program Administration (limited to 40 percent). Technology transfer and collaboration in R&D projects also permitted. Banking permitted
100 percent
Primarily direct
100 percent
Direct. Industry Participation, technology cooperation and transfer, export market assistance, R&D cooperation, acquisition of Swedish defence goods and services, investments; within contract period
100 percent
Direct and indirect
10
Within contract period
2 Swedish Defence Materiel Administration
12
Contract period plus 3 years
18 Direct and indirect; strengthen Turkish Defence Industry; maximum period of two years
Turkey
National Armament Director
5
Min of Defence
50 60%
UAE
10
The United Kingdom
10
Indirect. The UAE seeks to channel defence-related investments into profitable projects in various sectors Offset Program Bureau to help diversify the UAE economy. Offset-derived projects have included fish farming and processing; horticulture; health care; and the production of firefighting materials. typically, 7 years and LD up to 10% for unfulfil ed portion Seeks to encourage industrial participation targets of typically 100 percent negotiated on a case by case basis. The general UKTI Defence Security Organisation threshold is 10 million GBP, but through bilateral agreements with Germany and France, has been reciprocally set to 50 million GBP. The offset is generally around 100%, no multipliers
While the US does not have a stated offsets policy, it has been argued that a number of its procurement policies designed to benefit domestic industry (e.g. speciality metals) serve a similar function. United States
NA
November 2017 | DefInsights | 21
SOUND BYTE
THERE ARE NO GOOD TERRORISTS: INDIA A
SEAN occupies pride of place in Asia’s institutional architecture. The centrality of ASEAN has served as an anchor of stability in the region. For us in India, ASEAN’s continuance in this role is vitally important.
By Nirmala Sitharaman
Indeed, India’s relationship with the ASEAN is a central pillar of our ‘Act East’ Policy. As Prime Minister Narendra Modi has noted, this is at the core of our dream of an Asian Century. We also support greater ASEAN unity, in spirit and in purpose. ASEAN states have taken the lead in steering effective functioning of successful regional groupings such as the East Asia Summit and ADMM Plus. Establishing this inclusive dialogue mechanism on defence and security issues under the aegis of ADMM Plus between ASEAN and its dialogue partners has laid down a strong foundation of trust and confidence. In a short span of time, the ADMM-Plus has emerged as a credible and effective platform which has forged practical co-operation among the armed forces of member countries in key areas. In doing so, we have been guided by the principles of consensus, transparency and mutual respect for each other’s priorities and sensitivities. These principles should continue to be the basis for our future endeavours. India has taken an active part in all ADMM Plus mechanisms and contributed effectively to their success. A shining manifestation of our focus on practical co-operation and jointmanship was the Force 18 combined Field Training Exercise on Humanitarian Mine Action and Peace Keeping Operations organised in Pune, India last year, which witnessed enthusiastic participation from nearly 350 defence personnel from member countries. This year, India has taken on the co-chairmanship of the 3rd cycle of Experts’ Working Group - Military Medicine (EWG-MM) along with Myanmar. We will take forward the work done by earlier cochairs - Singapore, Japan, Russia and Thailand - by deepening our engagement in the area of medical operations especially in Humanitarian Assistance and Disaster Relief (HADR) missions. I wish to underline India’s commitment to actively
22 | DefInsights | November 2017
engage in the EWG process, and contribute effectively to initiatives by our other ADMM Plus partners. The global strategic and security situation is constantly evolving and has thrown up fresh and serious challenges. The defence and security scenario in our shared region has also witnessed significant changes recently. Our countries now need to simultaneously prepare for traditional (military) and non-traditional threats. The nuclear and missile tests conducted by DPRK, in violation of its international commitments, have triggered serious concern. India has deplored these tests. We remain concerned about the proliferation of nuclear and missile technologies, which has adversely impacted India’s national security and that of the entire region. It is important that DPRK’s’ proliferation linkages are investigated and those who have supported its nuclear and missile programme are held accountable. Terrorism and radicalization pose one of the most immediate and serious security challenges to our societies. I wish to commend the Philippines for resolutely addressing the serious threat posed by terrorists in the southern part of the country and reiterate India’s zero tolerance for terrorism anywhere and under any circumstances. There are no good terrorists. Terrorism is now a trans-national phenomenon which requires strong collective action by all members of the global community. New developments in Social Media and Cyberspace have expanded the threat, as these are exploited by terrorists to develop less visible but lethal ways and means of manipulating minds of the people. The transnational activism of terrorist groups, the spectre of returning foreign fighters and the conduct of irresponsible states that provide safe havens, funding and even encouragement to terrorist groups all need to be addressed together and comprehensively. Terrorism anywhere is a threat everywhere. India has taken resolute measures to fight the scourge of terrorism from across its borders. We fully recognise the role of joint mechanisms with our partners and the role of international and regional forums in fighting this menace. The recent, BRICS Summit Declaration condemning all forms of terrorism and 14 | DefInsights | November 2017
SOUND BYTE
identifying a number of terrorist organisations engaged in dastardly acts was a positive step. India believes that ADMM Plus provides a forum for defence ministers of the region to address the critical issue of terrorism collectively in all its forms and manifestations. We should be clear and unequivocal in our condemnation of terrorism. Maritime security continues to be another key concern. India supports freedom of navigation, overflight and commerce throughout the region. Nations should resolve maritime disputes peacefully and in accordance with international law. We support a rules-based order for oceans and sea that is critical for the continued growth and development of the Indo-Pacific region. Given the occurrence of rapid climate change and natural disasters, Humanitarian Assistance and Disaster Relief (HADR) is another area that will need continued and focussed attention from all of us. India fully supports the implementation of various initiatives undertaken by the forum. India is also increasingly shouldering its responsibilities in this area. We have emerged as first responders in HADR situations in the region on numerous occasions. India has also placed its capabilities at the disposal of our partners, and we continue to build regional capacities to deal with natural and humanitarian disasters. Capacity-building among the ASEAN countries to addressing all these shared security challenges needs
to be accelerated. Expert Working Groups (EWGs) have proved to be an important cog in the ADMM wheel and have served us well in the identified areas. They can do more in terms of capacity building. We have had detailed and comprehensive discussions on “Regional security Architecture” under the umbrella of East Asia Summit workshops. A number of concepts and ideas have been proposed by the member countries. India has also actively taken part in these workshops and put forward its Proposal of “A Dialogue-Centered Asia-Pacific Security Architecture”. We share the common view that we need to continue discussions for strengthening regional security architecture whilst keeping ASEAN centrality at its core. I also wholeheartedly welcome annual meetings of the ADMM Plus instead of biennial meetings. This would lead to added opportunities to develop co-operative mechanisms capable of delivering tangible outcomes. Operationally, we also hope that there would be greater complementarity and synergy with other forums, especially the EAS. Let me conclude by expressing India’s deep commitment and continued contribution to the realisation of the objectives set by this august forum. (Excerpted from India’s Minister of Defence Nirmala Sitharaman’s address at the ASEAN Defence Minister Meet - Plus at Manila, Philippines on October 24, 2017.) November 2017 | DefInsights | 23
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