UPSCPORTAL Magazine Vol 17 September 2010 Www.upscportal

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UPSC PortalMagazine

Vol. - 17 Sept., 2010

Disclaimer:

Editor and Publisher are not

responsible for any views, data,figures etc. Expressed in the articles

by the author(s). Maps are notational.

Sr. Honorary Advisor:

Sant Prasad Gupta

Honorary Editor:

Ram Kumar Pandey

Executive Editor:

Dr. Divya

Asistant Editor:Avadhesh Kumar Pandey

Dr. Nageshwar Nath Mishra

Dr. Sachchidanand

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Editorial

Where

there

is a will ...

Myanmar's Head of State

Visit to India

SECTION - 2

India-Mauritius

Relation

SECTION - 6

CSE Main 2010 Special:

Study Package :

(Science & Technology)

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Contact us at:

http://upscportal.com/civilservices/contactSports World

India to provide USD 1

Bn to Bangladesh

New Symbol for

Indian Rupee

SECTION - 3

Public Distribution

System

CONTROVERSY

World of

Awards

SECTION - 5

Current Affairs

SECTION - 4

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"Where there is a will, there is a way" is a familiar and well-known saying. But only few

understand and act upon it. This saying underlines a very vital fact of life. Man is ambitious;

he is full of desires, he needs force of will power to fulfil these dreams.

Without determination and a strong will, nothing can be achieved. Determination is one

of the secrets of success. Those who work hard are crowned with success, others are like cats

that wish to eat fish but dare not wet their feet.

God helps those who help themselves. Napoleon believed that the word "impossible"

was to be found only in the dictionary of fools. There is nothing impossible in the world for a

man of steel, will power and unyielding determination. Take the example of Maharana

Pratap and Shivaji. They are well known in history for their iron will, strong determination,

courage, heroism and patriotism. Rana Pratap fought bravely against such a powerful king as

Akbar, despite successive defeats but never surrendered in slavery.

Again, take the example of Mahatma Gandhi, a frail man but a man of iron will and

strong convictions. He won us freedom through non-violence, Satyagraha and non-

cooperation. A determined person takes hurdles as a challenge and overcomes them with

hard work and tireless efforts.

History is full of many bright examples to show us how people turned seeminglyimpossible work into a possibility and success. If you have an unshakable, resolute will and

carry on your efforts, as did these great men of history, you, too, are bound to have what you

want.

In this volume of UPSCPORTAL magazine you can find New Symbol for Indian Rupee

as featured article and articles are Myanmar's Head of State Visit to India, India- Mauritius

Relations and Public Distribution System. In section of hot topics you will find India to

provide USD 1 bn to Bangladesh and BlackBerry Controversy. With regular columns also

we have provided special study package for Civil Services Main Examination 2010 on

Science & Technology.

So we hope with these study materials you will make your efforts better for success in

upcoming challenges.

Wish You All the Best

Ram Kumar Pandey and UPSC Portal Team

Where there is a will ....

Editorial

Copyright 2010 | WWW UPSCPORTAL COM2Vol. - 17

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ndia has finally got a symbol

for the Rupee and joined a

select club of countrieswhose currencies have an unique

identity. The Union Cabinet on Jul 15,

2010 approved the design, which

includes both the Devnagiri 'Ra' and

the Roman capital 'R' and has two

parallel lines running at the top. The

parallel lines symbolise the equal to

sign.

The symbol selected has been

designed by an Indian Institute of

Technology-Bombay postgraduate D

Udaya Kumar and was selected from

among five short listed symbols.

Kumar, who joined the Department

of Design at IIT Guwahati, explained

that the design is based on the IndianTricolour.

"My design is based on the Tricolour

with two lines at the top and white

space in between. I wanted the

symbol for the Rupee to represent

the Indian flag. It is a perfect blend of

Indian and Roman letters: a capital

'R', and Devnagari 'Ra', which

represent rupiya, to appeal to

international and Indian audiences.

After working on the design for few

months, I shortlisted eight to 10

designs and then refined them

further till I got this one," said Kumar.

His entry was chosen from 3,000designs competing for the currency

symbol. He will get an award of Rs 2.5

lakh. All new notes will now bear the

symbol.

Though the symbol will not be

printed or embossed on currency

notes or coins, it would be included in

the 'Unicode Standard' and major

scripts of the world to ensure that it is

easily displayed and printed in the

electronic and print media.

Among currencies with distinctive

identities, only the pound sterling has

I

3Vol. - 17

Copyright 2010 | WWW UPSCPORTAL COM

New Symbol for

By : Ram Kumar Pandey

Featured Article

A step towards globalisation

Indian Rupee



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its symbol printed on the notes.

Unicode is an international

standard that allows text data to be

interchanged globally without

conflict. After incorporation in the

global and Indian codes, the symbolwould be used by all individuals and

entities within and outside the

country.

The symbol will be adopted in a

span of six months in the country, and

within 18 to 24 months globally and it

will feature on computer keyboards

and software for worldwide use.

New Rupee symbol won't show

soon on computers

Vendors of computers, mobile

phones, and software say they will

support the symbol for the Indian

rupee that was approved by the

Indian cabinet. But it may be over two

years before the rupee symbol starts

showing on computers and mobile

phones, analysts said.

Many vendors are also undecided

whether they will offer the new

symbol on keyboards and keypads, or

as additions in software to the

character set supported by their

devices.

Nokia, for example, welcomed themove by the Indian government to

have a symbol for the rupee, and said

it would abide by the rules and

regulations in this regard. However, a

company spokeswoman said it's too

early to comment on how the symbol

will be implemented, whether on the

phone keypad or on the character list.

For computers, mobile phones

and other computing devices to

understand the symbol, it has to be

first encoded, said Pradeep Parappil,

lead product manager for Windows

and Windows Live, at Microsoft India.

The new symbol has to be submitted

by the Indian government to the

Unicode Consortium to be encoded

and allotted a code point in the

Unicode Standard, he said.

The Unicode Standard is a

character coding system designed to

support the worldwide interchange,

processing, and display of written

texts of diverse languages and

technical disciplines, according to its

website. The latest version of the

Unicode Standard is Version 5.2.0.

The time required to add the new

rupee symbol to products does notdepend on vendors at this point, but

on the time it will take for the

inclusion of the encoding in the

Unicode Standard, Parappil said.

Once a new version of the

standard, which has the code point

for the rupee symbol, is released by

the Unicode Consortium, Microsoft

will start work to include it in the

Windows operating system and other

products, Parappil said. He did not

specify the time it would take to

include the changes. Users will not

have to buy new software, but will

likely receive downloadable updates

to their existing software, he added.

The Indian government decided

to select a symbol for the Indian

rupee to reflect the country's

economic growth and its integration

with the global economy. The symbol

will also distinguish the Indian

currency from some other currencies

in the region like those of Pakistan

and Nepal that are also called rupee,the government said.

The symbol will be used by all

individuals and entities within and

outside India after its incorporation

in the Unicode Standard, the ISO/IEC

1 0 6 4 6 s t a n d a r d f o r c o d i n g

multilingual text, and the Indian IS

13194 standard, the government said

in a statement on Thursday. Unicode

C o n s o r t i u m a n d t h e I S O

(International Organization for

Standardization) Group responsible

for ISO/IEC 10646 decided in 1991 to

create one universal standard for

coding multilingual text.

The Indian government does not

appear to have any illusions that it

will take some time before the rupee

symbol gets added to computers,

mobile phones, and other computing

devices. The encoding of the symbol

in accordance with Indian standards

is estimated to take about six months

while encoding in the Unicode and

ISO/IEC 10646 standards will take

about 18 months to two years, it said.

Influence of Indian Economy.

So far the Indian Rupees was

abbreviated as Rs, Re, or INR. "Thesymbol should represent the

historical and cultural ethos of India.

The proposal to have a unique symbol

for the Indian Rupee was the idea of

Finance Minister Pranab Mukherjee

that he brought up in his Budget

Speech for this fiscal. "In the ensuing

year, we intend to formalise a symbol

for the Indian rupee, which reflects

and captures the Indian ethos and

culture," Finance Minister Pranab

Mukherjee announced in his Budget

speech in Parliament.

The introduction of a unique

symbol for Indian Rupee reflects the

importance of Indian economy in

global economy. So far, US dollar,

European Euro, British Pound, and

Japanese Yen were the only members

of the elite class of having unique

symbols for their currencies.

A step towards globalisationEvoking national spirit and inter-

national attention the Indian rupeeattained a new avatar in its new

symbol. A distinct identity with a

blend of the Devanagri 'Ra' and

Roman 'R', the Indian currency will be

joining the elite club of the U.S. dollar,

the European euro, the British pound

sterling and the Japanese yen.

This would distinguish the Indian

currency from its neighbouring

countries' Pakistan, Nepal, Sri

Lanka and Indonesia similarly

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known rupee or rupiah.

While declaring the intention of

the government to have a symbol for

the Indian rupee, Union Finance

Minister Pranab Mukherjee had

stated in his last budget presentation

that: We intend to formalise a

symbol for the Indian rupee, which

reflects and captures the Indian

ethos and culture.

With this, Indian rupee will join

the select club of currencies such as

the U.S. dollar, British pound sterling,

euro and the Japanese yen that have

a clear distinguishing identity.

Political dimension

The growth story of India is intact andmany would be interested in

correlating the new symbol with its

economic growth and ambition to

become an economic super power.

However, the introduction of the new

symbol is having a pol i t ical

dimension. While Pranab Mukherjee

spoke about ethos of the country in

Parliament, it was definitely, on the

largest democracy of the world. As

compared to other Asian powers,

especially China, India's strength lies

in its democracy.

T h i s n e w s y m b o l i s a l s o

considered as a step towards

internationalisation of Indian rupee.

While the U.S. dollar, the British

pound, the euro and the Japanese

yen are widely traded currencies,

Indian rupee is only partially

convertible.

Further, majority of world's

currencies are also f loat ing.

Convertible currencies are defined as

currencies that are readily bought,sold and converted without the

permission from a central bank or

government entity. The Indian rupee

is only partially convertible as the

c e n t r a l b a n k c o n t r o l s t h e

international investments flowing in

and out of the country.

With a new symbol, the issue of

full capital account convertibility

would be revived again. However, the

recent global financial crisis again

proved that India would not be able

to take such risks though one may say

this as a weakness for the Indian

currency in the global arena.

The Prime Minister, Manmohan

Singh in a speech at the Reserve Bank

of India (RBI) on March 18, 2006,

referred to the need to revisit the

s u b j e c t o f c a p i t a l a c c o u n t

convertibility. He had said: Given the

changes that have taken place over

the last two decades, there is merit in

moving towards fuller capital

account convertibility within a

transparent frameworkI will

therefore request the Finance

Minister and the Reserve Bank to

revisit the subject and come out witha road map based on current

realities. Y. V. Reddy, the then

Governor of RBI, in consultation with

the government, appointed on

March 20, 2006, a committee to set

out the road map towards fuller

capital account convertibility.

Capital FlowsVolatile capital flows have been a

central issue during the recent

financial crisis, which surfaced

around 2007-08, and continue to be

so now as the crisis is ebbing.

Emerging market economies (EMEs)

saw a sudden stop and reversal of

capital flows during the crisis as a

consequence of global deleveraging.

India has followed a consistent policy

on capital account convertibility in

general and on capital account

management in particular. Our

position is that capital account

convertibility is not a standalone

objective but a means for higher andstable growth. We believe our

economy should traverse towards

capital convertibility along a gradual

path the path itself being

recalibrated on a dynamic basis in

response to domestic and global

developments. Post-crisis, that

continues to be our policy. We will

c o n t i n u e t o m o v e t o w a r d s

liberalising our capital account, but

we will revisit the road map to reflect

the lessons of the crisis, D. Subbarao,

Governor, RBI, stated recently.

CorrelationThe recent crisis has clearly been a

turning point in the world view oncapital controls.

The Asian crisis of the mid-90s

demonstrated the risk of instability

inherent in a fully open capital

account. Even so, the intellectual

orthodoxy continued to denounce

controls on capital flows as being

inefficient and ineffective. The recent

cr i s i s saw , acr oss e me r g ing

economies, a rough correlation

between the extent of openness of

the capital account and the extent of

adverse impact of the crisis. Surely,said Dr. Subbarao this should not be

read as a denouncement of open

capital account, but a powerful

demonstration of the tenet that

premature opening hurts more than

it helps.

Notably, the International Monetary

Fund (IMF) published a policy note in

February this year that reversed its

long held orthodoxy. The note has

referred to certain 'circumstances in

which capital controls can be alegitimate component of the policy

response to surges in capital flows'.

Now that there is agreement that

controls can be 'desirable and

effective' in managing capital flows in

select circumstances. The Indian

rupee is likely to remain a partially

convertible currency, at least in the

near future as Dr. Subbarao put it:

How emerging market economies

manage the impossible trinity the

impossibility of having an open

capital account, a fixed exchange rateand independent monetary policy

is going to have an impact on their

prospects for growth, price stability

and financial stability.

Historically under the British Raj

Indian rupee was fully convertible.

While many starved and famines hit

the country, a small section was

buying palaces and other assets in

Europe.

Featured Article

5Vol. - 17




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yanmar's Head of State,Senior General Than Shwe

visited India from 25 to 29

July 2010. This was a religious cum

official visit. He came with a big

entourage of ministers, officials and

family members. This was his second

visit to India the first one was in

October 2004.

The visit was scantily covered by

the local media and there was no

press conference or press briefing on

this visit, though a detailed joint

statement was issued by the Ministry

of External Affairs on 27 July, 2010, on

the discussions between the two

sides.

On arrival in India in the state of

Bihar on 25 July, 2010, Than Shwe

visited Bodh Gaya and other places of

Budhist interest near by. After visiting

Sarnath temple (Varnasi), he arrived

in Delhi on 26 July and was received

by India's Foreign Minister S. M.

Krishna. On 27 July, 2010, he was

accorded a ceremonial reception atRashtrapati Bhawan and a banquet

was hosted by the President in his

honour. On the same day Than Shwe

had a meeting with the Prime

Minister of India Dr. Manmohan

Singh which was followed by

delegation level talks.

On 28 July 2010 Gen Than Shwe

was in Hyderabad where he visited

the L & T Infocity, Bharat Biotech, a

leading biotechnology company and

the famous Salar

J a n g M u s e u m .

Before concluding

his visit, on 29 July,

he visited the Tata

Motors Plant in

Jamshedpur. Tata

Motors is establish-

ing a plant in Myan-

mar and is hopeful of

starting production of 1000 heavy

trucks from this plant from 2011.

The highlights of the JointStatement issued by the Ministry of

External affairs on 27 July which

summarises the issues discussed,

agreements made and the conce-

ssions extended to Myanmar are :

The Indian side agreed to consider

Myanmar's request for assistance

in the three areas namely: IT

development, Industrial develo-

pment and Infrastructure deve-

lopment in Myanmar.

Construction and revamping of

the Rhi-Tiddim road at a cost of

more than US$ 60 million.

Grant of US$ 10 million for

procurement of agricultural

machinery from India.

The two leaders agreed to

cooperate in the implementation

of the Tamanthi and Shwezaye

projects on the Chindwin River

Basin in Myanmar.

The Myanmar side conveyed their

gratitude for India's line of credit

of US$ 64 mi l l ion in the

transmission lines sector to be

executed through M/s. PGCIL.


upgrade the microwave link

between Moreh to Mandalay

under a line of credit of US$ 6

million from India.

The restoration of the historic

Ananda temple in Bagan to be

undertaken with the assistance of

the Archaeological Survey of

India, with the involvement of the

Ministry of Culture of Myanmar.The following agreements signed

between India and Myanmar by

different ministers/officials of the

two sides were also witnessed by

Chairman, State Peace and

D e v e l o p m e n t C o u n c i l o f

Myanmar, Senior General Than

Shwe and Prime Minister Dr.

Manmohan Singh.

Treaty on Mutual Assistance in

Criminal Matters

M

Myanmar's

Head of StateVisit to India

By : Dr. Sachchidanand

Bilateral agreements towardsstrong friendship


Article



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Memorandum of Understanding

regarding Indian Grant Assistance

for Implementation of Small

Develop-ment Projects

Agreement on Cooperation in the

fields of Science and Technology

Memorandum of understanding

on Information Cooperation

Memorandum of understanding

for the Conservation and Resto-

ration of the Ananda Temple in

Bagan.

Media Reports give the impre-

ssion that Than Shwe came to India to

solicit India's support or the

forthcoming elections. This is far

from the truth as the present

Myanmar Government will do what itwants to do, no matter what the

international reactions would be.

India has a large number of exiles

from Myanmar, mostly settled in the

North East and in Delhi (waiting to go

over to Western nations as refugees).

Members of the All Burma Monks

Alliance and All Burma Students

League protested against this visit by

gathering at Juntar Mantar (a Delhi

Park), shouted pro-democracy

slogans and dispersed peacefully.

India has also been under

pressure from International Fede-

ration for Human Rights and some

western nations including US, to use

its good relations with Burma, to

convey to the military junta for

changing the course and imple-

menting some democratic reforms.

India has taken a neutral stand till

date though it has expressed that it is

looking forward to an early national

reconciliation. What the Indian

leaders told the visiting dignitary wasnot known, but the official stand was

one of neutrality.

An extract from the joint

statement issued by the Ministry of

External Affairs on 27 July 2010 given

below summarises India's reactions

on the forthcoming election in

Myanmar.

The Myanmar side informed the

Indian side about developments in

Myanmar including the groundwork

for elections scheduled towards the

end of the year. The Indian side

thanked the Myanmar side for the

detailed briefing and emphasized the

importance of comprehensively

broad-basing the national reco-

nciliation process and democratic

changes being introduced in

Myanmar.

News Analyses India is accused for

its policy on Myanmar being based on

realpolitik instead of its age old

democratic principles. India's earlier

stance of supporting the pro-

democratic forces in Myanmar had

proved to be detrimental to its

national and security interests and

hence had to adopt a more realisticand pragmatic policy of engaging the

military junta.

Most media reports indicate that

Myanmar is playing the China card

with India and the India card with

China. All one can say at this point is

that Myanmar needs India as much

as India needs Myanmar.

Media reports also harp on the

point that the results achieved in the

energy sector or on the insurgency

front from Myanmar are not

commensurate with the efforts taken

from the Indian side. While this may

be true to a certain extent, India (as

ag ainst Ch ina) had a l so i t s

shortcomings in implementing the

projects in Myanmar or in convincing

the military junta of its requirements.

The western nations have nothing

to lose by adopting a policy of

sanctions and repeated censure of

the military regime for its human

rights abuses. This policy has only

isolated Myanmar from the mainstream, much to the benefit of China.

In India's case, Myanmar is its

immediate neighbour with a 1640 km

land border and a long maritime

boundary in the Bay of Bengal.

Because of the strategic, security and

economic concerns, India has to be in

an engagement mode with Myanmar.

Just because India is the world's

largest democracy, i t i s not

incumbent on the part of India to

exert pressure on the military junta

for democratic reforms and release

of political prisoners. Even the other

nations of ASEAN and its top dialogue

partners US, EU and Japan failed to

convey their strong feelings for more

transparency and democracy in the

recent summit meetings at Hanoi.

It is incorrect to conclude, that by

hosting the Senior General Than

Shwe's visit on the eve of the general

elections in Myanmar, India has

endorsed the elections and the

procedure to be adopted for that

process. The election is an internal

issue of that country. India can at

best offer some assistance in the

procedural aspects and express itsdesire for an ear ly nat ional

reconciliation.

The elections will no doubt to be a

flawed one but yet it is better than

not doing anything at all. Any change

can only be for the better and it is

a l m o s t c e r t a i n t h a t I n d i a n

engagement with the new regime

will continue in the interest of both

the countries.

The visit has also shown India's

potential as a 'soft power' that needs

to be used more often and in a more

focused manner.

Joint StatementThis visit was a part of a series of high-

level contacts that India and

Myanmar have had over the past few

years. These include visits by Vice

Senior General Maung Aye, Vice-

Chairman of the State Peace and

Development Council of the Union of

Myanmar, in April 2008 and Shri M.

Hamid Ansari, Vice President of India,in February 2009.

In New Delhi, Senior General Than

Shwe was accorded a ceremonial

reception at Rashtrapati Bhavan on

27 July 2010. He was received by the

President of India, who hosted a

banquet in his honour.

Senior General Than Shwe had a

meeting with the Prime Minister of

India, Dr. Manmohan Singh, which

7Vol. - 17


Article



9/80

was followed by delegation level

talks. The meetings and exchanges

were positive and marked by

cordiality on both sides.

India and Myanmar are close and

friendly neighbours linked, inter alia,

by civilizational bonds, geographical

proximity, culture, history and

religion. Apart from a boundary that

stretches over more than 1640

kilometers and borders four North-

Eastern states of India, there is a large

population of persons of Indian origin

in Myanmar. Bilateral relations are

reflective of these multifarious and

traditional linkages and the two

countries live side by side as close

neighbors based on the FivePrinciples of Peaceful Coexistence.

Recalling these shared bonds of

civilization, the Head of State of

Myanmar and the Prime Minister of

India expressed their commitment to

further strengthen and broaden the

multi-dimensional relationship

which now encompasses a range of

areas of cooperation. Enhancing

economic, social and developmental

engagement will help harness the

considerable potential in India-

Myanmar bilateral relations, which

would, in turn, contribute to the

socio-economic betterment of their

respective peoples.

Recognizing that peace and

stability in the region is essential for

development and for the well-being

of the people of their respective

countries, the two leaders agreed on

close cooperation between the

security forces of the two countries in

tackling the pernicious problem of

terrorism. They agreed that securitycooperation should be given

immediate attention since terrorists,

insurgents and criminals respect no

boundaries and undermine the social

and political fabric of a nation. Both

leaders reiterated the assurance that

the territory of either would not be

allowed for activities inimical to the

other and resolved not to allow their

respective territory to be used for

training, sanctuary and other

operations by terrorist and insurgent

organizations and their operatives.

Understanding that continued

cooperation will lead to success in

fighting the insurgency issue, the two

leaders agreed to strengthen

cooperation and collective efforts of

the two countries along the border. In

this context, the two leaders

welcomed the Home Secretary level

talks held in Nay Pyi Taw in January

2010 and the important decisions

taken in that meeting.

Both leaders expressed their

desire for greater economic

engagement. In this context, the

Prime Minister of India conveyed

India's commitment to continue withdevelopmental ass istance to

lead to upliftment of the bilateral

cooperation to a higher level.

Senior General Than Shwe and

Prime Minister Dr. Manmohan Singh

w e l c o m e d t h e c o n s i d e r a b l e

enhancement of the connectivity

between the two countries. In this

context, they welcomed the progress

made by M/s Inland Waterways

Authority of India towards impleme-

ntation of the Kaladan Multi-modal

Transit Transport Project and reite-

rated their respective Governments'

commitment to this project. In

particular, they welcomed the

finalization of the contract for port

development and Inland waterway

with M/s ESSAR. It was also agreedthat the scope of the project with

Myanmar. The Myanmar side

expressed deep appreciation for the

generous and concessionary credit

facilities given by India to finance

significant infrastructure and otherprojects. Projects that are currently

underway under such aid assistance

include railways, road and waterway

development, power and industrial

training centres, tele-commu-

nication, etc. The Indian side agreed

to consider Myanmar's request for

assistance in the three areas namely:

I T d e v e l o p m e n t , I n d u s t r i a l

development and Infrastructure

development in Myanmar which will

respect to the road component

would be revised. The road

component between Paletwa and

Myeikwa on the India border would

be executed by the MyanmarMinistry of Construction with M/s

IRCON.

The two leaders expressed

satisfaction at the construction,

maintenance and repair work by

Indian Border Roads Organization of

the Tamu-Kalaywa-Kalemyo Road

connecting Moreh in Manipur to

Myanmar and the handing over of

most of the segments of the TKK Road

to the Government of Myanmar.


Article



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To enhance road connectivity,

especially through the State of

Mizoram, both leaders announced

the construction and revamping of

the Rhi-Tiddim road at a cost of more

than US$ 60 million to be financed

through grant assistance from India.

The Myanmar side expressed its

appreciation for this gesture.

Both leaders emphasized the

need to enhance cooperation in the

area of agriculture. The Indian side

announced a grant of US$ 10 million

for procurement of agricultural

machinery from India. The leaders

expressed the hope that this

machinery wil l help enhance

productivity in Myanmar's agricul-tural sector, which is the mainstay of

its economy. The Myanmar side also

requested for technical assistance in

manufacturing of agricultural

machinery.

The Indian side also announced a

project to set up rice silos to facilitate

disaster relief operations particularly

in the cyclone prone delta areas, with

grant in aid from India.

The Myanmar side expressed

appreciation for India's generous

ass istance in the re l ief and

rehabilitation efforts that followed

the devastating Cyclone Nargis which

hit Myanmar in May 2008. He noted

that the assistance from India, which

included dispatch of a large medical

contingent to work in cyclone

affected areas as well as providing

immediate medical and food

supplies, supply of GI sheets, 16

electricity transformers, 20 biomass

gasifiers and funds for restoration

work on the holy Shwedagon pagoda,was timely and catered to Myanmar's

urgent requirements.

Both leaders identified the power

sector as an area of growing

cooperation. In this context, the two

leaders agreed to cooperate in the

implementation of the Tamanthi and

Shwezaye projects on the Chindwin

River Basin in Myanmar. They

welcomed the involvement of M/s

NHPC in carrying out the much

required additional investigations

after the signing of the MoU on

Cooperat ion in Hydro-power

Development projects in the

Chindwin River Basin in September

2008. Subject to the findings of these

additional investigations, the two

leaders will endeavour to conclude

the Memorandum of Agreement

within a year.

The Myanmar side conveyed their

gratitude for India's line of credit of

US$ 64 million in the transmission

lines sector to be executed through

M/s. PGCIL. Both leaders also noted

the need to provide for inter-grid

connectivity between the two

countries. They agreed that the twocountries shall cooperate in this area,

including generation of electricity

from renewable sources, and, where

necessary, set up joint projects or

corporate entities for that purpose.

The Myanmar side welcomed the

interest of Indian companies in the

mining sector. They promised all

necessary assistance to enable these

c o m p a n i e s t o e x p l o r e s u c h

opportunities.

The Indian side agreed to explore

possibilities for cooperation in the

field of solar energy and wind energy

in Myanmar. They also agreed to offer

Myanmar, training in related fields.

Cooperation in the energy sector

is poised for greater growth,

especially in the area of oil and

natural gas. Both leaders emphasized

the importance they attach to energy

security which has a direct bearing on

the welfare of the peoples of the two

countries. They expressed satisfact-

ion at the ongoing bilateralcollaboration in exploration and

production in Myanmar's petroleum

sector and agreed to encourage

further investment by Indian

companies both public and private, in

this sector.

The Myanmar side welcomed the

substantial additional investment by

ONGC and GAIL for the development

in the upstream and downstream

projects of Myanmar offshore blocks

A-1 and A-3 including the natural gas

pipeline under construction at

Ramree in Myanmar.

In the field of telecom, following

the successful functioning of the

official Fibre link between India and

Myanmar via Moreh, the two leaders

agreed to upgrade the microwave

link between Moreh to Mandalay

under a line of credit of US$ 6 million

from India. Further, a new Optical

Fibre Link between Monywa to Rhi-

Zawkhathar will also be undertaken

with Indian assistance.

The Myanmar side thanked India

for its continued assistance through

renewal of the agreement to provide

IRS-P5 and Cartosat Data throughAntrix.


encourage collaboration between

Myanmar and India in the area of

Information and Communication

Technology.

Recalling India's earlier assistance

in supplying railway rolling stock,

machineries and equipments to

Myanmar, both leaders agreed to

further cooperation in the railway

sector. The Indian side extended a

line of credit of US$ 60 million to

procure railway equipment.

The two leaders noted with

satisfaction that the project being

undertaken by TATA Motors to set up

a heavy turbo truck plant at Magway

is proceeding well and encouraged

other Indian companies to enter into

the industrial sectors in Myanmar.

The Myanmar side assured that

current investment proposals by

private Indian companies in Myan-

mar would be actively facilitated.The two leaders welcomed the

expansion of trade and commerce

between the two countries manifest

in the increase in the volume of trade

to more than US$ 1 billion per

annum. They agreed that trade at

border trade points should be further

enhanced to boost the immense

potential that exists in bilateral trade.

This would also directly benefit the

North-East States of India.

9Vol. - 17


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11/80

Referring to the existing border

trading points at Moreh - Tamu

(Manipur) and Zawkhathar-Rhi

(Mizoram) as well as the additional

point agreed to be operationalised at

Avankhug-Somra (Nagaland), the

two sides agreed to put in place the

necessary infrastructure to make

these points viable and business

friendly.

The two leaders welcomed the

establishment of direct banking links

between India and Myanmar

following the signature of the

correspondent banking relationship

agreement between United Bank of

India and Myanma Foreign Trade

Bank, Myanma Economic Bank andMyanma Investment and Comm-

ercial Bank for providing banking

arrangements relating to upgrading

of border trade to normal trade. They

encouraged the business community

to make optimal use of this

arrangement and thus enhance

direct trade transactions.

The two leaders encouraged to

conduct business meetings to be held

alternately in both countries for trade

promotion. They noted that such

measures can help build bridges at

the business level and promote

business and commercial oppor-

tunities.

In recognition of the close and

fr iendly tour ism cooperat ion

between India and Myanmar and

cooperation under the frameworks

of ASEAN+India and BIMSTEC, the

two sides agreed to further promote

tourist contacts. The Myanmar side

thanked India for the facilities and

courtesies being extended to

Myanmar pilgrims visiting India.

Both leaders welcomed the

proposal for the restoration of the

historic Ananda temple in Bagan to

be undertaken with the assistance of

the Archaeological Survey of India,

with the involvement of the Ministry

of Culture of Myanmar.

Both leaders expressed satisfa-

ction at the ongoing implementation

of the MoU for cooperation in

Buddhist studies and the relatedwork plan agreed to between the

Ministry of Religious Affairs of

Myanmar and the Nava Nalanda

Mahavihara University. Several

hundred Myanmar Buddhist scholars

and monks are currently studying in

this university in various disciplines.

The Myanmar side expressed

gratitude to India for its numerous

HRD initiatives in Myanmar which

included setting up of the following:

The Myanmar-India Centre for

English language Training;

The Myanmar-India Entrepre-

neurship Development Centre;

The India-Myanmar Centre for

Enhancement of IT Skills; and

the Industrial Training Centre in

Pakokku.

The Myanmar side also indicated

that the training offered by India

under the ITEC and TCS schemes have

been valuable for scholars and

Government officials in Myanmar.

The Indian side agreed to offer more

opportunities for higher studies and

training in Universities and training

institutions in India to scholars from

Myanmar.

The Myanmar side informed the

Indian side about developments in

Myanmar including the groundwork

for elections scheduled towards the

end of the year. The Indian side

thanked the Myanmar side for the

detailed briefing and emphasized the

importance of comprehensivelybroad-basing the national recon-

ciliation process and democratic

changes being introduced in

Myanmar.

While discussing international

developments, the two sides

emphasized the importance of an

effective multilateral system, centred

on a strong United Nations, as a key

factor in tackling global challenges. In

this context, they stressed the urgent

need to pursue the reform of the

United Nations including the Security

Council, to make it more represen-

tative, credible and effective.

The leader of Myanmar reiterated

Myanmar's support for India's bid for

the permanent membership of the

United Nations Security Council. He

also conveyed its support to India's

candidature for a non-permanent

seat in the UNSC for the term 2011-

2012.

The two leaders also emphasized

the importance of India andMyanmar to work together in the

cause of regional cooperation. The

Indian leadership offered its good

wishes to Myanmar for a successful

t e r m a s B I M S T E C C h a i r , a

responsibility that it assumed in

2009. The Indian side welcomed

participation of Myanmar at the 16th

SAARC Summit as an Observer for the

first time.

T h e t w o s i d e s e x p r e s s e d


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12/80

satisfaction at the ongoing coop-

eration between India and Myanmar

under the ASEAN-India Summit

Relations and welcomed the

implementation of the ASEAN-India

FTA. The Myanmar side appreciated

India's support for building an ASEAN

Community in 2015, and to the

Vient iane Act ion Programme

including the Initiative for ASEAN

Integration and other sub-regional

growth initiatives such as Mekong-

Ganga Cooperation Initiative and EAS

cooperation. Myanmar side recog-

nized that ASEAN-India Framework

Agreement on Comprehensive

Economic Cooperation which was

signed in 2003 has played asignificant role in strengthening the

Dialogue Partnership. Myanmar

being a natural bridge between

ASEAN and India, the Indian side

reiterated its intention of building

upon the commonalit ies and

synergies between the two countries

to advance its Look East Policy.

In the above context, both leaders

reiterated their commitment to

undertake the tri-lateral connectivity

from Moreh in India to Moe Sot in

Thailand via Myanmar. The Indian

side agreed to take up the

preparation of DPRs for roads and

causeways in Myanmar to realize this

project.

During the visit, the following

documents were signed;

(a) Treaty on Mutual Assistance

in Criminal Matters

(b) MOU regarding Indian Grant

Assistance for Impleme-

ntation of Small Develop-

mental projects.(c) MOU on Information Coope-

ration

(d) Agreement on Cooperation in

the fields of Science &

Technology

(e) MoU on Conservation and

Restorat ion of Ananda

Temple in Bagan, Myanmar

Senior General Than Shwe

thanked the President of India and

the Indian Government and people

for the warm and gracious hospitality

extended to him and the members of

his delegation during their stay in

India.

Senior General Than Shwe also

extended a warm invitation to the

President and Prime Minister of India

to visit Myanmar at a mutually

convenient time. The President and

Prime Minister of India thanked him

and accepted the invitation with

great pleasure. The dates for the visit

would be decided by mutual

consultations through diplomatic

channels.

Indo-Myanmar Relations:

An OverviewIntroduction

The Indo-Myanmar relations since

1948 (when Myanmar became

independent) can be considered as

cordial and friendly (from 1948 to

1962), frozen or strained (from 1962

to 1988) and flourishing from 1988 till

date. The reasons for these radical

changes in the ties can be attributed

to both Myanmar for its isolationist

policy adopted by the military regime

and to India for its shift from an

idealist or moralistic to realistic or

pragmatic policy adopted. India's

Look-East policy has been the main

driving force for improvement in the

bilateral relations.

Strategic Importance

The reasons for the strategic

importance of Myanmar to India are:

Myanmar is located at the tri

junction of East Asia, South Asia

and South East Asia.

Myanmar is the second largest ofIndia's neighbours and the largest

on the eastern flank.

Myanmar provides the Eastern

littoral of the Bay of Bengal. An

unfriendly Myanmar hosting

foreign naval presence would

pose a threat to Indian security.

Myanmar has a big border with

China in the north contiguous

with the Sino-Indian disputed

b o r d e r w h i c h h a s m a n y

implications.

India has both a land border (1640

km) and a maritime boundary

with Myanmar in the Bay of

Bengal. Four Indian states

(Arunachal Pradesh, Nagaland,

Manipur and Mizoram) border

Myanmar (Kachin & Chin states

and Sagaing Division)

China can gain access to Indian

Ocean through Myanmar

Economic Importance

Myanmar is India's gateway to ASEAN

as it is the only country of this

grouping which has a land and

maritime boundary with India. With

India becoming a summit levelpartner of ASEAN and a member of

the East Asia Summit, improved

relations with Myanmar will be

beneficial in many respects. Besides

Myanmar and India are members of

some sub regional groupings such as

the BIMST-EC and the Mekong Ganga

Cooperation.

China has raised its economic

profile in SE Asia, particularly in

Myanmar despite the sanctions

imposed by the west. India should

not be left behind especially in view

of the large oil and gas resources

available in Myanmar and much

needed by India.

Security Considerations

The major security considerations

are:

Insurgency in the North Eastern

States of India Some of the

insurgent groups have estab-

lished camps in Myanmar and

operating from Myanmareseterritory

Smuggling of arms (by both land

and sea)

Drug trafficking and narco-

terrorism.

Illegal immigration from Yunnan

into Northern Myanmar and

association of Chinese workers in

road construction activities

Bilateral Relations

11Vol. - 17


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13/80

!948-1962. Relations were friendly

and cordial during the days of Prime

Minister Nehru and Prime Minister U

Nu. India provided economic and

military assistance .Both were

members of the Non Aligned

Movement.

1962-1988 Relations virtually

froze with the military rule under Ne

win adopting an isolationist policy.

Domestic policies including the

expulsion of ethnic Indians soured

the relations. Myanmar's anti Soviet

stance strained relations with India

being pro-Soviet at that time.

Myanmar refused to become a

member of the Commonwealth.

Indian Consulate in Mandalay had tobe closed. Myanmar withdrew from

NAM in 1979.

1988-Till date. As a result of the

sympathy of the Indian government

to the pro democracy movement

which started in 1988, the relations

were strained. India had even

accommodated a large number of

pro democracy refugees in camps in

NE India. All India Radio programmes

were criticising the military regime.

In 1993 India reversed its stance with

a more realistic and pragmatic policy

and started engaging the military

regime. Since then the relations have

been growing steadily save for a

minor hiccup in 1995 when Aung San

Suu Kyi was awarded the Nehru

Peace Price for International

Understanding. The visit of Maung

Aye, Vice Chairman SPDC, the second

most powerful leader in the junta, in

November 2000, helped the turn

round in the relations. There has

been all round progress in political,economic and military relations as

well as cooperation in technology,

HRD, infrastructure, education,

space, health and other fields.

Bilateral TradeBilateral Trade has expanded

significantly from US $ 12.4 million in

1980-81 to US $ 425 million in 2004-

05. India's imports from Myanmar

are primarily agricultural and forest

based products (especially beans and

pulses) and main exports to

Myanmar are primary and semi

finished steel and pharmaceuticals.

The balance of trade is heavily in

favour of Myanmar.

The Confederation of Indian Industry

(CII) constituted the India-Myanmar

Joint Task Force during the Made in

India show organized by the CII in

Yangon in February 2004. It has met

often both in India and Myanmar and

has helped in giving a big fillip to the

bilateral trade.

The Confederation of Indian

Industry (CII) has entered into a

Memorandum of Understanding

with the Union of MyanmarF e d e r a t i o n o f C h a m b e r s o f

Commerce and Industry (UMFCCI)

and the Myanmar Computer

Federation. Government of India has

extended a number of general and

project specific credit lines to

Myanmar in the last few years for

improvement of the trade relations.

Border TradeThe first Border Trade Agreement

was signed in Delhi in January 1994

and was implemented in April 1995

with the opening of a cross border

point between Moreh (Manipur,

India) and Tamu (Sagaing Division,

Myanmar). Subsequently both

governments had agreed to open

four check posts which inclue

Pangsau pass, Paletwa, Lungwa-

Yanyong and Pangsha-Pangnyo

between the nations. Opening of

border posts will help in checking the

border trade and making it official,

curb the illegal trade of goods andmonitor the activities of the

insurgent groups between India and

Myanmar.

The border trade which had a spurt in

the beginning with export of Indian

goods worth Rupees 31 crores and

imports from Myanmar woth 15

crores in 1996-97 had declined to a

level of Rupees 5 crores in export and

import by 2004-05 according to

official statistics.

The reasons for decline in the border

trade are mainly due to a) rise of

popularity of commodities imported

from third countries by Myanmar

(primarily China) which find their way

i n t o I n d i a a n d b ) f r e q u e n t

intimidation and monetary demands

by numerous insurgent groups

operating in border areas.

Trans border trade has failed to

provide any benefit to local people

and there are procedural hiccups for

obtaining licenses as well.

Border ManagementIndia and Myanmar have regular

border post meetings at Moreh-

Tamu. It has been agreed to have four

more border posts to facilitate armymeetings. They are at Lungwa (Mon

d i s t r i c t - N a g a l a n d ) , B i h a n g

(Churchandpur district-Manipur) and

at Sapi and Zokawathar (Mizoram). A

400 km border with Myanmar is

already fenced and is being improved

by raising the height. A stretch of 14

km near the international boundary

at Moreh has also been planned to be

fenced. The fencing is important in

view of the rampant narcotic trade


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14/80

along the Indo-Myanmar border.

Infrastructure Projects inMyanmar

The 160 Km I nd ia- Myanmar

Friendship road on Burmese territory

from Tamu to Kalemyo to Kalewa was

b u i l t b y t h e B o r d e r R o a d s

Organisation and completed in 2001.

It will also be maintained by India up

to March 2008.

India is involved in the India-

Myanmar - Thai land Tr i lat e r a l

such as the Yangon-Mandalay sector

as well as connecting them to rail

links on the Indian side.

A media report of June 2006 also

indicates that the Indian Commerce

Ministry has embarked upon an

ambitious project to develop Sittwe

port in Myanmar and to open up a sea

route connecting it to Mizoram in

North East India. For this purpose,

the navigable river Kaladon in

Mizoram is to be developed.

Oil and GasMyanmar has reportedly world's

tenth biggest gas reserves estimated

to be more than 90 trillion cubic feet.

India has evinced keen interest toprocure gas from Myanmar. ONGC

Videsh Limited (OVL) and Gas

Authority of India Limited (GAIL) hold

30 % stakes in the exploration and

production of gas in Myanmar's A1

and A3 off shore blocks located in

Sittwe Area of Arakan State.

The earlier proposal to bring the

gas in Myanmar by a pipeline through

Bangladesh to India had to be

dropped because of unreasonable

demands from Bangladesh. The

latest proposal is to bring the gas

through a 1575 Km pipeline (longer

than the Bangladesh route) from

Sittwe port in Myanmar through

Aizwal Silchar-Guahawti-Siliguri to

Gaya linking it to Haldia-Jagadishpur

oil pipeline in Gaya (Bihar).

India has even offered to buy

Myanmar gas and import it through

ship till the pipeline is laid.

Military to Military Contacts

As early as in 1995 India andMyanmar armies had conducted a

joint military operation (called

Golden Bird) against some North

Eastern insurgent groups (ULFA,

NSCN, PLA, PLF& KNA) though this

operation was abhorted after Aung

San Suu Kyi was awarded the Nehru

Peace prize for International

Understanding. Myanmar resumed

its military operations against the

insurgents from Feb 2000 to May

2001.

In January 2000, the Chief of Army

Highway Project.

India has extended project

specific credit lines for up gradation

of Yangon-Mandalay Trunk line, an

optical fibre link between Moreh andMandalay and ADSL systems in

Yangon & Mandalay.

Other projects at various stages of

completion include construction/

upgradation of Rhi-Tidim and Rhi-

Falam road sections in Myanmar, the

Kaladan Multimodal Transport

project and the Tamanthi Hydro

Electric power project.

India has also offered to help

Myanmar in improving its rail links

13Vol. - 17


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15/80

cooperation in Communications, IT

and services; Agreement on

extension of a credit line of US $

25mil l ion to Government of Myanmar; Agreement on Visa

exemption for Official and Diplomatic

passport holders and an Mou

between HRD Ministry of India and

Education Ministry of Myanmar.

During 2004 eight agreements

/MoUs were concluded between

India and Myanmar. Of these the

notable ones were the MoU on the

cooperation of Non-traditional

Security Issues and the MoU on the

Tamanthi Hydro Electric Power

Project.In 2005 a MoU on Energy

Cooperation was signed.

In 2006, MoUs on Cooperation in

the Petroleum Sector, Cooperation in

Buddhist Studies and a Framework

Agreement for mutual Cooperation

in the field of Remote Sensing were

signed.

Cooperation between India and

Mynmar in Regional/Sub-Regional

Context.

ASEAN: Myanmar became amember of ASEAN in 1997. As the

only ASEAN country which shares a

land and maritime boundary with

India, Myanmar is the gateway to

ASEAN. The Ministry Of External

Affairs has indicated that a few

proposals for cooperation are under

discussion with Myanmar within the

f r a m e w o r k o f A S E A N ' s I A I

Progamme. Of these the Myanmar-

India Entrepreneurship Development

Centre is expected to be launched

soon.

Bay of Bengal Initiative for Multi

Sectoral Technical and EconomicCooperation (BIMSTEC): Myanmar

became a member of BIMSTEC in

1997. BIMSTEC has identified six

sectors of cooperation, for each of

which a lead country has been

designated. Myanmar is the lead

country for the energy sector.

Myanmar trades mostly with

Thailand and India in the BIMSTEC

region. Myanmar's major exports to

India are agricultural products like

beans, pulses, and maize and forest

p r o d u c t s s u c h a s t e a k a n dhardwoods. Its imports are chemical

products, pharmaceuticals, electrical

appliances and transport equipment.

Mekong Ganga Cooperation (MGC):

Myanmar is a member of the MGC

since its inception in 2000. MGC is an

initiative by six countries India and

five ASEAN countries namely

Cambodia, Laos, Myanmar, Thailand

and Vietnam for cooperation in the

fields of tourism, education, culture,

transport and communication.Forum on Regional Economic

Cooperation among Bangladesh-

China-India-Myanmar (BCIM): The

BCIM initiative has attracted much

attention in India, as it has the

potential to bring three of India's

neighbours closer to a joint pursuit of

common prosperity through the

increasing use of mechanisms of

regional integration. The sixth forum

of the BCIM was held at Delhi in

March 2006.

The China Factor

China and Myanmar have been closeallies since the time PRC came into

being. For Myanmar, China's

substantial economic, military and

political support is vital in view of the

sanctions imposed by the west and

the mounting pressure by the regi-

onal and international forum.

China is the major supplier of

military hardware to Myanmar.

China's military sales to Myanmar

include jet fighters, armoured

vehicles and naval vessels valued at

around $ 2 billion. China is helpingMyanmar to modernize its naval

bases in Hiangyyi, Coco, Akyab,

Z a d e t k y i K y u n , M e r g u i a n d

Khankphyu. China has a maritime

reconnaissance and electronic

intelligence station in Coco islands

and is building a base at this location.

The ultimate aim is to secure a

corridor to the Indian Ocean from

South China via Myanmar. Thanks to

China, the Myanmar army is the

second largest in South East Asia(after Vietnam) and it has expanded

from 180000 men to more than

450000.

The Chinese have built an all

weather road from Kunming in

Southern China to Mandalay in

Central Myanmar.

In the year 2004, it gave Myanmar

$ 200 million in aid. The trade

between the two countries has more

than doubled in five years to $ 1.1


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16/80

billion in 2004 as per the Chinese

Government statistics. China is

officially Myanmar's third largest

trading partner after Singapore and

Thailand not taking into account the

informal border trade.According to a report in Time

(January 30, 2006), more than $ 400

million in trade funnels through the

Jiegao Border Trade Economic Zone

each year. China exports household

appliances, chemicals and medicines

and Burma ships back jade, sea food

and timber.

India is concerned with China's

incr e as ing e ng ag e me nt w i t h

Myanmar's military junta, especially

in improving the naval facilitiesincluding the setting up of four

electronic listening posts along the

Bay of Bengal and the Andaman Sea.

Indian Foreign Secretary (prior to the

recent visit of the Indian President) in

reply to a question on India-China

rivalry replied that It is not

appropriate to look for India-China

rivalry at every nook and corner of

Asia. The India-Myanmar relations

stand on their own.

While India's concerns are

understandable, Myanmar musthave also realised that it is being

stifled by China and must look for an

alternative in India particularly in

view of India's rising economic

potential and mutual strategic and

security interests.

ConclusionThe relations between India and

Myanmar have been chequered with

numerous ups and downs. However

since the visit of Senior General Than

Shwe in October 2004, the relations

have been on the upswing gaining

from strength to strength every year.

India's long term interests may be

better served by a democratic regimein Myanmar but the present

approach is to help Myanmar in

building its democratic institutions

without embarrassing or isolating the

junta but through official and

diplomatic channels.

The strategic and security considera-

tions outweigh India's concern for

democracy in Myanmar.

Despite India's impro-ving relations

with China, the China factor does

have an impact on India's relationswith Myanmar. However it is also in

Myanmar's interests to have an

alternative source in India for its

economic betterment.

It has been proved beyond doubt that

economic sanctions have not

deterred the military regime in

pur su ing i t s ag e nda. He nce

diplomatic persuasion and economic

a id l ink e d w i t h pr og r e ss in

democratic reforms may be a viable

solution. Hence India is perhaps on

the right path in engaging the military junta in a constructive manner but

should be watchful of the efforts of

the other nations in the region to

introduce a semblance of democracy

in Myanmar.

15Vol. - 17


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17/80

xternal Affairs Minister Shri

S.M. Krishna paid an official

visit to the Republic of

Mauritius from July 2 - 4, 2010. He

was accompanied by Shri Vivek Katju,

Secretary (West) and other senior

officials of the Ministry of External

Affairs. The visit was a part of the

regular ongoing high-level bilateral

exchanges between India andMauritius. This was also EAM's first

visit to Africa.

During his visit, EAM called on

President Sir Anerood Jugnauth and

Prime Minister Dr. Navinchandra

Ramgoolam. He met Deputy Prime

Minister and Minister of Energy and

Public Utilities Dr. Ahmed Rashid

Beebeejaun, Vice Prime Minister and

Minister of Finance and Economic

Development Mr. Pravind Kumar

Jugnauth. EAM also met his

counterpart Dr. Arvin Boolell,

Minister of Foreign Affairs, Regional

Integration and International Trade

and discussed issues of mutual

interest. EAM laid a wreath at the

Samadhi of the Father of the

Mauritian Nation Sir Seewoosagur

Ramgoolam.

EAMs discussions with his inter-locutors covered the entire canvass

of bilateral cooperation between

India and Mauritius and touched

upon regional and international

issues of mutual interest and

concern. The views of the two sides

on all these subjects were identical.

EAM and Prime Minister Navin

Ramgoolam recalled the nature of

the special relationship which

bound the two countries together.

EAM remarked that the cooperation

between India and Mauritius is

compr e he ns ive and mul t id i -

mensional. He thanked Mauritius for

E

By : Avadhesh Kumar Pandey

India- Mauritius RelationsVisit of External Affairs Minister to Mauritius


Article



18/80

its consistent support to India's

candidature to the UN Security

Council as well as its support to

India's candidature for the non-

permanent seat of the UNSC for

2011-12. EAM also noted that

Mauritius had stood with India all

along on issues relating to terrorism

and had been unwavering and

unequivocal in condemning the

26/11 Mumbai attack. Mauritian

leaders expressed their gratitude for

India's consistent support at all times

of need and otherwise and noted

India's continued assistance to

Mauritius in various sectors. Prime

Minister Navin Ramgoolam and

Foreign Minister Arvin Boolellexpressed their satisfaction over the

technical assistance received from

India in anti-piracy patrolling and EEZ

Surveillance of Mauritian waters to

improve security in this region of the

Indian Ocean.

The following documents were

signed during the visit:

(i) Memorandum of Understan-

ding on the supply of an

Offshore Patrol Vessel;

(ii) Agreement on Early Warning of

Coastal Hazards between Indian

National Centre for Ocean

Information Services (INCOIS)

and The Meteorological Servic-

es, Mauritius;

(iii) Programme of Cultural Coo-

peration between India and

Mauritius for 2010-2013;

(iv) Agreement between Standar-

disation, Testing and Quality

Control Directorate (STQC),

Department of Information

Technology, Govt. of India andthe National Computer Board,

Government of Mauritius;

(v) Agreement between Indian

Council for Cultural Relations

(ICCR) and Mahatma Gandhi

Institute (MGI), Mauritius on

the establishment of a Visiting

Chair of Sanskrit and Indian

Philosophy at MGI.

EAM invited the Minister of

Foreign Affairs, Regional Integration

and International Trade of Mauritius

Dr. Arvin Boolell to pay a visit to India.

EAM also invited Vice Prime Minister

and Minister of Finance and

Economic Development Mr. Pravind

Kumar Jugnauth to visit India for the

11th Session of the India-Mauritius

Joint Commission on Economic,

Technical and Cultural Cooperation;

EAM and Vice Prime Minister

J ug naut h co- Chai r t he J o int

Commission.

Relations between India and

Mauritius in the political, economic

and cultural fields are comprehensive

and extensive. EAM's visit provided

yet another opportunity for further

consolidation and development ofthe traditional, time-tested and

historical relations between India

and Mauritius.

History of Bilateral Relations :

Mauritius maintained contacts with

India through successive Dutch,

French and British occupation. The

French colony of Pondicherry played

an important role in the development

of Mauritius during the French

occupation by providing skilled

workforce for various projects in

Mauritius. From the 1820s, Indian

workers started coming into

Maurit ius to work on sugar

plantations. From 1834 when slavery

was abolished by the British

Parliament, large numbers of Indian

workers began to be brought into

Mauritius as indentured labourers.

The ship 'Atlas', which carried the

first batch of Indian indentured

labourers, reached Mauritius on

November 2, 1834. This day is now

observed in Mauritius as 'AapravasiDay', a national holiday.

Over the following decades, the

number of Indian immigrants grew to

a level where they came to constitute

a majority of the population. In all,

about ha l f a mi l l ion I nd ian

indentured labourers are estimated

to have been brought into Mauritius

between 1834 and the early decades

of the 20th century, out of whom

about two-thirds settled perman-

ently in Mauritius.

Diplomatic relations between

India and Mauritius were established

in 1948.

Political RelationsMauritius has consistently extended

its support for India's candidature for

a permanent seat in the UN Security

Council. It has stated this in public

forum including the United Nations

General Assembly.

Mauritius supports initiatives, both

at regional and international levels,

against terrorism and highlighted the

need for concerted international

action to fight terrorism. Mauritius

has enacted domestic legislationagainst terrorism. During the visit of


to Mauritius in March-April 2005, an

Agreement for setting up of a Joint

Working Group (JWG) on Combating

International Terrorism and Related

Matters was signed between India

and Mauritius. Pursuant to the

Agreement, two meetings of the JWG

have been held in New Delhi in

August 2006 and Port Louis in

February 2008. The third Meeting is

expected to be held in New Delhi in

the second half of 2009.

In the JWG meetings, both sides

have agreed for closer cooperation in

the areas of combating terrorism,

including financing of terrorism. India

and Mauritius have agreed to share

information on terrorism and Drug

trafficking, enhance preparedness of

the Mauritian Police Force to deal

with terrorist attacks and strengthen

cooperation in the field of maritime

security.

Defence CooperationUnder the ITEC programme, about

30-45 personnel from the Mauritian

Police Force are trained annually in

Indian Defence Training Establish-

ments.

Visit of Indian Naval Ships to

Mauritius forms part of the regular

interaction between the defence

forces of the two countries. Recent

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visits of Indian Navy ships to

Mauritius include INS 'Mumbai' and

INS 'Karmuk' in April 2008. INS Ship

'Tir', INS 'Krishna' and ICGS 'Vivek'visited Mauritius in September 2008.

A Memorandum of Understanding in

the field of Hydrography between

India and Mauritius was signed

during the visit of the Mauritian

Prime Minister to India in October

2005. Under the MOU, hydrographic

surveys have been undertaken by

Indian Naval Survey Ships in 2006,

2007, 2008 and 2009. Surveys

undertaken include the waters

around Port Louis Harbour, Agalega

Islands, Port Mathurin, St. Brandon,

Saya de Malha Banks, Black River Bay,

Tamarin Bay, Grand Bay and Riviredes Galets. A Protocol on the Sale of

Navigational Charts was signed in

April 2009.

Economic and Commercial relations

The bilateral Joint Commission on

Economic, Technical and Cultural

Cooperation between India and

Mauritius has so far held ten

meetings. The tenth JMC Meeting

held in Port Louis on December 18,

2007 was co-chaired by the then

External Affairs Minister, Shri Pranab

Mukherjee and the Deputy Prime

Minister and Minister of Finance and

Economic Development of Mauritius,Dr. Rama Krishna Sithanen. In his

opening statement, the External

Affairs Minister noted that the

purpose of his visit was to strengthen

cooperation between the two

countries and build on the new

beginnings that have been made in

recent years.

He also said that India wished to add

substance to this partnership and

provide the foundation for its

Name of the

MOU/Agreement

Synopsis of the

MoU/AgreementSigned by

MOU between the Government of theRepublic of India and the Government of

the Republic of Mauritius for providing of

one Offshore Patrol Vessel

MOU on Cooperation for Early Warning

Arrangement for Coastal Hazards Between

The Indian National Centre for Ocean

Services (INCOIS), Government of the

Republic of India and The Meteorological

Services, Government of the Republic of

Mauritius

Programme for Cultural Cooperation

between the Government of the Republic

of India and the Government of the

Republic of Mauritius for the years 2010 -

2013

MOU between Standardisation, Testing

and Quality Certif ication (STQC),

Department of Information Technology,

Republic of India and National ComputerBoard (NCB) of the Republic of Mauritius

MOU between the Indian Council for

Cultural Relations (ICCR) and the Mahatma

Gandhi Institute (MGI) in consideration of

Visiting Chair of Sanskrit and Indian

Philosophy at MGI, Moka

The Government of India has decided toprovide one time Grant of US$ 10 million

and Line of Credit of US$ 48.5 million

extended through the EXIM Bank of India

to the Government of Mauritius for the

supply of one Offshore Patrol Vessel,

manufactured by Garden Reach Ship-

builders & Engineers Ltd. (GRSE), Kolkata,

India to assist the Government of

Mauritius in strengthening its maritime

capabilities.

To establish cooperative linkages for

Tsunami Early Warning arrangements,

preparedness, and mitigation of tsunami

hazards and facilitate real-time monitoring

data from all sea-level and earthquake

monitoring stations and other observation

systems of the Meteorological Services

To strengthen and reinforce cultural

linkages and enhance people to people

interactions by organizing exhibitions,

holding film festivals and book fairs,

exchanging cultural troupes, encouraging

youth exchange programmes, providing

scholarships, etc.

To promote closer co-operation and

exchange of information pertaining to the

Information Security and IT standards and

collaborate on best practices in the field ofInformation Security Management

Systems; disaster recovery planning and IT

Service management.

To establish a Visiting Chair of Sanskrit and

Indian Philosophy at the School of

Indological Studies, MGI. The Chair will be

responsible to teach Sanskrit and Indian

Philosophy at B.A./M.A./M.Phil. levels at

MGI.

India: H.E. Shri M. Ganapathi, HighCommissioner of India

Mauritius: Mrs. K.O. Fong Weng-Poorun,

Permanent Secretary, Prime Minister's

Office.

India: H.E. Shri M. Ganapathi, High

Commissioner of India

Mauritius : Mr. Dunputh Balraj Hari-

krishna, Acting Director of the Meteoro-

logical Services.



Mauritius: H.E. Mr. J.D. Phokeer,

Permanent Secretary, Ministry of Arts and

Culture



Mauritius: Mr. S. Ramgolam, Chairman,

National Computer Board of the Republicof Mauritius



Mauritius: Mrs. V.D. Koonjal, Director

(MGI) & Officer-in- Charge (MGI & RTI)

List of Agreements/MoUs signed during the visit of Minister of External Affairs

Shri S.M. Krishna to the Republic of Mauritius 03/07/2010

1.

S.No.

2.

3.

4.

5.


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20/80

sustained and rapid development

taking into account the numerous

complementarities that the two

countries shared. The agreed

minutes of the meeting inter alia

covered both the traditional areas of

cooperation between the two

countries including cooperation in

the political and security field,

economic, technical and commercial

cooperation, and cultural coo-

peration, as well as new areas such as

hydrography, cooperation in explo-

ration and exploitation of hydro-

carbon in the Mauritian EEZ, bio-

technology, etc.

During the visit of the then Prime

Minister of Mauritius, Paul RaymondBrenger from November 19-24,

2003, it was decided to set up a Joint

Study Group (JSG) to chart out

modalit ies for establishing a

Comprehensive Economic Cooper-

ation and Partnership Agreement

(CECPA) between the two countries.

The JSG was launched at the ninth

session of the India-Mauritius Joint

Commission held on January 8, 2004

in New Delhi. The JSG report was

formally presented to the two Prime

Ministers during the State visit of


to Mauritius in March-April 2005.

During the visit, it was decided to set

up an Empowered Committee to

concretise the recommendations of

the JSG within a 12-month time

frame. On the Indian side, the

Empowered Committee is led by the

Ministry of Commerce & Industry.

India was the largest exporter of

goods and services to Mauritius in

2007 and 2008 (Jan-Sept.). As perofficial Mauritius estimates, Indian

exports to Mauritius during the

period January - December 2008

were MRs. 31.7 billion.

Main items of exports were

petroleum products, yarn, woven

fabrics, made up textile, bovine meat,

fish, r ice, organic chemicals,

pharmaceuticals, plastic, printed

books & newspapers, footwear,

ceramic products, glass & glassware,

aluminium, toys, etc.

Main items of import into India

were non-industrial Diamonds, Scrap

metal, Multiple Yarn, Glycerin, PVC

products.

An MOU for cooperation between

State Trading Corporations of India

and Mauritius was signed in July

2005.

A three-year Agreement wassigned between the Mangalore

Refinery and Petrochemicals Ltd

(MRPL) and the State Trading

Corporation of Mauritius in July 2007

for supply of al l petroleum

requirements of Mauritius. SBI

Mauritius has extended a credit line

to the STC of Mauritius for purchase

of petroleum.

Air Mauritius operates flights to

M u m b a i , N e w D e l h i a n d

Chennai/Bengaluru on a code-

sharing arrangement with Air India.

The CMD of Air India is represented

on the Board of Air Mauritius.

Mauritius accorded 'fifth freedom'

rights to Air India in 2004 on the

South Africa - India route.

There are shipping links between

India and Mauritius. The Delmas

Shipping Company provides a direct

shipping route between Mumbai and

Port Louis. In addition, shipping

routes are provided by major

shipping companies, connectingMumbai to Port Louis through Oman.

Several Indian public enterprises

are functioning in Mauritius since the

early 1960s. Bank of Baroda, Life

Insurance Corporation, and the New

India Assurance were the first toestablish operations followed by

other PSUs including India Handloom

H o u s e , T e l e c o m m u n i c a t i o n s

Consultant India Ltd., Indian Oil

(Mauritius) Limited, Mahanagar

Telephone (Mauritius) Ltd., State

Bank of India Mauritius Limited.

Over the past decades, Indian-

assisted projects in Mauritius include

the Mahatma Gandhi Institute,

Upadhyaya Tr a in ing Ce nt r e ,

J a w a h a r l a l N e h r u H o s p i t a l ,

Subramania Bharati Eye Centre, etc.

Projects establ ished through

a s s i s t a n c e p r o v i d e d b y t h e

Government of India include the

Rajiv Gandhi Science Centre, the

Rabindranath Tagore Institute, the

Cybertower at Ebene and the Swami

V i v e k a n a n d a I n t e r n a t i o n a l

Conference Centre.

Information Technology has

emerged as the most prominent area

of technical cooperation for the

f u t u r e . A n A g r e e m e n t f o rcooperation between the two

countries in the IT sector was signed

in 2000. Prominent Indian IT

Bilateral trade between India and Mauritius over the last ten years is indicated below :

India Exports and Imports From Mauritius

Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Exports 161 171 200 163 164 203 258 199 737 1086

Imports 2.01 3.93 6.17 3.26 16.13 7.54 7.19 7.33 14.51 10.07

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companies, such as INFOSYS, Hinduja

TMT, etc., have established operati-

ons in Mauritius. Some other Indian

IT companies also have theirpresence in Mauritius.

Indian tourist arrivals in Mauritius

increased from 37,934 in 2006 to

43,624 in 2007 and 43,911 in

2008.

Educational, ITEC andTechnical Cooperation

Annually, 98 scholarships are

extended to Mauritian students

for higher education in India.

Approximately 200 Mauritian

students enrol every year inIndian universities on a self-

financing basis. According to the

Government of Mauritius, at the

end of 2006, 1,302 Mauritian

students were studying in Indian

tertiary education institutions -

the fourth highest destination for

Mauritian students studying

overseas.

Under the Indian Technical and

Economic Cooperation (ITEC)

programme, 30 to 40 civilian

officials from the Government of

Mauritius undergo training inIndian institutions every year.

Fol lowing the India-Afr ica

Summit, this number has been

increased to 80 slots.

A bilateral agreement provides for

deputation of up to 20 ITEC experts

from India to Mauritius.

Cultural RelationsActive cultural exchanges with

Mauritius take place both under

officially sponsored programmes and

through a wide non-official networkof Indo-Mauritian socio-cultural

Documents

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