Thirteen years can be a long time in regional security and diplomacy.
It is thirteen years since the Quadrilateral security dialogue (or the Quad) between the officials of Australia, India, Japan and the US, gave in to Chinese coercion.
This year it is back and potentially stronger.
India has decided to stand strong, as it becomes a significant regional power. It is again leading the Quad in the Malabar series of naval exercises in the Bay of Bengal – the exercises aim to support an “open and prosperous Indo-Pacific”.
In 2007 countries like India and Australia gave in to Chinese pressure and pulled out of the exercises – China then described the Quad as an “Asian NATO” designed solely to contain China.
The Malabar series of naval exercises is a complex annual fixture with ships, aircraft and submarines of the Indian, US, Australia and Japanese navies exercising alternately in the Indian and the Western Pacific Oceans.
India is different from the other Quad members in that it shares a land border with China – so in that way, it has most at risk in stirring up the Chinese. To put it in perspective, this border is the world’s longest unsettled boundary. Recent military escalation along the border has caused global concern.
All four members of the Quad know that China might “punish” them in response to the Malabar exercises, but they are going ahead anyway.
One narrative is driving most of the strategic decisions and activities in the Indian Ocean region – and that is the need to respond to China. China is seen as the only major power acting to the detriment of the order and stability of the region.
Most feel that attempts to appease China have only led to increased belligerence and a disrespect for diplomatic avenues. Hence, the Quad. And hence, India is stepping forward.
India and Japan might feel better about regional affairs if Biden wins the Presidency of the USA next week.
Why? Because neither country feels comfortable with the bombast and cold war rhetoric emerging from the Trump Administration and US Secretary of State, Mike Pompeo.
Even Australia, which is often too keen to outdo the US, was cautious in response to Pompeo and alluded to our interest in a good relationship with China.
These are some of the key points I take from a recent very thoughtful analysis by John McCarthy AO, a Senior Advisor to Asialink and former Australian Ambassador to the United States, Indonesia, Japan, and High Commissioner to India.
McCarthy makes the point that Pompeo went much further than Japan or India would like when he told the recent Quad meeting in Tokyo that they should “build out a true security framework”.
McCarthy wrote: “Apart from not sharing Pompeo’s buccaneer spirit, Japan continues to seek some equilibrium in its relations with China and has constitutional issues with security groupings. And while India continues to have serious border issues with China, it shows no inclination to veer from its doctrine of Strategic Autonomy.”
“If the Quad is to be in our interests, it has to be a cautious Quad. It is acknowledged—at least formally—by Quad members that ASEAN remains central to regional interstate architecture,” he said.
McCarthy also illustrated how “cause and effect” works in diplomacy: “The more the Quad develops a distinct identity, the greater the risk of growing regional fracturing between three groups—China, the Quad, and ASEAN—possibly with China pulling at Myanmar, Cambodia and Laos, and the Quad pulling at Vietnam. This will make it all the harder to develop even the loose regional approaches on managing China’s rise-particularly on the South China Sea.”
Important to note, as McCarthy does in his conclusion, that Biden’s main priority on election would be to get his own house in order.
That, at least, would yield positive outcomes for us all and be a relief from the bombast.
Indian Prime Minister Narendra Modi set out an ambitious plan to boost exports while reducing imports – and it is working.
According to data collected from the Centre Government, India’s exports to the USA amounted to USD 5.1 billion in September 2020, 15.5% more than the figures for the corresponding month (USD 4.4 billion) in 2019.
In addition, imports from the United States decreased by a substantial 34.3% to USD 1.8 billion in September 2020, compared to USD 2.8 billion in September 2019.
Similarly, in the period from April to September this year, imports from China, one of the largest producers of commodities across industries, decreased to USD 27.4 billion. Therefore, imports have decreased by 24.5% from the USD 36.3 billion amount for the same duration last year.
Meanwhile, Indian exports to China increased by 26.3% to hit USD 10.6 billion in the above-mentioned period, a substantial increase from USD 8.4 billion for the period April-September 2019.
Suzlon Group, India’s largest renewable energy provider, has announced that it has appointed Mr. Ashwani Kumar as its Group CEO.
This is a significant announcement for sustainable energy and India in particular.
The Suzlon Group is one of the leading renewable energy solutions providers in the world with a global presence across 18 countries in Asia, Australia, Europe, Africa and Americas. Headquartered at Suzlon One Earth in Pune, India; the Group is comprised of Suzlon Energy Limited (NSE & BSE: SUZLON) and its subsidiaries.
Ashwani Kumar, with over three decades of experience in the areas of projects, business development and finance at leading Indian Power and Infrastructure companies is a Mechanical Engineer, and an alumnus of IIM Bangalore and The Harvard Business School.
Mr Tulsi Tanti
Mr Tulsi Tanti, Chairman and Managing Director, Suzlon Group, is the driving force who has built Suzlon into a major global wind energy player.
Mr Tanti is picture sixth from left when he presented the Australia India Address in Melbourne.
New defence ties in the Indian Ocean region are rolling out on a regular basis – the latest one reports Australia will join three-way Malabar naval exercises – involving the United States, Japan and India.
Australia left the program after participating in 2007 – leaving following some strong criticism from China.
The move back by Australia shows how much regional attitudes to China have changed.
This new move could raise concerns in China, which has criticised similar joint drills as “destabilising”. China has been slamming import restrictions on Australian cola, cotton, wine and other products.
In contrast to declining relations with China, Australian PM Morrison and Indian PM Modi are working closely together.
India took the initiative of inviting Australia back in a sign of cooperation between the “Quad” countries.
The Malabar exercises are held in the Bay of Bengal.
The joint drills are super significant because they are the first concrete action of the Quad grouping.
China has denounced the Quad as an attempt to contain its development.
India’s decision on expanding the exercises comes at a time when it is locked in a military stand-off on the disputed land border with China.
Not many in the west think of India as a food exporter. But it is – and the numbers are going up.
This blog Into India has called for greater collaboration between India and Australia to become the “food bowls of the Indian Ocean Region”. The combination of the know-how in both countries could produce major agribusiness innovations, especially in horticulture and hydroponics.
Indian exports of essential agricultural commodities for the cumulative period of April-September, 2020 has increased by 43.4% to US$ 7.34 billion.
The major commodity groups doing well in export include Groundnut (35%), Refined Sugar (104%), wheat (206%), Basmati Rice (13%) and Non-Basmati Rice (105%).
It’s a great outcome for the Modi Government.
To boost agri exports, the Government created an Agriculture Export Policy, 2018 which, among other things, provides for a cluster-based approach for export-centric farming of cash crops like fruits, vegetables, spices, etc. It is working!
Recently, the Government has also announced an Agri Infra Fund of US$ 13.70 billion to improve the agri business environment – so more export growth is on the way.
Canada’s massive pension fund plans to invest up to a third of its funds in emerging markets over the next five years and India is an important destination, according to a senior executive.
The Canada Pension Plan Investment Board (CPPIB) manages about 434.4 billion Canadian dollars ($329.75 billion) as of June 30. A bulk of its investments are in North America — around 34% of total assets are allocated in the United States — followed by Asia.
“We expect to invest up to one third of the Fund in emerging markets by 2025 and India is a key component of that,” Suyi Kim, CPPIB’s Asia Pacific head, told CNBC by email.
“Our investments in India span different asset classes including infrastructure, real estate, public and private equities, funds and co-investments and credit,” Kim said, adding, “We see domestic consumption, technology and increasing demand for infrastructure to support the growth underpinning many of the themes and opportunities we look at in India.”
CEO Mark Machin recently told CNBC that the pension fund was reviewing its bond holdings in light of near zero interest rates. watch nowVIDEO02:50Near zero interest rates are challenging for Canada’s massive pension fund, CEO says
In December, CPPIB said it agreed to invest up to $600 million in India’s National Investment and Infrastructure Fund that included a $150 million commitment in NIIF’s Master Fund and co-investment rights of up to $450 million in future opportunities.
Time for Australian superannuation funds to increase commitment to India?
Direct Communication is one of the global PR, because when done well it ensure the brand engages directly with audiences and influencers.
It is rarely done well – but Indian firm Godrej is showing the way.
Of course, direct engagement is not a replacement but represents a complementary approach to traditional communications based on paid, earned and owned media.
Godrej is pioneering direct communications in India through its owned media platforms L’Affaire, Vikroli Cucina, Design Deko, etc.
Sujit Patil, VP & Head Corporate Brand and Communications Godrej Industries Limited & Associate Companies was driven into this because research few years back showed that the affinity towards for brand Godrej amongst Millennials and youngsters could be much better. There are 450 million millennials in India. so you better take notice when they are not.
Patil says: “The three pillars of our owned media platform strategy are – content creation, experiential engagement and building a community of advocates for the brand Godrej.”
Godrej began with the food space as seven of Godrej businesses have a significant share of the kitchen (Interio kitchens, appliances’, Real Good Chicken, Cartini Knives, Protekt hand wash etc.).
Patil again: “The runaway success of ‘Vikhroli Cucina’ as a platform to engage with KOLs in the food space encouraged us to launch ‘L’Affaire’ which is our owned media property that enables brands and businesses in the lifestyle space to meaningfully engage with audiences in an experiential manner.”
“Since the customer experience and brand ethos are the core of owned media platforms, it pushes brands to create Relevancy among its target consumers to drive Engagement using interesting Content which eventually leads to Community building through Experience.
“The authentic content that gets created is used as a constant fuel for the social media handles of the participating brands.
Godrej has innovated to support people during Covid19.
“We started the L’Affaire Saturday night live music series during the initial phase of the lockdown. This was basically started to keep our followers engaged by giving them a good dose of happiness and positivity during the uncertain times. It still continues every Saturday and due to a good traction for the Masterbrand, we added Wilderness Wednesdays, Travel Tuesdays and now Writers Wednesdays. “
Sujit Patil says the PR industry is undergoing a huge cultural and behavioral change.
“The ‘R’ in PR today represents Reality, Resolution, and Reputation. Brands will look at building closer ties through experiences and engaging content with the audience. In fact, the skew will be towards building more direct channels with the target audience offering bi-directional engagement opportunities. The trust in earned and owned media will witness an increase. Therefore, brands which have utilized the lockdown time to re-assess, introspect, and adapt their communication strategy have an edge over others” he concludes.
Most westerners place a high importance on rules, laws, regulations and contracts. They are almost “set in stone” and apply without exception. Most importantly, rules come before relationships – even if it is a family member. Variations to agreement cause confusion and even anger.
In Asia and especially in India, there are all the rules and contracts and so on, but the common view is that each circumstance and each relationship is different, so the rule may or may not apply. It becomes a moment by moment thing. Variations to agreements are taken for granted and fully expected to happen.
How does this work in business? For many westerners, any change to a contract becomes a time to consult the lawyers and can be a relationship ending event. For Asians, change is expected and accepted.
Why western individualism hits the collective wall
Even children are encouraged to make their own decisions in the west – including on courses, careers and most definitely on choice of partner. Under individualism, you make your choices and must take care of yourself – and in some countries this is harshly applied, in others there is a more compassionate welfare safety net.
Most Asian families make decisions for their children, including courses, careers and partners. The view is that the group – the family and so on – is more important than the individual. In return, the group looks after any member at time of need.
How does this work in business? An American is ready to sign the deal now – but the Asian partner wants time to talk to colleagues and ensure a group decision. Pressure versus group consultation.
Why westerners misunderstand indirect communication
In the west people can work together without having a good relationship and direct communication is highly valued. In fact, any indirect communication – going around the bush – creates mistrust in the other or is simply missed by the westerner. They just want the facts – a simple “yes” or “no” will do.
In India there is an overlap between work and personal life and they choose indirect communication because their major concern is to keep the relationship. Being direct such as saying “no” is difficult.
How does this work in business? People in the west keep work and personal lives separate so are less likely to socialise with Asian colleagues – or any colleagues – after work.
Why some hide face, while others save it
Most westerners make a big effort to hide emotions – this varies of course. They see “reason” as more important than “feelings”, so they often keep thoughts to themselves.
In Asia, spontaneous emotional responses can break out and this often surprises westerners. Saving face can become the most important thing.
How does this work in business? An Asian colleague will give or expect some emotional outbursts but is also looking for the following harmony.
Why becoming someone clashes with born something
Westerners value people by what they do or what they have achieved. Performance is king, no matter who you are.
Asian culture generally values people for who they are, so power, title and respect matter greatly, but of course the person should behave according to this status.
How does this work in business? Westerners will often “high five” with everyone including junior colleagues and everyone gets in to share the celebration, while in Asia the leader might receive most of the credit.
Why order dominates the western mind
“Order’ is highly prized in the west. That means doing things on schedule, being punctual, sticking to your plans and a “time is money” view of most things. They react badly to any disturbance to the smooth schedule.
“Time” is viewed differently across Asia, with the past, present and future seen as interwoven and so plans and commitments are more flexible.
How does this work in business? This different view of schedules and time causes relationship breakdowns and can see the end of the deal.
Why westerners feel in control of everything, including climate change
“Control” is big in the west – to the extent they see people as controlling nature or the environment, down to how they work with teams and with the organisation. Conflict is fine so long as the job gets done.
Asian cultures see nature and the environment more as controlling them – events, circumstances are in control more than the team. Conflict is avoided even at the expense of timely delivery.
How does this work in business? Westerners will need to give more reassurance and feedback to their Asian teams and setting clear objectives becomes paramount for both sides.
Adapting via Cross-Cultural Understanding Courses
These cultural differences can have big impacts, but with learning and adaptability, both sides can find they quickly work well, understand more and feel better about how things are going. Cultural understanding provides quick and positive results. Cultural ignorance can be the deal breaker. My “Cross-Culture Understand” training program can set you on the right course – whether an Indian wanting to engage the west, or westerner wanting to engage India.
Stephen Manallack speaking at the Australia India Address
When Australia and India signed a strategic partnership in June, we knew it was “about China” but we did not know was just how much it was about China.
Now we find that the strategic partnership allows for Australia to supply “rare earth” resources to India.
Why is this so strategically important?
Your phone, camera or electric car are completely dependent on key “rare earth” minerals that are processed only in China.
Only a year or so ago, this dependence on China seemed to be OK. Now nations are not so sure, and the Japan, India and Australia collaboration on supply chains is just one of many responses.
Here is how vital these “rare earth” minerals are – there are 0.15 grams of palladium in an iPhone, 472 kilograms of combined rare earths in an F35 fighter jet and four tonnes in a Virginia-class submarine.
But the big one in this group is graphite – it is a key for the lithium-ion batteries in phones, laptops, military and medical equipment and electric cars.
China provides 70 per cent of the world’s exports of graphite and has declared it a “strategic material”.
Graphite illustrates the scale of the world’s dependence on China and you can see how global concerns have now become a mix of commerce and defence. Graphite is in demand because it is the most electrically conductive mineral known.
Australian Resources Minister Keith Pitt expressed the global concerns this way: “It does not matter if you are importing loaves of bread or anything else, if you only have one supply line, that is an increased risk.”
Graphite and other “rare earth” minerals are far from being loaves of bread, for they hold the key to making most of our digital economies and defences work. Australia has lots of graphite – there is one graphite reserve in South Australia of 200 million tonnes.
In addition to the deal with India, Australia has recently announced several deals in the US and there could be more to come.
No wonder the world is keeping an eye on Australia for “rare earth’ minerals, and no wonder India and Australia have firmed up their strategic partnership.
It is easy to see how Australia’s deals on “rare earth” minerals work in conjunction with strategic arrangements – therefore the deals are with the US, Japan, India and parts of Europe.
Everyone is now making a priority of having a diverse source of materials – not just China – and this whole new “minerals rush” is bringing India and Australia closer together.
Into India 