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No ordinary deal

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  • Raja Menon

    It is true that today China is outstripping India in economic growth, albeit without political corrections. But by 2025, when and if India’s youth bulge is gainfully employed, Indian growth rates are expected to catch up and surpass the dragon. Indians with their notions of Eastern values, democracy and inclusive growth are genuinely prepared to consider the 21st century as the common Asian century. But look at the Chinese supplied missile sites around Sargodha, that target Delhi, or the huge underground ballistic missile complexes of China’s 414 missile brigade at Delingha in the Tibetan Autonomous Region, and one can see that the goodwill that the Indians show their Asian neighbours are only looked upon with cynical amusement in Beijing. The BJP knows all this only too well. They have been in government, have had access to classified analyses and pioneered the country’s overt nuclear capability. But their cynicism has been in view too, that when they were briefed by the government on how India’s strategic capability was being built up, and not compromised by the nuclear deal, they have responded with lengthy newspaper articles on how cheaper electricity could be made from coal, and by joining hands with the communists to oppose a deal which is clearly in the national interest.

    The technology denial consequences of the deal not going through are even more serious. Since the Americans strengthened their Atomic Energy Act in 1978 with the NNPA, they followed up with the Export Administration Act in 1979, which was re-validated in 2004. As a result no American company has replied to an Indian hi-tech tender for 29 years. The consequences have been calamitous. Clever Indian scientists have often used Russian alternates or acquired European equivalents, at unreasonable cost. In 1992 in the high-tech electronic warfare field, European and Indian PSUs quoted Rs 23 crore for an EW set for the Navy. At the time the most advanced set in India was an American one imported in the German HDW submarine with an obviously fiddled End-User certificate. That set was acquired for Rs 10 crore. Fortunately, the Israelis entered the market at Rs 11 crore and saved the day. The absence of American competition in the high technology arena will cripple our rate of advance. The Deal seeks to give India a level playing field and it is unimaginable why politics should intrude into what is clearly a matter of technology, costs and national security.

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