Ias Parliament

INDEX
IDSA AUGUST 2019
1. Appointment of Chief of Defence Staff: A Historic Decision ........................................................ 3
2. CDS - A Pragmatic Blueprint Required for Implementation........................................................ 5
3. Indian Navy’s Annual HADR Exercise .......................................................................................... 7
4. Corporatization of Ordinance Factory Board................................................................................ 8
5. Clarities on ‘No First Use’ ............................................................................................................ 10
6. Continuous Capability Development and Delivery’ or C2D2 ..................................................... 13
7. Will India Ally America ............................................................................................................... 15
8. Deeping Indo- Bhutan Ties ..........................................................................................................17
9. Libra - The New Cryptocurrency ................................................................................................. 18
www.shankariasacademy.com | www.iasparliament.com 2
IDSA AUGUST 2019
What is the system in other countries in
1. APPOINTMENT OF CHIEF OF similar lines?
DEFENCE STAFF: A HISTORIC
 USA - The United States undertook
DECISION
such reforms way back in 1986
Why in news? through the Goldwater-Nichols Act.
Union government has made  The United States Chairman Joint
announcements regarding the creation of the Chiefs of Staff Committee (CJCSC), for
post of Chief of Defence Staff (CDS). example, is extremely powerful, with a
What is the office of the Chief of Defence legislated mandate and sharply
Staff (CDS)? delineated powers.
 The CDS is a high military office that  He is the most senior military officer
oversees and coordinates the working and military adviser to the President.
of the three Services.  The Chiefs of the United States Army,
 It offers seamless tri-service views and Navy, Air Force, Marine Corps, and
single-point advice to the Prime National Guard too, are members of
Minister on long-term defence the JCSC.
planning and management, including  All, including the CJCSC, are four-
manpower, equipment and strategy, star officers, but by statute only the
and joints man ship in operations. CJCSC is designated as the “principal
 The role of the CDS becomes critical military adviser”.
in times of conflict.  China - China implemented such
 The decision to appoint CDS is an integration in 2016 when the seven
important milestone in India‟s quest military regions were recast into five
for complete integration of its defence integrated operational theatre
forces. commands.
 It is seen as a significant step towards  The eastern and western theatre
seamless coordination, better commands are headed by the army
efficiency and greater effectiveness of officers, the southern theatre
the national defence architecture in command by a naval officer, and the
meeting the challenges of the 21st northern and central theatre
century. commands by the air force officers.

 Earlier in 2015, China also
restructured the Second Artillery
Corps into a more robust People‟s
Liberation Army (PLA) Rocket Force
and set up a Strategic Support Force  The senior-most among the three
integrating the space, cyber and Service Chiefs is appointed to head
electronic warfare structures. the CoSC, an office that lapses with
How is idea of CDS emerged in India? the incumbent‟s retirement.

 The post did not further tri-service
 The first proposal for a CDS came
integration, resulting in inefficiency
from the 2000 Kargil Review
and an expensive duplication of
Committee (KRC).
assets.
 The Group of Ministers Task Force
 The creation of CDS and subsidiary
that studied the KRC report proposed
structures will provide an opportunity
to the Cabinet Committee on Security
to re-evaluate the existing defence
that a CDS, a 5-star officer be created.
architecture in an objective manner
 In preparation for the post, the
without service loyalties or individual
government created the Integrated
considerations clouding the
Defence Staff (IDS) in late 2002
judgement.
 It eventually served as the CDS‟s
 This will help cut back infructuous
Secretariat but remained as a yet
spending. Duplication of assets in
another nebulous department within
infrastructure and human resources,
the military establishment.
whether in training or in operational
 It may be recalled that the first and
commands, is a huge drag on the
only tri-service theatre Andaman and
defence budget of which sixty per cent
Nicobar Command (ANC) and the
goes towards salaries and pensions,
Headquarters Integrated Defence Staff
leaving scant little for capital
(HQ IDS) were also the creation of a
acquisition.
BJP-led government in 2001.
 Overall, the institution of CDS would
 The subsequent Naresh Chandra
enable the defence establishment to
Committee Report of 2012 had
adjust to the changing character of
recommended a Permanent
war, given the complex set of threats
Chairman, Chiefs of Staff Committee
and challenges that India faces.
at the same level as the three chiefs.
What lies ahead?
What is the need for CDS after seven
decades of Independence?  It is critical to ensure CDS
constitution, powers, relation to other
 India has had a feeble equivalent
appointments and organizations is
known as the Chairman, Chiefs of
well thought out in order to achieve
Staff Committee (CoSC); but a
seamless integration and overall
toothless office in the manner of its
efficiency in the national defence
structure.
apparatus.
 The effectiveness of the office of the  The panel has its work cut out, not
future CDS will be largely dependent least because the expectations from
on the role and responsibility given to the CDS are daunting.
it.  The strategic community expects him
 At the macro level, the CDS must to be entrusted with the responsibility
become the pivot for implementing for defence planning, resource
joint planning, and training and allocation, bringing about jointness,
operations. prioritization of acquisition
 This must commence from a long- programmes, intelligence gathering,
term perspective that can translate training, logistics, research and
the vision of the Prime Minister into a development, defence manufacturing,
reality. and indigenization, with varying
 It is important to relate this vision to degree of involvement.
the need for integration of the armed  The three service chiefs are expected
forces not only at the apex level but to retain the operational role, but they
also at the field level, where the would be answerable to the CDS, who
benefits of this initiative must become is most likely to have direct control
evident from the very start. over the tri-services strategic, space,
cyber and Special Forces commands.
2. CDS - A PRAGMATIC BLUEPRINT  He is also expected to spearhead
REQUIRED FOR military diplomacy.
IMPLEMENTATION  In a nutshell, he would be responsible
for overall defence preparedness and
What is the issue?
function as the single-point military
The blueprint for the operationalization of
advisor to the government.
CDS would require intensive deliberation
What are the challenges involved in the
and all aspect of its implementation should
creation of CDS?
be addressed.
 Structural Changes - For CDS to be
What are the functions of CDS?
able to discharge all, or even some of,
 Post the announcement of the
these functions, several structural
decision, a high-powered panel has
and functional changes will have to be
been set up by the government under
made.
the National Security Advisor (NSA) to
 This may not pose much of a problem
draw up the charter of duties of the
as this need can be served by
CDS and to implement the decision.
Headquarters Integrated Defence Staff
(HQ IDS), which already exists since
2001.
 Some organizational changes will have  The CDS may also need to interact
to be made in its present set up, this with other organizations such as the
should not lead to excessive Cabinet Committee on Security,
expansion of HQ IDS. Standing Committee on Defence,
 A lean and thin organization, with various other Parliamentary
officer-oriented work culture, will be Committees, Comptroller & Auditor
less prone to bureaucratic lethargy. General, National Security Council
 The functions to be carried out by the Secretariat, Niti Ayog, and Defence
CDS will need to be specified Planning Committee (assuming that it
unambiguously. will continue to function), just to
 Functional Challenges -It will be a mention a few.
challenge to strike the right balance  It would be desirable to lay down
between empowering the CDS protocols and standard operating
sufficiently enough to discharge the procedures for such interactions to
functions assigned to him and ensure smooth functioning of the new
overloading him with an dispensation under a non-obtrusive
unmanageable charter. system of checks and balances, and to
 Depending on what roles are finally pre-empt contretemps over status,
assigned, a number of functions authority and responsibility of various
presently being performed by the functionaries and organizations.
Ministry of Defence (MoD) will have to  Financial commitments -The
be transferred to his jurisdiction. present system of stratified delegation
 The modality of their transfer will of financial powers under the revenue
need to be worked out to prevent segment to the armed forces down the
disruption in work. line, while retaining some powers in
 Depending on what functions are the MoD, is flawed.
finally assigned to the CDS, he would  Full financial powers must be
require to interact not only with MoD delegated to the CDS and other
– which presumably will continue to functionaries in the armed forces.
exist in some truncated form – but  Each competent financial authority
also with several other ministries, must have full financial powers to
including External Affairs and spend the allocated money for
Finance, and also with functionaries authorized activities.
like the Cabinet Secretary, Defence  The scheme for implementation must,
Secretary, and the National Security therefore, require the Ministry of
Advisor. Finance to indicate long-term
availability of funds and the CDS to
draw up defence plans within the relationship with our partner littoral
indicated financial parameters. nations in the Indian Ocean Region
 This could well be the biggest (IOR), in a mutually supportive and
challenge for the CDS as he will have cooperative manner.
to withstand the pressure from the  Navies world over have had to balance
Service Chiefs, as operational their more traditional roles with
commanders, for higher allocation to involvement in irregular security
meet their service-specific missions, which included anti-piracy,
requirement. anti-trafficking, counter-terrorism,
etc. with the most prominent being
3. INDIAN NAVY’S ANNUAL HADR HADR.
EXERCISE What are the highlights of recent HADR
Why in news? exercise?
The Indian Navy recently conducted the  The Annual Joint HADR series of
third „Annual Joint Humanitarian Assistance exercises, conducted by the Indian
and Disaster Relief (HADR) Exercise‟ at Navy, also help in proactively
Chennai. preparing participating nations with
tools for developing standard
What is HADR Exercise?
operating procedures (SOPs),
 The HADR series of exercises are
streamlining interoperability and
conducted by the Indian Navy with a
practicing procedures for collaborative
view to “develop interoperability in
participation when necessary.
terms of doctrines, procedures,
 India‟s recent HADR exercise was
organizational and logistic systems
conducted under the theme „Cyclone
and operational processes, so as to
and Urban Flooding Relief
promote the development of regional
Operations‟.
naval capacities for speedy,
 The exercise saw participation by
responsive and effective HADR
multiple central and state agencies
throughout the IOR”.
and included a seminar, table top
 This is enunciated in the Charter of
exercise, exhibition, skill
the Indian Ocean Naval Symposium
demonstration and final exercise in
(IONS), of which India is the Chair for
the coastal districts of Tamil Nadu
the IONS Working Group on HADR.
and Puducherry.
 This is also in consonance with Prime
 It also saw participation by „Naval
Minister‟s vision of „Security and
Observers‟ from eight countries, viz.
Growth for All in the Region (SAGAR)‟,
Sri Lanka, Bangladesh, Seychelles,
which envisions strengthening
Australia, Kenya, Singapore, Somalia,
Nepal and also the Association of operations is information sharing, the
Southeast Asian Nations (ASEAN) lack of which leads to poor
Secretariat. coordination among relief agencies.
Why IOR is chosen for HADR exercise?  Also, having incomplete perceptions of
a disaster situation can lead to
 The IOR is one of the most disaster
inefficient responses.
prone regions in the world.
 Towards mitigating this, the Indian
 This coupled with the fact that the
Navy launched the Information Fusion
maritime capacities of most littoral
Centre – Indian Ocean Region (IFC-
states are not strong enough to
IOR) in 2018 at Gurugram in
individually address these challenges,
Haryana, with a view to build a
necessitates collaborative solutions for
common coherent maritime situation
disaster relief among like-minded
picture and to act as a maritime
nations in the IOR.
information hub for the IOR.
 The existing maritime cooperative
 The information exchange at the IFC-
initiatives in IOR, like the Indian
IOR is being initially undertaken by
Ocean Rim Association (IORA) and
virtual means, using telephone calls,
IONS, have shown great promise and
faxes, emails and video conferencing
are being actively engaged by the
over internet.
Indian Navy.
 Subsequently, to enable better
 Further, the Bay of Bengal Initiative
interconnection, quicker analysis of
for Multispectral Technical and
information, and to provide timely
Economic Cooperation (BIMSTEC),
inputs, the IFC-IOR would host liaison
another important construct in the
officers from partner countries.
IOR, has also identified „Environment
 This would ensure better liaison with
and Disaster Management‟ as one of
partner governments and agencies of
the high priority areas of coordination
the effected region, ensuring a
and cooperation for BIMSTEC partner
coordinated response to a HADR
nations.
situation.
 The Indian Navy has over the years
gained considerable experience in
4. CORPORATIZATION OF
rendering HADR assistance to the IOR
ORDINANCE FACTORY BOARD
littorals.
Why in news?
What makes India a leader in HADR in
IOR? Ministry of Defence (MoD) has floated a
proposal to corporatize the Kolkata-based
 One of the main challenges towards
Ordnance Factory Board (OFB).
effective collaboration in HADR
What is government’s plan on OFB from the supplies made to the armed
corporatization? forces, eliminating a major incentive
 Kolkata OFB controls 41 Ordnance to innovate and improve efficiency.
Factories (OFs) and 16 other  Nearly 75-80 per cent of its
associated entities that include nine production comes from technology
training institutes, four regional developed outside the country.
controllers of safety and three  The lack of focus on R&D coupled

regional marketing centers. with delayed execution of orders, low
 Over the last two centuries, it has labour productivity, and meagre
been a key supplier of a wide variety exports have frustrated its key
of products ranging from tanks and stakeholders, especially the army
armored vehicles to artillery guns, which accounts for nearly 80 per cent
small arms and ammunitions, of its supplies.
besides various troop comfort items.  The army is also concerned about the
 With its origin dating back to the poor quality of the OFB products.
British Raj, the OFB is the oldest as  Ineffective working model -OFB‟s
well as the largest departmentally- cost-plus approach to production,
run organization of the Indian which is globally accepted as
Government. inherently inefficient, makes the
 The corporatization of the OFB, an armed forces‟ procurement budget
idea which dates back to the early expensive and puts an extra burden
2000s, is a much-needed reform to on the defence budget.
revitalize the organization which has  The private sector companies, having
lost much of its relevance due to its defence industrial licenses, are in fact
inherent constraints, poor producing more than 41 OFs put
performance, and the entry of private together.
sector companies in defence  The rapid growth of the private sector,
production. which is likely to be accelerated
further given the wide range of
What is the need for corporatization?
reforms undertaken by the
 As an organization the OFB has been
government under the Make in India
constrained by a host of factors that
initiative, will further push the OFB
has forced the organization to look
to the margins unless drastic reforms
inward and perform below its
are undertaken at the earliest.
potential.
 Limited Autonomy - Being an
 Lack of Innovation -As a
attached office of the MoD, major
departmentally-run organization, the
decisions pertaining to finance,
OFB is barred from making profit
human resource, research and  As a DPSU, and with 100 per cent
development (R&D), technology tie- equity stake by the central
ups and modernization of plants and government, the OFB will have far
machineries are taken outside the greater autonomy in decision making.
organization.  It will be managed by its own board of
 The highly bureaucratic decision- directors; and subject to broad
making process of the external guidelines issued by the government,
agencies responsible for the OFB‟s it can also make its own
functioning and wellbeing, and their financial/investment plans, form joint
propensity to adhere to the rules and ventures/subsidiaries and articulate
regulations rather than the R&D roadmap without much
outcomes, has made the organization interference from external agencies.
risk-averse with little incentive to  More importantly, as a corporate
think out of the box. entity with a stable leadership, the
 Poor management - OFB‟s location OFB will be in a much better position
far away from Delhi and frequent to respond to the market dynamics
change of its leadership have not and face the competition effectively.
been helpful.  With a production of over Rs. 12,800
 Suffice to mention that in the past 10 crores, the corporatized OFB may
years the OFB has seen as many as also subsequently qualify for the
15 chairmen. „Navratna‟ status which will provide it
 This is in stark contrast to the with even greater flexibility in
relatively stable minimum tenure of financial decision making.
two years granted to the heads of the
central public sector enterprises. 5. CLARITIES ON ‘NO FIRST USE’
How Corporatization of OFB will address Why in news?
existing issues? Union Defence Minister indicated that NFU
 The corporatization of the OFB will is not „cast in stone‟ and can be altered if the
turn it into a Defence Public Sector circumstances demand so.
Undertaking (DPSU) under the What is No First Use in Nuclear Doctrine?
administrative control of the
 After the 1998 nuclear test when
Department of Defence Production
India declared itself a nuclear weapon
(DDP) of the MoD.
state, it also enunciated a doctrine of
 This is far from privatizing the
„no first use‟ of nuclear weapons.
organization as some would seem to
 Indian decision-makers categorically
suggest.
rejected the idea of initiating the use
of nuclear weapons in any conflict nuclear threats so as to contain
scenario. India‟s reaction to terrorism and
 According to official statements concurrently invite international
“Nuclear weapons will only be used in attention.
retaliation against a nuclear attack on  In this regard Union Defence Minister
Indian territory or on Indian forces recentlyindicated that NFU is not „cast
anywhere”. in stone‟ and can be altered if the
 However, the doctrine made it clear circumstances demand so, is the
that India‟s “nuclear retaliation to a latest reflection on NFU-centric
nuclear attack strike will be massive doctrine not being robust enough.
and designed to inflict unacceptable  He was echoing the doctrine (or some
damage”. of its elements) will be “a dynamic
 NFU reflects India‟s moralistic ethos of concept related to the strategic
a peaceful nation that uses its nuclear environment, technological
weapons responsibly even if the imperatives and the needs of national
posture is inconsistent with the threat security,”
environment, denoted by two nuclear-  Implying the imperativeness of review
armed rivals with characteristically and upgradation.
different postures. What are the challenges for India in
What are the dilemmas in India’s NFU? initial use of Nukes?
 A commitment to not be the first to  First use of nuclear weapons would

use a nuclear weapon in a conflict has require a massive increase in India‟s
long been India‟s stated policy. nuclear delivery capabilities.
 Pakistan, by contrast, has openly  There is yet no evidence suggesting
threatened India with the use of that India‟s missile production has
nuclear weapons on multiple increased dramatically in recent
occasions beginning from the time the times.
two nations were not even  Moreover, India is yet to induct the
acknowledged nuclear powers. Multiple Re-entry Vehicle (MRV)
 The major thrust of any Indian technology in its missiles, which is
nuclear strategic communications fundamental to eliminating hardened
plan should be aimed at downplaying nuclear targets.
the nuclear factor in the political and  Finally, India‟s intelligence,
strategic equation with China and surveillance and reconnaissance (ISR)
Pakistan. infrastructure capabilities would have
 Pakistan‟s case there is a continuous to be augmented to such a level where
attempt to increase the salience of
India is confident of taking out most What should be done?
of its adversary‟s arsenal.  The main advantage of NFU is that it
What measures are need to enhance minimizes the probability of nuclear
India’s nuke readiness? use.
 India would have to alter significantly  This is so because it enhances the
its nuclear alerting routine. India‟s possibility of containing the crisis
operational plans for its nuclear forces before the point of no return when
involve a four-stage process. miscommunications, misjudgment,
 Nuclear alerting would start at the misperception or the fog of war may
first hints of a crisis where decision- force either power to go first.
makers foresee possible military  But the irony about nuclear doctrines
escalation. is that the NFU posture, which is
 This would entail assembly of nuclear supposed to be an exemplar of
warheads and trigger mechanisms peaceful intentions, has been
into nuclear weapons. scrutinized more often than the more
 The second stage involves dispersal of belligerent versions.
weapons and delivery systems to pre-  Nuclear doctrines and postures are
determined launch positions. dynamic processes that evolve with
 The third stage would involve mating the security environment, and, hence,
of weapons with delivery platforms. can neither be treated as sacrosanct
 The last and final stage devolves the policies nor equated with
control of nuclear weapons from the characteristics like „responsibility‟,

especially since only two (India,
scientific enclave to the military for
China) of the nine nuclear-armed
their eventual use.
states adopt defensive postures like
 Canisterization of missiles has
NFU.
combined the dispersal and mating of
weapons into a single step, cutting  All doctrines need periodic reviews
down the effort required for achieving and India‟s case is no exception.
operational readiness.  Thus Indian policymakers need to
 Even then, this model does not review the nation‟s nuclear doctrine,
support first use of nuclear weapons and while doing so they should be
as it gives ample warning to the cognizant of the costs involved.
adversary of India‟s intentions.

 There is certainly a need for a
reappraisal of India‟s nuclear
doctrine.
6. CONTINUOUS CAPABILITY threats to the United States and its
DEVELOPMENT AND DELIVERY’ Allies.
OR C2D2  The model aims at six monthly
delivery periodicity for bunching and
Why in news?
releasing software and hardware
U.S has proposed an approach tofor frequent
upgrades/updates.
upgrades and updates of the aircraft F-35.
 It is important to note that the
What is C2D2 scheme? production of F-35 is intended to be in
 Being an avionic intensive aircraft, the excess of 3000 aircraft against the
F-35 is likely to require frequent demands of the US and its programme
incremental improvements and partner nations.
upgrade of its software as well as  Serial production is being done in
hardware due to rapidly advancing blocks as is the prevailing practice in
technology. combat aircraft development and
 To cope with the need, US came up production.
with a new „agile approach‟ – officially  The F-35 Program is working to
termed as „Continuous Capability transition to C2D2 faster, more
Development and Delivery‟ or C2D2. flexibly, and more affordably by
 The new acquisition model involves breaking down and delivering in
the parallel development of multiple smaller increments, ultimately
futuristic technologies for the F-35. reducing cost of doing business.
 It accommodates the continuous  C2D2 is thus considered critical for
release of new upgrades in small further development of the F-35, to
increments instead of packaging them keep the systems updated in line with
together with other capabilities (as technological advancements and
one big drop), to be released in a operational requirements.
longer time frame, a process probably What are the concerns with the model?
more acceptable to the finance and
 Though not stated explicitly so far,
acquisition office due to ease of
indications are that the C2D2 model
business and audit.
will include regular updates and
What is the significance of C2D2? upgrades of old aircraft also, besides
 Continuous Capability Development being incorporated at the production
and Delivery (C2D2), provides timely, level itself in the newer aircraft.
affordable, incremental warfighting  This means frequently changing the
capability improvements to maintain design goalposts at the production
air dominance against evolving level.
 However, the six-monthly technology  Probably, defence acquisition in such
bunching and delivery period is cases would have to develop similar
considered very short by the approaches as well as methods, since
Pentagon, which has raised concerns all over the world the traditional
about certain aspects of the C2D2 defence acquisition models are falling
model. behind in terms of capabilities to meet
 Even with advanced technology and security requirements.
faster development of What are the takeaways for India in this
equipment/systems, the normal regard?
periodicity is expected to be a
 The Indian military is also embracing
minimum two to three years.
advanced technology at an increasing
 The Pentagon has criticized the C2D2
pace for capability building.
model mainly on the grounds of likely
 Systems, equipment, weapons and
problems associated with
platforms being inducted are
1. Upgrading of the earlier block
increasingly infused and embedded
aircraft.
with sophisticated electronics,
2. Insufficient time for testing and
materials, sensors and software.
evaluation of upgrades and
 Within the next decade or so, many
updates.
more advanced systems acquisitions
3. Short periodicity for the other
are likely to take place for capability
needed support systems and
building against adversaries.
modules, like logistics module,
 The rapid pace of their military
mission data module, training
modernization would require India to
simulators and others, to be
go for faster capability augmentation.
delivered and operationalized in
 The systems that India is acquiring or
similar timeframes.
seeks to acquire in future would
 In spite of the criticism, the US
require frequent upgradation and
Department of the Air Force seems to
updating.
be going ahead with the
 At times, there may be a need for
implementation of C2D2.
change in the QRs too, particularly if
 In fact, most of the military systems at
any better cutting-edge technology
the global level are likely to face
emerges during the process of
similar challenges – need for agile and
acquisition.
incremental upgrades and updates -
 Therefore, an agile acquisition
as weapon systems and equipment get
mechanism may have to be devised
increasingly technology infused.
for the Indian armed forces too.
 India‟s defence acquisition process is  And they face challenges to their
notably slow and is unlikely to be able security and interests from the same
to keep pace with future acquisition source, namely, China.
requirements.  But even when they agreed in the late
 Thus the agile acquisition or C2D2 1950s and the first half of the 1960s
model currently under adoption by about China as a source of threat,
the US for its F-35 aircraft is likely to they failed to forge an alliance due to
become a necessity for acquisitions in various factors including their
future, as disruptive defence inability to come to an understanding
technologies will continue to affect on how India should tackle the threat
military systems across the world. posed by China.
 For the envisaged rapid modernization  With respect to shared interests, India
of the Indian armed forces, a similar does share with America an interest in
approach would be needed sooner or promoting a rules-based liberal order.
later.  It also shares with America an interest
in preventing Chinese hegemony in
7. WILL INDIA ALLY AMERICA Asia, but would also ultimately prefer
What is the issue? a multipolar Asia rather than

reinforce and perpetuate the US
 India has committed to the principle
primacy.
of strategic autonomy.
 All in all, while there may not be a
 There are speculations that India
complete harmony of interests
won‟t deepen its alliance with USA.
between the two countries, there is a
What is the brief history of Indo-US degree of alignment in their positions
alliance? when it comes to their respective
 India‟s defence relationship with issues in conflict with China.
America has steadily deepened since Why India lacks interest in American
the mid-2000s. Alliance?
 An alignment of interests and ideology
 Restrictive And Ahistorical
already exists between India and the
Definition Of Alliance - Analysts and
United States (US).
scholars who argue that India will not
 They are both democracies, which are
enter into an alliance with America
moreover committed to a liberal,
have in mind a restrictive and
rules-based order in the Indo-Pacific
ahistorical definition of what an
region.
alliance is.
 An alliance, in their view, ought to
possess three features:
1) institutionalized military  China‟s development of infrastructure
cooperation between the parties, in Tibet has considerably enhanced its
2) A firm commitment to use force ability to mobilize a greater number of
under defined conditions, and forces in a faster timeframe.
3) A high level of synchronization of  However, China‟s continued
foreign policy positions. preoccupation with security
 In other words, an alliance must challenges along its eastern seaboard
resemble the type of relationship that and the constraints imposed by
America fostered with its Asian and terrain, weather and distance in
European Asian allies during the Cold projecting power through and from
War. Tibet limit the scope and intensity of
 This is, however, a narrow definition the military challenge that China can
that excludes other types of inter- generate against India.
state agreements dealing with the  That means India is unlikely to need
provision of military assistance. direct military assistance from
 According to India‟s 1971 Treaty of America or any other potential ally
Friendship with the Soviet Union during a limited India-China war.
squarely falls within the ambit of the  Instead India might need diplomatic
following definition of alliance “a support including in the United
formal agreement among a limited Nations Security Council, continued
number of countries concerning the supply of weapons and spares,
conditions under which they will or intelligence about the adversary‟s
will not employ military force”. military dispositions, etc. from USA.
What factors likely to influence India’s  While diplomatic and limited material
alliance with America? support might suffice in the context of
a limited India-China border conflict,
 There is no denying the fact that
India‟s military needs and dependence
India‟s threat perception vis-à-vis
on allies are bound to be considerably
China has not diminished in any
higher in the event of a two-front war,
significant manner in recent years.
irrespective of whether it is China or
 In fact, there is a certain degree of
Pakistan that joins the fray.
consensus among analysts that the
 While the scope and intensity of
threat posed by China to India‟s
Chinese military operations would
security and interests is likely to
probably remain the same because of
increase in the years to come as
the geopolitical and geographical
China‟s power grows, its ambitions
constraints highlighted earlier, the
expand, and its ability to project
territorial and security consequences
power beyond its borders increases.
of fighting China in a two-front war the Indian Union. Bhutan chose to
are likely to be rather high. remain independent.
 America does have the capacity to  Amid growing security concern over
provide greater military support for communist China, Indo-Bhutan
India under these circumstances. Treaty was signed in August, 1949.
 Given Russia‟s increasing dependence  This is known as Treaty of Peace and
upon and growing partnership with Friendship and was signed in
China, it is no longer a likely alternate Darjeeling. It is continuation of Anglo-
alliance partner for India. Bhutanese Treaty of 1910.
 In effect, India‟s military dependence  However, in February, 2007, it was
on America is likely to be higher in the revised, which clarifies Bhutan‟s
event of a two-front war with China. status as an independent and
sovereign nation.
8. DEEPING INDO- BHUTAN TIES What are the highlights of the recent
Why in news? visit?
Indian Prime Minister Narendra Modi made a  Indo-Bhutan ties are dominated by
two day official visit to Bhutan. Infra projects like Highways (build by
What is the historic account of Indo- Border Roads Organization) and Hydel
Bhutan relations? Power Projects.

 Recently India and Bhutan deepened
 The treaty of Punakha between India
their energy partnership with India
and Bhutan was the agreement signed
inaugurating the 720 megawatts (MW)
on 8th January, 1910 at Punakha
Mangdechhu hydropower project,
Dzong.
which underlined the government‟s
 There was some prior working
“neighborhood first” policy.
agreement between Bhutan and
 As part of India‟s economic diplomacy,
British India, signed in 1865.
including efforts to exert strategic
 Under the Treaty of Punakha, Britain
influence in its neighborhood with
guaranteed Bhutan‟s independence
infrastructure development, New
and took control of Bhutanese foreign
Delhi is helping Bhutan build
relations.
10,000MW of hydropower with
 It also affirmed Bhutanese
concessional finance, and an overall
independence as one of the few Asian
investment of about $10 billion.
kingdoms, never conquered by a
 Indian PM outlined a new blueprint
regional or colonial power
for cooperation between India and
 Bhutan was given an option by the
Bhutan, identifying space, education,
British to remain independent or join
and health as areas that would add a
fresh dimension to ties dominated so relationship that has maintained its
far by cooperation in the hydel power consistency for the past many decades
sector.  Bhutan‟s unequivocal support to India
What are Prime areas of co-operation? on strategic issues has meant a lot to
India on the international stage and at
 India aims to diversify India‟s
the United Nations
partnership with the Bhutan in
 It comes in the backdrop of efforts by
enhanced trade to linkages in space,
Beijing to seek support from
health and education.
Thimphu, and calls within sections of
 Education - Both nations unveiled e-
the Bhutanese political establishment
plaque of the interconnection between
for stronger diplomatic ties with
India‟s National Knowledge Network
China, and a shift away from its hydel
and Bhutan‟s Druk Research and
power ties with India.
Education Network.
 Space and Communication -India
 Indian delegation has invited more
Bhutan jointly inaugurated the
students to visit India for studies in
Ground Earth Station and SATCOM
traditional areas such as Buddhism
network, developed with assistance
and newer areas like space research,
from ISRO for utilization of South Asia
while speaking to students at the
Satellite in Bhutan.
Royal University of Bhutan.
 Committed to facilitate Bhutan‟s
 Economic -On increasing the
development through the use of space
currency swap limit for Bhutan under
technology, India also plans to
the SAARC currency swap framework,
enhance the communication, public
Modi said India‟s approach is
broadcasting and disaster
“positive”, adding that an additional
management coverage in Bhutan.
USD 100 million will be available to
Bhutan under a standby swap
9. LIBRA - THE NEW
arrangement to meet the foreign
CRYPTOCURRENCY
exchange requirement.
 India recently has launched Rupay Why in news?
card for making transactions in Facebook has announced a it is working on

Bhutan. new crypto currency called Libra, which will
 Strategic Areas - Open borders, close be launched in 2020.
alignment and consultation on foreign What is facebook’s plan on Libra?
policy, and regular, open
 A cryptocurrency is a Peer-to-Peer
communications on all strategic
Electronic Cash System without an
issues are the hallmark of the
intermediary such as a central bank.
 Cryptocurrencies use secure  However, the system will be public
encryption algorithms and privacy- such that the transactions, when
enhancing tools for safe and private required, can be scrutinized by
value transactions, without any international regulators and law
authority exercising control over it. enforcement agencies.
 Libra Coin, a Facebook-based  The Libra coin will be launched within
cryptocurrency that is likely to be a permissioned block chain, because
unveiled in 2020, it is likely to have a of the governance structure under the
centralized system, to begin with. authority of Libra Association.
 Face book has an ambition to develop  Besides Facebook, there are 27 other
counter-trends in the form of founding members in the Libra
encryption and cryptocurrency that Association - each having invested at
will facilitate its transition from a least US$ 10 million - sharing control
centralized system to a decentralizing of the Libra coin.
force.  Each member gets a single vote on the
What are the significances of the Libra Libra Association Council, making it
coin? extremely difficult for Facebook to
monopolize the coin's governance.
 Libra is expected to be the new stable
 The Libra Association will also have
global currency which will allow the
the authority to determine the value of
2.38 billion Facebook users to shop
a Libra coin.
and transfer money overseas while
 Libra will be a closed-loop system
paying negligible transaction fees.
where the consumer can only buy and
 Notably, Libra can set the standards
sell products that are available on the
of a stable coin by virtue of being
Facebook marketplace (introduced in
pegged to a basket of sovereign
late 2016) and its associated apps.
currencies like the dollar, pound,
 This would prevent dangerous
euro, Swiss franc and yen.
transactions including illegal trade in
 This is likely to insulate it from high
drugs and weapons, thereby
volatility in the exchange rates of the
overcoming the tainted reputation of
coin.
other cryptocurrencies which have
 The Libra block chain will be
minimal checks and balances to
pseudonymous and not an
prevent such transactions from being
anonymous system.
carried out.
 It allows users to interact and
transact with each other, but not with What is Libra’s plan in India?
their real-life accounts.  According to recent reports, Libra will

not be launched in India due to the
current Indian regulation of not  Facebook seeks an opportunity to
endorsing private cryptocurrencies. grow through the accretion of Libra in
 A draft bill, proposing a 10-year jail India, but the onset of government
term for holding, selling or dealing in regulations on cryptocurrencies could
cryptocurrencies, has muddied the impact the future of the coin.
waters for crypto-traders in India. What should be done?
 Termed as the “Banning of
 For Libra to gain credence, it would
Cryptocurrency and Regulation of
need to ensure secure and efficient
Official Digital Currency Bill 2019”,
person-to-person fund transfer on the
the proposed draft bill could halt the
Facebook platform.
future of cryptocurrencies in India.
 It would also need to address India‟s
 After India's central bank, the Reserve
regulatory concerns by assuring the
Bank of India (RBI), issued a circular
legitimacy of the project and working
in April 2018 instructing banks to
in tandem with the government to
withdraw support in dealing with any
bring about changes in the
cryptocurrency transactions, the
cryptocurrency trading laws of the
Supreme Court of India too refused to
country.
put a stay on the circular after a
public interest litigation (PIL) was filed
against the RBI's decision.
 The size of the Indian market,
however, offers enormous business
opportunities for Libra.

Ias Parliament

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Ias Parliament

Caricato da

Copyright:

Formati disponibili

INDEX

IDSA AUGUST 2019

1. Appointment of Chief of Defence Staff: A Historic Decision ........................................................ 3

2. CDS - A Pragmatic Blueprint Required for Implementation........................................................ 5

3. Indian Navy’s Annual HADR Exercise .......................................................................................... 7

4. Corporatization of Ordinance Factory Board................................................................................ 8

5. Clarities on ‘No First Use’ ............................................................................................................ 10

6. Continuous Capability Development and Delivery’ or C2D2 ..................................................... 13

7. Will India Ally America ............................................................................................................... 15

8. Deeping Indo- Bhutan Ties ..........................................................................................................17

9. Libra - The New Cryptocurrency ................................................................................................. 18

of the three Services.  The Chiefs of the United States Army,

single-point advice to the Prime National Guard too, are members of

Minister on long-term defence the JCSC.

and joints man ship in operations. CJCSC is designated as the “principal

 The role of the CDS becomes critical military adviser”.

in times of conflict.  China - China implemented such

 The decision to appoint CDS is an integration in 2016 when the seven

for complete integration of its defence integrated operational theatre

 It is seen as a significant step towards  The eastern and western theatre

seamless coordination, better commands are headed by the army

efficiency and greater effectiveness of officers, the southern theatre

the national defence architecture in command by a naval officer, and the

meeting the challenges of the 21st northern and central theatre

century. commands by the air force officers.

How is idea of CDS emerged in India? the incumbent‟s retirement.

 Kolkata OFB controls 41 Ordnance to innovate and improve efficiency.

Factories (OFs) and 16 other  Nearly 75-80 per cent of its

associated entities that include nine production comes from technology

training institutes, four regional developed outside the country.

controllers of safety and three  The lack of focus on R&D coupled

of products ranging from tanks and stakeholders, especially the army

small arms and ammunitions, of its supplies.

 The corporatization of the OFB, an armed forces‟ procurement budget

2000s, is a much-needed reform to on the defence budget.

 A commitment to not be the first to  First use of nuclear weapons would

 India would have to alter significantly  This is so because it enhances the

its nuclear alerting routine. India‟s possibility of containing the crisis

involve a four-stage process. miscommunications, misjudgment,

first hints of a crisis where decision- force either power to go first.

escalation. is that the NFU posture, which is

 This would entail assembly of nuclear supposed to be an exemplar of

warheads and trigger mechanisms peaceful intentions, has been

into nuclear weapons. scrutinized more often than the more

 The second stage involves dispersal of belligerent versions.

determined launch positions. dynamic processes that evolve with

of weapons with delivery platforms. can neither be treated as sacrosanct

control of nuclear weapons from the characteristics like „responsibility‟,

operational readiness.  Thus Indian policymakers need to

as it gives ample warning to the cognizant of the costs involved.

adversary of India‟s intentions.

What is the issue? a multipolar Asia rather than

Bhutan relations? Power Projects.

card for making transactions in Facebook has announced a it is working on

their real-life accounts.  According to recent reports, Libra will

Potrebbero piacerti anche