Business Standard
Friday, Sep 03, 2010
Sponsored by     
drived banner
drived banner
  Advanced Search
Feedback | RSS
Content Guide
Follow us on  
||||Economy & Policy||||| 
 Section Home | News Now | Today's Paper | Features & Analysis | Politics & Public Affairs | Q&A | Columnists | BS Says
Home > Economy & Policy Live Markets | Smart Portfolios II | Commodities
  Search:

Maldives, Mauritius new centres of Sino-Indian rivalry
Jyoti Malhotra / New Delhi September 11, 2009, 0:43 IST

For a change, India is responding swiftly to the intended Chinese encroachment in a region it has seen as its traditional sphere of influence.

The Indian Ocean is becoming the latest theatre of Sino-Indian rivalry, with China straining to breach India’s old intimacy with island nations like the Maldives and Mauritius and sparking a diplomatic battle between the two countries.

For a change, India is responding swiftly to the intended Chinese encroachment in a region it has seen as its traditional sphere of influence, ramping up engagement on the economic and security front and hoping these new initiatives will deter these countries from cosying up to China.

The Maldives, in fact, is turning out to be India’s most exciting new partner in South Asia, with Prime Minister Manmohan Singh inviting Maldivian President Mohammed Nasheed to be the chief guest at a climate change conference India is hosting on October 22-23, so as to get support from small island states like the Maldives in the run-up to the likely bruising battle against the western world at the Copenhagen conference on climate change in December.

Only a few weeks ago, Defence Minister A K Antony travelled to Male to assure Nasheed that India would be happy to supply the Maldivian archipelago with all its defence and security needs, ranging from radars and helicopters to training its small army as well as helping link the hundreds of islands with mobile phone connectivity.

Meanwhile in Mauritius, since Chinese President Hu Jintao ended his four-nation Africa trip in Port Louis in February, India has watched with a mixture of incredulity and admiration the manner in which China is pumping $730 million into the Shanxi Tianli Enterprises business park which will soon be ready to launch a variety of Chinese industries (especially coking coal and iron & steel) in the region.

China wants to use Mauritius’ highly developed financial services industry and literate population (per capita income $12,000) as a gateway to Africa. The Shanxi Tianli economic zone — an ambitious project that includes three hotels as well as a 300-bed hospital — is part of Beijing’s far-reaching vision that aims at spending $10 billion in several such economic parks all over Africa.

It’s clear that officials across the Indian government — in the ministries of External Affairs, Commerce and Finance — marvel at the speed as well as abandon with which Beijing has moved to create opportunity and cement its national interest in the Indian Ocean.

“The Chinese are conscious of the fact that in a worldwide recession, their economy is doing so well that they’ve become bankers to the world. Moreover, the Chinese Communist Party seems to have decided that China should assert itself globally,” said a top-level government official on the condition of anonymity.

Officials point out that in Mauritius, India with $1 billion is the second largest investor only second to the UK and that $1 billion annual trade includes the supply of all of Mauritius’ petroleum needs. China’s trade with Mauritius remains $323 million, although it excludes the $200-million airport expansion as well as several lines of credit.

“India’s engagement with Mauritius remains active and vibrant,” said one official, pointing out that Mauritian PM Navinchandra Ramgoolam had visited India every year for the last three years.

And although China’s spotlight on Mauritius and other countries on the Indian Ocean rim — including its desire to secure berthing facilities and seek enhanced access to ports — is widely believed to be a reflection of its need to continually create new economic opportunities so as to feed its massive manufacturing industry at home, in Mauritius, security-obsessed India has responded by gifting one helicopter to the Mauritian coastal guard.

Meanwhile, New Delhi remains reassured that the 850,000-strong community of Indian origin in Mauritius will continue to play a major role in favourably tilting the balance, but China, by opening a cultural centre, has put India on notice in this area as well.

“Mauritius has been an old friend of India,” an Africa-watcher said on condition of anonymity, adding, “but China is now changing all that.”

Back in the Maldives, President Nasheed told Business Standard that his government, while “hugely appreciating the big things” India was sending his country’s way — including a zero-interest $100-million loan to pay salaries upon finding that the Maldivian treasury was nearly empty when elections took place in October 2008, enhancing SBI’s loan cap to Rs 820 crore, an Exim bank loan, support at the World Bank for loan facilities to the Maldives, as well as a hydrographic survey to measure the country’s continental shelf in dispute with Sri Lanka — “it was the small things, like Indian doctors and teachers working in the Maldives, that matter a great deal to the Maldivians.”

As for India’s security concerns, Nasheed’s government is believed to have assured both Antony as well as India’s top strategic triumvirate who visited Male in July — National Security Adviser M K Narayanan, then foreign secretary Shivshanker Menon and then defence secretary Vijay Singh — that the Maldives would be sensitive to India’s defence needs.

The strategic triumvirate had pointed out that ever since Rajiv Gandhi’s government had sent troops to quell an incipient rebellion against the former dictator Maumoon Abdul Gayoom in 1988, Gayoom had kept Indian interests topmost in mind — even as he crushed human rights at home — irrespective of any passing thoughts of flirting with any of the other major powers.

The Maldivians understood the message. So when Maldivian Foreign Minister Ahmed Shaheed visited India in July, MEA sources said, he reiterated Male’s policy : “India first.”

Arrow Other Stories     
- Markets: A day of quiet consolidation
- RBI study doubts efficacy of price data for monetary policy
- Mahindra & Mahindra to launch passenger vehicle variant
- Organic industry targets Rs 4,000 cr by 2012
- Kotak Life launches 2 new Ulips
More  
  Read Business news in 
   Banking Solutions that are a perfect fit. Know more
   Your 1st Step in Share markets with Sharekhan!
   Click here to visit Business Standard SME Buzz
   Required telecallers in Mumbai full time or part time...
  Follow the ups and downs of your investments. Try our new Portfolio Tracker
   5lacs to invest? Contact Sharekhan's PMS Advisor
  Discover an economical and cost effective way to market your products and services
  GiftwithLove.com: Same Day Delivery of Flowers / Cake / Gift in India
  Download the E-book on the Future of Business Intelligence
Markets Update Powered by   
   Smart Moves More 
 CompanyLast (Rs)  Remarks
 Tata Power Company Ltd1,258.70   Rises on bagging project in Indonesia
 Adani Power Ltd133.20   Dips on request for discounted power
 AGC Networks Ltd262.35   Soars on acquisition completion by Essar Group
 UCO Bank118.10   At a lifetime high on PCR hopes
   Top Gainers
Company Last (Rs) Gain (%)
JP Associates 114.70 4.32 
Sterlite Inds. 160.60 2.59 
Tata Power Co. 1,258.70 1.67 
 
   Top Losers
Company Last (Rs) Gain (%)
Hero Honda Motor 1,699.75 -3.35 
TCS 843.55 -1.59 
B H E L 2,397.25 -1.07 
   Expert Speaks
Priya
'We like retail, education, IT and media cos'
Vaibhav Sanghavi, Director – Equities, Ambit Capital
   Live Commentary
- The Sensex finally ended at 18,238 up 32 points and Nifty ended at 5486 up 14 points
- Sensex losers : Hero Honda, TCS and BHEL
   Discussion Board / User Comments    
Display Name  Email-Id  
Post your comment
Stephen
Hi Jyoti. Remember me ? I think in Mauritius we are tired to read everyday all the fuss being made about the fiscal treaty between Mauritius and India. Thanks to the treaty, India is receiving massive investment via the mauritius route. But alas, for petty political reason, some quarters in India keep criticising this treaty day and night. In mauritius we view this treaty which is the lifeblood of our offshore sector as part of the economic ties between India and Mauritius where the commercial balance is surely tilting in favor of India, the first or second source of import of Mauritius. We also see that China finances a lot of infrastructure such as roads, sewerage and so on. Whereas India plays too much on historical ties but finances nothing.
Reply
  Reply by Satish:
Why the heck should India finance anything in Mauritius? Is it another Indian state? Pretty brazen statements being made here...
Most Popular
Read
E-Mailed
Commented
   
- N-subs: India debates, China struggles
- Bangalore, Hyderabad airport cities are ready to take wing
- Cancer drugs may become cheaper after govt study
- Minister blames own ministry for hurdles in healthcare expansion
- Mittal's son joins Bharti
 
 More  
BS Poll
Cast Your Vote
 
   
 
Will demand for home loans fall with the withdrawal of tax benefits on principal repayment?
  Yes  No
Submit
Twitter
Follow Business Standard on Twitter

  Hot Searches  
 
Navi Mumbai airport |  CAT 2010 |  sks microfinance |  Orkut |  Nuclear Liability Bill |  noel tata |  US economy |  income tax refund |  Mahindra Satyam |  Kashmir |  Union Carbide |  Cairn India |  iPhone |  Rupee Symbol |  IFCI bonds |  Reliance Industries |  3G  |  SEBI |  ULIP |  iPad |  IPL |  BSNL |  Coal India IPO |  BSE |  NSE |  Amitabh Bachchan |  Mukesh Ambani |  Anil Ambani |  Bollywood |  TCS |  Infosys |  Pranab Mukherjee |  Maruti Suzuki |  Sonia Gandhi |  Rahul Gandhi |  New Pension Scheme |  Service tax |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  Barack Obama |   
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring
FOR HOT PRODUCTS
BS Bazaar.com
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Site Map | Contact Us | Feedback