Insights Secure-2014: Questions On Current Events

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09, February 2014

1. Analyze the trends in the growth of microfinance industry in India in last ten years. (200 Words)

Business Standard

(www.business-standard.com/article/finance/microfinance-industry-coming-back-to-life-114020800728_1.html)

2. What were the effects of Fukushima nuclear accident on the world nuclear commerce and nuclear policies around the world? Do you support ban on nuclear reactors for generating power? Substantiate. (200 Words)

The Hindu

3. Should India be more assertive in the South China Sea region? Substantiate. (200 Words)

The Hindu

4. What are the major security related problems being faced by India at its border region with Nepal? What are the bilateral measures taken to check those problems? Explain.

The Hindu

5. Analyze the nature of relationship between Japan and USA post Second World War. (200 Words)

The Hindu

6. What is China’s “Malacca dilemma”? Do you think China poses a real strategic challenge to India in the Indian ocean region? Comment. (200 Words)

The Hindu

  • Q1

    Q 1 1. Analyze the trends in the growth of microfinance industry in India in last ten years. (200 Words)

    • saket

      The growth of MFI is because of two reasons – first its intermediary nature. It can reach where traditional banking services can not or are not willing to lend. Second is the change in stance of the government to accord it a legal status and bringing lending to it within the ambit of priority sector lending.

      Due to several controversies related to illegal lending and collection practices, especially those in Andhra Pradesh, several restrictions were placed on the MFIs. This adversely impacted the industries growth. But of late there has been a change in stance of the government and RBI.

      RBI’s decision to accord Self Regulatory Organisation (SRO) status to the industry and removal of interest rate cap of 26 per cent on loans given by MFIs (now it is linked to the cost of funds) has given new life to the sector.

      A healthy trend has been a shift in industry focus from southern to northern states. This not only diversifies their own portfolios but also serves the largely financially excluded population of northern India who fall far behind their southern counterparts.

      MFIs find a natural place in the strategic design of RBIs to fulfill the financial needs of the unserved citizens. A more liberal stance by the government combined with accountable and transparent functioning of MFIs can be a win win situation for all.

      • saket

        Kindly review thanks

        • SAGAR

          Very good answer…only thing intro of 1-2 lines shud have been there..

      • Royalmittalz

        Well balanced answer…..A little introduction is required as the question demands an ANALYSIS of the MFI….

    • MARINE GUY!!

      Q 1 1. Analyze the trends in the growth of microfinance industry in India in last ten years. (200 Words)
      MFI being a key component of bigger “Financial Inclusion” plan ,in spite of Global economy in doldrums,National economy and MFI sector per se has continued to grow are sustainable rate in past decade,but post 2008 crisis the rate has declined and new challenges are emerging in MFI.
      Government and RBI initiative like NBFC -MFI ,SHG,NABARD,self regulatory organisation has promoted MFI sector in terms of rise in customers,reduction in cost of credit and increased portfolios for credit.All this has raised India status to worlds most active MFI nation.
      NABARD report on status expresses concern over reduction in number of SHG,liquidity constraints and disparity in terms of regional performance,with southern state being far better than norther and eastern states. Andhra pradesh being exception where govt has curtailed due to crisis in lending sector.
      Although the amount of loan dispersed continue to rise,rise in number of registration, almost 50 % growth in funding ,interestingly Northern states scaling up are good news
      these signs of green shoot are .to be complimented with innovative means to capture untapped potential.This is time tested method for socio-eco development ,poverty reduction and women empowerment which can be further pushed using ICT means.

      guys plz review..

      and my contribution
      “http://www.microfinanceindia.org/uploads/news_attachments/20130724120608_state-of-the-sector-report-2012.pdf” ) chapter 3 could be used.

    • http://sudhakarsingh.wordpress.com sudhakarsingh

      Trend analysis of growth of micro-finance industry in India is plagued by paucity of data. Formalization of SHG linked financing by apex bank through NABARD in 1992 gives us some data. This data is limited to information on fund deployed by banks under SHG programme. Nothing on fund absorption and utilization is available, thus making performance analysis difficult.

      Early 1990s witnessed paradigm shift to rural credit through SHG bank linkage programme initiated by NABARD, after the failure of subsidized social banking. This process can be called both financial inclusion and financial extension mechanism as it was aimed including rural and underprivileged population in growth. And most importantly it changed the outlook of bank towards these population from “beneficiary” to “customers”.

      In later years, the banks as well the MFIs benefitted mutually from each other’s growth. It was fueled by private bank, cooperative bank and rural bank lending. Bank started to view it more as a new business aspect, rather than CSR. Bigger SHGs started converting themselves to NBFCs to attract more investments. MFIs established after 2000, started to build upon more as a business entity rather than developmental block and started focusing value addition for the shareholders.

      Micro fiance industry did suffer from certain drawbacks. It is still has not caught up in the northern parts of India which inhabits most of the socially and economically backward villages. There are many policy issues involved. Collaboration with or assistance in development of MFIs into MSME will be major boost for the industry.

      • Praveen

        The microfinance industry came into existence in 1980s with the formation of self help groups (SHGs). Microfinance institutions try to target the niche sector of the society which has been eluded from traditional financial services. It witnessed a tremendous growth during last 3 decades, but since then the sector is in lull.

        This sector is divided on geographical lines, with more concentration in southern parts of India and largely in urban areas. Growth has largely happened through the process of “herding” wherein one microfinance institution enters the area and several other follow to capture the market.
        After more than three years of sluggishness six new micro finance institutions have joined MFIN (micro finance institution network). There has been 50% rise in total loan disbursals over Q2 FY12. Lending has risen significantly in northern states such as Rajasthan, UP, Punjab and Uttrakhand. Microfinance institutions work under the regulatory space of Non Banking Financial Institutions (NBFC) and RBI has recently tried to relax the regulations. RBI has removed a 26% interest cap on loans given by MFIs and linked the interest rates to cost of funds.

        MFI are tools for social change and they should move away from offering standardized products to more customer centric delivery model.

        Please review !!

        • Muhammed Haneef

          Hi Praveen,

          I nice compact explanation which even a layman can follow

          • Praveen

            Thanks Muhammed :)

        • MARINE GUY!!

          v good answer,simple and effective …keep it up

      • vijay

        you missed mentioning microfinance institution bill…….rest all is good

        • Praveen

          thanks vijay..i will work on that

    • http://chakreshblog.wordpress.com ChakreshSinghKashyap

      Analyze the trends in the growth of microfinance industry in India in last ten years. (200 Words)

      Ans:

      While India eyes at providing all its citizens above the age of 18 years with safe and secure electronic bank accounts by 2016, today 60% of urban and rural population do not have a bank account, Micro-finance has emerged as an effective institutions for providing both credit and deposit facilities to the poor.

      In the last decade MFIs have, on the one hand, helped in achieving greater financial inclusion on the other hand, has helped in unleashing the entrepreneurial potentials of marginalised groups especially women.

      In the same period, micro-finance sector has undergone a visible transformation. Earlier it was started by NGOs, based on the concept of SHGs, with a view of supporting the under-developed section in the society. It has now transformed, with the help of SIDBI, into for-profit entities. This has helped in making MFIs financially viable and profitable. This in turn catalyzed its growth.

      But at the same time, the evils of high interest rates, coercive method of loan collection, unfriendly command, high cost of transaction, hidden costs, penalty, commission, extra charges, lacked response etc. has crept into the workings of MFIs. This has led to marginalisation of the poor and inclusion of non-poor beneficiaries.

      As the micro-finance programme continues to expand, depth, quality and viability of financial services has got little attention.
      Words: 216

      (Source: Kurukshetra: December 2013 issue; Article: Recent Trends and Problems in Micro-Finance by Archana Sinha )

      • alteracc34

        Q- Analyze the trends in the growth of microfinance industry in India in last ten years. (200 Words)
        Ans: Microfinance refers to providing financial services like loans, insurance and savings etc to the economically weaker sections of society.
        In India Microfinance begin with Self Help Group (SHG) moment, by providing loans to group of small and marginalized farmers with a peer pressure for repayment of loans. This was done by non-profit organizations mainly NGOs.
        In last 10 years, there has been increasing proliferation of for-profit Micro-Financial Institutions (MFIs). They have been given a Non Banking Financial Corporation (NBFC) status.
        In last 10 years the volume of microcredit taken has been increasing. But, the Interest charged by these MFIs are usurus as high as 40% -60% pa. Also, there has been multiple lending.
        The work Model adopted by MFIs in last 10 years has changed rapidly. The employees and management are paid huge salaries, the number of agents have increased who they are not volunteers but local politicians who want to increase their political clout.
        Further, very harsh, coercive and violent ways are adapted by MFIs for demanding repayment of loans.
        Thus, the trends in last 10 years in growth of Microfinance has shown that the funds which were to be utilized for development of poor, financial inclusion and socio-economic justice are actually channeled for private profits.
        This has resulted in rural indebtedness, economic cleavages, social tensions and increasing suicides of farmers in India. (A2)

      • MARINE GUY!!

        brother i think first two line can be done away with,mention of MFI bill and role of RBI could be stressed.
        over all its good.
        your writing style is simple and effective ..like it :)

        • http://chakreshblog.wordpress.com ChakreshSinghKashyap

          Thanks for the review- MARINE GUY!!.

          The first two lines are taken from Nachiket Mor’s Committee report and I waned to start with the state of Financial inclusion in India. I was unaware about the MFI bill. I will keep that in mind. I also do not know much about RBI’s role in MFI expansion. SO I kept myself close to things I have understood by now.

          Thanks again for reviewing. It will help me improve.

          Regards.

    • http://thegreatindianblog.wordpress.com anurag92

      There is a void in the credit business in rural India due to the lack of presence of formal banking structures. This untapped credit market which used to be in the hands of local money lenders is slowly witnessing a shift into the hands of MFIs.

      THE MFIs started their operations in southern states and are now gradually spreading their wings across the country. There were 49 MFIs in 2010-2011. They have witnessed a drop in the number of MFIs in the year 2011-2012 to 39. Again, they saw a revival in the year 2012-2013 with the addition of 5 more companies to their fold. Their current number stands at 44. The drop in the year 2011-2012 can be attributed mainly to the passage of APMFI Act that imposed stringent regulations on the micro finance industry. The act lead to a shutdown of all the MFI operations in Andhra Pradesh dealing a serious blow to the industry. But, the micro finance industry found support with the RBI which accorded a status of SRO to the micro finance industry. RBI has also lifted the cap of 26% interest rate and linked the interest rates with the cost of funds which is encouraging for these MFIs

    • Abhishek Kumar (C7)

      Microfinance institutions evolved in 1970s with the inception of Gramin Bank in Bangaladesh by legendary noble laureate Mohd. Yunus has so far saw a steady growth in India with the last decade especially crucial to emphasize its importance in realizing the overall objective of financial inclusion and inclusive growth.

      MFI Institutions originally conceived to provide small loans to poor in rural, semi-urban and urban areas in order to enable them to raise their income level, have travelled a long way. MFIs registered as NGOs or Non-Banking Financial Corporation (NBFCs) registered under section 25 of the companies Act, 1956.

      A major impetus to Microfinance activities was provided by NABARD in 1999 when it accepted the recommendation of the task force on supportive policy and regulatory framework for microfinance to allow certain concessions to those NBFCs who are engaged in Micro finance activities.

      RBI in 2004 allowed registered NBFCs to start insurance business (with approval from IRDA) thus took a major step in making the insurance services available to rural poor via SHGs and MFIs. A Micro finance equity fund has also been created to serve socially oriented MFIs to operating in unserved and underserved part of the country.

      MFIs though not without its vices such as coercive recovery and hidden charges, have played a greater role in financial mobilization, and with effective policies and their implementation, MFIs are perceived to be the catalyst of development in rural India.

    • vijay

      Microfinance is the provision of providing financial services (credit, savings, insurance) and non-financial services (training, counseling) to low-income groups, who traditionally lack access to banking and related services.

      The economic reforms of 1990 allowed rural credit through SHG bank linkage programme as a first channel of microfinance. Later several Micro Finance Institutions (SIDBI, NBFCs, Regional Rural Banks, cooperative societies) joined as second channel. These together spurred growth of microfinance as successful and sustainable business model.

      The liquidity crisis in 2008, made banks such as PNB and SBI to enter into group of MFIs. After the ease of liquidity conditions in 2009, the market witnessed the entrance of non-bank debt entities and private Indian banks such as HDFC and ICICI.

      Malegam Committee regulatory initiatives of RBI helped the government to unfold programmes (Microfinance Equity Fund) for MFIs. The financial inclusion plans of government in 2010 brought the microfinance sector under the regulatory regime. NABARD’s scheme for promotion of women SHGs in backward and Left Wing Extremism affected districts and RBI’s decision to accord Self Regulatory Organisation status to NBFC-MFIs has shifted the paradigm in microfinance industry. States like Uttarakhand, Rajasthan, Punjab, and UP have seen significant portfolio growth.

      In spite of all these developments, MFIs are unable to service existing customers. Gaps in Financial system and need for microfinance is increasing continuously. Serious liquidity crisis combined with increasing outstanding loans are main reasons. The failure in adoption of technological solutions and innovative financial products making MFI’s to lose their cause.
      The improved governance of MFIs to ensure a balancing act with social and financial goals and government revival plans of providing liquidity and redesign of products can help MFI’s to come out of troublesome situation. The microfinance Bill, 2012 is a bold initiative in this regard.

      friends plz review
      thanx & regards

      • MARINE GUY!!

        best answer ..but i think you crossed word limit,otherwise you did it pretty well

      • ashish

        The MF industry thrives on providing security free loans to poor and BPL population. The industry has seen a tremendous growth in first decade of 21st century due to change of people’s perception of industry as an innovative methodology for poverty alleviation (spearheaded by NGOs) to a booming profit making industry with the entry of commercial banks assisted by SIDBI . However, its growth has been skewed in southern parts of India and urban peripheries. Besides geographical trend, it has also followed the herding growth i.e. one micro-finance institution (MFI) enters an area and several follow to capture the same market because of parameters of efficiency, cost cutting and quick turnaround. The major factor in loan disbursement has been the industry’s innovative strategy of group lending whereby through peer monitoring it is ensured that no individual member defaults. This effectively transfers the risk from lenders to borrowers.
        However, the industry suffered a setback in 2010 when many borrowers committed suicide due to coercive collection tactics. Loan repayment rates plunged, money flow from banks slowed, and the gross loan portfolio dropped . Then many measures by RBI such as capping the interest rates of lending , facilitating NBFIs (such as International Finance Corporation) for industry as banks stopped lending , according Self Regulatory Organisation SRO status has brought new resurgence. Equity investments have also resumed.. Annapoorna Microfinace,a SHG converted to NBFC-MFI has emerged as one of the largest homegrown MFIs in Odisha. The industry, which earlier mostly lent to poor women in rural areas, is also tapping into a different demographic base including men to cater to the needs of financial inclusion. MFIs in Uttarakhand, Rajasthan, Punjab and Uttar Pradesh have seen significant portfolio growth in the recent past.

  • Q2

    Q 2. What were the effects of Fukushima nuclear accident on the world nuclear commerce and nuclear policies around the world? Do you support ban on nuclear reactors for generating power? Substantiate. (200 Words)

    • saket

      Fukushima nuclear accident was in some sorts an eye opener for the world on the vulnerability of the nuclear reactors due to natural disasters. It has also given a renewed voice to anti nuclear activists who perceive it to be the most harmful form of energy production making negotiations for land use a difficult process.

      What makes nuclear power essential to us is our energy constraints. India has always been an energy scarce nation. Our dependence on foreign players to fulfill its energy needs is well known. This has apart from economic several strategic disadvantages too.

      The other sources of power namely conventional sources will also not be able to fulfill the energy needs of our growing population. To add to it there are several space time constraints to renewable energy sources.

      India also needs to move away from coal based power generation keeping in mind the larger climatic considerations.

      Even If one were to look statistically, one would find that the number of deaths every year due to poverty or vagaries of nature due to climate change only in India far exceeds the number of deaths due to nuclear accidents including the 2 bombings in Japan!!

      Hence I believe that ban on nuclear energy does not suite the Indian energy needs and is detrimental to national interest.

      • Nikhil D

        You could have written more balanced answer. Example.: With proper safety precautions, I urge for nuclear energy as its only viable option to support immediate power needs in India essential for economic growth in near future.

        Also, comparing nuclear losses (read deaths) with that caused by poverty or natural disasters is not appropriate. The deaths caused by poverty or climate change or natural disasters doesn’t have long term impacts whereas nuclear accidents cause genetic disorders which have chronic effects. This is much more serious as it will have impact on future generations of mankind. The impact cannot be quantified in terms of no. of deaths.

    • basant

      A very intense response came from world on Fukushima nuclear disaster in 2011. Responders included International Atomic Energy Agency, World Meteorological Organization and the Preparatory Commission for the Comprehensive Nuclear Test Ban Treaty Organization, which has radiation detection equipment deployed around the world. There have been many anti-nuclear demonstrations and a significant re-evaluation of existing nuclear power programs in many countries. Germany closed all of its old nuclear power reactors and then decided to phase the rest out entirely by 2022. In Italy there was a national referendum, in which 94 percent voted against the government’s plan to build new nuclear power plants. The same happened in Switzerland, and later Belgium. In France the strongly pro-nuclear government was defeated in a national election and, with 70 percent of the public opposing nuclear in some polls, it was replaced by a government promising to radically reduce reliance on nuclear power. Elsewhere in the world, nuclear power plans were abandoned in Malaysia, the Philippines, Kuwait and Bahrain, or radically changed, as in Taiwan. China suspended its nuclear development programme, but restarted it on a reduced basis in late 2012 with the government approving a ‘small number’ of projects in each of the next five years.
      India is a developing country. For India’s high rate of development, energy is required which is unable to fulfill by conventional energy sources such as coal and hydro power. Even renewable sources are also not able to fulfill the demand. In this situation it is necessary for India to use nuclear energy to meet its requirement. Ban on nuclear reactors in India will cause only energy scarcity what India cannot afford. The most important thing in this regard is that there should be strict safety measurements in nuclear power plants to prevent any kind of disaster.

    • MARINE GUY!!

      Q 2. What were the effects of Fukushima nuclear accident on the world nuclear commerce and nuclear policies around the world? Do you support ban on nuclear reactors for generating power? Substantiate. (200 Word

      Fukushima nuclear disaster was a worst of its kind,giving policy maker an opportunity to explore future alternative and strengthen existing nuclear power installation.
      The effect of the above mentioned events are both short term/long term on commerce and policies can be analysed as follows.
      As accident was caused due to technical failure(coolant) thus post event IAEA has issued stringent guidelines,carried out detailed inspection and supporting countries with know how on future preparedness in such unlikely events.
      Although due to lack of capital,knowledge,political will,viable alternative and growing demand of energy ,any sharp decline in nuclear trade/policies in coming year is not visible.Although countries like Germany,Switzerland are shutting down but China ,India,Canada ,UK are expanding the Nuclear power plant sector.
      Issues which are hindrance to this technology are safety, Security,proliferation,land acquisition and rehabilitation,nuclear waste and environmental concern but I don’t reject it out rightly ,keeping the advantages like no GHG release,cheaper in longer run ,sustainable nature and near renewable status(reprocessing of waste) thus making it integral to energy security of developing countries like India,china,etc.
      By Mapping Geology,public awareness ,upgrading Technology,R&D in renewable energy ,strengthening international cooperation (NSG,IAEA) Environment/social impact assesment with region specific approach can solve energy problem.

      words 196.
      please review friends ..!! all criticism are welcome

      • Prateek S

        u cud have mentioned that in the long term we should gradually shift to renewable energy source… btw very nice answer…

        Review my answer too… :)

        • MARINE GUY!!

          thanks prateek!! point noted

    • http://sudhakarsingh.wordpress.com sudhakarsingh

      The catastrophic effects of Fukushima nuclear accident, unfortunately, has not deterred countries with developing nuclear power potential to explore this route to cheap but dangerous energy. This is particularly true for India which is braving resistance from all the quarters to go ahead with Kudalkuan and Jaitapur nuclear plants.

      But it certainly has been an eye opener for the countries and has put onus on them to increase public-governmnet communication, strong civil nuclear laws, delve upon nuclear liability laws etc. Also emphasis upon safe and renewable source of energy like wind & solar has deservingly increased.

      Nuclear power, though being dangerous, does have many positive sides to it. In India, it estimated that more than 300 million people do not have regular power supply. Alternative energy sources like solar and wind needs huge investments and the magnitude of return is not as large as in nuclear power. Cost effectiveness is a major positive.

      In addition to this, India has put nuclear liability clause on the reactor supplier which will make manufacturer accountable in case o accident or disaster. The vulnerability can further be reduced by plugging the loopholes like inefficient EIA & political lobbying. Also eco-sensitive zones should not be used to build a nuclear plant. Strong laws and regulation can help India tap nuclear energy as a temporary source of energy, which should be phased out in due course of time with investment and development of solar & wind energy.

      • MARINE GUY!!

        brother ,some suggestions ..this question had a catch “effect on world nuclear commerce and policies” is focus ,but i find your ans about India (Patriotic bias :) ) ..anywez trend in countries like china japan germany US can be mentioned ,(read mine for quick reference)
        correct me if im wrong.
        rest all you write smooth ,keep writing

    • neeraj

      Fukushima nuclear accident took place three years ago in Japan. This was the largest nuclear accident since Chernobyl. This raised serious concerns about the safety of local people in the vicinity of the nuclear reactor. Protests against nuclear establishment were given a boost.

      Many govt. have to bow down under protests and include safety clause which was resisted by the nuclear supplier countries providing the nuclear plants. Indian govt also came under immense protest. Kundakulam project was delayed owing to protest and only after SC gave permission, the project could be restarted. International agreements became harder as no supplier country wanted to bear the burden of paying for nuclear accidents and increased safety regulations.

      Nuclear plants are a source of imminent danger. They pose threat of nuclear radiation. But, a country like India, which has very low supply of hydrocarbon can hardly afford to do without nuclear energy. Though conventional energy is still cheaper than nuclear energy, but exhaustible nature of conventional energy turns our attention to nuclear energy. Also, with proper safeguards nuclear accidents can be avoided. There have been very few nuclear accidents in the world which instills confidence in the project.

      We should strive for cleaner energy like renewable energy from the sun viz solar energy, wind energy, tidal energy etc. Technological innovation in these field need to be taken to make it cheaper.

      Nuclear energy is needed to keep up our economic development and provide energy to households. Until our research provides better energy sources, nuclear energy is indispensable for growth and development

    • Prateek S

      The nuclear energy is considered as the cheapest source of energy irrespective of the adverse effect of nuclear radiation. The Fukushima nuclear accident in 2011 has once again forced the world to assess the reliability of existing nuclear technology to be utilized for power generation.

      Japan has closed down all its commercial nuclear power plants following the accident. Most of the developed countries rely heavily on nuclear energy to meet their energy demands. However, public outcry and debate following the accident have forced these countries to make more stringent provisions for the safety of nuclear power plants.

      The developing countries like India have signed civil nuclear cooperation with many developed countries to promote the use of nuclear energy. However, the accident forced these countries to demand higher compensation form the nuclear operators to ensure accountability and safety during operations.

      An outright ban on nuclear energy is not a prudent step for developing countries like India. With rapidly increasing energy demands for higher growth and inherent limitations of conventional sources of energy,
      nuclear energy will play a crucial role in energy security of our country., However,there should be a gradual shift to renewable sources of energy in long-term.Till then, nuclear energy will act as a bridge to the future.

      • Prateek S

        Plz Critically review….Thanx :)

        • MARINE GUY!!

          very well written
          few observations
          japan restarted nuclear power.
          negative impacts on nuclear energy should be mentioned(environment,secutiy,land ,capital cost,waste)
          6/10 :)

    • Kiran

      Fukushima nuclear accident which had an adverse impact on the people of Japan had a significant impact on the world nuclear commerce and nuclear policies.

      Japan had stopped the production of nuclear power and shifted its focus on to renewable sources of power.
      Germany’s nuclear policy stated that all the operating nuclear reactors would be shot down by 2022.
      France too is contemplating of a decrease in the share of nuclear power from the current levels.

      It also led to a tougher nuclear policy regime in India. Our nuclear liability law is strengthened to compensate the victims in any such nuclear accident. In addition to the existing internal norms of liability, India introduced a new clause which states that the suppliers will also be liable to compensation in case of a patent or latent defect in the components or bad service provided to the extent of 1500 crores.

      I do not support a ban on nuclear reactors for generating power but I neither encourage nuclear power. We spend 25000 crores on a single nuclear reactor. Instead of spending such exorbitant amounts on nuclear power, it is better if we spend more funds on research in the field of renewable sources of energy. That way, we can be one of the top 5 scientific powers by 2020 as envisages in our National Science and Technology Policy and also gain access to clean, efficient and safe energy. This is also a serious national security issue. They can lead to devastating damages that are disproportionate to the benefits that it accrues.

    • Muhammed Haneef

      Fukushima nuclear disaster should indeed be considered as an eye opener especially for developing countries like India, craving for meeting the cheap energy requirements. The incident has become a legitimation for the concerns raised by different experts who warned its underlying after effects.
      There is no doubt that nuclear energy is indeed a very good source of energy but we must be well prepared to face the after effects, or rather we should be prepared to keep away the after effects. The effects can be as below
      1. Nuclear waste being generated from the nuclear plants are to be disposed in the best possible manner. We are yet to identify such a proven method because of which only 2 new nuclear energy projects were launched by US in the past 30 years, Germany has opened nothing but decommissioning the existing ones, India knowingly or unknowingly keep on opening new projects
      2. The secure life span of a reactor is only 35 years and after that it should be dis mantled safely. In the present scenario of inefficient disposal of nuclear waste, we have to think of the situation once again
      3. In the present situation, cost of safe disposal of waste as well as decommissioned reactors will definitely make nuclear energy a costly solution of energy crisis
      Taking all these into account, the promotion of nuclear energy should be under the radar of safety checks and efficient management. If safety is assured, it is indeed a perfect source

  • Q3

    Q 3. Should India be more assertive in the South China Sea region? Substantiate. (200 Words)

    • Gaurav

      Although India is a non claimant to the South China Sea (SCS) Island, it is concerned with the developments in the SCS. Essentially, India should be more confident and direct in dealing with the region because of several causes:

      1) India’s trade with Japan and South Korea has been growing and hence, it is crucial that freedom of navigation is maintained in the South China Sea through which the trading routes between India and these East Asian countries pass.

      2) India’s sea bound trade that passes through Indian Ocean constitutes 92-95 per cent of its total trade and, there are estimates that nearly 25 per cent (and growing) of this sea bound trade passes through South China Sea.

      3) China’s assertiveness is not good news for the region and especially troubling for India more so since India has unsettled borders with China. As such India cannot afford to simply sit and watch such a situation grow.

      4) India’s involvement in the exploration of oil and gas in the region through joint ventures with a claimant state Vietnam has been a subject of great discussion owing to Vietnam China spat in the area. China raised objection to India’s oil exploration in the Vietnamese claimed area of the South China Sea at two levels. Therefore, to protect its national interest, India should be more assertive in the region.

      Please review, friends,
      Gaurav.

      • saket

        Looks like you have covered all issues. Good answer
        One question – how can India be assertive? I could think of some –

        Forcing China to come to table at multilateral forums and voicing the concerns of smaller states in South China Sea at multilateral forums, while China continues its stand to deal with such issues bilaterally.
        South – East Asian countries have started viewing ties with India as a natural counter against the growing power asymmetry in Asia. India should grab the opportunity. It has been till now reluctant to do in fear of antagonizing China.
        Bilateral trade asymmetry between India and China has tilted the table in favor of China which India needs to change and so do all the countries in Asia except Japan.
        Need to scale up infrastructure along our borders to match that of China. Also need to scale up the defense budget especially modernization of artillery.

        The policy of West appeasing China is also worrying many of the smaller nations like Philippines who has correlated the present scenario to that of Hitler’s appeasement by the West during WW2. How does India voice get their support, when they are still against Japan and too dependent on China (except for US whose pivot towards Asia) seems to be in the junkyard now.

        Let me know if you agree or there is anything else you have in mind on the issue

        • Gaurav

          From the sources i got these points though you have covered all as per me…….India is of the opinion that the SCS region was a key to its energy security, and that the conflict must be resolved peacefully as per international laws —United Nations Convention on the Law of the Sea (UNCLOS)

          On the other side, India has in the recent past increased its activities in that area too..
          took delivery of the refitted aircraft carrier, the Admiral Gorshkov
          last year from Russia while work goes on apace on the indigenous Air Defence Ship (scheduled for completion by
          2015.) Meanwhile, India started the construction of its first indigenous nuclear submarine in 2009 and has plans to induct a third aircraft carrier by 2017. The Indian Navy has inducted into service the nuclear-powered
          attack submarine INS Chakra, brought on a 10-year lease from Russia.

          Since, India-ASEAN trade has reached US$ 57.89 billion in 2010-11 and SCS region was a key to its energy security, any major conflict in the South China Sea region is bound to impact Indian economic interests. So, India is poised to play a greater role in the region by being more assertive, thanks to the growing strength of its Navy.

          @ Saket: Strong Navy deployment is one additional way of being assertive in the region..as the disputes are of concern to south-east asian countries as also to India..

    • MARINE GUY!!

      Should India be more assertive in the South China Sea region? Substantiate. (200 Words)

      Our history has a clear lesson,assertion and antagonizing neighbour can never be constructive.Rising status of Asian giants (India-china) will obviously lead to direct/indirect confrontation this calls for pragmatic approach.
      South China sea has gained importance because for growing trade(ASEAN) potential energy resources,strategic importance and assertive foreign policy of China,all this has led to maritime clashes with among littoral states of this sea.India which is seen as benign power unlike China can play a major role in restoring peace.
      But few factors like lesser Military capability,already border dispute in Arunachal,Aksaichin,huge trade dependence are enough to reshape our policy in south china sea.It should not be assertive in nature but at the same time,this should not be mistaken as weak nation so New Delhi has to send clear,strong massage to Beijing in compliance with UNCLOS. India as a potential UNSC permanent member should project and protect sovereign rights on small nations in the region.
      Platforms like ASEAN,SCO,EAS G20,BRICS are better place for India to present its view and should act as a mediator on maritime disputes this will help to obtain long term solution,as in the words of India prime minister “world is big enough for both (india/china) to grow together” any wrong move can jeopardize International Peace.

      no source used …
      guyz have a look ,please ,I find hard to include points in order.,…any suggestions?

      • http://nilsophist.wordpress.com Nil Sophist

        @ MARINE GUY:-Very good Intro. Keep Writing.

    • http://sudhakarsingh.wordpress.com sudhakarsingh

      When the global shift of centre of economic gravity is towards east of the world, the south china sea holds paramount importance for all the global economies including India. More than half of the India’s export and import go through South China sea. Thus, India needs to tread upon a fine line of politeness and assertiveness.

      Till now India has been successful in pursuing it’s interest without annoying any of the countries involved in the South China conflict including Japan, China & South Korea. Infact ties with these countries have grown stronger in recent times, thanks to shrewd Indian diplomacy.

      Despite warnings from China, ONGC undertook exploration activities in oil blocks in Vietnam. It also has strengthened ties with Japan in technological imports and investments. Japanese emperor even graced India’s 64th republic day celebration. S. korea is one of the major investors in Indian infrastructure.

      Fortunately, for India it is not forced to take sides as of yet. But if conflict in South China sea deepens, it will have to take a firm stand keeping it’s own interest intact. India till now has suggested for bilateral talks to resolve the issue. But a time can come when it will have to play a bigger role in the geo -politics of the region.

      • MARINE GUY!!

        japan emperor on republic day and skorea investment ,both points seems misfit( both countries are important)
        agree with your stance and overall an informative answer

      • http://nilsophist.wordpress.com Nil Sophist

        South China Sea- 1. ‘ASEAN centrality’
        2. UNCLOS
        3. Increase Naval Exercises, Anti-Piracy operations with ASEAN countries
        4. Increase Naval capabilities in Gulf, Indian ocean n Mallaca strait for bargaining power in South China sea

    • neeraj

      South China sea in recent years has become a bone of contention and most of the country including Japan, Korea, Vietnam has come into confrontation with china in the region. India too has strategic interest in the region as it has oil exploration contract with vietnam.

      India’s relationship with China is strained with the recent incursions in Arunanchal Pradesh region. China has been trying to impose its rules on every country in the region. The setting of ADIZ in East China sea, increasing hostility over islands in the south china sea, spats with vietnam other countries over territorial and maritime boundaries are a few example of increasing dominance and aggresive intent of China.

      India being a developing country, needs to be cautious in its relation with china. China and India share economic ties, which if snapped will hurt both. The trade is beneficial to China as India’s trade deficit with china is huge. Also, China is a source of most of the hardware imported by India. Both countries benefit from trade and thus increased interdependence makes it hard for both countries to impose one’s will over other.

      On the other hand, China’s aggressive intent on boundary disputes are to be taken with caution. The increased chinese naval presence in South China sea is a cause of concern for India’s investment in oil and gas exploration in the region. India has to counter aggressive intent with assertive actions or it will loose its strategic place in the area.

      So, to protect its territorial and maritime boundary and its gas and oil exploration projects in the sea, India should cautiously be more assertive balancing its trade relation with China

    • http://chakreshblog.wordpress.com ChakreshSinghKashyap

      (I am writing for 300 words.)

      Q 3. Should India be more assertive in the South China Sea region? Substantiate. (200 Words)

      Ans 3:
      With the deepening Indo-Japan ties being seen as an indicator to the rise of an anti-China bloc along the blueprints of Washington’s “pivot to Asia” strategy” – to undermine China’s growing diplomatic, economic and military might, the Indo-China equation becomes harder to solve.

      South China Sea has been disputed for long, with Chinese maps showing 80% of the region inside its international water boundaries. The US has registered stern protest against such aggression and sees it as violation of the international Laws. Earlier in 2012, Chinese passports were printed showing Arunanchal Pradesh inside Chinese land borders. To which Chinese leadership assured New Delhi that China had no covert intention and India should not read too much into it.

      While South China Sea is of great importance because of the major sea trade routes that pass through it (through Striate of Malacca) and also OVL’s oil exploration projects in the region, India’s assertiveness or unassertiveness has other implications too. China has been effective in swinging ASEAN into its favour by flexing its muscle in the region and spread of communism. India has been a weak observer and has failed to gain Chinese support of world forums. China did not support India at WTO meet, and has not supported India’s demand for a permanent seat an UNSC. Kashmir too cannot be seen far away from South China Sea and Chinese assistance to Pakistan shows China’s apprehensions about Indian growing strength.

      With change in political leadership in China and its changing economic outlook, Chinese market is opening for new opportunities. China is also keen at balancing its trade with India.

      In this light, India should be keen about preserving its economic interests and deepening its ties with China through dialogues and increased people-to-people contact. Assertiveness in South China Sea may prove to be counter-productive.

      Words; 300.

      • R B

        Should India be more assertive in the South China Sea region? Substantiate. (200 Words)

        South asia region consisting of various reefs,islands is contested by littoral states as this region is rich in fishing,hydrocarbon,natural gas and act as important sea route for world trade.It become a center of attention of countries like India and US due to its Geopolitical and Geo strategic importance.China has increasing its assertiveness in this region and involving in disputes with many small littoral states like Vietnam,Philippines etc.These states looking at India to play important role in this region to maintain peace and security.

        India requires to play crucial role in this region because of Look EAST POLICY and its trade with Japan and South Korea has been growing and it estimates that nearly 25 % of India’s sea bound trade passes through South China Sea. India is energy deficit country and is stretching its resources all over the world to access hydrocarbons. India’s oil and gas exploration and extractions in Myanmar and Vietnam need to be understood in this respect. Moreover , India is worried that if China controls this sea space it will dictate maritime traffic, both civilian and military. Therefore, its priority is to maintain freedom of navigation in the sea both merchant and naval ships Any major conflict in the South China Sea region is bound to impact Indian economic interests.
        By keeping above things in mind India recently declare that until a solution is not found to defuse the tensions there should be code of conduct for all countries with stakes in this region so situation does not escalate.

        Kindly review.

      • http://kbr296.wordpress.com kbr296

        Chakresh for some reason the answer does not sound ‘to the point’. U talked about a lot of things. Keep reminding the examiner that u are answering ‘his question’. And break the intro in two or three sentences.

      • http://kbr296.wordpress.com kbr296

        Chakresh, for some reason the answer does not sound ‘to the point’. U talked about a lot of things. Keep reminding the examiner that u are answering ‘his question’. And break the intro in two or three sentences.

        • http://chakreshblog.wordpress.com ChakreshSinghKashyap

          Yes I agree..thanks.. next time I will try to stay closer to the question

      • MARINE GUY!!

        arunachal pradesh vise issue is out of context(my opinion) breaking flow of answer.
        you can make it out..
        rest all is good job

        • http://chakreshblog.wordpress.com ChakreshSinghKashyap

          Many Thanks MG!!! for the review. I agree its not the best answer. I just tried to present my understanding. AP/ passport issue was given to exemplify the Chinese claims over borders both in sea and land. May be it was out of place here. I agree with the flow thing also. It could have been made more readable and concise.

          Keep writing and reviewing

          Best Wishes.

          Regards.

    • Stark

      The rise of ASEAN countries, China and economic resources has made South China Sea as one of the most important trade routes and economical zone in the 21st century. On the contrary it has raised some serious disputes between the China and smaller countries of Philippines and Vietnam over territorial claims. India’s role in the region has been a much debated issue and it is high time that India decides to play an assertive role in the region.

      India seeks a much larger role in the Security Council and other international forums. It, thus becomes essential for her to expand her area of influence. South Asian region looks much conducive to initiate this role as many of the ASEAN countries have urged it to play a balancing act against China. It is important to understand that once China’s claim prevail over South China Sea region then it will be very difficult to settle India’s own territorial issues with China in Himalayan region.

      India must take into account specific historical background, oppose what is against international law and prevent any restriction over its right to exploit natural resources of the region. The act of assertiveness should be carried considering both power & principle and her presence should aim to bring out a peaceful resolution to the disputes.

    • swapnil

      http://www.ijhssnet.com/journals/Vol_3_No_13_July_2013/28.pdf

      I think from this pdf any question on south china sea can be solved.

  • Q4

    Q4. What are the major security related problems being faced by India at its border region with Nepal? What are the bilateral measures taken to check those problems? Explain.

    • Gaurav

      Because of India and Nepal sharing Open Border System, there remain many security related challenges emanating from the other side of the border which could be discussed under following broad heads.

      1) Cross-border terrorism: Open border has provided as safe passage to the terrorists. India has been blaming Nepal that Pakistani ISI agents are infiltrating into India via Nepalese territory.

      3) Illegal import of arms and ammunitions : Unregistered and unlicensed arms and ammunitions might have been transported illegally because of the weakness of unrestricted border.

      4) Smuggling of goods, material and machinery: There is always a possibility to be transported market goods and merchandise through the illegal entry points of the border, where there is no custom or police post.

      5) Cross-border crime: Criminal activities such as murder, theft, and rape cases have been increased on the frontier of both the countries due to open border.

      6) Trafficking of narcotic drugs, Robbery and theft ,Infiltration of Bhutanese refugees are other security related problems.

      To check these problems, Integrated check-posts have been proposed at four points on Indo-Nepal border.As also, to deal jointly with each other’s security concerns, the two countries have established the following mechanisms: Meeting of the Home Secretaries, Nepal-India Bilateral Consultative Group on Security Issues (NIBCGSI), Joint Working Group on Border Management (JWG) and Border District Coordination Committee (BDCC).

      please review, friends,
      Gaurav.

    • Brar

      Porous nature of border between India and Nepal is the outcome of Treaty of Peace and Friendship which the two countries signed in 1950.where on the one hand it is strengthening the bilateral social and economic relations, on the other hand it poses a major challenge to India’s security.

      open border has been often used by criminals and terrorist for anti Indian activities .it has become hub for various militant groups which are threat to internal security of India.recently three senior militants of the Kamtapur Liberation Organization (KLO) are areested from jhapa in Nepal.The KLO has been waging an armed struggle for a separate state made up of districts in West Bengal and Assam. terrorist, arms, drugs and fake currency is often smuggled through the border.human trafficking and smuggling of gold is also very common.

      this deteriorating security situation needs mutual security consideration. joint working group at the level of joint secretary. border security coordination committee,Cross-Border Crime Control Action Plan 2013 , etc are some of the steps taken by both the countries in this field. moreover,presence of the Sashastra Seema Bal (SSB) along the Indo-Nepal border has been further augmented with the construction of five additional Border Out Posts (BOPs) by India.but lack of coordination between the two sides is failure for efficient border managemnt.
      India and Nepal have to collaborate and coordinate their efforts to improve the situation in better way by setting up joint task forces to investigate cross-border crimes, sharing real time intelligence, conducting coordinated or joint patrolling etc

    • http://sudhakarsingh.wordpress.com sudhakarsingh

      Indo-Nepal border being porous has always been problematic area for Indian authorities. The majors areas of concern are borders of UP, Bihar & Bengal in terai region of Nepal. Even change in political guard in Nepal could not make much of a difference in this front.

      Porous borders aids in unhindered movements of criminals, drugs, child labour, illegal goods etc. This is largely because of lack of border security staffing from on both sides of the border. Also the adjoinings areas are culturally and socially very similar making it an ideal playground for miscreants to switch side in order to evade law and order of the land.

      However Nepal has been cooperative with Indian authorities in security issues. Bilateral relations between both the countries is dictated by “1950 Indo-nepal Treaty of peace and friendship”. It also has provision for respect for each other’s territorial integrity. This treaty needs to updated amid recent developments.

      India should also be wary of China’s increased investments in Nepal. The economic and social elements in Nepal are too fragile to maintain pro India sentiments and resist Chinese temptations. India should further engage with Nepal at both diplomatic and ground level.

    • http://sudhakarsingh.wordpress.com sudhakarsingh

      When the global shift of centre of economic gravity is towards east of the world, the south china sea holds paramount importance for all the global economies including India. More than half of the India’s export and import go through South China sea. Thus, India needs to tread upon a fine line of politeness and assertiveness.

      Till now India has been successful in pursuing it’s interest without annoying any of the countries involved in the South China conflict including Japan, China & South Korea. Infact ties with these countries have grown stronger in recent times, thanks to shrewd Indian diplomacy.

      Despite warnings from China, ONGC undertook exploration activities in oil blocks in Vietnam. It also has strengthened ties with Japan in technological imports and investments. Japanese emperor even graced India’s 64th republic day celebration. S. korea is one of the major investors in Indian infrastructure.

      Fortunately, for India it is not forced to take sides as of yet. But if conflict in South China sea deepens, it will have to take a firm stand keeping it’s own interest intact. India till now has suggested for bilateral talks to resolve the issue. But a time can come when it will have to play a bigger role in the geo -politics of the region.

      • Blue rose

        This answer got posted again…

    • Blue rose

      India’s open border with Nepal along the 5 states of Sikkim, West Bengal, Bihar, U.P and Uttarakhand had facilitated the free movement of people across the border without passport or visa formalities. Eventhough this has contributed to the deepening of socio – economic relations , it also had created several security problems.

      A major issue is cross boarder terrorism, whereby Pakistan’s ISI agents and other terrorists infilterate into India through Nepal’s territory. The arrest of two high profile terrorists Yasin Bhatkal and Adul karim Tunda in 2013 have brought to light the severity of this issue. Also Maoist insurgents of Nepal is playing a major role in supporting Naxal’s in India.
      Smuggling is another major concern. Smuggling of gold, drugs and pharmaceutical preparations, fake Indian currency notes (FICN), women and children, arms, explosives etc takes place along the porous border.

      Several bilateral initiatives have been taken like the strengthening of Sashastra Seema Bal (SSB) along the Indo-Nepal border, construction of five additional Border Out Posts (BOPs) and building of a strategic road to facilitate the easy movement of the border guarding personnel. Both have also prepared and enforced a Cross-Border Crime Control Action Plan 2013 to curb trans-border crimes.

      However more stringent border management is needed for averting the major security challenges.

  • Q5

    Q5. Analyze the nature of relationship between Japan and USA post Second World War. (200 Words)

    • http://chakreshblog.wordpress.com ChakreshSinghKashyap

      Ans: After Japan’s defeat in the Second World War, it was occupied by the US. Japan underwent major changes. The emperor’s power was reduced and a democratic parliamentary form of government with adult suffrage was introduced. The power of big landlords was reduced and labour unions were given voice. The education system was reformed and its misuse for spreading chauvinistic and militaristic values was checked.

      In the 1990s, while on one hand Russian threat subsided, Japan emerged as an economic power. The US investment in Japan kept going up and in 1993 the Japanese telecom, medical equipments and insurance market was opened for the US. But the relationship was not always of mutual trust and US saw Japan’s economic rise with suspicion.

      The Right wing political parties were opposed any further US intervention in Japan. Today the Right voices are getting strengthened and are in favour or rearmament of Japan and an independent foreign policy.

      The US has been a security partner to Japan and Japan enjoys special status as compared to other countries with respect to energy and nuclear cooperation with the US. But US-Japan relations have been dynamic and are determined by several factors such as: Percieved threat of Japan’s economic potentials, China-Russia alliance against US-Japan in the region, Japanese apprehensions about the possible souring of Tokyo’s relations with the middle east because of Washington’s assertiveness in the region.

      Nevertheless, US-Japan relations has been dynamic and peaceful since WW-2.

      • http://kbr296.wordpress.com kbr296

        Chakresh, this time its bang on target. Just prune the first para a little.

        • http://chakreshblog.wordpress.com ChakreshSinghKashyap

          Glad that the answer got reviewed by someone.

          Thanks for the encouragement.
          Regards.

      • http://pullu18.wordpress.com pullu18

        You may mention treaty of peace at san fransisco(1951) by which japan became a protectorate of usa and japan had to maintain an american force to counter external attacks. :)

  • Q6

    Q6. What is China’s “Malacca dilemma”? Do you think China poses a real strategic challenge to India in the Indian ocean region? Comment. (200 Words)

    • Gaurav

      China’s rapid economic growth has led to a huge increase in oil imports. This has raised great concern regarding its energy security because China depends on a single chokepoint, the Strait of Malacca, with nearly three-quarters of its oil imports flowing through the Strait. This has led China to find alternative routes for imports and it is, what is called, “Malacca dilemma”.

      China’s growing naval presence in and around the Indian Ocean region, beginning in areas such as China’s Hainan Island in the South China Sea, is troubling for India.

      The presence of access tunnels on the mouth of the deep water base is particularly troubling for India as it will have strategic implications in the Indian Ocean region, allowing China to interdict shipping at the three crucial chokepoints in the Indian Ocean – Bab el Mandeb, the Strait of Hormuz, and the Strait of Malacca.

      Of particular note is what has been termed China’s “string of pearls” strategy that has significantly expanded China’s strategic depth in India’s backyard.

      Also, the recent Chinese Navy exercises in the Lombok Strait in the Indian Ocean near Indonesia, underlies China’s expanding capabilities in carrying out operations in waters far beyond its borders, and one of the possible message is that they can come closer to the Andaman & Nicobar joint command through Lombok, thus posing a great threat to India.

      Please review, friends,
      Gaurav

    • Abhishek Kumar (C7)

      Mallacca Dilemma is often referred to the Chinese apprehension of any future disturbances on the route of Mallaca strait which is the one of the most important channels of energy import for china.

      Mallaca strait, a waterway between peninsular Malaysia and Indonesian Island of Sumatra is significant shipping lane connecting Indian ocean with pacific ocean and act as the link for importing major energy products from Gulf countries to China, Japan and South Korea etc. China in particular in heavily dependent upon it as it contributes to 80% of the total Chinese trade. Chinese fear of someone attacking and controlling this narrow strait is what is known as mallaca dilemma.

      China with its heavy presence in Indian ocean region mainly to secure the sea lines of communication to its transport to china through mallaca straits is perceived as an intruder in the region posing strategic challenges to India. China, in the Indian ocean is aggressively developing its capabilities in Naval and Air forces with vigorous diplomatic efforts in developing its relations with Indian Ocean nations.

      India, hence through its naval power should be actively keep a watch on the Chinese development in the region and efforts to be made to minimize the effects of future Chinese aggression during the time of war.

    • swapnil

      Malacca strait is a waterway connecting indian ocean with pacific ocean and act as the important link for importing major energy products from Gulf countries to china, japan and south korea.

      Chinas around 80% of oil import pass through Malacca strait. China faced ‘Hormuz Dilemma’ in persian gulf during Usa- Iran conflict over nuclear issue. China is even more vulnerable in Malacca strait. This vulnerability represents china’s “Malacca Dilemma”, which means china’s fear about someone attacking and controlling this narrow strait.

      This has led china to protect its sea lines of communication ,especially the transport of energy to china through Malacca strait and to find alternative routes for imports. This is possible only after entering in the field of Indian ocean realm. China is eager to increase its naval presence in indian ocean to protect its SLOCs out of this, china is developing a string of naval facilities across Indian ocean that would be available for use in case of conflict.Developing naval facilities at Gwadar port in pakistan is a part of that string.

      China is attempting to reduce its vulnerabilities through diversifying its energy transport options by developing pipelines and other transport links to the Indian ocean through Myanmar and potentially , Pakistan.

      China is developing considerable economic and political influence with some Indian ocean states. Building container port at chittagong in Bangladesh and Hambantota in Srilanka is a part to increase chinas presence in the region. chinas economic activities in Maldives is also a matter of concerne for india.

      Recent chinese navy exercise in Indian ocean near Indonesia expressed their expanding capabilities in carrying out operations in waters far beyond their boundaries.

      So it is very clear that china is increasing its presence in the region to protect its economic interestsas as well as to counter India. It has diluted Indias advantaged position in the region. Hence, India through its naval power should actively keep a watch on chinese development in the region.

  • Gaurav

    China’s rapid economic growth has led to a huge increase in oil imports. This has raised great concern regarding its energy security because China depends on a single chokepoint, the Strait of Malacca, with nearly three-quarters of its oil imports flowing through the Strait. This has led China to find alternative routes for imports and it is, what is called, “Malacca dilemma”.

    China’s growing naval presence in and around the Indian Ocean region, beginning in areas such as China’s Hainan Island in the South China Sea, is troubling for India.

    The presence of access tunnels on the mouth of the deep water base is particularly troubling for India as it will have strategic implications in the Indian Ocean region, allowing China to interdict shipping at the three crucial chokepoints in the Indian Ocean – Bab el Mandeb, the Strait of Hormuz, and the Strait of Malacca.

    Of particular note is what has been termed China’s “string of pearls” strategy that has significantly expanded China’s strategic depth in India’s backyard.

    Also, the recent Chinese Navy exercises in the Lombok Strait in the Indian Ocean near Indonesia, underlies China’s expanding capabilities in carrying out operations in waters far beyond its borders, and one of the possible message is that they can come closer to the Andaman & Nicobar joint command through Lombok, thus posing a great threat to India.

    Please review, friends,
    Gaurav.

    • Gaurav

      Sorry, it was posted twice mistakenly….

      • GAGAN

        As the next hot spot of power struggle is shifting towards east asia region because of USA’s pivot to asia policy , china’s expansionist policy and growing mistrust in region , sea lanes and choke points holds an important strategic position in the region.
        Sea lanes are like life blood for china’s growing economy and Strait of malacca accounts for more than 70% of china’s energy supply. Choking of this important strategic point in case of conflicts would leave china’s energy and security needs at the mercy of the rival countries in indian ocean as these countries hold a natural geographical advantage over china in the region. In order to secure its energy needs china is finding alternative routes and ways termed as MALACCA DILEMMA.
        by pursuing a proactive approach, china has started to diversify its sea lane and trade route base that lead to increased presence of china in indian ocean. Apart from commercial interests , china is following a containment of india strategy in indian ocean region by developing its bases known as string of pearls.
        Recent naval exercise in lombok strait near indonesia (first of its kind in the region) has shown china’s capability to engage itself in the region where it is in geographically disadvantaged position.
        Therefore on the one hand china’s military supremacy over indian army posed a threat to india’s northern boundary, on the other hand china’s increased presence in IOR has diluted india’s advantaged position in the region.

        • GAGAN

          please review
          THANKS

          • ashish

            What is China’s “Malacca dilemma”? Do you think China poses a real strategic challenge to India in the Indian ocean region? Comment. (200 Words)
            The Strait of Malacca is a narrow channel of water separating Malaysian peninsula from Indonesian island Sumatra. It is one of the world’s busiest shipping lanes and located close to city of Singapore which hosts a huge naval base belonging to the US navy. In fact, it is the U.S. Navy that more or less controls the Malacca Strait and other water-based trade channels in this part of the world.It is this reality that is giving Beijing the jitters because more than 70% of China’s energy supplies move through the Malacca Strait.
            Indian Ocean also provides a major trade route to China for sourcing its energy resources from ME through Gulf of Aden. To ensure security in the strategic region, the People’s Liberation Army Navy (PLAN) has been conducting navy drills in Western region near Gulf of Aden. So far these drills focused on anti-piracy and search and rescue measures. However, the recent rare event of conducting exercises in in the Lombok Strait in IOR near Indonesia has been a signaling China’s expanding capabilities in carrying out operations in waters far beyond its borders. To counter the claims of other countries in disputed SCS, China is being assertive by deploying the ships laden with advanced weapons systems in regions surrounding SCS. Due to Malaca dilemma it is also trying to establish alternate routes for imports such as through ports in Myanmar and on-going projects in Bangladesh and Pakistan. It is no denying the fact that in near future China can come closer to the Andaman & Nicobar .

  • https://www.facebook.com/profile.php?id=100007446935085 Vinay Singh

    Question: What were the effects of Fukushima nuclear accident on the world nuclear commerce and nuclear policies around the world? Do you support ban on nuclear reactors for generating power? Substantiate. (200 Words)

    Answer: Civil nuclear power came as a solution to the dwindling fossil fuel resource base and had given a psychological strategic strength to the countries possessing this technology. But in the aftermath of Chernobyl accident and recently Fukushima accident, the euphoria surrounding nuclear power as an alternate energy is ebbing away because of the devastation brought by these disasters.
    Aforementioned accidents shaken the confidence of humanity over nuclear energy and many countries (Germany, Japan) are weighing cautiously alternative resources and those who have enough alternative resources to drive their economy are moving away from its use. Much of this is caused by the pressure from civil society. Countries involved in trade are making their nuclear energy regulations stringent so that in case of any unfortunate mishap the accountability can be apportioned like India recently enacted Civil Nuclear Liability Bill which is places liability on supplier in case of any fault delivery.
    Now the countries world over (Manly those countries who do not have any other alternatives) are faced with challenges to strike a balance in securing their energy security and assuaging the fears of its Citizens and at the same time making giant strides in finding alternative resources.
    Nuclear energy came as a solution to other forms of energy with multiple benefits associated with it as it improve energy security, reduce the impact of volatile fossil fuel prices, mitigate the effects of climate change and make economies more competitive. Thus this form of energy should not be given up until other vistas of energy are explored although government should try to engage with scientific community to come with secure structures which can withstand natural disaster and safety nuclear waste disposal guidelines.

    My First Answer..
    Please review seniors

    • Reddy

      nice,u r language is good,,,

  • https://www.facebook.com/profile.php?id=100007446935085 Vinay Singh

    Should India be more assertive in the South China Sea region? Substantiate.

    South China Sea, in last few years are embattled by China’s growing assertiveness in this region. China has disputes with many ASEAN countries over ownership of islands in this region. Further perpetuation of this tension will have deleterious effects on Freedom of navigation, Oil Exploration activities and extraction of oceanic bounty.
    We should assess India’s response with respect to securing above mentioned interests at the same time standing by allies and natural partners against Chinese assertiveness. In this endeavor our trade dependence over China should also be kept it mind so that we do not disturb our commercial trade with China.
    India should follow two pronged strategy:
    The short term option in present situation is to promote solution through talks and following a code of conduct by all the countries in this region so that navigational security and commercial interests are served.
    For the long term security in this region India should invoke its civilizational and cultural ties with these countries to give a fillip to their relationship with India at the same time strengthening its domestic defense preparedness and try to forge alliances to contain China’s assertiveness without countering.

    Please Review…

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