EVENTS

You are here

Events

Title Date Author Time Event Body Research Area Topics File attachments Image
Report on Visit of the Delegation from the National Defence College, UAE December 11, 2023 Other

A delegation from the National Defence College, UAE, led by Brig. Gen. Staff Pilot Khalifa Butti Thani Tarish Al Shamsi visited the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA) on 11 December 2023. Director General, Ambassador Sujan R. Chinoy made a presentation on the structure and role of the Institute and India-West Asia relations. Established in 1965, MP-IDSA is an autonomous body funded by the Ministry of Defence (MoD), Government of India. The scope of research activities undertaken by MP-IDSA broadly includes issues relating to defence, internal and external security and international relations. Its governance is overseen by the Executive Council, traditionally presided over by the Defence Minister of India. Amb. Chinoy highlighted the diverse spectrum of research initiatives undertaken by the Institute's various Centres, shedding light on key issues and areas of research by the scholars. Emphasising MP-IDSA's contributions, he mentioned significant publications, specifying two esteemed peer-reviewed research journals: Strategic Analysis and Journal of Defence Studies.

Amb. Chinoy mentioned the training mechanism of the Institute in terms of capacity building through short modules for various stakeholders, including Defence Forces (NDC, DSSC, CDM), OFB, BSF Academy, ITBP, Customs, SSB, NTRO, IFS, State Governments and Young Parliamentarians. MP-IDSA has also served as a knowledge partner of MoD for the India-Africa Defence Dialogue, Aero-India and Defence Expo in Lucknow-2020 and Gandhinagar-2022. The Institute has also undertaken and completed study reports/projects on military equipment, cyber security, border infrastructure, defence cooperation, terror financing, border management and maritime security.

Amb. Sujan Chinoy provided a brief overview of India-West Asia relations, highlighting the historical and civilizational links and India’s position as a stakeholder in peace and security in the region. He emphasised that since 2014, high-level engagements have increased remarkably because of the leadership of India’s Prime Minister Narendra Modi. Modi adopted the “Think West” policy to deepen engagement in West Asia in economic, defence, security and strategic cooperation.

With regard to energy cooperation, Amb. Chinoy stated that the Gulf region is the most reliable energy source, supplying 60 per cent of India’s total oil imports. On a positive note, India is deepening engagement with Gulf countries in the green and renewable energy sector as there is a convergence of interests between India and Gulf nations to reduce carbon emissions.

He also highlighted India’s support to West Asian countries during the COVID-19 pandemic by providing Hydroxychloroquine tablets and medical equipment to the West Asian countries. India sent a team of 88 medical and healthcare professionals to the UAE.

Amb. Chinoy said that under Prime Minister Modi, defence and security cooperation between India and West Asia has deepened substantially. The number of joint exercises between the Army, Navy and Air Force of India and the West Asian countries has increased. India has invited Gulf countries to invest in ‘Make in India’ defence initiatives. Amb. Chinoy mentioned that ISIS networks in India’s neighbourhood are a matter of concern for India. Hence, India is enhancing cooperation in exchanging information relating to terrorist activities and other security challenges to combat threats. He also underlined piracy as a common threat to India and West Asia. For both, maintaining the safety of Sea Lines of Communication (SLOC) is extremely important. Since 2008, India has consistently deployed a naval ship in the Gulf of Aden. The importance of the Joint Defence Cooperation Committee, Ex Desert Flag, Zayed Talwar, IDEX, NAVDEX and space cooperation were also highlighted.

India-UAE partnership is multifaceted, and high-level exchange of visits signify the importance of the relationship. The UAE President visited India for the G20 Leadership Summit, and PM Modi visited UAE in December 2023 to participate in the COP28 Summit. The UAE is considered India’s special friend and was invited as a Guest Country for India’s G20 Summit. Both countries have convergence of interest on issues such as trade, connectivity, climate, green energy, terrorism and piracy.

The UAE is India’s third largest trading partner, with bilateral trade of around US$ 85 billion. Moreover, both countries signed a Comprehensive Economic Partnership Agreement (CEPA) in February 2022, and bilateral trade has increased by 15 per cent since the CEPA came into force in May 2022. The UAE is the seventh largest investor in India in terms of FDI and the second largest source of LNG and LPG. Remarkably, UAE is India’s second largest export destination, with US$ 31.61 billion in 2022-23. Amb. Chinoy also highlighted India’s connection with the UAE through 3.5 million Indian diaspora working and living in the UAE, contributing to the country’s progress. Notably, in 2022, India received US$ 20 billion from the UAE through diasporic remittances.

The UAE is the first international partner to invest in India’s Strategic Petroleum Reserves. Besides, Indian companies have steadily increased their participation in the UAE’s energy sector. Under the mandate of I2U2, the UAE has pledged to invest US$ 2 billion to establish Integrated Food Parks in India.

In his remarks, the head of the NDC UAE delegation Brig. Gen. Staff Pilot Khalifa AlShamsi stated that the NDC UAE broadly covers aspects relating to international relations including military, economic, diplomatic and security as primary domains. He specified that NDC UAE, through its Strategic Security Studies Programme, prepares future military and civilian leaders of the highest calibre. He expressed hope for the future of the India-UAE Comprehensive Strategic Partnership and acknowledged India's support to the UAE during the COVID-19 pandemic.

Q&A Session

Questions relating to MP-IDSA’s research on evolving issues, security challenges for India, I2U2, India’s leadership in Global South and Research and Development (R&D) were asked by the members of the NDC UAE delegation. Amb. Chinoy stated that MP-IDSA engages experts/officials from both defence and civilian categories who are experts in different areas. Scholars of MP-IDSA regularly publish books, Op-eds, commentaries, and research papers in journals. Scholars also visit various places across the country and abroad to present papers at conferences.

On the issue of security challenges for India, Amb. Chinoy spoke about threats emerging from China, Pakistan and disruptions in maritime security. He described challenges relating to maintaining rapid and inclusive economic growth with peace and tranquillity on the periphery. On the issue of India’s leadership potential in Global South, Amb. Chinoy specified that India has already showcased its capacity to be a leader of the Global South by successfully holding the G20 Presidency. The successful conduct of the Voice of Global South Summit at the beginning and end of India’s G20 Presidency has showcased India’s priorities. India’s proposal to include the African Union in the G20 was highly appreciated and was approved by all members, showing the potential of Indian leadership of the Global South. Indian Technical and Economic Cooperation Programme (ITEC) has been widely appreciated in the Global South as a remarkable capacity-building initiative.

With regard to R&D, Amb. Chinoy mentioned that the Defence Research and Development Organisation (DRDO), under the Ministry of Defence, Government of India, is committed to empowering the nation with advanced defence technologies. With a mission to attain self-reliance in crucial defence technologies and systems, DRDO aims to provide the armed forces with cutting-edge weaponry and equipment aligned with the specific needs of the three Services.

Scholars from MP-IDSA emphasised enhancing collaborative efforts between maritime agencies of India and UAE, considering the adverse impact of climate change is on the rise. Suggestions were also given to deepen the joint counter-terrorism efforts by both countries.

(Report prepared by Mr. Abhishek Yadav, Research Analyst, West Asia Centre, MP-IDSA)

MP-IDSA Fellow’s Seminar on Evolution of African Maritime Security: Imperatives, Governance and Challenges May 06, 2024 Fellows' Seminar

The MP-IDSA Fellow’s Seminar presentation by Dr. Abhishek Mishra, Associate Fellow, MP-IDSA, on “Evolution of African Maritime Security: Imperatives, Governance and Challenges” was held on 29 February 2024. It was chaired by Vice Admiral Satish Kumar Namdeo Ghormade, PVSM, AVSM, NM (Retd.), former Vice Chief of Naval Staff. The External Discussants for the paper were Commander Abhijit Singh, Head, Maritime Policy Initiative, Observer Research Foundation (ORF), and Dr. Pooja Bhatt, Consultant, Ministry of External Affairs and Researcher on Maritime Security and Governance. The Internal Discussants were Ms. Ruchita Beri, Consultant, Africa, Latin America, Caribbean, & UN (ALACUN) Centre, MP-IDSA, and Cmde. Abhay K. Singh, Research Fellow & Coordinator, Southeast Asia and Oceania Centre, MP-IDSA.

Executive Summary

The development of a maritime security agenda for African countries has been relatively new, despite the continent being completely surrounded by water. Following the emergence of the scourge of piracy off the coast of Somalia, African countries and international actors started to pay due attention to ensuring maritime security. Although armed robbery at sea has sensitised the countries of Africa and the international community to the threats in the African maritime domain (AMD), an overemphasis on piracy and armed robbery has skewed perceptions about the African maritime landscape. The challenges today are much broader, and the resultant strategies employed by African countries go beyond tackling piracy. Thus, in the present time, African maritime strategies tend to focus on the common interests of wealth creation and sustainable governance.

Detailed Report

Dr. Mishra’s research explored the potential of the "blue economy" or "blue growth" approach in mitigating maritime crime in African waters. He also examined the evolution of maritime security within the African context over the past two decades.

Previously neglected, Dr. Mishra argued that Africa's colonial past fostered a "sea blindness," hindering a focus on maritime security. He emphasised the ambiguity of the term "maritime security," highlighting the varying interpretations by Till (2018) with hard and soft security distinctions, Bueger's (2015) constructivist approach with the Maritime Security Matrix, and Siebels' (2020) "Tale of Two Regions'' incorporating positive and negative definitions.

He further underscored the criticality of Africa's maritime sector. Firstly, 38 out of 54 African territories are island nations or coastal states. Secondly, Africa boasts a vast coastline exceeding 26,000 nautical miles. Finally, the number and capabilities of actors threatening the African Maritime Domain (AMD) are continuously rising. These factors necessitate a commensurate response at national, regional, and continental levels.

Moreover, while explaining the threats and vulnerabilities of the African Maritime Domain (AMD), he categorised them into three main areas. Governance issues encompass illicit fishing, marine pollution, illegal oil bunkering, and crude oil theft. Security concerns include armed robbery, piracy, and trafficking in weapons, drugs, and wildlife. Finally, humanitarian assistance needs encompass Search and Rescue (SAR), Humanitarian Assistance/Disaster Relief (HA/DR), and out-of-area emergencies.

He then highlighted the Stable Seas Maritime Security Index, which ranks nations based on nine criteria relevant to Africa, including global cooperation, legality, maritime safety, coastal well-being, the blue economy, fishing practices, piracy, illegal trade, and mixed migration via sea.

However, Dr. Mishra acknowledged the ongoing debate surrounding maritime security (MS) in Africa. He said that scholars grapple with a unified definition within the African context. Since 2005, the African Union (AU), Regional Economic Communities (RECs), and the African Union Commission (AUC) have actively discussed the African Maritime Domain (AMD) primarily in relation to piracy. The initial discourse revealed diverse interests and a complex web of African-international relationships. Notably, African RECs have collaborated with the United Nations, International Maritime Organization, and other nations.

He further emphasised Africa's pre-existing engagement in maritime governance. By 2000, 37 African nations were already members of the International Maritime Organization (IMO), and the continent had a maritime transit charter established in 1993. Additionally, African countries ratified key agreements like the 1974 SOLAS Convention (safety of life at sea) and the 2004 ISPS Code (security of ships and port facilities).

The 2000 International Convention on Maritime Search and Rescue (SAR) provided the foundation for the first pan-African initiatives to bolster SAR capabilities. Between 2007 and 2011, five Maritime Rescue Coordination Centers (MRCCs) and twenty-six sub-centers were established in strategic locations like Mombasa, Cape Town, Lagos, Monrovia, and Rabat.

Dr. Mishra also highlighted the significance of informal gatherings and conferences fostering maritime cooperation since 2005. These include the IMO-sponsored Sea Power for Africa Symposium (SPAS), the U.S. Naval Command's East Africa and Southwest Indian Ocean Maritime Security Conference (EASWIO), and the Indian Navy's Indian Ocean Naval Symposium (IONS), alongside regional meetings in Sana'a, Muscat, and Dar es Salaam. The establishment of the Djibouti Code of Conduct (DCoC) in January 2009 marked a further step towards regional cooperation.

Moreover, Dr. Mishra made a distinction between the Yaoundé Code of Conduct (YCoC) and the Djibouti Code of Conduct (DCoC). Adopted in January 2009, the DCoC focuses on piracy and armed robbery suppression in the Western Indian Ocean and Gulf of Aden. Its core objective is to facilitate international cooperation through information sharing, training nitiatives, national legislation updates, and counter-piracy measures. The DCoC+, established through the 2017 Jeddah Amendment, addresses additional threats like illegal, unreported, and unregulated (IUU) fishing and human trafficking.

On the other hand, the YCoC, ratified in 2013 by 25 West and Central African nations, targets a broader range of illicit maritime activities in the Gulf of Guinea, including piracy, armed robbery, and IUU fishing. Information sharing is a central pillar, achieved through two regional centers: (i) Regional Centre for Maritime Security in Central Africa (CRESMAC) under the Economic Community of Central African States (ECCAS) and (ii) the West Africa Regional Maritime Security Centre (CRESMAO) under the Economic Community of West African States (ECOWAS).

Dr. Mishra highlighted key differences. The DCoC, designed from the outset to combat piracy on the high seas, actively seeks international assistance. Conversely, the YCoC prioritizes preserving signatory sovereignty. Additionally, the YCoC incorporates measures absent from the DCoC, such as seizing assets linked to illicit activities, mitigating IUU fishing, and addressing pollution prevention (a broader maritime concern beyond traditional security). Finally, the YCoC uses the term "signatories," while the DCoC uses "participants."

He moved on to explain Africa's Integrated Maritime Strategy (AIM 2050) as a unified effort to revitalize the maritime sector for the continent's development. AIM 2050 aims to leverage Africa's waterways and oceans for the benefit of its maritime industries. Additionally, the African Union (AU) is fostering a maritime security community tailored to Africa's unique needs, experiences, and practices.

He discussed the Lomé Charter, formally known as the African Charter on Maritime Security, Safety, and Development in Africa, signed in October 2016. It builds upon the AIM 2050 Strategy by transitioning maritime security in Africa from a "soft law" approach (non-binding guidelines) to a "hard law" approach with a legally binding treaty. This shift is in contrast to earlier instruments like the DCoC or AIM 2050. Notably, while 25 nations signed the Lomé Charter, only Benin, Senegal, and Togo have ratified it thus far.

In addition to that, he emphasised the AU's focus on promoting sustainable utilization of Africa's ocean resources. He terms the Blue Economy (BE) as the "new frontier for Africa's renaissance," highlighting its significance. The 2018 Sustainable Blue Economy Conference in Nairobi, Kenya, served as a key platform to discuss the applicability of the Blue Economy concept in Africa.

In conclusion, Dr. Abhishek acknowledged the mixed success of various community-based and government-led Blue Economy initiatives in Africa. He argued that social equity and ecological sustainability haven't received the same level of attention as economic benefits. He emphasized that people are the foundation of any successful Blue Economy endeavour. For Africa's Blue Economy development to thrive, it must prioritise social fairness, environmental preservation, and a robust institutional governance framework.

This was followed by Comments from the External Discussants.

Comments and Questions

Following Dr. Mishra’s presentation, the discussion shifted, with Cdr. Abhijit Singh emphasizing the value of the "sea blindness" concept in academic and policy circles. He linked national security postures to global commons management, highlighting how a state's sea blindness or sea consciousness can impact its ability to address global maritime challenges. He argued that fragmented perspectives and challenges to coordination among African nations hinder effective action. He identified poverty and poor governance (extending to maritime domains) as key issues. He also mentioned CRESMAC and CRESMAO as maritime information centers focused on West and Central Africa. He made the case that we have to identify the challenges facing Africa's marine sector and provide a targeted set of solutions. He stated that the lack of an Indian policy perspective in the study is the sole area of concern. Lastly, he said it is essential to assess each of the instruments mentioned above closely.

Dr. Pooja Bhatt then offered insights on Africa's evolving maritime approach. She noted a shift from the basic needs (food, security, and resources) to complex issues like trade, the security of traditional and non-traditional rights, and the intricate legal and technical aspects of addressing these challenges. Moreover, she emphasised the importance of definitions in maritime security. Clear definitions help identify stakeholders and goals, facilitating collaboration. However, excessive focus on definitions can hinder progress. She commended the AU's approach as a valuable model for regional cooperation on maritime security. Dr. Bhatt concluded by urging India to take a leadership role in establishing a dedicated maritime security office within the United Nations, advocating a collective vision from the Global South on maritime security.

This was followed by Comments from the Internal Discussants.

Ms. Ruchita Beri highlighted the historical perception of land as a place to reside and the sea as a passage. This perspective shapes how power and security are traditionally viewed, often neglecting the maritime domain. She pointed to the Berlin Conference's impact on Africa, where colonial powers focused on land wealth and used the seas for resource extraction, neglecting maritime security concerns. She went on to point out the various narratives developed in maritime security, shaped by African think tanks and academics. She urged Dr. Mishra to delve into questions pertaining to the root causes of the conduct of the African nations and the persistence of the problems in the region.

Cmde. Abhay Kumar Singh cautioned against a singular view of African maritime security. He identified two key schools of thought within Africa and argued that security is not solely about laws and standards. Power, strategy, and wealth are crucial elements for effective maritime security, and Africa's challenges in these areas contribute to its maritime insecurity. He asked Dr. Mishra to elaborate on a postmodernist viewpoint, focusing on the rationale for the existence of this information and the reasons behind the state of affairs.

This was followed by Comments from the Floor.

Director General, Amb. Sujan R. Chinoy stated that the whole issue is being explored without delving into the essential question of what it is about Africa's economic growth that genuinely shapes its marine environment. There is undoubtedly substantial economic hardship that exists in the littoral regions, which extends to the marine environment and vice versa. Furthermore, as an Indian researcher studying the topic, he asked Dr. Mishra to consider the Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ) and expand on what specific aspect of the G20 proclamation seems to have been tailored specifically for today's theme.

When the house was opened for questions, a question regarding Africa’s opposition to Western-led security formations was raised. The panelists responded by highlighting China's growing role in African security, noting the 2023 China-Africa Security Forum as a point of geopolitical interest to India.

Vice Admiral Satishkumar Namdeo Ghormade concluded the discussion by emphasising the strategic significance of Africa's resources and location. He attributed the continent's vulnerability to a lack of technology, defensive forces, and the multitude of challenges it faces.

The Report was prepared by Ms. Anusha Khurana, Intern, ALACUN Centre, MP-IDSA.

Monday Morning Meeting Report on Ethiopia’s Maritime Aspirations and Regional Implications April 29, 2024 Monday Morning Meeting

Mr. Mohanasakthivel J., Research Analyst, Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA) made a presentation on “Ethiopia’s Maritime Aspirations and Regional Implications” at the Monday Morning Meeting held on 29 April 2024. The session was moderated by Dr. Abhishek Mishra, Associate Fellow, MP-IDSA. Ambassador Sujan R. Chinoy, Director General, MP-IDSA and the scholars of MP-IDSA attended and enriched the discussions.

Executive Summary

Tensions in the already volatile Horn of Africa have increased as a result of a Memorandum of Understanding (MOU) with Somaliland signed on 1st January 2024 that grants landlocked Ethiopia access to the Red Sea. Any international recognition of Somaliland is interpreted by Somalia as an affront to its sovereignty, because Somalia considers the autonomous region of Somaliland as an integral part of its territory. Consequently, Somalia rejected the Agreement and demanded that it be terminated. This declaration comes at a critical moment when attacks against commercial shipping by Houthi rebels in the Red Sea have increased, which has subsequently caused a severe reduction in marine traffic and commerce in the region. The Agreement is expected to impact Somalia's bilateral relations with Ethiopia and neighbouring Somaliland, but also the Horn of Africa region as a whole. Regional organisations such as the African Union, Arab League, and Intergovernmental Authority on Development (IGAD) have expressed concerns about the Agreement and the possibility of escalating tensions and regional instability. 

Detailed Report

In his introductory remarks, Dr. Abhishek Mishra underlined that the Horn of Africa is on the verge of rising geopolitical tensions and realignment with a number of deals like the Ethiopia and Somaliland deal and the Somalia and Turkiye Agreement taking shape. Mr. Mohanasakthivel J. commenced his presentation by mentioning Prime Minister Abiy Ahmed’s  address to the Ethiopian Parliament in October 2023 on Ethiopia's marine access. 

Prime Minister Abiy Ahmed proclaimed that the Red Sea was Ethiopia's "natural boundary" and that its people could not live in a "geographic prison." He underlined the existential issues linked with access to the Red Sea region, which is becoming increasingly volatile and unpredictable, attracting more actors from far and near due to its strategic economic and political importance. Thus, the Speaker highlighted that being landlocked poses a risk to Ethiopia, as it relies on other littoral states for marine access, protecting its interests, and defending against any national security danger emanating from the Red Sea. Within a week after PM Ahmed’s speech, the Ethiopian Ministry of Peace issued an outline statement, declaring that Ethiopia will take all necessary steps to safeguard port access. Ethiopia's Prime Minister agreed with protecting port access peacefully but cautioned that force may be used if required. 

Subsequently, on 1 January 2024, Ethiopia and Somaliland signed a Memorandum of Understanding (MoU), giving Addis Ababa direct access to the Gulf of Aden. This strategic Agreement cleared the way for Ethiopia to construct commercial and military sites along the coastline. Under this arrangement, Somaliland has leased to Ethiopia 20 kilometres of its coastal land for 50 years. Ethiopia has agreed to provide Somaliland an interest in one of its profitable state-owned firms, Ethiopian Airlines. It is also considering recognition of Somaliland as an independent state. However, neighbouring coastal governments of Somalia, Djibouti, and Eritrea, have raised concerns regarding the Agreement. 

The Speaker highlighted the history of Ethiopia's maritime quest by mentioning that since Eritrea's 1993 secession from Ethiopia, the latter has remained landlocked, thereby putting an end to the Ethiopian Navy which was started in 1950’s. At first, Ethiopia was compelled to transfer its maritime resources to ports in Yemen. However, Ethiopia's naval presence was completely disbanded by the mid-1990s due to its eventual ejection from Yemen and failure to uphold its leasing Agreement in Djibouti. 

Ethiopia remains reliant on the stability of its coastal neighbours due to a lack of its direct access to the sea. Since then, it has attempted a variety of methods to secure access to the ocean. It entered into an Agreement with Djibouti in 2002. As a result, over 95 per cent of its import-export traffic now passes through Djibouti's port via the Addis-Djibouti corridor. Ethiopia also purchased a 19 per cent share in Somaliland's Berbera Port in 2018 as a means of diversifying its maritime access points.

Mr. Mohanasakthivel J. emphasised on the importance of ports for Ethiopia, stating that Ethiopia's trade is strongly dependent on access to ports for international commerce. This is owing to the bordering countries' insufficient capacity to absorb Ethiopian goods. Despite having several potential ports, logistical obstacles prevent their use. In his overview of potential ports for Ethiopia, he mentioned the Ports of Sudan, Djibouti, and Tadjourah, Eritrea's Massawa and Assab, Somaliland's Berbera, Somalia's Mogadishu and Kismayo, and Kenya's Mombasa and Lamu. 

Ethiopia relies on the Port of Djibouti for 95 per cent of its foreign trade, with the Ports of Berbera and Sudan accounting for the remaining 5 per cent. Ethiopia's principal economic channel has been the Red Sea port of Djibouti, giving Djibouti a virtual monopoly on Ethiopian trade. However, Djibouti costs Ethiopia over a billion dollars in port fees each year. This is a large sum considering that over one-fifth out of Ethiopia’s 120 million population relies on food aid. 

With respect to Somalia, the Speaker noted that the arrangement will have an impact on the dynamics of the country's relations with its two neighbours – Ethiopia and Somaliland, with whom it has a history of intra-regional disputes and conflicts. The Somali Government asserts that Somaliland is an autonomous state within Somalia, and that only the Somali Government has the authority to lease its land to foreign forces. 

Somalia considers the Agreement to be an infringement of its sovereignty, and in reaction it has expelled the Ethiopian Ambassador and recalled its Ambassador from Ethiopia.  The Somali Administration also insists that there is no intention of negotiation with Ethiopia and has threatened serious escalation if Ethiopia proceeds with the Agreement. However, a clash between Ethiopia and Somalia seems unlikely. 

While discussing regional dynamics, the Speaker mentioned that Egypt has been critical of the transaction as an obvious infringement of Somalia's sovereignty. President Sisi emphasised that Egypt stands shoulder to shoulder with Somalia and has urged Ethiopia to seek benefits from seaports in Somalia and Djibouti through transitional measures rather than attempting to control another country's territory. Egypt's objection to Ethiopia's deal with Somaliland is partly affected by its ongoing dispute with Ethiopia over the Grand Ethiopian Renaissance Dam on the Nile River.

Furthermore, if this Agreement is implemented, Djibouti will experience a decrease in commercial transit as well as a loss of Ethiopian annual fees, as revenues from ports and foreign military bases are Djibouti's principal source of income. Djibouti's port handles more than 95 percent of Ethiopia's trade, contributing to about 75 per cent to its GDP. Djibouti is dissatisfied with the fact that Somaliland has become Ethiopia's preferred maritime and commercial partner. 

With regard to Eritrea, the Speaker mentioned that no other country felt the threat as much as the Eritreans did as both countries have a history of hostility. In 1998, both the countries went to war, which ended in 2000 with the signing of the Algiers Agreement. Nevertheless, tensions developed, as Ethiopia refused to abide by the Agreement, which required Ethiopia to cede territory to Eritrea.

Between 2002 to 2018, both countries were in a state of no conflict or peace. Eventually, Abiy Ahmed and Isaias Afwerki met in 2018, this signified the end of the state of war, resuming diplomatic ties, trade, and travel between the two states. However, cooperation deteriorated as unsolved issues and antagonism persisted. 

Ethiopia's loss of the Red Sea coast to Eritrea fuels fear of encirclement by Arab powers as the Arab League members, including Egypt, Djibouti, and Sudan, control key ports. Potential Arab attacks from the Red Sea ports have seemed to heighten Ethiopia's security concerns. Moreover, Ethiopia has been consistently denied an observer status by the Council of Arab and African Littoral States of the Red Sea and Gulf of Aden. Since all the coastal countries have denied Ethiopia access to sea, the Speaker noted that the littoral states must develop a regional mechanism for the Red Sea rather than relying on their Arab neighbours, who may exploit the current rift. Although the Maritime Treaty may include certain concessions in favour of Ethiopia, the littoral states are unlikely to be interested in providing a naval base other than Somaliland.

It is worth noting that Ethiopia is the security guarantee for Somaliland, although it is yet to recognise Somaliland since the Agreement was signed. Formal recognition could strengthen the UAE's relationship with Somaliland, potentially leading to increased investments and development projects in the region. Recognition by Ethiopia, Kenya, and the UAE may persuade other countries to consider Somaliland as a state. 

Lastly, the Speaker stated that there is no possibility of war in the near future because Ethiopia had lost many of its officers during the Tigray Battle. The country’s military is thinly scattered and faces numerous obstacles, particularly in the Amhara and Oromia areas. Its economy is still struggling to recover from a civil war in the northern Tigray region that ended in 2022.  Moreover, it is facing a severe foreign-currency shortage.

Questions and Comments

Amb. Sujan R. Chinoy, congratulated Mr. Mohanasakthivel J. for providing a detailed picture of regional dynamics in the Horn of Africa, focusing on Ethiopia's maritime ambitions. He stated that, in theory, landlocked countries have the right to reach the sea under Article 126, Clause 10. However, this must be negotiated and transit states must be confident in their own security. As a result, the issue boils down to negotiating with neighbouring countries. Amb. Chinoy inquired about India's stance on the port, considering that the Agreement between Ethiopia and Somaliland has significant complications. 

Dr. Deepika Saraswat, observed that the UAE plays an important role in the changing dynamics of the region.

Cmde. Abhay Singh explained the intricacies of the UNCLOS with respect to the status of the landlocked states and transit rights. In addition to that he further explained that Djibouti’s economic reliance on Ethiopia is 75% of its GDP.

Dr. Abhishek Mishra inquired about the international response to the port arrangement. He further enquired about the position of Somalia and the Arab Council on the Agreement. He also inquired how the citizens of both Somalia and Somaliland have reacted to the port arrangement. 

Mr. Mohanasakhtivel J. provided insightful answers to the questions and comments raised by the Director General and the MP-IDSA scholars.

The report was prepared by Ms. Anusha Khurana, Intern, ALACUN Centre, MP-IDSA. 

Report of Monday Morning Meeting on Iran-Israel Confrontation: Escalation Amid the Gaza War April 22, 2024 Monday Morning Meeting

Dr. Deepika Saraswat, Associate Fellow, Manohar Parrikar IDSA, presented on “Iran-Israel Confrontation: Escalation Amid the Gaza War” at the Monday Morning Meeting held on 22 April 2024. Dr. S Samuel C Rajiv, Associate Fellow, Manohar Parrikar IDSA, moderated the session. Scholars of the Institute attended the meeting.

Executive Summary

The tit-for-tat exchanges between Israel and Iran starting 1 April 2024 have heightened tensions in the region. The presentation gave an overview of the escalation of the ‘Shadow War’ between the two countries. It provided an understanding of Iran’s strategies of the ‘Axis of Resistance’ and the ‘Unification of Arenas’ and Israel’s strategy of ‘Octopus Doctrine’ and threat perception of a ‘Ring of Fire’. The recent events have displayed that Iran is willing to take the risk of directly striking Israel, and this constitutes the new normal.

Detailed Report

Dr. Saraswat began the presentation by providing an understanding of Iran’s strategies from the ‘Axis of Resistance’ to the ‘Unification of Arenas’. The Iranian strategy of Axis of Resistance, an asymmetric strategy, emerged as a counter to the US designation of Iran as a member of the ‘Axis of Evil’.  Iran has made the Israel-Palestine issue the centrepiece of its Axis of Resistance strategy, where it has supported groups like Hamas and Palestinian Islamic Jihad since the early 1990s, and Hezbollah since the 1980s. The Axis of Resistance allows Iran to expand its deterrence way beyond its geographical borders. Iran wants to fight threats even before they reach its borders. Iran also follows a strategy of war avoidance, where it wants to avoid any direct war with the US, but at the same time deter its adversaries from attacking. Dr. Saraswat noted the Islamic Revolutionary Guard Corps’ (IRGC) mobilisation of Shia militias in Iraq and Syria to fight ISIS, which posed a threat to Iran.

The Speaker observed that in the absence of a proper air force, the Iranian missile program is a key pillar of its forward defence strategy. The IRGC’s missile force has emerged as a major branch over the years. Iran has focused more on enhancing the precision strike capabilities of its missiles. The missiles have a range of around 2000 km so as not to antagonise the Europeans, but the range covers the whole of the Middle East region thus placing the US military bases in the region within its strike capability.

Dr. Saraswat noted that the Iranian strategy of the Unification of Arenas is more visible in the aftermath of the 7 October 2023 attacks by Hamas on Israel, which was followed by the integration of Hezbollah from Lebanon, the Shia militias in Iraq, and the Houthis in Yemen into the campaign against Israel. Iran has supplied precision missiles to Hezbollah, while Hamas has demonstrated its capacity to launch thousands of unguided rockets.

The Speaker then highlighted Israel's ‘Octopus Doctrine’ and threat perception of a ‘Ring of Fire’. Israel’s Octopus Doctrine is based on the principle that Iran is the head of the octopus, while the proxy militias that it supports are its tentacles. This strategy has now evolved into directly attacking Iranian personnel in Syria and Iraq, and not just proxies like Hezbollah. Israel has opposed the Iranian nuclear program and has always portrayed Iran as a threat so as to keep the US involved in the region alongside Israel. The concept of Ring of Fire is based on the surrounding of Israel by Iranian-backed forces, with Hezbollah in Lebanon, Hamas and Islamic Jihad in Gaza, and foreign militias in Syria, and it is the Israeli counter to Iran’s Axis of Resistance.

Dr. Saraswat spoke at length about the Shadow War tactics applied by Israel on Iran, which gathered pace in the wake of the US’s ‘Maximum Pressure’ campaign against Iran. She flagged the July 2020 explosion that hit a centrifuge assembly facility near the city of Natanz. Israel has also carried out targeted assassinations of Iranian nuclear scientists over the past decade. Israeli intelligence seems to have penetrated Iranian society as shown by attacks and assassinations of security figures inside Iran. Shadow war has been persistent in the cyber domain with tit-for-tat cyberattacks on civilian infrastructure. The shadow war has also played out in the sea where Israel has attacked Iranian oil tankers and also shipments of weapons to Syria and Hezbollah. Iran has also retaliated with attacks on Israeli-linked shipping companies like the Zodiac Maritime in the Gulf of Oman.

Israel’s attack on the Iranian Consulate has set new rules of engagement, as per the Speaker. Iran’s retaliatory strikes on Israel have shown Iranian capability to directly strike Israel. The Israeli counter response has not majorly escalated the existing tensions, and has been seen as ‘de-escalatory’ in Iran.

Dr. Saraswat concluded by stating that the situation remains de-escalatory as of now, as the US wants to avoid any regional war at this time. She stated that recent events have ensured that Iran’s asymmetric strategies seems to have run their course and in response to Israel’s direct targeting of Iranian soil, Iran is willing to take the risk of directly striking Israel, and this constitutes the new normal.

Questions and Comments

Dr. Rajiv Nayan in his remarks pointed out that the Iran-Israel conflict retains significant asymmetric contours given that non-state armed groups still constitute a critical element of Iran’s strategy to counter Israel. The Houthis and the Hezbollah were also involved in the direct coordinated attacks against Israel.

A number of important queries and comments were made regarding Iran’s nuclear capability, its missile defence program and its aspiration for the leadership of the Islamic world. Questions were also raised about why Israel’s retaliatory attacks were non-escalatory and why it did not take the chance to destroy Iran’s nuclear facilities. The role of the US in the conflict and whether Israel wanted the involvement of the US in a larger way was also questioned.

Dr. Deepika Saraswat gave comprehensive responses, addressing the comments and questions from the Institute’s scholars. She emphasised that the decision to develop a nuclear weapon is a political one and Iran might not be willing to take that risk easily. She also emphasised on how the Iranians have put their best bet on their missile defence systems for their security. She reiterated that the current situation displays the new normal and also points out that the US does not want to risk a regional war at the moment.

After the Q&A session, the Chair gave his closing remarks and ended the meeting.

Report was prepared by Mr. Farhan Khan, Intern, West Asia Centre, MP-IDSA.

Monday Morning Meeting on Evolving Trade and Investment Ties with Europe April 15, 2024 Monday Morning Meeting

Dr. Swasti Rao, Associate Fellow, Europe and Eurasia Centre, Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), made a presentation on “Evolving Trade and Investment Ties with Europe” at the Monday Morning Meeting held on 15 April 2024. The session was moderated by Ms. Anandita Bhada, Research Analyst, Europe and Eurasia Centre, MP-IDSA. Scholars of the Institute attended the session.

Executive Summary

On 10 March 2024, member states of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway, and Switzerland – and the Republic of India signed a comprehensive Trade and Economic Partnership Agreement (TEPA). It is a USD 100 bn Free Trade Agreement (FTA) with the four non-European Union nations under which India will lift most import tariffs on industrial products from these countries in return for the investment over 15 years. The investments will be done across a range of Indian sectors, including pharmaceuticals, machinery and manufacturing.

Detailed Report

Ms. Anandita Bhada, in her opening remarks provided an overview of India’s recent trade agreement with the European Free Trade Association (EFTA). She noted that the negotiations between EFTA and India started in 2008 and the agreement was signed in March 2024. However, the deal is still to be ratified by the countries. She also mentioned the India-EU FTA, which is still under negotiation. In terms of collaboration on import and export of goods, EU is India’s second largest partner whereas India is EU’s tenth largest partner. Over the years, this partnership has seen several rounds of negotiations, however, there still remain disagreements regarding the technical barriers to trade, imports and pharmaceuticals. With regard to the India-UK FTA, Ms. Bhada noted that some developments could happen before January 2025, as it is said to be in its last stage.

Dr. Swasti Rao commenced her presentation by highlighting a list of 10 commandments for Free Trade Agreements (FTA) to conduct trade negotiations as given by John Clarke, EU’s former trade negotiator. Her presentation was divided into the India-EU FTA which is under negotiation, India-UK FTA, which is also under negotiation, and recently signed Trade and Economic Partnership Agreement (TEPA) which is India’s trade deal with the EFTA, showcasing its strategic importance which is being viewed as a success.

Dr. Rao emphasised that the EU, the United States of America (US), the UK are one of the largest sources of Foreign Direct Investment (FDI) in India. She also pointed out that India has not been able to utilise the full potential of China +1 diversification, as most of the diversified investments from Europe are going to countries like Vietnam and Bangladesh. According to Dr. Rao, one of the reasons for this is India’s reluctance to agree on bilateral investment guarantees that the investor countries insist on. India prefers the multilateral approach towards investment through the World Trade Organisation (WTO) framework, whereas the western countries stress more on bilateral investment guarantees which are more case-specific and country-specific. In case of the UK or the EU, one could see that enhancing trade ties and bilateral investments with India are considered a part of their larger foreign policy objectives like friendshoring.

Dr. Rao noted that when it comes to dispute settlements as well, India prefers the WTO framework whereas the western countries prefer bilateral arrangements. She also noted that traditionally India has had high tariff barriers and a protectionist approach to safeguard its small and medium-sized enterprises (SMEs) from foreign competition. She pointed that the Indian Government prefers to have a sector-by-sector approach for analysing the pros and cons in reduction of tariffs in sensitive areas. She highlighted that the idea of ‘Make in India’ is to first boost the manufacturing in India and then merge it with the global supply chains.

Dr. Rao further stated that when the current government came to power in 2014, it had suspended all FTAs and scrapped the Bilateral Investment Treaties (BITs), as India’s exports had not increased much in the past decade. She illustrated that most FTAs, like the ones with the Southeast Asian partners, were not technically advantageous to India as they did not provide India with significant export surplus. Thus, the government launched an FTA Review in 2019. This review delved into the details of India’s low FTA utilisation, Respective Comparative Advantage, non-tariff barrier issues and the solutions to them. The Review addressed the challenge of India incurring trade deficit despite the FTAs. After 2019, the government’s approach to FTAs has been to rectify the export deficit which has been on a rise. Dr. Rao referred to the gradual increase in trade deficit from 2019 until 2023 where the top two deficits are recorded with China (approximately USD 100 bn) and Russia (USD 35 bn) due to India’s oil purchases.

In 2021-22 India re-launched its FTA negotiations. These have been referred to as the ‘New Age FTAs’ as there is a tangible push towards finalising FTAs with western countries (UK, EU, EFTA), UAE and with the African partners. The post-COVID learning here is to actively build resilience of supply chains and overall economic security instead of merely trade. The government has been trying to link the FDI to production linked incentive schemes. There has been increased focus on natural trading partners (UAE, UK, Australia) with whom not only has the trade been in export surplus but there is also presence of resilient supply chains. The New Age FTAs have also focused on the service sector as compared to the old ones which were more focused on goods. While India’s overall trade in goods and services has increased manifold, the factor of mobility remains a hurdle in the FTAs with UK and EU, as India would like to have more mobility and countries such as the UK, are stringent about it. Further, the New Age FTAs are focused on improving the Logistics Performance Index (LPI) by lowering it from 13-14 per cent of GDP to 10 per cent under the National Logistics Policy.  

Dr. Rao highlighted that the India-UK FTA, which is still under negotiation, has 26 chapters. So far, there has been progress made on 24 chapters. Despite the bilateral trade in goods and services reaching USD 38 bn in 2023, tariff barriers remain one of the main concerns apart from mobility. The average tariff on exports from India is 4.2 per cent but on imports from the UK is 14.6 per cent. An example mentioned was the UK wanting India to reduce taxes on the electric vehicles (EV). One of the important takeaways according to Dr. Rao is that, the likely change in the UK to a labour government might lead to more flexible rules on mobility and visas.

Coming to India’s FTA negotiations with the EU and the EFTA countries in Europe, Dr. Rao emphasised that the EU is a customs union and has a single market whereas the EFTA countries are not a customs union. When it comes to FTAs with EFTA countries, India has a separate arrangement for all the four nations. It is different in the case of the EU, which operates as a single economic bloc. The agreements between India and the EU were suspended in 2013 and then re-launched in 2021. Upon the re-launch, the FTA was broken down into three separate negotiations – free trade agreement in goods and services, Bilateral Investment Treaty (BIT) and a treaty on geographical indicators.  Dr. Rao stated that one of the problems with the EU is the Carbon Border Adjustment Mechanism (CBAM) and the bloc’s stringent sustainability agenda, which is creating issues in their domestic markets as well. As an example, she mentioned the import of Ukrainian grains that are causing problems in Poland and Czech Republic due to the EU’s stringent rules for its own member states as compared to its liberal rules for Ukraine. The CBAM provisions are mentioned in the European Green Deal, and the EU wants all its FTAs to have this provision. This would create further problems for international trade agreements as CBAM would make it very expensive to export products with a high carbon footprint like steel or aluminium.

Regarding dispute settlement, Dr. Rao pointed out that the EU has proposed setting up an independent investment court system as a part of the dispute settlement mechanism under the investment protection act, which is not confined to the WTO. India on the other hand, prefers the WTO framework. The India-EU FTA is at the second stage of negotiations and has a long way to go. However, according to her, until the issues surrounding CBAM, the BITs and domestic hurdles are not addressed, the FTA might not reach an agreement.

Reflecting on the EFTA FTA, Dr. Rao stated that it is an exceptional agreement. The USD 100 bn investment commitment mentioned in the agreement is not legally binding but is an explicit obligation on the EFTA countries to encourage their private players to invest in India over the next 15 years. Under this FTA, India has opened its markets but not its sensitive sectors. Dr. Rao also pointed out that since economic relations among these countries and blocs are excellent, TEPA could act as a catalyst for the UK, the EU and other FTAs and pave the way forward. TEPA is a win-win situation, simply because India has given the EFTA member states access to its markets in lieu of the USD 100 bn investment promise. Additionally, what makes it more exceptional is that if the investment promises are not adhered to, both parties can review the situation and withdraw trade concessions.

Lastly, Dr. Rao emphasised that all the FTAs are different and there cannot be one standard rule for all. Thus, countries need to negotiate keeping in mind the differences in situations.

Q & A Session

Gp Capt (Dr.) RK Narang (Retd.), enquired about the lost opportunities in FDIs for technology-oriented collaboration and trade imbalance with European countries like France. He also enquired about the service sector focused versus manufacturing sector focused approaches of Europe.Dr. Gulbin Sultana, inquired about specific Indian sectors which could benefit from the EFTA FTA and the impact of India’s exports to the EFTA nations.

Dr. Deepika Saraswat, questioned about Europe’s approach to negotiating FTAs considering the current global geopolitical developments.

Dr. Ashok Behuria, stressed on the protectionist approach of developing countries, the removal of tariff barriers on imports and its impact on domestic industries. He also inquired about the EU and the UK FTA negotiations with China as compared to those with India.

Dr. Anand Kumar, commented on increased imports from ASEAN as compared to India’s exports to the bloc. He also inquired about the type of investments that countries like Vietnam and Bangladesh are receiving.

Dr. Rajiv Nayan, observed that in a globalized world all countries (even the West) are protectionist in nature and try to safeguard their interests.

Dr. Swasti Rao responded to all the comments, questions and observations. She highlighted how FTAs help in facilitating trade between countries by increasing imports and exports. She concluded by stating that the EU FTA would not go forward in its current form as the CBAM provision seems completely against Indian economic interests. Thus, the EU needs to become more flexible in their sustainability agenda and the Green Deal.

Report has been prepared by Ms. Anusua Ganguly, Intern, Europe and Eurasia Centre, MP-IDSA.

Monday Morning Meeting on “Formation of Government in Pakistan: Challenges Ahead” March 04, 2024 Monday Morning Meeting

Dr. Ashish Shukla, Associate Fellow, Manohar Parrikar IDSA (MP-IDSA), spoke on “Formation of Government in Pakistan: Challenges Ahead” at the Monday Morning Meeting held on 04 March 2023. The session was moderated by Dr. Ashok Behuria, Senior Fellow, MP-IDSA. Ambassador Sujan R. Chinoy, Director General, MP-IDSA and the scholars of the Institute attended the meeting.

Executive Summary

Pakistan faced considerable hurdles both prior to and following its 2024 national elections. Following the elections, the formation of a government was a bit complex and tricky due to a number of reasons including a hung assembly amid allegations of electoral malpractice.  This impasse prolonged political uncertainty as the parties could not agree on a power sharing formula. In the end, external pressure compelled parties to reach a consensus, underscoring the role of non-political entities in shaping political outcomes. These events highlighted the vulnerabilities of Pakistan's democratic framework and governance mechanisms.

Detailed Report

In his opening remarks, Dr. Ashok K. Behuria offered a brief overview of recent developments in government formation and political dynamics in Pakistan. He said that contrary to expectations, political engineering resulted in bringing Shebaz Sharif instead of Nawaz Sharif at the front. He also highlighted Punjab’s significant influence on electoral outcomes and its implications for political stability in Pakistan.

Dr. Ashish Shukla began his presentation with Pakistan’s electoral history, marred by allegations of rigging and manipulation. He held that the December 1970 elections were the most free and fair elections in Pakistan’s political history. Speaking of the recent February 2024 election, he argued that the trend of not having a free and fair election continued amidst polarisation and volatility as the key opposition figures faced coercion and were arm-twisted to behave in a particular manner. The return of Nawaz Sharif from exile marked a significant development in domestic politics, and many questioned the way he became re-eligible to contest elections and lead his party. He also underlined the fact that Pakistan Tehreek-e-Insaf (PTI) was denied its election symbol at the last moment leading to all its candidates being treated as independents. Instead of a fair contest among various political parties, the election seemed to have been a battle between PTI’s third-tier leadership and the security establishment. Dr. Shukla also noted that the electoral process lacked its usual vibrancy and enthusiasm, attributed to deliberate targeting of PTI, facilitation of Nawaz Sharif, fear of violence, and security concerns related to persisting terrorist threats.

Voter turnout remained an important indicator of democratic health, reflecting the electorate's engagement in the electoral exercise. Dr. Shukla highlighted that the average voter turnout in Pakistan's last 12 General Elections, including the most recent one, has been around 48.19%. While turnout has varied over the years, with the highest recorded in 1977 and the lowest in 1997, the recent elections witnessed a voter turnout of 47.8 per cent. Further, Dr. Shukla provided an overview of each party's performance in various provinces. The election results showed PTI-independents securing 92 out of 266 available seats nationally, followed by Pakistan Muslim League- Nawaz (PML-N) with 75 seats, Pakistan People's Party (PPP) with 54 seats, and Muttahida Qaumi Movement (MQM) with 17 seats. He expressed concern about the growing influence of hardliners like Tehreek-e-Labbaik Pakistan (TLP) in specific regions. Furthermore, he emphasised that despite attempts by the security establishment to limit PTI's impact, PTI and Imran Khan retained their significance, with their numerical vote share increasing alongside PML-N, PPP, and MQM. Dr. Shukla also highlighted the underperformance of religious parties such as Jamaat-e-Islami (JI) and Jamiat Ulema-e-Islam (JUI), while new political entities like PTI-P encountered huge setbacks.

Throwing light on the process of government formation in Pakistan, he noted that no single party secured majority. He assessed that despite attempts by major parties like PTI and PML-N to lead, disagreements persisted, leading to a deadlock in negotiations, particularly between PML-N and PPP. However, a stern warning from the establishment compelled them to reach an agreement, facilitating progress in government formation.

Discussing the challenges before the State, Dr. Shukla said that the new government in Pakistan faces a complex array of challenges on multiple fronts. He said that the external support offered by the PPP weakens the Prime Minister's position, raising doubts about the government's stability and ability to govern effectively. Additionally, disputes over the electoral process have led to protests by the opposition, particularly the PTI, further contributing to political instability. Economic challenges, including high external debt and the need for IMF support, add to the government's woes.

Furthermore, he assessed that internal security concerns are heightened by the resurgence of militant groups like the Tehreek-e-Taliban Pakistan (TTP), fuelled by developments in neighbouring Afghanistan. Tensions with Afghanistan and the risk of missteps in foreign policy, particularly concerning India, pose significant threats to regional stability. Balancing relations with key players like China and the United States is essential for economic stability and security in Pakistan. Overall, he underlined that the government must navigate these challenges carefully to ensure stability and progress in the country.

Questions and Comments

Ambassador Sujan R. Chinoy, DG, MP-IDSA complimented Dr. Shukla's comprehensive presentation, while emphasising the importance of understanding Pakistan's internal dynamics. Following this, he posed a series of questions and observations regarding the challenges facing the new government. These queries ranged from how the government plans to navigate the complex legal environment to the evolving role of the army in Pakistan's democratic landscape. He also asked about potential initiatives the new government might undertake in its relations with India, considering the need for innovative approaches to regional security.

Additionally, the scholars raised pertinent points about the challenges confronting the new government, behaviour of voters during elections, public perception about the army and Pakistan’s domestic as well as international priorities post- government formation.

Dr. Ashish Shukla responded to the comments made by the Director General and the questions raised by MP-IDSA scholars.

Report prepared by Ms. Sneha M, Research Analyst, South Asia Centre, MP-IDSA.

Monday Morning Meeting on Khalistan Movement Overseas: A Case Study of Canada April 01, 2024 Monday Morning Meeting

Mr. Abhishek Verma, Research Analyst at the Manohar Parrikar Institute for Defence Studies and Analyses, made a presentation on “Khalistan Movement Overseas: A Case Study of Canada” at the Monday Morning Meeting held on 1 April, 2024. The session was chaired by Mr. Shantanu Sinha, Research Fellow, MP-IDSA. Ambassador Sujan R. Chinoy, Director General, MP-IDSA, Gp. Capt. (Dr) Ajey Lele (Retd.), Deputy Director General, MP-IDSA and the scholars of the Institute were in attendance.

Executive Summary

India’s relationship with Canada has been impacted by the recent surge in pro-Khalistan-related activities in Canada. The Government of India needs to follow a dual approach, keeping diplomatic engagement intact while putting pressure on the Canadian Government to address India’s security concerns.

Detailed Report

Mr. Shantanu Sinha began the meeting by mentioning the surge in pro-Khalistan activities in recent years. He further alluded to the recent developments in North America that have impacted India’s relations with the United States and Canada. Subsequently, he invited the Speaker to make his presentation.

Mr. Abhishek Verma began his presentation by noting India’s response to recent allegations made by Canada, which have been widely covered in the media and which led to diplomatic tension between the two sides. Subsequently, he classified pro-Khalistan and anti-India activities into three categories- protests, referendums and vandalism. Further, he explored the demographic dimension of the Sikh diaspora in Canada and traced the community’s migration from India. The migration of the Sikh community has taken place in four distinct phases.

The first phase started in 1897 when Sikhs in the British Indian Army migrated to Canada for the coronation ceremony of Queen Victoria. The migration of Sikh soldiers (especially those stationed overseas) became more prominent after the end of First World-War. This phase of migration was driven by aspirations for a better quality of life in Canada, in addition to the adverse fiscal and economic conditions prevailing in India.

The second phase of Sikh migration began during the 1950s and 1960s. In this phase, educated and trained professionals started migrating to western countries in pursuit of employment opportunities. Subsequently, the third phase commenced in the 1970s as a result of the agrarian transition brought about by the Green Revolution. The Green Revolution led to an increase in the number of large landowners, alongside a steep decline in the small and medium landholders. The semi-skilled, unemployed and educated youth from the distressed farming community started migrating overseas in search of opportunities. The fourth and the largest phase of migration took place during the phase of Punjab militancy. During this phase, Sikhs charged with terrorism, predominantly the youths, started migrating to Canada.  

Subsequently, Mr. Verma traced the genesis of the Khalistan movement overseas to religious mobilization in the 1950s. At the time, Sikh industrial workers in the United Kingdom started facing restrictions to profess their religion and to display their religious identity. To put forth their grievances, the Sikh community started organising themselves under Sikh Home Rule Movement led by Sardar Charan Singh Panchi. Following this, Mr. Verma elaborated on the evolution of Khalistan movement overseas from 1970s to late 1980s, including the bombing of Air India Flight 182 in 1985 that killed 329 passengers on board. With the end of militancy in Punjab in the mid-1990s, support for the Khalistan project also dwindled among the Sikh community overseas. Following the attacks on 11 September, 2001 in the United States and subsequent War on Terror, the United States, Canada and the United Kingdom banned terrorist groups like Babbar Khalsa International and International Sikh Youth Federation.

In the light of a major crackdown on their functioning, the pro-Khalistan elements in Western countries shifted their strategies and continued their secessionist activities through the politics of grievances and human rights. One of the prominent organisations that emerged as an international advocacy and human rights group was ‘Sikhs for Justice’. Since its inception, "Sikhs for Justice" has been engaged in frivolous anti-India activities, including filing cases against Indian leaders and celebrities in US courts as well as issuing security threats related to flight travel.

Further, Mr. Verma explained the Canadian Government’s approach towards pro-Khalistan and anti-India activities in Canada. At the outset, he asserted that Canada's approach toward pro-Khalistan activities was largely influenced by three overarching factors: Cold War politics, political freedom of expression, and vote bank politics. During the Cold War, successive Canadian Governments, irrespective of parties, provided least priority to India’s sensitivities. While tolerating anti-India activities on Canadian soil, they adopted a lenient approach towards pro-Khalistan elements. However, the political dynamics changed since the end of Cold War. Although India’s relationship with the west improved, in general, the Canadian Government maintained that the right to freedom of expression was important and advocating Khalistan's homeland in Punjab was not illegal. By providing a synoptic overview of the current political dynamics in Canada, Mr. Verma concluded that vote bank politics largely influences the current Justin Trudeau Government’s attitude towards the Khalistani movement.

The Government of India has responded proactively to such anti-India activities. In addition to consistently and explicitly taking up the issue of Khalistan with the Canadian Government, successive Indian Governments have also pursued extradition of Khalistani and anti-India elements. However, extradition of Khalistani terrorists has remained negligible even after the signing of an extradition treaty in 1987. Domestically, the Government of India has taken measures such as banning pro-Khalistani websites and social media platforms. Furthermore, amendments to the Unlawful Activities (Prevention) Act of 1967 have been implemented to designate individuals as terrorists and to streamline the process of investigation and asset seizure.

Questions and Comments

While appreciating the Speaker’s presentation, Mr Sinha invited the Director General and Deputy Director General to make their comments.

Ambassador Sujan R. Chinoy, DG, MP-IDSA, complimented Mr. Verma for making an informative presentation while emphasising the fact that it is not unusual for foreign communities to influence domestic policies. Further, he made observations concerning the adverse implications of migration during the Punjab militancy phase, as well as the non-secular tradition of western countries.

Additionally, scholars raised pertinent points concerning the ineffectiveness of the Extradition Treaty of 1987, the nexus between Pakistan and Canada, and the role of the Inter-Services Intelligence (ISI) in the Khalistan movement. Inquiries regarding recent events in Canada and the United States were also made.

During the Session, both the Speaker and Moderator addressed the questions raised by the scholars. Mr. Sinha provided insights into the legal and investigation-related complexities inherent in the extradition process. He underscored that the success of an extradition treaty hinges not only on legal intricacies but also on bilateral relations between the involved countries and political will. Regarding the role of the ISI, Mr. Sinha mentioned that the territorial boundaries of the fictitious state of “Khalistan” do not include Pakistani territories which have Sikh history, for example, Nankana Sahib, the birthplace of the first Sikh Guru, Guru Nanak Dev. This absence within the purported territorial extent of "Khalistan" was highlighted by Mr. Sinha as indicative of the ISI's involvement.

Report prepared by Ms. Julia Jose Thachil, Intern, Counter Terrorism Centre, MP-IDSA.

Monday Morning Meeting on Understanding China and Pakistan’s UAV Capabilities March 18, 2024 Monday Morning Meeting

Gp. Capt. (Dr.) Rajiv Kumar Narang (Retd.), Senior Fellow at the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), made a presentation on Understanding China and Pakistan s UAV Capabilities” at the Monday Morning Meeting held on 18 March 2024. The session was moderated by Col. (Dr.) Rajneesh Singh (Retd.), Research Fellow, MP-IDSA. The scholars of MP-IDSA attended the meeting.

Executive Summary

The presentation provided a comprehensive overview of the Unmanned Aerial Vehicle (UAV) programs of both China and Pakistan, spanning from their inception to their current known status. It underscored Pakistan’s collaboration with China and Turkey in advancing this technology and its implications for India.It also delved into questions such as why China is emerging as a UAV power and also contemplated on India s UAV projects.

Detailed Report

Col. Rajneesh Singh, in his opening remarks, emphasised that the concept of UAVs is not new and has existed for a considerable period. He noted historical instances such as the use of drones for target practices during World War II and unmanned helicopters during the Cold War. Furthermore, he highlighted the democratization of drone development, previously dominated by the US and Israel, which has now become widespread and is operationalised in various conflicts globally. Drones are also increasingly being used by non-state actors for various purposes.

Gp. Capt. Narang shared a brief anecdote of how he was introduced to Pakistan's UAV development programme in 2015 and his follow up research on evolution of Pakistan’s UAV industry from late 1990s. Regarding China, he discussed the role of the Aviation Industry Corporation of China (AVIC) that was established in 1951 as the Bureau of Aviation Industry and renamed AVIC in 2006. Other notable institutions in China s UAV landscape include Guizhou Aviation Industry Import/Export Corp (GZAIEC), Xi'an ASN Technology Group Co. Ltd., China Aerospace Science and Technology Corporation (CASC), and China Aerospace Science and Industry Corporation (CASIC).

China’s drone program commenced with the reverse engineering of Russian La-70 target drone that was undertaken at Weapons Test and Training Base in early 1960s by a team led by Gen. Zhao Xu of Peoples’ Liberation Army Air Force (PLAAF)’. The Cai Hong-3 (CH-3), an armed UAV manufactured by CASC, was initially showcased in 2008. Subsequently, the CH-4 took its maiden flight in 2011. Notably, the CH-5 (MQ-9 Reaper Class) having a payload capacity of 1200 kilograms made its first flight in 2017. WJ-600, a jet-powered UAV manufactured by CASIC, was first displayed at an airshow in 2010.

Gp. Capt. Narang further elucidated how China s UAV R&D followed a trajectory marked by setbacks and extended development timelines. He also emphasized the significant role played by research universities in China, such as Nanjing University of Aeronautics & Astronautics (NUAA), Shenyang Aerospace University (SAU), and Beijing University of Aeronautics and Astronautics (BUAA).

In China, several indigenous UAV programs feature locally developed engines, and there have been efforts to develop supersonic UAVs as well. China is also actively working on miniaturisation of weapons and sensors for UAVs. Furthermore, China has a UAV swarm programme, which included few world record quadcopter UAV swarm displays since 2018. China has exported UAVs to countries like Nigeria, Egypt, Pakistan, Iraq, Jordan, the UAE, and Saudi Arabia. Notably, in March 2017, China made an investment of USD 65 billion for establishing the CH-4 UAV manufacturing facility in Saudi Arabia.

Turning to Pakistan, he observed that Pakistan has an established UAV development programme. Its UAV program is a collaborative endeavor involving both Public Sector Units (PSUs) and the Private Sector. The public sector entity, Global Industrial and Defense Solutions (GIDS) played a significant role in developing UAVs such as Uqab, Shahpar, and Huma. The private sector companies like East West Infinity (Pvt) Ltd. and Integrated Dynamics made significant contribution in UAV development. Integrated Dynamics, has exported small civil UAVs to Australia, Spain, South Korea, Libya, and United States border guards since 2006. Pakistan also forged partnerships with countries like Turkey and China to manufacture UAVs.

Moving forward, Gp. Capt. Narang pondered why China is emerging as a UAV power. He observed that the innovation friendly structure of its military, which fosters a scholar warrior culture that supports technological development seems to be one of the major contributors to the growth if its domestic UAV industry. The other technology development friendly initiatives of the People s Liberation Army (PLA) include its officers pursuing advanced degrees, establishing a post-doctoral forum on defense technology and PLA personnel leading the technology development projects. He remarked that China s and Pakistan s UAV programs and collaboration between China, Turkey, and Pakistan on UAVs increases India s security and border management challenges.

He also provided a brief overview of India's UAV programs and the challenges they encounter. He discussed challenges leading to closure of India’s UAV programs in the past and uncertainties faced by ongoing UAV development programs. Furthermore, he highlighted how the import of critical components create vulnerabilities and dependencies and how the integration of UAVs remains a challenge.

Questions and Comments

The talk was followed by a Q&A session. Before opening the floor for questions, Col. Singh emphasised that no technology in the world is developed without encountering failure along the way. In response to the question regarding whether Indian UAV programs feature indigenous engines, Gp. Capt. Narang stated that while India has imported engines like Rotax, it possesses the capability to develop indigenous engines. He also stressed the importance of balancing exports and imports, noting that importing numerous systems can incur significant costs.

He emphasised the need for creating consciousness about the importance of Intellectual Property (IP) protection, which has been a weak area. In response to the question about the availability of counter-drone systems in India, he made special mention of contribution of iDEX in developing indigenous solutions. However, he noted that follow up on iDEX initiatives are needed to develop more capable counter drone systems to counter the threat posed by sophisticated drones, especially swarm drones He discussed limitations of Transfer of Technology (TOT) and advocated development of indigenous critical systems.

He also pointed out that indigenously designed, developed and manufactured (IDDM) components are not likely to become commercially viable or cost competitive vis-a-vis global suppliers without supportive IDDM procurement policies. Indian private sector companies have predominantly focused on development of small UAVs. While responding to a question on how Pakistani and Chinese observers view Indian capabilities, he opined that Pakistani observers diligently examine India s UAV programmes and Chinese observers tend to downplay Indian capabilities. In his concluding remarks, he said that even though India has the ability to develop UAVs, it has struggled to transform indigenously developed UAVs into operational UAVs due to variables like delays and inconsistencies in allocation and release of  funds, administrative delays, challenges in obtaining timely approvals,  hesitancy in introducing course corrections etc.

Report was prepared by Mr. Rohit K. Sharma, Research Analyst, Strategic Technologies Centre, MP-IDSA.

MP-IDSA Fellow Seminar on A Study of the Political Economic Framework of ASEAN Media and India’s Media Representation March 15, 2024 1030 to 1300 hrs Fellows' Seminar

An MP-IDSA Fellow Seminar presentation by Mr. Om Prakash Das, Research Fellow, titled ‘A Study of the Political Economic Framework of ASEAN Media and India’s Media Representation’ was held on 15 March 2024. It was chaired by Ambassador Sujan R. Chinoy, Director General, Manohar Parrikar Institute for Defense Studies and Analyses (MP-IDSA). The External Discussants were Mr. Shashi Shekhar Vempati, former CEO of Prasar Bharati, and Professor Reena Marwah, Jesus and Mary College, Delhi University, and the Internal Discussants were Dr. Adil Rasheed, Research Fellow and Coordinator, Counter Terrorism Centre, and Ms. Shruti Pandalai, Associate Fellow, Southeast Asia and Oceania Centre, MP-IDSA. 

Executive Summary

The presentation covered the major five countries of the ASEAN bloc and how their media outlets played a significant role in building perceptions across borders within a given political-economic framework. It also evaluated the prevalence of negative news narratives about India sourced from international agencies, potentially influencing decision-making processes and public opinion. The presentation underscored the indispensable role of media in shaping cross-border perceptions and advocated nuanced analysis to comprehend India's representation in Southeast Asia and its ramifications for regional geopolitics and economics. 

Detailed Report

The Chairperson, Amb. Sujan Chinoy, introduced the Speaker and his topic of study regarding the political-economic framework of ASEAN media and India’s media representation. He emphasised that he considered the topic esoteric, but he expressed confidence that the eminent External and Internal Discussants would deconstruct the topic and requested Mr. Om Prakash Das to present his paper.

The Speaker, Mr. O.P. Das, introduced his topic in two parts, which come together as the conceptual framework of the political-economics of media for the five biggest economies of ASEAN nations. The Speaker discussed India and Southeast Asia’s warm historical relations, various issues about rule-based order, China's growing presence as an expansionist power in the ASEAN region, and how India has come up with the ‘Act East Policy’ and ‘Neighbourhood First’ Policy to deal with various issues concerning ASEAN nations.

The Speaker emphasised that the central premise of his research paper lies in understanding the origin and transformation of information into news and the role of information structure in shaping cross-border media representation. The presentation predominantly dealt with the five big economies of the ASEAN bloc, with five publications from five ASEAN countries: Indonesia, Thailand, Malaysia, the Philippines, and Singapore. Before he delved into the core of the presentation, the Speaker spoke about internal sources, external sources, and other variables like sentiments, whether the news is positive, apprehensive, negative, or neutral. Then the Speaker discussed in brief, the structure and political economy of media in Indonesia and Malaysia, where media ownership is concentrated among a limited number of conglomerates. An important consideration lies in the absence of anti-monopoly laws for regulating media ownership in Malaysia. The Speaker explained how the government has control over the licensing system to ensure pro-government policies, and the political sphere has consistently emphasised the necessity of media to operate within the framework of national development, asserting the need to guide the media in fulfilling its social responsibilities.

This was followed by a discussion on the media in Thailand. In Thailand, print media is essentially run by private players, but broadcast media is essentially dominated by the State. The Speaker emphasised how the constitution played a significant role in the transformation of Thai media from a government-oriented entity to a market-oriented private enterprise over a period of time.  This transition has realised a shift in media ownership patterns and the dynamic interplay between media owners and political structure.

The Speaker further spoke about the political-economic framework of media in Singapore, which operates within a constrained constitutional structure with the political class favouring a guided press that aligns with the government’s view. The Speaker went on to discuss the media in the Philippines, which underwent a political transformation post-1987, coming up with an ecosystem affording considerable leverage to the influential entities for fostering economic growth within the private sector. With time, political and economic ecosystems constructed a media landscape that had a good relationship between media owners and political elites. He also explained how the political structure in the Philippines has transformed into a democratic one.

The Speaker the discussed the most covered topics in Indonesia’s online version of the leading newspaper, which entailed geopolitics in India, India’s external affairs, defense news, and bilateral relations between India and Indonesia. The Speaker emphasised how international news agencies had given more than 74% of the news. He mentioned a sentiment analysis, which was positive for the Jakarta Post and international news agencies.

Mr. Das further discussed Malaysia’s most covered news topics, which entail India’s economy, geopolitics, and global economy. The Speaker emphasised how more than 67% of news is from different news agencies. 40.5% of the news is positive, and most of the positive news is covered by international news agencies.

The Speaker discussed Thailand's most covered news, which entailed geopolitics, India’s economy, and bilateral relations, and also mentioned that more than 73% of news is covered by international news agencies. He also emphasised how negative news is dominating Thailand’s newspaper (Bangkok Post).

The Speaker also discussed Singapore's most covered news, which entails geopolitics, India’s economy, domestic politics, and governance. He mentioned that in terms of sourcing, 74.4% of news is covered by international news agencies in Singapore’s ‘The Straits Times’. He also mentioned how negative sentiments are dominating in Singapore as well. He also brought up that the most positive news is being covered by international news agencies.

This was followed by a focus on the Philippines most-covered news, which entailed bilateral relations and geopolitics. He also emphasised how negative sentiment is dominating and that most of the positive news is covered by internal sources. The Speaker discussed that Malaysia carries most of the news from India; and the Philippines carries the least. Data suggest that these organizations have been disseminating news narratives that are largely sourced from international news agencies, which also means the perspectives and biases inherent in these international narratives have been propagated to the local audience without significant contextualization. The Speaker emphasised how the flow of information poses a significant challenge given its role in the decision-making process, particularly in the realm of global news dissemination. The Speaker emphasised the area to keep an eye on: the influence of news narratives on policymaking. The Speaker concluded the presentation with sentiment analysis, where he also emphasised the risk of overreliance on external news sources for coverage of Indian affairs in Southeast Asian media, highlighting potential consequences for information diversity, audience comprehension, and bilateral relations. The lack of indigenous reporting capabilities results in superficial and biased coverage based on external viewpoints, potentially impacting public discourse and relationships between countries.

The Chairperson, Amb. Chinoy started the discussion with a query and then opened the floor to External Discussants by introducing them to the audience. He mentioned Mr. Vempati’s immense experience in technology, media, and as CEO of Prasar Bharti, and Professor Marwah’s expertise in this area.

Mr. Shashi Shekhar Vempati

Mr. Vempati appreciated the Speaker for his presentation, made comments regarding the sample size being small, and appreciated the choice of subject. Mr. Vempati had a query regarding the analysis part and whether the news headlines are from editorials or other sections that are not that relevant. He also mentioned how English newspapers have a significant bias while reporting the news. He mentioned further the linkage of India’s representation with influencing policymaking, which is unclear.

Amb. Chinoy appreciated Mr. Vempati’s feedback and comments on the presentation and invited Professor Reena Marwah to make her comments.

Professor Reena Marwah

Prof. Marwah congratulated the Speaker for undertaking a detailed study that provides the reader with immense depth of understanding considering India’s engagement with Southeast Asia. She emphasised reconsidering the focus area and how the problem statement is well defined, but in the meantime, there is an ambiguity concerning how media content originating from India reaches the populace of these countries and how media narratives portray India’s relations with the region. She discussed how ASEAN as an entity is not distinguished from Southeast Asian countries in terms of the linguistic and cultural diversity of these countries. She also emphasised how the diaspora in the ASEAN bloc was not taken into consideration as part of the study. She explained that more attention needs to be paid to the context in which the study was undertaken and to the geopolitical happenings in the last six months. She had a query regarding the source of the news: whether colonized nations had a lineage towards news sources from their colonizers. She emphasised how a greater comparative perspective is needed and that much more focus on sentimental analysis is needed as sentimental analysis is subjective. She discussed how more focus on positive news is needed.

Amb. Chinoy thanked Prof. Marwah for her valuable inputs and emphasised how a similar kind of study is needed for other regions as well. Then he opened the floor for the Internal Discussants to make their comments.

Dr. Adil Rasheed

Dr. Adil Rashid began the discussion by appreciating the Speaker for selecting a very relevant study for his research. He said the paper is well structured and contains all the elements of research in terms of statement, data collection, and statistical data. Dr. Rashid also emphasised how ASEAN doesn’t feature much in the paper. He also had a query regarding how much public opinion and the press create public perception, which influences government policy, and why the focus has not been on socialist and one-party states, which have a significant Indian footprint. He discussed the understanding of the Myanmar press and their perception of India, which is missing in this piece. He also had a query regarding why one newspaper was picked and not more for countries like Indonesia and Singapore. He also made comments regarding qualitative aspects being missing in the analysis. Dr. Rashid had a query regarding the scale for measuring whether a story is negative or neutral.

Amb. Chinoy thanked Dr. Adil Rashid for his perceptive remarks and invited Ms. Pandalai to speak.

Ms. Shruti Pandalai

Ms. Pandalai appreciated the Speaker for taking up such an interesting subject. She said the paper would benefit from a little bit of restructuring wherein the concept can be explained briefly and more weightage could be given to the penetration of Indian news in Southeast Asia. She explained how one can conclude by having a few variables in hand. She emphasised how one had to understand the hardware and software aspects of it. The hardware would be why you picked up the examples and papers for the discussion, and the software is regarding ownership control, advertising and sponsorship, audience perception and reception, political and diplomatic impact, regulatory environment, and cultural and linguistic factors. She emphasised how the discussion on the paper needs to be more qualitative. More focus on how a story is chosen, framed, and received is needed. She discussed how there is a need to analyse the news to understand cognitive bias.

Following Ms. Shruti Pandalai’s comments, Amb. Chinoy gave his comments on how the paper needs to include not ASEAN but select Southeast Asian countries and the reason for the exclusion of Cambodia, Laos, and Myanmar in the paper. He also discussed how ‘The Straits Times’ and other publications in Singapore come out with microfilmed versions to archive the previous editions.

Amb. Chinoy opened the floor for questions and comments from MP-IDSA scholars.

Questions and Comments

Dr. P.K. Singh appreciated the Speaker for coming up with an interesting topic and made suggestions like limiting the study of media sentiments and defining how many papers from each country in terms of coverage had been taken up for the study. Dr. Anand Kumar suggested that more focus should be on the boundaries and limits of the survey. Mr. Niranjan Oak had a query regarding the criteria for choosing these countries and publications. He suggested that the study of the op-eds and editorials of these publications would be more beneficial to get a clear picture in terms of sentiments. He also had a query regarding the FDI rules for conglomerates in these countries and whether Indian conglomerates have the opportunity to buy stakes in those media houses to influence opinion in those countries. The Deputy Director, Gp. Capt. (Dr.) Dr. Ajey Lele appreciated the Speaker for an interesting paper and raised a query regarding the owners of those newspapers mentioned in the study and whether there have been any political visits from India or from the countries mentioned in the study in those six months, as these things can have a significant impact.

Amb. Chinoy had a query regarding the parameters of the determination of any news items as apprehensive. Gp. Capt. R.K. Narang raised a query regarding All India Radio’s [AIR] penetration in the Southeast Asia region.

All the queries were answered well by the Speaker, who also agreed to the suggestions given by External and Internal discussants.

Report was prepared by Ms. Julia Jose Thachil, Intern, Counter Terrorism Centre, MP-IDSA.

Monday Morning Report on Bridging Gaps in Cybersecurity with Cyber Insurance March 11, 2024 Monday Morning Meeting

Mr. Rohit Kumar Sharma, Research Analyst at the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA) made a presentation on “Bridging Gaps in Cybersecurity with Cyber Insurance” at the Monday Morning Meeting held on 11th March 2024. Lt. Col. Akshat Upadhyay, Research Fellow, MP-IDSA, moderated the session. Other scholars of MP-IDSA attended the session.

Executive Summary

The presentation summarised the significance of cyber insurance in securing cyberspace, predominantly enterprises and organizations. The presentation also elaborated on the scope of cyber insurance, India’s cyber insurance landscape, the potential impact of the Digital Personal Data Protection Act 2023 on cyber insurance uptake, and the challenges with respect to insurance industry. It also covered the significance of cyber insurance for the prevention and mitigation of cyber risks. 

Detailed Report

In his opening remarks, Lt. Col. Akshat Upadhyay asked the speaker to differentiate between cyber theft and cyber threats and to comment on an incident relating to Chinese hacker company I-Soon.

The speaker began the discussion by introducing the topic to the audience and the rationale behind selecting the theme. He acknowledged that the book “Rethinking Risk in the Age of Ransomware, Computer Fraud, Data Breach, and Cyberattacks” introduced him to the concept of cyber insurance and its vital role in regulating the cybersecurity preparedness of organizations. Following this, he discussed the scope of the study and offered a few caveats before delving into the core of the topic.

The speaker mentioned how, besides the direct cost of a cyberattack, there are also hidden costs to reputation, future contracts, and relationship with the customers. As reported, IP theft remains one of the prominent reasons behind cyberattacks against companies. Following an attack, the companies also incur financial loss due to penalties levied on them by regulators. Healthcare remains the sector most affected in terms of data breach cost, followed by the financial sector and pharmaceutical sector. The situation following a cyberattack is fraught with challenges as the average data breach lifecycle is 277 days, meaning the more the number of days, the higher the cost to the victim.

Furthermore, he discussed what cyber insurance is, which is essentially a risk transfer mechanism that supports and protects businesses and individuals from financial repercussions following a cyber incident. Moving ahead, Mr. Sharma also discussed the Insurance Regulatory and Development Authority of India’s (IRDAI) definition of cyber insurance, emphasising the adoption of preventive measures to improve the cybersecurity posture of an organization. Mr. Sharma also briefly elaborated on the stakeholders that constitute the cyber insurance ecosystem and the significant role played by these entities.

The speaker also underlined how insurance enables risk sharing with an organization against the inevitable cyber incidents. He also underscored the systemic nature of cyber risk, which is directly correlated to a company's increasing dependence on Software-as-a-service (SaaS). The speaker highlighted the importance of applicable insurance covers for managing cyber risk, which encompasses defense costs arising from privacy breaches, expenses for hiring lawyers to represent an organization against lawsuits, regulatory costs, and fines, as well as the response costs associated with notifying affected individuals.

Further, the speaker elaborated on the distinction between first-party coverage and third-party liability coverage. First-party coverage addresses the direct costs incurred by the company, such as cyber extortion and business interruption losses. On the other hand, third-party coverage involves expenses paid to the aggrieved third parties or the liability arising out of regulatory penalties.

The speaker also addressed other types of services offered by the insurers, including the incident response team (IRT). The technical IRT provides access to dedicated technical personnel experienced in managing cyber incidents. Legal IRT assists in notifying affected customers or individuals during the initial phase of the breach, and public relations IRT helps in mitigating reputational damage and developing a long-term recovery plan. The speaker also highlighted how the need for cyber insurance is felt more in small and medium enterprises because of the less sophisticated IT infrastructure.

 

He also discussed the role of the chief information security officer (CISO) within an organization’s decision-making. Continuing further, he delved into the underwriting methodology employed by the insurers to determine premiums and maximum coverage. These assessments and pricing strategies rely on data-driven approaches drawn from information collected by insurers through questionnaires, surveys, and various other forms of risk assessments. This approach allows insurers to provide monetary incentives to insured entities by setting premiums and coverage levels based on factors such as cybersecurity preparedness, risk mitigation strategies, and the presence of an in-house cybersecurity team. He briefly discussed about the IRDAI’s working group terms of reference of the committee. He also elaborated on how cyber insurance cover can help with regulatory compliance associated with the Digital Personal Data Protection Act (DPDP) 2023.

Questions and Comments

The presentation was followed by a Q&A session. Col. Vivek Chadda (Retd.) raised queries regarding   possibility of cooperation between private cyber security vendors and government agencies, and also regarding potential misuse of data by major companies. Mr. Sharma responded by talking about the Digital Personal Data Protection Act and sectoral regulators like RBI, which for instance has come up a with security framework for the banking system. He also elaborated on the role of the Indian Computer Emergency Response Team (CERT-In) that acts as an early warning system for cyber threats and attacks in India. Dr. Anand Kumar raised a query regarding cyber insurance providers in India and inquired whether cyber insurance extends coverage to the impact of armed conflict on physical infrastructure.

Report was prepared by Ms. Julia Jose Thachil, Intern, Counter Terrorism Centre, MP-IDSA.

Pages

Top