March 2018

US-China trade war: Beijing hits back

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China announced its first retaliation on March 23 against Donald Trump’s trade measures – levying a high tariff on steel and Aluminium (25 per cent and 10 percent respectively) and fresh tariffs on $50 billion of Chinese imports with indications of more protectionist measures in the future. The Chinese retaliation came just a few hours after President Donald Trump outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way.  China unveiled tariffs on $3 billion of US imports in response to steel and aluminium duties announced by Trump administration earlier this month. China is aware about US focus on it for trade measures and it became more evident as the White House declared a temporary exemption from tariffs for the European Union and other nations.

New US- China trade measures against each other

In a ramping up of his “America First” ethos, Trump on March 22 said he had ordered tariffs on $50 billion of Chinese imports as recompense for alleged intellectual property abuses. Hours later, China announced planned tariffs on imports of US pork, recycled aluminium, steel pipes, fruit and wine, according to a commerce ministry statement on March 23. The US will impose 25% duties on targeted Chinese products to compensate for the harm caused to the American economy from China’s policies, according to a fact sheet released by USTR. The proposed product list will include items in aerospace, information and communication technology and machinery. The USTR will announce the proposed list in the next “several days”. Further, China will also pursue legal action against the US at the World Trade Organization (WTO) in response to the US’s planned tariffs on steel and aluminium imports. China called for dialogue to resolve the dispute. With Beijing’s response to the tariffs aimed at intellectual-property abuses—enacted under Section 301 of the US trade law—as yet unannounced, the relatively limited value of trade curbs may be just the first stage of its response. Also according to  Chen Fuli, head of the treaty and law department at China’s commerce ministry, China has prepared a comprehensive plan to counter the 301 action He added that the government has had no communication with the US on the issue as it is a unilateral action not covered under WTO rules. The White House gave the European Union, Argentina, Australia, Brazil, Canada, Mexico, and South Korea, until 1 May to negotiate levies on steel and aluminium. The administration said the suspensions can be renewed or revoked then, “pending discussions of satisfactory long-term alternative means to address the threatened impairment to US national security”.

Implementation of new measures

No tariffs have been collected yet, as measures in both China and the US are subject to further negotiation and public consultation. If China and the US can’t reach an agreement on steel and aluminium trade, after a public consultation period which ends 31 March, Beijing could begin collecting tariffs of 15% on imports worth $977 million, including fresh fruit, nuts, wines, denatured alcohol, ginseng, and seamless steel tubes. After evaluation, China could then implement tariffs of 25% on around $2 billion worth of product imports, including pork and aluminium. Economists said the impact of the China tariffs announced until now may be limited. If the US imposes a 25% duty on $50 billion of imported goods, the additional $12.5 billion tariff is equivalent to an additional 2.9% charge on all of China’s exports, according to JPMorgan economists led by Haibin Zhu in Hong Kong. From a macro perspective the additional tariff is only equivalent to 0.1% of China’s GDP and affected exports only account for 2.2% of China’s total exports,” they wrote in a note. “The direct macro impact tends to be limited.”

Brewing Trade war and adverse effects

Policy makers across the world are warning of a brewing trade war that could undermine the broadest global recovery in years. Meanwhile, business groups representing companies ranging from Walmart Inc. to Amazon.com Inc. are warning US tariffs could raise prices for consumers and sideswipe stock prices. Central bankers have also sounded warnings. Trump also directed Treasury Secretary Steven Mnuchin to propose new investment restrictions on Chinese companies within 60 days to safeguard technologies the US views as strategic.

USTR Investigations and changes of manipulation and violation on China

The Trump administration is framing the move as a major turning point in US-China relations. It followed a seven-month investigation by USTR into allegations China violates US intellectual property, under the seldom-used Section 301 of the 1974 Trade Act. The US concluded China engages in a range of violations, including policies that force American companies to transfer technology and the accessing of trade secrets through hacking, said Eissenstat.

China’s retaliatory measures are still modest

Analysts see China’s retaliation as modest in view of its significance for the US with regard to trade and investment. China’s response is surprisingly modest in light of the US actions, suggesting there could be a good deal more to come,” said Stephen Roach, a former non-executive chairman for Morgan Stanley in Asia and now a senior fellow at Yale University. “As America’s third largest and most rapidly growing export market and as the largest foreign owner of Treasuries, China has considerably more leverage over the U.S. than Washington politicians care to admit.”

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Xi Jinping is re-elected as China’s president

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China’s  parliament unanimously re-elected (March 17) Xi Jinping as the country’s president. Former top graft-buster (government’s anti corruption crusader) Wang Qishan, a key ally of President Xi Jinping, was also chosen as vice president on the same day. a widely-expected move that nonetheless breaks with convention and underlines Xi’s dominant authority.The legislature is dominated by h delegates loyal to the ruling Communist Party. Therefore, Xi’s re-election was never in doubt. On March 18 parliament voted to amend the constitution to remove presidential term limits, meaning Xi can stay indefinitely.

Implications of re-election of Xi Jinping

Xi Jinping was unanimously reelected president of China, and chairman of the Central Military Committee. The Chinese legislature also eliminated term limits, effectively positioning Xi to serve as president for life. These developments make him the most powerful leader of the world.  Xi Jinping, 64, is considered the most powerful Chinese leader since Mao Zedong and he was given the right to continue in office indefinitely after the legislature scrapped term limits for the president and vice president through a constitutional amendment on March 18. Chinese officials defended the move saying it would bring the presidency in-line with Xi’s other two main positions of head of the ruling Communist Party and commander of the armed forces. Xi, who was first elected president in 2013, is among a new generation of leaders who have found ways either to eliminate restrictions on continuing in office, or to continue as premier leader by switching titles. Critics say the move overturning a push to institutionalize China’s ruling practices dating from 1982 will likely lead to increased political repression and possible infighting among party factions seeking to promote their own candidates within the closed system.

Implications of Wang Qishan’s appointment

Known as “the firefighter” for his central role in tackling issues like corruption and domestic financial problems over the years, Wang also has experience dealing with the United States in his former role as a vice premier who led annual economic talks with Washington. He was a major player in Xi’s battle against corruption, with dozens of senior officials jailed during his tenure as the top graft-fighter, including the fearsome domestic security chief Zhou Yongkang, now serving life in jail. Wang’s appointment has the potential to reshape what has traditionally been a ceremonial role. China’s relationship with the United States is likely to be a key part of his remit, according to diplomats and sources with ties to the leadership.

Xi Jinping’s Agenda

In October 2017 President Xi Jinping spent 3.5 hours delivering his maiden political report at the 19th Communist Party (October 18, 2017) congress, outlining his vision for the next five years of development in China.  He highlighted the mounting uncertainties and challenges the world is facing, such as regional and economic instability, a widening wealth gap, terrorism, major epidemics, cyberspace insecurity and climate change. In a reference to the rising protectionism and anti-globalisation sentiment in the US and Europe as well as the decline in US global leadership under President Donald Trump, Xi said:”No country alone can handle all the challenges that mankind faces and no country can retreat into self-isolation.” He called on the “peoples of all countries to join China’s effort to build a common destiny for mankind and enduring peace and stability”. Xi also pledges that China will continue its peaceful and independent foreign policy, uphold international justice and refrain from interfering into other countries’ domestic affairs. He also added, “China will never advance itself at the expense of interests of other nations, but we will never give up our lawful rights.” In another bid to ease growing concerns among China’s neighbours about the intentions behind its rapid military buildup, he says Beijing will maintain a defensive policy when it comes to national security. He assured that “China’s growth does not pose threats to any nations and China will never pursue hegemony or seek expansionist policies” even if China rises to become an international power.” Xi did not name any particular country in his policy address, and gave no details on Beijing’s policy towards the US or major hotspots such as North Korea.

At present China warned the US against trade war and said the latter to work hard and complaint less. On South China Sea, it wants bilaterally finding solutions with the stake holders rather than any international arbitration or US led solution. On North Korean issue China supports a negotiated solution and not arm twisting by world powers. It does not favour in case of Iran unilateral scrapping of the nuclear deal by the US. In Syria, China wants the world powers to find a consensus based solution to end the Civil war. With its deep pocket and economic engagements through the BRI and AIIB initiatives, China is steadily following the dictum of peaceful rise. But there are doubts about Chinese capacity to help and support the cause of democracy and human rights. Its corporate governance is also poor, especially in its joint ventures or FDI outside. India finds China’s strategy of encircling India and efforts for domination in the Indian Ocean region disturbing besides its reservations regarding sovereignty issues in China’s CPEC project with Pakistan.

BrahMos Missile test-fired with indigenous seeker

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In a milestone breakthrough, BrahMos, was successfully test fired with an indigenous seeker on March 22 at a Pokhran test range in Rajasthan. It is said to be the world’s fastest and most formidable anti-ship cruise missile. This test firing of supersonic missile has given a big boost to government’s ‘Make in India’ campaign as it is  for the first time the country developed a seeker for a missile of this calibre and class. The BrahMos weapon system has been jointly developed by India and Russia and is said to be one of the most formidable and precision-strike weapons in the world. The BrahMos missile that was test fired on March 22 “flew in its designated trajectory and hit the target with pin-point accuracy. Defence Minister Nirmala Sitharaman congratulated BrahMos, DRDO and Indian scientists stating that today’s successfully test firing will bolster national security.

Indigenous seeker or BrahMos – why it’s a big breakthrough

The indigenous seeker has been developed with the joint effort of BrahMos Aerospace MD and CEO Sudhir Mishra and DRDO Secretary Dr S Christopher. Talking about the big acheivement for India’s defence, Sudhir Mishra the CEO & MD of BrahMos Aerospace says, “With today’s successful test flight we taken yet another important step towards building indigenous defence equipment manufacturing capability.” “We have demonstrated that Indian scientists can develop the world’s most advanced technology and equipment.”

Seeker is one of the most critical elements of any missile, honing in on the target and improving the precision strike capability of the weapon system, says Avinash Chander, former DRDO chief and the man behind the Agni missile series. The country will no longer have to depend on help for such an important component of the missile. Also, once the indigenous seeker is tested extensively and proves its capability, the knowledge can be used for other missile systems as well.

BrahMos missile’s successful test comes within months of the weapon system being test-fired for the first time from a Sukhoi-30 MKI. The successful test fire from a Sukhoi-30 MKI was a first for the world since no missile as heavy as BrahMos has ever been fitted on a frontline fighter jet of a nation. Meanwhile, with India becoming a part of the Missile Technology Control Regime (MTCR), it has now been able to extend the range of the BrahMos missile from 300 km to around 450 km. BrahMos Aerospace, the joint venture between India and Russia, is already working to extend the missile range from 450 km to 800 km – something that will give India unprecedented fire power against both China and Pakistan.

BrahMos missile – a universal weapons system

BrahMos missile is a universal weapons system that has already been inducted by the Indian Army and Indian Navy and the Indian Air Force is in the process of doing so. The missile derives its name from two rivers – Brahmaputra in India and Moskva in Russia. The BrahMos missile can be fired from land, ships, submarines and fighter jets – a fact that gives it unparalleled capability. Not only that, the BrahMos missile is said to have one of the best test success rates in the world. BrahMos is a two-stage missile which can attain a cruise speed of 2.8 Mach. The missile can carry a conventional warhead of almost 300 kg. On sea, it can be launched both in the vertical and the inclined configuration.  The BrahMos missle has also generated a lot of export interest from various countries including Vietnam, Chile.

India, France ink 14 pacts, express resolve to combat terrorism

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Taking strategic ties to a new high

India and France took their strategic ties to a new plane on March 10 when they signed as many as 14 key agreements in areas like defence, security, nuclear energy and protection of classified information as French President Emmanuel Macron conveyed to Prime Minister Narendra Modi his country’s firm resolve to join hands with India in combating terrorism, Islamic fundamentalism and radicalisation. Without directly naming Pakistan or any other nation, the two leaders, in a joint statement, called upon all countries to work towards rooting out terrorist safe havens and infrastructure, disrupting networks and their financing channels and halting cross-border movement of terrorists belonging to Jaish-e-Mohammed, Hizb-ul-Mujahideen, Lashkar-e-Taiba, Al Qaeda, Daesh/ISIS and their affiliates who threaten peace and security in South Asia and the Sahel region, a joint statement issued after Modi-Macron talks said.

The two countries also inked pacts in fields like education, environment, urban development and railways after wide-ranging talks between the two leaders on bilateral issues as well as international developments.

Display of friendship

Prime Minister, Modi while interacting with Macron described France as one of the most trusted defence partners of India. He also spoke about Paris’s commitment to his ‘Make in India’ initiative in the defence sector. Responding the French leader said, “France is the entry point to Europe. We want to be India’s best partner in Europe. ”

Joint Strategic Vision

The two leaders also welcomed the ‘Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region’ as a guiding beacon for partnership between their two countries. Apparently taking a dig at China for its growing ambition in the South China Sea, the two leaders reiterated that cooperation between India and France would be crucial in order to maintain the safety of international sea lanes for unimpeded commerce and communications in accordance with the international law, for countering maritime terrorism and piracy. ‘’Indian Ocean cannot be a place for hegemony,’’ the French President said.

Significance is being attached to the agreement for logistics support between the armed forces of the two countries. Under the accord, India is expected to be permitted to use French bases in the Indian Ocean and, in return, allow French naval vessels access to Indian ports for repair and resupply. The pact also has provisions for joint exercises, joint training, humanitarian assistance and disaster relief efforts.

Information sharing

The agreement regarding the exchange and reciprocal protection of classified or protected information will enable the two countries not to divulge information classified ‘secret’ by either side. It would apparently also cover cost details of the Rafale jet deal on which the Modi government has been facing intense heat from the Congress party.  The two leaders noted with satisfaction the on-schedule progress in the implementation of acquisition related agreements, including the Rafale pact signed in 2016.

Nuclear cooperation

The agreement on nuclear cooperation prescribes a way forward for the implementation of the Jaitapur nuclear power project which has been hanging fire for almost a decade now. The two leaders reiterated the goal of commencing work at the Jaitapur site by the end of this year.

Despite the age difference between them, Modi and Macron have established a personal chemistry between them which was very much in evidence as the two leaders hugged each other at the ceremonial welcome accorded to the French leader at the Rashtrapati Bhavanon Saturday morning. The two leaders will co-chair the International Solar Alliance (ISA) Summit on Sunday.

14 MoUs signed by the two sides:

  1. Home Minister Rajnath Singh and French Minister for Europe and Foreign Affairs Jean-Yves Le Drian signed an agreement on the “prevention of illicit consumption and reduction of illicit traffic in narcotic drugs, psychotropic substances and chemical precursors and related offences”. The pact would facilitate the two countries in combating illicit traffic and consumption of drugs and also impact on financing of terrorism, according to a PIB statement.
  2. Union External Affairs Minister Sushma Swaraj and French Minister for Europe and Foreign Affairs Jean-Yves Le Drian inked the India-France Migration and Mobility Partnership Agreement, which aims to facilitate temporary circular migration based on mobility and the encouragement for a return of skills to the home country.
  3. Minister of Human Resource Development Prakash Javadekar and French Minister of Higher Education, Research and Innovation Frederique Vidal signed an agreement to facilitate “mutual recognition of academic qualifications”.
  4. French Minister for Europe and Foreign Affairs Jean-Yves Le Drian singed an agreement on behalf of SNCF Motilities with Union Railway Minister Piyush Goyal on technical cooperation in the field of railways. “The purpose of this MoU is to build upon and deepen the mutual cooperation and focus on priority areas of high speed and semi-high speed rail; station renovation modernisation of current operations and infrastructure; and suburban trains,” said the release.
  5. Railway Minister Piyush Goyal and French Minister for Europe and Foreign Affairs Jean-Yves Le Drian also signed a Letter of Intent between for creation of a permanent Indo-French Railways Forum to enhance the already existing cooperation.
  6. Defence Minister Nirmala Sitharaman and French Minister for the Armed Forces Florence Parly signed a pact “to facilitate the reciprocal provision of logistic support, supplies and services between the Armed Forces of the two countries during authorised port visits, joint exercises, joint training, humanitarian assistance and disaster relief efforts etc”.
  7. Minister of State for Environment, Forest and Climate Change Dr Mahesh Sharma and Brune Poirson, French Minister of State, attached to the Minister for the Ecological and Inclusive Transition, signed an MoU to establish a basis for exchange of information between the governments and technical experts of the two countries in the field of environment and climate change.
  8. MoS (Independent Charge), Housing and Urban Affairs, Hardeep Singh Puri and Minister of State, attached to the Minister for Ecological and Inclusive Transition, Brune Poirson singed an agreement between India and France on cooperation in the field of sustainable urban development to allow exchange of information on smart city development, development of urban mass transportation systems, urban settlements and utilities etc.
  9. National Security advisor Ajit Doval and Philippe Etienne, Diplomatic Adviser to the French President, inked a pact regarding the exchange and reciprocal protection of classified or protected information. According to the press statement, the agreement defines the common security regulations applicable to any exchange of classified and protected information.
  10. K. Sivan, Secretary, Department of Space & Chairman, Indian Space Research Organisation, and Jean-Yves Le Gall, President, Central National D’EtudesSpatiales, signed an agreement to implement an arrangement between the two organizations for pre-formulation studies of a maritime awareness mission. The agreement would provide end-to-end solution for detection, identification and monitoring of vessels in the regions of interest for France and India, said the release.
  11. An ‘Industrial Way Forward Agreement’ between the Nuclear Power Corporation of India Ltd, and EDF, France, was signed by Sekhar Basu, Secretary, Department of Atomic Energy, andJean Bernard Levy, CEO, EDF. The agreement prescribes a way forward for the implementation of the Jaitapur nuclear power project.
  12. Vinay Kwatra, Ambassador of India to France, and Alexander Ziegler, Ambassador of France to India, signed a bilateral arrangement to encourage cooperation in the field of hydrography, nautical documentation and maritime safety information.
  13. A ‘credit facility agreement’ of Euros 100 million was signed between India and France for funding of the Smart City projects through a “challenge process”. Ambassador of India to France Vinay Kwatra and Ambassador of France to India Alexander Ziegler were the signatories. The agreement aims to “help fill the funding gap under the Smart City Mission and the funds provided by the Central and State Governments for the purpose”.
  14. An MoU was signed between the National Institute of Solar Energy, the Ministry of New & Renewable Energy and the National Solar Energy Institute, France, under which both countries will work on projects in ISA member countries in the areas of solar energy (solar photovoltaic, storage technologies, etc.) through transfer of technology and collaborative activities. Ambassador of India to France Vinay Kwatra and Administrator, Commission for Atomic and Alternate Energy, Daniel Verwaerde, were the signatories.

 

7.5% growth rate is not enough for employing 12 million people in the country: Raghuram Rajan

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In a recent interview with CNBC-TV18, Raghuram Rajan, the former RBI governor who left the office in 2016, has said that 7.5% growth rate is not enough for employing 12 million people in the country. India had slumped to a three year low of 5.7% in the first quarter of FY18, but disruptions caused by demonetisation and the implementation of the GST are phasing out and India is expected to grow to 7.5% in next two years. But Raghuram Rajan has said it is not good enough. The World Bank also noted the same in a half-yearly report on India’s growth.

He said that India has the potential to grow at 10%, but that would require a lot of work. He said that reforms in India are happening but more slowly than one would wish. He added that India may move up to 10%, provided some kind of source of demand exists. He anticipated that reforms would be shelved till next general election. According to him, India is entering into a poll-bound financial year and it is a popular belief that with the impending General Election in 2019, there would be fewer reforms and more populist measures.

Another question which he raised in the interview is about the Chinese model of development which India is trying to replicate. The former RBI governor Rajan said that China’s economic growth boom on the back of its manufacturing industry and cheaper goods cannot be replicated in India. He said that world has become less receptive to exports, and asked that even if India becomes a manufacturing giant overnight, who’s going to buy its stuff?

There is no doubt that India can reap demographic dividend only if it can productively engage its young workforce. The innovative programmes like skill development, make in India and start up India have not been able to buoy the job market in India due to many constraints. Government’s latest quarterly survey on employment in eight key sectors reveals that there’s been a net addition of just 64,000 jobs across these eight sectors between April and June 2017. Even more worryingly, the manufacturing sector lost 87,000 jobs over this period, indicating that Make in India remains a distant dream. The labour bureau’s quarterly survey shows that the education and health sectors between them added 1.3 lakh jobs in April-June 2017, while the other six sectors – manufacturing, construction, trade, transport, accommodation & restaurants, and the IT/BPO industry – put together saw a net loss of 66,000 jobs. Education was by far the biggest job creator, adding 99,000 jobs over this quarter. Health saw an addition of 31,000 jobs. The survey, which in its current format has been running since April 2016, covers both regular and casual employment as well as the selfemployed in these sectors.

Since April 2016, there has been a net addition of 4.8 lakh jobs in these eight sectors with over half from education (1.7 lakh) and health (1 lakh). That translates to a 2.3% growth in employment over 15 months, an annualised growth rate of barely 1.8%. This rate is not enough to even take care of new entrants to the job market each year, leave alone reducing unemployment.

The last decade was described by many as jobless growth because the main driver of growth in India all through these years has been the services sector, particularly financial and software services which do not absorb much labour per unit contribution to GDP by very nature. The Chief Economic Adviser Arvind Subramanian had suggested in the last economic survey to focus more on labour intensive industries like textiles and leather, more so because China is leaving this space to graduate into high technology based industries. One of the major employing sectors that is metals and particularly steel industry is not doing well for quite some time and it has employment implications too. There would be certainly adverse impact of winds of protection blowing in the world, especially in the US and Europe. India needs to respond with all these challenges swiftly and imaginatively because there is still chances of more automation and technological disruptions in the world impinging on employment prospects.

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WhatsApp security risk alert!

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Indian Army issued advisory to people about Chinese hackers. India ranks higher than its global peers in being a victim of malware and ransomware attacks. (Reuters) WhatsApp security risk: The Additional Directorate General of Public Information of the Indian Army has released a video on Twitter alerting people of Chinese hackers. The tweet advised people to be alert and said that hacking was on the horizon, for those who are inattentive. They also instructed people to always check social media and be cautious about personal and group accounts. The video accused the Chinese of penetrating Indian digital world. As per the video, Whatsapp groups were the new ways of hacking into one’s system.

It also said that Chinese phone numbers that begin with the digits +86 pop up on your WhatsApp groups and begins to extract all the data on the phone. The video by the ADGP Indian Army also advised users to be vigilant about the things happening in their social groups. People were advised to conduct regular audits of their WhatsApp groups and be careful with the phone numbers that started with +86. The Indian Army also advised people about updating WhatsApp once they have changed their numbers. It also said, “Destroy the SIM card if you change your number and delete your WhatsApp on that number”, to ensure that Chinese do not mine personal data through hacking.

The warning by the Indian Army comes months after India and China had a 73-day long stand-off at Doklam. Though the Government of India intends to hold extensive talks in the coming month with the Chinese, threats continue to loom over not just India’s border, but also over India’s information systems.

India’s gearing cyber security system

As in most countries in the world, India’s use of the internet is immense. As per a report by Statista, an online statistics portal, India stands second behind China in the world to have the most number of internet users. There has been no paradigm shift at any legal or executive level that marks to resolve the issues of cyber security in India. Though Indian Computer Emergency Response Team (CERT-In) is the only national agency in charge of cybersecurity mandated under IT Amendment Act 2008, it is actually the collective efforts of Ministry of Home Affairs, Ministry of Defence, and the office of NSA that ensures cybersecurity of the nation.

India ranks higher than its global peers in being a victim of malware and ransomware attacks. Reports suggest that India was the third most affected country during the WannaCry ransomware attack in May 2017. Diwakar Dayal from Cisco had earlier told the media that India seeing a lack of close to 4 lakh cyber security experts. This huge lacunae in India and China’s cybersecurity capacity surely is a threat. India’s nodal agency for cybersecurity CERT-In which brings out monthly bulletins, annual reports, highlights threats, attacks and trends in cybersecurity. However, a report on CERT-In by the Centre for Internet and Society claims that there is lack of an ecosystem that is proactive in addressing these issues. The report also suggests that CERT-In restructure itself to be dynamic and interact more with other government agencies to consistently respond to security threats.

India’s National Security Council report suggests that China has more than a lakh cyber security experts making it one of the most strong combatants in cyber warfare. The Chinese military doctrine of “Active Defence” can be clearly seen in the way Chinese attempt to take charge of information space. The new Information Warfare (IW) faculty of the PLA is working towards combined employment of network warfare tools and electronic warfare weapons against its enemies, says Deepak Sharma in his IDSA focus report on China’s Cyber Warfare Capability and India’s Concerns.

In 2016, India and Russia signed a massive cybersecurity agreement on sidelines of BRICS summit in Goa. Last month, India and Canada also held high-level talks and have agreed to strengthen ties to resolve issues related to security. Minister of External Affairs, Sushma Swaraj also met her counterpart Chrystia Freeland to discuss matters related to trade and security. On the other hand, the Indian Army has been working constantly to combat cyber threats as well. Last year, the Indian Army had warned its soldiers along the Chinese border from using a host of mobile applications like WhatsApp, Snapchat etc. It also came out with a comprehensive list of applications that were deemed as vulnerable to the Chinese hackers.

First case of Self-Driving Car killing a pedestrian in Tempe, Arizona

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On Sunday ( March 18) night, a self-driving car operated by Uber being tested with an emergency backup driver behind the wheel crashed and killed a woman in Tempe, Arizona. Reportedly, the first ever death caused by the self-driving car was a Volvo XC90 SUV operated by Uber was in autonomous mode with a human safety driver at the wheel carrying no passengers when it crashed Elanie Herzberg, a 49-year-old woman on Sunday night. Interestingly, the regular Volvo XC90 is considered to be one of the safest SUV globally.  This is believed to be the first death by accident associated with autonomous and self-driving technology. Uber has currently suspended testing of its cars in Tempe as well as in San Francisco, Pittsburgh and Toronto. This accident comes as a reality check to every auto and tech company working on autonomous cars proving that this technology is still at an experimental stage and even government has not yet figured out on its regulations.

General Motors, Google (Waymo), Uber, and a long list of companies have invested heavily towards the development of autonomous cars globally and especially in the US and Europe. It is claimed that these driverless cars will be safer than human driving as it takes out the big equation of human distraction. However, this technology is still at about a decade old and this accident leading to a death proves that development is still at a nascent stage and there is a long way to go. There is also the need for a certain law to kick in as it is still unclear on whom to blame in such a situation.

Reports also suggest that this crash in Arizona might lead other companies and state authorities to slow the rollout autonomous cars on public roads. A report on the The New York Times says that many states in the US, like Arizona have taken a lenient approach to regulate plying of driverless cars. Arizona officials wanted to lure companies working on self-driving technology out of neighboring California, where regulators had been strict. However, California is expected to allow companies to test cars without a person in the driver’s seat soon.

Meanwhile, National Transportation Safety Board (NTSB) is sending a team to the crash site to further investigate the fatal collision of this Uber driverless car that caused the death of a pedestrian. The Uber vehicle was part of the company’s self-driving fleet of vehicles. The investigation will address the vehicle’s interaction with the environment, other vehicles and vulnerable road users such as pedestrians and bicyclists.

39 Indians kidnapped in Iraq in 2014 killed by ISIS

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Union foreign minister Sushma Swaraj  said in Rajya Sabha on March 20 that 39 Indians stranded in Mosul (Iraq) were killed by ISIS. The minister also said that the stranded Indians were kidnapped and most of them were from Punjab. The Union minister revealed that the bodies of the deceased were exhumed and DNA samples sent for forensic test. The 39 Indians were kidnapped by ISIS in Mosul in 2014. Until October last year, both India and Iraq had contended that the 39 people were alive. The relatives of the 39 Indians were made to undergo DNA test last year. She also told Parliament that MoS EAM, General VK Singh, will go to Iraq to bring back mortal remains. The plane carrying mortal remains will first go to Amritsar, then to Patna and then to Kolkata. She further said that mortal remains of deceased were kept in Baghdad. The government had sent DNA samples of relatives for the purpose of verification of bodies. Along with the Central, four state governments – Punjab, Himachal Pradesh, West Bengal and Bihar – were also involved in the process. Deep penetration radar confirmed that all Indians were dead after all bodies were exhumed.

Although such sad events do not warrant war of words, yet Congress Party MP Shashi Tharoor in his condolence also criticized the government for raising false hope to nation — “Thoughts & prayers are w/their families. But why  did the Govt give false hope to the nation for three and a half years that the people were still alive?”  Deep condolence was also expressed by Punjab Chief Minister Amarinder Singh who twitted “Shattered at the heart-wrenching news from @SushmaSwaraj that the 39 Indians missing in Iraq, most of whom were Punjabis, are dead. My heart goes out to the families who had been living in hope since their reported abduction by ISIS in 2014. Prayers with all of them.” Defending herself against a raft of criticism, External Affairs Minister Sushma Swaraj  accused the Congress of indulging in ‘cheap politics’ even as she said the government did not keep anyone in the dark over the death of 39 Indians in Iraq’s Mosul. In a press conference, Mrs.Swaraj noted that while everyone listened to her statement patiently in the Rajya Sabha, she expected the same in the Lok Sabha but the Congress led by Jyotiraditya Scindia disrupted her speech. Giving details from the incident, Swaraj said, “Our govt does not believe in “missing, believed to be killed”. Declared about the death of 39 Indians only after getting proof. While maintaining that she did not keep anyone in the dark about the deaths, Sushma Swaraj said, “It would have been a sin had we handed over anybody’s body claiming it to be those of our people, just for the sake of closing files.”

Background

 A group of 40 Indian workers, mostly from Punjab, and some Bangladeshi were taken hostage by ISIS when it overran Iraq’s second largest city Mosul in 2014. Of the 40 Indians, one Harjit Masih from Gurdaspur had managed to escape. The  Islamic State of Iraq and Syria  or the Islamic State of Iraq and the Levant is a Salafi jihadist terrorist organisation and former unrecognised proto-state that follows fundamentalist, Wahhabi, and heterodox doctrine of Sunni Islam. ISIL gained global prominence in early 2014 when it drove Iraqi government forces out of key cities in its Western Iraq offensive, followed by its capture of Mosul and the Sinjar massacre. This group has been designated a terrorist organisation by the United Nations and many individual countries. ISIL is widely known for its videos of beheadings and other types of executions of both soldiers and civilians, including journalists and aid workers, and its destruction of cultural heritage sites. The United Nations holds ISIL responsible for human rights abuses and war crimes. ISIL also committed ethnic cleansing on a historic scale in northern Iraq. ISIL originated as Jama’at al-Tawhid wal-Jihad in 1999, which pledged allegiance to al-Qaeda and participated in the Iraqi insurgency following the 2003 invasion of Iraq by Western forces.  In July 2017, the group lost control of its largest city, Mosul, to the Iraqi army. Following this major defeat, ISIL continued to lose territory to the various states and other military forces allied against it, until it controlled no meaningful territory by November 2017. U.S. military officials reported in December 2017 that the group retained a mere 2 percent of the territory they had previously held. On 10 December 2017, Iraq’s Prime Minister Haider al-Abadi said that Iraqi forces had driven the last remnants of Islamic State from the country, three years after the militant group captured about a third of Iraq’s territory. Simultaneous military analyses in December 2017 reported that the group had lost more than 98% of the territory it controlled a year prior.

US hikes tariffs on Steel and Aluminum, other import items may be included soon

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Notwithstanding cautions from experts, his own Republican Party members and opposition Democratic Party regarding possible ignition of a regressive global trade war, President Donald Trump ordered steep new tariffs on steel and aluminum imports to the U.S. on March 08. He in his usual bullish style vowed to fight back against an “assault on our country” by foreign competitors. Despite a week of furious lobbying against his plan by Republican lawmakers and some of his own advisers, Trump said he would go ahead with penalty tariffs of 25 percent on imported steel and 10 percent on aluminum. But he also said the penalties could “go up or down depending on the country, and I’ll have a right to drop out countries or add countries. I just want fairness.” However, he exempted Canada and Mexico as “a special case” but asserted that he will negotiate for changes to the North American Free Trade Agreement with them. The new tariffs were proposed to take effect in 15 days.

                   Australia and some “other countries” might be spared for strategic reasons and fear of retaliation by trading partners. Those “other countries” can try to negotiate their way out of the tariffs, he indicated, by ensuring their trade actions do not harm America’s security. Reasoning on his tariff measures president Trump cast his action as necessary to protect industries “ravaged by aggressive foreign trade practices. It’s really an assault on our country. It’s been an assault.”

                    His move, an assertive step for his “America First” agenda, has rattled allies across the globe and raised questions at home about whether protectionism will impede U.S. economic growth. The president made his announcement the same day that officials from 11 other Pacific Rim countries signed a sweeping trade agreement that came together after he pulled the U.S. out of the Trans-Pacific Partnership last year.

                        Though he focused on workers and their companies in his announcement, Trump’s legal proclamation made a major point that weakened steel and aluminum industries represent a major threat to America’s military strength and national security. He also criticized past government’s failure in taking any step against exporters who harmed the US steel and aluminum industry by selling cheap in US domestic market.

                 There may be some immediate advantages to US industry. Century Aluminum Chief Executive Michael Bless said the tariffs would allow his company, which produces high-purity aluminum used in military aircraft, to recall about 300 workers and restart idled production lines at its smelter in eastern Kentucky by early 2019. And Trump took note of U.S. Steel’s announcement that it planned to ramp up activity at its plant in Granite City, Illinois, and recall about 500 employees because of the new tariffs.

                   But there was political criticism aplenty, especially from Trump’s own Republican Party. House Speaker Paul Ryan, appearing with Home Depot employees in Atlanta, warned of “unintended consequences.” And Sen. Ron Johnson of Wisconsin called the tariffs “a very risky action” that could put agricultural and manufacturing jobs at risk. “I’m not sure there are any winners in trade wars,” said Johnson, who once ran a plastics manufacturing business in his home state. Democratic Sen. Dick Durbin of Illinois said Trump’s action was “like dropping a bomb on a flea” and could carry “huge unintended consequences for American manufacturers who depend on imported materials.”Business leaders, too, sounded their alarm about the potential economic fallout, warning that American consumers would be hurt by higher prices. They noted that steel-consuming companies said tariffs imposed in 2002 by President George W. Bush ended up wiping out 200,000 U.S. jobs. “Tariffs are taxes, and the American taxpayer will pay the cost of a trade war,” said Cody Lusk, president and CEO of the American International Automobile Dealers Association. “Even with limited exemptions, tariffs will raise the sale prices of new vehicles.”

                      Nations around the globe that were not excluded from the tariffs reacted with dismay. The European Union warned before the announcement that it was ready to retaliate with counter-measures against iconic U.S. products such as Harley Davidson motorcycles, Levi’s jeans and bourbon. EU Trade Commissioner Cecilia Malmstrom tweeted after Trump’s announcement that “the EU should be excluded from these measures.” Malmstrom said she would be meeting with U.S. Trade Representative Robert Lighthizer in Brussels soon.  The British government said tariffs “are not the right way to address the global problem of overcapacity” and said it would work with EU partners “to consider the scope for exemptions outlined today.” Japanese Foreign Minister Taro Kono called the decision “extremely regrettable,” predicting it could have a major impact on the economy and the relationship between the U.S. and Japan, as well as the global economy. South Korea also expressed its displeasure and wanted concessions from the US. According to White House the exemptions for Canada and Mexico could be ended if talks to renegotiate NAFTA stall.

Rise of Magadha

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Origins of the early state

A new phase of political development in the Eastern Gangetic plains started when Koshala, Avanti, Vatsa and Magadha mahajanapadas established their hegemony over others.

Rise of Magadha

Bimbisara

Magadha rose into prominence under the rule of Bimbisara of Haryanka dynasty.  Most probably, he overthrew the Brihadrathas from Magadha and assumed the title “Srinika” after his accession.  He ruled Magadha from 544 B.C. to 493 B.C. His greatest achievement was the establishment of Magadhan Empire.

Expansion

He followed fourfold policy in order to fulfill his programme of imperial expansion.

  1. Matrimonial Alliance
  2. Conquests
  3. Friendly Relations
  4. Consolidation

Matrimonial Alliance

By adopting the policy of matrimonial alliance, Bimbisara tried to augment his power. He married Kosaladevi, daughter of king Mahakosala of Kosala, received the Kasi village as dowry, which yielded revenue of 1, 00,000. “Mahavamsa” mentions his marriage with Chellana the daughter of Chetak, the Lichchavi chief of Vaisali. He then married Vasavi, a princess of Videha in the northward.

          He also married Khema, the daughter of king of Modra in Central Punjab. The establishment of matrimonial relations with these states added glory to the Magadhna Empire.  It also paved the way for the expansion of Magadhan Empire and westward.

Conquest

The next policy of Bimbisara for the expansion of Magadhan Empire was the policy of conquest. Bimbisara led a campaign against the kingdom of Anga and defeated its king Brahmadatta.  Anga along with its capital city Champa, was annexed to the Magadhan empire.

Friendly Relation with distant Neighbours

As a farsighted diplomat, Bimbisara had followed the policy of friendship towards the distant neighbours to win their co-operation for the safety and security of his empire.  He received an embassy and letter from Pukkusati, the ruler of Gandhar with which Pradyota had fought unsuccessfully.

             Magadha’s most formidable enemy was Chanda Pradyota Mahasena of Avanti who fought with Bimbisara but ultimately the two thought it wise to become friends.  He also sent his physician Jivak to Ujjain when Pradyota was attacked by jaundice.

Consolidation

By introducing a highly efficient system of administration, Bimbisara consolidated his conquests.  His administration was found to have been really well organised and efficient.  The high officers were divided into three classes, viz. executive, military and judicial.

Administration

The ‘Sabarthakas’ were responsible for the management of general administration. “Senanayaka Mahamatras” were in charge of military affairs.  “Vyavaharika Mahamatra’s” were in charge of judicial-administration.  Provincial administration was also well organised.

Provincial Administration

The head of provincial administration was “Uparaja”.  The villages enjoyed rural autonomy. “Gramika” was the head of the village administration.  The penal laws were severe.

Development

Bimbisara also developed the means of communication by constructing good roads. He is said to have established a new capital at Rajagriha situated on the outskirts of the old capital Girivraja. It is said that his kingdom had consisted of 80,000 villages.

Follower of Buddhism

He was a devotee of Buddha.  He donated a garden named “Belubana” to the Buddhist Sangha. According to the Buddhist chronicle Bimbisara ruled Magadha from 544 B.C. to 493 B.C.

Ajatasatru (492-460 BC)

His son Ajatasatru who had killed him and seized the throne for himself succeeded Bimbisara. The reign of Ajatasatru witnessed the high watermark of Bimbisara dynasty. From the very beginning, Ajatasatru pursued the policy of expansion and conquest.

Conquests of Ajatasatru

He began a prolonged war with Prasenjit of Kosala who had revoked the gift of the Kasi village made to Bimbisara.  The war continued for some time with varying success to both sides till Prasenjit ended it by giving his daughter, Vajira Kumari in marriage to Ajatasatru and leaving him in possession of Kasi.

            The next achievement of Ajatasatru was the conquest of Lichchavis of Vaisali.  Chetak, chief of Lichchavis had formed a strong confederacy comprising 36 republics in order to fight Magadha. According to jaina sources, before his death, Bimbisara gave his elephant “Seyanaga” “Sechanaka” and two large bejewelled necklaces, one each to his sons Halla and Vehalla who were born of their Lichahhavi mother, Chellana.

Conflict with Lichchhavis

Chetak had given them political assylum.  After his accession, Ajatasatru requested chetak to surrender them.  However, Chetak refused to extradite Chetaka’s stepbrothers.  So the conflict between Ajatasatru and Lichchhavis became inevitable. According to Buddhist text Ajatasatru had entered into an agreement with Lichchhavis to divide among them the gems extracted from a mine at the foot of the hill near the river Ganges.  But the Lichchhavis deprived Ajatasatru of his share.  But Dr. H.C. Raychoudhury points out that the most potent cause of war was the common movement among the republican states against the rising imperialism of Magadha.

                     Ajatasatru invaded their territory and it took him full sixteen years to destroy Lichchhavis.  In this war, he used some new weapons and devices like “mahasilakantaka” and “rathamushala” to overpower the enemy.  Ultimately, Lichchhavi was annexed to the Magadhan territory.

Udayin

His son Udayin who ruled for sixteen years succeeded Ajatasatru.  The Buddhist texts describe him as a patricide whereas the jaina literature mentions him as a devoted son to his father.  Udayin built the city of Pataliputra at the fort of Patalagrama which commanded the strategically and commercial highway of eastern India. During his rule, Avanti became jealous of the ascendancy of Magadha and a contest between the two started for mastery of Northern India.

Decline

It is said that assassin engaged by Palaka, the king of Avanti, has murdered Udayin.  According to Ceylonese chronicle three kings namely Aniruddha, Manda and Nagadasaka succeeded Udayin.

End of Haryankas

The Ceylonese chronicle describes that all the three kings were patricide. The people resented their rule, revolted against the last king Nagadasaka, and raised an amatya Sisunaga on the throne of Magadha.  With this restoration, the rule of Haryanka dynasty came to end and the rule of Sisunaga dynasty came into being.

Shishunaga Dynasty

Sisunaga served as the viceroy of Kasi before he ascended the throne of Magadha.  He established his capital at Girivaraja.  His greatest achievement was the conquest and annexation of Avanti.  This brought to an end the hundred year’s rivalry between Magadha and Avanti.

Shishunaga

Probably he had annexed Vatsa and Kosala Kingdoms to Magadha.  Towards the later part of his regain he temporarily shifted his capital to Vaisali. His son Kalasoka or Kakavarna succeeded Sisunaga.

Kalasoka or Kakavarna.

The reign of Kalasoka is important for two events, viz., the transfer of Magadha capital from Girivaraja to Pataliputra and holding of the second Buddhist Congress at Vaisali.  Very unfortunately, he lost his life in a palace revolution, which brought the Nandas upon the throne of Magadha.

End of Shishunaga Dynasty

The usurper was probably Mahapadma Nanda, the founder of Nanda dynasty and he killed the ten sons of Kalasoka who ruled jointly.  Thus, the Sisunaga dynasty was followed by the new dynasty of the Nandas.

Nanda Dynasty:Mahapadma Nanda

The rule of Nandas marked the beginning of a new epoch in the history of Ancient India. Under the Nandas the provincial kingdom of Magadha was transformed into an empire. According to R.K. Mookheijee, Mahapadmananda was the “first historical emperor of India.”  Mahapadmananda usurped the throne after murdering Kalasoka and his sons.

Origin of Nandas

The ancestry of Mahapadmananda is a controversial question. There are two fold versions of his origin. According to the Puranas, he was the son of Kalashoka by a sudra woman. The jaina work Parisishtaparvana describes him as the son of a courtesan by a barber.

Mahapadma Nanda

Mahapadma Nanda ruled over Magadha for twenty eight years from 367 B.C. to 338 B.C. He established a strong government in Magadha. Being the ruler of a prosperous country, Mahapadmananda was destined to realize the dream of Magadhan imperialism. The puranas describe him as “Sarva Kashtriyantaka” or the destroyer of all the kshatriyas and the Ekrat or sole soverign.

Expansion

From this, it is implied that he uprooted the kshatriya dynasties such as Aikshavakus of Kosala, Panchalas of the Upper Ganges and Doab the Kasis,  Haihayas of Narmada Valley, Kalingas of Orissa, Asmakas of Godavari Valley in Hyderabad,  Kurus of Upper Ganges region on the confines of Punjab,  Maithilas of Mithila of Nepalese Terai,  Saurasenas of Mathura on the banks of the Jumna and  Vitihotras of Western India adjacent to Avanti.

Annexation of Kalinga

He conquered Kalinga and it is proved by two passages of Hati-Gumpha Inscription of Kharavela.  It is known from Hathigumpha Inscription that Nandaraja (Mahapadmananda) constructed some irrigation dams in the province and carried away the statue of first Jina from Kalinga as a war trophy.

Geographical Boundries of Empire

The southern frontier of the Nanda Empire extended up to Godavari Valley in the Deccan, which is proved by the existence of a city called “Nav Nandar Dehra” on the Godavari.  Thus under Mahapadma Nanda Magadhan empire was extended from Kuru country in the north to the Godavari Valley in the south and from Magadha in the east to the Narmada on the west.

The Successors of Mahapadma Nanda

The Buddhist work Maha Bodhivamsa gives a list of the Nava Nandas in which Mahapandma Nanda and eight others are included.  It is generally accepted by the scholars that the term Nava means nine and that the total number of kings of Nanda dynasty is nine.  The Buddhist texts describe all the nine Nanda Kings as brothers.  But the Puranas describe Mahapadma as the father and the eight Nandas as his sons.

Dhana Nanda

The Puranas have described that eight sons of Mahapadma Nanda ruled Magadha for twelve years.  The Mahabodhivamsa mentions the name of the last Nanda king as Dhana Nanda who was  a contemporary of Alexander the Great. He had a passionate love for hoarding treasures.

Fall of Nandas

Inspite of his power and wealth, Dhana Nanda lost the support of the people.  He became unpopular among his people for three reasons, which ultimately brought his downfall.

              Firstly, he taxed people heavily in order to meet the expenses of his vast army and to satisfy his lust for wealth.

             Secondly, the low origin and anti-Kshatriya policy of the Nandas coupled with their leaning towards jainism created a number of enemies who were instrumental in bringing their downfall.

             Thirdly, the people could find a leader in Chandragupta Maurya and overthrew the last Nanda king from the throne.

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