Speech

Speech

As a External affair minister


Inaugural address by External Affairs Minister
Hon’ble Shri Pranab Mukherjee
at the International Conference on
“Cooperative Development, Peace and Security in South & Central Asia”
(Kolkata, March 01, 2009)


,
Ladies and Gentlemen,

It gives me great pleasure to deliver this inaugural address at the International Conference on “Cooperative Development, Peace and Security in South and Central Asia”, organized by the Centre for Research in Rural and Industrial Development (CRRID), Chandigarh, The Global India Foundation and the Maulana Abul Kalam Azad Institute of Asian Studies, Kolkata. Jadavpur University has very graciously made available the premises for holding the conference. I would also like to acknowledge the presence of the distinguished Indian and foreign participants, who are attending this seminar. I am sure your contributions will be valuable inputs in the deliberations of this conference.
At the outset, let me congratulate the organizers for selecting this critically important theme. If the countries of South Asia form India’s immediate neighbourhood, Central Asia is part of our extended neighbourhood. The region is an enormous landmass. Bonds of geography, history, culture and values tie the peoples of this region together. All through the region, efforts are underway to achieve the common good through greater exchanges at multiple levels – Governmental, Parliamentary, academic, cultural and most importantly at the level of peoples through the promotion of tourism, commerce and cooperation in the field of education. These efforts have to be accelerated for the region to confront its common challenges - poverty alleviation, health, education and industrialization. It is also our firm conviction that internal stability and economic progress in all our neighbouring countries is in India’s interest. It is only through shared economic development that we can achieve our objectives of lasting peace and security.
Growth and development are closely intertwined with peace and security. Pandit Jawahar Lal Nehru had once said “without peace, all other dreams vanish and are reduced to ashes”. Terrorism, extremism and fundamentalism are posing a serious threat to peace and security in our region, be it India, Afghanistan, Uzbekistan or Tajikistan. The propagation of intolerance and hatred, and the resultant terrorism, is the greatest threat to world peace and security in the post-Cold War era. The terrorist attacks in Mumbai were one more manifestation of terrorism in our region. It is imperative that all governments of the region take urgent, proactive measures to eliminate terrorism in all its forms and manifestations so that these forces do not derail the processes of progress and prosperity. Pakistan in particular should fully cooperate to bring those guilty of the conspiracy behind Mumbai attacks to justice. it is essential that Pakistan takes decisive action to effectively root out terrorism from territories under its control.
Ladies and gentlemen,

Let me now touch upon some of the overarching complementarities among the countries of this region. Firstly, food security has been recognized as an important challenge for our region and the world. South Asia has some of the most densely populated areas in the world while Central Asia has some very sparsely populated areas. The Conference could look at joint efforts between the countries of this region to bolster mutual goals for their food security.

Secondly, energy security is another big challenge of modern times. The hydropower surplus of Central Asia in summer months fits in smoothly with the shortages in those periods in South Asian states. Of course, the production and transmission capacities would need to be built and feasibility of the investments required would need expert assessment. The Asian Development Bank has done some work in this field. In the area of hydrocarbons, there is a meshing of interests between India and other countries of South Asia as consumers and countries such as Turkmenistan, Uzbekistan and Kazakhstan as suppliers.
Thirdly, India has gained entrepreneurial experience over the years in many areas which are of relevance to the development of Central Asia. These include mining, metallurgy, engineering, automobiles and consumer goods. There have been some success stories of Indian investments in the region in the textile, metals and construction sectors, which could be replicated. Cooperation in such sectors as leather, chemicals, pharmaceuticals, finance, capital markets and services can be explored. Besides, India offers a large market for all our neighbours. We need to identify ways of enhancing trade flows, which depend on physical connectivities, banking linkages, governmental regulation and administrative procedures. It would be in the common interest of all our countries to promote these connectivities and interlinkages amongst us. I hope that you would evaluate opportunities existing for intra-regional trade through expanding transport routes and simplifying transit processes among countries of South and Central Asia.

Lastly, human resource development is vital for the progress of any country. India’s ITEC programme offers short-term training programmes in the fields of IT, management, entrepreneurship, English language, finance and others to about 500 candidates from Central Asia. India has undertaken several small-scale developmental and human resource projects in the region and we would be pleased to further share our knowledge with our neighbors. Several countries in the region have attained notable progress in education and science, and greater cooperation in these areas would be in our common interest. We need to find mechanisms to promote this process through greater exchange of students, scholars and cooperative programmes.
Ladies and gentlemen,

I will now touch upon our relations with individual countries of the region, as also some important regional structures. In South Asia, we have continued to strengthen our bilateral relations with our neighbours. I believe we have been generally successful in this endeavour, with the exception of Pakistan, though we do not, in any way, discount the potential of close and friendly relations with them in future.

We remain committed to support the people and the Government of Nepal in consolidating the democratic transition and in its developmental efforts. With Nepal, we see immense long-term mutual benefits in the areas of greater linkages and connectivity, better border infrastructure and mutually beneficial cooperation in the area of hydro-power. With Sri Lanka, our relations are marked by a broad-based improvement across all sectors including trade and investment, education, tourism and people-to-people exchanges. As regards the ethnic conflict, we believe that the Sri Lankan military success should be quickly followed by a political solution involving a credible devolution that will meet the legitimate aspirations of all communities, including the Tamils, within the framework of a united Sri Lanka. In the interim, we have appealed to the Sri Lankan government to work out appropriate and credible procedures for the evacuation of Internally Displaced Persons (IDPs) to safety. We are providing all necessary help including humanitarian relief and medical care.
We welcomed the successful elections in Bangladesh, as a resounding victory of democracy. The people of Bangladesh have given a clear mandate and reposed full faith in the newly elected government under the leadership of Prime Minister Sheikh Hasina. During my visit to Dhaka last month, I discussed the whole gamut of our bilateral relations, including issues related to security, border management, connectivity and promoting trade, investment and people-to-people level contacts.

We have welcomed the voluntary and peaceful transition to democracy in Bhutan. Our relations with Bhutan are truly a model of bilateral cooperation, which will strengthen even further in the years ahead.

As regards Afghanistan, despite the serious deterioration in the internal security situation, which impinge directly on India, we have continued our reconstruction and development assistance programmes. With over US$ 1.2 billion assistance, we are the 6th largest bilateral donor in that country. I recently inaugurated the Zaranj-Delaram road which will provide better access to the country through Iran.
With Pakistan, notwithstanding important achievements in the Composite Dialogue Process over the last four years, their non-implementation of solemn commitments given to us, i.e., not to permit territory under their control to support terrorism, has placed our dialogue process under stress. Pakistan’s response of February 12, admitting that elements in Pakistan were involved in the Mumbai attacks, is a positive first step. At the same time, they need to do more. The perpetrators of the attacks should be brought to justice and Pakistan must dismantle the infrastructure of terrorism in its territory in order to prevent recurrence of such attacks. Until these actions are taken, the threat of terrorism from Pakistan will remain a major challenge to India and the region. However, I would like to also underline here that we have consciously decided not to discontinue people-to-people level contacts and road and rail links, and have kept open the channel of communication with them.
Coming to Central Asia, I am happy to state that India has excellent relations with all the five countries of the region. Bilateral institutional mechanisms by way of Inter-Governmental Commissions and Foreign Office Consultations exist with all Central Asian countries. Building on our strong historical and civilizational links with these countries, today we have friendly, cooperative and more contemporary ties with them. The importance we attach to Central Asia is reflected in the visit of President Nazarbayev of Kazakhstan who was the Chief Guest at the Republic Day celebrations this year. After the independence of their respective countries, President Nazarbayev and President Karimov of Uzbekistan visited India on their first official visits abroad highlighting the importance attached to India by the Central Asian leadership. Although there has been steady increase in bilateral trade with this region, the volume of trade remains unsatisfactory. There are enormous possibilities for increasing bilateral trade and investments and for greater economic cooperation generally. India’s experience in boosting food production, including milk production and modernizing agro-techniques could also be relevant for Central Asia. Absence of direct surface transportation routes with this landlocked region has been a constraint in further developing economic and trade ties.
Trade through the Iranian port of Bandar Abbas under the framework of International North-South Transport Corridor (set up jointly by India, Russia and Iran) is under discussion. There is air connectivity with Kazakhstan, Uzbekistan and Turkmenistan through direct flights with Indian cities. However, the existing flight connections have the potential for expansion in terms of capacity and frequency. Unfortunately, there is no Indian carrier flying into the region though we are trying to encourage such flights. We also have cooperation with some Central Asian countries in the field of defence, primarily for training of military personnel in India.

At the regional level, regional organizations provide useful structures for promoting joint endeavours. SAARC has made notable progress in bringing South Asian countries together over the last twenty-three years. The SAARC development fund has made a promising beginning. We have agreed on moving towards a South Asian Customs Union and Economic Union; established a SAARC Food Bank; are improving physical connectivity; and are establishing a South Asian university. On their part, the Central Asian countries are working together under the rubric of Shanghai Cooperation Organization and Eurasian Economic Community. The Conference on Interactions and Confidence building measures in Asia (CICA) brings most South and Central Asian countries together into a mechanism for expanding cooperation and development. Thus, requisite institutional structures are in place to give an impetus to cooperation across the region.

Ladies and gentlemen,
In conclusion, I would like to say that secularism and tolerance, which are concomitant with peace and progress of our pluralistic societies, have been the hallmark of South and Central Asia for a long time. These norms and customs have come under considerable pressure from extremist and fundamentalist forces. I believe that apart from the government, scholars and think tanks have a crucial role to play to promote prevalence of reason and rationale over distortion and misinformation undertaken by the negative forces in our region. I am confident that this Conference is a right step in that direction.

I convey my best wishes for the success of this conference. I hope that the participants can make concrete suggestions which could be examined and acted upon by the Governments of India and South and Central Asian countries, as well as by their corporate sectors.







2)  Speech by Shri Pranab Mukherjee, Minister of External Affairs
at the Special Plenary of the 5th India-Africa Conclave

Monday, 23 March, 2009

Your Excellencies, Honourable Ministers and dignitaries from Africa, Ambassadors & High Commissioners,

Mr. Sanjay Kirloskar, Chairman, Kirloskar Brothers Ltd.,

Mr. Chandrajit Banerjee, Director General of Confederation of Indian Industry,

Distinguished Guests, Ladies and Gentlemen,

It is my great privilege to be present amidst you today at this special plenary session of the 5th CIl-EXIM Bank Conclave on the lndia-Africa Project Partnership 2009. This event has become a most prestigious gathering of government and business representatives from Africa and India. It is a reflection of our common desire to share each other’s capabilities and capacities for mutual benefit and for the socio-economic development of our peoples.

I have been informed that this year’s Conclave has generated overwhelming response with more than 450 participants registering from Africa and nearly 315 from India. I congratulate the Confederation of Indian Industry and EXIM Bank for this.

Such periodical gatherings not only give us an occasion to renew our acquaintance, but also enable us to take stock of the progress made in the implementation of our mutual commitments and to address our future needs.
Friends, the theme of this year’s Conclave is “India-Africa: Celebrating the Partnership”. The India-Africa partnership has evolved over decades with mutual respect for each other’s traditions, cultures and the desire to ensure that the benefits of development are spread evenly and reach all our peoples, particularly the most disadvantaged.

The long and historic relationship between India and Africa has now evolved into a sustainable partnership. During our march together, we have traversed similar paths, shared similar values and cherished the same dreams.

Today, both India and Africa have emerged as strong and dependable partners, who are well positioned to confront the growing challenges facing humanity, be it combating the scourge of international terrorism, eradicating hunger and poverty, tackling global warming, or evolving new frameworks for international institutions.

Our time-tested and multifaceted relationship with Africa is based on the solid foundation of our steadfast commitment for the rapid growth and progress of Africa. The formalisation of an institutional mechanism for the India-Africa dialogue in the form of the India-Africa Forum Summit is a reflection of India’s commitment to work with the continent to fulfil its aspirations.

International trade and market access are crucially important for development. Recognising this, Prime Minister Dr. Manmohan Singh unilaterally announced India’s Duty Free Tariff Preference Scheme (DFTP) in April last year in New Delhi for 49 Least Developed Countries (LDCs) of which 33 are from the African continent including the Cotton-4 countries, i.e. Burkina Faso, Benin, Chad and Mali. This Scheme covers 94% of India’s total tariff lines. I would urge all LDCs in Africa to fully utilize this scheme. We are happy to provide them greater market access to India.
Since the inception of the Indian Technical and Economic Cooperation (ITEC) Programme in 1964, capacity building and human resource development in Africa has been an area of high priority for the Government of India. The ITEC programme has benefited thousands of experts and students from Africa who came for training courses in professional institutions in India. These courses cover diverse fields such as agriculture and agro processing, entrepreneurship development, tool design, small business creation, promotion of rural industries and information technology. Our “Barefoot College” and the “Hole-in-the-Wall” programmes have received enthusiastic response from several countries. This year the Ministry of External Affairs has designed special courses for experts from Africa in the field of mining and new and renewable energy resources. We have increased the number of training slots for African countries from 1100 to 1600. I would like to urge all my friends from Africa to fully utilize these training courses.

I am happy to note that several thousand African students are currently studying in Indian universities and colleges. We have doubled the number of scholarships for the African countries to 500 this year.

Over the next five to six years India will also undertake in Africa, on a grant basis, projects in critical areas such as higher and vocational education, science, IT, agriculture and renewable energy. A sum of US$500 million has been allocated for this.
Government of India’s Pan-African e-Network Project is another shining example of the India-Africa partnership. Under this project, India has provided a dedicated satellite link for e-connectivity to help bridge the digital divide in Africa. The project aims at linking major universities in different regions of Africa with major Indian universities and centres of excellence on the one hand, as also major hospitals in Africa with super-specialty hospitals in India, on the other. I had the privilege of inaugurating the first phase of this project last month which covers eleven countries. We hope to extend this to another 22 countries by the middle of this year. I am confident that this project would be immensely useful to our friends in their effort to disseminate higher education and modern medicine.

It is a matter of satisfaction to note that our bilateral trade with Africa has grown manifold and reached a level of US$36 billion in 2007-08, up from US$3 billion in 2000-01. Given the concrete opportunities that exist between the two sides, India-Africa trade could easily be doubled to US$70 billion over the next five years. I would urge this Conclave to accept this challenge and plan out strategies to achieve it.

Ladies and Gentlemen, it is important to supplement governmental efforts with those from industry, civil society and private institutions in order to widen and deepen the foundation of our growing partnership. I am confident that such empowered gatherings comprising of entrepreneurs, investors and business leaders would provide the necessary impetus to promote B2B interactions and public-private partnerships between the two sides.
I acknowledge, in this context, the pioneering role played by India’s public and private sector in promoting joint ventures and investments in Africa in core sectors, particularly in the fields of agriculture, power generation, irrigation, pharmaceuticals, IT and health.

Of late, there have been further investments or plans for investment by both Indian public and private sector companies in the energy sector. These plans entail capacity development and value addition in a broader sense and are, therefore mutually beneficial and sustainable.

Ladies & Gentlemen, India is the world’s largest importer of rough diamonds and exporter of cut and polished diamonds. Most of the raw diamonds for our cutting and polishing industry are sourced from Africa. As part of our philosophy of sharing our knowledge with others, and in pursuance of our policy to increase capacity building in Africa, our government has favourably considered the request of some African countries to set up Diamond Cutting and Polishing Institutes for training of their personnel in cutting/polishing skills.

The endeavours of the African Union towards regional economic integration and for building Pan-African institutions are truly commendable. We will continue our support for these efforts as well as those to meet the Millennium Development Goals, especially in the areas of human resource development and capacity building. We have an open mind on looking at new and innovative ideas and sectors in this regard. I would urge delegates here to give thought to this aspect.
Ladies and gentlemen, let me conclude by saying that the current global financial crisis and general economic downturn have impacted us all. However, it is our firm intention to continue to fulfil the commitments we announced towards Africa at the India-Africa Forum Summit last April.

Excellencies, in the post-colonial era, India and African countries have been together since their birth as independent nations. Our destinies and future remain closely intertwined. That is my message to you.
Thank You


3) Statement by EAM at unveiling of Model of Core Shelters
  09/02/2009  
Statement by External Affairs Minister Shri Pranab Mukherjee at the unveiling of Model of Core Shelter for Cyclone ‘Sidr’ affected villages in Bangladesh
(Dhaka, 9 February 2009)

Hon'ble Minister, Ladies and Gentlemen,

My last visit to Dhaka was in the aftermath of the devastating cyclone ‘Sidr’ in Bangladesh on November 15, 2007. During my visit I had visited some of the cyclone elected areas and vividly recall the devastating impact of the cyclone which caused severe loss of several lives, property and untold sufferings to the people of Bangladesh. I admire the people of Bangladesh for their courage, endurance and resilience with which they have reconstructed and rebuilt their lives after the devastating calamity.

2. Ladies and Gentlemen, as a close and friendly neighbour, India stands committed to assist Bangladesh in its hour of need. After the natural calamities in Bangladesh in recent years, India has readily provided aid and assistance including cash assistance of USD 10 million and food aid consisting of essential items including rice and milk powder, etc., worth nearly USD 40 million. The 5,00,000 MT of rice for which we had granted a waiver on ban of export has also been supplied to Bangladesh.
3. India is committed to rehabilitating 11 cyclone affected villages. I have the pleasure to unveil today the model of the 2800 core shelters which we would be constructing soon in these 11 cyclone ‘Sidr’ affected villages. The modalities for implementation of the project have been worked out in consultation with the Government of Bangladesh and work would on the project would start soon. The unit has been designed to utilize locally available material to the maximum extent possible and this project will also contribute to the socio-economic development of the region as we would be engaging the local people for executing the project.

4. I wish to express my gratitude to Dr Abdur Razzak , Minister of Food and Disaster Management for his presence today and hope this project will contribute to further strengthening relations between our two countries.

Thank You.

Inaugural Address by EAM at National Academy of Statistical Administration (NASA)
  13/02/2009  
Inaugural Address by Minister of External Affairs & Finance Hon’ble Pranab Mukherjee, at the dedication of National Academy of Statistical Administration (NASA)

13th February, 2009

Shri G. K. Vasan, Hon’ble Minister of State for Statistics & Programme Implementation
Shri Oscar Fernandes, Minister of State for Labour and Employment
Dr. C Rangarajan, Member of Parliament;
Prof. S. Tendulkar, Chairman of the Prime Minister’s Economic Advisory Council and Chairman of the National Statistical Commission;
Dr. Pronab Sen, Chief Statistician of India and Secretary, Ministry of Statistics and
Programme Implementation;
Shri S. K. Das, DG, CSO;
Officers and Dignitaries;

Ladies and Gentlemen

At the outset, let me express my gratitude for giving me the privilege to dedicate the National Academy of Statistical Administration (NASA) to the Nation. This institution will be responsible for imparting training and undertaking research in official Statistics, an objective, so important and critical to the improvement of the vital statistical system in the country.
India has a long history of evolution of statistics, not only as a pure science but also as an applied science. The history dates back to Kautilya’s Arthasastra, one of the oldest treatises on economics, referencing to system of census and data collection way back in 4th century BC. Its evolution went on with vigour and in its march, contributed significantly to the development of India’s post independence development and planning processes. As I stand here, on this occasion of dedicating NASA to the nation, it would be in fitness to remember the great statisticians which this country has produced. Foremost among them is perhaps Prof P C Mahalanobis.

Statistics is all about measurement. At this juncture, when the country is taking rapid strides towards economic development, need for a reliable statistical system to measure its impact on the millions cannot be over emphasized. It is well known that which cannot be measured cannot be managed well. The size of our country, its economy and the complex socio-economic diversities make all activities relating to measurement a daunting task; and also an expensive exercise. It is in this context that the national and the sub-national statistical systems use a judicious mix of administrative data, censuses and nation wide sample surveys, the three components of the statistical system, to evaluate the progress of the country vis-à-vis the goals. The last one in particular – the regular and periodical National Sample Surveys – was an Indian innovation, pioneered by the architect of the existing statistical system in the country, Professor P C Mahalanobis. The beginning made by Prof Mahalanobis, continues to produce reliable national aggregates in a cost effective way, facilitating national planning.
The official statistics provide crucial indicators of the society’s overall socio-economic development and hence it acts as an important instrument of measuring good governance. Official Statistics is certainly a powerful tool which empowers the common man, to participate in public scrutiny and debate on the functioning of the governments and facilitates in taking decisions about its success and failures. He uses this to translate his right of choice into a vote - democratic process to which we all are committed to. As it is said, statistics is an estimation of truth, within the specified limits of uncertainty. Thus, it is our responsibility to keep the statistical system strong and vibrant with new techniques and methodologies, strategies, plan and programmes.

Today, almost all over the world, Governments are resorting to evidence based planning for the economic development. In order that planning is successful in meeting its objectives, it must be based on sound analysis of the complex statistical data using appropriate statistical techniques. In these times, administrative statistics is not confined to only the affairs of the State and to the government functionaries. Modern statistical techniques are making way into diversified areas, thereby engaging attention of private sector entities. For this reason it is important to engage ourselves in ensuring credibility of the government statistics, generated from the decentralized statistical system at the national and sub-national level.
Ladies & Gentlemen,

The national economy has been witnessing impressive growth rates and the social sector has been rapidly expanding in all dimensions. During this period, there have been clearly discernible paradigm shifts in the manner in which public policy, schemes and programmes based thereon, have been formulated, implemented, reviewed, monitored and evaluated in India. There are two key dimensions relating to economic and social data that are critical at this juncture. The first relates the degree of aggregation and the second relates to the timeliness.

The recent developments in the global economy underline the importance of ensuring that data on key economic indicators are made available in a timely manner at varying levels of disaggregation. This calls for rethink on the strategy for data collection, compilation and its dissemination that is useful to policy makers so that they are able to base their decisions on data and evidence that is current rather than extrapolating from the past. At the same time, valuable information and insights that could be derived from data that is collected often gets irretrievably lost by virtue of aggregation. Timely dissemination of data at greater levels of disaggregation, no doubt, within the bounds of propriety, needs to be explored so that information at a more detailed level may be meaningfully used for policy making, research and also by those responsible for implementing programmes in the field.
The ongoing financial crisis that originated in the US and transmitted to the rest of the World, with amazing swiftness and intensity has highlighted the criticality of ensuring that data on key economic variables are collected, disseminated, interpreted and monitored with greater frequency. This is not only true of financial and monetary variables, but also of variables like savings, consumption, employment, that are conventionally thought to possess huge inertia with respect to change. Time lags in their collection and dissemination lead to unreliable guestimates, approximations and questionable extension of available time series. Such a situation also gives room to anecdotal evidence, incomprehensive sample studies and perhaps incorrect guidance for making mid-course policy corrections.

Therefore, it is important to urgently institute mechanisms to generate statistically acceptable short-frequency data, consistent at different tiers of collection and aggregation, for the regular use of economic administrators. We also need to equip economic administrators to appropriately interpret the data at hand. Addressing these issues necessitates immense efforts at capacity creation, harnessing private abilities and lead roles to be performed by national agencies such as NASA.
Like the federal governance, the National Statistical System, in a major way has a similar responsibility to take along with it the state level statistical systems, meeting their training requirements for all those involved in management of their system. The National Government is committed towards this end and would be ready to take further steps. I am confident that NASA will play a pivotal role towards creating professionally trained statistical manpower to manage the field level challenges of data collection, timely collation, and dissemination. I am also convinced that NASA will fill the gaps which our educational institutions are unable to bridge, that is exposing young students of statistics to the practical application of statistical methods. This will not only capture the innovative minds of the young but would also help create a pool of talent to meet the increasing demand for statistical persons, not only in the government but also in the private sector.

The setting up of NASA and its full fledged operationalisation from today are important initiatives of the Ministry of Statistics and Programme Implementation and a positive contribution towards the development of our country for which I deeply appreciate my colleague Shri Vasan.

In conclusion, I hope that the Academy would transform the experience of training - for the trainees as well as the trainers, in a manner that when they walk out of the Academy, they are not only enriched in statistical tools and techniques, but also develop a unique outlook of life. An outlook that uses the facts only to be subservient to the truth. It is only then that we can say to have served statistics and served through statistics in the true sense.
Thank You

Suo Motu Statement by External Affairs Minister Hon’ble Pranab Mukherjee

13th February, 2009

I rise to inform the House of developments since this House last considered the aftermath of the dastardly terrorist attack on Mumbai. On December 12, 2008 this House resolved, in a solemn Resolution that: “India shall not cease in her efforts until the terrorists and those who have trained, funded and abetted them are exposed and brought to justice”.

2. Through the months of December, January and February, we have continued to use all means available and heightened our diplomatic activity to achieve the goals set for us, namely, to bring the perpetrators of the terrorist attacks on Mumbai to book, and to seek credible steps by Pakistan to ensure that there would no recurrence of such attacks.

3. The Mumbai attacks were a crime committed on India, the conspiracy for which was hatched, planned and organized in Pakistan. In our diplomatic effort, we made it clear to Pakistan and the international community:

 Firstly, that the terrorist attack on Mumbai again underlines the grave threat that terrorism poses to peace and stability and therefore has to be seen in the context of the global challenge of terrorism. Terrorism emanating from Pakistan is of course a direct threat to India, but it is equally a regional and a global threat.
 Secondly, from our investigations the evidence was conclusive that the attack was planned, executed and launched from Pakistan territory, by Pakistanis and by elements based in Pakistan. The primary onus of responsibility lies on Pakistan to fully unveil the conspiracy, identify those guilty and act in a transparent and verifiable manner.
 Thirdly, Mumbai was by no means the first or only terrorist attack on India linked to the infrastructure of terrorism in Pakistan. Nonetheless, with Mumbai a threshold was crossed and it was imperative that Pakistan act credibly against that infrastructure to prevent further attacks.

4. By early January our investigations had progressed to the point where the details could be shared with the international community and specific information, material and leads could be provided to the Government of Pakistan. On the 5th of January we conveyed to the Government of Pakistan material linking the Mumbai attack of 26-29 November, 2008 to elements in Pakistan. This included:

 Material from the interrogation of Mohammed Ajmal Kasab, the Pakistani national who is in police custody.
 Details of the terrorists’ communication links with elements in Pakistan during the Mumbai attack.
 Details of recovered weapons, equipment and other articles.
 Data retrieved from recovered GPS and satellite phones used by the terrorists.
5. A full dossier of the Mumbai attack was also prepared and forwarded to all my counterpart Foreign Ministers. At the same time detailed briefings for all resident Heads of Missions in New Delhi were organised in the Ministry of External Affairs.

6. In our diplomatic exchanges, we conveyed our expectation that the Government of Pakistan promptly undertake further investigations in Pakistan and share the results with us so as to bring the perpetrators to justice, and that Pakistan would implement her bilateral, multilateral and international obligations to prevent terrorism in any manner from territory under her control.

7. It may be useful to recapitulate that this was the fourth formal and official communication that we had addressed to the Government of Pakistan on this issue. I had spoken on the telephone to the Foreign Minister of Pakistan on 28 November, 2008, when he was still in India. That conversation was followed up and formalized in writing on the 29th (the next day) morning in the form of a speaking note. Secondly, on 1st December 2008 a formal demarche was made to the Government of Pakistan. Thirdly, on the 22nd December 2008, a letter from the Pakistani terrorist in our custody was officially forwarded to the Pakistan Government. And fourthly, on 5th January 2009 the dossier, with details I mentioned earlier, was given to the Government of Pakistan.
8. Pakistan’s Response: Hon. Members are aware of the prevarication, denial, diversionary tactics and misplaced sense of victimhood which characterized Pakistan’s reaction from early days after the Mumbai attack. Pakistan’s political leadership did condemn the terrorist attack and promised us full cooperation in investigating the conspiracy in Pakistan. I do not discount in any way either their intent or their sincerity, but the fact remains that the overwhelming response of official Pakistan to the Mumbai attack was not appropriate to a terrorist attack where innocents were massacred in cold blood. Throughout the attempt was to divert attention from the terrorist attack and Pakistan’s responsibilities to other issues.

9. On 16 January, the Government of Pakistan informed us that some action had been taken against the Jamat-ud-Dawa in pursuance to its being listed by the UN as a terrorist organisation. Some of its members were placed on the Exit Control List, some arms licenses were cancelled, instructions issued to freeze the accounts of JuD, some activists of JuD were arrested and certain JuD publications were banned. We were also informed that with effect from 15th January, 2009, the Government of Pakistan had launched a formal enquiry into the Mumbai terrorist attack and that the Federal Investigation Agency had been given the responsibility of conducting the enquiry in accordance with the laws of Pakistan. Some details of the enquiry team were intimated to us.
10. In the afternoon of February 12, our High Commissioner in Pakistan was informed by the Pakistan Foreign Secretary of Pakistan’s response to the dossier of material that we had made available to Pakistan on January 5 linking the terrorist attacks on Mumbai to perpetrators in Pakistan. This is a positive development. In their official response, the Pakistan authorities have admitted that elements in Pakistan were involved in the terrorist attacks on Mumbai. They are still in the process of investigating the attacks, and have taken certain actions including the arrest of some of those who were involved, and have filed a first information report in Pakistan.

11. Pakistan has also sought further information and material relating to the investigation. The Government of India will now examine the issues raised in Pakistan’s response. After our examination, we will share whatever we can with Pakistan.

12. Hon’ble Members will appreciate that Government has constantly been guided by the two objective of ensuring that the perpetrators who planned, organised and trained the terrorists in Pakistan are brought to justice, and that the infrastructure of terrorism which exists in Pakistan is dismantled so that we prevent a recurrence of such attacks. The international community has also worked with us, using its influence on Pakistan to ensure that the terrorist infrastructure and the support provided to such elements is put to an end, since terrorism emanating out of Pakistan is a threat not only to us, but to the world. We will continue to review the situation including Pakistan’s responses and will take further steps that we deem necessary in order to protect our people.
13. The threat of terrorism from Pakistan has emerged as a global menace and cancer. The major onus of responsibility to eliminate this threat rests on the Government of Pakistan. It is imperative that it act with sincerity and act effectively against the licence that terrorist groups enjoy in its territory. It is essential that the assurances given to us repeatedly at the highest level by Pakistan leaders are implemented as solemn commitments.

14. Since the 1st of December, 2008, the Composite Dialogue process with Pakistan has been at a pause. No meeting has taken place and neither are any scheduled. It is also the case that the substantial gains in the process of normalization which were achieved in the last four or five years are at grave risk. As Members are aware, the dialogue and normalization process was premised on commitments given by Pakistan that territory under its control would not be used for terrorism in any manner.

15. We are at a point in our relationship where the authorities in Pakistan itself have to choose the kind of relationship that they want with India in the future. Much depends on actions in the Mumbai case reaching their logical conclusion. I must underline that we have no quarrel with the people of Pakistan. We wish them well and we do not think that they should be held responsible or face the consequences of this situation. We have, therefore, consciously, and after due deliberation, not thought it necessary or fit to curtail people to people contacts, trains and road links.


Address by External Affairs Minister at inauguration of 81st AGM of FICCI
  12/02/2009  
Address by Shri Pranab Mukherjee, Minister for External Affairs and Finance, at the 81st Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry (12th February 2009, FICCI Auditorium, New Delhi)

Shri Rajeev Chandrasekhar, MP and President, FICCI
Shri Harsh Pati Singhania, President Elect, FICCI
Shri Rajan Bharati Mittal, Vice President, FICCI
Dr. Amit Mitra, Secretary General, FICCI
Excellencies and Delegates
Captains of Indian Business
Ladies and Gentlemen

It is my great pleasure to inaugurate the 81st AGM of the Federation of Indian Chambers of Commerce and Industry (FICCI). I have enjoyed my interactions with FICCI over the years and I see many friends and familiar faces present here. And this is all the more reason for me to be here.

The theme of your 81st Annual General Meeting - ‘Security, Governance and Global Economic Crisis – Challenges for India’ – is most appropriate. There is no doubt that we stand at a watershed particularly after 26/11 and the global economic meltdown. The UPA Government has sought to address both the issues of security and growth. I am also happy to state that our Government appointed the Veerappa Moily Committee to address the governance issue. The challenges before India are certainly those of security, governance and how to convert global adversity into a major opportunity for our nation.

Ladies and Gentlemen,
Security has long been a matter of serious concern for India, though the nature of threat keeps changing from time to time. This has involved our land and sea borders, political and military establishments, industrial and oil installations, financial centres and economic assets, sea routes and shipping lanes, aviation and maritime security, infrastructure hubs and “iconic targets”, security against cyber crimes, etc. In recent decades, India has been a victim of terrorism, including cross-border terrorism. The Mumbai attack of 26/11 was only the most recent and the most gruesome example of this scourge of terrorism that needs to be tackled in a resolute manner. As our Prime Minister has said, “We will spare no effort to deal with terrorist and insurgent groups operating from neighbouring countries. We are determined to put an end to terrorism sponsored from across the border with all the means at our command.” Thus, a comprehensive approach needs to be taken to counter this multi-dimensional challenge.

The Government is fully aware and seized of the fact that security is not only of paramount importance in the life of the nation, but is also deeply intertwined with the running of business in our country and that is why the terrorists from Pakistan chose targets that included centres of business and global corporate visitors in Mumbai.
Our Government has, over the past few years, taken a large number of measures, and significant steps to strengthen the apparatus for dealing with the multiple and emerging challenges to our national and internal security. Following the Mumbai terrorist attacks our government has taken a number of immediate steps to address the security issues forthrightly. These include amendments in the law to deal with terrorism while taking care to ensure against any possible misuse; the enactment of a legislation and setting up of a National Investigation Agency (NIA); a decision to establish regional hubs of the NSG in four major metros of the country in a time-bound manner, just to name a few. After a detailed and careful review, strengthening of the mechanism for gathering analysis and real-time sharing of intelligence and coordination among different agencies of the Centre and the States is being effected.

The Prime Minister has chaired a meeting of the State Chief Ministers on Internal Security, with a view to devising measures to integrate the fight against all forms of terror, including the problem of naxalites and insurgency in the North Eastern region. The issue of Police Reforms is being pursued in right earnest. The objective of all these initiatives is to integrate and strengthen the different elements comprising the overall apparatus to fight terrorism and other threats to our internal security.

We are taking a holistic approach in the matter of security and I am glad that FICCI too is focusing on this subject. Our Government seeks a partnership with organizations like FICCI and with the civil society to contain the problem of militancy and stamp out terror.

Ladies and Gentlemen,
Let me now move on to the issue of corporate governance. In the recent past, we have seen one most unfortunate case of failure which has attracted considerable attention. We need to ensure that this one single aberration does not undermine either the standing and reputation of our IT industry or India’s standing as an emerging trillion dollar economy with the second highest growth rate amongst the major developing countries. The country is an attractive economic partner for the entire world with external trade of approximately US $350 billion and FDI of around US $25 billion per annum. India’s IT industry is built on solid fundamentals of our comparative advantage and competitive edge. The adverse fallout of the misdoings in a single company cannot be allowed to cast its shadow on the entire Indian IT industry worth US $ 60 billion or IT exports of around US $ 40 billion.
We sincerely believe that this was a one-off case. I would like to take this opportunity at the FICCI AGM to urge the captains of business and industry sitting in this auditorium and all other corporates across the country to undertake special precautions and due diligence. The Government is committed to providing adequate space or freedom to the corporates for doing business in a healthy and competitive environment. At the same time, it is important that corporates function strictly within the regulatory framework devised and apply the highest standards of ethics in all their working. This would be fully consistent with the norms of corporate best practices and social responsibility. In short, there should never be a repeat of this most unfortunate failure of corporate governance. I firmly believe that even a single such incident is one too many.

All of you are aware that our Government acted swiftly and is doing everything in the domain of investigations, salvaging the livelihoods of thousands of employees, and restoring confidence among clients. We will spare no effort on getting to the bottom of this terrible scam and will take whatever measures are necessary on the basis of the findings. I urge our apex Chambers, including FICCI, to take a leadership role to underscore the imperative need for sound practices and confidence in the functioning of corporates in India.
In this context, I am glad to note that FICCI organized a Conference on the theme ‘Administrative Reforms and Ethics in Governance’, where my colleague Shri Veerappa Moily presented the findings of the Second Administrative Reforms Commission. In his report – which runs into 11 volumes – he has made some revolutionary suggestions that could bring about a paradigm shift in the way we govern our nation. I am hopeful that this Report will be implemented in letter and spirit. I believe that after implementation of this Report, we would have turned a corner towards a much better structure and governance.

You are also aware that our Government introduced the path-breaking Right to Information (RTI) Act which has empowered common people to seek transparency in governance. FICCI may consider creating a cell that can work as a constructive guide to all businesses and perhaps civil society, to use the RTI Act for enhancing transparency, accountability and finding solutions to problems of governance at the operational level.

Ladies and Gentlemen,

The IMF’s latest projections for growth show that the advanced economies of the world would shrink by 2% in 2009. While the US economy will contract by 1.6%, the Euro zone economy will decline by 2% and Japan by 2.6% in 2009. I am proud to say that in 2008-09, India will still grow by around 7%.
At the same time, India faces a special challenge from the international financial crisis. In a globalised economy, while India cannot be immune to the impact of the crisis, we have to address this on many fronts. There is a need to sustain our foreign trade, revive foreign investments and generate domestic demand in order to maintain our growth rates which are essential for the uplift of the multitudes below the poverty line. This unprecedented crisis also calls for crafting a new international economic order to put the global economy on a sound footing. India remains committed to working with our foreign partners, including in the G-20 framework, for devising the required comprehensive reforms for a new financial architecture.

As we stand out in the world as one of the key growth centres, I remain confident that we will be able to attract more FDI and that FII flows will return to our markets because this is where growth is happening and this is where profits can be made.

I would like to conclude by saying that there are challenges, formidable challenges, that we face today. But as history has shown, when faced with adversity, India and Indians have risen to the occasion and come out winners. We have the will, the capacity, the resilience – in short the required wherewithal – to convert these challenges into opportunities. We are again in one of those difficult situations, but as always our spirits are high and we will continue to march on the road towards progress and prosperity.

I wish FICCI a great year ahead.

Thank you.



Address by Shri Pranab Mukherjee, Hon’ble Minister for External Affairs & Finance at the NREGA Sammelan 2009 on 2nd February at Pusa Institute
Salutations,

It gives me immense pleasure to be here today, to commemorate three years of National Rural Employment Guarantee Act; a path-breaking legislation that is redefining the regime of rights and promoting social equity and justice.

The Act is a realization of our commitment to inclusive growth- it has ensured livelihood security and Rozgaar Guarantee for the “Aam Admi”. As a result of overwhelming response of the workers, over 360 crore persondays of employment has been generated and over 32 lakh works have been taken up in three years. Out of these 20 lakh assets have already been created and are benefitting the rural economy. Out of a total budget outlay of Rs. 53,300 crore in the three years, the expenditure has been Rs. 41,756 crore of which Rs. 28,227 crores (68%) of this has been disbursed as wages. Experience has shown that it is the poorest of the poor and the most vulnerable groups who seek employment under NREGA. The participation of SC and ST is more than 55% and a near equal participation of the women workforce. The Scheme has provided an avenue for social security and addresses the most basic concerns related to the day to day existence.
With its demand based framework, NREGA has guaranteed the poor employment, ensuring two square meals a day and provided them support to move out of the poverty trap. We must thank Smt. Sonia Gandhi, the UPA Chairperson for her untiring leadership in ensuring that this Act was passed by the Parliament. Her deep commitment and empathy for the underprivileged made it possible for the UPA Government to fulfil a sacred promise to the people of India.

The Government has tried to evolve systemic solution to strengthen institutional capabilities for transparency and public accountability in the Scheme. For instance, agencies for wage payment are being separated from implementing agencies and the payments are being made through bank and post office based accounts. So far more than 5.7 crore Bank/ Post Office accounts have been opened under NREGA. This is the largest number of accounts linked to a development programme anywhere in the world. In addition to this, NREGA workers have also been identified as a category to be provided insurance cover under Jan Shri Bima Yojna.

Dear Friends,
The impact of the global economic meltdown is being felt by developing countries, including India. Creation and retention of employment are our foremost priorities. NREGA has given an opportunity to the common man to seek employment at his own will and live a life of self-respect and dignity. The Act has given hope and unlocked the potential of the rural poor to take charge of their own future.

The program has aided in enhancing economic potential through supplementing income, savings and investments and financial inclusion. Needless to say, multiplier effects of NREGA are emerging. Entitlements conferred on the most vulnerable group have enhanced capacity to articulate needs and negotiate rights; NREGA works have increased the inputs for improving productivity of land, created durable assets and improved access to markets and basic services. The untied funds for local area planning encourage convergence for sustainable development.

Through NREGA the government has infused a new strength in institutions of grassroot democracy. Resources for intensive capacity building have been provided to Panchayati Raj functionaries to facilitate village level plan and implementation work. Social Audits have entrusted the Gram Sabha with responsibility and accountability for their own work.
The Scheme has also provided space to the civil society organisations to become active and contribute towards fair and effective implementation of the Act. Today, NGOs with outstanding contribution will be awarded Rozgar Jagrookta Puraskar. District NREGA Teams who have also done exemplary work led by the District Programme Coordinators will be given award for Excellence in NREGA Administration. I congratulate them all and wish greater success in pursuance of rooting out poverty from the country.

Before I conclude, I must congratulate my valued colleagues, particularly Dr. Raghuvansh Prasad Singh ji, Minister for Rural Development, State, District Governments and above all the millions of beneficiaries of the Scheme for helping NREGA achieve its present scale and performance.

Thank you.




ey Note Address by EAM at ‘Delhi Dialogue’
  21/01/2009  
January 21, 2009

Your Excellency, Dr. Surin Pitsuwan, Secretary General, ASEAN,
Your Excellency Mr. OK Darariddh, Under Secretary of State of Tourism of the Kingdom of Cambodia,
Ambassador K. Kesavapany, Director, Institute of South East Asian Studies, Singapore,
Shri Rajeev Chandrasekhar, President, FICCI,
Dr. Amit Mitra, Secretary General FICCI,
Distinguished participants of the Delhi Dialogue,

Ladies & Gentlemen,

Let me, at the outset, thank the Federation of Indian Chambers of Commerce & Industry, for inviting me as the keynote speaker at its inaugural session. This dialogue on cooperation and regional security with our ASEAN friends is being supported by the Institute of South East Asian Studies, Singapore, and the SAEA Group Research, Singapore.

Growing linkages between India and ASEAN countries – civilizational, economic, intellectual and societal - have taken on a momentum which is palpably accelerating. Our bilateral trade, which was US $ 2.5 billion in 1993-94, crossed US$ 38 billion in 2007-08 and is expected to reach US$ 50 billion by 2010 – a target set at the India-ASEAN Summit in Singapore. It is remarkable that this impressive growth has taken place even before the India-ASEAN FTA in goods, has come into effect. Our ongoing cooperation embraces a vast spectrum of governmental as well as non-governmental activities with a special focus on programmes to cover the widest segment of our societies in terms of capacity building and human resource development. We are participating actively in the Initiatives for ASEAN Integration, launched by ASEAN to bridge the intra-ASEAN development gaps. We are focusing on collaborating in vital areas such as health care, disaster management, R&D and technology development, among others. We are also working together for increasing our tourist exchanges.
Excellencies, Ladies & Gentlemen,

ASEAN has now adopted a Charter. With this, the ASEAN organisation is developing the mechanism to achieve much greater economic and political cohesion amongst the member states. ASEAN’s rising stature will have a beneficial effect on global affairs both geo-strategically as well as economically because of its stabilising influence in these fluid times. It is the growing and strong linkages between us which underlie the decision by the Government of India to appoint an Ambassador to the ASEAN. It is my pleasure to inform that Mr. N. Ravi, Secretary(East), Ministry of External Affairs, has now been appointed as our next Ambassador to ASEAN.

This seminar has taken on a new meaning altogether in our complex times when the world is beset with an unprecedented economic crisis – the worst in nearly 75 years - affecting all of us in varying degrees of intensity. As Roger C. Altman, a former US Treasury official put it, in a recent ‘Foreign Affairs’ article, the Anglo-Saxon brand of market-based capitalism is, now, under a cloud. The apparent marginal role of the global financial institutions established after the Bretton-Woods Conference demonstrates both the unprecedented scale of the crisis and perhaps calls into question the anachronistic nature of these institutions to handle them in the future, in their present form.
A steady friendship that we have developed since our first engagement with ASEAN as a sectoral partner eighteen years ago will play a critical role in coping with these still developing challenges. The situation provides both a challenge as well as an opportunity, reflected in the evolution of an Asian response to this crisis, by developing its own model of inclusive economic growth.

As our relationship grows, so would our inter-dependence. This would be beneficial to both sides because our economies have, fortunately, not been so badly affected as the western ones; ASEAN nations met the challenges of the 1997-98 crisis well and has ensured that there are adequate currency reserves to cope with such crises in the future.

Excellencies,

Asia holds the bulk of the world’s savings and Asians show one of world’s best savings rates. Even the 1997-98 crisis was caused by the fickleness of certain international investors which then wrought havoc in the region. I should add that many of the security problems in the South-east Asian region can be traced back to the mishandling of the economic crisis of the 1997-98 by leading financial institutions. We therefore need to handle the current economic crisis in a far-sighted manner.
I believe that our inter-linkages provide the basis for exploring the possibility of regional financial arrangements which will mitigate the growing risks from the current negative economic outlook.

The recent steps such as the India-Malaysia Capital Market Forum, jointly organised by the Securities and Exchange Board of India (SEBI) and the Securities Commission of Malaysia, which met in November, 2008, in Mumbai are a good development. The strengthening of the Chiang Mai Initiative and the Asian Bond Market is another, given the currency reserves held by the countries of the region. I believe that India will both benefit from and contribute to financial cooperation in Asia: it will meet our enormous demand for investment in infrastructure development and will contribute towards relative stability of exchange rate and, also facilitate regional trade.

Excellencies, Ladies & Gentlemen,

The trend towards inter-connectedness needs to grow much more. Energy demands are going to grow in the emerging markets and indeed in much of Asia. This requirement is complicated by price volatility, potential supply instability and rising energy costs. The ASEAN region has oil, gas, coal, hydro, bio-mass and geo-thermal resources. A carefully calibrated strategy can help our region to grow on an ecologically sustainable basis and through diversified economic and trade linkages which is the best way to cushion ourselves from the energy security point of view. I am pleased to note that within the East Asia Summit mechanism, this issue is being addressed comprehensively. Simultaneous attainment of energy security, market rationalisation and environmental preservation in Asia requires the best “energy mix” for each country. India’s own energy linkages with the ASEAN member states have enormous potential for our relationship to get even deeper.
Another aspect of this growing inter-connectedness is physical infrastructure and the logistics of the movement of goods and services. I am aware that, within the ASEAN region, considerable work has been done which is spurring the regi