Friday, April 29, 2011

KICKING AMERICA’S BU** , THE INDIAN WAY

This would be a proud moment for all the Indians for India has finally woken up from the slumber and has decided to assert its sovereignty and economic prowess in the global arena.  But then, we have not forgotten our Indian values to be courteous and kind to anybody who shows at our doorsteps for alms.

The news that India has rejected the bid for Multi-Medium Role Combat Aircraft (MMRCA) of US firms, Lockheed Martin and Boeing somehow sounded like music to my ears.  Why?

Because as history would tell, combined with our experiences that US as a strategic ally cannot be trusted completely. One could argue that they bent backwards to get us N-deal, but then that my friend was completely a business proposition. Everybody knew what economic crisis US was going through at that time. The Nuclear deal would have opened a big market for the US nuclear firms who were suffering in the economic crisis.

The Americans are mighty disappointed by this rejection, and they can argue that all their relationship building exercise with India was a waste but then what did they achieve in Iraq, Afghanistan and now in Pakistan, which literally lives out of American aids and in turn gives them nothing.

Everybody knows that America is going through a rough phase economically and this USD 12 billion deal with MMRCA would have greatly helped their country in creating new jobs. Read this:

The United States hopes it can sell Boeing Co's C17 transport aircraft to India for an estimated $4 billion, its ambassador to New Delhi said on Friday, a day after India rejected U.S. bids for a huge fighter jet deal.

"Once this over four billion dollar sale is finalized, the economic impact will be felt by 30,000 American workers and 650 American suppliers located in 44 states," Timothy Roemer said in a speech to an industry body, according to a statement issued by the embassy.”.

If a USD 4 billion deal can make such an impact then as a thumb rule a USD 12 billion deal would have thrice as much the impact.  The milk, of which the US Government wished to skim the cream, is now spoilt for them. No wonder they are disappointed.

As far as I have read, the selection of Euro fighter Typhoon and Dassault Rafale fighters has been truly on the merit basis, based on technical evaluations without giving consideration to price of the fighters and the geopolitical and strategic considerations. For record, Economic Times reported that Dassault Rafale would cost above USD 85 million and Euro fighter would cost above USD 125 million each. Also this would be worth mentioning that if India chooses to buy Dassault Rafale fighters then India would end up bailing out the Company which has not sold even a single fighter jet in a long time.

All is not lost yet for the Americans, there are another USD 50 billion worth defense deals in the pipeline in next few years where US can participate. But India, by means of this rejection of the US firm, has sent a clear message that sub-standard frontline defense equipments with stripped off technology are not at all welcome. Though India is willing to take support military equipment like transport aircrafts and helicopters from US, as far as I have read even these are stripped off technologies for the price that is paid for them.

But even, some of these deals also does not materialize, I don’t think US can afford not to have India by its side considering the economic and geopolitical clout that India exercise in South- East Asia and also a key hedge against China.

But then we have clearly told the Americans, that you will not be allowed any further to take our money and then, use that to arm Pakistan with F-16s. And I feel, we have hit them where it hurts them the most without being rude.

That’s new India for you, asserting our new found power with a traditional touch.

 

Some links for your reading:

  1. http://economictimes.indiatimes.com/news/politics/nation/us-hopes-india-will-buy-boeing-c17-planes-for-4-bn-timothy-roemer/articleshow/8116972.cms
  2. http://economictimes.indiatimes.com/news/politics/nation/exclusion-of-us-firms-from-iaf-jet-deal-a-setback-for-ties/articleshow/8115251.cms
  3. http://economictimes.indiatimes.com/news/international-business/boeing-says-disappointed-with-rejection-on-india-fighter-deal/articleshow/8108581.cms
  4. http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/rafale-eurofighter-to-fight-it-out-over-iaf-mmrca-order/articleshow/8113247.cms
  5. http://economictimes.indiatimes.com/news/politics/nation/us-pressure-fails-to-pull-its-fighter-through-iaf-test/articleshow/8114306.cms
  6. http://economictimes.indiatimes.com/democracy-corruption/us-eyes-india-arms-deals-beyond-fighter-setback/articleshow/8115936.cms