PM Narendra Modi seeks key role for India in Commonwealth amid China concerns

Prime Minister Narendra Modi on Thursday launched his Commonwealth outreach through a series of meetings with leaders of Indian Ocean Region African Caribbean and Pacific Islands. He plans to put India in the leadership position in the grouping where China is absent. The meetings were significant in keeping with India s continuous outreach as key player in the Indian Ocean Region and Africa amid China s inroads. Maritime cooperation was the key theme of Modi s discussion with the leaders of Mauritius and Seychelles. India s focus at the meet is on common fairer secure sustainable and prosperous future. Earlier Queen Elizabeth II the head of Commonwealth opened the summit for what may be the last time. In her opening speech for the Commonwealth Heads of Government Meeting (CHOGM) at Buckingham Palace in London the 91-year-old monarch described the group as growing stronger year by year and the world s great convening powers which would benefit from stability to be offered by the royal family. It is my sincere wish that the Commonwealth will continue to offer stability and continuity for future generations and will decide that one day the Prince of Wales will carry on the important work started by my father in 1949 the Queen said. Some of the other Commonwealth leaders who had one-on-one deliberations with Modi during the CHOGM included Bangladesh Prime Minister Sheikh Hasina Australian Prime Minister Malcolm Turnbull South African President Cyril Ramaphosa and Cyprus President Nicos Anastasiades. An Indian PM has attended the Commonwealth summit which is held every two years after a hiatus of nearly a decade. The last CHOGM was attended by India in 2009 in Trinidad and Tobago. PM Modi also announced a slew of funds for development and capacity building projects for countries in the grouping. This includes raising to 2 billion from 1 billion in the area of Commonwealth Fund for Technical Cooperation; opening Commonwealth sub fund in India-UN fund as grants of 50 million for 5years; enhanced contribution for Commonwealth small state offices in New York and Geneva; and training for cricket for 30 girls and 30 boys by BCCI. ET View: Seize The Opportunity India must not squander the opportunity presented by the renewed interest in the Commonwealth. As a nation that is able to bridge the gap between developing and developed members of the forum India should provide the leadership that will make the Commonwealth an effective multilateral forum. For New Delhi the forum provides an excellent opportunity to give shape to a model of international co-operation and partnership distinct from that of China. This will ALL FOCUSEDPM Narendra Modi at the first executive session of Commonwealth help strengthen the economies of member states. Britain and India have laid the ground for a possible post-Brexit bilateral free trade deal and signed off on a series of commercial agreements worth up to 1bn according to Downing Street. Brexit opponents claim the chances of Britain securing a trade deal with India superior to a Indian-EU deal are a fantasy unless the UK makes major concessions on Indian skilled labour accessing UK markets. Karan Bilimoria the British Indian entrepreneur and life peer insisted Modi s priority was a free trade deal with the EU. Britain is nevertheless lavishing diplomatic attention over Narendra Modi the Indian prime minister thanking him for breaking a decade of Indian indifference to the Commonwealth by personally attending the Commonwealth summit and so giving the post-colonial assembly greater relevance. Modi did not attend the Commonwealth summit in Malta two years ago and his predecessor Manmohan Singh missed the 2011 summit in Australia and its successor in Sri Lanka in 2013. But Modi who was personally courted by both Prince Charles and Theresa May to attend the talks regards the Commonwealth as a useful multilateral forum from which China India s great rival is absent. He is also looking for allies in any trade war with the US. In common with most Commonwealth leaders Modi also sees the visit as a chance to woo the City of London and court foreign direct investment. The Indian prime minister has been rewarded for his commitment to the Commonwealth with Wednesday s lengthy bilateral meeting with May an audience with the Queen a visit with Prince Charles to the Science Museum and a commitment that British intelligence will help fight Pakistan-based militant groups. In a further sign of British respect Modi s plane from Sweden was greeted at Heathrow by the foreign secretary Boris Johnson. Modi s aides also claimed he was travelling in a limousine when many other heads of state were due to travel to a Windsor retreat in a bus. Facebook Twitter Pinterest Narendra Modi is greeted by the Queen during a private audience at Buckingham Palace this week. Photograph: WPA/Getty Images At a packed town-hall-style meeting in Central Hall Westminster Modi spoke of his rise from tea seller to visitor to a royal palace and said the days of incremental change in India were over. Throughout the day he was also pursued by hundreds of demonstrators protesting gainst his attitude to Kashmir Hindu nationalism and the failure to act against horrific instances of sexual violence against women including the rape of an eight-year-old Muslim girl. British ministers say a free trade deal with India is a priority after Brexit but the joint Indian-UK statement issued after the bilateral meeting acknowledges that the UK cannot sign any new deal until the Brexit transition period ends. The EU is also locked in talks with India over a free trade deal a subject Modi will raise with the German chancellor Angela Merkel in a stopover before he returns to India from London. After Brexit the UK will initially simply seek to replicate the EU-Indian free trade deal but any bespoke agreement will be hard to negotiate since India will be looking for concessions on visa travel from India to the UK. The lengthy bilateral deal signed by the two countries covers cyberspace technology sharing solar energy sustainable urban development water management animal husbandry safe use of nuclear energy artificial intelligence and big-data analytics. The joint agreement said a secure free open inclusive and prosperous Indo-Pacific was in the interests of India the UK and the international community adding: The UK and India will also work together to tackle threats such as piracy protect freedom of navigation and open access and improve maritime domain awareness in the region. India regards the statement as significant given Beijing s tough approach to disputes to the South China Sea and attempts to increase its footprint in the Indo-Pacific region. Topics Commonwealth summit India Narendra Modi South and Central Asia Theresa May Brexit news Share on Facebook Share on Twitter Share via Email Share on LinkedIn Share on Pinterest Share on Google Share on WhatsApp Share on Messenger Reuse this content On Wednesday Prime Minister Narendra Modi who is in the UK for a four-day visit met British prime minister Theresa May. The two leaders discussed a whole host of issues over breakfast: Immigration investment terrorism cooperation in the field of technology and finance. Prime Minister Narendra Modi with his British counterpart Theresa May. Twitter @MEAIndia According to the joint statement issued in the aftermath of that discussion the two leaders held wide-ranging and constructive discussions and underlined our strategic partnership and growing convergence on regional and international issues . The term Strategic Partnership seems to be writ large over the last decade of the India-UK relationship as the countries seemingly draw closer. But what does the term even mean? According to the joint statement the Strategic Partnership is defined as based on values common law and institutions as the world s oldest and largest democracies . Bilateral relationship gets an upgrade But it took a while for the India-UK Strategic Partnership to get going. In fact the bilateral relationship was upgraded to a Strategic Partnership only in 2004 according to a document put out by the High Commission of India in January ahead of Modi s visit. That Strategic Partnership was further strengthened during the tenure of British prime minister David Cameron to India who visited India thrice in his first term (July 2010 February 2013 and November 2013) the high commission document stated. The successful visit of Prime Minister Modi to the UK in November 2015 gave further impetus to the bilateral relationship. UK Prime Minister Theresa May s visit to India in November 2016 which was her first overseas bilateral visit after assuming office in July 2016 reflects the continuity of interactions at the highest political level the document added. Indeed an examination of the 2008 joint statement issued after the India-UK annual Summit held in Delhi led by then prime ministers Gordon Brown and Manmohan Singh only serves to underline the point: The term Strategic Partnership found only a passing cursory mention in the opening paragraph of the statement: India and the UK share a Strategic Partnership. The two sides underscored their commitment to the Strategic Partnership launched in 2004 and reaffirmed their shared conviction in the values of democracy fundamental freedoms pluralism rule of law respect for human rights and multilateralism in the international political and financial architecture as the means to tackle global challenges effectively. The close bilateral relationship has already led to growing cooperation in global affairs and substantial expansion in the bilateral engagement in multiple fields. Building on the achievements of the New Delhi Declaration (2002) and India-UK Joint Declaration (2004) the two sides commit themselves to strengthening and deepening the comprehensive Strategic Partnership that exists between the two countries which is underpinned by growing economic ties and the presence of a large Indian diaspora in the UK . From non-existent to nucleus Worse the term Strategic Partnership failed to even find a mention in the 2013 joint statement which was issued after talks between Manmohan Singh and David Cameron in New Delhi. Instead the document stated: The two prime ministers and their colleagues reviewed the progress made since the previous summit in 2010 on building a stronger wider and deeper relationship across the range of India-UK interests based on shared culture values and strategic interests . However things seemed to turn after Prime Minister Narendra Modi took office. After Modi met his counterpart David Cameron in London 0n 12-13 November 2015 the countries released a joint statement which said: The two prime ministers agreed that the City of London should play an important role in channelling investment into infrastructure projects in India including in the railways sector laying the foundation for a long-term strategic partnership that leverages the capital and expertise of the City of London to finance India s continued rapid growth. The statement further added The two prime ministers welcomed a long-term strategic partnership between India and the UK on the former s flagship infrastructure investment initiative the National Infrastructure Investment Fund (NIIF) and announced the setting up of a India-UK partnership fund under the umbrella of the NIIF. The collaboration will help bring global investors through the City of London to help finance Indian infrastructure in a sustainable way further supporting India s rapid growth . The document emphasised cooperation in the field of investment and infrastructure. For those hoping for closer ties between India and UK there was certainly nothing to get excited about. In 2016 the term seemed to make a comeback when Prime Minister Theresa May visited India at the invitation of Modi. In fact the title of the joint statement: India-UK Strategic Partnership looking forward to a renewed engagement: Vision for the decade ahead seemed to draw attention to the fact that ties were on an upswing. The joint statement noted that this was May s first bilateral visit outside Europe after taking over as the UK prime minister and was designed to further strengthen the India UK Strategic Partnership which was guided by a shared vision for the future and supported by a concrete and comprehensive road map of bilateral and global engagement . The document added: During Prime Minister Modi s visit to the UK last year the two countries set out a bold vision for the UK-India Strategic Partnership. Both countries today commit to turn this vision into reality through closer practical cooperation that delivers real benefits to both the countries . The document further added: Building on the Defence and International Security Partnership (DISP) agreed in November 2015 the UK and India are committed to further strengthening their strategic partnership in defence . According to the 2018 joint statement the India and the UK seemed determined to put the relationship into high-gear: We are committed to making this a Strategic Partnership that spans the globe and the century seeing our special relationship evolve and improve in the coming years. We encourage our business cultural and intellectual leaders to exploit the millions of interactions that already link India and the UK from family to finance business to Bollywood sport to science so that millions more British and Indians exchange and learn travel trade and thrive together . LONDON: Some groups protesting against atrocities in India during Prime Minister Narendra Modi s visit here turned violent after a tricolour was torn down from one of the official flagpoles set up for all 53 Commonwealth countries. Modi who is in the UK for bilateral talks and the multilateral Commonwealth Heads of Government Meeting (CHOGM) was greeted by protesters as he met his British counterpart Theresa May on Wednesday. Some of the protesters at Parliament Square turned aggressive after the Indian tricolour was torn down from the flagpole. Police are investigating after an Indian flag in Parliament Square was pulled down at 1500 (UK time) on Wednesday 18 April. The flag has been replaced. There have been no arrests. Enquiries continue a Metropolitan Police statement said. The Ministry of External Affairs (MEA) said the matter was taken up with the British authorities who expressed their regrets and immediately had the torn flag replced with a new one. We re deeply anguished with the incident involving our national flag. Matter was taken up strongly with the UK side. They have regretted the incident. The flag was immediately replaced. We expect legal action against the people who were involved in this MEA spokesperson Raveesh Kuamr said at a press briefing on Thursday. We re deeply anguished with the incident involving our national flag. Matter was taken up strongly with the UK side https://t.co/jBQSIOd6gE ANI (@ANI) 1524160570000 A UK Foreign and Commonwealth Office (FCO) spokesperson said While people have the right to hold peaceful protests we are disappointed with the action taken by a small minority in Parliament Square and contacted High Commissioner Yashvardhan Kumar Sinha as soon as we were made aware. The visit to the UK by Prime Minister Modi has strengthened our relationship with India and we look forward to working even more closely together on a number of important areas. A senior broadcast journalist from one of the leading Indian media channels covering the protests was caught in a violent scrum with some of the more aggressive pro-Khalistani protesters and Scotland Yard officers on duty had to step in to the rescue. The group is planning to file a complaint with the Metropolitan Police on the incident. We have expressed our concerns with the British authorities and they have apologised for the incident. We have been warning against some of these elements out to make trouble and they have assured us of action. The Indian flag has now been replaced a senior Indian official associated with the PM s visit said. The pro-Khalistani demonstrators from Sikh Federation UK and demonstrators from the so-called Minorities Against Modi group led by Pakistani-origin peer Lord Ahmed were among nearly 500 protesters who descended upon Parliament Square. These included groups led by some Kashmiri separatist groups and at one point some of them had surrounded the Mahatma Gandhi statue at the square with their banners and flags. Officials involved with the prime ministerial visit to the UK had said that protests and demonstrations are part and parcel of any democratic society as long as they remain peaceful. There are now concerns that some of the more aggressive elements hijacked the tone of the protests. Earlier on Wednesday flash mob of sari-clad women with dhols set the tone for the pro-Modi crowds opposite 10 Downing Street as the Indian PM arrived for his breakfast meeting with British Prime Minister Theresa May. They were joined by the Friends of India Society International (FISI) group which spearheaded a crowd of Indian diaspora from across the UK waving banners such as Chak De India and Jai Hind outside Downing Street and nearby Parliament Square. We want to welcome the Indian PM to the UK and show him the diaspora support he enjoys said one of the members of the gathering. On the other side the anti-Modi protesters from Caste Watch UK and South Asia Solidarity group waved banners such as Modi you have blood on your hands and Modi Not Welcome . Hindu nationalism must be curtailed to avert India sliding towards wholesale dictatorship threatening democratic fabric rule of law and the unity of India a Caste Watch UK spokesperson said. They were joined by other protestors carrying images the eight-year-old rape victim from Kathua in Jammu and Kashmir and Gauri Lankesh the Indian journalist who was shot at her doorstep last year. The group also included representatives of several Indian women s groups in the UK wearing white as part of their silent protest against atrocities that are taking place in India . I am Hindustan I am ashamed read their placards alongside banners such as Beti Bachao and Politics minus rape . London: Prime Minister Narendra Modi who is in the UK for the Commonwealth Heads of Government Meeting or CHOGM met Britain s prime minister Theresa May on Wednesday. The two leaders held wide-ranging talks on deepening India-UK ties. Delegations headed by Prime Minister Modi and British PM Theresa May held bilateral talks during which the two sides signed multiple agreements. They also announced initiatives including in the areas of technology trade and investment. Here are details of the Memorandums of Understanding (MoUs) or Agreements signed between India and the United Kingdom (UK):1) India and UK have agreed to an overarching cyber-relationship framework that among others enables the development of a common and shared understanding of international cyber activity; discuss and share strategies to promote user confidence in the security of Information and Communication Technologies or ICT products and services; promote cyber security product development; and share information relating research and development etc.2) On rejuvenation of River Ganga an MoU has been signed between National Mission for Clean Ganga (NMCG) and Natural Environmental Research Council (NERC) UK. The agreement will enable the United Kingdom to support Government of India in sustainable management of water resources in the Ganga river basin through collaborative programs of research and innovation and exchange of policy experts with the support of UK Water Partnership.3) The MoU or agreement on Skill Development vocational education and training between the two governments seeks to promote greater collaboration in domains such as strengthening skill delivery in high demand sectors where UK has technical and skilling expertise capacity building of institutions by facilitating the links between UK and Indian corporates and institutions technical assistance for apprenticeships quality assessment and certification.4) In the area of regulation of safe nuclear energy use for peaceful purposes an arrangement has been arrived at between Atomic Energy Regulatory Board of India (AERB) and the Office for Nuclear Regulation of Great Britain (ONR). The arrangement among others will facilitate exchange of safety-related information concerning the regulation of siting construction commissioning operation radioactive waste management decommissioning of civil nuclear installations and preparedness and management of nuclear and radiological emergencies.5) A Statement of Intent between NITI Aayog and UK s Department of Business Energy and Industrial Strategy (BEIS) has been signed which will enable the two sides to explore potential for regular engagement on technology co-operation in areas such as electric vehicles AI (Artificial Intelligence) FinTech and advanced manufacturing as well as utilizing AI big data and analytics capability for evidence based policy making.6) The MoU on cooperation in the field of animal husbandry dairying and fisheries sectors seeks to strengthen collaboration in livestock health and husbandry breeding dairying and fisheries sanitary issues exchange of scientific personnel promotion of agro-forestry for planting fodder tree species bulk transportation of fodder to deficit areas etc.7) Recognising the increased threat posed by international criminality because of its increasingly complex nature and the threat posed by organised crime an MoU on exchange of information for the purposes of combating international criminality and tackling serious organised crime has been signed. The MoU will allow the two parties to establish a mechanism for the exchange of information which will include criminal records immigration records and intelligence.8) An addendum covering research in humanities and social sciences has been added to the 2004 Newton-Bhabha MoU which supports research and innovation capacities of both sides for long-term sustainable growth.9) The UK has announced setting up a fast track mechanism to identify and resolve specific issues faced by Indian companies who are either in the UK or looking to establish operations in the UK.10) The All India Institute of Ayurveda or AIIA an autonomous organization under the Ministry of Ayush in collaboration with the College of Medicine will set up a centre of excellence in Ayurveda and traditional Indian medicine. An MoU between the two institutions has been signed which will enable among others the development of evidence-based guidelines for integrating Ayurvedic principles and practices with modern medicine and develop Ayurvedic medical education guidelines for Ayurveda education in the UK.INDIA-UK TECH INITIATIVES11) UK-India Tech Alliance: NASSCOM and techUK have set up the UK - India Tech Alliance which will facilitate collaboration on building future skills in new technologies by nurturing a solid skills base in the UK and India with the support of both the governments. The alliance will be composed of high-level stakeholders from the technology industry in the United Kingdom and India. The alliance will assist the governments of UK and India to develop policy in relevant areas by providing a forum for regular dialogue and the exchange of ideas discuss concerns pertaining to the growth of the sector including but not limited to skills new technologies and migration.12) Technology Summit II: The UK and India announced the Technology Summit II which will be held in autumn 2018.The Summit will bring together the greatest UK and Indian tech innovators scientists entrepreneurs and policy makers to work together to scope and design solutions to challenges including the governance of future tech.13) Artificial Intelligence (AI) and Digital Healthcare: The UK and India announced that as partners in the next generation of healthcare they will collaborate on digital health pilots in India s Aspirational Health Districts by applying UK evidence-based healthcare AI and technology to strengthen healthcare delivery. These pilots will be carried out in the areas of self-care primary secondary and tertiary care including eye care diabetes and cancer.UK TECH-INITIATIVES IN INDIA:14) UK-India Tech Hub: The UK announced the creation of a UK-India Tech Hub. Based in the British High Commission in New Delhi the tech hub will include a network of people and programs designed to facilitate ideas investment and prosperity for India and the UK. It will focus on the fastest growing sectors including: cyber security AI/data future mobility digital manufacturing healthcare electric vehicles and digital identity.15) UK-India Tech Cluster Partnerships: The Tech Cluster partnerships will link world-leading centres of excellence; enable shared innovation and technology exchange; create landing pads for Indian companies in the UK and UK companies in India to drive investment and trade and create high value jobs and build UK and Indian productivity.16) Advanced Manufacturing Centre: The UK announced the potential establishment of an Advanced Manufacturing Centre. Such a centre would support respective industrial strategies and in turn drive growth and jobs in both countries.17) FinTech Rocketship Awards: The UK announced the launch of the FinTech Rocketship Awards a unique first-of-its-kind FinTech mentoring programme led by India and the UK s top FinTech mentors. In the first year at least 20 FinTech entrepreneurs from each country will be given the opportunity to experience respective ecosystems and pitch for investment.TRADE INVESTMENT AND FINANCE18) Green Growth Equity Fund (GGEF): The UK and India launched the fund that will leverage City finance to invest in India s growth announcing Eversource Capital a joint venture between Lightsource BP and Everstone Group as the Green Growth Equity Fund Manager. An initial investment of 240 million pounds from both governments will catalyse additional City finance for green projects in India and UK companies will be able to bid for infrastructure projects financed by the Fund. The Fund will invest in renewable energy clean transportation water and waste management in India as part of India s flagship National Investment and Infrastructure Fund (NIIF). UK and India contributions are investments that will generate returns for each country.19) UK-India Dialogue on Investment: The UK and India announced a Dialogue on Investment to improve mutual understanding of priorities and review future opportunities for cooperation.20) Sector targeting roadmap: The UK and India have agreed to work together on a sector-based roadmap to address trade barriers in life sciences food and drink and IT sectors.21) UK-India multilateral trade dialogue: The UK and India will take forward a dialogue under the Joint Working Group on Trade which will support a shared commitment to the global rules-based system and to the WTO s role in underpinning it.22) Fast Track Mechanism: The UK and India announced a mechanism to support Indian investments into the UK.23) Commitment to transition EU-India Third Country Agreements: The UK and India announced that this commitment will ensure continued application to the UK of EU-India agreements during the implementation period following the UK s departure from the EU and put in place arrangements to replicate relevant EU-India agreements beyond this period.24) UK-India FinTech Dialogue: The two sides decided on the establishment of a FinTech dialogue to discuss further opportunities for financial services collaboration including policy coordination.GLOBAL FORCE FOR GOOD Comments25) International Solar Alliance: The UK signed the framework agreement of the International Solar Alliance and became the 62nd signatory member country. The UK also expressed its commitment to the continued advocacy of ISA s aims and objectives.26) Research and Development: The UK and India will continue their world-leading research relationship generating new knowledge and innovations that feed the world s hungry (high yield crops) protect our environment (clean energy) save lives (advanced healthcare) and drive economic inclusion (digital services). NEW DELHI: HighlightsUS has come up with a new policy on export of unmanned aerial systems Policy allows use of drones to fulfill counter-terrorism objectives However there has to be a lawful basis for resorting to use of force India may finally be able to acquire armed drones from the United States that could transform the capabilities of the armed forces not just in strike operations against China and Pakistan over land and sea but also in operations against terrorists.This comes after the Trump administration came up with a new policy on export of unmanned aerial systems that allows the use of drones to fulfill counter-terrorism objectives . The policy comes just a day after US President Donald Trump promised to short-circuit the long-winded process to sell the drones to its allies.For India it opens up the possibility of the use of drones in operations against terrorist launch-pads along the Line of Control if the centre were to go ahead with the purchase..The policy does however require safeguards to ensure that partner nations who acquire US drones do not conduct unlawful surveillance or use unlawful force against their domestic populations . It also says these can be used in operations only when there is a lawful basis for resorting to the use of force under international law such as national self defence .Sales of these drones can now be made through Direct Commercial Sales from companies such as the US firm General Atomics which has already been in talks with the Indian Navy for sale of 22 Predator B Sea Guardian drones for maritime reconnaissance operations over the Indian Ocean.While India was so far looking at unarmed versions of the Sea Guardian in a deal estimated to be worth approximately 2 billion the new policy makes it possible for New Delhi to acquire variants for the Air Force and Army with weaponry including the AGM-114 Hellfire missile which has been used by US forces for precision strikes and targeted killings of high-profile terrorist targets in Afghanistan and Pakistan. A US MQ-9 Reaper drone sits armed with Hellfire missiles and a 500-pound bomb.So far Indian armed forces operate a host of Israeli made drones including a limited number of IAI Harpy systems an anti-radiation drone that homes onto radio emissions which it then attacks in a suicide mission where the drone itself is destroyed after it crashes onto its target. The drones India is looking to acquire from the United States are larger more heavily armed and significantly more capable. The new US policy clearly states that the US will allow the transfer of drones for use in situations where it will enhance those partners security and their ability to advance shared security or counterterrorism objectives .While the new US policy will be welcomed in New Delhi which has been looking to step up the offensive capability of its drone fleet there may still be concerns on US End-Use Monitoring and Additional Security Conditions .The new policy requires the use of top of the line US-made drones shall require periodic consultations with the United States Government on their use .Typically this means India would have to allow the visit of US military advisors to military bases to verify how US-built drones are being used.India has already let Washington know that it considers all End-Use Monitoring to be intrusive though New Delhi realises that US law mandates monitoring under certain circumstances. For the United States the Administration s new drone export policy will allow US firms to compete more effectively with foreign competition from strategic rivals such as China. CommentsAccording to Dr. Peter Navarro Assistant to US President Donald Trump for Trade and Manufacturing Policy the market for drones could be worth more than 50 billion a year within the next decade. Already we are seeing Chinese replicas of American unmanned drone technology deployed on the runways in the Middle East. In June at the Paris Air Show China s Chengdu Aircraft Group featured its Wing Loong II a clear knockoff of the General Atomics Reaper Dr Navarro said. NEW DELHI: China has reached out to India with an offer to resume military exchanges that it had put on an unexplained hold just before last year s Dokalam standoff signaling an important shift ahead of defence minister Nirmala Sitharaman s visit to Beijing next week. ET has reliably gathered that China has sent in an official proposal with a calendar of activities which the two militaries can carry out as confidence-building measures through the remaining part of this year. The proposal has been made just before snow begins to melt in Dokalam. Sitharaman who will be in Beijing for a SCO (Shanghai Cooperation Organisation) meeting on April 24 is expected to take this conversation further with China s new defence minister Wei Fenghe. External affairs minister Sushma Swaraj will also be in Beijing for a SCO foreign ministers meet around the same time. The annual military exchange currently stands suspended. Usually a calendar is drawn up through a defence secretary-level conversation at the beginning of each year. In 2016-end India shared its proposal for military exchanges for 2017 but the Chinese side did not respond. Script Different This Time As a result the defence secretary-level talks could not be scheduled and by June 2017 Chinese forces were in Dokalam. The entire year went without any exchange or confidence-building effort despite both sides withdrawing after a 70-day stand-off. This time China has made the first move sending in its proposal for a calendar of activities first. If the two ministers agree to take this forward then a defence secretary-level conversation may be needed to firm up the plan and have an engagement matrix in place within the next few months. India on its part is closely assessing the Chinese move which is in contrast to reports of Chinese troop buildup on the disputed segment of the Dokalam plateau with Bhutan. The script sources pointed out appears quite different from last year and may have to do with the assurance to Xi s continuation. With a new team in place and larger global profile in mind Beijing may not want to get bogged down by border controversies. One of the key reasons that the Dokalam standoff could be resolved was because China did not want this to vitiate the BRICS Summit in Xiamen that year. India had indicated that it may have to consider pulling out if the stalemate continued. Also the fact that China has a new defence minister who is said to enjoy Xi s trust will be a plus. Wei was the head of the PLA s Rocket Force before being elevated as defence minister in last month s shake-up. The annual military exchanges between India and China have been a routine affair involving a joint exercise called Hand-in-Hand reciprocal visits by army commanders responsible for the areas bordering the two countries and other such exchanges. NEW DELHI: India and Finland have reached an accord on the tax dispute with Nokia under the Mutual Agreement Procedure (MAP) clearing the way for the sale of the company s Chennai plant which has been idle for more than three years officials said. This involves a payment of Rs 1 600 crore a sum that was deposited with the government by Nokia in March. The resolution covers disputes pertaining to Nokia India as well as Nokia Corp. said the officials. Soon after taking over in 2014 the Narendra Modi government had pledged to put in place a taxpayerfriendly regime and take steps to reduce litigation. Nokia India had been issued a demand notice for Rs 2 500 crore in 2013 which underwent rectification to remove errors to Rs 1 600 crore. A Rs 10 000 crore tax raised on Nokia Corp. for the same transaction on the grounds that it had a permanent establishment in the country a move regarded as overzealousness on the part of the department by some was not found sustainable and has been dropped. Under MAP settling a case with the other government essentially means closing all pending proceedings related to a tax matter. It is increasingly seen as the preferred mode for settling cross-border disputes.The resolution brings to an end one of the biggest tax disputes involving multinational companies. This along with the Vodafone and Shell tax cases had been identified with the aggressive stance of the tax department. Resolution has been reached Nokia has agreed to make provisional tax payment a senior income tax department official told ET. We are hopeful on resolving the issue relatively soon in cooperation with the authorities in India a Nokia spokesperson told ET on Thursday. THE CASE Indian tax authorities issued the tax notice of Rs 2 500 crore to Nokia for violating withholding tax norms since 2006 while making royalty payments to its parent company in Finland. HC Stay Obtained on Demand This was done under the provisions in the India-Finland tax treaty that provided for withholding tax at the rate of 10% on payments made from India as royalty. Nokia had disputed the claim saying that software taken from the parent was embedded in the phone and an inherent part of its hardware. The company filed a plea in the Delhi High Court and obtained a stay on the demand that also included interest and penalty. Subsequently Finland initiated MAP proceedings in 2013. The company had also sought to initiate arbitration under the Bilateral Investment Promotion and Protection Agreement (BIPA) in 2014 but did not pursue it after the Indian government s response through the MAP avenue. Discussions on the MAP started 2014 onwards and deal was sealed over the past two-three months leading to tax payment of Rs 1 600 crore in March. Also Rs 10 000 crore demand was a consequential demand so once the main tax demand was agreed upon by the company the demand on parent was not tenable. The developments follow Nokia chief executive Rajeev Suri s comments on the company being close to finding a resolution to the mobile phone manufacturing plant located in Sriperumbudur Chennai which was kept out of the sale of the mobile business to Microsoft in 2014 due to the tax dispute. We will be able to find a solution to the tax situation between the two governments Finland and India and then that will open the way of seeing if we can we can do something on the factory as well Suri told ET last week. We hope to make some announcements during the first-quarter results. The company is due to announce its results on April 26. Suri had added that the company had been looking at selling some part of the plant s equipment. ET had reported last month that Rising Star Mobile India through which Taiwanese contract manufacturer Foxconn runs its India operations bought some machinery from the Nokia plant for an undisclosed amount a few months ago after the Finnish company got permission from the central income tax authorities as well as the Madras and Delhi high courts. The permission was required as the company s assets including the plant had been frozen due to the unresolved tax case. Nokia has been trying to revive the plant for years and had even closed in on the Essar Group as a potential buyer two years ago. But the ongoing tax case thwarted the sale. The factory was then valued at Rs 360-415 crore. Several investors including Foxconn are understood to be interested in taking over the plant once legal issues are resolved. A Tamil Nadu government official had earlier told ET that Foxconn was keen to revive the plant and was preparing a formal proposal.