EDITORIAL

Pakistan, shuffling
like Taliban

In the bin Laden tape seized in a Kabul raid, the dreaded terrorist boasts that he knew exactly what would happen after the planes struck the WTC towers and that he expected that the gas would melt away the iron structures and bring down the upper floors. That was the mid of last month when the sympathizers of the fundamentalist-terrorist were asking the Americans to provide proof of his complicity in the attack. Our own Shahi Imam had ranted from the steps of Jamia Masjid, a fortnight or so before,.....more

Holy days and unholy acts

All the nuances in the bin Laden tape, referred to above, are indicative of how the terrorists' minds work and what they think of as permitted and meet to do. Before Kabul finally fell even without a token was, a difference had emerged in the Musharraf-Bush equation over the issue of continuing the retaliatory attacks during the month of Ramadan. The holy month, argued Musharraf to earn the Taliban a reprieve, is a period of austerities when all pious .......more

Linguistic crisis in
state schools

By M N Kak
Language crisis continues to overwhelm our students with respect to English. Our learners almost at every level feel strangulated while expressing ......
more

P(H)OTO finish politics

By Atul Cowshish
Post September 11, the Bharatiya Janata Party has found a new mantra to shore up its fast falling support. A legislation to fight......
more

Roads on the right track?

By Binay Srivastava
The economic losses due to poor condition of ‘Roads’ is estimated to be around Rs.25-30000 crore annually. Holding 'Roads’ as a prime contributor ....
more

Unfreezing
Indo-Japanese ties

By I. S. Chaddha IFS (Retd.)
Prime Minister Atal Bihari Vajpayee's five-day visit to Japan was capped by the joint declaration with his Japanese counterpart, Mr. Junichiro Koijumi, at .........
.more

EDITORIAL

Pakistan, shuffling like Taliban

In the bin Laden tape seized in a Kabul raid, the dreaded terrorist boasts that he knew exactly what would happen after the planes struck the WTC towers and that he expected that the gas would melt away the iron structures and bring down the upper floors. That was the mid of last month when the sympathizers of the fundamentalist-terrorist were asking the Americans to provide proof of his complicity in the attack. Our own Shahi Imam had ranted from the steps of Jamia Masjid, a fortnight or so before, asking for 'proof' of Osama's guilt. Of course, Taliban too had condemned the attack on the towers and called it an inhuman act. When the pressure had begun to build they had agreed to have Laden tried as per the Islamic law and then in a third country. Pakistan has been going through a similar drill after the attack on the Parliament house. Even as the local controllers were reporting the death toll, the identity and names of the terrorists killed in the attack of the Pak masters, Pakistan condemned the attack as inhuman and violative of human values.

Pakistan, true to the form, was among the first countries to 'condemn' the attack. Completing the first session in the Taliban book, they then asked for evidence of the complicity of the Pak-based terrorist organizations in the attack. Next, like the Taliban sympathizers did in the aftermath of the WTC attack linking the whole thing to a wide dislike of American activities and policies, they roped in Kashmir and the bought up Kashmiris involved in the attack. Then came a curious theory, aired by no less an official than the press spokesman of the general-president himself, that the attack may have been 'plotted' by the Indians themselves. Now comes the strange offer of a 'joint probe' to establish the complicity of the terrorist outfits that have been found to be involved in the attack. All the while, they keep sitting on the high proof of the complicity of the terrorists in the act. In fact, the activities building up to the attack are said to have been closely monitored by the Pakistani intelligence network as are all the terrorist attacks on the Indian soil masterminded, mounted and monitored by the ISI and other military agencies.

Those agencies have been firing long the line of control ever since the attack to keep up the morale of the terrorists and also to be in readiness for any response the India may deem proper. Like the Taliban did in the month prior to the beginning of the American retaliatory attack, Pakistan has continued to reiterate that it is ready to face India. Why should Pakistan be readying to face India when all that India is asking for is to nab the terrorists involved in the attack and operating from their soil, and hand them over for a trail under the law? Those outfits have been declared unlawful by the wide world including Pakistan. Like Taliban Pakistan must be in possession of enough proof of their being guilty of the terrorist activities here. It must have first hand proof of the involvement their involvement in the attack on the Parliament, as Taliban had of Osama's guilt. Not counting that, India has supplied evidence too. And instead the Pakistani authorities are preparing for war. Why? If there were no proof of the Pak complicity in the terrorist attacks, this readiness to go to war instead of taking action against the terrorists in one incontrovertible evidence of the Pakistani state being hand in glove with the terrorists. That makes it a high terrorist country. Yes, it is one huge terrorist machine there, which has neither learnt anything from the Taliban fate, nor reformed its ways.

Holy days and unholy acts

All the nuances in the bin Laden tape, referred to above, are indicative of how the terrorists' minds work and what they think of as permitted and meet to do. Before Kabul finally fell even without a token was, a difference had emerged in the Musharraf-Bush equation over the issue of continuing the retaliatory attacks during the month of Ramadan. The holy month, argued Musharraf to earn the Taliban a reprieve, is a period of austerities when all pious Muslims pray to God and observe fasts and any killing then would just not be 'right'. The conversation in the tape records that the terrorists preferred to fight during the month of Ramadan, and believed that God would give them ''blessing and more victory during this holy month of Ramadan". In fact, the terrorists have been striking even more heavily during the month, which normally should have been a period of prayers and pious deeds. It was during this holy month in 1990, then falling in the month of April, that terrorists mounted the greatest initial attack on the minority Hindus in Kashmir and forced their total exodus. Since then, they have always been unmindful of any holy days or months in their reprehensible acts of killings and cruelties, and have been becoming extra-active during these.

The latest big-time killing after the dastardly assassination of the session judge in Rajouri has come on the acme of Ramadan, the Eid-ul-Fitr day when they gunned down the tehsildar of Ganderbal who, unprotected, unarmed and alone, was going on an equally pious duty of performing the fateh of dead father at his tomb. What 'blessing and victories' did the terrorists Expect God would grant them, by killing an innocent Muslim, as pious as any around, on one of the holiest days of the Muslims? Nobody would dare call that a holy act; it certainly is one that no God would, that no God should, ever countenance. Of course, the terrorists have all along been perpetrating reprehensible acts of this nature without a thought. And we have the "Shayakh" in the tape telling the greatest terrorist the world has recently seen that such unholy acts in the holy month would bring "blessings and more victory". How unholy all that!

Linguistic crisis in state schools

By M N Kak

Language crisis continues to overwhelm our students with respect to English. Our learners almost at every level feel strangulated while expressing their view points in English, which is a burdensome exercise and continues to irk.

Functional treatments of the language in terms of functional and utility based grammar need to be integrally linked.

At the HSP (I) level, experiences for the students are exasperating and none is generally speaking, prepared to work in the right measures.

Basic concepts and facts need to be ingrained. Three guides on the newly introduced Book 'Spectrum' in English have seen the light of the day and it is said that one more is coming up, only to add to the problems of English teaching. Despite the teachers hard work and a will to help the students, these guides become the stumbling blocks.

CCE is a five tier system of examination, thanks that the earlier 6 - tier has been slashed by one. It is the common experience that students mug up what they come across with in the guides. This reduces the chances of a careful and integrated instructional work. The students refuse to be involved in a serious work and it is not possible to urge them. Learning of language especially English appears to be troublesome and interest is not stimulated. PCM plays havoc with the students whose interest is only for the three subjects. If English too were included to make it PEMC (Physics, Chemistry, Maths and English), results it is expected could be better. The need for English language is also of a paramount importance as without it, things look somewhat dull and drab.

In language learning there is the need for involvement of the students who must be exposed and helped to benefit from exposures to better understanding and appreciation of English and its beauty.

Firstly, there is need for an Integrated Grammar covering some important items as Tenses, Narration, Agreement of subject and verb, basic ideas about verbs, paragraph writing, essay writing etc. "I am working," "I was working", "I have been working", "I shall be working", "he has been going it" and all that sounds Greeks and one cannot be told from the other. This is horrifying and threatens the linguistic culture of our learners. Then, the more important fact is that Grammar be taken up on a functional and structural basis. Students interests are to be stimulated. PCM is a barrier in English learning. Amidst this language crisis, English does not receive the attention it deserves.

The earlier six tier examination is now reduced as it has been slashed by unit tests. Instead of these three unit tests, things could improve if the marks allotted for three unit tests would be reserved with the teacher concerned.

A thoroughly devised comprehensive linguistic syllabus for these three tests can be built up at the Board level and will be transacted in schools on the basis of assignments drawn from the syllabus as mentioned above. This measure will prove amply useful in retaining the interest for language, in maintaining discipline and the most important learning to write, speak, express and think.

This strategy will be beneficial in many respects. First too much of examinations shall stop. Examinations, too many of them are likely to dampen the interest of the learners. And last of all, it would be suggested that the Board conducts T-02 examination, if it could be possible things are likely to improve.

P(H)OTO finish politics

By Atul Cowshish

Post September 11, the Bharatiya Janata Party has found a new mantra to shore up its fast falling support. A legislation to fight terrorism. As all indicators suggested a rapid decline in its popularity, the BJP was looking for a survival strategy. Obviously, the party was not too sure of the force of its Ayodhya card even while continuing to play it by means unfair and provocative.

At a time when the world has joined India in experiencing the horrors and dimensions of terrorism, the BJP leadership finds it politically most expedient to tell the country that all that needs to be done to banish terrorism from India is to bring in a ''tough'' legislation to fight this curse. That the ruling party is not in a position to get the legislation passed in both Houses of Parliament, especially the Rajya Sabha where it is short of majority, is of no consequence for the short-term goal of salvaging the party's prestige in the forthcoming UP Assembly election.

Parties that oppose the proposed legislation are being berated day in and out for siding with ''anti-national'' elements and being soft on terrorists and the war against them. The ruling party has also been shouting from housetops that some of the States ruled by Opposition or non-BJP parties are keen on POTO-like measures to deal with their problems.

Regardless of the prospects of its passage in Parliament, the party in power has hurried with the legislation as the UP election scene begins to warm up.

Thus was born the Prevention of Terrorism Ordinance, or POTO, on October 24, five weeks before Parliament was to begin its winter session. How easily has the BJP forgotten that when it was in the Opposition it was always critical of ordinances brought close to the beginning of a session.

The speed with which POTO has been promulgated has stunned even the allies of the BJP who are unable to lend an unqualified support to this new BJP formula for winning elections even though it has been styled as a potent weapon to fight terrorism. The BJP leaders, beginning with the Prime Minister and some of his more vocal Ministers, have been creating the impression that it is the Opposition which is stopping the country from launching a final assault on terrorism through this ''weapon'' by coming in the way of enacting the ''tough'' legislation-''need of the hour''.

It is the devious Opposition which finds POTO draconian, say the BJP bigwigs, little realising that their summary condemnation of the opposition to POTO is proof of a mindset which brooks little or no criticism of its actions. It is a mindset that looks out of place in democracy. It is dangerous too.

Not much need be said about the intolerant tendencies of the BJP leadership which is currently bent upon pushing India into dark ages of obscurantism from where neighbouring Afghanistan is now struggling to come out after a great deal of sacrifice. It is also not necessary to elaborate the oscillating policy of the present government on handling terrorism because everyone remembers the disasters of ceasefire politics in Kashmir and the North East as well as the VIP treatment of Indian Airlines hijackers. Yet, we have to believe that the government is capable of fighting terrorism and more effectively with POTO in hand.

Ironically, POTO has been brought by a party, which used to discover ''draconian'' laws at every corner during its long stint in the Opposition and a party, which had, in fact, suffered under Congress regimes. What happened to BJP and other Opposition parties in the past was right? It would appear that as far as BJP is concerned two wrongs make one right.

As an Opposition party, the BJP had joined other Opposition parties in opposing extension to TADA in 1995, claiming that the law had not proved effective in curbing terrorism in Pun- jab, the ostensible reason for bringing in that ''draconian'' law. Changing colours comes easy to politicians.

The tenor of criticism against POTO sounds louder because not many have trust in the words of the BJP leadership, considering their frequently shifting stances.

Even during its initial days, the so-called US-led war against terrorism had brought home the point that this fight cannot conclude successfully only with the help of a military operation. The US administration quickly brought stringent domestic anti-terrorist laws.

The inspirations for POTO are said to have come from this American legislation with an interesting acronym: USA-PATRIOT (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism.)

While this Act has been widely criticised, a vital differences between the American and the Indian legislation against terrorism is that while USA-PATRIOT is aimed at aliens POTO is for Indians.

The advocate of ''pro-active'' policies in the government being long on words and short on action, it does not look that this government is capable of fighting terrorism with or without POTO. Terrorism did not hit India only after September 11. The terrorists, whom the Pakistani dictator calls ''freedom fighters'', have been indulging in particularly inhuman acts since 1998, around the time India came to be ruled by BJP.

Perhaps, the ''new iron man'' of India should have tried to test a POTO-like legislation earlier, instead of hurrying it so close to the crucial UP Assembly election and thereby betray an ulterior motive behind it, which has nothing to do with fighting terrorism. In today's context POTO looks more a political/election campaign tool than a tough legislation to fight terrorism.

In defending POTO, the government cannot take shelter behind any sanction from the Law Commission, which after two meetings in December 2000 and January 2001, had submitted a report on modifying the previous ''draconian'' measure, the Terrorists and Disruptive Activities Act (TADA). The National Human Right Commission (NHRC) had rejected the ''modifications'' outright because they clashed with the spirit of democracy and civil liberties.

Far from heeding this advice, the government has introduced two dangerous clauses in POTO, relating to definition of terrorist organisations and interception of communications. The definition of acts of terrorism in the ordinance can easily lead to curbs- if not something worse- on even strikes which may be found to have caused ''damage to property'' or ''disruption of supplies'' etc. The ordinance has also prescribed 23 organisations rather selectively. Under the new definition of terrorists' outfits, certain public expressions of political dissent can invite incarceration with little hope of an easy bail while investigations can linger on for four months.

The concept of ''citizen spy'' which had earned Hitler and his Nazi Germany so much of notoriety is an anathema in today's world. But POTO will bring back this dark practice, which will be a special cause of worry to intrepid journalists who risk a three-year jail term with fine for not disclosing their sources. Interestingly, lawyers who have to interact more deeply with ''terrorists''-- should they be hired by one for defence in court- have been exempted from this upleasant provision.

A national daily noted that the government had dangled a ''lollipop'' before the Press in the form of a senior journalist being asked by the Editors' Guild of India to redraft certain provisions in POTO, which were found particularly offensive, by journalists. But this government gesture has received little acceptance from the larger sections of the fourth estate, which has not been ''amused'' by this government gesture. The opinion in the fourth estate is overwhelminghly against POTO.

When another national daily of the capital carried an article by one of its senior journalists in support of POTO, it published several other articles damning POTO and ended the controversy by writing a critical editorial on POTO.

POTO belongs to a succession of legislation, which curtailed citizens' rights but failed in their basic objective of curbing the growth of various kinds of unlawful and dangerous activities. The enactment of these laws brought attention to India's human rights record, much to the discomfort of those who thought that all was well with the rule of law and democratic practices in India.

Thus were enacted legislation like the Maintenance of Internal Security Act (MISA), National Security Act and TADA. The last named was seen as the worst of the three. It had led to thousands of arrests and many custody deaths. Over 75, 000 people were arrested under TADA, a large number of them belonging to the minority community. Less than 2 percent of these TADA detainees were convicted.

Many who oppose legislation like TADA or POTO say that provisions in the existing laws take care of most, if not all, of the activities sought to be curbed by ''draconian laws''. The failure has been in enforcing the law, not in the law. There has been a lack of seriousness in dealing with crimes of various nature, including terrorism, and a lack of political will and courage because the intention has generally been to settle scores through misuse of law.

There are chapters in the Indian Penal Code dealing with offences against the state (chapter VI), mentioning specific offences against the state (section 124). Chapter VII deals with offences against the public tranquility including imputations and assertions prejudicial to national integration (section 153).

The IPC may not cover acts of ''terrorism'' as it exists today. But an addition to section 124 could well do the job. Also, some of the punishment under IPC may appear too mild. The remedy lies in amending the provisions to raise punishment suitably.

Apart from the IPC, there are many other laws, which cover a variety of offences-- Arms Act of 1959, Explosive Substances. Act, Armed Forces Special Powers Act 1967, Anti-Hijacking Act 1972, Prevention Detention, Narcotic Act 1988 etc.

If these rules have not proved very effective in application, the blame should go to the shoddy manner in which cases are pursued and investigated. Add to that the notorious delays in courts, something that should be catching the attention of the higher courts instead of matters like replacing bus fleet. Prosecution should be swift and law should not be allowed to aid in delaying justice.

All said and done, legislation like POTO can evoke acceptance across a spectrum only if the intention behind bringing it is above suspicion. Some commentators-- and not just Opposition politicians-- have seen the promulgation of POTO as a way to divert attention from the patently poor performance of BJP.

Meanwhile, a remark by noted jurist Justice V R Krishna Iyer in the context of POTO is quite apt. Quoting the French writer Anatole France, who was awarded the Nobel Prize in 1921, he said: ''Justice is the means by which established injustices are sanctified.''

Syndicate features

Roads on the right track?

By Binay Srivastava

The economic losses due to poor condition of ‘Roads’ is estimated to be around Rs.25-30000 crore annually. Holding 'Roads’ as a prime contributor for keeping Indias competitiveness down to 43rd amongst 47 developed and developing countries, the government has decided on its major overhaul quick and fast.

Intent on creating a credible highways system running across the major towns and cities, the govt. has put up under NHAI (National Highways Authority of India) a Rs.54000 crore fund for 13151 km long multilaning and upgradation of roads on a monitorable deadline of Dec. 2003 for completion of first component and Dec. 2007 for second one. The total contract for the 1st component comprising of 5851 km long golden quadrilateral (GQ) under NHDP (National Highway Development Project) joining Delhi-Mumbai-Chennai-Kolkata has been awarded by Nov.2001 except for a 87 km long Allahabad bypass stretch. 978 km has hlready been 4-laned and the balance is under construction and project finalisation.

Of the funding requirements, Rs.20000 crore will come from multilateral borrowings, Rs.20000 crore from central road fund, Rs.10000 crore from public participation via bend issues and Rs.4000 crore by way of private participation. Besides this, the NHAI is also on the verge of signing a 15-20 year maturity funding arrangement which is repayable from the accruals of the central road fund that the Government finances by way of levy of Rs.1 per litre cess on petrol (from June 1998) and diesel (from March 1999).

Second component of the NHDP is the 7300 km long national highways corridor connecting north (Srinagar) to south (Kaniakumari) and east (Silchar) to west (Porbandar). Of this 675 km has already been 4-laned and 739,1 km is under construction. The contract for the remaining 5886 km of the project would be awarded by Dec.2005 with completion scheduled for Dec.2007.

In order to make Indias’ foreign trade more competitive, linking high-density GQ to points of high economic potential has also been worked out. Connecting 12 major ports to the national highway is being,taken in the first place. The port-road connectivity would be a 400 km long, Rs.1600 crore, 4-laned project. Groundwork for Haidia, Vizag and JLNP (Nava Sheva) ports have already been kicked off. Kandla, Koehi, Paradeep, Marmugao, Tuticorin are to follow next. Being built through SPV (Special Purpose Vehicle) route, the NHAI would levy a toll once these are completed. NHAI plans to invest 30 percent and raise the balance from the market. The SPV route is an alternative to the traditional BOT (Build, Operate, Transfer), annuity and shadow toll approach that are currently in place for executing NHDP.

The immediate focus for NHAI is to oversee that the stretches failing under GQ and NSEW pathways, Weather on annuity, BOT or shadow tolling route get completed by Dec.2003 and Dec.2007 respectively besides adhering to the scheduled time for different port-road stretches. To woo road developers to keep time, a 1 percent bonus clause has been introduced. It means if a developer completes a project worth Rs.300 crore four months ahead of schedule, he gets 12 crore as bonus.

The demanding schedule that is at work, it is expected that beginning Jan.2004, we will get to see the road development opening up a plethora of growth opportunities as it would offer fast and cheaper movement of goods. There would be savings in vehicle operating costs, comfortable journeys, reduced fuel and maintenance costs and development of wayside amenities like hotels, motels, petrol pumps, service centres, dwelling units etc.

Allaying fears that of the 55000 km long national highways, ‘attention is only being paid to approximately 14000 km road to be upgraded under NHDP, the government says that fund thr NHDP has been earmarked separately. What was earlier spent on 55000 km length would now he spent on 40000 km (non-NHDP highway). From this year onwards, there would be a spending per year of Rs.9000 crore on NUDP, Rs.1000 crore on state highways, Rs.2500 crore on rural roads and another Rs.2500 crore on non-NHDP highways. This means there would be a spending of Rs.15000 crore on road sector as against Rs.2500 crore per year till last year. It seems for once our roads are on the right track. Whatever happens to the other means of communications, as long as there are distances to he bridged physically, future of man-made roads is secure.

Unfreezing Indo-Japanese ties

By I. S. Chaddha IFS (Retd.)

Prime Minister Atal Bihari Vajpayee's five-day visit to Japan was capped by the joint declaration with his Japanese counterpart, Mr. Junichiro Koijumi, at the Akasaka place. The declaration set the thaw in Indo-Japanese relations that had remained more or less frozen by the post-Pokhran sanctions imposed by Japan in 1998. Interestingly, the text of the document, prepared over the preceding days without too many hiccups, maintained a studied silence on India signing the Comprehensive Test Ban Treaty (CTBT) and the Nuclear non-Proliferation Treaty (NPT).

While Japan has understood that India needs to build consensus within before signing the CTBT, on proliferation it is seen to have underscored India's unequivocal stand, which has carried the day on the weight of its integrity. Indeed the two countries stressed the importance of working together to effectively check nuclear proliferation. Moving beyond these contentious issues, the declaration spoke of working together for stability and prosperity in Asia, and to end terrorism. Further, the two countries have agreed to the regular exchange of views on all security-related issues. Mr. Koijumi went beyond existing economic support programmes to pledge Rs. 2000 crore to India for a coal power plant at Simhadri in Andhra Pradesh, and the Delhi Metro railway project.

The success at the political level was preceded by some straight-talking on economic issues when the trade delegation accompanying the Prime Minister and his Disinvestment Minister, Arun Shourie, met its Japanese counterpart.

For India, Japan is an important economic ally. It is the fifth largest export destination of Indian goods and also the fifth largest investor in India. India setting up a fast track committee to woo Japanese investors was the prerunner of the 1991 liberalisation programme.

Japan was the first to send a high-power delegation, the Ishilkawa Mission, to assess the investment potential and make prescriptions to dismantle the procedural barriers. Quantitatively, there has been phenomenal growth in the bilateral economic relation. But not so qualitatively. India has to that extent failed to grab substantial Japanese investment.

Six years ago, Japan was the second major export destination of Indian goods. Today, it has slipped to the fifth. Japan's exports to India, post-liberalisation, have increased manifold. There has been practically no change in the basket of Indian goods exported to Japan. Diamonds, marine products and iron ore continue to dominate, constituting over 55 per cent of the exports to Japan.

Thus, for Japan, India is still largely a natural resource. The acknowledged software technology expertise is only now beginning to dawn on it. In contrast to the other major trading partners - the US, the UK and Germany, India has managed to generate a demand for more value-added products (readymade garments, engineering goods) post-liberatlisation.

But India can take heart from the flattering picture portrayed by a recent Japan Bank for International Cooperation (JBIC) survey on Japanese FDI outlook overseas. It raised India two positions as the fifth most attractive destination for Japanese investors this year. This is ironical for, in reality, Japanese investments to India declined sharply in that period, with the investment less than half that approved in 1998.

The FDI flows, there has been a tendency to benchmark India against China. The JBIC survey continues to place China as Japan's most favourable investment destination, followed by the US, Thailand and Indonesia. But, contrary to this, Japanese investments in China have declined sharply over the past five years.

In this period, Japanese FDI in China dropped to $751 million in 1999-2000 from $4,473 million in 1995-96. In 1999-2000 when total Japanese FDI leapfrogged to 63.7 per cent after a continuous slump in the preceding three years, that in China declined by 29.5 per cent. It is ironic that Japan's FDI declined in China at a time when the latter was gearing up to enter the WTO.

Perhaps, some political-economical factors contribute to the unstable and weakening investment climate. Japan is teetering on the brink of economic collapse. The nation is reeling under a deflationary situation. In January-October, industrial production fell 11.9 per cent, while retail sales declined 4.9 per cent. The GDP growth plunged into negative growth by 0.7 per cent and the forecast is bleak for the near future. Persistent deflation creates new bad debts in the banking system. It encourages households to put off spending.

Apart form these constraints, India's forceful "Look East" policy emerged a barrier to the Japanese to do business freely in the country. Hong Kong emerged the second largest export destination for India, replacing Japan. South Korea became the fourth largest investor in India in the five years from 1995, pushing Japan to the fifth slot. Further, the Koreans took on successfully the Japanese oligopoly in consumer durables, such as automobiles and household electronic goods, though India has been lukewarm to Korean investment in the early 1990s.

In the small-car segment, the share of Maruti-Suzuki fell from 85 per cent in 1997-98 to 58 per cent this year, because of key Korean players such as Hyundai and Daewoo. The Koreans also emerged the top producers of consumer electronic goods such as refrigerator, TV, microwave ovens.

The Japanese envoy recently expressing indignation over the Indian taxation system, citing it as a stumbling block to Japanese investment does reflect on diplomatic maturity, particularly when Mr. Vajpayee had on his agenda efforts to attract Japanese investments. Japan needs to remodel its overseas investment outlook keeping in view the inherent strength and capability of host nations.

All Asian nations are not alike. The Asian nations are once again heading for volatility. China is yet to prove its compatibility after entering the WTO. The Japanese yen is under constant pressure with the continuous deflation. There are few nations that can forecast a better GDP growth.

In this vicious circle of uncertainty, India's forecast for a 5 per cent growth in GDP and large pool of skilled manpower should attract Japanese investors. INAV

 



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