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Indian Army November 1962, a Department of Through Secretary of State for India Defence Production Was Set up to and Governor General-In-Council

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Indian Army November 1962, a Department of Through Secretary of State for India Defence Production Was Set up to and Governor General-In-Council 1 THE SECURITY ENVIRONMENT Vigil at Siachen 1 India remains fully committed to maintain peace and stability with its neighbours in the region and in the global context through effective diplomacy, backed by credible military deterrence. 1.1 India has taken suitable steps Iraq, the nuclear stalemate on the to meet the challenges and Korean Peninsula, and the opportunities arising out of its rapidly unsatisfactory situation regarding the changing security environment. proliferation activities of the past While our peace effort with Pakistan have made Indian planners take into has maintained strategic stability in account these unsavoury aspects. our west, developments in Nepal and The Indian Ocean Region has Bangladesh during the course of the assumed enormous importance year have caused concern, mainly in considering our energy the border regions with these requirements. The oil flow in this countries. A concerted diplomatic region is estimated at 15.5 million effort with the two governments has barrels per day through the Persian brought about a degree of Gulf, 10.3 million barrels per day understanding and India continues through the Malacca Straits and 3.3 to work together with all its million barrels per day through the neighbours in ensuring peace and Babel-Mandab (Gulf of Aden). This stability in our region. The global traffic raises security as well as situation has mirrored our regional environmental concerns. The position. Concerns regarding Ministry of Defence has contributed terrorism, including state sponsored to Indias overall reaction to these terrorism, proliferation of weapons of growing challenges by keeping its mass destruction, trafficking of armed forces at the highest levels of narcotics, small arms and human defence preparedness and the ability beings, and the increasing profile of to react with swift counter measures. non-state actors willing to use violence under the garb of religious 1.2 Progress towards a truly multi- fundamentalism to press ahead with polar world, with India as one of the their political agenda has increased poles has been slow but steady. in the year under review. The multiple Chinas emergence during the year terrorist bomb blasts in London and as a major importer and influencing Delhi, the continuing instability in factor in the volatile energy markets 2 India continues to and as a country that situation. The change of leadership is looking to park its in Palestine and Israels increasing keep its armed excess capital in closeness to Egypt and Jordan were forces at the highest various projects across expected to reduce tensions in the levels of defence the globe, including in Middle East. However, internal preparedness with the US have made an politics and instability in Israel, the the ability to react initial impact, inability of the former Palestinian swifty. especially in the US. regime to fully control its sub- Our region is also structures and the growing tension influenced by such developments. between Syria and Lebanon have The difficulties emerging in the negated most of the positive enlargement and consolidation developments in the region. The process of the European Union security situation in Iraq continues caused some set back in its effort at to be worrisome despite significant providing leadership in Europe. political steps taken such as the Russias emergence as a major adoption of the Constitution and energy supplier and its willingness elections to Parliament conducted to protect its interests in its near recently. The promise of the abroad have also impacted on the Gleneagles Summit to help the global security and strategic poorest of the poor, most located in INS Beas patrolling high seas 3 Africa remains to be transparency has made significant The global transmitted into progress during the year. The Right community needs to effective results. Much to Information Act is being focus more on the of the year was implemented and is a major problems faced by turmoiled by the revolutionary change in the the least developed intransigence of the accountability of Indias public countries, or else it developed countries to delivery systems. In the Ministry of will only add to reduce their huge Defence, a transparent and fair global security and agricultural subsidies. procurement procedure has been However, the 2005 further strengthened in the form of stability concerns. year-end Hong Kong Defence Procurement Procedure meeting of the WTO (DPP) 2005. Appreciation of Indias showed promise that the Doha emerging economic, political and Round of Talks may yet conclude military capabilities and its position with some forward movement. The as a responsible power, including in global community needs to focus the areas of nuclear capability has more on the problems faced by the led to a significant upscale of Indias least developed countries, or else it ties with the global community, will only add to global security and including in the field of defence. stability concerns. 1.4 A significant feature of the year 1.3 Economic growth and all-round under review was the substantial up development are an important scaling of international cooperation component to Indias overall security in mitigating disasters, natural or and stability. India enjoyed another man-made. The Asian tsunami havoc year of handsome growth at over would have been far more painful for 7%. Trends in the second half of the those affected had not the global year indicate that the country is likely and regional powers joined hands to to achieve a rate of 8% in 2005-06. reach relief, succour and Despite some initial concerns about rehabilitation to those in need in an a monsoon deficit and subsequent efficient and timely fashion. The use floods in the northern, western and of national defence forces and assets southern parts of the country, in a joint manner, on a massive scale agriculture has recorded significant has triggered new political and growth to match Indias good defence dimensions. Indias role in performance in the industrial sector quickly mobilizing its defence and and its double digit growth in the civilian assets, not only for those services sector. Social development affected in the country but also for in the areas of health, education, the millions in nearby Sri Lanka, empowerment of women and Maldives and other neighbours in 4 Indias emerging Asia has catapulted the UK and the USA. Significantly, country to a leading Raksha Mantri Shri Pranab economic, political seat in major global Mukherjee, visited both Russia and and military disaster relief initiatives. the USA during this period leading to capabilities and its Such jointness and new levels in our defence relations position as a global response to with the two strategic partners. The responsible power, disasters was signing of agreements for the P-75 including in the witnessed repeatedly submarine contract in October 2005 areas of nuclear through the year, most and subsequent operationalisation of significantly after capability has led to the project was a major achievement Hurricane Katrina in the with France. The Hawk Advance Jet a significant United States and the Trainer (AJT) project with the UK is upscale of Indias horrifying earthquake in proceeding smoothly and as per ties with the global parts of Pakistan and schedule. Projects under community, India. implementation with Israel are including in the field 1.5 Intensive continuing and the two sides are of defence. interaction took place looking at means to step up their between India and its defence partnership. In tune with its major defence partners, including philosophy of maintaining and France, Israel, Russia, South Africa, strengthening defence relationships INS Aditya and INS Mysore with USS Chafee during Joint Exercise 5 Strategic defence with international partnership towards preparations for dialogue has partners as part of a globally coordinated initiative to assumed a Indias contribution to fight against the menace of terrorism, significant role in the global peace, security proliferation, trafficking, piracy and defence partnership and strategic stability, the nefarious activities of non-state between India and a the Ministry of Defence actors. Indias commitment to UN-led number of countries has significantly peacekeeping operations remains leading to greater stepped up its defence unwavering and we have expanded joint partnership ties with a wide range our role by agreeing to contribute towards of countries across the troops towards the UN operations in preparations for a globe. While the middle-east. globally coordinated concentrating on the 1.6 The process of attaining peace initiative to fight immediate and and stability with Pakistan has against the menace neighbouring continued with the completion of the of terrorism, countries, as also second round of the composite proliferation, countries in the Indian dialogue and the third round which trafficking, piracy Ocean Region (IOR), has commenced. The ceasefire and the nefarious the Ministry has also along the International Boundary activities of non- encouraged further (IB), the Line of Control (LOC) and state actors. development of our the Actual Ground Position Line nascent ties with the (AGPL) in Siachen in force since countries of Africa, Latin America, November 2003 has held for over Central Asia, Southeast Asia and two years, setting a new milestone in Northeast Asia. During the course of the process. The year saw significant the year Ministry of Defence signed progress in people to people five defence related agreements and oriented confidence building Memorandum of Understandings measures, such as the start of the (MOU), with its international partners, Srinagar-Muzaffarabad bus service in addition to various working level despite violent terrorist attacks documents, including Protocols against the service in the initial negotiated and signed by the MOD stages. A new service on the and the three Services for holding Amritsar-Lahore sector was also joint exercises, training programmes, started subsequently. The Thar equipment supply, etc. Strategic Express train service on the defence dialogue has assumed a Monabao-Khokrapar sector started significant role in the defence on February 18, 2006.
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