DEFENCE AN DEFENCE AND D DIPLOMACY DIPLOMACY IN PURSUIT OF NATIONAL SECURITY VOL. 7 NO. 1 ISSn 2347 - 3703 october-december 2017 • A decade of offsets Policy: In retrospect SN Misra • Implications of Piecemeal distribution of IAF Assets Vivek Kapur Vol. 7 no. 1 • october-december 2017 1 • october-december 7 no. Vol. • organisational decision making in the Armed Forces: case Study, Perspectives and challenges Ankush Banerjee • India-Japan defence ties Under the leadership of Shinzo Abe and narendra modi Piyush Ghasiya • time to consolidate ties with myanmar to create a new regional Security balance Mohinder Pal Singh • India’s engagement with South caucasus Ngangom Dhruba Tara Singh • climate change: the Future challenge to Security Stuti Banerjee • left Wing extremism in India: Understanding Ideological motivations Suparna Banerjee Book Reviews JOURNAL OF THE CENTRE FOR AIR POWER STUDIES CONTENTS Editor’s Note V 1. A Decade of Offsets Policy: In Retrospect 1 SN Misra 2. Implications of Piecemeal Distribution of IAF Assets 13 Vivek Kapur 3. Organisational Decision Making in the Armed Forces: Case Study, Perspectives and Challenges 25 Ankush Banerjee 4. India-Japan Defence Ties Under the Leadership of Shinzo Abe and Narendra Modi 39 Piyush Ghasiya 5. Time to Consolidate Ties with Myanmar to Create a New Regional Security Balance 51 Mohinder Pal Singh 6. India’s Engagement with South Caucasus 61 Ngangom Dhruba Tara Singh 7. Climate Change: The Future Challenge to Security 71 Stuti Banerjee III Defence and Diplomacy Journal Vol. 7 No. 1 2017 (October-December) CONTENTS 8. Left Wing Extremism in India: Understanding Ideological Motivations 81 Suparna Banerjee Book Reviews Strategic Vision – 2030 : Security and Development of Andaman & Nicobar Islands 93 Manmohan Bahadur Wider Horizons: Perspectives on National Security, Strategic Culture, Air Power, Leadership and More 97 Pooja Bhatt Defence and Diplomacy Journal Vol. 7 No. 1 2017 (October-December) IV EDITOr’s NOTE As the year draws to a close, one can only hope that 2018 will be less trying, more peaceful and the tensions in the world will ease with the realisation that reduced tensions permit progress and well-being. That is written as part of Christmas cheer, but is it a forlorn hope? Time will tell, but we must hope that 2018 will be better than 2017. Be that as it may, we will continue to provide for our readers well thought out and relevant articles on national security. The lead article in this issue is an examination of our offsets policy by Dr SN Misra a former Joint Secretary (JS) (Aerospace) in the Ministry of Defence. He has dealt with the subject for many years and he presents his views clearly and cogently. He examines the policy as it has altered over the years since its first version came into being in 2005. The main purpose was to bolster indigenisation but the policy has not been an unqualified success. In spite of the fact that with the offsets policy, the costs rise by some 10 percent, we have not followed a concerted plan of action, and have, instead, resorted to incremental changes. The recommendations he makes have merit and it is hoped that they will be examined in some detail. A good concept must yield good results. There have been a number of articles and discussions on the inadvisability or otherwise of adopting an Integrated Theatre Command concept in our country. The Indian Air Force vehemently opposes the concept and with good reason. In another well argued article, Gp Capt Vivek Kapur argues that Integrated Commands will seriously undermine the effectiveness of Indian air power. The ranges and attributes of modern-day combat aircraft in our arsenal are way superior to what they were some decades ago. From a given deployment location, they can now be tasked to cover geographical areas of more than one Integrated Command. Also, the numbers V Defence and Diplomacy Journal Vol. 7 No. 1 2017 (October-December) EDITOr’s NOTE of combat aircraft and, particularly, the force multipliers are very limited and there is no wisdom in sharing poverty. He suggests that instead of continuing to keep the issue alive, our armed forces will do well to recognise that the need of the hour is joint planning and not major organisational changes. In an interesting and very readable essay, Ankush Banerjee discusses organisational decision-making in the armed forces. The essay is embellished with appropriate case studies, some well known but pertinent to the subject, and the author argues that decision- making in the less taxing confines of offices is as important as it is in the melee and far more stressful environment of battle. The reader may not be convinced of the merit of his arguments in the first reading but the essay deserves an incisive examination. India-Japan relations have seen an upswing of late and Piyush Ghasiya discusses the defence ties under the two respective Prime Ministers, namely Shinzo Abe and Narendra Modi. Prime Minister Shinzo Abe’s “Free and Open Indo-Pacific Strategy” resonates with our “Act East Policy”. Although the “revision of the Constitution” in Japan, that would permit a more robust defence strategy, is some way off, it will be of mutual benefit. As and when that happens, the adoption of the revised Constitution will strengthen our ties more markedly. As it is, the existing “Special Strategic and Global Partnership” is yielding results. Undoubtedly, we are witness to the strengthening of our relationship, and the growing understanding on geopolitical issues, and, hopefully, Japan will address our concerns in our “Make in India” initiative. Myanmar is of critical importance to us, particularly as we see the deep inroads being made in that country by China. Our support for Aung San Suu Kyi during the period of her house arrest for nearly 20 years was unwavering. However, after the elections in 2015, when her party formed the government, her first overseas visit was to China and not India. Unfortunately, our projects in Myanmar have progressed very slowly and should be given more impetus. Mohinder Pal Singh examines the pertinent issues and also makes recommendations on the courses we should adopt. India has had long and fruitful trade and cultural relations with the countries of the South Caucasus, namely Georgia, Azerbaijan and Georgia, for centuries. Ngangom Dhrub Tara Singh traces the long Defence and Diplomacy Journal Vol. 7 No. 1 2017 (October-December) VI EDITOr’s NOTE history of our relationship with these countries, their geopolitical importance, and, hence, the need for India to seek opportunities for enhanced regional cooperation. Such attempts will be of mutual benefit and should be essayed. Climate change and the consequent environmental degradation is recognised as a serious non-traditional threat to national and international security. Unfortunately, the ill effects that stare at us in the face are often ignored or given short shrift. The needs of the present tend to score over the demands for the future. Stuti Banerjee opines that climate change is the future challenge and unequivocally suggests that the world must take note of the looming perils and adopt measures in all disciplines, including the military sphere, to assuage the problem. A composite strategy should be formulated and adopted. Some statistics quoted by her and the dangers we are likely to face make compelling reading. It is now just over 50 years since the Naxalbari uprising and Suparna Banerjee takes a look at what caused it, the manner in which the movement has gained ground, the divisions that have occurred and the politics involved. The author does not hold back in giving frank opinions even though some of them transcend the esoteric realm. A readable article. In our book review section, two books have been reviewed by our scholars. AVM Bahadur writes on Strategic Vision-2030: Security and Development of Andaman and Nicobar Islands jointly written by Air Mshl P K Roy and Cmde Aspi Cawasji. Both these officers have had first-hand experience of serving in the area and the review does justice to their work. In the second review, Pooja Bhatt reviews Wider Horizons: Perspectives on National Security, Strategic Culture, Air Power, Leadership and More by AVM Arjun Subramaniam. The book is a collection of some 40 articles penned by the author in recent times. Greetings of the Season and a Happy New Year to all our readers, Happy reading. VII Defence and Diplomacy Journal Vol. 7 No. 1 2017 (October-December) SN MISRA A DECADE OF OFFSETS POLICY: IN RETROSPECT SN MISRA The dismantling of the LPQ (Licence Permit Quota) Raj in 1991 was followed by economic liberalisation in the defence manufacturing sector in 2001. The offsets policy (2005) was recommended by the Kelkar Committee in order to leverage big ticket acquisitions in terms of Foreign Direct Investment (FDI), Joint Ventures (JVs), outsourcing and technology transfer from the arms’ exporters. The policy has since witnessed several changes, particularly in areas like FDI where 49 percent is now allowed as against 26 percent in 2001; multipliers for Micro, Small and Medium Enterprises (MSMEs), and inclusion of civil aerospace and internal security in its ambit. The paper identifies the impact of the policy in terms of FDI inflow, highlights the critical technology areas that need to be focussed on like “Make-in-India” and the Self-Reliance Index (SRI). It calls for activation of the strategic partnership model, espoused by the Dhirendra Singh Committee (2015), the need to focus on bolstering indigenous research capability and making the offsets policy inclusive of sectors like infrastructure, education and agricultural research. Highlighting the importance of critical technology areas like the Focal Plane Array (FPA) and Active Electronically Scanned Array (AESA), the paper makes a strong case for looking at the Brazilian experience of building the Embraer jet Prof SN Misra, Formerly Joint Secretary (Aerospace), Ministry of Defence, Government of India.