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Extracts from the Speech of the Prime Minister
At the outset I would like to join my colleague the honourable Raksha Mantri to pay tribute to our jawans and officers who valiantly defend our borders. I also express our Nation's profound gratitude to the men and women in uniform who helped in rescue, relief, rehabilitation and reconstruction in the wake of a variety of natural disasters. The humanism and efficiency of our armed forces in responding to the tsunami disaster, to floods in various parts of our country, to cyclones and earthquakes, especially the recent quake in Jammu and Kashmir, have made us all proud of our gallant armed forces.
The security challenge facing India is diverse, complex and evolving. That is to be expected given our size, our location, our historical legacy and, increasingly, our expected role in the emerging multi-polar world.
The end of the Cold War, increasing global inter-dependence and the trans-border nature of many threats have made strategic concepts developed in a bi-polar world somewhat irrelevant. The United States is today the dominant economic, military, technological and cultural power. However, it can be anticipated that the European Union, Russia, China, Japan and India will consolidate their individual positions to play a global role. We must evolve a new paradigm of security cooperation relevant to an emerging multi-polar world in which global threats obtain global responses.
This is precisely what India has sought to do. We have entered into strategic partnerships with the United States, Russia, Japan and the European Union and are pursuing strategic cooperation with China. Today, nations are engaged simultaneously both in competition and cooperation.
While the international community has made some progress in evolving a rule-based order for managing the economic and commercial dimensions of globalization, the absence of an effective, rule-based order is acutely felt in addressing contemporary security threats, such as terrorism and the proliferation of weapons of mass destruction. Simultaneously, globalization has sharpened the threat posed to us by instability in both our immediate and our proximate neighbourhood. Along with this, we must also be mindful of the desire of extra-regional powers to keep us engaged in low-intensity conflicts and local problems, to weigh us down in a low-level equilibrium.
To meet these challenges, our strategy has to be based on three broad pillars. First, to strengthen ourselves economically and technologically; Second, to acquire adequate defence capability to counter and rebut threats to our security, and third, to seek partnerships both on the strategic front and on the economic and technological front to widen our policy and developmental options.
With this in perspective, India too is reciprocating positively to overtures of other major players in the global balance of power. No doubt this involves sophisticated bargaining with each of them. It is unrealistic to expect nations to act for altruistic reasons. International relations are in the final analysis, power relations. This balance of power politics in international relations is more sophisticated than during the Cold War era. We must learn to deal with this new reality and plan our long-term security based on a proper appreciation of these evolving trends.
Consequently, we should develop friendly interactive relations with as many major powers as possible. For the armed forces, such interaction should encompass weapon and equipment acquisition, joint development of systems and evolution of defence doctrines. This will help in securing wider international support when we need it most.
In the Arthashastra, Kautilya wrote that a healthy economy is a sound foundation for well-funded armed forces. "From the strength of the treasury", he said "the army is born". But it is not only for fiscal reasons that the health of our economy is important for our national security. A healthy, growing and stable economy in itself enhances security. New notions of "Comprehensive National Power" give high weightage to economic, social, scientific, technological, educational and cultural aspects of power. Military strength alone no longer guarantees a nation's security. Knowledge power and economic capabilities are equally important.
I am sure that our defence community recognizes that economic progress has enabled accelerated equipment modernization. Today's international climate enables us to draw on world financial flows for development and to offer our skills in exchange for other countries outsourcing services and manufacturing to India for mutual benefit.
Our armed forces have always been assured that our Government will never shy away from finding funds for our defence requirements and I endorse what the Defence Minister has said in his address. It should be obvious, however, that any Government will find it easier to find the required resources if the economy grows faster and generates the incomes and revenues required. If our economy grows at 8% per annum it will not be difficult for us to allocate about 3% of our GDP for our national defence. This should provide for a handsome defence budget. Hence, our priority is to pursue policies to generate faster economic growth and mobilize more resources.
Critical to our effort to step up the rate of economic growth is the assurance of energy security. This requires a broad-based energy policy based on rational economic and strategic considerations. Rational domestic pricing policies, financing of long-term investments, diversification of sources of energy and ensuring the security of sea-lanes and other means of securing energy supplies are vital for our national energy security. In this context, an expansion of our civilian nuclear energy programme is also of vital national interest. The agreement entered into with the United States during my visit to that country in July, I hope, when operationalised will help us enormously in this regard.
I do believe that it is in our national security interest to ensure that our neighbours evolve as viable States with moderate and stable political and social environment and a robust economy. There is a role for diplomacy and for civil society in influencing this process. South Asia must be home to open societies and open economies. That is in our interests and in the interests of all countries of South Asia. Political pluralism and moderation can stabilize our security environment.
We also have a vital stake in the security of the sea lanes to our east and west. The Indian Navy therefore must expand its capability to protect these sea lanes. We must ensure workable alliances with like-minded countries for the security of these sea lanes, for our commercial and energy security.
Lately, natural disasters have emerged as a major area of operation for our armed forces. Apart from providing logistical support to civilian authorities, the armed forces are being called upon to deal with humanitarian challenges, project capabilities abroad and engage the defence services of other countries. Such demands will increase as we face forecasts of natural disasters of unexpected magnitude in the future. We must therefore engage in scenario building and in disaster management gaming to prepare for all eventualities.
In my address last year I dealt with issues relating to modernization and use of latest technology in some detail. I must repeat here that this will remain a priority for us. Our armed forces requirement for modern equipment will receive priority attention. There should be no doubt that our Government will make the required funds available for equipment for our armed forces. I am happy that after a long gap our Government has been able to step up defence equipment purchases aimed at modernization of all our services. In this context, I would like to compliment the Ministry of Defence for bringing out a comprehensive procurement manual to streamline procedures, enhance transparency and reduce timelines for decision making. This is one important step towards the goal of procedural reform aimed at faster, more transparent and better decision making in defence procurement.
Defence planning also requires greater attention to service related issues, including training and benefits for both ex servicemen and for the next of kin of our soldiers. We have established a new department of ex-servicemen, and we have launched a scholarship scheme to assist in the education of the wards of ex-servicemen and widows. We have refined the Ex-servicemen's Contributory Health Scheme. We must also move ahead to establish a National Defence University soon, as recommended by the K Subrahmanyam Committee on this very subject. However, we still need fresh thinking on how best to improve training, and to address the shortfall in recruitment of officers in the services.
In closing, let me once again express to you the nation's gratitude and pride in the professionalism and dedication that you have always shown in defending our motherland and serving our people. May your path be blessed.
Thank you.