The opening of INS Jatayu at Minicoy, the southernmost island of Lakshadweep. Photo: Indian Navy
The opening of INS Jatayu at Minicoy, the southernmost island of Lakshadweep. Photo: Indian Navy
The opening of INS Jatayu at Minicoy, the southernmost island of Lakshadweep. Photo: Indian Navy
The opening of INS Jatayu at Minicoy, the southernmost island of Lakshadweep. Photo: Indian Navy

India aims to counter China's Indian Ocean footprint with second naval base in Lakshadweep


Taniya Dutta
  • English
  • Arabic

India is bolstering its security infrastructure in the Indian Ocean to guard against Chinese efforts to expand its footprint in the region and upheaval in West Asia, a strategic expert said.

New Delhi has opened a new naval base at Minicoy, on its southernmost island of Lakshadweep, after the pro-China government in the Maldives ordered Indian troops to withdraw from its own territory – where India has 75 troops stationed – by March 10.

INS Jatayu will be India's second such base on the island after INS Dweeprakshak.

"This is part of a long-term plan to protect India's interests, specifically the 80 per cent of energy that is flowing through this region," Srikanth Kondapalli, a professor of Chinese Studies at New Delhi’s Jawaharlal Nehru University, told The National.

The Lakshadweep islands lie about 130km north of the Maldives.

Navy Chief Admiral R Hari Kumar said after the launch the new base was strategically important due to the “upsurge in maritime terror, crime and piracy” in the Indian Ocean.

“The Indian Navy has responded with an assertive posture in the west and north Arabian Sea, undertaking anti-drone, anti-missile and anti-piracy operations to safeguard merchant traffic in the region,” he said.

New Delhi had close security ties with the Maldives for decades but a regime change in the island nation last year and its increasing bond with China, India’s main regional rival, have soured relations.

A clutch of agreements was signed with Beijing during Maldives President Mohammad Muizzu's first overseas visit, to China, in January.

The Maldivian Defence Ministry this week said China would provide it with “military assistance” under a new agreement, which fosters “stronger bilateral ties".

The 75 Indian military personnel are deployed in the Maldives to maintain and operate an aircraft, which is on hand in the vulnerable low-lying islands for emergency evacuation purposes.

Indian troops stand to attention during the opening of INS Jatayu, the new naval base on Minicoy, in the Lakshadweep archipelago. AP
Indian troops stand to attention during the opening of INS Jatayu, the new naval base on Minicoy, in the Lakshadweep archipelago. AP

Experts say the launching of the naval asset is part of New Delhi’s long-term plan to secure its economic and geopolitical interests, as well as to strengthen its military presence in the region.

The Arabian Sea is part of the Indian Ocean region that comprises about 20 per cent of the world's ocean area and connects the shores of three continents.

About 40 per cent of the world’s offshore oil production takes place in the Indian Ocean basin and approximately 80 per cent of the world’s maritime oil trade passes through, the US think tank Hudson Institute estimates.

“We import $180 billion worth of energy and if we are growing at 6 to 7 per cent growth rate, then we need to import more energy and much of this is next door – West Asia,” Prof Kondapalli said. "The Indian Ocean becomes crucial."

New Delhi is also wary of Beijing's growing infrastructure and military assets across several countries that strategically surround India – from the Himalayas to the Indian Ocean.

China has a major say in Hambantota Port in Sri Lanka, the commercial activities of which were handed over to Beijing in 2017 on a 99-year lease after Colombo failed to pay off mounting debts.

Beijing has recently invested billions of dollars in infrastructure projects in Pakistan, including in the key deep-sea port of Gwadar, as well as in the Maldives, Myanmar, Bangladesh and Nepal.

New Delhi has been increasing military spending since Prime Minister Narendra Modi came to power in 2014 and has built naval bases in the Bay of Bengal.

“The Chinese have the intention to counter India because it has become the largest trading partner for all the Indian Ocean states," Prof Kondapalli said. “India's assessment is that China is becoming a major power centre in the Indian Ocean. The Indian Navy thinks China is going to be a long-term challenge.”

The emergence of piracy and maritime terrorism along with the presence of Pakistan, India’s arch-rival, in the Arabian Sea is another perceived threat in the region for Mr Modi's government.

While India is not a member of the US-led Operation Prosperity Guardian to counter Houthi attacks in the Red Sea, its navy has responded to an increase in attempted hijacking attacks launched by pirates and the Iran-backed Yemeni militants.

“[The] Arabian Sea is crucial because of the Pakistan factors, because of the Houthis and the Persian Gulf region," Prof Kondapalli said. "The Arabian Sea is a link to the Red Sea, the Persian Gulf and the passageway into the Indian Ocean."

In the event of any escalation between the US and Iran, he said Tehran would have a plan to block any traffic in the Arabian Sea.

“We have not seen the US-Iran conflict emerging in any coherent manner yet,” he said. "That is a contingency the Iranians have to blockade the Persian Gulf, because $120 billion of oil passes through Persian Gulf. They would like to inflict damage in this area."

THE SPECS

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The Limehouse Golem
Director: Juan Carlos Medina
Cast: Olivia Cooke, Bill Nighy, Douglas Booth
Three stars

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Destroyer

Director: Karyn Kusama

Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan

Rating: 3/5 

UAE release: January 31 

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

Bundesliga fixtures

Saturday, May 16 (kick-offs UAE time)

Borussia Dortmund v Schalke (4.30pm) 

RB Leipzig v Freiburg (4.30pm) 

Hoffenheim v Hertha Berlin (4.30pm) 

Fortuna Dusseldorf v Paderborn  (4.30pm) 

Augsburg v Wolfsburg (4.30pm) 

Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)

Sunday, May 17

Cologne v Mainz (4.30pm),

Union Berlin v Bayern Munich (7pm)

Monday, May 18

Werder Bremen v Bayer Leverkusen (9.30pm)

UAE currency: the story behind the money in your pockets
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  • Max Dowman (Arsenal)
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  • Matthew Briggs (Fulham)
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Who is Ramon Tribulietx?

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The seven points are:

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Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

The most expensive investment mistake you will ever make

When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.

“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.

This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).

Age

$250 a month

$500 a month

$1,000 a month

25

$640,829

$1,281,657

$2,563,315

35

$303,219

$606,439

$1,212,877

45

$131,596

$263,191

$526,382

55

$44,351

$88,702

$177,403

 

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek independent legal advice. 

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Started: 2016

Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel 

Based: Ramallah, Palestine

Sector: Technology, Security

# of staff: 13

Investment: $745,000

Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors

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Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

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Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

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Key recommendations
  • Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
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Number of tracks: 10

Rating: 3/5

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Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

Countries offering golden visas

UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.

Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.

Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.

Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.

Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence. 

if you go

The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow. 
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes). 

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

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Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

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Price: expected to start at Dh1,432,000

Updated: March 08, 2024, 8:55 AM