Indian Defence Review

Before deciding to order any equipment and technology from the West, an important question considered by us is: What are the chances of the Western Governments suspending the supply of spare parts in future to exercise political pressure on India?

While security is and ought to be an important consideration in the case of telecommunication equipment, serviceability of the equipment and assured future supplies of spare parts should be equally important considerations in sectors relating to key segments of our economy such as power production. The Pakistan Railways developed an unhealthy dependence on Chinese equipment and it is now threatened with serious dislocation despite the excellent state-to-state relations between the two countries.

We have been developing a dependence on the Chinese for our thermal power stations because the Chinese power equipment like their telecommunication equipment is much cheaper as compared to Western and Japanese equipment and the Chinese have a reputation of completing their projects in time. Other important considerations such as the quality and serviceability of the equipment and the guarantee of future supplies of spare parts are not given the attention they deserve.

Before deciding to order any equipment and technology from the West, an important question considered by us is: What are the chances of the Western Governments suspending the supply of spare parts in future to exercise political pressure on India? The US had not hesitated to use this weapon on some occasions in the past. If tomorrow there is a military conflict between India and Pakistan and the Chinese authorities, to help out Pakistan, suspend the supply of spare parts for our power projects set up with their assistance, what will happen to our power production and the economy as a whole?

Are such questions carefully considered before allowing the procurement of Chinese equipment and technology? One has the impression that in our keenness to improve bilateral trade with China, which is racing towards the annual target of US $ 60 billion with China being the main beneficiary with a big trade surplus in its favour, we are not paying attention to important questions such as what I have explained above. Let us by all means allow a free hand in India to Chinese manufacturers of consumer goods, but in respect of other goods of a sensitive nature which could affect our national security or future economic stability, we have to be more careful.

Since India and China will continue to be potential adversaries so long as the border dispute is not settled, the argument that we should treat the Chinese companies in the same way we treat the Western companies does not hold good. Security and guarantee of future supplies should be important considerations in the case of Western companies too, but certain risks which we can afford to take in the case of Western companies, we cannot in the case of Chinese companies.