InsightsintoIssues:BREXITandItsImpact

BREXIT
BrexitisatermusedtodefineUnitedKingdomcomingoutofEU.Recentlyinareferendumconductedin
UnitedKingdom,UKvotedbyanarrowmargininfavourofBrexit.Negotiationsareundergoingcurrently
betweenUnitedKingdomandEuropeanParliamenttonegotiatethetermsoftheexitdeal.

AboutEU
EuropeanUnionorEUisanexperimenttotransformthe
relationsbetweennationsbasedonfunctionalistideology.
Itenvisagestotransformtherelationsbetweennationsby
enmeshingthemineconomic,social,cultural,political
partnership.EUiscurrentlyablockof28countriesand19
countrieshaveformedEurozone.
FormationofEuropeanUnionisanoutcomeofSingleEuropeanAct,1991.
MashtrichtTreatyconvertedtheEUintoamonetaryunion.
LisbonTreatystrengthenedpolitical,foreignaffairsandsecurityintegrationofpoliciesofcountriesof
EuropeanUnion

ConstitutionalProvisionofBrexit:
LisbonTreaty(Article50)providesforexitofmembercountriesfromEuropeanUnion.Foranycountry
tocomeoutofEuropeanUnion,ithastonegotiateadealwithEU.Thedealwillprovideforasettlement
betweenEUandUK

OpinionofPoliticalGroups
UKIndependenceParty,undertheleadershipofNigelFarrageledtheLeavecampaignofUK
LabourParty,undertheleadershipofJeremyCorbynledtheStaycampaignofUK
DavidCameron,exPMofUKagreedtoholdareferendumonUniktedKingdomsfutureinEU.
ConservativeswereinfavourofstayinginEU

WhytheclamourforBrexit

EconomicreasonsTheprimarycontentionwasthateconomically,Britainlosesmorethanwhat
itgains.
1.Thefirstissuebeingthatofmembershipfeespaidabout340poundsperyearperhousehold
2.Secondly,itwassaidthatEUspoliciesweretooprotectionistanddidnotfavourcompetitiveness
totheextentthatwouldbebeneficialfortheBritisheconomy
3.PosttheSovereignDebtCrisis,EUintroducedFiscalCompactandtightercontrolonnational
budgets.Britainwasnotcomfortablewiththeseideas
4.Germanysproposaltoimposetaxesonfinancialtransactions(TobinTax)alsodidnotfind
favourwithLondon,whichisanimportantfinancialhub
Immigrationissues
1.HalfofBritishlegalmigrantscomefromEU.Thereisthisfeelingthattheyhaveanegative
impactonUKbornworkers.Addingcredencetolocalfearswasthefactthatsince1997,3/4thof
jobscreatedaretakenupbyEUimmigrants
2.EUsobligationonitsmemberstoaccommodatemorerefugeesalsodidnotfindfavourwithUK.
EspeciallyatatimewhentherefugeeinfluxinEuropeisatanalltimehighinlightofmultiple
crisisinMiddleEastandAfrica
3.Thereisalsothisperceptionthatimmigrantsposeathreattonationalsecurity
SovereigntyIssue
1.EUisatransformativeideainmanysenses.Oneofthethingsthatitleadstoistheweakeningof
nationalsovereignty.EUhasbeenpushingforcreationofanEverCloserUnionwhichwould
accordgreaterdecisionmakingpowerstoEuropeanParliament,while,limitingtheauthorityof
BritishParliament.

ImpactofBrexit:
OnUK
Economic
1.EUisalargemarket.45%ofBritishexportsaredirectedtowardsEU.EUisthelargestmarketfor
UKsexportsandoneofthemajorsourcesofUKsimports.ExceptGermanyandSweden,UKhasa
positiveBalanceofTradewithallothercountriesofEU.PostBrexit,accesstoEUmarketswould
sufferforUK
2.Britainhasemergedasamajorfinancialhub.PostBrexit,thefinancial/servicessectorinUKwould
takeahit.WehavealreadyseentheLondonExchangesoaringdownpostBrexit
3.ImmigrantstoEUarebettereducatedandskilledandoffsetthedemograpaphicdisadvantage.That
advantagewillbelostforUK
Geopolitical
1.ItraisesquestionsoverthefutureofScotlandandNorthernIreland.TheirdesiretostayinUkwas
preconditionedonUKremainingapartofEU.TheScotshavealreadystarteddemandingfora
referendumonScotlandsfututeinUK.EveninNorthenIrelandviolenceeruptedposttheBrexitvote

2.Inaninterconnectedworld,beingapartofmultilateralorganizationsiskeytoinfluencepolicy
matters.Nocountrycandoitaloneinarapidlychanginginternationalenvironment.SimilarlyUK
wouldlosesomeofitsleveragenowthatithasvotedforBrexit.Pursuitofsovereigntyinpuristterms
inaninterconnectedworldisautopianidea
OnEU
1.TheideaofEUstandschallenged.EUwhoseoriginliedinthecenturiesofwarthatravagedEurope
wasatransformativeideaininternationalrelations,enmeshingcountriesincooperation.Withthe
exitofUK,thereisapossibilityofothercountriessuchasGreeceetctofollowsuit.Thustheideaof
EUstandschallenged
2.EUiscurrentlyundermultiplecrisisemanatingfromfinancialslowdown,Russianchallenge,security
concerns.EUandBritainseparatelywouldnotbeabletohandlearesurgentRussia.Similarlytodeal
withthesecuritythreatsinEuroperequirescountriestoactinconcertandnotindependently
OnIndia
Cons
1.TheimmediateimpactofBrexitisanincreaseinriskaversionwhenitcomestoinvesting,especially
inlightofthepossibilityofothercountriesfollowingsuit.ThiswillaffecttheFPIoutflowsfrom
foreignportfolioinvestors.
2.Rupeemaydepreciatebecauseofthedoubleeffectofforeignfundoutflowanddollarrise
3.IANSreportsaysthatBritainranks12thintermsofIndiasbilateraltradewithindividualcountries.It
isalsoamong7intop25countrieswithwhichIndiaenjoysatradesurplus.IndiainvestsmoreinUK
thantherestofEuropecombined,emergingasthe3rdlargestFDIinvestor.AccesstoEuropean
markets,therefore,isakeydriverforIndiancompaniessettingshopinUK.BritaincomingoutofEU
islikelytoaffectthebusinessprospectsofthesecompanies.
4.NasscominarecentreportheldthatITandITeSindustryofIndiawillhaveanegativeimpactof
closeto$108bn.Theimpactcanbeseeninmediumterm(23years)
Pros
1.Whileonthepositiveside,BrexithasdrivenawayfearsofaUSFedratehikeandcouldleadtolower
commodityprices
2.Brexithasbecomeanewworryforcommodityproducers,comingontopofconcernsaboutChinas
slowingeconomicgrowth.Ifnewsflowsfromboththesesourcescontinuetocloudtheoutlookfor
commodities,thenpricesmayturnweak.Brexitsimpactwillthenbeafatefuloneforcommodity
producersandproducingnations
3.DevaluationofrupeemightenhanceIndiasexportcompetitiveness

InsightsintoIssues:GoodsandServicesTax
insightsonindia.com/2016/08/15/insightsissuesgoodsservicestax/

INSIGHTS

15/08/2016

InsightsintoIssues:GoodsandServicesTax
GoodsandServicesTax
Introduction
GSTencapsulatesthedictumOnenation,oneindirecttax.ItwillmakeIndiaoneunifiedcommonmarket.
GSTwasfirstmootedintheyear2003byKelkarTaskForceonindirecttaxes,whohadsuggestedsubsuming
variouscentralandstateindirecttaxesintooneindirecttax.Toimplementthisvision,anEmpoweredCommittee
ofStateFinanceMinisterswascreatedandtaskedwiththeresponsibiltyofironingoutthedifferencesandtaking
thismonumentalreformforward.
FeaturesofGST
Singletaxonsupplyofgoodsandservices,rightfromthemanufacturertotheconsumer
Itisadestinationbasedtaxunlikethepresenttaxationschemewhichisoriginbased
Itisavaluebasedtaxascreditsofinputtaxespaidateachstagewillbeavailableinthesubsequent
stages
ThefinalconsumerwillbearonlytheGSTchargedbythelastdealerinthesupplychain
Atthecentrallevel,followingtaxesarebeingsubsumedunderGST
1.CentralExciseDuty
2.AdditionalExciseDuty
3.ServiceTax
4.CountervailingDuty
5.SpecialAdditionalDutyofCustoms
Atthestatelevel,followingtaxesarebeingsubsumedunderGST
1.StateVAT/SalesTax
2.EntertainmentTax
3.CentralSalesTax
4.OctroiandEntryTax
5.PurchaseTax
6.LuxuryTax
7.Taxesonlottery,bettingandgambling
AdministrationofGST
1.SincethereisafederalstructureinIndia,therearetwocomponentsofGSTCentralGSTand
StateGST
2.BothCGSTandSGSTwillbesimultaneouslyleviedacrossthevaluechain,bothongoodsand
services

3.Thetaxwillnotbeleviedonexemptedgoods(alcohol,petroleumanditsproducts)andthose
transactionswhicharebelowtheprescribedthresholdlimits
4.InputtaxcreditofCGSTwillbeavailablefordischargingliablityonCGSTitself.SimilarlyforSGST.
ThusnocrossutilizationofcreditwouldbepermittedexceptincaseofIGST
5.IGSTwouldcomeintopicturewhenthereisaninterstatetransferofgoodsandservices(u/a
269A(1)).IGSTratewouldberoughlyequaltothesumofCGSTandSGST.Followingdiagram
explainstheworkingofIGST

6.ForimplementationofGSTinthecountry,CentralandStategovernmentshaveregisteredGoods
andServicesTaxNetwork(GSTN)whichisanotforprofit,nongovernmentcompanytoprovide
sharedITinfrastructuretocentralandstategovernment,taxpayersandotherstakeholders.The
taxpaymentsandcreditwillbedonethroughanonlinenetwork.
7.TaxationonImportsCVDandSADonimportstobesubsumedunderGST.Thestateswhere
goodsareimportedwillgaintheirsharefromtheIGSTpaidonimportedgoods

Featuresof122ndConstitutionalAmendmentBill
ConferredsimultaneouspoweruponParliamentandStateLegislaturetomakelawsgoverningGST
SubsumingCentralandStatetaxesunderGSTasdescribedabove
LevyofIGSToninterstatetransactionsofgoodsandservices
GSTonallgoodsandservicesexceptalcoholicliquor.Petroleumandpetroleumproductsshallbe
subjectedtothelevyofGSTonalaterdateasdecidedbytheGSTCouncil.
GSTCouncil,aconstitutionalbody,createdwith2/3rdrepresentationfromstatesand1/3rdfromcentreto
examineissuesrelatedtoGSTandMakerecommendationonrates,taxes,cesses,surcharges,
exemptionlist,disputeresolutionetc.AlldecisionsinGSTCounciltobetakenby3/4thItwillfunctionunder
thechairmnanshipofUnionFinanceMinister
Compensationtostatesfortheentireamountofrevenuelossesfor5years
Benefits

ForBusinessandIndustry
1.Easycomplianceasonetaxtobepaid
2.CreationofonemarketwhichwillfacilitateEaseofDoingBusinessiinIndia
3.Removalofcascadingtaxeswhichwilllowerprice,therebyboostingdemand,ashotinthearmfor
thebeleaguredcorporatesector
4.Improvecompetitivenessasthetransactioncostfordoingbusinesswouldreduce.Also,nowthe
mostcompetitivegoodwillsellacrossthecountryirrespectiveofthelocationwhereitis
manufactured.
5.AlltheaboveadvantagesareexpectedtoprovideaboosttotheambitiousMakeinIndia
programmeofthegovernment
ForConsumers
1.Nocascadingburdenoftaxeswhichwouldmoderateinflation
2.Moretransparencyintaxationregimeandeasiertounderstandforthecustomers
Forgovernment
1.Thenewtaxationregimewillbeeasiertoadminsiterforthegovernment
1.Theinputtaxcreditsystemcreatesamechanismforselfpolicing
2.Dualmonitoringbycentreandstateswillleadtotaxcompetitionandcooperationbetween
centreandstates.Ontheflipside,corporatesfeartwosourcesofinterfacewithtax
department
2.Bettercontrolonleakagesduetolesserevasion
3.Higherrevenueefficiency
1.Moremoneytospendonwelfareexpenditure
2.Since,GSTisadestinationbasedtax,poorerstateswhichhavelowlevelofmanufacturing
andservicesindustryareexpectedtobenefit

GSTanditsimpactonFiscalFederalism
TheConstitutionalprovisionswithrespecttoFiscalFederalismhastwomajorimbalances
1.VerticalImbalanceThemismatchbetweenexpenditureandrevenuerequirements.Thecentre
possessedmorerevenuebutlessexpenditurewhereastheviceversaistrueforstates
2.HorizontalImbalanceThereisdisparityinrevenueaccruedbythestates
Sofar,statesalsohadautonomyindecidingtaxratesforthoseitemsfallinginthestatelist,aswellasdeciding
VATrates.
WiththeadventofGST,followingissueislikelytocropupinFiscalFederalism
Stateswilllosetheirautonomyindecidingtaxationratesbasedontheirexpenditureplan.InGSTregime,
rateswillbedecidedbyGSTCouncil.However,aspertheGSTBill,theCouncilwillfixthefloorratealong
withbands.Thiswillleavesomeautonomyforthestatestotinkerwiththetaxratestosuitthemselves.
Thereisalsotheissueofstateshavingtheabilitytoimposesintaxongoodssuchasfastfood(donein
Keralarecently)

However,itistoberealizedthatGSTistheneedofthehour.MoreovertheIndianGSTregimeoffers
advantagesunliketheGSTregimeinotherlargefederalpolities,wherethesystemiseither
1.Toocentralized,whichdeprivessubfederallevelsoffiscalautonomy,suchasinAustralia,Germany,
Austria
2.Or,independentlyadministered,whichcreatestoomanydifferencesintaxbasesandratesthatmake
compliancedifficultandalsomakesinterstatetransactiondifficulttotax,suchasinSouthAfrica
TheIndiansytemhoweverestablishesamodicumofcoordinationlikeinCanada.Commonbaseandcommon
ratewillfacilitatetaxadministrationandensurecompliance.Reasonableexceptions,asdecidedbyGSTCouncil,
willprovideadegreeoffiscalautonomytothestates.
TheEmpoweredGroupofStateFinanceMinistersduringthecourseoftheirdiscussionhavekepttheinterestof
statesonboardandGSTCouncilhasemergedasakeyinstitutionofCentreStateRelations.Areformofthe
natureandmagnitudeofGSTwillrequirealeapoffaithtobetaken,asissuesarecertaintocropup,whichhas
toberesolvedeffectivelythroughtheaforementionedmechanism.
OtherIssueswithGST
DecidingaRevenueNeutralRateArevenueneutralrateisonewhichdoesnotleadtoafallintax
revenues.Itisalsotobeensuredthattheratesarenotfixedtoohighastoleadtoinflation.Inthereport
byArvindSubhramaniam,hehassuggestedcreating3bandswithaRNROF16%.
DecidingtheexemptionlimitbelowwhichtraderswillnotcomeunderGSTregime
ReadyingtheITinfrastructureforadministrationofGST
Devisinganeffectivemechanismtodealwithdualpolicingbycentreandstatetoadministerand
implementGST
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InsightsintoEditorial:Indiashouldbecomeworldsfirst
cashlesscountry
insightsonindia.com/2016/07/22/insightseditorialindiabecomeworldsfirstcashlesscountry/

INSIGHTS

23/07/2016

InsightsintoEditorial:Indiashouldbecomeworldsfirstcashlesscountry
21July2016
TaxevasionhasbeenahotbuttonpoliticalissueinIndiaforatleastadecade.Inabidtoevadetaxes,many
Indiansdeposittheirmoneyinillegaloffshoreaccounts.Inthisregard,aninvestigativeteamofretiredjudges
appointedbythegovernmenthandedinthefifthofitsreportsrecently.
Importantrecommendationmade:
Thereportwasfullofworthysuggestions.Whatgrabbedheadlines,though,wereitsrecommendationsthat
cashtransactionsofoverRs.3lakhbebannedandthatnobodyshouldbepermittedtoholdmorethan
Rs.15lakhincash.Thisisnothingbutacashlesseconomy.
Whatexactlyisacashlesseconomy?
Itcanbedefinedasasituationinwhichtheflowofcashwithinaneconomyisnonexistentandalltransactions
havetobethroughelectronicchannelssuchasdirectdebit,creditanddebitcards,electronicclearing,payment
systemssuchasImmediatePaymentService(IMPS),NationalElectronicFundsTransferandRealTimeGross
SettlementinIndia.
Benefitsofcashlesseconomy:
Increasedefficiencyinwelfareprogrammesasmoneyiswireddirectlyintotheaccountsofrecipients.
Efficiencygainsastransactioncostsacrosstheeconomyshouldalsocomedown.
Reducinguseofcashwouldalsostrangulatethegreyeconomy,preventmoneylaunderingandeven
increasetaxcompliance,whichwillultimatelybenefitthecustomersatlarge.
Usageofcashlessmechanismswouldalsoensurethatloopholesinpublicsystemsgetplugged,andthe
intendedbeneficiariesareabletoavailthebenefitsduetothem.
Barrierstocashlesstransactions:
Lackofaccesstobankingforalargepartofthepopulationaswellascashbeingtheonlymeans
availableformany.
Anoverwhelmingmajorityofretailers,suppliersandserviceprovidersbelongtotheunorganised,informal
sector.Theyhaveneithertheinfrastructuretooffercardbasedtransactionsnortheinclinationto
encourageconsumerstopaybycreditcardsordebitcards.
Theperceptionofconsumersalsosometimesactsabarrier.Thebenefitofcashlesstransactionsisnot
evidenttoeventhosewhohavecreditcards.Cash,ontheotherhand,isperceivedtobethefastestway
oftransactingfor82%ofcreditcardusers.Itisuniversallybelievedthathavingcashhelpsyounegotiate
better.
Mostcardandcashusersfearthattheywillbechargedmoreiftheyusecards.Further,nonusersof
creditcardsarenotawareofthebenefitsofcreditcards.
Howcanthesituationbeimproved?
ByeffectiveimplementationofinitiativeslikeJanDhanaccounts.

Byputtinginplacerobustpaymentsmechanismtosettledigitaltransactions.
Bygivingincentivessuchasaservicetaxwaiverwhencreditcardsorotherformsofdigitalsettlements
areused.
TheReserveBankofIndiatoowillhavetocometotermswithafewissues,fromfiguringoutwhatdigital
paymentsacrossbordersmeansforitscapitalcontrolstohowthenewmodesofpaymentaffectkey
monetaryvariablessuchasthevelocityofmoney.
RBIwillalsohavetoshedsomeofitsconservatism,partofwhichisbecauseithasoftenseenitselfasthe
protectorofbankinginterestsratherthanoverallfinancialdevelopment.
Theregulatorsalsoneedtokeepasharpeyeonanypotentialrestrictivepracticesthatbanksmayindulge
intomaintaintheircurrentdominanceoverthelucrativepaymentsbusiness.
Wayahead:
Whilethisideamightsoundextreme,somedevelopedcountriesalreadyhavesimilarlaws.Belgium,for
example,whichhasthehighestproportionofcashlesstransactionsintheworld93%,accordingtoMasterCard
hasbannedcashpaymentsofover3,000.AndinIndia,pressuretomoveawayfromcashhasbeenbuilding
amongpoliticiansandregulators.
Conclusion:
Ascashgetsusedforfewerandfewertransactions,itwillbecomeeasierforauthoritiestocrackdownontax
evasion.Thatswhythegovernmentshouldfocusmoreonenablingthistransitionthanondraconianandhard
toimplementlawsthatthreatentaxevaderswithyearsofhardlabour.Thebestwaytoeliminateblackmoneyis
togetridofthemoney.

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InsightsintoEditorial:NAVIC:Indiaseyeinthesky
insightsonindia.com/2016/08/17/insightseditorialnavicindiaseyesky/

INSIGHTS

17/08/2016

NAVIC(NavigationwithIndianConstellation),Indiasindigenousglobalnavigationsatellitesystem,isexpectedto
becomefullyoperationalfromthismonth.
WhatisNAVIC?
NAVICisanindependentregionalnavigationsatellitesystemdesignedtoprovidepositioninformationinthe
Indianregionand1500kmaroundtheIndianmainland.
Whatallservicesareprovided?

Source:http://www.weearthling.com/2016/04/indiabecomes5thnationtohaveits.html

IRNSSwouldprovidetwotypesofservices,namelyStandardPositioningServicesavailabletoallusersand
RestrictedServicesprovidedtoauthorisedusers.
Itsapplicationsinclude:
Terrestrial,AerialandMarineNavigation.

DisasterManagement.
Vehicletrackingandfleetmanagement.
Integrationwithmobilephones.
PreciseTiming.
MappingandGeodeticdatacapture.
Terrestrialnavigationaidforhikersandtravelers.
Visualandvoicenavigationfordrivers.
HowisIndiagoinginaglobalcontext?
Indiahasbeenmakinggreatprogressinspaceandresearchfields.IndianGPSwouldcertainlyboostcountrys
credentialsinthisfield.IndiabecomesonlythefifthentitytohaveaGPSsystemoftheirown.ApartfromIndia,
UShasGlobalPositioningSystem(GPS),RussiahasGlonass,EuropehasGalileoandChinahasBeiDouas
theirnavigationalsystems.NAVICwillreducethedependenciesontheothersystemsforthecountry.That
meansthateveninawarlikesituationtherewouldbenointerruptionoftheinformation.
HowmanysatellitesdoesNAVICconsistof?Whenweretheylaunched?
IRNSSisaregionalsystemandsoitsconstellationwillconsistofsevensatellites.Threeofthesewillbe
geostationaryovertheIndianOcean,i.e.,theywillappeartobestationaryintheskyovertheregion,andfour
willbegeosynchronousappearingatthesamepointintheskyatthesametimeeveryday.Thisconfiguration
ensureseachsatelliteisbeingtrackedbyatleastoneoffourteengroundstationsatanygivenpointoftime,with
ahighchanceofmostofthembeingvisiblefromanypointinIndia.IRNSSsatellitesarenumberedfrom1Ato
1G.
Whyitisnecessarytohaveindigenousglobalnavigationsystem?
Havingaglobalnavigationsystembolsterstheabilityofanationtoserveasanetsecurityprovider,especially
throughtheguaranteeofsuchassurancepolicies.Itcanalsoplayasignificantroleinreliefeffortspostdisasters
suchasthetsunamiintheIndianOceanregionin2004andthePakistanIndiaearthquakein2005.

Source:IndiaToday

PotentialapplicationsofNAVIC:
Throughlandareamapping,yieldmonitoringandprecisionplantingofcrops,NAVICallowsforthe
developmentofciviccapabilitiesinfoodandlivelihoodsecurity.
NAVICalsoarrivesasaninstrumentforenvironmentalandmeteorologicalmonitoring,aswellasclimate
research.Thesecapabilitiescanbeleveragedtodesignreliableandefficientresponsemechanismsfor

naturaldisasters,alleviatingthedevastationtheywreakthroughwellmanageddisasterrelief.
NAVICsinteroperabilitywithGPScanensuretheminimizationoftechnicalsnagswhenused
complementarilywithexistingGPSenabledsolutions.
ChiefbeneficiaryofNavicisthemilitary,whichnowhasaccesstoanencryptedandcompletelysecure
service.TheforceswillnolongerhavetodependontheUSservice,aweaknessthatwasexposedduring
theKargilconflictof1999,whenaccurateGPSdataontheregionwasnotforthcominginrealtime.
Navicwillofferpublicaccesstoanunsecuredserviceforcivilianapplicationslikelogistics,transportation,
vehicleautomation,robotics,disastermanagement,prospecting,thetrackingofvehicles,people,pets
andtheInternetofThings.ThiscouldtriggeraboominGPSapplicationstunedtoNavic.
Thiscouldalsoprovideanoccasionforhardwaremanufacturerstoturnprotectionistandurge
governmenttoforcemanufacturersofGPSproductstopatronisetheIndianservice.
Howthiswouldimprovebilateralrelations?
BuildingonIndiasofferingofassistancetoPakistanduringthefloodsinPakistanoccupiedKashmirandother
areasin2014,NAVICcouldestablishatraditionofregionalmonitoringwherebyIndialeveragesitstechnological
edgetosafeguardcitizensacrossthesubcontinent.SuchgesturescouldblunttheadversarialnatureofIndo
Pakistanrelationsinthelongrun,signallingtotheregionandtheglobealikethatIndiavalueshumansecurity
despiteprevailinggridlockinstrategicrelations.NAVICmightevengosomewaytomendandmelioraterelations
withaguardedIslamabad.
ChartingoutgrowthroutesforSouthAsianeconomies,SouthAsianAssociationforRegionalCooperation
(Saarc)governmentscanalsowelcomethelaunchofNAVICasanopeningshottoacceleratedinnovation.
NAVICshouldalsopropeltechnologicalinnovationsandspinoffsthatrenderSouthAsiaprogressivelyless
reliantontechnologicalimportsfromtheWestandelsewhere.
Conclusion:
Now,Indiashouldworktoshifttheregionalframeofmindfromdefencethinkingtosubcontinentalcooperation,
pushingbackagainstisolationistimpulsesthatstandinthewayofrealizingthecivilianandcommercialpromise
ofNAVIC.AnabilitytointegratespaceinfrastructureintotheIndianstateapparatushasfortunaterippleeffects
beyondIndianborders.Indedicatingitselftoexploringandactualizingthecivilianandcommercialpotentialof
NAVIC,Indiacansignaltoitsregionalpartnersthatitsriseisnotonlypassivelypeacefulbutalsodirectly
beneficialtothoseitcanliftupinitstide.

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