People from the Kuki community protest in Mumbai on Saturday against the violence in Manipur. Hindustan Times
People from the Kuki community protest in Mumbai on Saturday against the violence in Manipur. Hindustan Times
People from the Kuki community protest in Mumbai on Saturday against the violence in Manipur. Hindustan Times
People from the Kuki community protest in Mumbai on Saturday against the violence in Manipur. Hindustan Times

Insurgents kill two with grenade-laden drones in India's Manipur


Taniya Dutta
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Insurgents attacked government forces using drones loaded with rocket-propelled grenades in the Indian state of Manipur, police said on Monday, in an upsurge of ethnic violence that left two people dead.

The latest attack took place in the district of Imphal West on Sunday, police said, alleging that Kuki militants carried out the assault on security forces. The police called it a “significant escalation”.

There has been a spate of violence in Manipur since May last year when Meitei Hindus and Christian Kukis clashed over a proposed government policy that would have benefited the majority Hindu community. More than 200 people have been killed on both sides, with about 50,000 displaced within the borders of what has become a volatile state.

“In an unprecedented attack in Koutruk, Imphal West, alleged Kuki militants have deployed numerous RPGs [rocket-propelled grenades] using high-tech drones,” the police said in a statement. “While drone bombs have commonly been used in general warfare, this recent deployment of drones to deploy explosives against security forces and civilians is a significant escalation. The involvement of highly trained professionals, possibly with technical expertise and support, cannot be ruled out.”

Police said a 31-year-old woman was hit by bullets and succumbed to her injuries, while her eight-year-old daughter sustained injuries to her arms. Six people were injured in total. Several houses were reportedly damaged due to heavy shelling by the militants.

Conflict has returned to the northeastern state after a period of relative calm since April when two paramilitary soldiers were killed. Manipur, which borders Myanmar, has a population of 3.2 million across about 34 ethnic groups. Meiteis form the majority at 53 per cent, while the other major groups include Kukis and Nagas.

About 40 per cent of the population are from tribes such as the Kukis, who have traditionally inhabited the hilly areas that make up 90 per cent of the land. The Meiteis dominate valley areas that make up 10 per cent of the land but are highly fertile. They have historically held political and economic power, which serves as another trigger point for the Kukis in the community.

Security personnel fire tear gas at protesters near the family home of the Chief Minister of Manipur. AFP
Security personnel fire tear gas at protesters near the family home of the Chief Minister of Manipur. AFP

In April last year, Manipur High Court directed the ruling Bharatiya Janata Party to send its recommendations to the federal government for declaring the Meiteis a tribe. This was opposed by the Kukis because, if granted, the status would have allowed the Meiteis to settle in the hills – on protected land.

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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.”

Updated: September 02, 2024, 11:38 AM