India's prime minister Narendra Modi on Sunday promised to save young people in Kashmir from a decades-long legacy of economic malaise and violence, as he made his first visit to the disputed region.
The visit followed New Delhi’s move to strip the region of semi-autonomy, which shocked international observers.
New Delhi annulled Jammu and Kashmir state’s semi-autonomous status and divided it into two federally administered territories in August 2019, claiming the move was to amend “historic mistakes” and quell an anti-India rebellion.
The prime minister addressed his first public event in Jammu’s frontier Samba district, in the village of Palli— India’s first carbon-free “solar village” — to mark the National Panchayati Raj Day – India’s village-level management system.
Large numbers of panchayat representatives and supporters of Mr Modi’s Bharatiya Janata Party gathered at the rally in the Hindu-majority border district with Pakistan.
“I want to tell the youth of Kashmir valley that the hardships your parents and grandparents had to live with, you will never have to live such a life,” Mr Modi said, in reference to the armed militancy in the Kashmir Valley.
The region has been wracked by a decades-long armed rebellion against New Delhi’s rule, particularly in the Muslim-dominated Himalayan Kashmir valley where anti-India sentiment runs high.
Mr Modi said the annulment of the autonomy had brought a windfall of changes in the region and opened investment opportunities, following a failure to create infrastructure in the last seven decades.
He announced many development initiatives worth 200 billion rupees ($US2.7 billion) and inaugurated multiple projects, including two hydropower initiatives, an all-weather tunnel and a plan to rejuvenate water bodies in the region.
Mr Modi said that the region was attracting investment worth billions of rupees in the past two years, including from the UAE
“I also had an opportunity to speak with a delegation from Abu Dhabi and Dubai and they are excited about [investments] in Jammu and Kashmir,” Mr Modi said.
Last month, a large delegation from the UAE visited the region and pledged to invest millions of dollars in road infrastructure, real estate and hospitality sectors.
New Delhi has been pushing to attract foreign and domestic investment to showcase a return to normality in the restive region that remains at the centre of a territorial dispute with its nuclear-armed arch-rival Pakistan.
The Kashmir region is ruled by India and Pakistan in parts, but claimed by both in its entirety since British colonisers left the subcontinent in 1947.
The two countries have fought three wars over the region and a three-decade-long armed insurgency has claimed the lives of tens of thousands of people.
New Delhi argues that Kashmir’s semi-autonomous status fuelled separatist sentiment and deprived the region of investment and development.
The erstwhile state had a separate constitution and the ability to vet federal laws before their imposition in the region, along with laws that barred Indians from permanently settling in Kashmir.
The shock decision was followed by a months-long security clampdown and internet shutdown in the region, triggering a diplomatic war between India and Pakistan.
Islamabad claims New Delhi violated United Nations resolutions which called for a plebiscite – a vote by the people of an entire country or district to decide on some issue in the region. It said the move was part of India’s “settler-colonial” agenda to change the demography of the Muslim-majority region.
Mr Modi’s government has claimed that New Delhi’s direct rule has helped them better tackle militancy, which it says is funded and supported by Islamabad.
But he completely omitted any mention of Pakistan during Sunday’s speech — a rarity for any Indian prime minister visiting the region.
Despite New Delhi’s claims, armed violence in the region remains high, including gunfights and attacks on government forces.
Police on Friday claimed to have killed two heavily armed militants in Jammu, just kilometres away from Sunday’s venue.
A spate of militant attacks on migrants from other Indian states and Hindu minorities have also seen a shap rise in recent months.
Mr Modi’s visit is significant as the region prepares for elections, four years after New Delhi imposed direct rule — a move short of revoking Kashmir’s partial autonomy.
His government has promised elections and claimed it has strengthened grass roots democracy in the region which remains under New Delhi’s direct rule since 2018.
A New Delhi appointed administrator runs the restive region with an iron-hand policy.
The local elections will be held after authorities complete the redrawing of electoral constituencies, a move regional political parties have criticised over claims that it is aimed at handing an advantage to Mr Modi’s BJP.
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At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan
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.”
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