On the 14th of July, a contingent comprised of more than 400 Indian troops, drawn from the Army, Navy and Air Force marched down from the Arc de Triomphe monument during the Bastille Day military parade on the Champs Elysees avenue in Paris. The event took place in the presence of Indian Prime Minister Manmohan Singh and French President Nicolas Sarkozy. It, undoubtedly, heralds a new chapter in Franco-Indian ties and the participation of Indian troops in the parade is indicative of a more profound trend which has been steadily growing over the past decade or so.

During the present world turmoil, the Australian government has announced an aggressive defence policy. The White Paper on defence titled ‘Defending Australia in the Asia Pacific Century: Force 2030’ envisages a considerable increase in its defence expenditure and a significant military acquisition programme for the Australian Defence Forces (ADF).

On 27 May 2009 Indian Air Force inducted one of the biggest state-of-art platforms in its fleet capable of giving advance warning of an aerial threat. The platform is also capable of gathering electronics and signals intelligence. This is India’s first Airborne Warning and Control Systems commonly known as AWACS. Two more such aerial platforms are on queue to be inducted by 2012.

For less than one million Bhutanese populations, the year 2008 ushered a new era of governance. The year witnessed the melting down a century old monarchy to a democratic constitutional monarchy. A parliamentary democratic government was formed in the nation based on the universal adult franchise. The Himalayan landlocked country drafted a constitution with provisions of 35 articles and 4 schedules, with prior objective to eradicate Bhutan’s backwardness and accelerate the development.

The India-Japan partnership is one of the important thrust areas of Japan’s new foreign policy. In the recent past, except Mori, Koizumi and Abe, other prime ministers have shown little enthusiasm for the improvement of relationship with India. However, that trend seems to be changing.

Among the several congratulatory letters received by Prime Minster Manmohan Singh on his reelection, the message from the French President Nicolas Sarkozy merits attention. While inviting Prime Minster Manmohan Singh to be the Chief Guest at the forthcoming ceremonies marking the National Day of France on July 14, Sarkozy has praised the Indian democratic system and alluded ‘ to the values of liberty, people's sovereignty and respect of diversity in secularism'.

The Indian Navy was recently briefed on the Aegis ballistic missile defence (BMD) system for ships. The US aerospace giant Lockheed Martin had discussions with Indian authorities and reports suggest that they are ‘open to collaboration’ with the Defence Research and Development Organization (DRDO) on integrating the Prithvi Air Defence Shield (PADS) with the Aegis system.

In spite of the seemingly difficult terrain in generating and implementing confidence-building measures in South Asia, all are not doom and gloom. It is thus plausible to make the following conclusions based on existing regional and sub-regional arrangements in South Asia.

India and Pakistan, as the two new de facto nuclear weapon states in the nuclear club since 1998, have embarked upon some meaningful nuclear risk reduction measures through a series of bilateral agreements.

Budgetary outlays for national defence need a careful autopsy for a general understanding, which has otherwise been kept out of a national debate. This apathy must change for the very simple reason that a subject which accounts for 14 percent of the total government expenditure and is not kept under planned category, needs to be examined properly. First, defence expenditure has witnessed only a modest hike this year.