India - U.S. relations: Opportunities for the law-enforcement sector

The US National Intelligence Council in its “Mapping the Global Future, 2005” notes, “The rise of China and India as global players is heralding an Asian Century in place of a receding American Century. In the same way that commentators refer to the 1900s as the 'American Century,' the 21st century may be seen as the time when Asia, led by China and India, comes into its own.

A combination of sustained high economic growth, expanding military capabilities, and large populations will be at the root of the expected rapid rise in economic and political power for both countries.”

The reintroduction of the Indian Economy into global trading following the reforms of the 1990s has been backed up by sustained growth of 6.9% overall and over 8% in manufacturing. With its economic size and favorable demographics India is poised to become central to global economic activity in the first half of this century. This has been achieved in a democratic framework, and with a well-established legal structure.

It’s not hard to see why the U.S. corporate sector sees India as a Big Emerging Market. With a population of over 1 billion, and a fast growing middle class, which is now over 300 million, India could provide a vast market for U.S. products.  Its large pool of technical manpower and abundant labor makes it an obvious partner for U.S. strengths in technology and organization. Since 1990 Indo-U.S. trade has increased over 400%, to over $21 billion annually.  Already, about half the U.S. Fortune 500 companies have a direct or indirect presence in India. Not only U.S. consumer products ranging from computers and automobiles, but service industries like insurance, telecom and banking are increasing their stake in the Indian market. At the same time, because of its growing computer industry, India is becoming an important partner with the United States in the fields of information technology such as e-commerce, software products and IT enabled services.

Law-enforcement co-operation

These recent developments provide tremendous opportunities for the law-enforcement community in U.S.

At the government level, recognition of the need for closer co-operation has already resulted in an Extradition Treaty, ratified by the U.S. Senate in September 1999.  The Mutual Legal Assistance Treaty which envisages greater direct cooperation between law enforcement in both countries has already been ratified by the U.S Senate and is awaiting ratification by India.

The Indo-U.S. Joint Working Group on Terrorism has been meeting regularly since February 2000 and had its sixth meeting in New Delhi in August-September 2004.  A Legal Attaché from the FBI has been functioning at the U.S. Embassy in New Delhi since September 2000.  There is closer co-operation on combating narcotics. Training opportunities sponsored by the State Department have increased.

These initial steps reflect a shared perception of the common threats faced by both India and the U.S. from global terrorists, and an acknowledgement that closer economic ties will spin-off more international crime that demands congruence in the law-enforcement response.

Law-enforcement Market

Increasing US corporate presence in India can be expected to generate a demand for law - enforcement professionals, who understand the needs and ways of working of U.S. - based companies, while being able to operate in the Indian system. Entities like the Motion Pictures Association of America (MPAA) have already established partnerships in India to combat video - piracy.  Motorola is an established presence in the fast-expanding market for law-enforcement communications. 

Like the U.S., India has a federal structure with each of the 29 states and 6 Union Territories managing its own police department. There are also a number of Central Police Organizations which perform functions similar to the Customs and Border Patrol and FBI in the U.S., all reporting to a Ministry of Home Affairs akin to the Department of Justice.

The Ministry of Finance has several enforcement agencies that lead the effort against narcotics and money laundering and Ministries of Civil Aviation and Railways have separate security agencies. There are no independent police systems at the county and local level, except in the major cities, which have Commissioners of Police. The larger metropolises such as Mumbai and Delhi have police forces of over 35,000 and 57,000 sworn officers respectively, headed by Commissioners of Police. The combined strength of all law-enforcement agencies in India is over 2 million. This constitutes a vast market for technology applications and products used by U.S. law-enforcement, and even for U.S. experience in organizational innovations. The rapid growth of private security agencies in India in recent years increases the size of this potential market, with many wealthy individuals and companies willing and able to pay for private security systems.

Some of the areas of such demands are:

• Software and hardware for integrating various law enforcement data superimposed on a GIS/GPS.
• Communications equipment, forensic facilities and Bullet resistant composites. Devices for intrusion-detection, x-ray screening and alarm systems.
• Range of non-lethal weapons, body-armor and explosive detection portals.
• Indoor shooting ranges that equip officers with tactical combat skills for Urban Warfare.
•  Executive and management courses in U.S. universities designed specifically for the law-enforcement professional.
• Traffic guidance systems that use modern technology to chanelize traffic in metropolitan clusters with very high vehicle density.
• Building management systems that incorporate security features from intrusion detection to fire alarm systems with climate control.

Caveats

U.S Investors and business persons interested in investing or doing business in India should bear in mind:

• India is a land of stark contrasts and can present wide variance in infrastructure and social services across the rural-urban divide.
• Variety and diversity of development levels is a prominent feature of modern India.  It is described as a sub-continent because of its great diversity; culturally, economically, and ethnically. States like Andhra Pradesh in the South are experimenting with cyber-government, and can claim to be on the cutting-edge of the IT revolution. Bangalore in the state of Karnataka is called the Silicon Valley of India. There are other states, where feudal or even tribal social structures are still dominant. Some states have embraced globalization as the only way towards faster growth. Others believe that opening the Indian market will expose local products to unfair competition. A healthy debate continues even at the national level, though most political parties accept that the process of economic reforms is irreversible. With such diversity, the response to U.S. law-enforcement products and services in different states will vary, and so will the way of doing business. Tailoring products and services to the local needs will provide the key to acceptance.
• Bureaucracy and the criminal justice system remain a legacy of the British colonial administrative structure. This impacts not only the response of the criminal justice system to modern-day challenges, but also the management framework of police agencies. Here also, there is considerable variation in the degree of change taking place in the different states and within different agencies of the federal government itself. Any initiative to market law-enforcement products or services would therefore need to factor in these differences and accept the processes endemic to bureaucratic decision - making.
• Costs will be an important factor in determining competitiveness of US products.
• Technology-levels demanded in India will be different. Law-enforcement in particular may not immediately need the state-of- art technology demanded by U.S. agencies. Since local agencies have more manpower at their disposal than the typical U.S agency, technological solutions will have to be tailored to factor in this resource.
• Strategic positioning is vital. This means treating the different police agencies and the different states as separate markets, instead of a single monolithic one.  Some U.S. law - enforcement products and services may find a common market all over India, but marketing strategies will need to consider the variance in requirements in different parts of India.

The Road Ahead

Some of the business directories on the web that may be useful are -

• http://www.allindiaclub.com/asps/Security-Protection-Directory.htm
• http://www.infobanc.com/indexp_cat31.htm
• http://www.expomarkets.com/indian_exporters/Security-Protection.html
• http://www.indianexporters.com    - Export Directory
• http://www.indiamart.com             - Export Directory
• http://www.kompass.com              - Export Directory

The US Department of Commerce (http://www.doc.gov) has set up a Trade Center in Washington DC (1-800-872-8723) which may provide useful information. There are also trade associations like the Washington-based Indo - U.S. Business Forum that have already taken initiatives to help U.S. business operate in India. States like Pennsylvania, Maryland and Virginia have been sending independent delegations to find out business prospects.

Mr. Francis Aranha
Counsellor, Embassy of India
Fax: (202) 462-7269