An Ode to 'PALTAN' : Dutta revisits the Indian Bravado which foiled the Chinese Intrusion at Nathu-La Border

China Border July 2018

Paltan, is the latest magnum of War Trilogy movies of JP Dutta after Border and LOC. It is based on the lesser-known skirmishes of 1967 between India and China. As expected, this JP Dutta film also exhibits High-Voltage patriotism. Even if we skip its decibels, the film portrays a real picture of the Indian Army when the odds were heavily stacked against them. it also presents the situation we would have confronted in wake of fall of Sikkim in 1967. 

J P Dutta's Paltan is inspired by Nathu La and Cho La skirmishes.Tensions were simmering between India and China in the aftermath of the 1962 war. India had also to face the wrath of a new war waged at its western border with Pakistan in 1965.

Meanwhile, Beijing was pressurizing New Delhi to vacate the strategically-important Nathu La pas on the Tibet-Sikkim border. China was irked over the fact that Sikkim was under India’s protection. China never accepted the McMohan Line drawn by British as the India China border and viewed Sikkim as an extension of southern Tibet which meant that Sikkim was an integral part of China.

Frustrated with the constant harassment by Chinese, India laid down a permanent fence dividing the Indian and Chinese border to stop the recurring clashes between forces of both countries over where exactly the border line is. the fencing on the Indian side rattles the Chinese as it could jeopardize the  plan of capturing Sikkim. With no other option in hand, the Chinese forces open fire and a war breaks out between the two countries.

What happens next forms the rest of the film.However, Major General Sagar Singh, of 17, Mountain Division refused to give up Nathu La. The fact that, he had the support of the then Eastern Army Commander Sam Manekshaw and Corps Commander Jagjit Singh Aurora, helped him.Maj. Gen. Sagat Singh appointed Lt. Col. Rai Singh Yadav as the in charge of Nathu La. Rai had undergone training in London and was well versed with Chinese tactics.

Diplomatic threats and border provocations eventually led to a face-off between Indian and Chinese army in September 1967. On September 11, a sudden blaze of Chinese artillery, mortar and recoil-less gunfire struck soldiers of the 70 Field Regiment and 18 Rajput as they were executing their task of setting up a wired fence demarcating the border from Nathu La to Sebu La, an observation post located on higher ground a kilometre away and offered a view of Chinese side.The fact that Chinese were firing from higher ground further complicated the matters as Indian soldiers were exposed on an open landscape.According to Defence records, around 70 Indian personnel lost their lives in the initial Chinese onslaught.

The Indian response took the Chinese by surprise. The precision of artillery struck enemy posts and inflicted serious toll on the Chinese army. Over 300 Chinese succumbed by the Indian onslaught. Chinese, having evil designs in backdrop, called for truce to which India obilzed.

Licking the salt of its wounds, China resorted to yet another assault within a fortnight. Point 15450 at Cho La, located a few kilometres north of Nathu La, had a contentious 30 metre high boulder right in the middle of the narrow pass. The 7/11 Gorkha regiment replaced the 10 JAK Rifles at Cho La, a day before things spiralled out of Chinese control.Four platoons drawn from two companies – one led by Second Lieutenant MS Samuel and the other by Lieutenant RS Rathore – took positions in and around Point 15450.

Amidst this situation,  7/11 GR Battalion CO Major KB Joshi, CO 7/1 Battalion, en route to Rai Gap, east of Point 15450 noticed Chinese troops encircling the sentry post where Naib Subedar Limbu was squaring off against the rival company commander and the political commissar. Major Joshi immediately reached out to Lt Rathore to inform him of what he had seen. Nevertheless, Chinese by then had escalated matters to the point of armed confrontation. 

Both sides engaged in close range firing. Lance commander Naik Krishna Bahadur led the charge, closely followed behind by Naib Subedar Limbu who took on the enemy in close combat battle. Both charged at the enemy with their Khukris once their ammunition ran out, but fell to machine gun fire. Lt Rathore engaged the Chinese despite being hit on his left arm. Major Joshi took charge of the shelling after his master gunner was incapacitated by enemy mortar. The counter offensive left the Chinese with no option but to beat a retreat. 

The enemy had concentrated its firepower on Tamze mortar position and at Rai Gap where the forward base was manned by the 10 JAK Rifles. Even though the JAK Rifles suffered major casualties they didn’t let their post fall in enemy hands. They were backed up by Medium Machine Gun fire from adjoining Point 15181. Also under attack were the posts at Cho La and south west of it, at Twin Huts.Aided by Recoil-less and Heavy Machine Gun fire, Indian troops not just prevented the Chinese from advancing but managed to pull back troops from Point 15450. The post was recaptured the following day after the Chinese were outflanked from three sides. Skirmishes continued for over ten days following which the Chinese army was forced to step back three km within their territory.

India settled an old score to an extent. The nation honored its new heroes, celebrated their bravado. In 1975, Sikkim not only ceased to be a protectorate, but also became an integral part of the Indian union. Nearly three decades later, China officially recognised Sikkim.

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Ongoing Rupee rout : Double whammy for Investors and NRI's

The relentless depreciation of Rupee against the US dollar could prove to be a double whammy for the Small investors and the Non-Resident Indians (NRIs).                                                                                                                                                          Government measures like scrapping of withholding tax on masala bonds, relaxation in overseas debt regime to name a few has failed to arrest the fall in the rupee. It is speculated that macroeconomic triggers and global cues will weaken the currency further.                                                                                                                                                      The government and the Reserve Bank of India (RBI), are bereft with ammunition to fortify  rupee to find its own level. Thus, volatility is expected to continue unabated with apprehensions of dipping to new lows.

The situation has arose on the account of the widening Current Account Deficit (CAD) triggered by the steep rise in crude oil price, trade war between the US and China, all external factors rather than internal, even though the Indian economy clocked a GDP growth of 8.2% in the past quarter.

New deposit scheme for foreign investors

Experts opine that the weakness in the rupee is having a bearing on the investment behaviour of the NRIs and their fund managers as their investment scopes are getting wider. They are waiting in the wings for the government to announce a new deposit scheme to increase foreign investment inflows to check the slump in rupee value.

Government is betting on a sizable flow from Foreign Portfolio Investors (FPIs), who already own securities worth $425bn in Indian equities. Out of this, NRIs have invested about $75bn through India-focused funds.

There were speculations that the FPIs would take an outward route following move on regulation for disclosure on ownership. But, Securities and Exchange Board of India (SEBI) intervened and allowed more time to arrest the exodus of capital.

P.K. Sajithkumar, Chief Executive of a Dubai-based financial service and advisory firm (IBMC), views it as an opportunity for FPIs to strengthen their portfolios, taking advantage of the Rupee rout. “FPIs who entered the market when exchange rate was hovering around Rs 67 per dollar or earlier, should remain invested. For new entrants, it will be an Golden opportunity to leverage the fall, which is expected to go deeper.”

The rupee slump against dollar has also a lot to offer for the retail investors in the Indian stock market. Mukund Cherrusserry, Director, TrendRiser Securities, was of the opinion that this is the time for cherry-picking in Indian stocks. Stock prices are expected to decline further on account of the economic woes of the country where inflation rate will spiral and interest rates will scale up with corporates facing the heat of increased cost of funds, he said.

Time for SIPs

Investment in the Indian market through systematic investment plans (SIPs) could also prove to be a masterstroke. A cash crunch is in the offing which would result in a bearish trend, offering a window to enter the market at lower levels benefiting the SIP investors.”

With the Indian economy under severe pressure on the trade and fiscal deficit fronts, the central bank will be left with no other option but to increase interest rates.

Banks would be forced to hike interest on NRE (non-resident external) and FCNR (foreign currency non repatriable) deposit rates. Returns from NRE and FCNR deposits are fully repatriable and FCNR account allows the depositor to keep his money in foreign currency itself, saving on the exchange cost.

The Indian Real Estate has another opportunity to cash in on the account of Rupee slide. The realty market outlook is rosy in view of the decline in property prices following the recent policy changes, implementation of GST (Goods and Services tax) and Demonetization. Prices are at attractive levels in most cities across the country and there has been resurgence in sentiment.