Another great post from Jody. This story puts a little more light on to a subject we briefly covered here and here. India is massive, and if Mumbai is India’s 9/11, then it totally makes sense that the security industry growth would match the U.S. growth after our tragedy.
Now one of the thoughts I had, is if the arms race between Pakistan and India will come to be reflected in a sort of PMC and PSC race? I mean Pakistan seems to have a huge problem with PMC’s and PSC’s right now, but what happens when they start figuring out that their sworn enemy is actually embracing them and has a thriving security market to prove it? Will there come a point where Pakistan actually looks at the Blackwaters and Dyncorps and thinks, hmmm, maybe we should have a couple of those? And on a broader question, will countries start looking at their local PMC’s and PSC’s as tools of national security? Are we the new tank or jet fighter in the defense industry? Interesting thought, and I would like to know what you think. –Matt
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India’s Private Security Metamorphosis
27 Nov 2009
India’s newest private security personnel are rapidly transforming from static security guards to anti-terrorism forces, Jody Ray Bennett writes for ISN Security Watch.
By Jody Ray Bennett for ISN Security Watch
Thousands of young men throughout India begin each day in blue uniforms that closely resemble that of official police officers, and often armed with little more than batons and radios, they patrol, survey, search and check guests and clients of some of the largest multinational firms in the country.
These young men are escorting VIPs, checking luggage and bags with bomb-sniffing canines, surveying landscapes with binoculars and night-vision goggles and even using hi-tech electronic equipment to scan for cyberinvasions and other network threats for a multitude of private clients.
The company they work for is busy assessing security risks for elite multinationals doing business in India while providing them with personal, private security. In the event of an emergency, the company claims it will deploy a “quick response team” dispatched through a 24-hour manned security control room.
In an increased blurring of the lines between security guard services and the private security personnel of companies that often raise eyebrows in western media, several Indian firms are preparing to earn their spot in the global private security industry.
Meet TerraForce Security Services, India’s newest private security company. Set apart from many of the other private security firms throughout India, TerraForce was recently formed by Indian billionaire Kushal Pal Singh to protect the assets of DLF Group, India’s largest real estate company. DLF states that it is by far the “largest” in terms of “revenues, earnings, market capitalization and developable areas in India,” so it is hardly difficult to identify the company’s vested interest in protecting its businesses, projects and assets in a country that even the US Department of State has said is “ranked among the world’s most terrorism-afflicted countries.”
According to the New York Times, TerraForce is hiring “as many experts as it can,” some of which include “former National Security Guards, the black-clad commandos who reclaimed the Mumbai hotels” in the aftermath of the 2008 Mumbai attacks, and in a statement from TerraForce president and chief executive Harsh Wardhan, the company is “importing instructors from the Israeli army and the United States Marine Corps.”
Anti-terrorism is big business
Much like the private security industry boom that was experienced throughout North America and Europe in the aftermath of 9/11, India also experienced a rapid increase in demand for security in the period following the Mumbai attacks.
According to India’s Central Association of Private Security Industry (CAPSI), as of June 2009 India’s private security industry had grown to “approximately 5.5 million security guards employed by about 15,000 security companies [and] as an industry, is now the country’s largest corporate taxpayer.”
The emergence of companies like TerraForce represents India’s ability to quickly create private forces to respond to perceived gaps in its national security. However, India’s private security industry is rather unique to the degree that it was once made up of mostly unarmed, static security guards that patrolled apartment buildings, hotels and other businesses and are now transforming into armed, anti-terrorism units.
“India’s [private military and security] market has gotten very interesting since the Mumbai attacks a year ago. What used to be a country guarded by loosely trained, ‘lathi’-equipped ‘chowkidars’ that guarded individual homes and apartment complexes is transforming to one attempting to address and mitigate sophisticated terrorism,” Shlok Vaidya, analyst and author of NaxliteRage.com, told ISN Security Watch.
“This has meant unprecedented growth as the market adapts to these new demands,” said Vaidya.
One report noted that “Even before the [Mumbai attack], the industry was experiencing an annual growth rate of 25 percent due primarily to the country’s infrastructure development [and CAPSI] now estimates an annual growth rate of 40 percent.”
Essential training
But even as the industry grows, some critics maintain that much of India’s private security companies are still unprepared to respond to threats such as terror attacks. Part of the reason could be the time it takes to prepare employees of these countries to adequately respond in the wake of a crisis. And in the industry’s rapid growth over the last year, private companies are recruiting India’s youth to begin careers that might quickly become India’s first line of defense against unconventional attacks.
In March 2009, Homeland Security Newswire reported that these young men who were “recruited at random […] from India’s small farming communities and thrown a uniform,” must now “prove who they are, pass a medical exam, and show they can read and write and do elementary math, [and while] there are no rigorous investigations into a recruit’s background or character, security firms argue [for] mandatory training courses [to] help weed out the weak and corrupt from the applicants.”
This ultimately resulted in the state’s Anti Terrorist Squad (ATS) training many of those new applicants to “to combat terror strikes.” According to a recent report by the Times of India, a senior official with the ATS stated that the employees it had trained would be “allowed at multiplexes, cinema halls, banks and other prominent private establishments” and that it’s training program would “definitely enable them [private security personnel] to assist police in tackling terror.” CAPSI is now scrambling to help modernize and legitimize the development of the industry.
“Smaller companies with less funding are finding out the most useful role they can play in guarding social infrastructure (malls, movie theaters and banks) is to act as a highly trained information sensor for more heavily armed and better trained central police forces or special ops. Instead of chasing big weapons, small outfits are looking for secure, strong radio systems to report crimes or real time terror info. This is what they train on,” Vaidya told ISN Security Watch.
In many of the western private military and security companies, employees typically have previous police or military experience, which is almost always a requirement. In India, however, the dynamic has shifted in which young men can circumvent state police or military enlistment and go straight to private companies, which are in turn trained by state forces.
According to one source, India’s private security personnel begin making approximately 4,000 rupees, or $82 per month, meaning that “the typical security guard starting out in India will make approximately $984 in a country with a per capita income of $2,900 a year.” Some private security companies are even training Indians for employment as armed guards in western countries.
For now, India’s private security market is still in a developmental stage. If certain market forces remain intact, India’s private security industry could soon become the state’s first private line of defense against various security threats.
“The goal of the PMC market in India isn’t to supplant governance, but rather to enable it. While these [private security personnel] aren’t the heavily armed, highly-trained western PMCs, they are mission-critical information nodes. They join the variety of other private forces such as land owner militias, insurgencies and the underworld that, combined with the central government infrastructure, act as a government and enable life in India today,” Vaidya said.
Jody Ray Bennett is a freelance writer and academic researcher. His areas of analysis include the private military and security industry, the materialization of non-state forces and the transformation of modern warfare
Story here.