India-US economic relations

With China on mind, US envoy pitches for economic, military ties with India

January 13, 2018January 13, 2018 - by India Writes Network

Amidst shifting geopolitical equations in the Asia-Pacific region, US Ambassador to India Kenneth Juster has called for forging a robust strategic economic partnership with India and pitched for enhanced defence collaboration across the spectrum.In a defining speech on India-US relations, organised by Carnegie India and the US Embassy in New Delhi, Mr Juster projected the growing importance of India-US ties and the need to “build upon this foundation in a flexible but purposive manner”.The US ambassador’s big-picture presentation of India-US relations comes ahead of a likely meeting later this month between India’s Prime Minister Narendra Modi and US President Donald Trump on the sidelines of the World Economic Forum in the Swiss resort of Davos.
Economic ties through strategic lens
Proposing a Free Trade Agreement with India in future, the ambassador pointed out that India could be an alternative for US companies exiting China. He also assured that US President Trump’s call of “America first” and Indian Prime Minister Modi’s “Make in India” initiatives are not “incompatible” since mutually beneficial investment in each other’s markets increases the prospects of economic interaction and a robust trade leading to the technological collaboration and creation of jobs. While India-US trade has grown from $20 billion in 2001 to $115 billion in 2016, the trade deficit in favour of India stands at $30 billion and many US companies are unhappy with the protective barriers put in place by India.
“Increased heft in our economic relationship would necessarily provide a broader and deeper, long-term U.S. commitment to India and the Indo-Pacific region. This would complement our growing defence and counter-terrorism partnership, and moderate any policy differences that might arise along the way,” he said.

Obama in India: Nuclear deal on fast-track

January 21, 2015January 21, 2015 - by Manish Chand

The path-breaking India-US nuclear deal that transformed the two countries from estranged democracies to engaged democracies in the summer of 2005 is set to inch closer to fruition during the forthcoming visit of US President Barack Obama to India.
With barely days to go before Obama touches down in Delhi on a historic visit – the first time an American president will be coming in as the guest of honour at the country’s Republic Day celebrations – senior officials of both sides are locked into intense last-ditch negotiations to resolve festering issues related to India’s civil nuclear liability regime.
Technical quibbles aside, what has fuelled optimism about the implementation of the nuclear deal is the new energy and synergy in the India-US relations, which have been epitomised by President Obama accepting Mr Modi’s invitation to visit India within months of the latter’s visit to Washington in September last year. In this ambience of renewed optimism, the world’s oldest and largest democracies are expected to raise the bar for their overall engagement.

Indo-US détente: Beyond economics?

October 24, 2014October 24, 2014 - by India Writes Network

While India and the US might achieve breakthroughs in the economic realm, the story of geopolitics seems to be more challenging.
The most important aspect of the relationship is the American recognition that India’s success and transformation towards a more prosperous society is in America’s interest, and India’s emergence as a major and prosperous power requires a closer relationship with the US both in the security and economic realms. As Senator McCain states, “Ultimately, this strategic partnership is about India and the US placing a long-term bet on one another – a bet that each of us should be confident can offer a big return.” The countries might have divergent perspectives, but their visions and commitment to a liberal international world order, and a rising Asia that is stable with no single power exercising disproportionate influence, do not conflict. This should be the dominant idea taking the relationship forward, as it did during the civil nuclear agreement, after which this central story line got blurred.