The first India-US Strategic and
Commercial Dialogue, a brain child of the Modi-Obama meet at Delhi in 2015 concluded
just before Modi’s arrival in the US setting ground for an interaction between
leaders of both countries next week in New York. India-US Strategic Dialogue
has been in place since 2010, this year it was elevated to accommodate
commercial and economic aspects besides the issues of security and global
diplomacy. While the Strategic Dialogue earlier too included the economic
issues the new format is more on lines of China-US Strategic and Economic
Dialogue. But the extent of trade between the India and US is roughly one sixth
the size of US and China.
Indian delegation was headed by
foreign affairs minister Sushma Swaraj and included Minister of Commerce
Nirmala Sitharaman and Minister of Coal Piyush Goyal. American side was
represented by US foreign secretary John Kerry, Secretary for Commerce Penny
Pritzer and Secretary of Energy Ernst Moinz.
The event attended by nearly 400 business leaders from both countries
opened on a promising note with Joe Biden, Vice-President of US in his
inaugural address indicating that the US wants India to be its best friend (1).
He appealed that both democracies should collectively working towards climate
change and to rein in extremist forces.
While there has been a greater
understanding between the countries on strategic issues the economic front is
marred by lack of synergy. Days before beginning of the dialogue several US
senators expressed their concerns about section 3(d) of India Patent System
that curtails the practices of ever greening of a patent, restrictions in
market access, policy towards US agricultural products and crackdown on the
NGO’s. Further India’s report card on economic front issued by World Bank was
poor with ease of doing business (142nd), enforcement of contracts
(186) and resolving insolvency (136) among 189 countries. US has been quite critical
of bad statistics. But Indian delegation struck back with pragmatic statistics
that projected a rosy image of the economy. These include India topping the
innovative index among the low income group. Elsewhere a study of Morgan
Stanley group rated Indian private sector companies as the best in the World
(2). Further with the bursting of the stock market bubble in China, India is
projected to emerge as the best economy among BRICS. Besides a stable currency,
demographic dividend and a robust stock market make India one of best places
for investment (3).
A steadfast approach of Modi government
resulted in substantial improvement of Macro Economic indicators like GDP,
Consumer Price Index, reining on fiscal deficit, balance of payments, stock
index. Several Indian Economists are pragmatic at the pace of reforms and opine
that a clarity on deregulation, tax regime, dispute resolution will augur
foreign investment. India markets largely driven by domestic consumption and
thus a lucrative place for foreign investments.
Ministerial level dialogue between
the countries wrapped up in Washington on 24th ended with the
release of Joint Statement (4) which briefly elucidates the initiatives and
bilateral agreements reached and laid foundations for strengthening of long
term relation. Following the conclusion of the dialogue, Sushma Swaraj
reflected on six major takeaways. These included- steering high level dialogue,
nuclear cooperation, internet governance, combating terrorism, working towards
climate change and long term space cooperation (5).
Strategic interests significantly
outweighed the commercial aspects in the dialogue process. Both sides believed
that intense engagement can be fostered through facilitation of greater
interactions between bilateral institutions and people. The US welcomed Indian
proposal of conducting regional Pravasi Bharatiya Divas (PBD) at Los Angeles in
November 2015.
Strategic and Defense Issues
Significantly the two vibrant
democracies of the World envisaged the need to extend the arena of
collaboration in new areas and consistently work towards contribute towards
peace, security and prosperity under the Joint Strategic Vision for Asia-
Pacific and Indian Ocean Region. The US has been highly appreciative of India’s
efforts in evacuating its citizens from Yemen and resolved to protect civilians
during global crisis. Both countries have decided to train troops in identified
six African countries before they are recruited in the UN Peace Keeping Forces.
US has agreed to support India’s
membership into the Missile Technology Control Regime and NSG and into other
nuclear nonproliferation regimes. Further it was agreed that the bilateral
ministerial dialogue would also Japan and would eventually held along the sides
of UN General Assembly meetings and consequentially Japan will be part of the
2015 MALABAR naval exercise.
Interestingly both sides have agreed
on launching a new high level consultations led by Indian foreign secretary and
US deputy secretary for State. While India has proactively pushed through the
InterGovernmental Negotiations (IGN) on Security Council reforms on the eve of
the 70th Anniversary of the UN, the tepid response of the US
delegation has been a bone of contention. India’s bid for permanent seat in the
reformed UN Security Council India received a major boost with the US reaffirming
its support.
US appreciated India’s proposal to
launch SAARC satellite and both sides in an effort to scale up outer space
cooperation are exploring the possibility of renewing US-India Technology
Safeguards Agreement for 10 years to facilitate launch of US satellite
components on Indian Space vehicles. Currently both countries are sharing
technical data on Mars Orbiter Space Security Joint agreement launched in March
2015. The ambit of cooperation is now extended to areas like blue economy,
protection of Ocean ecosystem
In line with India’s aspirations of
forging ahead into the realm of internet governance, discussions are on to
include India in ICANN. A track 1.5 program is convened to further cooperation
on internet and cyber issues.
India and the US intend to steadily
step up cooperation between their defense industries through “Make in India”
program. A ten year Defense Frame
Agreement was formally signed by the US and Indian counterparts during Defense Secretary
Aston Carter’s visit to India in May 2015. In memory of the victims of the
26/11 and 9/11 both sides resolved to expand partnership in endorsing the Joint
Declaration on combating terrorism. Both sides pledged their commitment to
restore peace in Afghanistan through high level consultations and they
expressed support for the timely implementation of Joint Comprehensive Plan of
Action (JCPOA) evolved by P5+1 for Iran.
Climate and Clean Energy
In the run up the COP, Paris
Conference of Parties under the UN Framework Convention on Climate Change in
December both sides accentuated the need to work towards mitigating the global
climate change. India in a bid to curtail its emissions is keen on adopting
embracing clean energy initiatives and actively seeking technological
partnership. To foster scientific and academic cooperation in the field of
climate change and renewable energy US-India Partnership announced Fulbright
Climate Fellowship program. A MoU was signed to tackle wild life trafficking a
special mention was made of India’s anti-poaching efforts towards conservation
of Tigers.
Combatting Terrorism
The Joint statement on Strategic and
Defense cooperation emphatically pondered on enhancing and extending the
purview of cooperation to new areas to intensify engagement, a categorical
Joint statement on combatting terrorism is the hall mark of this entire
dialogue process (6). Sushma Swaraj vehemently reiterated the threat posed by
Al-Qaeda, its affiliates, Lashkar –e-Tayyaba, D-company, Haqqani Network,
Jaish-E- Mohammad and appealed Pakistan to bring the perpertrators of the terrorism
to justice. Both sides have severely condemned the terrorist attacks in
Gursdaspur and Udhampur. India appealed to US that it is time to act tough on
kinds of terrorism that threaten the peace and stability of entire South Asia.
During the discussions India reiterated the need for enhanced cooperation
against money laundering, terrorism finance, extradition and mutual legal
assistance. Mumbai is included the Strong Cities Network, an initiative under
which the local governments are systematically strengthened in building
community resilience to counter violent extremism. Progress has been made for
MoU between the Indian National Police Academy (Hyderabad) and the New York
Police Department. The tough stance of the US towards terrorism does indicate
that Washington no longer accepts the Islamabad’s line of argument. But the
lack of consistent action and veiled financial support of the US to the
Pakistan does raise doubts about its real intentions. Even though US specifically
calls for bringing the 26/11 masterminds to justice, Pakistan remains
unperturbed under the aegis of China. Accustomed to fanning out despicable
claims against India Prime Minister Sharif has set ground to rake up the
Kashmir issue at the UN General Assembly. Incidentally China too has raised the
issue of recent stand-off in the Burtse area of Ladakh as Indian Army has
bulldozed the Chinese observatory hut built 1.5 km inside the Indian side of
the LAC. The choreographed dubious claims against India by hostile neighbors at
a time when the UNSC reforms are at its pinnacle clearly reflects the sinister
motives of anti-India club. It is high time India too ratchets up supports with
the US and Japan.
Commerce and Innovation
In a remarkable move both sides
agreed to set up Innovation forum by 2016 to promote a culture of innovation, entrepreneurship
and help in creating of sister hubs. Both countries announced collaboration of
private sector led- Confederation of Indian Industries (CII) and the American
National Standards Institute (ANSI) to kindle and scale up innovation, increase
bilateral trade and investment, support advancement of small and medium scale
establishments (SME). US promised to assist India in skill training programs
for 400 million people over the next decade.
Both countries will be working
together for removal of barriers that restrict participation in global supply
chains and for sustained implementation of trade facilitation measures. US has
agreed to India’s request of supporting development and evaluation of Massive
Open Online Courses and Distance Education Learning. India and US has agreed to
support the efforts of the Harvard University and the IIM, Ahmedabad to develop
cluster map. India has agreed to ratify the WTO’s Trade Facilitation Agreement
(TFA) (7). The US expressed its keen interest to work together with Indian
Ministry of Urban Development on Smart Solutions for Smart Cities Reverse Trade
Mission. Further a MoU in field of Mental Health, tradition medicine towards
capacity building. A new working group on Agricultural Biotechnology has been
developed to promote agricultural science and technology research.
Nirmala Sitharaman apprised the US
delegation of the Totalisation Agreement under which Indian IT companies paid
$22.5 billion from 2011-15 to the US treasury in the form of taxes, a sum which
has to go back to workers. Reiterating that the US economy is currently
benefitting not only from invaluable technology expertise of the workers but
also from their huge tax deposits. In turn the workers are entitled to the
retirement benefits. This issue is on the top of the agenda of Commerce
minister and sough fruitful engagement of both parties to resolve the issue.
The dialogue progress diligently
structured the path ahead for India’s strategic and defense cooperation. It is
time India makes an incremental leap forward in catapulting its economy to new
heights whereby large trading block could hardly afford to miss its engagement.
The way forward for India to emerge as a global leader is to push hard on its
economic reforms.
- http://nation.com.pk/international/22-Sep-2015/us-is-india-s-best-friend-biden
- http://articles.economictimes.indiatimes.com/2015-07-08/news/64211844_1_brics-other-emerging-markets-neelkanth-mishra
- http://blogs.economictimes.indiatimes.com/letterfromwashington/can-india-us-take-relationship-to-the-next-level-with-an-economic-nuclear-deal/
- http://www.state.gov/r/pa/prs/ps/2015/09/247192.htm
- https://twitter.com/MEAIndia/status/646367365366583296/photo/1
- http://www.state.gov/r/pa/prs/ps/2015/09/247192.htm
- http://www.ndtv.com/india-news/india-us-to-launch-innovation-forum-next-year-1220686
@ Copyrights reserved.