Obama in India - Top issues in the spotlight

President Obama is coming - to keep his date with Delhi, again!  But will Obama's presence as the Chief Guest at India's Republic Day – a first ever by a US President – be confined to being all about gestures? Or will it be a watershed moment that will re-script the story of US-India bilateral bonhomie.  

Jan 25, 2015, 11:13 AM IST
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President Obama is coming - to keep his date with Delhi, again! And as the capital city, all decked up and secure like a fortress, waits for the Air Force One to land on Indian soil, the air is heavy with buzz over the significantly symbolic 'Obama in India' event.

But will Obama's presence as the Chief Guest at India's Republic Day – a first ever by a US President – be confined to being all about gestures? Or will it be a watershed moment that will re-script the story of US-India bilateral bonhomie. Will it be just a smile here and a handshake there – or will these pleasantries dovetail with solid “deliverables” on paper and ground.

Obama's India trip, no doubt, holds colossal significance and there will be a plethora of issues on agenda when the two leaders sit down to talk. Though both the nations have remained taciturn over key topics on agenda when the Presidents of the world's oldest and largest democracies sit down to talk; US Secretary of State John Kerry who attended Vibrant Gujarat Summit earlier this month, highlighted four key areas of focus: defence, climate change, civil nuclear cooperation and economic partnership.

Other than the above mentioned issues, the two leaders may also discuss issues like counter-terrorism, renewable energy, intellectual property rights, etc.

President Obama is coming - to keep his date with Delhi, again! And as the capital city, all decked up and secure like a fortress, waits for the Air Force One to land on Indian soil, the air is heavy with buzz over the significantly symbolic 'Obama in India' event. But will Obama's presence as the Chief Guest at India's Republic Day – a first ever by a US President – be confined to being all about gestures? Or will it be a watershed moment that will re-script the story of US-India bilateral bonhomie. Will it be just a smile here and a handshake there – or will these pleasantries dovetail with solid “deliverables” on paper and ground. Obama's India trip, no doubt, holds colossal significance and there will be a plethora of issues on agenda when the two leaders sit down to talk. Though both the nations have remained taciturn over key topics on agenda when the Presidents of the world's oldest and largest democracies sit down to talk; US Secretary of State John Kerry who attended Vibrant Gujarat Summit earlier this month, highlighted four key areas of focus: defence, climate change, civil nuclear cooperation and economic partnership. Other than the above mentioned issues, the two leaders may also discuss issues like counter-terrorism, renewable energy, intellectual property rights, etc.

2/10

The landmark deal signed in 2008 by the then PM Manmohan Singh and America's George W Bush has remained stuck in limbo all these years, mainly because of the liability issue.

The Civil Liability for Nuclear Damage Act, that requires the suppliers to pay compensation in case of accidents, has so far been nuking the possibility of nations selling their N-reactors to India, hence hampering the deal to see the light of the day practically.

However, after Modi’s meeting with Obama at the White House in September, inter-agency contact groups were formed to iron out the differences. Also, India has on offer a proposal to set up a nuclear insurance pool that would recompense the global nuclear suppliers in case of mishaps - which if accepted could make the implementation process smoother.

The landmark deal signed in 2008 by the then PM Manmohan Singh and America's George W Bush has remained stuck in limbo all these years, mainly because of the liability issue. The Civil Liability for Nuclear Damage Act, that requires the suppliers to pay compensation in case of accidents, has so far been nuking the possibility of nations selling their N-reactors to India, hence hampering the deal to see the light of the day practically. However, after Modi’s meeting with Obama at the White House in September, inter-agency contact groups were formed to iron out the differences. Also, India has on offer a proposal to set up a nuclear insurance pool that would recompense the global nuclear suppliers in case of mishaps - which if accepted could make the implementation process smoother.

3/10

The defence sector will be a key area of focus as defence ties are expected to move to a higher level of engagement with joint production of military hardware including drones under the DTTI (Defense Trade and Technology Initiative).

For now, DTTI is looking forward to co-production and co-development of two crucial defence hardwares - drones and equipment for the C-130 Lockheed Martin transport military aircraft.

Also, 10-year defense pact, named New Framework for the United States - India Defence relationship that was signed in 2005 expires this year. The pact will be renewed for another decade to deepen defense liaison with the US, which is keen to compete with Russia - the largest arms supplier to India.

The defence sector will be a key area of focus as defence ties are expected to move to a higher level of engagement with joint production of military hardware including drones under the DTTI (Defense Trade and Technology Initiative). For now, DTTI is looking forward to co-production and co-development of two crucial defence hardwares - drones and equipment for the C-130 Lockheed Martin transport military aircraft. Also, 10-year defense pact, named New Framework for the United States - India Defence relationship that was signed in 2005 expires this year. The pact will be renewed for another decade to deepen defense liaison with the US, which is keen to compete with Russia - the largest arms supplier to India.

4/10

With the emergence of the Islamic State, the world has more reasons to worry about the spread of terror. Be it the gory killing fields of Syria or the Taliban suicide attack on Peshawar school, the Sydney hostage crisis or the numbing attack on Charlie Hebdo office in Paris, the situation is increasingly getting out of hand.

Ever since the Mumbai terror attacks, the US and India have been cooperating on the issue with exchange of intelligence becoming a priority for both the nations. Issue like US troops withdrawal from Afghanistan and its implications for India, Indo-Pak border skirmishes and cross border threat from Pakistan are expected to be brought up.

During Modi’s visit to Washington in September, both the nations had underscored the dire need to combat terrorism by exerting joint and concerted efforts, including the dismantling of safe havens for terrorist and criminal networks, to disrupt all financial and tactical support for networks such as al Qaeda, Lashkar-e Taiba, Jaish-e-Mohammad, the D-Company, and the Haqqanis.

With the emergence of the Islamic State, the world has more reasons to worry about the spread of terror. Be it the gory killing fields of Syria or the Taliban suicide attack on Peshawar school, the Sydney hostage crisis or the numbing attack on Charlie Hebdo office in Paris, the situation is increasingly getting out of hand. Ever since the Mumbai terror attacks, the US and India have been cooperating on the issue with exchange of intelligence becoming a priority for both the nations. Issue like US troops withdrawal from Afghanistan and its implications for India, Indo-Pak border skirmishes and cross border threat from Pakistan are expected to be brought up. During Modi’s visit to Washington in September, both the nations had underscored the dire need to combat terrorism by exerting joint and concerted efforts, including the dismantling of safe havens for terrorist and criminal networks, to disrupt all financial and tactical support for networks such as al Qaeda, Lashkar-e Taiba, Jaish-e-Mohammad, the D-Company, and the Haqqanis.

5/10

Out of a plethora of issues that the leaders of two important democracies will talk about, US-Indo economic ties are expected to be the prime highlight of the discussion.

Given PM Modi’s assertive call to attract investors at Vibrant Gujarat Summit and US Secretary of State John Kerry’s  applaud of his fresh initiatives, it is easy to know how avid both the nations are to engage in a deeper economic partnership. Kerry, who hailed Modi’s ‘Make in India’ initiative and called it a win-win situation for the entire planet, had arrived at the summit with a high-level US delegation including a dozen CEOs.

Meanwhile, both India and US have pledged to increase their annual trade five-fold to 500 billion dollar. It can be noted that two-way trade has increased fivefold since 2001 to nearly $100 billion.

Also, in what paints India’s future economy in brighter strokes, an IMF report has predicted that India will replace China as the world’s fastest growing economy in two years. And the timing of the report couldn’t be better as it comes just three days ahead of Obama’s arrival in India.

Out of a plethora of issues that the leaders of two important democracies will talk about, US-Indo economic ties are expected to be the prime highlight of the discussion. Given PM Modi’s assertive call to attract investors at Vibrant Gujarat Summit and US Secretary of State John Kerry’s  applaud of his fresh initiatives, it is easy to know how avid both the nations are to engage in a deeper economic partnership. Kerry, who hailed Modi’s ‘Make in India’ initiative and called it a win-win situation for the entire planet, had arrived at the summit with a high-level US delegation including a dozen CEOs. Meanwhile, both India and US have pledged to increase their annual trade five-fold to 500 billion dollar. It can be noted that two-way trade has increased fivefold since 2001 to nearly $100 billion. Also, in what paints India’s future economy in brighter strokes, an IMF report has predicted that India will replace China as the world’s fastest growing economy in two years. And the timing of the report couldn’t be better as it comes just three days ahead of Obama’s arrival in India.

6/10

Even as President Obama’s India trip has generated a lot of positivity between the two nations and infused a lot of optimism, there is an issue that continues to be the bone of contention between India and the US. The issue of Intellectual Property (IP) rights makes for one of the toughest points.

According to Intellectual property watch, US business lobby, especially pharmaceutical companies, are unhappy with India’s patent laws that do not allow tweaking of existing inventions to win new patent protection and instead demand “genuine innovation.”

However, things are beginning to look better, at least for now as the US has closed its Out-of-Cycle Review of India's intellectual property policies, that was started in 2014 as prescribed by the US Trade Representative’s ‘Special 301 Report’, that also retained India as a “Priority Watch Country”.

Also, both sides have reportedly advanced in their talks  for  Bilateral Investment Promotion and Protection Agreement – an investment treaty that would protect the intellectual property rights of US businesses.

Even as President Obama’s India trip has generated a lot of positivity between the two nations and infused a lot of optimism, there is an issue that continues to be the bone of contention between India and the US. The issue of Intellectual Property (IP) rights makes for one of the toughest points. According to Intellectual property watch, US business lobby, especially pharmaceutical companies, are unhappy with India’s patent laws that do not allow tweaking of existing inventions to win new patent protection and instead demand “genuine innovation.” However, things are beginning to look better, at least for now as the US has closed its Out-of-Cycle Review of India's intellectual property policies, that was started in 2014 as prescribed by the US Trade Representative’s ‘Special 301 Report’, that also retained India as a “Priority Watch Country”. Also, both sides have reportedly advanced in their talks  for  Bilateral Investment Promotion and Protection Agreement – an investment treaty that would protect the intellectual property rights of US businesses.

7/10

With China signing a landmark climate pact with the US, the spotlight has shifted to India – the world’s third largest carbon polluter.

However, the climate accord between China and the United States, the world’s largest and second largest carbon polluters, is said to be a much-awaited outcome of prolonged discussions between the two sides. And nothing of that sort is expected to come out of Obama’s India trip. However, US would need India’s backing in the run up to Paris climate conference of the UN Framework Convention on Climate Change (UNFCCC), to be held later this year.

China has for the first time vowed to stop its carbon emissions from growing by 2030 in an agreement that may serve as the foundation for a global climate accord.

 

With China signing a landmark climate pact with the US, the spotlight has shifted to India – the world’s third largest carbon polluter. However, the climate accord between China and the United States, the world’s largest and second largest carbon polluters, is said to be a much-awaited outcome of prolonged discussions between the two sides. And nothing of that sort is expected to come out of Obama’s India trip. However, US would need India’s backing in the run up to Paris climate conference of the UN Framework Convention on Climate Change (UNFCCC), to be held later this year. China has for the first time vowed to stop its carbon emissions from growing by 2030 in an agreement that may serve as the foundation for a global climate accord.  

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US will also cooperate in India’s effort to transform into a low-carbon, climate-resilient energy economy as Exim bank would be funding upto $1 billion for the process. A Memorandum of Understanding was signed between the Export-Import Bank and the Indian Renewable Energy Development Agency.

Though, India can prove to be a good market for US renewable energy exports, but America has expressed concerns over some policies that repel investors and foreign firms.

One such policy is  India's domestic content requirement policy, which requires indigenously made parts. For example US solar industry strongly objects to India’s requirement of crystalline cells being made at home for the National Solar Mission.

US will also cooperate in India’s effort to transform into a low-carbon, climate-resilient energy economy as Exim bank would be funding upto $1 billion for the process. A Memorandum of Understanding was signed between the Export-Import Bank and the Indian Renewable Energy Development Agency. Though, India can prove to be a good market for US renewable energy exports, but America has expressed concerns over some policies that repel investors and foreign firms. One such policy is  India's domestic content requirement policy, which requires indigenously made parts. For example US solar industry strongly objects to India’s requirement of crystalline cells being made at home for the National Solar Mission.

9/10

One of the flagship schemes pioneered by the Modi government is expected to get a major leg up during Obama's trip as a proposal agreed by the US to get involved in the development of smart cities may take a final concrete shape with the signing of three MoUs for Ajmer, Allahabad and Vishakhapatnam, which have been picked by the Indian government for the project.

Also, US business giants have come together to form a consortium comprising Multi-national companies (MNCs) like Cisco, IBM, 3M, EMC, GE, Honeywell, KPMG, Otis, Timken and Louis Berger, which will address the infrastructure, energy and smart city projects.

 

 

One of the flagship schemes pioneered by the Modi government is expected to get a major leg up during Obama's trip as a proposal agreed by the US to get involved in the development of smart cities may take a final concrete shape with the signing of three MoUs for Ajmer, Allahabad and Vishakhapatnam, which have been picked by the Indian government for the project. Also, US business giants have come together to form a consortium comprising Multi-national companies (MNCs) like Cisco, IBM, 3M, EMC, GE, Honeywell, KPMG, Otis, Timken and Louis Berger, which will address the infrastructure, energy and smart city projects.    

10/10

Soon, students from India's A-listed universities like the IITs may find themselves being tutored by the best faculties from abroad as Obama has welcomed PM Modi's proposal of another flagship education scheme known as Global Initiative of Academic Networks (GIAN, or Knowledge).

Under GIAN, India would invite and host up to 1,000 American academics each year to teach in centrally- recognised Indian universities and the government is also shelling out lucrative pay package to attract the best of the faculties.

The Modi government has decided to shell out salaries as high as $12,000 for a 20-day teaching session to pay the international faculties, in line with the PM's goal of readying young Indians for 21st century jobs.

One of the famous faces being roped by India to be a part of GIAN is Manjul Bhargava, an Indian-origin mathematician, who recently won the coveted Fields Medal, known as the Nobel Prize of mathematics.

By Supriya Jha

Soon, students from India's A-listed universities like the IITs may find themselves being tutored by the best faculties from abroad as Obama has welcomed PM Modi's proposal of another flagship education scheme known as Global Initiative of Academic Networks (GIAN, or Knowledge). Under GIAN, India would invite and host up to 1,000 American academics each year to teach in centrally- recognised Indian universities and the government is also shelling out lucrative pay package to attract the best of the faculties. The Modi government has decided to shell out salaries as high as $12,000 for a 20-day teaching session to pay the international faculties, in line with the PM's goal of readying young Indians for 21st century jobs. One of the famous faces being roped by India to be a part of GIAN is Manjul Bhargava, an Indian-origin mathematician, who recently won the coveted Fields Medal, known as the Nobel Prize of mathematics. By Supriya Jha

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