Launching his passage to India in Mumbai today, US President Barack Obama praised the city’s resilience against relentless terror, paid tributes to the apostle of non-violence, Mahatma Gandhi, cut commercial deals that will generate thousands of jobs in the US, outlined steps to liberalise high-technology trade and promised to fully integrate India into global non-proliferation clubs.
The Maximum City provided a perfect platform for Obama to outline the contours of an ?indispensable partnership? that the US President wants to build with India.
Reaching out to Mumbaikars, Obama celebrated their city as the symbol of India’s many virtues ? ?Strength in diversity,? ?incredible energy and optimism,? and the new entrepreneurial spirit.
On both terror and trade, Obama walked on egg-shells. In declaring that Washington is united with Delhi in the struggle against violent extremism, Obama was careful not to directly criticise Pakistan in the manner that British Prime Minister David Cameron had done during his recent visit to India.
On the controversial question of outsourcing of American jobs to India and the in-sourcing of Indian IT professionals to the US, Obama sought to balance American concerns about India emerging as a competitor to the jobs in the US and the recognition that globalisation is here to stay. His emphasis was on finding solutions that benefit both sides.
Obama also did not mention China, which is seen as looming large over the President’s trip to four Asian democracies ? India, Indonesia, South Korea and Japan. But he found a way to subtly differentiate between the two rising giants of Asia.
?Governments are accountable to their people, their people are more likely to prosper; and that, over the long run, democracy and economic growth, freedom in the political sphere and freedom in the economic sphere go hand in hand?, Obama declared.
The lack of a reference to Pakistan in his sombre remarks to commemorate the victims of 26/11 at the Taj Mahal hotel did provide an opening for the BJP to direct some mild fire at the President. Government sources were more focussed on practical outcomes, especially the President’s promise to intensify bilateral cooperation against terrorism.
Pointing to the fact that the US and India are ?working together more closely than ever before to keep our people safe?, Obama said he looks forward ?to deepening counter-terrorism cooperation ever further when I meet with Prime Minster Singh in New Delhi?. The UPA government is all ears.
While terrorism, Pakistan and other associated issues are likely to figure in Obama’s talks with the Indian leaders in the capital during the next two days, Obama had a chance to complete quite a bit of his own agenda on job creation in the US.
Having got a ‘shellacking’ from the American people anxious about their economic future amidst persistent high unemployment, Obama defined his current visit to India, Indonesia, South Korea and Japan as a ‘jobs’ mission.
Aware of the President’s domestic political imperatives, the UPA government and the Indian business community put together a range of deals, worth $10 billion that had been in the works for some time. These are expected to create about 50,000 jobs in US.
In his address to business leaders, Obama pointed to the ?caricature? of India as ?a land of call centres and back offices that cost American jobs? and the fears in India that the entry of American retail giants like the Walmart ?as a threat to shopkeepers?.
Not all Americans might like the term caricature; Indian business was quite happy to see the President toning down some of the earlier rhetoric on outsourcing.
Calling both sides to overcome these ?stereotypes?, Obama underlined the need for expanding bilateral trade that can create jobs and prosperity in both countries.
As he pressed India to open its markets for American products, Obama also took the first steps towards the liberalising the current restrictions on export of high technology dual use items to India.
?Today, I am pleased to announce that we will work with India to to fundamentally reform our control on exports which will allow greater cooperation in the range of high-tech sectors and strengthen our non-proliferation efforts,? Obama declared.
Under the plan, Indian entities associated with the Indian Space Research Organisation, Defence Research and Development Organisation, and the Bharat Dynamics Limited, will be taken off Washington’s black list.
Removing the Department of Atomic Energy from the list has been held up because of continuing disagreements on how best to verify that US exports of dual use technologies will not be put to military use by the Indian nuclear establishment.
The UPA government has also been pressing for a fundamental change in the way India is categorised in the US export control system. This must await the completion of the US review of its current export control system. Indications are that India might be elevated to a status that many of US friends and allies currently enjoy on high tech trade.
Obama is also promising to back India’s entry into the major global non-proliferation regimes?the Nuclear Suppliers Group, the Missile Technology Control Regime, the Australia Group of chemical and biological exports, and the Wassenaar arrangement that regulates the transfer of conventional weapons.
India’s integration into these rule-making clubs are likely to take place in a phased manner. The entry into the last two groups is likely to be quick. On the NSG and MTCR membership, the US will consult with the other members to define the appropriate criteria. All these decisions will be reflected in the joint statement to be issued in Delhi after Obama’s talks with Prime Minister Manmohan Singh in Delhi during the next two days.