Political India: Engaging America

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A State Department Spokesperson clarified that the map of India on the Department’s website, which showed Pakistan Occupied Kashmir as part of the territory of Pakistan, “did contain some inaccuracies which were associated with the boundaries of some geographic features [and] this was unintentional.”

The Spokesperson, Victoria Nuland, responded to a question from The Hindu saying the map had been taken off the website and “We are going to get the map fixed and put up a fixed map.”

Admitting that the map on the site earlier “was not drawn properly,” Ms. Nuland added, “We will put up the new map when we acquire one that we are confident is accurate.” However she declined to provide any further details on which officer or department within the State Department was responsible for the map.

The controversy was stoked when the Indian Ministry of External Affairs put out a statement saying, “The Government is aware of the gross inaccuracies, in the map of India, on the U.S. State Department website. The Government has consistently rejected incorrect depiction of India's borders on maps used by the U.S. Government. It has used every opportunity to convey to the U.S. side its concern in this regard, and has asked that these maps be corrected.”

The MEA statement also noted that the government’s dim view on the matter had been “reiterated by a senior MEA official to the U.S. Deputy Chief of Mission today, who assured us that the U.S. Embassy would convey our concerns to the U.S. State Department.”

The MEA went further to clarify its view on the territory in question saying, “The Government takes this opportunity to reaffirm that the entire State of Jammu and Kashmir is an integral part of India and has consistently conveyed to the international community that maps of India should depict the boundaries of our country correctly.”

Labels: boundaries, Foreign Secretary Ranjan Mathai, India, U.S., U.S. State Department

A report by the United States Department of Defence submitted to Congress this week suggested that India remained the “primary target” of LeT, the militant group from Pakistan that is held responsible for the 2008 Mumbai attacks.

This assessment, contained in the Report to Congress on U.S.-India Security Cooperation, was accompanied by strong arguments made in favour of deepening India-U.S. cooperation in the defence sector.

Key among these arguments was the suggestion that the U.S. ought to share “top-of-the-line technology” with India, as exemplified by the case of the U.S. Joint Strike Fighter programme. According to the DoD the JSF, also known as the F-35 Lightning II Programme, has advanced airframe, autonomic logistics, avionics, propulsion systems, stealth, and firepower, which will “ensure that the F-35 is the most affordable, lethal, supportable and survivable aircraft ever to be used by so many war-fighters across the globe.”

In this context the DoD report indicated that although the U.S.’ F-16 and F-18 were not down-selected, in the Medium Multi-Role Combat Aircraft (MMRCA) competition in April 2011, “Should India indicate interest in the JSF, the U.S. would be prepared to provide information on the JSF and its requirements... to support India’s future planning.”

In the vital area of counterterrorism cooperation the DoD report noted that LeT’s activities “continue to threaten U.S. interests and South Asian regional stability,” and hence the U.S. would join with key partners such as India, “to expand counterterrorism cooperation... and our current special operations engagements in the region will continue to focus on the mutually beneficial ways in which we can enhance each other’s capabilities.”

In addition to expanding defence trade and armaments cooperation the DoD report argued that there was a continuing case for bolstering military-to-military engagements. In addition to counterterrorism cooperation this imperative would require continued focus on combined exercises, personnel exchanges and training, maritime domain awareness, countering piracy humanitarian assistance, disaster response and relief and naval and coast guard cooperation, the report noted.

Labels: 26/11 attacks, India, Indo-U.S. relations, LeT, mumbai terror, primary target, U.S. Congress, U.S. State Department

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Labels: India, Indo-U.S. ties, Pakistan, Secretary of State Hillary Clinton

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Labels: fake currency, India, Indian economy, Pakistan, U.S. State Department

From The Hindu

“The biggest culprit” for rampant corruption in India, exemplified by recent cases such as the Commonwealth games scandal and the 2G-spectrum auction, is the Indian state, according to a leading think tank in Washington.

In a report the Heritage Foundation said that while long-standing issues such as tax evasion and corruption by the wealthy and by corporations still abound, it was the Indian government that was responsible for choking of growth by making it difficult for entrepreneurs to start businesses.

This fuelled the expansion of the black market, now said to be 40-50 per cent of India’s Gross Domestic Product, “in the neighbourhood of $600 billion.”

Pointing out that India ranked “an awful 165th out of 183 countries in the World Bank’s measure of the difficulty of starting a business,” the Heritage Foundation report said that many ordinary Indians balked at the thought of endless delays and high costs, preferring instead to proceed without the necessary authorisation and hiding their businesses from official scrutiny.

“This black market activity is due to a predatory state which seeks to control Indian entrepreneurship,” the report said, highlighting a recent headline that described how India had lost over $450 billion in illegal capital flows. This money was illegally earned and ideally would never have existed in the first place if the Indian federal government had not tried to restrict capital movement, the report said.

Touching upon some potential solutions the report’s author, Derek Scissors, said to The Hindu, “Capital account liberalisation can be technical but Reserve Bank of India should immediately commit to a schedule of capital account liberalisation to be implemented over the next three years, including limited amnesty.”

He added that the mere prospect of short-term liberalisation and some amnesty would lead to far more by way of declaration of capital flows. Further, just like the U.S., India would do well to cut its federal budget deficit, “not by a one-time telecom windfall as this year but as a long-term structural matter.” Dr. Scissors said to The Hindu that the “perceived ability to spend more money than you have leads inevitably to corruption.”

Citing the example of the Commonwealth games as illustrating the “government’s guilt” the report noted that they were plagued by overspending, due to lack of transparency and competition in state contract awards. State-run financials have also made loans in exchange for bribes, a problem which would be eased if the state did not dominate the banking system, the report added.

The report also discussed the recent telecom industry scandal, noting that there was “no telecom failure or betrayal here, quite the opposite,” that is, a failure and betrayal of federal coffers, with the “unwarranted cheapness of 2G spectrum (contributing) to a far more dynamic industry and thus led directly to the government’s windfall at this year’s 3G spectrum auction.”

When asked about the potential of policies such as the Universal ID Number and the Right to Information law to make a difference Dr. Scissors said, “Yes, these help at the micro level. It will be more difficult to violate the rights of individual citizens for the sake of graft and there should be more transparency, which always inhibits corruption”.

Overall, the Heritage Foundation report argued, “the answer is plain: deal a decisive blow against state interference in the economy.”

Labels: 2G spectrum case, Commonwealth Games scandal, corruption, India, political scandals, Right to Information Act, Universal ID Number

From The Hindu

The reform of the United Nations Security Council and India's bid to gain a permanent seat will be a “long and complicated process”, U.S. Assistant Secretary of State for South and Central Asia Robert Blake has said.

During a briefing on President Barack Obama's Asia trip, Mr. Blake, however, added that the United States was committed to continued engagement on UNSC reform and to a “modest expansion” of permanent and non-permanent seats.

Underscoring that there were numerous other potential candidates for a permanent UNSC seat besides India, Mr. Blake said the question of veto power had also not been resolved.

“I would caution against expecting any kind of breakthrough any time soon,” he said, adding, “We need to have a very detailed and serious conversation with all of our friends who are competing for these seats.”


Iran and Myanmar

On how the U.S. viewed India's approach — said to be divergent from its own strategy — to the questions of Iran and Myanmar, Mr. Blake said: “I think India does understand the importance of taking greater responsibility for some of these very important global issues.”

To a question from The Hindu on what the U.S.' failure to get the military interoperability agreements signed by India meant for the partnership between the two countries, the Assistant Secretary said “India will see it as in its own interest to sign these agreements” as the two countries' military engagement deepened. He added that the U.S. was “not pressuring India” on this matter.

Labels: India, Obama trip, Robert Blake, U.S., UNSC seat

From The Hindu

With an eye on the approaching India visit of United States President Barack Obama, Finance Minister Pranab Mukherjee expressed hope that India would be made a permanent member of the United Nations Security Council, and that despite the global economic slowdown the Indian government would neither curb foreign investment flows nor allow itself to slip into an inflationary crisis.

Mr. Mukherjee also tacitly advanced arguments to quash any notion that outsourcing of economic activities to India adversely affecting the U.S.. He said that trade between India and the U.S. had more than doubled between 2004 and 2008 and as Indian companies sought to position themselves better in the global market place, they have invested over $25 billion between 2004 and 2009 in the U.S., “creating jobs and prosperity.”

Regarding the UNSC Mr. Mukherjee said, “I do hope that as and when the expanded Security Council along with the general reforms of the United Nations takes place, India’s claim for being a permanent member of the Security Council will be considered and accepted.” In his speech on Thursday he further said that international financial institutions needed to reflect in their functioning the realities on the ground and pressed for a “more dynamic and equitable economic architecture for global trade and sustained growth.”

While the Minister emphasised lessons learned in the aftermath of the global economic slowdown, for example regarding the need for financial market regulation, he, however, equally assured the attendees at an event at the Woodrow Wilson Center in Washington that he did not consider Foreign Institutional Investment and Foreign Direct Investment flows to be too volatile presently.

Mr. Mukherjee added that while it was the responsibility of the Reserve Bank of India to “watch the situation and as and when it is necessary to intervene appropriately,” he did not believe that the inflow of FII or FDI had distorted the market sentiments. “Therefore there is no question of putting any cap,” on such flows, he noted.

Responding to a question on whether inflation risk had become worrisome in the Indian economy, Mr. Mukherjee struck a cautious note. He said, “I do agree that there is an inflationary pressure in the system and you will have to agree with me that when we have massive financial expansions we cannot expect to have non-inflationary impact on the economy at all.”

He admitted that he was particularly concerned about inflationary pressures on food items, and in this area the Indian government had taken steps to improve the supply side by importing scarce goods. Overall, he said, the government was following a policy trajectory that sought to strike a balance, “so that the growth is not retarded and at the same time the inflationary pressure is being reduced.” This ought to produce an end-of-financial-year inflation rate of “around six per cent,” he said.

Mr. Mukherjee also highlighted a recently concluded agreement between India and Switzerland relating to double-taxation avoidance. The Minister noted that in order to introduce an amendment to a clause in the agreement, concerning the exchange of relevant information between the two countries, there had been an ongoing bilateral dialogue. However, the negotiations had recently been completed and India was now awaiting the ratification of this agreement as per Swiss laws, he added.

Labels: India, India-US ties, Pranab Mukherjee, United Nations Security Council

From The Hindu

In an indication that the United States might press India to accede to the Comprehensive Test Ban Treaty (CTBT) and the Fissile Material Cut-off Treaty (FMCT) during President Barack Obama’s November visit, a top administration official here said the U.S. would “strengthen our efforts to achieve ratification of both treaties by... China, Egypt, India, Indonesia, Iran, Israel, North Korea, and Pakistan...”.

Arguing that the ratification of the CTBT by these countries was necessary for the treaty to enter into force, Rose Gottemoeller, Assistant Secretary at the Bureau of Verification, Compliance, and Implementation, said the U.S. would also aim to get India and the other countries listed “negotiating a verifiable FMCT”.

Ms. Gottemoeller’s comments are particularly salient in the context of President Obama’s consistent emphasis on the U.S.’ commitment to get both treaties ratified during his time in office, a priority he outlined in a defining speech he made in Prague last year.

The White House’s keenness to step up efforts to get both treaties ratified was further exemplified in strong statements by Ellen Tauscher, Under Secretary for Arms Control and International Security, pressing Pakistan to end its opposition to the FMCT.

Speaking at the Non-proliferation Treaty Review Conference this year she said, “I think everyone shares the disappointment that the U.S. shares that there is a country that is blocking the programme of work that was a very hard fought agreement... to move forward ... to begin negotiations on a fissile material cut-off treaty.”

She added that the U.S. joined with its friends and allies in “trying to persuade that country to step away and let the programme of work go forward because it would be a long negotiation”.

Labels: CTBT, FMCT, India, Nuclear Non-Proliferation Treaty, nuclear policy, U.S.

From The Hindu

Secretary of State Hillary Clinton on Thursday extended a message of felicitation to all Indians, celebrating with them the country’s 63rd Independence Day anniversary.

In a statement, Ms. Clinton said, “Each year on August 15th, we join with Indians around the world to honour Mahatma Gandhi and the heroes of the Indian independence movement who proved that great change can be achieved through nonviolent resistance.”

She said the courage and determination of these leaders had inspired generations of leaders around the world, including Dr. Martin Luther King, Jr. and others who had advanced the U.S.’ own struggle for civil rights and equality.

Commenting on the promise of freedom, tolerance, and prosperity of the “Indian Dream”, Ms. Clinton said 63 years after independence, India as a world leader continued to offer an example for people who yearn for democracy and liberty around the globe.

On the occasion, the Secretary reiterated that the U.S. was committed to further strengthening its cooperation and partnership with India and, as President Obama had noted during the Strategic Dialogue a few months ago, “The relationship between our two countries is unique.”

Ms. Clinton in her congratulatory message said the bilateral relationship was rooted in common interests, shared values and democratic traditions, and strengthened by extensive people-to-people connections.

She added that the administration looked forward to further developing these bonds when President Obama visited India this fall, because it was only through dynamic, global cooperation between India and the U.S. that the defining challenges of the 21st century might be addressed.

She said, “Once again, I congratulate the people of India on all you have achieved and wish you a safe and joyous Independence Day celebration.”

Labels: Hillary Clinton, Independence Day, India, Secretary of State, U.S.

From The Hindu

Even as the November elections loom on the horizon and Democrats grow fearful of losing seats in both Congressional chambers, President Barack Obama is becoming increasingly strident in defending his top domestic priority — job creation.

Unfortunately for countries such as India, this has come to mean the controversy over outsourcing rearing its ugly head with heightened frequency. In particular, fears that the President's words are more than just rhetoric.

His most recent speech, made at a Democratic National Convention fundraiser, was a good example. While his audience comprised mainly party stalwarts and thus Mr. Obama's reversion to the conventional wisdom of economic protectionism was not surprising, it was the specific mention of India in the context of American jobs being lost that raised eyebrows.

The line that probably has Indian Ministry of External Affairs officials worried is this: “When I took office... we put forward a new economic plan — a plan that... is focussed on making our middle class more secure and our country more competitive in the long run — so that the jobs and industries of the future aren't all going to China and India, but are being created right here in the U.S…”

In particular, the MEA must despair that the very same rhetoric that led to calls to stop American jobs getting “Bangalored” has resurfaced at the highest level of this administration: specifically the President's war cry that the choice in the November election was between policies that had encouraged job creation in the U.S. versus those that encouraged jobs to go elsewhere.

In a reference to policies that could keep jobs on U.S. soil, he added, “That is why I have said instead of giving tax breaks to corporations that want to ship jobs overseas, we want to give tax breaks to companies that are investing right here in the U.S…”

And what could be worrying policymakers and the private sector in India even more is the fact that the White House appears to be considering blocking the so-called “jobs of the future” from fleeing overseas.

In the context of the U.S.' “home-grown, clean energy industry,” Mr. Obama said: “I do not want to see the solar panels and the wind turbines and the biodiesel created in other countries. I do not want China and Germany and Brazil to get the jump on us in the industries of the future. I want to see all that stuff right here in the U.S., with American workers.”

Yet those feeling the pinch of such policies in India may ultimately seek solace in the fact that it may be — ironically — their American private sector counterparts which would help prevent the U.S. from going into a protectionist tailspin.

Even President Obama could not help but recognise that his cherished dream of large-scale job creation depended on corporate America, which has been the most important force pushing for the offshoring of jobs, on the grounds of efficiency and labour cost variations.

Coming as close as he could to recognising this paradox at the heart of the outsourcing controversy, Mr. Obama was forced to concede to his fellow Democrats the importance of the U.S. private sector in rescuing the ailing economy: “Instead of losing millions of jobs... [the U.S. has] created jobs for six straight months in the private sector. Instead of an economy that is contracting, we have got an economy that is expanding.”

Labels: India, jobs, outsourcing, President Barack Obama, U.S.

From The Hindu

The International Monetary Fund (IMF) has raised its world economic growth forecast from 4 per cent to 4.5 per cent, reflecting the positive impact of economic activity in the first half of the year as much as it did the “strong clouds [that] have appeared on the horizon,” according to an official statement.

Offering comments on the release of the updated forecast, Olivier Blanchard, Chief Economist at the Fund, said, “While we remain cautiously optimistic about the pace of recovery, there are clear dangers and policy challenges ahead.”

In particular, there were concerns about how Europe would deal with fiscal and financial problems, the progress that advanced countries make with fiscal consolidation, and the efforts of emerging countries to rebalance their economies, Mr. Blanchard noted.

On the upside, the Fund report said, the numbers on economic activity for the first half of the year “have come in strong, indeed somewhat stronger than we had forecast”. These would give reasons to be more optimistic than the fund had been earlier, Mr. Blanchard added, referring to an April forecast for growth according to which world economic output was expected to expand at 4 per cent.

Specifically the Fund was cheered by the fact that the world economy expanded at an annualised rate of over 5 per cent in the first quarter of 2010 and that growth was stronger than expected in most countries, including the United States, Europe, Japan, Brazil, and India. “A good sign for the future,” according to the IMF was the finding that in most cases, such growth reflected stronger private demand.

Yet on the downside Mr. Blanchard cautioned that the strong clouds that had appeared on the horizon present “real dangers and serious policy challenges, and give reasons to be less optimistic than we were earlier”.

Clouds threaten global economy

The clouds started building over Greece, but quickly extended to Europe, Mr. Blanchard explained, underscoring that these clouds threatened to cover the entire global economy. He argued that worries about fiscal solvency in Greece got transmitted to fiscal solvency concerns elsewhere and this in turn led to doubts about “the solvency of banks… financial turbulence, disruptions in market financing and a freeze in the interbank market in Europe”.

Despite striking this ominous note for the future, the IMF still noted that its forecast for 2011 would remain broadly unchanged, at about 4.25 per cent. It added that both this and the 2010 growth rates however “hide a large difference between and within advanced and emerging and developing economies”.

In particular, the IMF forecasted growth for advanced countries at 2.6 per cent for 2010 and 2.4 per cent for 2011, emphasising that these low growth rates implied that high unemployment would remain a central issue.

In significant contrast however, the Fund’s growth projection for emerging and developing economies was 6.8 per cent in 2010 and 6.4 per cent in 2011, which included an upward revision of 0.5 per cent for 2010 and a downward revision of 0.1 per cent for 2011.

The IMF also called upon emerging countries such as India to deal with capital flows, expected to increase in the aftermath of the crisis in Europe, because such flows were “largely driven by good fundamentals, and likely to be long lasting.” Mr. Blanchard said that limiting their size through controls, or fighting their effect on the exchange rate through reserve accumulation, may prove “difficult and eventually self defeating”.

The Fund also recommended that emerging market countries focus on shifting from external to internal demand, as that would permit them to maintain growth in the face of lower exports to advanced countries, and to better satisfy domestic needs. This would require both structural reforms and exchange rate appreciations, the fund said.

Labels: ASEAN, China, IMF, India, International Monetary Fund, Olivier Blanchard, World Economic Outlook

From The Hindu

The question of providing Indian authorities with access to terror suspect David Coleman Headley is now “down to logistics,” a spokesman for the Federal Bureau of Investigation said today.

Speaking to The Hindu, Special Agent Ross Rice of the Chicago FBI said, “As per his plea agreement Mr. Headley has agreed to cooperate with U.S. and other authorities. If he does not do so, it will be a violation of his plea agreement and his case will then go back to the courts for further review.”

Mr. Rice suggested that the plea agreement worked both ways: “The plea agreement requires Mr. Headley to do certain things, including cooperate with the authorities. It also requires U.S. authorities to do certain things.” He implied that Mr. Headley would need to continue sharing information if he wished to see the U.S. government hold up its end of the bargain.

Mr. Rice confirmed that discussions for providing Indian authorities with access to Mr. Headley were underway and U.S. authorities were hopeful that this would happen in due course. He added, “It is simply down to deciding when, and where, who from the Indian side would be present, whether it would be with Mr. Headley’s attorneys present, whether U.S. authorities would be present and so forth.”

When the logistics for any interviews with Mr. Headley were finalised it would not be announced to the public in any case, due to security concerns, Mr. Rice said.

Labels: 26/11 attacks, David Headley, India, mumbai terror, terrorism, U.S.

From The Hindu

No decision has been made on the question of whether India will have direct access to David Coleman Headley, the Assistant Secretary of State for South and Central Asia, Robert Blake, said today.

Discussing some of the highlights of his recent trip to the region with journalists Mr. Blake said, “We understand that there is a lot of information that Mr. Headley has, which is of great interest to India, particularly because he was scouting out some possible sites.” In turn the United States had great interest in sharing as much information as it could on that, Mr. Blake added.

Yet he cautioned that although the U.S. Department of Justice was working with the Government of India to discuss the modalities for cooperation on the Headley case, “no decision has been made on that.”

Broader LeT threat

On the other hand in Pakistan Mr. Blake said that among the most important messages that he had conveyed was his view that India was seeking two things: first the “continued prosecution of suspects in custody for the Mumbai bombings”; and second, “progress to curtail cross-border infiltration that is taking place from Pakistan into India.”

Mr. Blake also said that he had urged Pakistan to take action against the Punjab-based groups, such as Lashkar-i-Taiba (LeT), “not only because that is important to India but it is important to the U.S.”

He explained that the LeT now had growing ambition and scope in its activity as shown by the David Headley case. “So we think it is very much in the interest of Pakistan as well to take action against the LeT,” he added, implying that the global nature of the LeT threat may endanger Pakistan’s interests.

The Assistant Secretary further argued that the it was important for Pakistan not to allow any terrorist groups to use Pakistan as a base from which to attack India or any other country. “I made that point not only publicly but also privately with my friends in Pakistan,” he said.

Mr. Blake praised Pakistan for its military action along the Afghan border. “I think an enormous amount has happened in Pakistan, first in Swat, then in South Waziristan, and then the more recent arrests of several senior Taliban leaders.” A lot of important progress has been made, he added, however qualifying that with the statement that there has not been any recent progress with the trials of the Mumbai attacks accused in Pakistan.

Liability and the civil nuclear deal

Reacting to suggestions that India may not pass legislation for absolute liability in line with Committee on Supplementary Compensation Mr. Blake said, “I do not see it as a sticking point. In all of our conversations with the Government of India, they have consistently said they remain committed to fulfilling this commitment under the civilian nuclear deal, to pass the civil liability legislation.”

He admitted that the opposition in India has recently expressed its objections to aspects of that legislation but said that it would be up to the Government of India to figure out how to move forward on this.

India-Iran pipeline project

Regarding the proposed Iran-Pakistan-India oil pipeline proposal Mr. Blake sought to dissuade India and Pakistan from engaging with Iran in this area. “This is a very sensitive time with negotiations with Iran and we would prefer that all countries not conduct such transactions with Iran at this time,” he said.

He said that the reason for this would be that the U.S. view of Iran was that it appeared to be unwilling to uphold its international responsibilities in terms of its alleged nuclear development programme.

Labels: 26/11 Mumbai attacks, David Headley, India, Obama, Robert Blake, US

From The Hindu

Touching upon the outcome of a wide range of trade and investment related interactions between India and the United States Industry Minister Anand Sharma, on Thursday said, “I believe through these meetings we have been able to build the groundwork of an excellent trade and commercial outcome for the forthcoming visit of President Obama to India.”

A key achievement that came during this visit to the U.S. was the “Framework for Cooperation on Trade and Investment,” which was signed by Mr. Sharma and the U.S. Trade Representative Ronald Kirk on Wednesday. The agreement aims to strengthen bilateral cooperation between India and the U.S., building on rapid growth between the two countries in recent years, according to an official statement.

The signing of the Framework and the announcement of the Bilateral Cooperation on Small- and Medium-Enterprise Development came during the meeting of the Private Sector Advisory Group (PSAG) which was convened in Washington this week.

Addressing the press in Washington Mr. Sharma said “My meetings have been useful, I can term it as a successful visit because we have taken forward what we had discussed at the Indo-U.S. Trade Policy Forum which had met in New Delhi in the third week of October 2009.”

India and the U.S. had then agreed to negotiate and finalise the Framework and undertake a number of initiatives for increasing opportunities for private sector partnerships “in infrastructure, green technologies, geo-technologies, innovation, creating awareness on IPR; also for bilateral cooperation in energy, in information technology, environmental services industries and working empower women and disadvantaged groups, and small and medium enterprise development,” Mr. Sharma said.

Underscoring the focus on Small and Medium Enterprises, he added, “Ron Kirk and I have also announced the launch of an Indo-U.S. initiative integrating U.S. and Indian small businesses into the global supply chain. This initiative aims to expand trade and job creating opportunities for the U.S. and Indian small and medium sized companies.”

Industrialist and President of the Confederation of Indian Industry (CII) Venu Srinivasan said to The Hindu that at the outset it may be preferable that this initiative focus on medium-sized enterprises only, given the high transactions costs of international joint ventures, something that “smaller companies may not have the wherewithal for”.

Mr. Sharma also emphasised India’s position on the need to take forward the ongoing Doha Round of the WTO. He said that he had impressed upon the officials he met in the U.S. the need to “enhance global trade by putting in place an ambitious but also fair and equitable multilateral trade regime which would strengthen global commerce at a time when the world was challenged by severe economic crises.” Even the most conservative studies of trade place the annual addition to GDP that would result from the creation of a WTO-based trade regime at $600 bullion”, he added.

Agriculture also featured prominently in Mr. Sharma’s meetings in Washington, wherein he said India considered “agricultural cooperation and food security… important for our bilateral engagement and significantly important for the world considering the fact that in the first decade of the 21{+s}{+t} century there is hunger, there are more people globally who have been pushed into the net of hunger because of what has happened in the last two years.”

Labels: "Framework for Cooperation on Trade and Investment, Anand Sharma, India, United States

From The Hindu

At a recent briefing on the trade agreements signed between India and the United States Industry Minister Anand Sharma and India’s Ambassador to the U.S. Meera Shankar answered questions from the media on a range of related issues.

On India’s perception of overly restrictive export controls in the U.S., particularly with regard to high-technology, dual-use items, Mr. Sharma said, “Yes, there have been some concerns in India on some of the [control], which I have in the past conveyed to Ambassador Ron Kirk. We are clear that protectionism of any kind, or any moves which discourages economic engagement, or weakens it, are counterproductive.” Ms. Shankar added that the Obama administration was in the process of undertaking a high-powered review of the entire legal and regulatory framework for export controls and she expected the outcome to provide some positive momentum.

Reacting to a question on the civilian nuclear agreement Ms. Shankar said, “I can say that discussions putting in place the remaining steps to facilitate full implementation of the nuclear agreement are ongoing, they are making good progress, and we hope that we will be able to finalise all issues soon.”

To a question on India’s role in Afghanistan Mr. Sharma clarified, “We will continue despite the attacks that have been mounted, to deter India. We have reaffirmed very forcefully India’s resolve and commitment to continue to help the people of Afghanistan. We have an excellent relationship and communication with the government in Kabul.

Labels: Anand Sharma, export controls, India, protectionism, United Staes