Despite a huge effort to fight scam, scandals and corruption, India dazzled in the glow of Diwali lights to reflect an optimistic fervour and vibrancy in its economy as a meditative Sanskrit hymns invoked the Goddess of Wealth Lakshmi into millions of homes.
The Mumbai Stock Exchange was buoyant and the Indian economy is projected to grow by 8.5% during the current fiscal year.
US President Barack Obama could not have chosen a better time to visit India, with his ten-day Asian tour covering Indonesia, South Korea and Japan.
The mid-term poll back home rattled him on the eve of his visit, with his Democratic Party losing its majority in the House of Representatives, in addition to having its majority sliced in the Senate. He admitted that the election results showed deep frustration with slow economic growth.
Mumbai fascinated the US President and First Lady Michelle. They flew in a US Mariner from the airport to Taj Mahal Hotel, where all the 604 rooms were booked for him and his delegation. The century-old hotel reopened with a new look in August this year after a terrorist attack in November 2008 that left 30 people dead.
Economic redemption
His talks in India’s commercial capital were on his programmes to revive the faltering US economy. With 250 Chief Executives of American companies in tow, Mr Obama met captains of the industry including Ratan Tata, Mukesh Ambani, Anil Ambani, Anand Mahindra and many other top US executives.
The American side included Honeywell Chairman & Chief Executive David Cote, Pepsi & Co Chief Executive Indra Nooyi and General Electric Company Chairman Jeffery Immelt.
Mr Obama said he was keen to open the Indian markets for US companies.
He said “several landmark deals valued at $US 10 billion had been signed prior to his arrival. These included purchase of 33 Boeing 737 aircraft for Spice Jet and a power deal valued at $US 750 million between General Electric and Reliance Power.
These deals are expected to hoist 50 000 jobs in the US.
Mr Obama said there should not be unnecessary trade barriers between the two countries.
“We will work with India to fundamentally reform our control on exports to allow greater cooperation in a range of high-tech sectors to strengthen our relations,” he said, and asked India to remove its trade and investment barriers.
Growing ties
Two-way trade between India and the US doubled during the five-year period covering 2004 to 2008 to reach $US43 billion, increasing by $US 14.6 billion during the first six months of the current year. The volume of trade is expected to cross $US 60 billion by the end of the year.
Mr Obama said trade between the two countries should double annually over the next five years to consolidate the Indo-US relationship.
These figures are however negligible compared to the US-China bilateral trade, which stands currently at $US 400 billion and the India-China trade of $US 50 billion.
“We want Indians as partners,” Mr Obama said during his meeting with Prime Minister Dr Manmohan Singh and other business leaders.
Creating jobs
According to some media reports, Mr Obama proposed that India should purchase $US 12 million for its military and civil defence, guaranteeing thousands of jobs in the US.
He may have also suggested sale of F/A-18 Super Hornet fighters worth $US 11 billion, which would created 25 000 new jobs in the US.
About 150 000 Americans work in India and Indian businesses had invested $US 25 billion in the last five years in the US, helping to create 56, 000 jobs.
Foreign Secretary Nirupama Rao said ties between the two countries had intensified.
“Both countries have taken concrete and significant steps in many areas that would expand the long term strategic teamwork. We talked about defence cooperation, agriculture, health and other important strategic interests,” she said.
According to Home Secretary G K Pillai, intelligent sharing had improved in recent months with the signing of the ‘Counter-Terrorism Security Initiative.’
Just days before Mr Obama’s visit, India signed a global pact on nuclear liability in Vienna, in response to the long-standing demand of US nuclear companies.
Interestingly, before Mr Obama arrived in India, US Senate leader John McCain suggested that the US and India “should team against a troubling China” in an oblique reference to Chinese incursions along the Indian border.
Earlier Dr Manmohan Singh had a detailed meeting with US Secretary of State Hillary Clinton on the sidelines of the East Asia summit in Hanoi.
NVR Swami is a retired Indian political and diplomatic journalist. He now lives in Auckland.
