November 27, 2010

Obama’s India Visit: Acknowledging India’s Rise

Dear Friends,

My last post on the blog was way back in July and the blog itself has remained inactive since early August. I apologize for this prolonged absence friends. But then its not that I have stopped writing. Its just that I was busy typing case analysis, assignments and reports all these weeks. Lots of interesting events on the national landscape had the media on its toes all this while. The prominent one include the dismal prelude to Common Wealth Games, the dazzling games, the shameful spectrum scam, reassuring Bihar polls and Obama's India visit. This write up is about the last one. May be another on 2G scam may follow. Read on for my analysis of this high profile visit.

When Barack Hussein Obama was elected as president of the most powerful nation of planet earth, he was hailed as the face of change US nationals and the globe was seeking. The first state guest of this charismatic professor turned politician was none other than the widely respected Prime Minister of India Dr. Manmohan Singh. This gave a hint that the Democrat leadership of US seeks to strengthen its ties with India, a nation growing at a modest pace when majority of the world was struggling to break free from recession.

Obama’s statements during his visit to India reaffirmed that the two largest democracies are partners in mutual growth. The four day trip, like other high profile meets, was preceded by a lot of speculation of which little materialized. Obama seemed to make it clear to India and to the world at large that Indo-US relation is heading more towards a give and take than US gives and India takes. He was not here to offer diwali gifts to the nation which is home to 17.31% of world’s population. Instead he was here to create job opportunities for his folks back home. E was here to strike a partnership for mutual growth. The message was clear: United States of America needs a friend in India.

The visit began in the historic Taj Hotel in Mumbai where he met the survivors of 26/11 attack. A move in the direction of building a people to people relation, a society to society contact between the two countries and not just a military or business relation. However he did not speak of war against terror and its perpetuators, which irked quite a few political analysts. Obama chose to visit Humayun’s tomb and not the Taj Mahal he interacted with students and industry leaders. All of this to indicate that he was visiting India and not the Prime Minister. The trip highlighted India’s importance in multiple ways. In his attempt to seek access to Indian markets and jobs for US in India, he tried to prepare a level playing field in exchange of American firms outsourcing their projects to India. After all, the firms outsource because it is uneconomical for them to restrict all of their operations within America.
Prime Minister Manmohan Singh and President Barack Obama addressing a joint press conference at New Delhi






Indian government described the visit as a "milestone" in Indo-US relations. This one statement from External Affairs Minister, SM Krishna highlights the importance of the outcomes of this visit includes lifting of curbs on exports of dual use technologies. With ISRO and DRDO now removed from the Entity List of US Bureau of Industry and Security, US has in a way accepted India’s nuclear power and that we do not proliferate. India has been seeking both of these for quite a while now. US in return urged India to unite with it on Iran, a position diametric to India’s near friendly relations with Iran.
While the US president was in India, the majority in house of representatives back home shifted from Democrats to Republics. However, as the president has a leeway authority with respect to foreign affairs, this change is not expected to impart significant effect to foreign affairs policy of the Obama administration, which has been, if nothing, unique. First year of Obama’s rein was a honeymoon with China and thus it slightly annoyed the likes of India, Japan and Philippines. No doubt he is making amends this year. Obama also signaled an aircraft deal which could create as many as 27000 jobs back home. Though defense deals are never inked in presidential visits, Obama wanted to address his people who are clearly disappointed with the slow pace of change they all wanted. Obama’s domestic policies have been seen as averse to corporate America, a view he attempted to change by indicating business worth US $10 billion when he met industry tycoons in Mumbai. In any case, Republicans have traditionally been more beneficial to India’s cause than the Democrats and their victory can only better the Indo-US ties. However, this loss could translate into stiff tussle in passing bills concerning domestic changes.


To conclude India and US are heading for a strong alliance. Alliances can be geopolitical or geo-economic where one country needs another like the relation between US and Saudi Arabia or they can be Society to Society relationship like the one between US and Great Britain. India’s relation with US qualifies for a Society to Society relationship. This visit took both countries a few notches closer towards establishing such a relationship. Obama acknowledged that India has finally emerged.
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With lots of love and Best Wishes
Atul Mishra