Ahead of the fifth India-US Strategic Dialogue, US Secretary of State John Kerry has called for renewed dialogue with a new government in New Delhi and underlined the need to seize new opportunities and possibilities to deepen the indispensable partnership between the world’s largest democracies.
“Now is the time to renew that dialogue with a new government, with a new set of opportunities, new possibilities. This is a potentially transformative moment in our partnership with India, and we’re determined to deliver on the strategic and historic opportunities that we can create together.”
In a wide-ranging speech in Washington D.C July 28, the US top diplomat laid the roadmap for expanding the US India strategic partnership. Mr Kerry underscored that that deepening America’s ties with India was a strategic imperative and added that the US was committed to work with India’s new government to deliver change and reform promised by India’s new Prime Minister Narendra Modi, affirmed Kerry.
“The new Indian government plans ‘Sabka Saath, Sabka Vikas’ — together we all, development for all — is a vision that we want to support.”
Kerry will co-chair the fifth India-US Strategic Dialogue in New Delhi on July 31 with India’s External Affairs Minister Sushma Swaraj. He will be accompanied by US Secretary of Commerce Penny Pritzker, as well as other senior officials of the Department of Energy, Department of Homeland Security and NASA.
This will be the first US cabinet-level visit to New Delhi since Prime Minister Narendra Modi took charge of Asia’s third largest economy over two months ago. Mr Modi was denied visa by the US for his alleged role in the 2002 anti-Muslim Gujarat riots during his watch as the chief minister of the state. The US has, however, changed the tune and has rolled out a charm offensive to court India’s new leader who shepherded his party to spectacular victory in the May parliamentary elections.
Earlier in July, senior Republican leader US Senator John McCain had called on Mr Modi and met other members of India’s cabinet. The meetings, however, were overshadowed by reports of US intelligence agencies spying on the ruling Bharatiya Janata Party in 2010.
The US, Mr Kerry said, was ready to work with the Modi government to boost the potential of India’s youth through “the strengthening the exchange in technical education, in vocational programmes for high-skilled trades, and especially in areas where we can build on the entrepreneurial and innovative spirit of both of our nations.”
This entrepreneurial spirit, Kerry added, “not only make us natural partners; they give us natural advantages in a world that demands adaptability and resilience.”
While lauding the Modi government for setting out the agenda for reform through enhanced partnership with foreign investors. Kerry also flagged off the US wish list for scaling up business with India.
“If India’s government delivers on its plans to support greater space for private initiative, if it creates greater openness to capital flows, it if limits subsidies and strive for competition, and provides strong intellectual property rights, believe me even more American companies will come to India.”
The limit of equity cap in sectors like insurance, defence and railways were a major grievance of the US at the previous strategic dialogues, with American industry clamouring for more access into the growing Indian market, say experts.
The Indian cabinet’s recent decision to approve increasing equity cap from 26% to 49% in insurance sector for foreign investors has helped meet a key demand of the Americans.
Kerry also described climate change as the biggest challenge, not only for the world, but also India, and urged for increased collaboration between the two countries on this issue.
“Forging the solutions are huge economic opportunities for both India and the US,” he said, adding that the solution to climate change is energy policy which allows access to a USD 6 trillion dollar market.
Alluding to counter-terrorism, Mr Kerry said that India and the US have made great progress together and pointed to real-time information sharing between them as an example of helping each other confront common threats and bring terrorists to justice.
This strategic dialogue is expected to give a new impetus to the fluctuating relationship between the world’s oldest and largest democracies.
It will also provide an opportunity for India and the US to clear misgivings, address key concerns and pave the way for Prime Minister Modi’s September meeting with US President Barack Obama in Washington DC.
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