Scripting a new chapter: India, US hold talks to set stage for Modi visit

Signalling an upsurge in India-US ties under the new leadership in Delhi, India and the US have concluded their fifth strategic dialogue to galvanise their strategic partnership and set the stage for a substantive visit by Prime Minister Narendra Modi to Washington in September.

Seeking to infuse a new life into economic relations, which have languished in the past few years, US Secretary of State John Kerry offered the US support for India’s developmental aspirations and targets.

“Our private sector is very eager to be a catalyst for India’s development and our government will enthusiastically support those kinds of development efforts. The opportunities are really clear and they are quite dramatic. American companies lead in key sectors that India wants to grow in – in high-end manufacturing, in infrastructure, in healthcare, and in information technology,” said Kerry during a joint media interaction with India’s External Affairs Minister on July 31.

Kerry added that the US welcomed the raising of foreign investment ceilings in several sectors of the Indian economy, including defense, railways, e-commerce and insurance.

India’s limit on equity cap on foreign investments was a sore point with the US in previous strategic dialogues, but with the Modi government going ahead with long-due reforms, the outlook for American businesses investing in India has brightened.

The joint statement underlined this new optimism on the economic front, with the two countries agreeing to discuss bilateral trade and economic concerns in a spirit of partnership, including at the Ministerial Trade Policy Forum in India.

In a boost for India’s global aspirations, the US reiterated its support for India’s candidacy for a permanent seat at the United Nations Security Council. That support was based on the US partnership with India, India’s capability and its values, said Kerry.

“We have a very strong strategic partnership. It is evidenced by the fact that the United States supports India’s hopes to be able to be a permanent member of the UN Security Council. That is something we support. We would not support that if we did not believe in the breadth of India’s capacity and reach and in its values,” said Kerry

New Delhi and Washington also reaffirmed the strategic partnership in addressing a host of regional and global concerns. The two leaders voiced their support for a unified, independent and sovereign Afghanistan.

The talks underscored the need for an enhanced partnership between India, US and Japan to build transport and trade connectivity between South Asia and ASEAN, via Myanmar.

The two leaders’ recognised terrorism as a common threat and committed themselves to work together to combat terrorism, proliferation of WMDs, nuclear terrorism, cross-border crime, and address the misuse of the internet for terrorist purposes.

“We cooperate significantly on many different issues in the region – counterterrorism, Afghanistan, non-proliferation. India has been a significant, responsible steward of nuclear power. And those are the things which we respect and obviously work with very closely,” said Kerry.

Fast-tracking the implementation of the civil nuclear deal also figured in the discussions, with the two sides agreeing to sort out procedural details to enable American companies to build nuclear reactors in India.

The fifth strategic dialogue also saw the US reiterating its support for India’s membership of the top four global nuclear export regimes, including the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement and the Australia Group.

The strategic dialogue will be followed by the visit of US Defense Secretary Chuck Hagel next week to deepen discussions on military exercises, defense trade, co-production and co-development, and research on new technologies for defense.

Kerry reaffirmed the importance of enhancing India-US relations and spoke of how the two countries were united by shared core values.

“We are two confident nations. We are connected by core values. And we are optimistic nations who never lose sight of how much we can and must achieve.”

The fifth strategic dialogue saw the two strategic partners reviewing their achievements and firm up the agenda for a much-awaited trip by India’s Prime Minister Narendra Modi to Washington in September.

“In the weeks to come we will take a series of concrete steps to pave the way for Prime Minister Modi’s visit to Washington in September and hopefully, hopefully, to pave the way for a new chapter in the ties between our two great democracies,” added Kerry.

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