Category Archives: India-US Relations Blog

Make in India: US offers to jointly manufacture fighter jets with India

USINPAC- make-in-india-us-offers-to-jointly-manufacture-fighter-jets-with-indiaNEW DELHI: The US can help India fill a key gap in its defence architecture by collaborating with it to build the planes that are needed to safeguard the country’s airspace, ambassador Richard Verma said. He also said that the two countries had taken joint action against a “high-profile hacking group” operating in India.

“India faces a critical shortage of frontline fighter aircraft to patrol its skies and keep its airspace safe,” the US ambassador to India said at an Observer Research Foundation event in Delhi on Friday. “Expanding our bilateral defence cooperation could help address that challenge. I see no reason why the United States and India cannot build fighter aircraft together, right here in India.”

Prime Minister Narendra Modi may meet President Barack Obama for the second time this year during his trip to the US in September. ET reported August 10 that this may take place on Modi’s way back from San Francisco as the two leaders seek to enlarge bilateral ties that have gained significant momentum since the Obama’s trip to India in January.

If it happens, this meeting will take place ahead of the first Indo-US Strategic and Commercial Dialogue in Washington. External affairs minister Sushma Swaraj and commerce minister Nirmala Sitharaman will lead India at the dialogue, which was upgraded to a strategic and commercial dialogue from a bilateral strategic dialogue at January’s Obama-Modi meeting.

Verma said Friday that the US and India have been pioneers in the digital domain and should continue to work together to combat threats through information sharing. “For example, we recently provided information on a high-profile hacking group operating from India, enabling our two countries to take concerted action against these threats,” Verma said.

India, US first strategic & commercial dialogue on September 22

USINPAC Strategic and Commercial DialogueNEW DELHI: Aiming to boost bilateral trade five-fold to $500 billion, India and the US will hold the first composite ‘strategic & commercial dialogue’ next month focused on defence and energy as well as infrastructure and investments.

Commerce Secretary Rita Teaotia today met the US Under Secretary for Commerce, Stefan Selig, as part of an inter- ministerial discussion to deliberate on the agenda, structure and deliverables for the first ministerial level meeting of the elevated ‘Strategic and Commercial Dialogue’ to be held in Washington on September 22, the Commerce & Industry said in a release.

The issues that are likely to be taken up for discussion at ‘strategic & commercial dialogue’ (S&CD) from both sides were deliberated at length under the aegis of each of the six Joint Working Groups, it said.

The dialogue steered by the External Affairs Ministry and the India-US Commercial Dialogue in existence since 2000 and steered by Department of Commerce were clubbed as one dialogue under the Delhi Declaration released during President Obamas visit to India in January.

The composite dialogue would be co-chaired by the External Affairs Minister and the Commerce and Industry Minister from Indian side and US Secretary of State John Kerry and US Secretary of Commerce Penny Pritzker from the American side.

Earlier in the day, Selig said these dialogues will revolve around four areas — ease of doing business; innovation and entrepreneurship; smart cities with a specific focus on renewable energy, and harmonisation of standards to increase trade.

“The S&CD will be the signature, annual dialogue…It will serve as a high-level meeting between senior government and Cabinet officials as well as an ongoing, sustainable forum for policy discussions,” he added.

This commercial track would be a platform for both short-term and long-term deliverables, he said, adding that S&CD would focus on not only securing near-term trade and investment outcome, but areas of long-term collaboration.

“These steps can also be seen as four ambitious and important goals. The first goal is perhaps the most ambitious: to increase bilateral trade five-fold from $100 billion today to $500 billion annually,” he added.

The US holds a similar strategic and economic dialogue with China.

Source: The Economic Times

US May Discontinue CFS Payment to Pakistan Beyond 2015

obamaISLAMABAD: The United States may stop paying millions of dollars annually to Pakistan under the Coalition Support Fund (CSF) after 2015, a media report said today.

CSF future was part of discussion at the 23rd Defence Consultative Group Meeting (DCG)-Interim Progress Review (IPR) yesterday between Pakistan and a US delegation led by principal Deputy Secretary of Defence Kelly Magsamen.

Pakistan wanted extension in CSF due to continuing challenges but the US was not ready to continue it due to changing priorities in the context of new challenges in Middle Eastern and threats by ISIS, the Dawn reported.

Under the CSF arrangement, the US reimbursed Pakistan for operations and maintenance costs incurred in direct support of its operations in Afghanistan.

Since 2001, the US has reimbursed USD 13 billion to Pakistan, which is the largest recipient of the fund.

The arrangement was supposed to end with the completion of the drawdown in December 2014, but the US government through legislation extended the programme for another year.

The extended programme, which came with extra conditions, allowed reimbursement of up to USD 1 billion.

Pakistan had in 2014 lobbied for conversion of the CSF into a ‘Stability Support Fund’ after changing some of its parameters.

The US administration initially looked convinced about the proposal, but it couldn’t materialise due to Pakistan’s failure to pursue the matter at the political level.

Additionally,  the US needed to realise that ISIS was also posing a serious threat to this region.

Pakistan needs sustained assistance for continuation of operations as well as rehabilitation of the displaced people.

About two million people have been displaced because of counter-militancy operations and they are now being rehabilitated at a cost of Rs 100 billion.

Source: The New Indian Express

The future’s Asian

Annual Immigrant Flow Into the United StatesFor decades, Mexicans have been the largest contingent in America’s 41.3m foreign-born population. But the annual inflow has slowed dramatically. In 2013 Mexico was overtaken as the biggest source of new migrants by both China and India, according to the Census Bureau. In 2007, just before the recession, Mexicans made up 23.6% of all annual migrants. By 2013 more jobs at home and tighter border controls had reduced this to 10%, while China’s and India’s combined share rose to a quarter. These new migrants are even younger, and well-educated. Around a third of America’s 1.1m foreign students are Chinese, and some 70% of H1B visas for highly skilled jobs go to Indians.

Source: The Economist

India, US partnership to shape 21st century: Envoys

Close collaboration between India and US in the years ahead can shape the 21st century with a big impact upon global peace and prosperity, according to the two countries’ envoys in each other’s capitals.

USINPAC- US India Partnership“As US-India ties continue to blossom, the true test of our defining partnership for the 21st century will be how it benefits not just our common citizens but also the global commons,” wrote Indian ambassador Arun Singh and US ambassador Richard Verma in a rare joint article published here Monday.

“The fact is, we are stronger when we work together, and our close collaboration in the years ahead can have a big impact upon global peace and prosperity,” they said in an op-ed in the Huffington Post titled “India And The US Partnering To Shape The 21st Century.”

The article marking the 10-year anniversary of the landmark US-India civil nuclear deal noted how the initiative had transformed the two countries’ bilateral relationship into a strategic partnership built on mutual trust and natural affinity.

“The historic visits of Prime Minister (Narendra) Modi to the United States and President Barack Obama to India helped our relationship soar, moving us past old disagreements and paving the way forward for even more ambitious new collaborations,” Singh and Verma noted.

Since Obama’s January visit to India, the two nations “are now working on new initiatives from the outer reaches of space to the depths of the oceans,” they said.

“Our leaders’ vision of a rules-based international order where disputes between states are settled peacefully, trade flows more freely and clean energy reduces the threat of climate change offers the best promise of a more peaceful, prosperous and sustainable century than the past one.”

“Given our shared democratic values, multicultural traditions, robust people-to-people ties and convergent economic and security interests, we are natural partners, and indeed on a course to be best partners,” the two envoys wrote.

“In a world filled with complex security and economic challenges, this relationship matters more now than ever before,” Singh and Verma wrote.

“That’s why our leaders have aggressively set out to increase our defence cooperation, create greater economic opportunities for our people and work more closely on climate change,” they wrote.

“Our national interests are converging on the vital issues of the day.”

While US infrastructure and technology firms are ready to bring their expertise to Modi’s ambitious plan to build 100 smart cities by 2020, the envoys noted, Indian firms and investors are increasingly present in the US to help power America’s growth and to create jobs.

“Beyond the strategic and economic ties, our people continue to bring us closer together,” they wrote.

The Indian diaspora has not only made enormous contributions to every facet of American society, Singh and Verma noted, they are increasingly giving back to their ancestral home, as well.

“In India, Americans and Indians are working closely together to spur advances in medicine, science and technology, helping to power India’s growth and improving the lives of ordinary Indian citizens.”

India and the United States are also increasingly cooperating to meet development challenges in India and around the world, the two envoys noted.

 

Source:  Business Standard