Issues: U.S.- India Relations
ISSUE PROFILE: Levels of US-India Trade are blossoming, while the total value of bilateral trade has doubled since 2001 and both governments intend to see it double by 2009. U.S. exports to India in 2006 had a total value of $10.1 billion, which included aircrafts, business and telecommunications equipment, jewelry, fertilizers, and chemicals. In this same year, imports from India to the U.S. had a total value of $21.8 billion, which included cotton apparel, textiles, pearls, gemstones, and jewelry.
USINPAC Believes US-India Trade Relations Can Be Enhanced by:
- Opening discussions on forming a Free Trade Agreement between the two countries
- Encouraging greater Foreign Direct Investment in India by removing limits on majority foreign ownership, particularly in the manufacturing and retail sectors
- Easing entry of U.S. and Indian firms into various fields in both countries including insurance, banking, private equity and venture capital
- Supporting the Indian government’s current emphasis on investment in physical and human infrastructure including energy, road and rail, and primary education
- Harmonizing legal protection of intellectual property rights, tighten Indian enforcement of laws against piracy of intellectual property and expand U.S. enforcement of laws against piracy of intellectual property
- Promoting cooperation in research and development of new technologies in key sectors including agriculture, energy, life sciences, waste management, and information technology
ISSUE PROFILE:
- The United States and India must continue to build on the significant progress made Next Steps in Strategic Partnerships (NSSP) which includes easing restrictions on export to India of dual use high-technological goods, including India in the U.S. Government’s National Missile Defense Program, as well as increasing civilian nuclear and civilian space cooperation.
- Expand co-development and co-production programs between the two countries in all areas that will optimize each country’s comparative advantages in critical know how, talent pool, access to raw materials and geographical positioning.
- Continue efforts to develop trade in controlled items with enhanced security of such trade by implementing strong procedural and administrative controls and enforcement measures.
- Complete US-India Nuclear Trade deal that would allow both countries to advance their technological and energy requirements.
- Both countries should continue unrelenting efforts to implement ten-year defense trade pact, which outlined two-way defense trade, increasing opportunities for technology transfers, and co-production, expanded collaboration related to missile defense, and establishment of a bilateral Defense Procurement and Production Group.
USINPAC ISSUE PLATFORM:
- We support a U.S. Government vote in favor of including India as a permanent member of the Security Council when expansion of the Security Council comes up for consideration at the United Nations. Also, except of China, all other Permanent Members of the Security Council are in favor of India’s bid.
- We support a U.S. Government vote in favor of including India as a member of the Nuclear Supplier Group.
- We support U.S.-India dialogue to include India in the U.S. Government’s missile defense program.
- We support expansion of US-India military exercises and military-to-military training programs and an expansion of the
- US-India defense co-production and defense technology co-development programs with US-Israel co-production and co-development as a model.
ISSUE PROFILE: US-India Democracy Reform
- The United States and India are two of the largest contributors to the United Nations Democracy Fund, which both nations have actively engaged as among the top multilateral initiatives to promote and develop democratic institutions in targeted countries.
- The United States and India are actively working together on “The Global Democracy Initiative to Promote Democracy and Development,” which include organizing of training courses between the two countries, the sharing of information regarding best practices of democracy, coordinating efforts to identify opportunities for joint support, continuing efforts to meet the UN Millennium Development Goals to eradicate poverty and push development, and working with other countries to support the Community of Democracies Santiago Commitment to promote democracy, human rights, and development.
- India has taken a substantial role in reconstruction efforts in Afghanistan having provided $750 million to the cause, as well as contributing personnel and opening consulates. Support includes $111 million power station, $84 million road-building project, a $77 million project dam, and construction of a $67 million parliament building to be finished in 2010. Earlier this year, India announced a $100 million increase in Indian aid to Afghanistan. A global partner of the United States in the war on terror, India should continue to put efforts into rebuilding of Afghanistan.
USINPAC ISSUE PLATFORM
- Often referred to as the world’s oldest and the largest democracies, the United States and India have a shared obligation and commitment to democratic reform, particularly in Asia, which both nations consider their highest priority strategic interest and both nations believe that peace and stability can be achieved only through democratic reform.
- We believe that a great deal more can be done in this area of US-India cooperation, including democracy reform in Pakistan.
