Economic Highlights

New Delhi, 13 June, 2016

Ties With US

MODI: INDIA UNSTOPPABLE

By Shivaji Sarkar

Prime Minister Modi’s diplomacy is paying. He has vowed not only to “work shoulder to shoulder” with the US but also brought Switzerland, Mexico, Qatar and Afghanistan closer to his fight against terrorism and bid to be part of the MTCR and NSG.

This is not all. He has won significant business for the country – $10 billion nuclear projects funding by US Exim Bank and $40 million for US-India catalytic solar finance programmer for non-grid solar power regular Indo-US troops cooperation.

Undoubtedly, the US will also gain as India moves ahead on buying $13 billion worth arms from America.

Arguably, it is not that India has walked into the embrace of the US as Modi has been tactical. India did not go with the “begging bowl”, as has been often projected in the past particularly by the West. Instead, the Prime Minister projected an immodest country and showcased its potential.

Pertinently, Modi’s address to the US Congress was a demonstration of two equals talking for mutual benefit. Whereby, he convinced the US Congressmen of unstoppable India’s rise.

Notably, the Prime Minister talked of India’s strengths and positioned it as a reliable partner with complementary strengths. “As India embarks on an era of development, it needs to learn from America’s tradition of entrepreneurship and innovation”, Modi said. This is a significant statement and beyond the regime and friendship US President Barack Obama.

Clearly, Modi aware of the political changes in the US next January was also addressing the future President. His stress on the terror hub in the neighbourhood is significant and is the key component in the US Presidential race.

Moreover, in his bid to be a partner with America, Modi was pragmatic enough not to ruffle the feathers of our Himalayan neighbour, China. He quietly avoided mention of South China Sea from the joint statement. Given that New Delhi needs Beijing for more than one reason. Besides, winning friends does not mean creating adversaries.

Modi is practical. He has taken India into the Missile Technology Control Regime (MTCR)), a 34-member exclusive club, which controls transfer of missile, space and related technology. More importantly the club does not include China. India is the only country to be a part of it despite not signing the nuclear non-proliferation treaty (NPT).

In addition, the US support for pushing India into the Nuclear Supplier Group (NSG) is an important step to counter Chinese reservation. New Delhi’s application to NSG comes up at the NSG plenary later this month.

Practically speaking, India does not need membership of either the MTCR or NSG. The decades of sanction since Pokhran I in 1974, has helped the country develop technologies on its own. Post-1998, India’s exhibition of capability also led to dismantling of the sanction regime. But we need the membership to assert our sovereignty and the principle that India cannot be ignored by the world powers or deny what is due to it.

Undeniably, the memberships would open up a new era of collaboration, where none can put a spanner on “technical” grounds. True, India has grown on its own but it also needs the latest technologies and mechanics to move ahead as these are gateways to unhindered growth. It would also ensure that India is the natural leader of the downtrodden and can stop the rogues from disrupting the world.

Indeed, this is where Indo-US troop engagement beyond the shores of the two countries is significant. Doors are now open for Indian armed forces to extend their operational reach in the critical Asia-Pacific region and beyond with logistical help from the US. It also opens up the path to acquire Predator surveillance and armed drones – a requirement to strengthen the country’s security.

Also, India’s quest to acquire armed high altitude long endurance (HALE) drones, unmanned aerial vehicle (UAV), and key space technologies will become easier after entry to MTCR. India could not acquire deadly Hellfire missiles used by the US army in Af-Pak regime as it was not in the MTCR.

The bilateral Logistics Exchange Memorandum of Agreement (LEMOA) envisages Indian and US militaries providing logistics support, refueling and berthing facilities to each other’s warships and aircraft on an equal-value exchange basis seamlessly.

The LEMOA will give regular access to US forces of Indian military bases, though they would not be stationed permanently. Indian forces would have access to Djibouti (Horn of Africa), Diego Garcia (Indian Ocean), Guam (Western Pacific) and Subic Bay (The Philippines).

Remember, India stunned the world with its brave Yemen rescue mission, when 23 countries, including the US, France and Germany sought its assistance for rescue of their nationals in March-April 2015.

Notably, the LEMOA is a mere recognition of Indian capability and helps our forces reach across almost the entire globe. Moreover, it ushers an opportunity for the people as it creates job, abroad and within the country. 

Furthermore, it is a vision that would better India’s job and economic scenario in the next few years. Whereby, the multitude of Indian youth has to be adventurous to take the country ahead.

Besides, Prime Minister Modi also held maritime security dialogues, a key component for coastal security and sharing of commercial “white shipping” information between India and the US. India is trying to finalise such pacts with 25 countries from the African coast to the western Pacific to beef up maritime security to counter conventional and unconventional threats.

In the process, India has agreed to be on the same page on bringing the Paris Climate Agreement into force. The joint statement indicates that the two countries will work towards ensuring that 55 nations ratify the Paris pact. Once in force, the agreements terms cannot be altered for four years. It implies that the next US President would have to abide by it.

Certainly, the agreements on energy security, clean energy, gas hydrates and climate change can open up a new development era.

In sum, after two years, four US visits and seven summits, Modi seems to have taken the country into the US ambit. But there is a less noticeable aspect of how the Prime Minister is using America for various other relationships. It is more futuristic.

The US cannot do without India in its latest geo-strategy. Obama can neither push the Paris pact without India’s help nor can he free Asia of terrorism or even carry out its maneuvers in the South China Sea.

It is India’s moment on the world stage. It has to ensure how China is on board for sailing into the NSG. ---- INFA

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