Modi Rocks NRIs at Madison Square, Toes the US Line at UN Assembly

Prime Minister embarked on his five-day visit to USA, on September 25-30 2014. This was the first visit of Narendra Modi as the Prime Minister of India, the ostensible purpose is to go through the annual ritual of the UN General Assembly where 120 Heads of State speak on global issues ranging from ISIS to Ukraine and Ebola virus. It was his first meeting with US President Barack Obama.

Around 20,000 Indian-Americans listened in to the Indian leader at the Madison Square Garden, the known for celebrity rock stars and singers performing on its grand stage. The speech was beamed live on giant screens at Time Square, the pulsating heart of Manhattan which is frequented by thousands of people every day.

The US Senate has designated September 30 as the day of India-US Partnership, which has coincided with the day Prime Minister Modi will meet President Obama in Washington on 30 Sept in the evening for full spectrum talk. Modi was on Navratra fast at the special dinner meeting on 29th. Obama too shunned food at the event. Michele Obama did not attend the dinner meeting but all notables in the Obama administration did. Modi leaned on Gandhi to present his Gita to Obama. The two countries issues a document on walking together “Chalein Saath Saath”.

India warms up to Israel

The India-US relationship, transformed after the path-breaking civil nuclear deal of 2008, converting the hitherto estranged democracies into engaged democracies. While the nuclear deal, also called the 123 agreement, remains a work in progress. Modi went further on this by warming up to Israel PM Netanyahu, long time US ally. India’s relations with the Muslim countries have cooled off specially after the destruction of the Babri Mosque in 1991. This time round, none sought Modi’s company. Even the normal meet with Pak PM Nawaz Sharif on the side-lines did not take place. Pak focussed on Kashmir while India spoke of flood relief in the region. Modi held forth on terrorism and the risk of Islamic states in Syria-Iraq. This agenda is to the liking of the US which is otherwise miffed with India on going back on the TF deal at Bali.

Modi Meets Business, Assures Stability and Predictability

Prime Minister Modi’s interaction with top American CEOs, separately in New York and Washington assured them of stable tax regime with no retrospective amendments to the law. FDI cap in the insurance sector has already been raised to 49 per cent. The defence sector has also been opened up to foreign investment but only upto 40% FDI.

The US used to be India’s largest trading partner but China has taken the position. The two sides are looking to multiply bilateral trade five-fold to $500 billion. The trade balance is in India’s favour. The US is already the fifth largest source of foreign direct investments into India, with cumulative FDI inflows from the US from April 2000 to March 2014 amounting to about $ 11.92 billion. Indian companies have invested over US $ 17 billion in the US in the last few years.

Defence-India Co-opted for Global Policing

Deference sides signed a Joint Declaration on Defence Cooperation, which envisages qualitatively upgrading the defence relationship by simplifying technology transfer policies and exploring possibilities of co-development and co-production of defence systems. The two sides are expected to renew their defence framework agreement during the forthcoming visit. (The US expects India to take up the onerous task of global policing on the strength of the 1mn plus military now around with the C-17 to reach forces anywhere in the world at short notice).

Against the backdrop of the unfolding transition in Afghanistan and the proliferation of terrorist threats in Iraq and the Middle East, counter-terror and security cooperation are expected to get a boost in the forthcoming talks. This was reflected in the symbolic visit of Mr Modi to Ground Zero, the site of the World Trade Centre in New York which was targeted by barbaric terror strikes on September 11, 2001 and the newly-inaugurated 9/11 Museum and Memorial.

With 36 bilateral dialogue mechanisms straddling diverse areas and a growing convergence of interests across the arc of the globe spanning from Africa to Afghanistan, this is the turning point for the multi-faceted India-US relations.