India, US shore up defense ties, sign nuclear deal
India and the United States are making significant progress on defense cooperation. The two sides discussed improving relations regarding the Indo-Asia-Pacific region and Afghanistan, along with addressing issues of security in the Indian Ocean region.
U.S. President Barack Obama hosted Indian Prime Minister Manmohan Singh at the White House in Washington, D.C., on Sept. 27. The meeting culminated in a joint statement released on the overall relations between the two countries and the endorsement of a Joint Declaration on Defense Cooperation.
The two leaders also discussed the recently signed first contract for setting up U.S. nuclear power plants in India.
The new agreements are being seen as a high-point in U.S.-India relations with the potential to redefine, if not replace, alliances such as the five-decade Russia-India pairing. During the Cold War, New Delhi paired with the Soviet bloc.
Over the past decade, India has improved relations with the U.S., including a 2009 initiated strategic dialogue and 26 working groups to discuss issues including strategic cooperation, homeland security, energy and climate change, education, development, economics, trade and agriculture, science and technology, health and innovation.
“I have always believed that India and America are indispensable partners,” Singh told Indian reporters. He went on to list the U.S. as one of India’s most important trading partners, an important provider of investment and technology support for development.
“We need the United States on our side as we move to give new added trust to our development programs,” Singh said.
The relationship between the two nations is based on strategic and economic issues. India plays an important role in the United States’ rebalance toward the Asia-Pacific region.
The increasing trade between India and the U.S. is helping to strengthen relations between the two countries.
“U.S.-India bilateral trade in goods and services grew from $59.9 billion USD to $92.5 billion USD between 2009 and 2012,” it said.
Singh and Obama expressed confidence that “there are no insurmountable impediments to bilateral trade increasing an additional fivefold.”
In July, U.S. Vice President Joseph R. Biden, on a visit to New Delhi, asked India to take fresh initiatives to remove trade barriers and inconsistencies in its tax regimes.
Obama expressed confidence in the ongoing Indian economic reforms and policy measures to liberalize the economy. India is one of the fastest-growing sources of investment into the United States. Indian foreign direct investment [FDI] in the U.S. increased from $227 million USD in 2002 to almost $5.2 billion in 2012 USD. U.S. investment in India was more than $28 billion USD in 2012, according to the White House.
Defense cooperation could rewrite alliance
The U.S. and India have made progress on defense cooperation. A new initiative could rewrite the rules of the alliance. Washington has offered to open its defense manufacturing sector and allow New Delhi access to cutting-edge technologies and has backed it with an offer to co-produce and co-develop military hardware.
India has co-development contracts for fighters, missiles and transport planes with Russia and on specific missiles with Israel and France.
Since 2009 the U.S. has sold military equipment valued at $9 billion to India and is looking to change the dynamics of the relationship.
As part of the new initiative, the two counties said they consider each other close partners and cemented their new relationship.
“This principle will apply with respect to defense technology transfer, trade, research, co-development and co-production for defense articles and services, including the most advanced and sophisticated technology,” the declaration states.
Singh and Obama are satisfied with the progress in defense relations and said they want more intensive defense cooperation.
Both countries said they will continue to work toward achieving the full vision of expanded defense cooperation set forth in the 2005 New Framework Agreement, the cornerstone of U.S.-India relations.
U.S. supports India in exclusive export control regimes
The U.S. has vowed to support India’s full membership in the four international export control regimes, which would improve technology sharing. India’s request to join arose at the Nuclear Security Summit in Seoul in March 2012. These regimes are the Missile Technology Control Regime – for items relevant for missile systems; the Australia Group – for dual-use items relevant for chemical and biological weapons; the Nuclear Suppliers Group – for items in the nuclear area; and the Wassenaar Arrangement – for armaments and dual-use items related to the area of conventional armaments.
New Delhi is also seeking a permanent seat in the United Nations [UN] Security Council.
“The United States looks forward to a reformed UN Security Council with India as a permanent member,” the Joint Declaration said.
First contract on nuclear power in India
The nuclear sector had strained ties between the two countries. Despite the U.S. having allowed India to use nuclear energy for civilian applications, companies from France and Russia had made early inroads into the growing nuclear power sector. Biden spoke about the nuclear agreement at the Bombay Stock Exchange in Mumbai.
“It’s important that we complete the first agreement between American companies and the Nuclear Power Corporation of India,” he said.
In Washington, U.S. and India announced negotiations between U.S. companies and the Nuclear Power Corp. of India [NPCIL] are proceeding. Obama and Singh welcomed the announcement that NPCIL and the Westinghouse have concluded a preliminary contract to develop a nuclear power plant in Gujarat in India.
The U.S. Nuclear Regulatory Commission [NRC] and the Indian Atomic Energy Regulatory Board [AERB] intend to sign a memorandum of understanding [MoU] for the exchange of technical information regarding nuclear safety issues.
More focus on Indian Ocean Region
The United States and India also agreed to focus on the Indian Ocean Region [IOR]. The U.S., India, Japan and other Asian countries have sea-trade backed economies and have expressed concern about safety of the Sea Lines of Communication [SLOC].
“It was agreed to expand consultations to include a dialogue on the Indian Ocean Region, to deepen coordination on cross-cutting issues including maritime security and conservation of natural resources,” the joint statement said.
The U.S. has noted India’s “Look East policy” of strengthening ties with Southeast Asian countries. Obama and Singh expressed a desire “to partner more closely with other Asia-Pacific countries, including greater coordination with Japan, China and ASEAN, among others, including through the evolving institutional architecture of the region.”
On Afghanistan the joint statement narrated the strategic partnerships the U.S. and India have formed with that country.
“Violent extremists continue to pose challenges to Afghanistan’s security and stability … India and the United States will remain committed to contribute to peace, stability, and development in Afghanistan during the critical transformation decade [2015-2024].
By Sushil K. Singh
2013/10/11
