The Hon’ble President of the United States of America, Mr. Barack Obama and the First Lady Michelle Obama marked a three days historic visit to India (25th -27th January 2015) to grace the India’s 66thRepublic Day as the Chief Guest. Mr. Obama is the first U.S. President to have been invited as the Chief Guest for India’s Republic Day in addition to being welcomed by a Guard of Honour. During his visit, the President attended the event with his wife; made crucial talks with hon’able Prime Minister of India Shri Narendra Modi at Hyderabad House; addressed the India-US CEO Forum; delivered a national address to students and shared his thoughts together with Shri Narendra Modi on Mann Ki Baat. During this visit, the two leaders assessed the extensive bilateral strategic and global partnership between their two countries and pledged to continue to enhance cooperation across the spectrum of human endeavour to better their citizens’ lives and that of the global community.
A brief details of the key developments during three days’ visit of President Obama in India is stated here below:
KEY ANNOUNCEMENTS
1. “Indo-US Civil Nuclear Deal”
India and the United States achieved a landmark break-through on operationalisation of the civil nuclear deal. This is one of the most important decisions taken as it broke the deadlock on Civil Nuclear deals, which was stuck since last decade between the two nations. India agreed to amend few of it’s clauses related with Insurance, and in return US pledged to make it go live. India has created an Insurance pool worth Rs 750 crore led by General Insurance, and contributed another Rs 750 crore to make the insurance regulations stronger. The finalization of nuclear deal between the two nations would pave the way for stalled nuclear projects in the coming times.
2. “Renewal of Defense Pact”
Under the purview of deepening defence and security cooperation, the two leaders principally agreed to renew the ‘New Framework for India-US Defense Relationship’ for another 10 years, wherein co-development and coproduction of specific advanced defence projects would be pursued. This would enhance the joint production of defence equipements in India and bolster the India’s defence industrial base. In addition both leaders had expressed their mutual interest in exploring cooperation in other areas of advanced defense technologies and maritime security.
3. “Climate Change”
The two leaders agreed to a number of important steps to promote clean energy and confront climate change. President Obama offered to support financially India's ambitious target of solar energy and sought PM Modi's support at global climate talks in Paris later this year. India is seeking investments of US$100bn over 7-years period to boost the country’s solar energy capacity by 33 times to 100,000 megawatts. In addition, the two leaders have agreed to work together and combat climate change by cooperating to reduce air pollution in Indian cities and increase finance and technology for India's renewable energy target.
4. “Economic Ties”
The two nations have agreed to resume dialogue on Bilateral Investment Treaty (BIT) which aims to protect private investment, to develop market-oriented policies in partner countries, and to promote domestic exports. Presently, the bilateral trade between the two nations is around US$62bn and is expected to grow beyond US$100bn by 2018. In addition, the two sides agreed to resume talks on Totalization Agreement that will help Indian workers in the US get annual refunds of around US$3bn worth of social security contributions they make.
5. “New Initiatives of US$4billion”
During the CEO Forum, President Obama announced the US$4bn investment in India including US$1bn for financing exports from US to aid Make-in-India programme, US$1bn for small and medium industries and US$2bn in renewable energy projects. US Government’s business development and finance arm: U.S. Overseas Private Investment Corporation (OPIC) will give an assistance of US$1 billion for Micro-SMEs and SMEs from rural and urban India. This decision was made to encourage entrepreneurship and business, along with technological assistance. U.S. Export-Import Bank will provide an assistance of $1 billion for Make in India campaign launched by PM Modi, which will help made in India products to be exported to US and increasing trade relations in this sector. US Trade & Development Agency will pitch in with US$2 billion investments in the renewable energy sector in India, which includes Solar Power and Wind Energy to help India solve its energy crisis, and to bring down costs related with power production using traditional means.
6. “Intellectual Property Rights & Tax Regime”
President Obama expressed concerns over issues pertaining to Intellectual Property Right (IPR) and unstable tax regime in India. PM Modi promised to upgrade the laws related with IP protection, an open business environment and predictable tax regime so as to boost Indo-US trade relations.
7. “Trade Ties”
The leaders of the two nations said that they will establish several bilateral mechanisms to identify opportunities to boost business, trade and investment ties. The two economies have targeted to increase the Indo-US bilateral annual trade to US$500bn by 2025.
8. “Smart Cities”
US has lended its support to India for development of smart cities whereby the United States Trade and Development Agency (USTDA) signed 3 Memorandums of Understanding (MoUs) on Cooperation to Support the Development of Smart Cities in Uttar Pradesh , Rajasthan and Andhra Pradesh with respective state governments. The USTDA will contribute funds for feasibility studies and pilot projects study tours, workshops or trainings and other projects which would be determined mutually.
9. “Asia-Pacific and Indian Ocean Region”
The two leaders also agreed to a new vision for the Asia pacific so as to do more together to advance shared security and prosperity in this critical region. To support regional economic integration, India and US have agreed to promote accelerated infrastructure connectivity and economic development in a manner that links South, Southeast and Central Asia, including by enhancing energy transmission and encouraging free trade and greater people-to-people linkages.
10. “US India Strategic and Commercial Dialogue”
A high level US India Strategic and Commercial Dialogue has been created which will help break the red-tape logjams in India. This high level committee will ensure that all Indo-US trade decisions and investment plans are accomplished fast track, and there are no delays.
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