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Modi's US trip

Mahesh JhaSeptember 26, 2014

Indian Prime Minister Narendra Modi begins his long awaited US trip on Friday aiming to mend ties soured by the arrest of an Indian diplomat last year and to reboot a frequently troubled relationship with Washington.

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Indian Prime Minister Narendra Modi waves as he leaves after the commissioning of the Indian Navy's newly-commissioned warship INS Kolkata in Mumbai on August 16, 2014 (Photo: PUNIT PARANJPE/AFP/Getty Images)
Image: Punit Paranjpe/AFP/Getty Images

During the five-day visit Indian Prime Minister Narendra Modi has more than 50 meetings, speeches and dinners on his agenda. The highlight is without doubt his talks with US President Barack Obama, which will be a first official meeting of the two men. Both Modi and Obama view their countries as strategic partners but relations between the oldest and biggest democracies of the world have never been easy and have been tense ever since the days of the Cold War.

Now a major hurdle needs to be overcome. For many years Modi was denied a visa by the US for his alleged role as chief minister in religiously-motivated rioting in his home state of Gujarat in 2002. The US not only denied him a visa but also refused to engage with him as Chief Minister of India's most industrialized state.

After Modi's victory in the parliamentary elections in May 2014 the US was at loss about how to deal with him. Even Indian government officials had little idea how Modi would react. But Modi himself paved the way for a restoration of ties by declaring - after a congratulatory telephone call from Obama – that bilateral relations are not between individuals but between countries. Former Indian ambassador in Germany TCA Rangachari says, "That reaction and the visit itself have put the issue of visa denial behind (the two countries)." Still he warns, it is clearly something that will not be forgotten.

US Secretary of State John Kerry and Indian Prime Minister Narendra Modi (2nd R) shake hands as they are flanked by US Secretary of Commerce Penny Pritzker (L) and Indian External Affairs Minister Sushma Swaraj (R) at the Prime Minister's residence in New Delhi August 1, 2014 (Photo: REUTERS/Lucas Jackson)
Experts say that Kerry's trip to India last month provided a window of opportunity for both Washington and New Delhi to re-launch their partnershipImage: Reuters

And Mr. Modi is not known to forget things. He is quite clear in his mind that as prime minister of India, he represents the collective interests of the Indian people. And India needs the United States to help it fast track economic reforms and to create jobs for its young population, the very people who voted him into power. Thus, Modi is aiming to remove the many irritants that are hampering relations at the present and to create new bonds. In this way he hopes to attract large scale investments to India in the next ten to fifteen years. That would also be a first for an Indian prime minister.

But to achieve this, many problems must be addressed. For instance, many Indian companies involved in nuclear and space programs are facing American sanctions or other restrictions. Rangachari complains that Washington does not appear willing to treat India as a true partner in the international community despite its commitment to the same goals. Although the US facilitated India's entry into the nuclear club, American companies have been reluctant to invest in India. On the other hand, limitations imposed on the number of visas for IT company staff have affected India's service industry. India is also unhappy about the social security contributions levied by the US authorities on Indian employees who work in the US for a short period because the staff are never recompensed.

Just before Modi's trip to the US, India officially started its campaign to attract foreign investment under the motto "Make in India." The Modi government's catchword is red carpet instead of red tape. India plans to push investment in the manufacturing sector by removing bureaucratic hurdles and lowering taxes. Unlike China or other South Asian countries India's manufacturing sector is not very strong. At the moment it contributes only 18 percent to GDP.

Former parliament member Shahid Siddiqui is confident that Modi's endeavors during his US trip will ease tensions between the two countries. Modi's fundamental objective is to get immediate support to rejuvenate the Indian economy. This is the precondition for a successful tenure as prime minister. But Modi is not looking just to the US. He has done the groundwork before embarking on the US visit by travelling to Japan and hosting Chinese President Xi Jinping in India. In doing so he has already won commitments for large scale investments in India. Siddiqui feels that Modi will be able to get the Americans on board, "Modi is a better bargainer because he knows what he wants and he is his own master, he has an absolute majority in parliament and he is not answerable to anyone," he says.

US goods and services trade with India amounted to 93 billion USD in 2012. India was 18th largest export market for the US and 10th largest supplier of goods. As both countries aim to expand bilateral trade, Shahid Siddiqui highlights the need for increased cooperation in the agricultural sector, "India needs another green revolution and the US can supply agro-technology and dry land farming techniques."

Rangachari underlines the potential which closer cooperation offers: "The United States has always been important in the game of things in India. The US today in the West is the predominant economic power." It is not only a large market for India it has also got a very big overseas Indian community. Former Prime Minister Atal Behari Vajpayee called the US a natural ally. Now the biggest challenge of Narendra Modi is to make that happen. His chances of success have improved considerably in the last few months.

From Narendra Modi's perspective, this visit is already a triumph because he – a man regarded as a pariah by the US for over a decade – will now receive red carpet treatment. But the visit is also likely to produce a number of surprises and evidence that Modi is his own man. Apart from his preference for speaking Hindi, news is making the rounds that he may also adhere to the fasting requirements of his Hindu religion, even during the presidential dinner and the official lunch. And that would be another first for Narendra Modi.