PRESIDENT OBAMA'S VISIT IN INDIA IS GOING WELL, BUT was long overdue. The meeting between the leaders of the two great democracies follows months of negotiations between diplomats, business leaders and military personnel. With the state of the world as it is, it was time.
Indian businesses are ready to invest in the United States by either opening companies or by expanding existing ones. Much like Japan-based automakers in the 1980s- they faced opposition from a hostile Congress and labour unions. Adding insult to injury, Indian businesses also face the incorrect American view that Indian investment is taking jobs out of the US. With US unemployment at 10%, America desperately needs this investment.
With a new Congress being sworn in during January, expect Indian businesses to see improvement. One reason why President Obama is bringing so many business people with him on his trip is to highlight the increased trade between the two countries- as well as sell sell sell.
The Boeing aircraft deal alone (Boeing is headquartered in the President's hometown of Chicago) will create thousands of American jobs.
But India gets jobs to…the easing of investment restrictions, the talks about visa requirements, and the public relations alone will be a gold mine for India.
As an emerging powerhouse with strong economic growth forecast, India will do well to strengthen its economic relationship with the US and divest itself of this misguided protectionist talk in America once and for all.
Expect to see a friendlier Congress to Indian investment, and even states (let alone individual congressional districts) competing for those Indian investment dollars.
To wit, the last time Toyota negotiated to build another auto plant — no fewer than four states competed for that investment. Toyota got a good deal featuring several large tax breaks, and the local economy of the lucky state (Indiana) will have thousands of new, well-paying jobs.
The diplomats have been talking these past few months, exchanging dinner invitations, working on solutions, "Have your deputy attaché call my deputy attaché"-type greetings…and for what?
India and the US suffered greatly from 26/11 and 9/11. The US knows that for India to prosper, Pakistan must become a stable nation. India knows that the US doesn't have the perfect track record of seeing things through.
India must do what is right for India, and the US for itself. Who was it that said, "Nations don't have morals, nations have interests"? But…India and the US do have morals as well as common interests. People have rights in each country.
India is spot on to press the President on issues of security — and it has. The US understands India's concerns. To make public every last one of these diplomatic negotiations would be dangerous, and counter-productive.
Which brings me to this point — the US has shed blood trying to stabilise the Af-Pak region. President Bush was, and President Obama is, outspoken about stabilisation — even to an unsupportive American public. The US military must see this stabilisation through, or it will come back to haunt the US and India.
Arms sales to India are part of this effort, as well as intelligence exchanges and better cooperation between our forces. But India should not let up. America too is a democracy, and I would argue one with a checkered past of making the right calls. Candidate Barack Obama knew thishe was against the US getting involved in Iraq two months before the bombs dropped.
The US has its share of disagreements with friends. As an American, every day I read about some issue between Canada or Mexico. Sometimes, it's ugly. But that is what friends do — they argue, they learn, they grow. Democracies do that to one another. I look forward to many arguments with India — and I will bet on her, because India has a strong democratic foundation and is rising.
(The author is Barack Obama's chief campaign manager)
Pete Dagher
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