Indo-US relations gaining further ground

The recent decision of America to supply F-16 aircraft to Pakistan has caused disappointment in India. Over and above, America's objection to India's proposed gas pipeline through Tehran was not received favourably in New Delhi either. The Bush administration has raised objection to a proposed $4 billion gas pipeline running from Iran through Pakistan to meet the growing energy needs of India. India sees the pipeline project as a boost in its rising competition with China for energy resources while America is concerned about Iran's ongoing pursuit of nuclear programmes. America, which is at odds with Iran warned that India would face Iran-Libya Sanctions Act if it goes ahead with the project. India signed a 25 year contract with Iran last year for the supply of 7.5 million tons of liquefied natural gas.

Instead of ten minutes President Bush had more than thirty minutes tete-a-tete with India's External Affairs Minister in an effort to soothe "ruffled Indian sentiments" over the sale of F-16 fighter planes to Pakistan, and to reiterate America's position in the sub-continent which in no way signals a shift in the policy towards world's largest democracy.

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As reported by news media, President Bush said America held "India as a global power" and wanted to work together for mutual economic benefit and cooperate in the civilian nuclear and other energy sectors. Natwar Singh's meeting with President took place before the meeting with Condoleezza Rice, Secretary of State in violation of normal diplomatic practice which signals America's interest to have best of relations with the growing power in Asia. It is also interesting to note that Natwar Singh's visit to Washington immediately after the visit of Chinese prime Minister to India could be interpreted as to apprise a friend, America, of the outcome of the visit and its implication. During the course of the meeting President Bush has expressed his desire to pay a visit to India sometime this year.

It was agreed by both the countries to accelerate the process of the next step in strategic partnership envisaging cooperation in civilian space and nuclear technology, high-tech trade and missile defence. The two countries are determined to take the partnership to wider scale. This initiative was undertaken last year. On the Indo-American cooperation on space, Indian Foreign Minister said that it highlights the technology bond that is a special characteristic of bilateral ties between the two countries.

India and America have developed good trade relations. In 2004, India's exports to America stood at $14328 million. Last year America exported to India to the tune of $5532 million. Therefore, balance of trade is in favor of India. (Source: US Department of Commerce)

Meanwhile, India's Petroleum and Natural gas Minister Mani Singh Aiyar had meeting with America's Energy Secretary Samuel Bodman to seek America's support to explore avenues for gas and oil fields in India. Aiyar also held a conference in Houston where several major American oil companies attended. Bilateral contacts at civil, military and minister level between India and America have been continuing well. Latest exchange of visit of Condoleezza Rice, Secretary of State of America and Natwar Singh, India's Minister for External Affairs is the glaring example.

Apart from collaborating in New Steps in Strategic Partnership (NSSP) and India-US High Technology Cooperation Group (HTCG), India and America signed a landmark Open Skies air transport agreement on January 15 this year. This agreement allows airlines to make commercial decisions with minimal government intervention and provides for open routes, marketing arrangements, including code sharing. The two countries are discussing the possibility of India joining the Proliferation Security Initiative, which was announced by President Bush in Poland in 2003, to interdict passage of weapons of mass destruction to 'rogue states' and other groups.

Military to military cooperation remains one of the most proactive aspects of the transformation in the bilateral relations between the two countries. America has shown interest in investment in India, but India's reforms efforts in liberalisation of trade and investment environment have proceeded at a snail's pace which has caused hindrance in investing in India on a massive scale. BJP government had expressed its willingness to encourage further economic development in India by reducing trade barriers and encouraging foreign participation in economic development, but Clinton administration did not take advantage of the opportunity. On the other hand, American administration was insisting on "unrealistic labour and environmental standards and by relying solely on WTO mechanisms to reduce India's barriers to trade." The present Congress government, however, assured America of moving ahead with regard to trade liberalisation, elimination of subsidies, and tax reforms.

The formation of new Senate Caucus on India in April, 2004 with Senator John Comyn and Senator Hillary Clinton as co-chair will push forward the bilateral relations between India and America to a higher level to the mutual benefit of the people of the two countries. Both President Bush and Indian Prime Minister Manmohan Singh expressed their desire to strengthen the existing relations which they described "had never been as close as they are at present" at the end of their meeting on September 21, 2004 at the United Nations.

Mohammad Amjad Hossain, a former diplomat, now resides in Virginia, USA