All that India benefits from Obama's visit

All that India benefits from Obama's visit

Introduction:

For the first time in history, an American president witnessed the Indian Republic Day Parade in New Delhi as the guest of honour. Prime Minister Narendra Modi definitely went way ahead to strengthen the ties between the two nations when he invited President Barack Obama over who affirmed similar intentions by accepting the invitation. Amid the enthused crowd in Delhi, the two leaders known to have forged chemistry and close friendship, sat in a bullet-proof chamber for two long hours watching the event with a genuine smile enticing the pleased mob. India is truly honoured by the presence of a charismatic personality on the auspicious occasion.

The advantages:

1. The growing chemistry between Modi and Obama, the discussion over a cup of tea, the informal approach with which they address each other, that ease we see when the two leaders converse is a sign that the relations between India and US has grown stronger and in days to come it will grow even stronger. This is good news for both the nations sharing mutual objectives.

2. There is an anticipated gesture that the two countries shall be coming together to co-produce military tools and that there would be reforms in the Indian nuclear liability law which prevents American companies wanting to spread their wings in India. Nothing in detail has been released in this respect but surely there is going to be reforms for good in days to come.

3. The nuclear pact that been agreed in 2008 was kept at halt due to Indian laws on liability over any accidents. Now it has been confirmed that a large insurance pool will be set up, without the need for any further legislation. US ambassador Richard Verma said, "It opens the door for US and other companies to come forward and actually help India towards developing nuclear power and support its non carbon-based energy production."

4. Climate changes and its influences captured a part of their conversation wherein India agreed to cap its carbon emission range. India ranks third in the list of total carbon emitter of the world, though its per capita emissions are a fraction of those of the West. India had till now ignored calls for a cap to emissions, with the view that with millions of its citizens living off a dollar or two a day, its economic development must be a priority. The new formed ties are expected to bring about changes in this font soon.

5. They together agreed to increase their bilateral trade five times, from the current $100bn (£66.7bn) a year. The US will also sell more military hardware to India. Obama has from time to time stressed the interests in more trade and investment amongst the two countries. Towards the end of the day, president Obama pledged of $4 billion in investments and loans, seeking to release the "untapped potential" of a business and strategic partnership between the world's largest democracies.

6. At a joint press conference, Mr Modi said the two countries were "starting a new journey" based on "renewed trust and sustained attention". There are also positive hopes as the two nations would increase cooperation on defence projects and on eliminating terrorist safe havens and on bringing terrorists to justice.

7. Obama said that U.S. Export-Import Bank would finance $1 billion in exports of 'Made-in-America' products. The U.S. Overseas Private Investment Corporation will lend $1 billion to small- and medium-sized enterprises in rural areas of India. Regarding renewable energy, a key focus for Modi, $2 billion will be committed by the U.S. Trade and Development Agency for renewable energy.

8. China's territorial claims is a major concern and to tackle this issue Modi and Obama stated their commitment to freedom of navigation in the South China Sea. This could be a big game changer hitting China hard with their bond. US also no longer has China in the good books and India has its own issues with them. The two coming together is a news that China would not celebrate upon. In a joint statement they said, "The leaders agreed to exchange information on individuals returning from these conflict zones and to continue to cooperate in protecting and responding to the needs of civilians caught up in these conflicts."

9. The two countries have also agreed to a 10-year framework for defence ties and struck deals on cooperation that included joint production of drone aircraft and equipment for Lockheed Martin Corp's C-130 military transport plane.

Conclusion:

US-India ties have seen a new seal of bond with this honoured visit of president Barack Obama along with First Lady Michelle Obama. The close friendship between the two leaders show good hope of bridging many other gaps between the two nations. Their trade and investments are a big boost to India's economic development. Along with Modi wave, the much anticipated development wave could actually see an action in progress.