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Business News/ Politics / Policy/  Joint statement: Where Modi, Obama found common ground
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Joint statement: Where Modi, Obama found common ground

India and the US outline a slew of measures to inject new dynamism into their strategic partnership

In a bid to address a recent slide in ties, Prime Minister Narendra Modi emphasized the priority India accords to its partnership with the US, while US President Barack Obama recognized that India’s rise as a friend and partner is in the US interest. Photo: PTIPremium
In a bid to address a recent slide in ties, Prime Minister Narendra Modi emphasized the priority India accords to its partnership with the US, while US President Barack Obama recognized that India’s rise as a friend and partner is in the US interest. Photo: PTI

New Delhi: India and the US on Wednesday outlined a slew of measures to inject new dynamism into their strategic partnership, pledging to cooperate in areas ranging from defence, trade and finance to infrastructure and smart cities development in India and to deepen existing dialogues on counter terrorism and regional issues.

In a bid to address a recent slide in ties, Prime Minister Narendra Modi “emphasized the priority India accords to its partnership with the US, a principal partner in the realization of India’s rise as a responsible, influential world power," while US President Barack Obama “recognized that India’s rise as a friend and partner is in the US’s interest," said a joint statement released at the end of Modi’s five-day visit to the US.

With two-way trade clocking fivefold growth since 2001 to nearly $100 billion in 2013-14, both leaders decided to initiate steps that would boost trade by another fivefold, the statement said without mentioning a deadline for the target.

“In order to raise investment by institutional investors and corporate entities, the leaders pledged to establish an Indo-US investment initiative led by the ministry of finance and the department of treasury, with special focus on capital market development and financing of infrastructure. They pledged to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of US companies in infrastructure projects in India," the statement said, adding that Modi and Obama had “committed to work through the Trade Policy Forum to promote a business environment attractive for companies to invest and manufacture in India and in the US."

There will also be talks early next year under the aegis of the commercial dialogue on “new areas of cooperation, including innovation in advanced manufacturing," the statement said. “The two countries plan to work expeditiously through several joint initiatives to facilitate greater confidence in cross-border trade and investment," it added.

The US government welcomed India’s offer to US businesses to be the “lead partner" in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh), the statement said. India would be hosting two US trade missions next year focused on meeting India’s infrastructure needs with US technology and services, the statement said.

In the railways sector, where India is looking to modernize outdated infrastructure and recently allowed 100% foreign direct investment (FDI) for its upgradation, both countries “underlined the important contribution that US locomotive technology, equipment to monitor rail system assets, and US best practices can play in modernizing India’s vast railway network, including accessing programmes of US Trade and Development Agency in this work."

“The leaders discussed their concerns about the current impasse in the World Trade Organization (WTO) and its effect on the multilateral trading system, and directed their officials to consult urgently along with other WTO members on the next steps," the statement said, referring to India’s move in July to block the trade facilitation agreement because of lack of movement on India’s demands on food security subsidies.

On energy ties, India and the US “reaffirmed their commitment to implement fully the US-India civil nuclear cooperation agreement," the statement said adding that both sides “established a contact group on advancing the implementation of civil nuclear energy cooperation in order to realize early their shared goal of delivering electricity from US-built nuclear power plants in India." The two leaders “looked forward to advancing the dialogue to discuss all implementation issues, including but not limited to administrative issues, liability, technical issues, and licensing to facilitate the establishment of nuclear parks, including power plants with Westinghouse and GE-Hitachi technology," the statement added.

In the area of strategic ties, Modi and Obama “stated their intention to expand defence cooperation to bolster national, regional and global security," the statement said, adding: “The two leaders reaffirmed that India and the US would build an enduring partnership in which both sides treat each other at the same level as their closest partners, including defence technology transfers, trade, research, co-production, and co-development."

Both sides welcomed the decision to renew for another 10 years the 2005 framework for the US-India defence relationship and “directed their defence teams to develop plans for more ambitious programme and activities," the statement said. “The two leaders also agreed to reinvigorate the political-military dialogue and expand its role to serve as a wider dialogue on export licensing, defence cooperation and strategic cooperation," it added.

“The leaders reaffirmed their deep concern over the continued threat posed by terrorism, most recently highlighted by the dangers presented by the Islamic State of Iraq and the Levant and underlined the need for continued comprehensive global efforts to combat and defeat terrorism. The leaders stressed the need for joint and concerted efforts, including the dismantling of safe havens for terrorist and criminal networks, to disrupt all financial and tactical support for networks such as Al Qaeda, (Pakistan-based groups like) Lashkar-e Taiba, Jaish-e-Mohammad, the D-Company, and the Haqqanis. They reiterated their call for Pakistan to bring the perpetrators of the November 2008 terrorist attack in Mumbai to justice," the statement said.

On regional issues, both countries agreed to exchanges notes on developments in Iraq and Syria and coordinate efforts in Afghanistan.

“The President and Prime Minister emphasized the need to accelerate infrastructure connectivity and economic development corridors for regional economic integration linking South, Southeast, and Central Asia. The President reiterated that the US, through its New Silk Road and India-Pacific Economic Corridor, is promoting the linkage of India to its neighbours and the wider region to enable a freer flow of commerce and energy," the statement said.

“The Prime Minister and the President reaffirmed their shared interest in preserving regional peace and stability, which are critical to the Asia Pacific region’s continued prosperity. The leaders expressed concern about rising tensions over maritime territorial disputes, and affirmed the importance of safeguarding maritime security and ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea. The Prime Minister and President called on all parties to avoid the use, or threat of use, of force in advancing their claims. The two leaders urged the concerned parties to pursue resolution of their territorial and maritime disputes through all peaceful means,in accordance with universally recognized principles of international law, including the United Nations Convention on the Law of the Sea," it added.

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Published: 01 Oct 2014, 01:16 PM IST
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