Obama-Modi bonhomie gets reality check

Published January 27, 2015
India's Prime Minister Narendra Modi (L-R), US President Barack Obama, India's President Pranab Mukherjee and Vice President Mohammad Hamid Ansari attend the Republic Day parade in New Delhi January 26, 2015.— Reuters
India's Prime Minister Narendra Modi (L-R), US President Barack Obama, India's President Pranab Mukherjee and Vice President Mohammad Hamid Ansari attend the Republic Day parade in New Delhi January 26, 2015.— Reuters

NEW DELHI: What is another speech between friends? President Barack Obama’s tart query as he began to address a meeting of American and Indian business captains on Monday evening revealed a hint of possible overexposure. If there was doubt, he told Prime Minister Narendra Modi albeit humorously that he wouldn’t be surprised if the host was bored after the hours they spent together watching India’s Republic Day parade.

Following a welcome speech by Mr Modi, in which he wooed American capital, the president came straight to the point. “There are still too many barriers, hoops to jump through,” Mr Obama said. “We hear this consistently from business leaders such as you.” Where they hugged each other over the last two days the leaders ended the day with a gracious handshake.

“Of all US imports, just 2 per cent come from India and of all US exports, about 1 per cent go to India — that’s 1 per cent to a billion people... US trade with India is $100 billion as compared to $560 billion with China,” Mr Obama said as he underscored “untapped potential” bet­ween the two countries. “We must do better,” he added.

To shore up bilateral trade, Mr Obama announced $4 billion in government-backed investments and lending to India — $1 billion to be used to finance exports of ‘Made-in-America’ products, while another $1 billion will be made available to small and medium-sized enterprises in underserved rural areas of India. Investment worth $2 billion will be committed for renewable energy in India, President Obama told a gathering of 50-odd top business leaders.

Read: Modi, Obama announce nuclear breakthrough after talks

Even as he goaded Delhi by contrasting India’s feeble business ties with his country as opposed to flourishing Sino-American trade, Mr Obama had already annoyed Beijing and Moscow with his utterances in Delhi. While his criticism of Russian President Vladimir Putin’s Ukraine policy on Sunday was largely ignored by his quarries, his plans to involve India in the South China Sea imbroglio drew a sharp response from Beijing.

Reports quoted China on Monday as critiquing the India-US joint statement referring to the disputes in the South China Sea, saying that only the involved countries should work together to resolve the problems.

The reaction from the Chinese foreign ministry to the “US-India Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region” was brief but sharp, The Hindustan Times reported from Beijing.

“We have made our position clear on this issue many times. China is staunch supporter promoter and contributor to regional peace and stability. We believe relevant disputes should be resolved by parties directly concerned through peaceful talks and consultation,” Hua Chun­ying, foreign ministry spokes­person said at the regular press briefing on Monday.

Also read: Rain fails to dampen cheer as Obama attends India parade

China is involved in maritime disputes with several countries in the South and East China seas over the ownership islands, said to be sitting on huge reserves of oil and gas.

Hua said China was closely following President Barack Obama’s visit to India and hoped that it could contribute to peace and prosperity.

“At the current stage, the situation in the South China Sea is generally stable and there is no problem with navigational freedom and freedom of flights,” she said.

“Regional prosperity depends on security. We affirm the importance of safeguarding maritime security and ensuring freedom of navigation and overflight throughout the region, especially in the South China Sea,” the Indo-US statement said on the situation.

See pictures| Obama's visit to India: Of handshakes and hugs

On the issue of India joining the Nuclear Suppliers’ Group (NSG), she said India was welcome to join the NSG provided New Delhi fulfils all the required conditions.

“New members have to follow certain rules,” the foreign ministry spokesperson, said at the regular press briefing on Monday.

Hua added that the expansion of the group, of which China is a member, needed detailed discussions and consensus among the members.

The Hindustan Times said Hua played down the thinking in certain circles in China that the US was attempting to use India to contain China.

“I do not think that kind of cold war mentality will work in the 21st century. And, India too is unlikely to be part of any such alliance,” Hua said.

She added that Indo-China relations have seen a major upswing in the last year.

With foreign minister Sushma Swaraj slated to be in Beijing later this week that bilateral interaction between the two countries is likely to intensify.

Top Chinese leaders on Monday congratulated their Indian counterparts on the occasion of 66th Republic Day, pledging closer ties.

In his message to Indian President Pranab Mukherjee, Chinese President Xi Jinping said both China and India, as two ancient civilisations, were pursuing a “great dream of national rejuvenation”.

President Xi was quoted by the official news agency, Xinhua, as telling President Mukherjee that China was “delighted” with India’s achievements.

Published in Dawn January 27th, 2015

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