In Q1 of 2023, US-India Ties See Strong Momentum

Spread the love

It’s only March of 2023, and another high-profile bilateral engagement added to the roster with US Commerce Secretary Gina Raimondo visiting India for the US-India Commercial Dialogue and US-India CEO Forum. Similar to the Trade Policy Forum, the restart of the US-India Commercial Dialogue, the first since February 2019, presents optimistic signs of increasing our bilateral trade from the $157 billion we recorded in 2021.

As I said in a recent statement that our commercial ties have come a long way in the last two decades and Secretary Raimondo’s visit will help open new avenues to further consolidate trade and investment opportunities as we focus on supply chain recovery in a post-pandemic world.

Secretary Raimondo’s visit follows a string of high-level bilateral visits by senior officials. Secretary Blinken’s visit to New Delhi and engagement with G20 Foreign Minister meetings and Quad Foreign Minister meetings reiterated our shared commitment to securing a peaceful and open Indo-Pacific.

As India hosts the G20 this year, Secretary Yellen along with G20 Finance Chiefs met with Finance Minister Nirmala Sitharaman in Bengaluru. Secretary Yellen and Finance Minister Sitharaman have echoed how New Delhi and Washington can come together to tackle pressing challenges such as climate finance through public-private partnerships and a deeper framework for digital transactions as India seeks to build on its tech economy.

The optimistic trade dialogue continues through the 2021 restart of the Trade Policy Forum (TPF), and Commerce and Industry Minister Piyush Goyal’s January visit to Washington DC at the invitation of US Trade Representative, Katherine Tai. Minister Goyal and USTR Tai’s joint efforts through the TPF and the Indo-Pacific Economic Framework (IPEF) signal that there is consensus to consolidate the near $160 billion trade relationship and build towards an optimistic target of a trillion in trade over the next decade, as Minister Goyal has mentioned so in our past Annual General Meeting.

Minister Goyal’s visit follows India’s National Security Advisor Ajit Doval’s visit to Washington DC where he met his U.S. counterpart Jake Sullivan and other top US leadership for the first high-level dialogue on the Initiative for Critical and Emerging Technologies (iCET).

Under iCET, both New Delhi and Washington have identified six areas of cooperation including scientific research and development; quantum and artificial intelligence, defense innovation, space, and advanced telecom which would include items such as 6G and semiconductors. This presents a seminal moment for tech companies to focus on semiconductor and critical technology manufacturing. Furthermore, iCET, is an epochal phase in strengthening our defense partnerships through sharing core technologies as Washington recognizes New Delhi as a major strategic defense partner.

On the energy front, India Energy Week epitomized how energy remains a key pillar in the US-India strategic partnership as both Washington and New Delhi converge to tackle climate action with a focus on green energy and the Indian government’s plan to expand green hydrogen production and curb its dependence on energy imports and fossil fuels.

One of the recent highlights of my visit to India was being able to greet the visiting Congressional Delegation led by Senate Majority Chuck Schumer. This is the most powerful Congressional Delegation to India, a sign of the strength and robustness of the strategic partnership between Washington and New Delhi.

In an address, Senator Schumer pointed out that the US-India relationship is the most consequential partnership of the 21st century, and the partnership benefits not only our two democracies, the oldest and the largest respectively but this strategic partnership is a positive force for the rest of the global community.

India’s economy remains a bright spot, with the IMF forecasting 7 per cent growth, while many other global economies suffer headwinds and recessionary trends. India, with a demographic dividend largely under 35 years and a large pool of tech talent, and the sophistication of the American tech economy bode for a deep convergence in cutting-edge fields such as AI, quantum computing, and machine learning and new initiatives like iCET and our focused efforts with the TPF and US-India Commercial Dialogue and US-India CEO forum.

The economic synergy isn’t just at the government-to-government level, but at a core private sector level as demonstrated by Air India’s decision to upgrade and expand by purchasing over 200 American-made Boeing aircraft. President Biden dubbed this as “historic” and said it was a tremendous opportunity to create a million jobs in the U.S., that too in the manufacturing sector, as both India and the United States seek to rejig their manufacturing economies and add economic vitality to mid-tier cities.

There is further good news for our high-level diplomatic engagement as the Senate confirmed Mayor Eric Garcetti as the next US Ambassador to India. Even in the recent absence of an American ambassador in New Delhi, the strength of the partnership, the deep collaboration with new initiatives such as iCET, and enhanced commercial ties have showcased both optimism and certitude in the growth of this relationship. The presence of the US envoy in New Delhi is now expected to nurture a more flourishing US-India relationship.

President Biden and Prime Minister Modi are said to have bilateral meetings on a few occasions this year. The Quad Summit in Australia and the G20 in India, a possible UNGA visit along with a likely state visit by Prime Minister Modi to Washington over the summer present opportunities for dialogue continuity.

2023 is the year we can expand this relationship and the recent visits provide the impetus and the need to further build on the momentum we have achieved so far.

Read all the Latest Business News here

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.