[op-ed snap] For the sake of the Indo-Pacific

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Mains Paper 2: IR | Effect of policies & politics of developed & developing countries on India’s interests, Indian diaspora.

From UPSC perspective, the following things are important:

Prelims level: Rohingya crisis, Doklam issue, Paradip port, India’s position in Indo-pacific

Mains level: India-US relationship and way forward


Context

  1. US Secretary of State Rex Tillerson’s visit to New Delhi this week
  2. Visit comes at an important moment for both countries and governments

Relationship between India and USA

  1. The US-India relationship occupied high priority and visibility during the Obama administration
  2. The Donald Trump administration, too, has shown its commitment to the relationship, hosting Prime Minister Narendra Modi in Washington DC, earlier this year

Political and security challenges across the Indo-Pacific region

  1. These range from mounting tensions with North Korea, the Rohingya crisis, and India’s own standoff with China over Doklam to the lingering challenges in Afghanistan
  2. The US and India will increasingly need to work together on these
  3. The geo-economics of the Indo-Pacific are as important as the region’s geopolitics
  4. There is a need to put options on the table in order to encourage private capital and cutting-edge technology to invest in the region

US-India commercial ties 

  1. These have seen an uptick in recent years with PM Modi’s market-oriented reforms
  2. India is currently the US’ ninth largest goods trading partner
  3. India is also one of the fastest growing sources of foreign direct investment in the US, at nearly $11 billion
  4. In a groundbreaking development illustrating growing economic convergence, the US delivered its first shipment of crude oil to the Paradip port a few weeks ago
  5. While two-way trade, and investment, between the two countries has increased significantly in the past five years, there is much room to expand the economic partnership

Challenges that American businesses encounter as they compete in the Indian market

  1. Market access barriers for medical devices,
  2. Tariff and non-tariff barriers on ICT products and agricultural goods,
  3. Lack of a strong intellectual property framework that benefits innovation and entrepreneurship

What India desires?

  1. On the US side, movement — even incremental — on a totalization agreement would be a welcome relief for temporary Indian workers and Indian companies from paying an annual social security payment

Shifts in the global economic order by 2050

  1. A recent report predicts dramatic shifts in the global economic order by 2050
  2. Six of the seven largest economies will be emerging economies led by China and India

Importance of economic linkage with the US

  1. India’s position in a part of the world that contains the most important trade corridors necessitates deeper economic linkage with the US
  2. It is crucial for India to be able to develop its infrastructure, attract capital and cutting-edge technology, grow its economy and advance opportunities for its people
  3. India will only benefit by working with American businesses in order to attract private investment in a way that follows global standards for international development
  4. A fully realized US-India economic partnership is necessary to accomplish this
Foreign Policy Watch: India-United States
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