Note4students
Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
From UPSC perspective, the following things are important:
Prelims level: The United States-India Science Technology and Endowment Fund
Mains level: Different areas of bilateral cooperation that can significantly increase economic growth in both the countries.
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India and the US are facing similar economic challenges
- Both countries need to rapidly create new jobs, move people into the middle class and keep them there,
- and take advantage of the opportunities that globalization can bring while mitigating its challenges to sustainable domestic growth and strong and equitable democratic societies
- Contending with these challenges will require effective domestic economic policies that address not just interest rates and investment, but also healthcare and education
The US-India economic relationship has a strong foundation
- Bilateral trade has more than doubled since 2006, reaching $115 billion in 2016
- The same year, there was $32.9 billion US foreign direct investment (FDI) in India, and in 2015 there was $12.1 billion Indian FDI in the US
- Through a coordinated strategy of investment and innovation, a smart US-India economic partnership can help each country improve the condition of its people
Three areas of bilateral cooperation in particular that can boost economic growth in both countries
FIRST: The two countries must invest in infrastructure
- According to finance ministry, India needs to invest $1.5 trillion over the next 10 years to meet its infrastructure needs,
- while the US department of transportation estimates that an additional $800 billion is needed in the US for bridges and roads alone
- To this end, the US department of treasury has been providing technical assistance to help the Pune municipal corporation issue municipal bonds
- By expanding this programme, more cities around India could fund their infrastructure needs
- Both countries should hold institutional investor summits to facilitate private sector investment in each other’s infrastructure
- This focus can boost long-term economic growth and job creation in both countries
SECOND: Need of innovative ways to contend the changing landscape of employment
- As the nature of work changes, creating jobs requires innovation in addition to investment
- By holding a bilateral dialogue focused on the future of work, policymakers, entrepreneurs, technology experts, and community leaders can address employment trends
- and community needs to refine policy solutions that leverage the changing nature of work to create stable, well-paying jobs and empower citizens
The United States-India Science Technology and Endowment Fund - The two countries should also expand this fund
- It funds research on supporting healthy individuals or empowering citizens through technology conducted by US-Indian teams, with an emphasis on the marketability of the research outcomes
- This research can be the basis of building the digital infrastructure necessary to help people find jobs and skills training
THIRD: Importance of subnational(state-to-state) cooperation
- While the Indian ministry of external affairs already has an office focused on subnational issues, the US department of state should re-establish and strengthen the office it once had focused on subnational cooperation
- In addition, large states and cities should create their own offices of international affairs,
- and work with the foreign ministries to connect one another with technical training, capacity building, and best practices