Obama pledges 4 billion for India in loans and
investments
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* Two countries agree to a 10-year framework to boost defense ties *
Strike deals on cooperation that include joint production of drone aircraft,
equipment for C-130s January 27, 2015 Daily Times
NEW DELHI: US President Barack Obama ended a
landmark day in India on Monday with a pledge of $4 billion in investments and
loans, seeking to release what he called the “untapped potential” of a business
and strategic partnership between the world’s largest democracies.
Earlier in the day, at the invitation of Prime Minister Narendra Modi, Obama was the first US president to attend India’s annual Republic Day parade, a show of military might that has been associated with Cold War anti-Americanism. It rained as troops, tanks and cultural floats filed through the heart of New Delhi, but excitement nevertheless ran high over Obama’s visit, which began on Sunday with a clutch of deals to unlock billions of dollars in nuclear trade and to deepen defense ties. Both sides hope to build enough momentum to forge a relationship that will help balance China’s rise by catapulting democratic India into the league of major world powers.
The leaders talked on first name terms, recorded a radio program together and spent hours speaking at different events, but despite the bonhomie, Obama and Modi reminded business leaders, including the head of PepsiCo, that trade ties were still fragile. India accounts for only 2 percent of US imports and one percent of its exports, Obama said. While annual bilateral trade had reached $100 billion, that is less than a fifth of US trade with China. “We are moving in the right direction ... That said, we also know that the US-India relationship is defined by so much untapped potential,” Obama told the Indian and US business leaders. “Everyone here will agree, we’ve got to do better.”
Modi said US investment in India had doubled in the past four months and vowed to do more to slash the country’s notorious red tape and make it one of the world’s easiest places for business. Obama said that US Export-Import Bank would finance $1 billion in exports of ‘Made-in-America’ products. The US Overseas Private Investment Corporation will lend $1 billion to small- and medium-sized enterprises in rural areas of India. Regarding renewable energy, a key focus for Modi, $2 billion will be committed by the US Trade and Development Agency for renewable energy, Obama said. Most significant was an agreement on issues that, despite a groundbreaking 2006 pact, had stopped US companies from setting up nuclear reactors in India and had become one of the major irritants in bilateral relations.
Obama is giving money to India to promote terrorism .
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