Biden Makes An Aggressive Sales Pitch, May Be Taking A Few Orders Home

By K Raveendran

Barring platitudes, the joint statement between India and the US in the wake of President Joe Biden’s talks with Prime Minister Narendra Modi in Delhi ahead of the G20 summit is heavily loaded in favour of the United States rather than the other way around.

Biden has done an aggressive sales pitch for the US as an alternative against India’s pro-Russian approach as also a bulwark against China-Russia axis, which can by no means be to the liking of New Delhi, given that its problems with Beijing have not shown any signs of mending. President Xi Jinping’s decision to stay away from the Delhi summit seems to have provided a perfect backdrop for Biden to push ahead with his sales plan.

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The statement records appreciation of the work by the two governments for transforming the India-U.S. Strategic Partnership across all dimensions of the multifaceted global agenda, based on trust and mutual understanding.  There is also affirmation of commitment to deepen and diversify the India-U.S. Major Defence Partnership through expanded cooperation in new and emerging domains such as space and AI, and accelerated defence industrial collaboration.

The Indian defence ministry has already issued a Letter of Request to procure 31 General Atomics MQ-9B (16 Sky Guardian and 15 Sea Guardian) remotely piloted aircraft and their associated equipment, which will enhance the intelligence, surveillance and reconnaissance (ISR) capabilities of India’s armed forces across all domains.

The US has also pledged support to advancing India’s emergence as a hub for the maintenance and repair of forward-deployed U.S. Navy assets and other aircraft and vessels.  In this respect, the US industry is committe3d to invest more in India’s maintenance, repair, and overhaul capabilities and facilities for aircraft. Further, an India-U.S. Defence Acceleration Ecosystem (INDUS-X) team is seeking to establish a robust collaboration agenda to harness the innovative work of the U.S. and Indian defence sectors to address shared security challenges.

The Indian side has of course reasons to join the celebrations. Pursuant to the completion of the Congressional Notification process last month, negotiations have commenced for a commercial agreement between GE Aerospace and Hindustan Aeronautical Limited (HAL) to manufacture GE F-414 jet engines in India, and work collaboratively to support the advancement of this unprecedented co-production and technology transfer proposal.

Other investment proposals on the table include a $300 million investment by US company Microchip Technology to expand its research and development presence in India as well as Advanced Micro Device’s announcement to invest $400 million in India over the next five years to expand research, development, and engineering operations here.

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The joint statement only makes a passing reference to the ‘unprecedented’ settlement of outstanding bilateral trade dispute between the two countries under which India has withdrawn its retaliatory tariff on eight American products as a response to the US decision to slap additional tariffs on certain steel and aluminium products in 2019. Six of the disputes were resolved during Modi’s US visit in June and the remaining seventh was settled in the wake of the Biden-Modi meeting in Delhi ahead of the G20 summit.

As part of the deal, India will be removing additional duty of 10 percent on chickpeas, 20 percent on lentils, apples and walnuts and a pro rata rate ranging from Rs 7 to Rs 20 per kg on almonds. Also lifted are 20 percent additional duty on boric acid and a similar tariff on diagnostic regents. The US had agreed to exempt certain percentage of Indian steel and aluminium quantities from the punitive tariff, but apparently the measure has not been withdrawn completely.

High-sounding pious intentions also abound, though the lack of sincerity from both sides is quite obvious. For instance, the two sides share the view that global governance must be more inclusive and representative, and that the UN is badly in need of a reform agenda so that it may better reflect contemporary realities. President Biden has reaffirmed support for a reformed UN Security Council with India as a permanent member, but the calls does not ring true as he is well aware that as long as China vetoes the proposal, it will never happen. But by way of consolation, he has supported India’s candidature for the UNSC non-permanent seat in 2028-29.

There are also plenty of pious statements and intentions, such as the pledge to sustain the high-level of engagement between the two governments, industries, and academic institutions and realize their ambitious vision for an enduring India-U.S. partnership that advances the aspirations of the two people for a bright and prosperous future, serves the global good, and contributes to a free, open, inclusive, and resilient Indo-Pacific.

Modi has joined Biden in re-emphasizing that the shared values of freedom, democracy, human rights, inclusion, pluralism, and equal opportunities for all citizens are critical to the success of the two countries. But Modi’s domestic critics are unlikely to see even an iota of sincerity in his affirmation. (IPA Service)

The post Biden Makes An Aggressive Sales Pitch, May Be Taking A Few Orders Home first appeared on Latest India news, analysis and reports on IPA Newspack.

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