Indo-US Joint Statement
Prime Minister Manmohan Singh's opening statement at the joint press conference at the White House
PM's Banquet Speech at the White House
PM's Address to the Joint Session of the US Congress
PM's Speech to the Indian Caucus
PM's Remarks at the Reception Hosted by the Ambassador of India
PM's Briefing to the Media
PM's Remarks at the Newsmakers Luncheon at the National Press Club


A Risky Gamble? The Cold War is finally a thing of the past, in the context of India-US relations. The thaw has taken a long time but the Summer of 2005 heralded a turning point in India's relations with the United States. First, the New India-US Defence Pact was signed between the two countries and then came the all-important declaration by US President George Bush, during the Indian Prime Minister's landmark visit to the US: America would help India build nuclear power plants and import advanced weapons. The decision to 'set aside the principle that countries refising to sign the nuclear Non-Proliferation Treaty (NPT) should be denied civilian nuclear assistance and...face a weapons embargo', has been perceived by many Western observers to be arbitrary and harmful to the cause of nuclear non-proliferation. Western observers have criticised Bush administration's decision - the Washington Post called it a 'gamble' - saying that while 'the gains from the shift could be considerable, but so too could the risks'. However, not everybody is unhappy that the US is forging closer ties with India.

The Terrorism Factor  The fact remains that the India of the 1970s, when it first started conducting nuclear tests,  was very different from the India of 2005. During this period, India has emerged as a key global player in a host of sectors, including information technology, software and pharmaceuticals. From the American perspective, the growing strength of the Indian economy, as many observers pointed out, can serve as a 'counterweight to the growing regional dominance of China'. The other big change is that the playing field itself has changed, post-9-11. Terrorism - which was earlier just a problem that developing nations like India dealt with on a day to day basis - reared its head in a spectacular fashion in the US in 2001 and it has been rapidly spreading across the West. Today, the proliferation of nuclear weapons is a cause for concern because of the real risk of the technology falling into the hands of terrorists. Increasingly, the US has begun to realise that perhaps India can prove to be a far more useful ally in the war on terrorism, given the fact that it has been coping with the phenomenon in a terrorist-infested region. Besides, 'as the world's most populous democracy...it can be a powerful example of just the kind of democracy the US is aiming for worldwide as a terrorism antidote', points out the USA Today editorial, which also mentions that the 'India deal'  has had 'muted criticism' from 'arms control advocates and allies, if at all'. In fact, the best thing going for the 'deal' is that it 'perhaps can force a broader discussion of just how to update the rules (for the NPT) realistically, for controlling the still-exclusive - but growing - nuclear club. In ways that keep terrorists out.'

NPT, an Outdated Concept Over the past 30 years, the NPT lobby had consistently failed to consider India's track record in terms of building an indigenous nuclear programme and handling its nuclear weapons. As the Indian Prime Minister Manmohan Singh told theWashington Post: 'Our peaceful nuclear programme was not built by stealing other people's technolgy.' The USA Today editorial points out: 'The India deal did spotlight the treaty's (Non-Proliferation Treaty) biggest flaw: it's outdated. The nuclear club has grown and not just with India. Pakistan, Israel and North Korea have also secretly developed nuclear weapons. Iran is doing so. In a sense, the deal rewards India for handling its weapons responsibly. And in doing so, it sets a tentative new standard: others have not. Pakistan's top nuclear scientist marketed his knowledge to Libya and possibly, terrorists.'  Writes Fred Kaplan, in Slate, 23 July 2005:  'The NPT lets Russia and China - as two of the five authorised nuclear powers....import as much nuclear material as they want. Why should India, a more stable and democratic nation, be denied the same privilege?... The NPT is fraying under the pressure of modern technology and an increasingly archaic international system. The world's most rogue regime, North Korea, simply abrogated the treaty...The NPT isn't quite obsolete but maybe one way to keep the nuclear genie under some control is occasionally, unavoidably, to go outside the treaty, to cut separate deals with various countries that have gone, or about to go, nuclear - negotiations with Iran, security guarantees for North Korea, a global partnership with India.'

However it's this 'deal cutting' that has annoyed other observers. New York Times chafed in its editorial dated 22 July 2005 that 'the Bush administration...regularly rattles military and diplomatic sabers at North Korea and Iran. But it seems to have almost as much contempt for international treaties as it has for rogue states. Given the increasing accessibility of nuclear weapons technology and the growing number of potential government and non-government suppliers of the needed material and equipment, only a strengthened non-proliferation treaty, enforced without exceptions, stands any chance of slowing the spread of nuclear arsenals. A non-proliferation policy that is selective and unilateral is no policy at all.' Offering another argument to the India deal, Los Angeles Times - 22 July 2005 - termed it as the 'wrong deal' stating that 'risking the further spread of nuclear weapons is too high a price Better to cement relations with increased trade and military cooperation as well as US support for an Indian seat on the UN Security Council.'  Warned the Guardian:  'The agreement represents the triumph of power politics over the cause of limiting the spread of nuclear weapons - another example of the massive collateral damage caused by the exigencies of the war on terror.'

A Bold New Initiative Many observers were of the opinion that the Bush administration has taken a more realistic approach to the nuclear issue and its relations with India. As Jim Hoagland wrote in the Washington Post (24 July, 2005): 'Bush accepts the premise that the world's largest democracy has nuclear weapons and technology that it does not intend to use against US interests. The United States has long tolerated Israel's nuclear arsenal on the same basis and can reasonably oppose the programs of the hostile regimes of Iran and North Korea by the same standards. Pakistan occupies a difficult and highly dangerous middle ground for US interests....This is realism of a high order, particularly for a president often accused of lacking realism in his foreign policy....In dealing with India as it is, and for the potential it holds, Bush shows again that he is first and foremost a historical optimist who bets big and bold.' Boston Globe commented on 20 July 2005: 'Bush is wise to partner up with India while it is beginning its ascendancy as a swing state in the geopolitics of Asia but he is paying too high a price.'

Counterweight to China Some observers also see in the Bush administration's decision a pragmatic effort to counter the rising influence of China in the region. As Newsday, New York, pointed out in its editorial on 23 July 2005: 'It's (India) a nation with which Americans share political and cultural values and whose population has a largely favourable impression of the United States, with more than one million Indians living here and a good deal of 'outsourced' US work going back to India. The agreement may strain US relations a bit with Pakistan, where Islamist radicals may well rail against it. But overall, it's better to have India inside the tent of US relations in Asia as a valuable friend than outside it.'  The Wall Street Journal editorial on 22 July 2005 remarked: 'New Delhi has the potential to become an even closer ally than Japan... From tackling terrorism to keeping a wary eye on China, there are a wide range of common interests for the two countries to pursue.' Writing in The Australian, Greg Sheridan commented: 'Clearly, the US sees India as a critical strategic counterweight to China. This does not involve Washington crudely 'playing the Indian card'. India is too powerful and independent for that. No one can play the Indian card except the Indians. But just by being there, being economically successful, modernising its military, demonstrating the prestige of democracy in a big, developing country and embracing such a close relationship with the US, New Delhi has fulfilled almost every wish Washington could have for it.'


The Hurdles Ahead However as most analysts point out the 'deal' is far from a 'done deal'. The Bush administration's 'bold new policy' is likely to face many barriers. Washington Post commented: 'To clear the way for US assistance to India's civilian nuclear programme, the administration will have to ask Congress for legislation. To salvage something of the non-proliferation regime, the administration will need buy-in from other nuclear powers. In both cases, the administration will need to convince a skeptical audience that the gains from its proposal outweighs the risks. As the Bush team has discovered before, announcing a bold new policy is easier than implementing it.'

The biggest barrier to implementation is: how will the US deal with Pakistan's demand for a 'similar defacto blessing of its nuclear status'. Washington Post editorialised: 'Given Pakistan's record as a nuclear proliferator, the United States ought to refuse this. A rebuff could help to turn Pakistan's anti-India nationalism into an anti-India-and-America nationalism; pro-Western secularists may lose ground to militant Islamists. If so, the upside of a stronger relationship with India will have to be weighed against the potential downside of a jihad-minded nuclear Pakistan.' George Perkovich, a South Asia expert at the Carnegie Endowment was quoted by the Wall Street Journal as saying: 'If you can get other countries to agree that this (deal) won't weaken their commitment to a rule-based system, then it's fine...but it appears we're being cavalier about rules...then it gets harder to persuade other people to strengthen the rules or enforce them.' However another expert, Selig Harrison, director of the Asia Program at the Center for International Policy in Washington feels that while Pakistan is bound to raise protests against US' special treatment for India, the 'US has an answer, and that is A.Q. Khan'. Says  Ivo H Daalder of the Brookings Institution:  'Relaxing the rules for India - a democracy - is consistent with insisting on stricter rules for rogues like Iran and North Korea.'

Another hurdle is that the deal would have to win the backing of the Nuclear Suppliers Group (NSG), a 44-nation alliance of the top nuclear exporters that polices global sales of materials and equipment that could be used in atomic weapons.

Triumph of Democracy Judging by the media reactions to the dawn of the India-US 'nuclear era', it seems that India's patient and disciplined stand against signing the NPT has been vindicated. Clearly the India-US blow-hot-blow-cold relationship has come full circle. As  the Chicago Tribune commented on 19 July: 'The world's two biggest democracies have their differences but those look small next to the things they have in common - such as democracy, pluralism and a huge stake on the war on terror. Where it counts most, they are on the same side, where they should have been all along.'

[www.icfdc.com, 27 July 2005]


Quotes-Blurbs:



'New Delhi has the potential to become an even closer ally than Japan' - The Wall Street Journal

'Bush is wise to partner up with India while it is beginning its ascendancy as a swing state in the geopolitics of Asia but he is paying too high a price.' - Boston Globe

'The India deal did spotlight the treaty's (Non-Proliferation Treaty) biggest flaw: it's outdated.' - USA Today

'Their (India-US) relationship has been constantly upgraded from one of rivalry to friendly cooperation and from close partnership to strategic partnership,' -  Xinhua

<-font>'With two such big and intensely democratic nations as the US and India, there will always be disagreements. The relationship will require continued high-level attention on both sides' - The Australian

'The gains from the shift could be considerable. But so could the risks' - Washington Post

India-US Joint statement
Washington, DC
July 18, 2005

Prime Minister Manmohan Singh and President Bush today declare their resolve to transform the relationship between their countries and establish a global partnership. As leaders of nations committed to the values of human freedom, democracy and rule of law, the new relationship between India and the United States will promote stability, democracy, prosperity and peace throughout the world. It will enhance our ability to work together to provide global leadership in areas of mutual concern and interest.

Building on their common values and interests, the two leaders resolve:

• To create an international environment conducive to promotion of democratic values, and to strengthen democratic practices in societies which wish to become more open and pluralistic.

• To combat terrorism relentlessly. They applaud the active and vigorous counterterrorism cooperation between the two countries and support more international efforts in this direction. Terrorism is a global scourge and the one we will fight everywhere. The two leaders strongly affirm their commitment to the conclusion by September of a UN comprehensive convention against international terrorism.

The Prime Minister’s visit coincides with the completion of the Next Steps in Strategic Partnership (NSSP) initiative, launched in January 2004. The two leaders agree that this provides the basis for expanding bilateral activities and commerce in space, civil nuclear energy and dual-use technology.

Drawing on their mutual vision for the U.S.-India relationship, and our joint objectives as strong long-standing democracies, the two leaders agree on the following:

FOR THE ECONOMY

• Revitalize the U.S.-India Economic Dialogue and launch a CEO Forum to harness private sector energy and ideas to deepen the bilateral economic relationship.

• Support and accelerate economic growth in both countries through greater trade, investment, and technology collaboration.

• Promote modernization of India’s infrastructure as a prerequisite for the continued growth of the Indian economy. As India enhances its investment climate, opportunities for investment will increase.

• Launch a U.S.-India Knowledge Initiative on Agriculture focused on promoting teaching, research, service and commercial linkages.


FOR ENERGY AND THE ENVIRONMENT

• Strengthen energy security and promote the development of stable and efficient energy markets in India with a view to ensuring adequate, affordable energy supplies and conscious of the need for sustainable development. These issues will be addressed through the U.S.-India Energy Dialogue.

• Agree on the need to promote the imperatives of development and safeguarding the environment, commit to developing and deploying cleaner, more efficient, affordable, and diversified energy technologies.

FOR DEMOCRACY AND DEVELOPMENT

• Develop and support, through the new U.S.-India Global Democracy Initiative in countries that seek such assistance, institutions and resources that strengthen the foundations that make democracies credible and effective. India and the U.S. will work together to strengthen democratic practices and capacities and contribute to the new U.N. Democracy Fund.

• Commit to strengthen cooperation and combat HIV-AIDs at a global level through an initiative that mobilizes private sector and government resources, knowledge, and expertise.

FOR NON-PROLIFERATION AND SECURITY

• Express satisfaction at the New Framework for the U.S.-India Defense Relationship as a basis for future cooperation, including in the field of defense technology.

• Commit to play a leading role in international efforts to prevent the proliferation of Weapons of Mass Destruction. The U.S. welcomed the adoption by India of legislation on WMD (Prevention of Unlawful Activities Bill).

• Launch a new U.S.-India Disaster Relief Initiative that builds on the experience of the Tsunami Core Group, to strengthen cooperation to prepare for and conduct disaster relief operations.

FOR HIGH-TECHNOLOGY AND SPACE

• Sign a Science and Technology Framework Agreement, building on the U.S.–India High-Technology Cooperation Group (HTCG), to provide for joint research and training, and the establishment of public-private partnerships.

• Build closer ties in space exploration, satellite navigation and launch, and in the commercial space arena through mechanisms such as the U.S.-India Working Group on Civil Space Cooperation.

• Building on the strengthened nonproliferation commitments undertaken in the NSSP, to remove certain Indian organizations from the Department of Commerce’s Entity List.

Recognizing the significance of civilian nuclear energy for meeting growing global energy demands in a cleaner and more efficient manner, the two leaders discussed India’s plans to develop its civilian nuclear energy program.

President Bush conveyed his appreciation to the Prime Minister over India’s strong commitment to preventing WMD proliferation and stated that as a responsible state with advanced nuclear technology, India should acquire the same benefits and advantages as other such states. The President told the Prime Minister that he will work to achieve full civil nuclear energy cooperation with India as it realizes its goals of promoting nuclear power and achieving energy security. The President would also seek agreement from Congress to adjust U.S. laws and policies, and the United States will work with friends and allies to adjust international regimes to enable full civil nuclear energy cooperation and trade with India, including but not limited to expeditious consideration of fuel supplies for safeguarded nuclear reactors at Tarapur. In the meantime, the United States will encourage its partners to also consider this request expeditiously. India has expressed its interest in ITER and a willingness to contribute. The United States will consult with its partners considering India’s participation. The United States will consult with the other participants in the Generation IV International Forum with a view toward India’s inclusion.

The Prime Minister conveyed that for his part, India would reciprocally agree that it would be ready to assume the same responsibilities and practices and acquire the same benefits and advantages as other leading countries with advanced nuclear technology, such as the United States. These responsibilities and practices consist of identifying and separating civilian and military nuclear facilities and programs in a phased manner and filing a declaration regarding its civilians facilities with the International Atomic Energy Agency (IAEA); taking a decision to place voluntarily its civilian nuclear facilities under IAEA safeguards; signing and adhering to an Additional Protocol with respect to civilian nuclear facilities; continuing India’s unilateral moratorium on nuclear testing; working with the United States for the conclusion of a multilateral Fissile Material Cut Off Treaty; refraining from transfer of enrichment and reprocessing technologies to states that do not have them and supporting international efforts to limit their spread; and ensuring that the necessary steps have been taken to secure nuclear materials and technology through comprehensive export control legislation and through harmonization and adherence to Missile Technology Control Regime (MTCR) and Nuclear Suppliers Group (NSG) guidelines.

The President welcomed the Prime Minister’s assurance. The two leaders agreed to establish a working group to undertake on a phased basis in the months ahead the necessary actions mentioned above to fulfill these commitments. The President and Prime Minister also agreed that they would review this progress when the President visits India in 2006.

The two leaders also reiterated their commitment that their countries would play a leading role in international efforts to prevent the proliferation of weapons of mass destruction, including nuclear, chemical, biological and radiological weapons.

In light of this closer relationship, and the recognition of India’s growing role in enhancing regional and global security, the Prime Minister and the President agree that international institutions must fully reflect changes in the global scenario that have taken place since 1945. The President reiterated his view that international institutions are going to have to adapt to reflect India’s central and growing role. The two leaders state their expectations that India and the United States will strengthen their cooperation in global forums.

Prime Minister Manmohan Singh thanks President Bush for the warmth of his reception and the generosity of his hospitality. He extends an invitation to President Bush to visit India at his convenience and the President accepts that invitation.

Prime Minister Dr. Manmohan Singh’s opening statement at the joint press conference at the White House:
Washington, DC
July 18, 2005

“I would like to begin by thanking President Bush for the warmth of his hospitality and the wide-ranging discussions that we have had this morning with him. These discussions have been indeed very productive and focused on the future direction of a transformation in our multi-faceted relations. I am happy that the President and I share the common goal of making this one of the principal relationships for each of our countries. President’s personal commitment to this relationship is deeply admired by the people of India. The support and goodwill of the friendly people of the United States in managing the transition from a developing country to a fast expanding economy is something we greatly welcome and greatly appreciate. The President’s assurance to me that India’s sustained economic growth has a strong support and support of the United States means a lot to us.

The Joint Statement that we have agreed upon lays out the full potential of our multi-faceted cooperation. The President has accepted my invitation to visit India at the earliest and we are confident that the results of the understanding that we have reached today would be fully evident by then. Our partnership is one between rigorous and vibrant democracies and we have agreed today to give expression to our shared values in a variety of ways. The President’s steadfast determination and leadership in meeting the challenges of international terrorism is widely appreciated by us, in particular, by all civilised men and women over the world. There can be no cause that justifies the killing of innocent and defenceless civilians. There must be an international norm of zero tolerance for terrorism. Meeting global challenges requires credible and effective global institutions.

Today, the world is debating the reform of the United Nations. In our talks, President and I were of one mind that the contemporary reality must be fully reflected in the central organs and decision-making processes of the UN. India has a compelling case for permanent membership of the Security Council. We are convinced that India can significantly contribute to UN decision making and capabilities. A growing Indian economy with an accelerated growth rate averaging about 6-7 per cent till recent years and its integration with the world economy would expand the scope for commerce, investment and technological collaboration between our two countries.

Shortly, after this press interaction, the President and I will spend a few minutes with corporate leaders from both countries of the first meeting of the CEOs forum. This forum include some of the best business minds of our two countries.

We have announced today a series of other initiatives designed to build a long-term knowledge-driven partnership between India and the United States. These reflect the vision that the President and I have of our shared future. We also discussed the importance of ensuring adequate energy and affordable supplies at a time when oil prices remain high. Both of us recognise that civilian nuclear energy has a greater role in meeting global energy demands. We in India have an ambitious and attainable national roadmap in this regard. We look forward to President Bush’s strong leadership on this important issue. I must once again thank you Mr. President for the warmth of your welcome and for your deep and abiding personal commitment to the building of our partnership.

PM’S Banquet Speech at the White House :
Following is the text of the Prime Minister, Dr. Manmohan Singh’s speech at the Banquet at the White House, Washington on July 18, 2005:

“It is a pleasure to thank you, not merely on behalf of my wife and myself, but on behalf of the people of India. The generosity of your hospitality is only exceeded by the generosity of your spirit. I have often heard of the warmth and affection of the American people, but when one feels it with such intensity, it is truly heartwarming.

Bernard Shaw had once described America and England as two countries divided by one language. Perhaps this once held true for India and America as well. I believe our two countries must strive to arrive at a common lexicon and a shared framework of reference in looking at the rest of the world, for there is truly very much that we have in common. However, if, in the recent past, our communication has been better and clearer, a good deal of the credit must go to President Bush. Mr. President, we are indebted to you for your sustained support to the transformation of the India-US relationship. I have found my visit to your great country to be a highly rewarding experience. The Joint Statement we have issued today highlights some priority areas for expanded cooperation in future. We look forward to working with you to realise our common aspirations in the months and years ahead.

Mr. President, India and America are great nations and great democracies. We cherish the openness of our societies and economies. We value our pluralism, our diversity and our freedoms. These shared values that bring us together must be more visible, not only in how we deal with each other, but also in our approach to the world. We must strengthen democratic capacities jointly. We must oppose the evil of terrorism together. To meet such vital challenges, we must be together on the same page. We must speak the same language and display the same resolve.

Mr. President, I look forward to your visiting India, with Mrs. Bush and to the pleasure of extending our hospitality to you.

Mark Twain had once said that “the only foreign land” he ever dreamt about or “deeply longed to see” was India. We have all grown up learning the story of the unfinished voyage of Christopher Columbus. Setting sail to reach India, he discovered America. I now invite the people of America to complete the voyage of that great explorer.

I myself come to the United States with a firm belief that working together, India and the USA can make a significant contribution to global peace and prosperity. Indeed, the contribution that the two million-strong Indian-American community is making to every sphere of activity in this great country is one indicator of the vast untapped potential in our bilateral relationship.

Mr. President, Madam First Lady, Ladies and Gentlemen,

Today has been a day well spent and this is a meal well shared. We are happy to break bread with you in friendship.

Ladies and Gentlemen, I now invite you to join me in a toast to:

The health and happiness of President George Bush and the First Lady, Mrs. Laura Bush, the friendly people of the United States of America and to the success of all that we are endeavouring to do through this visit to open a new chapter in our relationship.”
 

Remarks by  Prime Minister Dr. Manmohan Singh at the arrival Ceremony in the White House:

Washington, DC
July 18, 2005

'Mr. President, thank you very much for your warm words of welcome. I greatly value this invitation to visit Washington, and I look forward to my discussions with you this morning. I'm confident that my visit today will give us an opportunity to develop and take forward this strategic partnership between India and the United States.

We share a common commitment to democracy, freedom, human rights, pluralism and rule of law. We face common challenges that threaten our way of life and values that both our countries hold dear. We share a common resolve and a common responsibility to meet those challenges.

Mr. President, there is vast potential for our countries to work together on an ambitious agenda of cooperation, bilaterally, and with regard to what we can do together to address the global challenges.

Mr. President, your personal commitment to our relations is widely appreciated in India. I am confident that from our talks today will emerge an agenda of cooperation that reflects a real transformation of our relationship. Its realization would help India meet the expectations of its people for a better quality of life, a more secure future, and a greater ability to participate in global creativity. I also believe that working together, our two countries can make a significant contribution to global peace, security and development.

Let me conclude, Mr. President, by thanking you and the First Lady, Mrs. Laura Bush, once again for the warmth of your welcome. I thank you, Mr. President.'

Prime Minister Dr. Manmohan Singh’s  Address to Joint Session of the Congress

Washington, DC
July 19, 2005

Mr. Speaker,
Mr. Vice President,
Distinguished members of the US Congress,
Ladies and Gentlemen,

I deem it a privilege to be invited to address this Joint Session of the US Congress. I thank you for the invitation. I bring you the greetings and good wishes of the people of India.

India and the United States have much in common that is very important to both countries. You are the world’s oldest democracy, we are its largest. Our shared commitment to democratic values and processes has been a bond that has helped us transcend differences. We admire the creativity and enterprise of the American people, the excellence of your institutions of learning, the openness of the economy, and your ready embrace of diversity. These have attracted the brightest young minds from India, creating a bridge of understanding that transcends both distance and difference between us. In addition to the values we share as democracies, there is also a convergence in our perceptions of a rapidly transforming global environment, bringing us much closer together than at any time in the past.

Globalization has made the world so inter-dependent that none of us can ignore what happens elsewhere. Peace and prosperity are more indivisible than ever before in human history. As democracies, we must work together to create a world in which democracies can flourish. This is particularly important because we are today faced with new threats such as terrorism, to which democracies are particularly vulnerable.

Indian democracy has been fashioned around India’s civilisational ethos which celebrates diversity. Our society today is the culmination of centuries of assimilation of diverse peoples and ethnic groups. All the major religions of the world are represented in India. We have a tremendous diversity of languages, customs and traditions. The Father of our Nation, Mahatma Gandhi called for universal adult franchise as early as 1931, long before India became independent. Our political leadership remained true to this commitment and the Constitution we adopted after Independence enshrined democracy based on free elections and the associated principles of tolerance of dissent, freedom for political activity, protection of human rights and the Rule of Law. Our first Prime Minister, Jawaharlal Nehru, addressing this very forum in 1949, acknowledged our debt to America on this score. He said that you could hear in our Constitution the echo of the great voices of the Founding Fathers of your Republic.

Ladies and Gentlemen,

The real test of a democracy is not in what is said in the Constitution, but in how it functions on the ground. All Indians can be proud of what we have achieved in this area and our experience is also relevant beyond our boundaries. Free and fair elections are the foundation of a democracy. Over the past six decades, governments in India, at both the national and State level, have regularly sought the mandate of the people through elections.

Our elections are conducted under the supervision of a statutory independent Election Commission, which has earned respect for its fairness and transparency, both at home and abroad. The independent judiciary has been a zealous defender of our Constitution and a credible guarantor of the Rule of Law. The Press is a key institution in any democracy and our media has a well-earned reputation for being free and fearless. Our minorities, and we have many, participate actively in all walks of national life - political, commercial and cultural. Civil society organisations are thriving and are vigilant in protecting human rights. They are also watchful of threats to the environment. Our Army has remained a professional force, subject throughout to civilian control.

Recently, the Constitution was amended to ensure constitutionally mandated elections to village and municipal councils. This process has produced no less than 3 million elected representatives in the country, with 1 million positions reserved for women. This has brought democracy closer to the people and also empowered women and promoted gender balance.

Our commitment to democratic values and practices means there are many concerns and perceptions that we share with the United States. The most important common concern is the threat of terrorism. Democracy can only thrive in open and free societies. But open societies like ours are today threatened more than ever before by the rise of terrorism. The very openness of our societies makes us more vulnerable, and yet we must deal effectively with the threat without losing the openness we so value and cherish. India and the United States have both suffered grievously from terrorism and we must make common cause against it. We know that those who resort to terror often clothe it in the garb of real or imaginary grievances. We must categorically affirm that no grievance can justify resort to terror.

Democracies provide legitimate means for expressing dissent. They provide the right to engage in political activity, and must continue to do so. However, for this very reason, they cannot afford to be soft on terror. Terrorism exploits the freedom our open societies provide to destroy our freedoms. The United States and India must work together in all possible forums to counter all forms of terrorism. We cannot be selective in this area. We must fight terrorism wherever it exists, because terrorism anywhere threatens democracy everywhere.

We know from experience that democratic societies which guarantee individual freedom and tolerance of dissent provide an environment most conducive to creative endeavour, and the establishment of socially just societies. We therefore have an obligation to help other countries that aspire for the fruits of democracy. Just as developed industrial countries assist those that are less developed to accelerate development, democratic societies with established institutions must help those that want to strengthen democratic values and institutions. In this spirit, President Bush and I agreed yesterday on a global initiative to help build democratic capacities in all societies that seek such assistance.

The capacities we have in mind are those related to the electoral, parliamentary, judicial and human rights processes of emerging democracies. Respect for cultural diversity, minority rights and gender equality is an important goal of this initiative.

Democracy is one part of our national endeavour. Development is the other. Openness will not gain popular support if an open society is not a prosperous society. This is especially so in developing countries, where a large number of people have legitimate material expectations which must be met. That is why we must transform India’s economy, to raise the standard of living of all our people and in the process eliminate poverty.

India’s aspirations in the respect are not different from those of other developing countries. But we are unique in one respect. There is no other country of a billion people, with our tremendous cultural, linguistic and religious diversity, that has tried to modernise its society and transform its economy within the framework of a functioning democracy. To attempt this at our modest levels of per capita income is a major challenge. We are determined to succeed in this effort.

To achieve our developmental goals, our policies and strategies must be in step with changed circumstances and especially the opportunities now available in the global economy. Prime Minister Rajiv Gandhi, standing at this very podium two decades ago, spoke of the challenge of building anew on old foundations. He started a process of reorienting India’s economic policies, which has been continued by successive governments.

The economic policy changes that have been made in India have far-reaching implications. They have liberated Indian enterprise from government control and made the economy much more open to global flows of trade, capital and technology. Our entrepreneurial talent has been unleashed, and is encouraged to compete with the best. We will continue this process so that Indian talent and enterprise can realize its full potential, enabling India to participate in the global economy as an equal partner.

We are often criticised for being too slow in making changes in policy, but democracy means having to build a consensus in favour of change. As elected representatives, you are all familiar with this problem. We have to assuage the doubts and calm the fears that often arise when people face the impact of change. Many of the fears we have to address are exaggerated, but they must be addressed. This is necessary to ensure sustainability. India’s economic reforms must be seen in this light: they may appear slow, but I assure you they are durable and irreversible.

I am happy to say that our efforts at transforming India into an economy more integrated with the world have borne fruit. Our rate of growth of GDP has increased steadily, and has averaged around 6.0% per year over the past two decades. Poverty has declined although more slowly than we would like. We are determined to improve on this performance. We hope to raise our growth rate to 8% or so over the next two years, and we will ensure that this growth is “inclusive” so that its benefits are widely spread. For this we must act on several fronts. We must do much more in health and education, which are crucial for human development. We must continue to open up our economy. We must impart a new impetus to agricultural development. We must expand investment in economic infrastructure which is a critical constraint on our growth prospects.

India’s growth and prosperity is in American interest. American investments in India, especially in new technology areas, will help American companies to reduce costs and become more competitive globally. Equally, India’s earnings from these investments will lead to increased purchases from the United States. The information technology revolution in India is built primarily on US computer related technology and hardware. There are many other examples of such two-way benefits, with both sides gaining from the process.

U.S. firms are already leading the foreign investment drive in India. I believe 400 of the Fortune 500 are already in India. They produce for the Indian market and will hopefully also source supplies from India for their global supply chains. We welcome this involvement and look forward to further expansion in the years ahead. India needs massive foreign direct investment, especially in infrastructure. I hope American companies will participate in the opportunities we are creating.

The 21st Century will be driven by knowledge-based production and India is well placed in this area. We have a large and relatively young population with a social tradition that values higher education. Our educated young people are also English speaking. This makes us potentially an attractive location for production of high-end services whether in software, engineering design or research in pharmaceutical and other areas. Our laws on intellectual property rights have been recently amended to comply fully with our international obligations under the WTO. We look forward to attracting business in these areas from the United States.

The presence of a large number of Indian Americans in high technology industries here makes the US and India natural partners. It gives you confidence about India’s human resource capability. It also gives you an edge over your competitors in the ease with which you can operate in India. We are proud of what the Indian American community have done in this country. I was touched, as were many of my countrymen, by the news that a Resolution of this House celebrated the contribution of Indian Americans to research, innovation, and promotion of trade and international cooperation between India and the U.S.

Ladies and Gentlemen,

To fully exploit potential areas for cooperation between our two countries, we need to make special efforts to bring our private sectors closer together. To this end, President Bush and I have constituted an India-US forum of chief executive officers. I hope this forum will promote greater understanding of each other’s perspectives and also a better assessment of prospects for future cooperation. The two governments will draw on their experience and advice on how to realize the full potential of our relationship.

The bulk of our population still depends upon agriculture for a living. The United States was an early partner in this area, helping to establish agricultural universities and research institutions in India in the 1960s. It was an American, Nobel Laureate Norman Borlaug, supported by a grant from the Rockefeller Foundation, who developed high yielding varieties of wheat in Mexico which were then adapted to Indian conditions in the Agricultural Universities you helped establish. This was the start of the Green Revolution in India that lifted countless millions above poverty. I am very happy to say that President Bush and I have decided to launch a second generation of India-US collaboration in Agriculture. The new initiative will focus on basic and strategic research for sustainable development of agriculture to meet the challenge of raising productivity in conditions of water stress. It seeks to take information and know-how directly to the farming community and promote technologies that minimise post harvest wastage and improve food storage. It will also help Indian farmers to meet phytosanitary conditions and enable them to participate more fully in global agricultural trade.

Energy security is another area where our two countries have strong common interests. The world’s reserves of hydrocarbons are finite and we must tap new energy sources. India’s reliance on coal and hydro-power will increase. We have to invest in new oil and gas exploration and in enhanced recovery of oil and gas from available fields. We must also tap the full potential of nuclear energy. The US can help in all these areas. I am happy to say that we have initiated an Energy Dialogue with the U.S. to explore the scope for cooperation in each of these areas in the years ahead.
The field of civil nuclear energy is a vital area for cooperation between our two countries. As a consequence of our collective efforts, our relationship in this sector is being transformed. President Bush and I arrived at an understanding in finding ways and means to enable such cooperation.
In this context, I would also like to reiterate that India’s track record in nuclear non-proliferation is impeccable. We have adhered scrupulously to every rule and canon in this area. We have done so even though we have witnessed unchecked nuclear proliferation in our own neighbourhood which has directly affected our security interests. This is because India, as a responsible nuclear power, is fully conscious of the immense responsibilities that come with the possession of advanced technologies, both civilian and strategic. We have never been, and will never be, a source of proliferation of sensitive technologies.
We are conscious that plans to meet our energy requirements will have implications for the environment. This is especially so since any energy scenario for India will involve heavy dependence on coal. Clean coal technologies that can make an impact need to be developed and should be affordable for poorer countries. We need to find ways whereby sufficient resources can be devoted to ensure the development of these technologies. We must also find ways of allowing greater access for developing countries to these technologies including ways of undertaking cooperative research. We stand ready to explore new partnerships in this area with you, which will help enable a more efficient use of our hydrocarbon resources.

There are other areas too where we can collaborate. Our combined effort in providing relief and succour to the millions affected by last December’s tsunami is an example of what partnership can achieve. Building on this experience, President Bush and I have launched a joint initiative to ensure that our capabilities will be readily on call for those in need in similar situations in future. The global challenge of HIV-AIDS is another area for India-US cooperation. President Bush and I have agreed on the need to provide increased international access to safe and effective anti-retroviral drugs.

Ladies and Gentlemen,

Globalisation has woven a web of inter-connections across the world. This makes it all the more necessary that we evolve a system of global governance that carries credibility and commands legitimacy. Such a system must be sufficiently participative to be able to generate a global consensus. It must also reflect contemporary reality. The Doha round of world trade negotiations and the reform of the United Nations are two major processes in the international arena where we need to work together to strengthen the system of global governance.

India is committed to strengthening the multilateral trading system and we will work with the U.S. and other partners for a successful outcome of the Doha Round. I am sure that we can find a reasonable and balanced outcome that is mutually beneficial. We will make every effort to do so.

On the reform of the United Nations, we believe that it is time to recognise the enormous changes that have occurred since the present structure was established. There must be comprehensive reform of the United Nations to make it more effective and also more representative. The UN Security Council must be restructured as part of the reform process. In this context, you would agree that the voice of the world’s largest democracy surely cannot be left unheard on the Security Council when the United Nations is being restructured.

Mr. Speaker, Mr. Vice President, Distinguished Senators and Members of the House of Representatives, Ladies and Gentlemen,

I would like to conclude by saying that the Indian people look forward to a bright future, full of confidence, based on a growing recognition of our economic capabilities and the readiness of our society to meet the challenges before us. We have had some success in improving the quality of life of our own people and we will redouble our efforts to this end. We will also work towards securing a world order in which democracy can flourish, and in which developing nations can strive for greater prosperity. As two democracies, we are natural partners in many respects. Partnerships can be of two kinds. There are partnerships based on principle and there are partnerships based on pragmatism. I believe we are at a juncture where we can embark on a partnership that can draw both on principle as well as pragmatism. We must build on this opportunity.

My objective on this visit was to lay the basis for transformed ties between our two great countries. I believe that we have made a very good beginning. With the support and understanding of the Congress, the full benefits of our partnership will be realised in the months and years to come. India is today embarked on a journey inspired by many dreams. We welcome having America by our side. There is much we can accomplish together.

Thank you.

Prime Minister Dr. Manmohan Singh’s Speech to the India Caucus

Washington, DC
July 19, 2005


Distinguished Members of Congress, friends of India,
Ladies and Gentlemen:

I deem it a privilege to meet you shortly after being given the signal honour of addressing a Joint Session of the Congress earlier today. This meeting is an invaluable opportunity for me to set before friends of India-the votaries of a strong bilateral relationship—the task that lies ahead of us in forging a stronger India-US partnership.

I do so secure in the confidence that India will have your support in our efforts to strengthen and consolidate our bilateral ties. I thank you for your interest in India and the support that you have extended to making our relationship stronger and forward looking.

Earlier today, I referred to our common heritage as liberal democracies. I spoke of the commonalities that bind our two nations together. Indeed, given these commonalities and the fact that there has never been any reason for a conflict of interests between us, I have always been perplexed by the fact that our relations have not developed to their fullest potential. Our bilateral relationship has in the past been described as one between estranged democracies. However, during this visit, I have become convinced that our relationship must now evolve beyond this stereotype. We must have a transformation to create a true strategic partnership that befits two of the world’s great democracies.

Such a transformation requires support from all sections of society. The India Caucus can join hands with Government on both sides, not just in removing the misperceptions and stereotypes of the past, but also in pooling our collective efforts to realize the hopes with which our two countries now view this partnership.

Ladies and Gentlemen,

In our discussions yesterday, President Bush and I identified several new areas in which we would take our partnership forward. One of these is a Global Democracy Initiative to assist nations that aim to establish democratic institutions based on the eternal values of liberty, freedom and equality. This effort will be based on engagement with the international system, including through institutions of the United Nations, such as the UN Democracy Fund. In this context, India has decided to contribute $10 million to the UN Democracy Fund.

The President and I also shared the view that as democratic and pluralistic societies, we face a common threat from global terrorism. International terror does not merely threaten our security, it is also an assault on decency and our values. No grievance can justify terrorist attacks on innocent people. This is a challenge with which free societies cannot compromise. There must be an international norm of zero tolerance on terrorism.

We also discussed the issue of resuming cooperation in the field of civil nuclear energy. Energy scarcity and infrastructure bottlenecks are two major constraints on our further growth, along with older, unresolved problems of poverty, ignorance and chronic disease. Rising oil prices have brought into question our continued dependence on hydrocarbons. Increasingly, we in India see no alternative to investing more in nuclear energy, clean coal, hydrogen cells and other new and environmentally friendly technologies.

In this context, President Bush and I have reached agreement on cooperation in this vital sector. We are finding ways and means to enable cooperation in this regard, so that our plans are consistent with our respective national commitments and our respective national security needs. India, with its exemplary track record, will never pose any proliferation concerns for the international community. India has actively embraced globalization. This must now extend to cooperation in the field of civilian nuclear energy as well.

Ladies and Gentlemen,

India is undergoing a rapid and increasingly all-encompassing process of transformation. A billion-strong society developing at our current pace in a democratic framework has no historical precedent. We are one of the fastest growing economies in the world.

Such an Indian economy is in the long term interests of US trade and business. Rising income levels and purchasing power in India have created demands for American products and services. The Open Skies Agreement signed in April 2005 reflects, for example, the emergence of strong tourism and travel. Admittedly, there is a trade gap, but if the United States plays to its strengths, that could easily narrow. This year, US exports have grown by almost 45% as compared to an Indian export growth rate of 15%.

Our focus remains on instituting policies of high growth aimed at encouraging investment flows and expanding trade. We are currently receiving about $6 billion annually as foreign investment. We need several times this amount. We have to strengthen investor confidence and have done so by putting in place a new Intellectual Property Rights regime, removing restrictions on joint venture expansions and resolving the controversy over Enron’s investment in the Dabhol power project. The establishment of an India-US CEOs Forum and their first meeting in Washington will, I am confident, infuse enthusiasm in the US investor community.

Our vision of prosperity is not a narrow one. I believe that if India’s current economic growth is sustained; it will impact for the better on our neighbourhood, and bring out the true development potential of a naturally integral region. Those of our neighbours who have identified in our growth an opportunity to advance their own economies have benefited substantially. We look forward to the process of economic development transforming the nature of political discourse in our region.

In addressing the emerging and future challenges of global interdependence, the question that must be asked by our friends is whether or not the interests of the United States would be better served by India’s presence in the UNSC. I believe that the commonalities in our interests far outweigh any differences. UN reform must be comprehensive and extend also to making its activities more efficient and cost-effective.

Ladies and Gentlemen,

A heavy responsibility rests on this Caucus in providing leadership for the realization of the ambitious agenda of our cooperation. I know I can count on your continued support as we move to further strengthen India-US relations.

Thank you

Prime Minister Dr. Manmohan Singh’s remarks at the reception hosted by the  Ambassador of India


Washington, DC
July 19, 2005


“I am very pleased to be with all of you this evening and appreciate your warm welcome. I am here in Washington on a visit at the invitation of President Bush. It is our shared hope that the discussions that we had yesterday would mark a transformation of ties between our two great democracies. I take the opportunity today to share with you my thoughts regarding the vision of our partnership and what you, as Indians resident in the United States, could contribute to these goals.

In 1949, Panditji came here on what he himself described as a ‘voyage of discovery’. I am here on a mission to give U.S. leaders an overview of the dramatic changes now taking place in India in our quest for social and economic transformation. India now happens to be one of the fastest growing economies in the world. Indian economy has now acquired the capacity to grow annually at the rate of 7-8 per cent. It is an endeavour to communicate to the opinion makers the ferment and energy that characterize Indian society. It is to convey that there is a new India in the making: one of world class firms, of a dynamic services sector, of young entrepreneurs and risk takers, of confident professionals and of rising urban and rural income levels. My purpose in coming to the United States were three. First, to enhance an appreciation of these very changes which have given us the capability to better partner the United States. Second, to emphasise that the United States can contribute to these processes, accelerate growth rates in India by its policies and that it is in US strategic interest that the Indian economy expands rapidly. And third, that the educational empowerment of a demographically young India provides the basis for a long-term partnership between two key knowledge powers. My message is that India is an open economy as well as an open society, one capable and confident of closely engaging the world.

I believe that these last two days, the groundwork has been laid for a new relationship. I saw a different level of interest in India on the part of the President himself, key members of the Administration and among members of the US Congress, to whom I had the honour of delivering an address this morning. I saw as well that the corporate sector in the United States is looking at India very much more positively. This is reflected in the enthusiasm of the CEOs who have joined the bilateral forum that the President and I inaugurated yesterday. Initiatives and understandings that emerge from this visit should contribute to the long-term strength and competitiveness of India. For me, this visit represents an important step in our journey towards reform and modernization that began in 1991.

Our challenge in India is to meet the rising aspirations of the upwardly mobile while simultaneously addressing the basic needs of those who are still vulnerable. We are committed to take determined measures to get rid of poverty, ignorance and disease which still afflict large section of our population. These are not choices, but two faces of the challenge of taking India forward. In the past, our ties with the United States have benefited India greatly. We seek now to build on that tradition while forging a new partnership. Obviously, with the passage of time, the terms of agreement are bound to change. Renewed cooperation in agricultural research, a focus on promoting agri-business, supporting innovative technologies, expanding educational networking, and building frontier science capabilities are all steps designed at giving our ties a contemporary relevance. Our two countries can cooperate to use the advances in modern science and technology to accelerate the pace of social and economic development. Our capability to partner the US on addressing global challenges has also increased and strengthening democratic capacities, addressing the HIV-AIDS challenge and responding to natural disasters are among our shared goals.

Our track record, even within the last year, clearly conveys a determination to raise the quality and scope of our cooperation. We have completed the Next Steps in Strategic Partnership, established Energy and Economic Dialogues, put in place an IPR regime and investment policies that encourage business, addressed the Dabhol problem, concluded an Open Skies Agreement with the USA, expanded our defence cooperation with a new framework, and worked closely on tsunami relief. These achievements give us the confidence to now tackle the more ambitious agenda that we have before us.

The role of the Indian community and Indian-Americans in this transformation process is vital. It is your creativity, knowledge, entrepreneurship and work ethic that has helped to greatly transform the image of India in American minds. No community in American history has achieved as much success in as short a time span as Indian-Americans. From a bridge between our two societies, you could become a veritable highway for the flow of ideas, technology and capital. You embody the knowledge partnership between us, whose broadening will surely make Indo-US ties one of the principal relationships of the world.

I thank you for all that you have done, individually and together, for India. Your support and your talents are necessary for our continued progress. I believe that the 21st century will be a global one, belonging to global citizens. It will a century of freedom, of democracy, of multi-culturalism and of knowledge. These are the very values you represent, values that we admire. Through your commitment and efforts, India and the Indo-US partnership will grow together.”


Remarks by Prime Minister Dr. Manmohan Singh at briefing for accompanying media

Washington, DC
July 20, 2005

My message during this visit to the US has been simple and substantial. The government and people of India are ready and willing for substantive engagement with the United States; there are enough commonalities and shared concerns which should have ensured such engagement earlier. The absence of such an ongoing engagement has been a gap that both sides should try to fill; we on our part are doing everything we can in that direction.

This is a message you have heard from me repeatedly over the last couple of days. I have focused on this in my meetings with President Bush, Vice President Cheney and members of the President’s Cabinet — Secretary Rice, Secretary Rumsfeld and Secretary Snow.

I have spoken about this in my address to the Joint Session of the US Congress yesterday, and in my meetings with senior Senators and Congressmen, whom I met in groups and individually yesterday.

In my meeting with President Bush, about which you have been briefed, I emphasized the scope for cooperation — bilateral and global — across the broadest spectrum of themes and issues. Some of these are reflected in the Joint Statement that issued after the meeting. The road map for cooperation has been set out in this Statement.

My discussions with President Bush covered the issue of cooperation in the field of civilian nuclear energy. We reached agreement on ways and means of how both countries would proceed in this area, which has been reflected in the Joint Statement. Both countries have agreed on reciprocal commitments, which will be addressed in a phased manner. I belie


[icfdc.com, 28 August 2005]