The Business Times
SUBSCRIBERS

Obama's India visit moves bilateral ties into new trajectory

Published Thu, Jan 29, 2015 · 09:50 PM

RELATIONS between India and the US have moved into a new trajectory upon the visit of US President Barack Obama to New Delhi for India's 66th Rebublic Day on Jan 26. The visit was marked by several notable features: the obvious personal rapport between Mr Obama and Indian Prime Minister Narendra Modi; agreement on several key issues on security and technology; and having "an open and predictable climate for investment", leading to a general optimism among India's business leaders.

There has been a perceptible shift in attitude on both the US and Indian sides. The US sees India as an alternative power centre in Asia, partly balancing Chinese dominance. It has for some time been pushing for a US-Japan-Australia-India partnership to balance China, but has faced resistance from Chinese fears of encirclement.

India has so far declined to join in as China is its largest trading partner and a powerful neighbour to the north. But the part in the US-India Joint Statement "Shared Effort; Progress for All" released on Jan 25 mentions deepening cooperation in "maritime security such that the navies of both sides would continue discussions to identify specific areas for expanding maritime cooperation" in the Indian Ocean, and even the South China Sea through which passes Indian trade to eastern Asia. This is bound to rankle China and the wisdom of such a move is questionable.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Columns

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here