October 30, 2010 11:09 AM

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India-US FTA may give ties a high: Report

Even as New Delhi gets ready to host US President Barack Obama next week, a report in the Washington Post says that an economic partnership agreement, possibly culminating in a free-trade agreement, ‘could be the way forward to cementing the ties between the two democracies’. An editorial in the paper this morning under the title, ‘ What Obama can accomplish in India’, says the two objectives in particular which might be worthy of public embrace are a permanent seat for India on the UN Security Council and a US-India economic partnership agreement, possibly culminating in a “free-trade agreement of the democracies.” Seeking to give momentum to stronger ties between the two countries, the report says that a series of free-trade agreements being negotiated between India and other major economies could lead to discrimination against US businesses in the Indian market. A free trade agreement would address this problem. The piece in the one of most popular dailies in the US says the faster India grows — an annual growth of 8 to 9 per cent is within reach in the next decade — the more business opportunities will be beyond the grasp of American firms. Stating that the Indian economy would soon overtake Japan in becoming the world’s third-largest in purchasing power, the report says this only adds to the allure of co-operation. Backing India’s claim for a permanent seat in the UNSC, the op-ed piece says the India’s claim for membership was getting stronger. The piece says New Delhi had stronger credentials for the Security Council than some current members. Making a strong case for India’s demand, the report says the country was a nuclear power, as certified by Security Council members, and unlike China and Russia, it was a robust democracy. On issues hurting India, the op-ed piece, authored by C Fred Bergsten and Arvind Subramanian, point out that New Delhi was increasingly alarmed by bipartisan congressional willingness to erect barriers to Indian skilled labour and outsourcing without even a whiff of protest from the Obama Administration. Looking at avenues for building co-operation between the two countries, the Washington post op-ed piece says India could also find ways to ensure that US firms get a largeer share of its nuclear and defense equipment purchases. In return, the US could push for India's inclusion in broader Asia-Pacific economic arrangements, beginning with the Asia-Pacific Economic Cooperation forum. The Washington Post op-ed piece says the US President Obama India visit next week— his longest visit to a foreign country—-would certainly strengthen India-US cooperation.Meanwhile, US Secretary of State Hillary Clinton has said the President and his wife were looking forward to their visit to India. She was speaking to newsmen in Hanoi today. Clinton is in Hanoi to attend the East Asia summit.

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