October 30, 2010 9:10 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’. The op-ed piece 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.

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