Ministers, $3 billion chopper deals set tone for PM Narendra Modi’s US visit

By Seema Sirohi

WASHINGTON: Just as Sushma Swaraj, Nirmala Sitharaman, Piyush Goyal and others from the Indian side were assembling at the first expanded Strategic and Commercial Dialogue on Tuesday, the news of Boeing’s $3-b Apache and Chinook helicopter deal being approved by New Delhi came in. This set the tone for what followed.

Calling the India-US relationship a "bright spot" in an increasingly turbulent global scenario, US secretary of state John Kerry promised external affairs minister Swaraj to work towards "ensuring" India’s membership in the Asia-Pacific Economic Cooperation, a move that blends the objectives of New Delhi’s ‘Act East’ policy with the American ‘rebalance’ to Asia.

The dialogue also recorded forward movement on several bilateral issues, including climate change, generic drugs, counterterrorism and cyber security. Minister of state for commerce Sitharaman was forthright on the need to conclude a totalisation agreement so that social security taxes paid by Indian H1-B workers to the US government are returned to them, underlining that it isn’t just US companies that have market access problems but Indian corporates face discrimination in the US too.

Although the two countries have been holding an ever-expanding annual strategic dialogue since 2010, this meeting included the commercial relationship for the first time. From the US, Kerry, Commerce Secretary Penny Pritzker and Energy Secretary Ernest Moniz attended. The two sides decided to issue a separate declaration on counterterrorism. It called on Pakistan "to bring to justice the perpetrators of the 2008 Mumbai attack" while condemning the latest terrorist attacks in Gurdaspur and Udhampur.

The declaration listed the many groups flourishing in Pakistan, including the D Company, the LeT, the JeM and the Haqqani Network. An agreement to expand intelligence cooperation is yet to be finalised, but the US has included Mumbai in the 'Strong Cities' network to build better resilience against extremism at the state and local levels.

Two new initiatives were launched: a regular dialogue between India’s foreign secretary and the US deputy secretary of state; and consultations between the two policy planning divisions.

Kerry spoke on climate change, describing India’s target to reach 175 GW of renewable energy by 2022 as the "world’s most ambitious target". But as one Indian negotiator said, "When it comes to financing, [the Americans] are not putting much on the table".

However, there are bright spots. The Lawrence Berkeley National Laboratory will help create solar home systems and link them to energy-efficient appliances. The US will also share experience in ‘greening the grid’, managing the intermittent entry of renewable power.