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Obama ends Indian tour

India welcomes US relaxation of export controls
New Delhi (AFP) Nov 8, 2010 - Indian Prime Minister Manmohan Singh welcomed Monday a decision by the United States to relax restrictions on the export of technology that can be used for military purposes. Washington had previously prevented exports of so-called "dual use" technologies, a category of exports that can be employed for military as well as civilian purposes. The United States imposed restrictions after India conducted nuclear tests in May 1998 to international condemnation. "We welcome the decision by the United States to lift controls on export of high technology items and technologies to India," Singh told a joint press conference with President Barack Obama.

He also welcomed US support for India's membership of "multilateral export control regimes such as the Nuclear Suppliers Group," a group of nuclear suppliers that restrict exports of their technology to prevent proliferation. "This is the manifestation of the growing trust and confidence in each other," Singh added. Washington has also lifted licensing restrictions on several Indian defence and space entities. Michael Froman, Obama's deputy national security advisor for international economic affairs, told reporters Saturday the reforms reflected Washington's view of India as a strategic partner rather than "a country of concern". India and the United States last year signed a historic civilian atomic energy deal which ended decades of India's status as a nuclear pariah and marked a new beginning between the countries.
by Staff Writers
New Delhi (UPI) Nov 8, 2010
U.S. President Barack Obama ends his visit to India by addressing parliament after signing $10 billion of trade agreements intended to save thousands of U.S. jobs.

Obama will wrap up his visit to India after talks with Indian Prime Minister Manmohan Singh focusing on improving economic relations between the two countries.

Obama also will meet with Indian political and opposition leaders.

On the political agenda will be security issues over Afghanistan as well as relations with Pakistan, a particularly sensitive issue for India.

Earlier, Obama and his wife visited Raj Ghat, the memorial that marks the spot of Gandhi's cremation in 1948, the year after the subcontinent gained independence from Britain and Pakistan was created as a separate state.

The Obamas began their visit in Mumbai, India's financial capital and also the scene of a coordinated city-wide terrorist attack in 2008 that left more than 170 dead and scores injured.

In a move loaded with symbolism, the Obamas stayed in the Taj Mahal Palace hotel, one of India's finest hotels and also at the heart of the attack by Islamic militants that was viewed across the world on television as it happened. The hotel was closed for more than a year after the attack for renovations because of damages sustained when troops stormed the building.

"We will never forget," Obama said standing at a memorial fountain with floating flowers beside the hotel lobby. The Taj Mahal Palace is a symbol of India's "strength and resilience," he said. "The United States stands in solidarity with all of Mumbai and all of India in working to eradicate the scourge of terrorism."

Later, he met businessmen and announced the easing of U.S. export controls, paving the way for greater trade. He said the stereotype of India as a nation of "call centers" was far from reality. U.S. trade with India, while much less than with China, was around $40 billion in 2008.

The decision to relax trade restrictions is the first indication that Obama will work during his 10-day Asian tour toward bolstering the U.S. economy through exports.

Obama and his Democratic Party suffered defeats in last week's midterm elections based on what analysts -- and even the president -- suggested was a backlash against a weaker than expected economic recovery.

The White House has said new export business with India could support up 54,000 jobs in the United States. Deals in the pipeline include an order for 30 of Boeing's new 737 Dreamliner passenger aircraft to private Indian airline SpiceJet. More than 12,000 jobs could be safeguarded by the contract.

Military contracts under discussion include the sale of 10 Boeing C-17s military transport planes and more than 100 General Electric F414 fighter jet engines.

General Electric's power division is eyeing a $500 million sale of six heavy duty gas turbines and three steam turbines to the private power supplier Reliance Energy. Also, GE Transportation and Electro-Motive Diesel, part of Caterpillar Inc., are bidding for a major, decade-long contract for 1,000 diesel locomotives.

U.S. firms also are targeting India's burgeoning consumer market. Harley-Davidson is considering setting up an assembly plant in India to put together motorcycles.

Officials from both the United States and India welcomed the potential for increased trade. But Obama may have had a bumpier ride during private discussions where security issues likely were raised by India, V.R. Raghavan, India's former director general of military operations, said.

"If the U.S. moves out of Afghanistan, the principal question in formulating Indian foreign policy will be how to deal with Pakistan," Raghavan said in an interview with the BBC.

The United States talks of a global war on terrorism, he said. But it appears more interested in helping in areas where it believes there are direct threats to its homeland rather than creating a greater regional stability.

India fears that when the United States and its allies eventually pull out of Afghanistan the security situation could deteriorate and security threats spill over into Pakistan.

India is concerned about what sorts of weapons the United States sells to Pakistan as the two countries, while attempting a rapprochement, are still facing each other militarily over the disputed Kashmir area, where several clashes have taken place since 1974.

On Tuesday, Obama is to be in Jakarta, Indonesia, where he is expected to announce more economic ties, and then he is to move on to South Korea. In Seoul, Obama plans to speak to U.S. troops for Veterans Day and attend the opening ceremonies for the Group of 20 economic summit.

In the last leg of his 10-day Asia trip, Obama will be in Yokohama, Japan, for the Asia-Pacific Economic Cooperation forum, before returning to Washington Nov. 14.



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