By Abhishek Kunaparaju, Boston University
In 1991, India liberalized its economy for the first time. Several economic reforms were executed under the governance of Prime Minister P.V. Narasimha Rao and his Finance Minister Dr. Manmohan Singh. Some of these reforms included opening the country’s economy for international trade, privatization and deregulation. Since 1991, India has grown exponentially in terms of economic growth. The growth rate of Indian GDP for the year 1991 was 4.4%. However, the growth rate of Indian GDP for the year 2009 was 6.4%. “The economic growth in India in the last two decades is one of the stunning achievements in human history”, said president Barack Obama.
Several statements were made by analysts across United States that India is gaining enormously from the investments made by the United States. Amidst all the speculation, the relationship between India and the United States is continuing to strengthen both in terms of economics and politics. This is because, India’s economic growth is relatively less influenced by international trade unlike China and Japan. In the current threat of a global trade war, the United States considers India as a safe and reliable ally, which is evident from the $10 billion dollar worth deals signed with India during president Barack Obama’s three-day state visit to the nation early this month. Some of these deals include a “sale of 30 new Boeing 737 aircrafts to private Indian airline Spice Jet”. President Obama also used the $10 billion dollar worth of deals to convey a message to the American public that India is committed towards creatimg more opportunities for people of the United States as these deals are assumed to create 50,000 American jobs. Simultaneously, India’s armed forces, the mere geographical location of the nation and its policies and efforts to fight terrorism have developed a strong strategic relationship between India and the United States.
Though the Indo-U.S civil nuclear agreement was signed in August 2010, it has not been implemented yet. Moreover, there are severe restrictions set by the U.S government on Indian imports of dual-use technologies from the United States. However, president Barack Obama expressed his support in easing the restrictions on the supply of dual-use technologies to India during his recent visit to the country. When both the easing of import restrictions and the implementation of the civilian nuclear agreement occur, there will be a tremendous increase in demand for American exports into India, which will ultimately create more jobs in the United States. In conclusion, as rightly mentioned by Barack Obama, “U.S-India relations will be the defining partnership of the 21st century”.
