Infographic - POTUS India Visit Implications

Breakthrough moment As guest of honour at India's Republic Day parade, Barack Obama became the first sitting US President to visit India twice. President Obama's visit lived up to the hype: There were far-reaching understandings on civilian nuclear cooperation and joint defence production CIVILIAN NUCLEAR AGREEMENT Decks cleared for civilian nuclear cooperation. Nuclear deal, signed during the UPA regime, was non-operational due to liability clauses 1,500 crore Insurance cover for nuclear suppliers who shied away from the agreement as a clause made them liable in case of mishaps • No inspections by US authorities • US may back India for Nuclear Suppliers Group membership. India could then acquire nuclear technology and material from other countries, reducing dependence on a single source Opportunities for US companies like GE-Hitachi and Westinghouse to supply equipment and build reactors. India would find a way to meet spiraling power demand through nuclear energy JOINT DEFENCE PRODUCTION 10-year-old defence cooperation pact to be renewed for another 10 years. This strengthens indigenous defence manufacturing • The pact includes joint manufacturing of Raven unmanned aerial vehicles (UAVS), roll on-roll off intelligence gathering and reconnaissance modules for C-130J Super Hercules aircraft, mobile electric hybrid power sources and uniform integrated protection ensemble increment-2 Military exchanges, joint combat exercises, maritime security endeavour and intelligence sharing will be stepped up • US defence firms have long eyed alliances with India's domestic firms. With the last Union Budget permitting 49% of foreign investment in defence firms and India's hunger for military equipment seemingly insatiable, this is a huge opportunity for firms like Lockheed Martin, Reyethon and Boeing INVESTMENTS AND TRADE Obama announced $4 billion worth of initiatives to boost trade, investment and jobs in India • The $4 billion deals include $2 billion of leveraged financing for renewable energy investments and $1 bilLlion in loans for small and medium businesses. US Export Import Bank will put up $1 billion to support 'Made in America' exports to India over the next two years • This includes financing of social development ventures through an Indian Diaspora Investment Initiative • High-Level US India Strategic and Commercial Dialogue will monitor progress on the pacts EGO JOINT STRATEGIC VISION FOR ASIA-PACIFIC AND INDIAN OCEAN China, apart from being a regional rival to India, is a global rival to the US. Both, India and the US, need to balance its growing influence • China's increased naval presence highlights its push to reshape Indian Ocean geopolitics With this in mind, India and the US drew up a comprehensive joint outlook to safeguard maritime security and ensure freedom of navigation and overflight, especially in the South China Sea EGO MSLGROUP Sources: Media Reports