Interview with President Barack Obama

You had described the relationship between the US-India as “the defining partnership of the 21st century”. Of late, there is a feeling that the warmth in the ties is fading. There are differences over Iran, nuclear commerce has not taken off, and India still continues to be denied access to sophisticated dual use technology. How do you view the current state of Indo-US ties?

When I addressed the Indian people from parliament I said the relationship between the United States and India can be one of the defining partnerships of the 21st century. I still firmly believe it. India’s remarkable progress in recent decades positions it to be a global leader, and I have enthusiastically welcomed India’s rise. As two great multiethnic democracies and free market economies, we’re natural partners bound together by common interests and shared values. My wife Michelle and I experienced this ourselves during our visit, which we’ll never forget, and we see it every day in the millions of Indian Americans who bind our two nations together.

I called for our two countries to forge a truly global partnership because I believe we have an historic opportunity to work together to advance our interests and meet global challenges. It’s why I made it clear that the United States supports India as a permanent member of a reformed United Nations Security Council. When democracies like India stand up for democratic governance, development, and universal rights around the globe, the world is more secure and more just.

Yes, it’s true that in some areas we would have liked to see more momentum. Still, I’m proud of the progress we’ve made, and I think that the relationship between the United States and India is stronger, broader and deeper that it has ever been.

Trade and investment between our countries has soared to record levels, creating jobs and opportunity for both our peoples. We’re expanding educational and scientific exchanges, including for the some 100,000 Indians studying in America. We’ve forged new partnerships in agriculture, health and open government. We’re working together to meet common challenges, from nuclear security to climate change. Our militaries are conducting more exercises together than ever before, and we’ve partnered to protect our citizens from violent extremism.

Of course, no relationship between nations is without its challenges, and ours is no exception. But our common interests have allowed us to keep moving forward. For example, we agree on the importance of preventing Iran from acquiring a nuclear weapon, and we welcome the steps India has taken to diversity its energy sources by reducing purchases of Iranian oil. We agree on the need to fully implement our civilian nuclear agreement, and—though progress has not come fast enough—we’re moving ahead toward implementation. And we agree on the benefits of sharing dual use technology with India—which we already do—and our Defense Department is working to address those occasional cases where we do not. Given all the interests and values we share, I’m confident that we can continue to work through any differences.

Building a global partnership between our two nations won’t be easy and it won’t be quick. But we’re on our way. And if we’re willing to seize the opportunities for greater cooperation, if we’re willing to be bold, I’m convinced that we can turn our vision into reality.

Mr President, you are just back from the G20 Summit. In the aftermath of your discussions with other leaders there, what is your assessment of the global economic situation? What dangers lie ahead and what role do you envisage for developing economies like those of India to play in the current scenario?

First of all, one of the reasons I value the G20 is that it’s the only place where leaders of the world’s largest economies—developed and developing—can come together and address the economic challenges that affect us all. In our global economy, we can’t just have a few leaders of the most advanced economies making decisions that touch the lives of billions of people around the world. That’s why we made the G20 the leading forum for global economic decision-making, to give developing and emerging nations, like India, a larger voice. It’s why we increased the role of India and other emerging economies in international financial institutions. These institutions are stronger because of India’s active participation. I’ve certainly valued the insights of my friend and partner Prime Minister Singh, with whom I’ve worked closely, including at the most recent G20 in Mexico.

Right now, the global economy continues to faces a number of challenges. Global growth, including growth in emerging economies like India, has slowed. The situation in Europe has of course been a concern. The G20 summit in Mexico was therefore an opportunity for us to hear directly from European leaders on the progress they’re making and on their next steps. As I’ve said, I believe our European leaders grasp the seriousness of the situation and are committed to holding the eurozone together, as we’ve seen with steps they’ve taken in recent weeks. All of us have a profound interest in Europe’s success, and the United States will continue to support our European friends as they work through this challenge.

At the G20 we agreed that one of the best things we can do to get the global economy growing faster is to renew our focus on growth and job creation in our own countries. That’s my priority in the United States. Of course, one of the most effective ways we can create jobs is to continue expanding trade and investment, including between the United States and India. We need to make it easier for our companies to invest in each other’s countries. We need to keep strengthening the pillars of our long-term economic vitality and competitiveness, including the education of our people, science and technology, and the modern infrastructure that allows us to move goods and services faster. We need to keep up the fight against corruption, which stifles innovation and is one of the biggest barriers to job creation and economic growth around the world. These are some of the things we can do together, as global partners.

Secretary Clinton said recently that it is not enough just to talk about cooperation on issues such as civilian nuclear energy or attracting more US investments to India but these needed to be followed through. What are the hurdles in this and what is your expectation from India in these areas?

It’s true, talk is easy. What’s harder, and what matters most, is turning words into deeds and achieving results that improve the lives of our citizens. When I met with Indian and American business leaders in Mumbai, the enthusiasm for greater trade and cooperation was palpable. With regard to U.S. investment in India, it’s important to remember that trade and investment between our two countries has surged. Since I took office, bilateral trade is up more than 40 percent, and it continues to grow at a healthy pace. That said, our economic relationship has by no means reached its full potential. With some 1.5 billion consumers between us there’s so much more we can build and create and develop as partners. And so we continue to work to make it easier for our companies to do business together, including working toward a bilateral investment treaty.

On the specific question of cooperation on civilian nuclear energy, the landmark deal between our two countries is a cornerstone of our broader economic cooperation. Obviously, progress in implementing the agreement has not come as fast as either of our countries would have liked. But I’m absolutely committed to the agreement’s full implementation. So I was pleased that our companies recently made progress toward beginning construction of new reactors in India. And we’ll continue to work with our Indian friends to address international concerns about India’s nuclear liability law. And as India continues to bring its export control requirements in line with international norms, the United States continues to support Indian membership in regimes such as the Nuclear Suppliers Group. There’s no reason our countries shouldn’t be working more closely to create the high-tech-high wage jobs of the future and the clean, affordable energy that India needs to grow.

There is a slowing down of the Indian economy in recent months and foreign investors are complaining that the environment for investments is not hospitable. What are the US concerns in this regard?

To some extent, India’s slower growth is a reflection of the larger slowdown in the global economy. It’s important, though, to put this in the context of India’s incredible growth and development in recent decades. India has lifted tens of millions of people out of poverty to create one of the world’s largest middle classes. Indian innovation is an engine of the global economy. And even with recent challenges, the Indian economy continues to grow at an impressive rate. The Indian people have displayed a remarkable capacity for invention and resilience in the past, and I believe they have the capacity to meet today’s challenges. That’s why, as I said in parliament, we Americans continue to believe in the promise of India.

Still, many in the American business community—one of the great champions of the U.S.-India partnership—have expressed concern that the investment climate in India is deteriorating.

They tell us that it’s still too hard to invest in India. In too many sectors, such as retail, India limits or prohibits the foreign investment that’s necessary to create jobs in both our countries and which is necessary for India to continue to grow. It’s not the place of the United States to tell any other nation, including India, how to chart its economic future. That’s for Indians to decide. I’d simply note that there appears to be a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy. And as India makes the difficult reforms that are necessary, it will continue to have a partner in the United States.

Defence Secretary Leon Panetta, was in India recently and said that defence cooperation with India was “a lynchpin” in the US strategy in the Asia Pacific region. Some commentators feel that the US wants India to be a counterweight to the growing military and economic muscle of China in the region. Is that your view?

After a decade in which we are largely focused on the wars in Iraq and Afghanistan, I made a strategic decision that, as a Pacific power, the United States would play a larger and long-term role in shaping the future of the Asia Pacific because this region is vital to American security and prosperity. Our efforts are aimed at no nation. On the contrary, our increased engagement in the region—in concert with allies and partners—is designed to advance the security, prosperity and dignity of people all across the region.

We’ve therefore strengthened our key alliances, including with Japan, South Korea and Australia, and worked to deepen partnerships with emerging powers, including India. In fact, our efforts compliment India’s own “Look East” policy of greater engagement in East Asia. Our two nations are working more closely together, with other partners, in regional organizations like ASEAN and the East Asia Summit. We recognize that freedom of navigation in the Indian Ocean and other shipping lanes is critical to our prosperity and the global economy. We are now India’s largest military training partner, and we look forward to deepening our cooperation in the years ahead to meet shared challenges, including humanitarian crises and disaster relief.

We value our growing partnership with India because it advances our mutual security—not as a counterweight to any nation. As I’ve said many times, the United States welcomes the rise of a peaceful and prosperous China that contributes to regional and global security, prosperity and peace. That’s why we continue to pursue a cooperative relationship with China, including greater cooperation between our militaries so we’re promoting understanding and reducing the chances of miscalculation. I’ve always rejected the zero-sum notion that one nation’s success has to come at another nation’s expense, and I continue to believe that a secure, stable and prosperous Asia Pacific will benefit all our nations.

Afghanistan has been one of the key subjects of discussion between India and the US, both of whom have signed strategic partnership agreements with that country. There are worries in India about the military and strategic vacuum in Afghanistan after the US-led forces pull-out from there. What role do you foresee for India in Afghanistan thereafter?

Since America was attacked on 9/11 by al Qaeda from Afghanistan, the United States—along with allies and partners—have devoted enormous resources to defeating al Qaeda and making sure that Afghanistan is never again used as a launching pad for attacks against our nation. More than 2,000 of America’s sons and daughters have given their lives in this fight, and we’ve invested billions of dollars, to deliver justice to Osama bin Laden, put al Qaeda on the path to defeat, reverse the Taliban’s momentum and train Afghan forces.

As a result of this spring’s NATO Summit in Chicago, we now have a clear path for bringing the war to a responsible end. Next year, in mid-2013, Afghan forces will take the lead for combat operations and coalition forces will have shifted from combat to support across the country, and our troops will continue to come home. By the end of 2014, the transition to Afghan lead for security will be complete so that Afghans can take responsibility for their own country. After 2014, NATO will continue to train, advise and assist and support Afghan forces as they grow stronger. Likewise, the Strategic Partnership Agreement that the United States signed with Afghanistan, as well as our designation of Afghanistan as a Major Non-NATO Ally, makes it clear that we will not abandon that country, or the region, to terrorists who threaten us all.

Just as India has been critical to Afghanistan’s progress to date, India will be critical to Afghanistan’s future. India’s generous contributions have helped to train Afghan police, promote development and improve the lives of the Afghan people. India was the first nation to forge a Strategic Partnership Agreement with Afghanistan, and India’s civil service can be a model as Afghans strengthen their own governance and institutions. In hosting the recent conference on private investment in Afghanistan, India has shown a readiness to champion the nation’s economic development.

There is a relative thaw in the ties between India and Pakistan. They are talking on various subjects although there have been no dramatic results. How does the US see the Indo-Pak dialogue and what, in your view, is the best way forward for the two countries to resolve their bilateral matters, including Jammu & Kashmir?

The United States welcomes any dialogue and lessening of tensions between India and Pakistan, which would be good for South Asia and good for the world. President Zardari’s visit to India was encouraging. Increased trade and people-to-people contacts between Indians and Pakistanis can lead to greater prosperity, and understanding, on both sides. Efforts in New Delhi and Islamabad to improve relations give hope for further progress, including a possible visit to Pakistan by Prime Minister Singh.

So we welcome dialogue. At the same time, we believe that disputes between India and Pakistan can only be resolved by the two countries themselves. It is not the place of any other nation, including the United States, to try to impose solutions from the outside. That said, nations must meet their responsibilities and all of us have a profound interest in a Pakistan that that is stable, prosperous and democratic.