Biden And India: The Way Forward in Asia

The United States of America (US) will inaugurate Joseph R Biden as the President from January 20, 2021. New Delhi and many governments around the world have begun to speculate the kind of relationships the Biden Administration will establish with them. In the context of India, the relationship has seen upswing since the Indo-US Nuclear Deal under the Bush II Administration. It achieved new heights and rhetoric with public display of bonhomie between President Trump and PM Narendra Modi. It will, however, be a grave mistake to disregard it as only rhetoric and on the other hand consider the same in euphoric terms. That moment also had tremendous difficulties with Trump at the helm.

During the Biden Presidency, the scepticism around Trump’s commissions and omissions will no longer be there as Biden is a politician with an outstanding track record and experience at both domestic and international levels. As a Vice-President in the two Obama Administrations (2009-2016) he was responsible for some key decisions regarding policy towards South Asia.

China figures prominently in the United States calculus for the region. The Biden administration is very likely to carry forward the “Rebalance to Asia and Pacific” and “Indo-Pacific” idea, with the Quad as its initial operational strategy against the Chinese Maritime Silk Road Initiative (MSRI). Furthermore, India has resisted China’s attempts to bully countries in the South Asian region.

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In terms of geopolitics, therefore, US will maintain India as its major ally in the region. The signing of Logistics Exchange Memorandum of Agreement (LEMOA), COMCASA and BECA during the Trump presidency has strengthened the partnership has been raised to strategic level by Washington. It finally seems that the US has decided that along with its long-standing major allies in East Asia, India is a key actor to balance China.

Joe Biden has been critical of Pakistan’s approach to its neighbourhood in the west in Afghanistan and its support to the insurgent groups operating from Pakistani territory. During the first Obama administration as Vice-President, Joe Biden was part of the decision making which led to the Abbotabad strike for Osama Bin Laden’s execution.

Due to Pakistan’s support to terrorist groups operating in Afghanistan and India, Biden’s efforts led to suggestion of a number of stringent conditions incorporated in the Enhanced partnership with Pakistan Act, 2008. The conditions related Pakistan’s support to Al Qaeda, non-interference of the Army in judicial and political processes and the funds ($ 7.5 Billion) were not to be used by the Army. These caveats ultimately led to a major blowback by the military in Pakistan and created a rift between the two countries.

Trump Presidency’s overt show for India and Indians in the US was closely scrutinized because of its frequent calls for limiting immigration in various categories, especially H1B visas. Indian immigrants and people of Indian descent have been at the forefront of the development of American technology industry and innovation. This contribution was frequently invoked against Trump’s calls for indigenization of major industries and limiting migration and citizenship visas.

Biden on the other hand has promised to expand high-skilled visas positively impacting mobility of Indian tech graduates. It is expected that the new administration may revoke the suspension of work permits of spouses of H1B visa holders imposed by Trump. This also has positive implications for Indians employed in the United States.

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An election promise by Joe Biden about higher taxation for the corporates in the US may be beneficial for India as this can drive out investments to overseas destinations. India with its reduced tax rates can be one such attractive destination for such investors and the growing international partnership between the two countries provides the right environment. India on its part has to create conditions favourable for investors with reduced red tape and bureaucratic impediments.

US Foreign Institution Investors (FII) account for more than 30% of total FIIs in India making them the most important actors in the Indian financial set up since 2000. Similar speculations have been made for the enhancement of trade by a number of economic pundits because the Trumpian ideas of protectionism for the US may be abandoned. Trump Administration removed India from the Generalised List of Preferences in June 2019. India can expect a review of the list under the Democrats administration.

Biden’s larger outlook for South Asia and his experience combined with Antony Bliken’s knowledge of the region may lead to enhanced partnership with India. On the other hand, it must be taken into account that Americans have a penchant for realism and it still is the most important theoretical strand guiding US foreign policy.

New Delhi without being euphoric about the unprecedented engagement with and attention from the mighty US may do well to remember that India has a strategic location vis-à-vis China in Asia and the Indo-Pacific and the US needs a strong ally in the region to counter/contain the Chinese. That this realism is the original and real driver of the United States’ approach towards India since the beginning of the millennium.

Domestic Brownie Points For Trump & Modi

India gave President Donald Trump exactly what he asked for. Massive crowds in Ahmedabad, the Taj Mahal in Agra and energy & defence deals in Delhi. A deal worth $3 billion for the purchase of Apache and MH-60 helicopters was finalized before the US President landed in India.

The show and spectacle in Ahmedabad’s Motera stadium, where President Trump and First Lady Melanie were greeted by colorfully dressed enthusiastic crowds set the mood for the visit on Monday, soon after the US leader landed. He was accompanied by daughter Ivanka and son-in-law Jared Kushner, besides a host of senior officials.

It is well known that Donald Trump loves to be feted. Prime Minister Modi and his government ensured that President Trump would have exactly what he wanted. His ego got a massive boost and the visiting dignitary was clearly delighted. He showered praise on Prime Minister Modi and declared that America loved India and Washington would be a loyal friend.

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Though violence has wracked north east Delhi during the Trump visit, the President has refused to comment on that or the Citizenship Amendment Act. On Kashmir, while he again offered mediation, he made it clear that he was willing to help only if asked. Though he spoke of fighting Islamic terror, he was not really aiming at rebuking Pakistan. For Trump Islamic terror is ISIS or Al Qaeda and not groups operating against India. Nevertheless he assured India that Pakistan is being urged to clamp down on these groups and Prime Minister Imran Khan is getting there. Trump also spoke of religious freedom and mentioned not just minority Muslims but Christians as well. The Christian right in the US is part of Trump’s support base.

Some are disappointed that no major deals were announced, though a mega trade deal is in the offing. Two MoUs were signed on mental health and safety of medical products. A letter of cooperation between Indian Oil Corporation and ExxonMobil India LNG was also signed. India is now looking to US to diversify its energy market. Energy imports from the US which stood at $7 billion in 2019 will rise to $9 billion in 2020

The significance of the Trump visit goes way beyond deals or the personal chemistry between Modi and the US President. “It reinforces the connect between people of the two countries and it will resonate on every aspect of the relationship, from the strategic global partnership, maritime security, to trade and energy cooperation, homeland security,” foreign secretary Shringla said at a news conference after the talks at Hyderabad House.  

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The fact that President Trump chose to come on a standalone visit to India, and on an election year, shows exactly how far relations between India and the US have improved. The people connect with 4 million Indian American’s playing a major part in this effort and contributing to the US economy, the sky is the limit for these two democracies. People in both countries endorse the ties. This is in sharp contrast with India’s relations with Russia, which are excellent at the governmental and political level, but poor on people to people contact. Getting private business off the ground between India and Russia is a major problem, despite the best efforts of New Delhi and Moscow. But there is no such difficulty when it comes to Indian investment in US. Business leaders are eager to do so.

The transformation of ties between the two countries, which were on opposite sides of the Cold War divide, began with the Indo-US nuclear deal in 2005. The strategic consideration underlying Washington’s decision was to checkmate China’s growing military and economic might in Asia. By building ties with democratic India, another large Asian country and helping modernize its defence capabilities.

US wants India to be a part of the Indo-Pacific defence architecture an area which now includes the Indian Ocean. This works for both India and America, though Delhi has so far resisted the idea of joint patrolling of the Pacific, near the South China Sea. This has to do with avoiding a confrontation with China.

Trump’s visit should be seen against this background. And if a few billions go into US coffers in the process of building up India’s defence capabilities, it is fine. So far New Delhi has stuck to its promise of buying the S 400 missile defence system from Russia, despite enormous US pressure. Washington must realise that a country like India cannot be coerced.

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It serves India for China to realise that Delhi has powerful backing in the international community. Though finally every country has to look after its own interests and not back on US or Europe to come to their help, developing India’s defence capabilities is important, more so as China has transformed its army, navy and air force.

Successive Indian prime ministers from Atal Bihari Vajpayee, to Manmohan Singh and now Narendra Modi know the importance of friendship with the US. Manmohan Singh risked his prime ministership to get the deal through, despite opposition from a large majority of his party men as well as the BJP and the Left parties. Singh realized more than any other leader that the civil nuclear deal would open many doors for India and help Delhi to finally be counted as a force in the world.  India’s nuclear apartheid ended with the signing of the pact for which former President George W Bush did some heavy lifting.

The need to counter authoritarian China with a democratic India is shared by Republicans and Democrats alike. So it does not matter which party finally wins the November elections, India-US ties will remain strong. However a Democratic President, especially if Bernie Sanders is the winner, will certainly have much more to say about human rights, treatment of minorities and Kashmir. For Trump these are India’s internal problem and he trusts Prime Minister Modi to take care of them. But democratic values are important and even Trump cannot totally ignore them up to a point.

Both Modi and Trump have gained domestic brownie points from the visit. Modi’s image among his followers will get another major boost after Trump’s fulsome praise of him as a leader with a vision. For Trump the India trip so close to elections may help to garner Indian-American votes, though most have usually opted for Democrats. More important Trump can boast of the welcome he received by adoring crowds in India, a rarity for him on visits to other parts of the world. Critics here believe India may have erred in opting blatantly for Trump in the November elections. But that remains to be seen.