Sunday, January 28, 2007

Why does US consider India important?

In a very good article written in ET, CP Bhambhri tries to make sense of US tilt towards India. I recommend reading the full article at least once. Do so here.

  1. Relationship with India, whose energy needs are humungous, is in US’s business interests. This is recognized and stated as such by the US President, George Bush himself. India is a huge market for the sale of nuclear technology for US firms.
  2. The opening up of the defense sector by India for private, public and foreign investors, has added a certain coagulating effect to the decision making process in the US about the deal.
  3. In the uni-polar world, the US is looking for new strategic alliances in every region, including Asia. Asia of 21st century has come out of its inherited under-development under colonialism. The end of cold war made a lot of sense for US to look at India in a much different way than it did in the past. A certain and subtle change in geopolitical outlook of America.
  4. Sino-US relations have come to be regarded as being based on ‘cooperation and conflict’. US cannot ignore China, not can it also tolerate the growing strength of a communist China. Hence it needs a counterweight in addition to Japan, South Korea and Taiwan. A democratic and powerful India could fit the bill.
  5. There is a realization in US that India is not only a good strategic fit for the US, it is also an emerging economic power of the 21st century. There is a lot to gain from this emerging economic power than mere strategic advantages. These two actually complement each other.