Why?
Deals agreed upon during Bush's term need to be sealed now. Negotiations haven't been smooth, promises haven't been kept.
What are these deals?
Civil Liability for Nuclear Damage Bill, 2010
- Needed to implement the Indo-US nuke deal. Passed now, but doesn't meet the American demand to indemnify suppliers from any damage caused by nuclear accidents.
- America says its suppliers are at a disadvantage—unlike those of most other countries, American nuclear suppliers don't have state funding.
- Securing insurance cover would be a problem for these firms
- India says it couldn't short-circuit the democratic process (even though, frankly speaking, the government tried its best to do so). Look at the bright side—the US can compete for the nuclear pie, estimated to grow to $150 billion by 2030. Its companies are slated to set up two power plants in Andhra Pradesh and Gujarat.
H-1B visa fees
- The US recently hiked the fees by $2,000 on each application. The funds thus generated, it said, will be used to strengthen the US-Mexico border.
- India says this will burden its IT firms to the tune of $200 to $250 million every year. Threatens to go to WTO for redressal.
- THe US says, sorry, but it cannot short-circuit the legislative process.
Deals India hasn't signed
- The Mutual Logistics Support Agreement
Allows Indian and US ships and aircraft free access to each other’s facilities.
- The Communication Interoperability and Security Memorandum of Understanding Agreement (CISMOA)
Without it India doesn't have access to sophisticated information and data when it buys American arms.
- Basic Change and Cooperation Agreements for Geo-Spatial Cooperation
Without it, India doesn't get access to US satellite maps, sophisticated information and data to help the defence forces to pin-point targets.
The reason
It's believed India fears getting into a tight security embrace with the US.
Doubts, Suspicion, Demands
- India feels the US is too dependent on Pakistan to stabilise Afghanistan. So it’s downplaying its role in fomenting terror.
- India’s role in Afghanistan being marginalised. US ignoring New Delhi to please Pakistan. US willing to negotiate with the Taliban—not to India's liking.
- India wants categorical support from the US for a permanent UNSC seat
What the US hasn't done
It hasn't taken off leading Indian companies and organisations like ISRO and DRDO from the Entities List. This has hampered hi-tech transfer to India.
India's goal and strategy
- India wants the US on its side, but feels it extracts too heavy a price and takes New Delhi for granted
- India doesn't have to kowtow to every US demand. Tell Americans it can't ignore the democratic process, that it can benefit economically from India.
How
- Apart from the $150 billion nuclear pie, India, by 2022, is to spend over $110 billion on defence purchases
- It will also buy 126 Medium Multi-Role Combat Aircraft (MMRCA), worth $11 billion.
- Money talks, it is India's best leverage with the US, a country still in recession.
