Whatever the setback to Democrats, the President has set his sights on restoring growth and employment at home, ensuring a stable and rebalanced world economy, and advancing human rights and democracy. These are issues on which he would find great resonance in India. Talks between President Obama and Prime Minister Dr Manmohan Singh take on special importance not just at the bilateral level - where several new initiatives will be unfolded - but in redesigning multilateral architectures and meeting common global challenges. The G-20, of which India is an ardent participant in decision-making, needs rejuvenation in view of signs of disarray in the ranks of major economies.

Reflecting the crisis build-up before the G-20 Summit at Seoul on November 10-11, the Prime Minister has called for a “meeting of minds” to give renewed impetus for co-ordinated action on financial reform and rebalancing of the global economy. “I am worried about the global situation”, he was quoted as saying in an interview to the Financial Times. President Obama greatly values Dr. Manmohan Singh's guidance on the management of global economy and the critical agenda of G-20 will have priority in their discussions in New Delhi. India's own fast growth, mainly domestic driven, can get impeded if further shocks emanate from the advanced economies.

A new dimension to the global crisis is the “currency war” that has raged for several weeks now, with emerging economies, mainly in Asia, trying to prevent appreciation of their currencies in relation to the declining dollar, in the face of a surge in capital flows from advanced economies where recovery is painfully slow and uncertainties are rising. China has firmly rejected demand from both USA and EU, its two leading trade partners, for allowing greater flexibility to its “under-valued” currency which gives Beijing competitive advantage to build trade surpluses. Nations are now desperately looking to G-20 Summit for a co-ordinated response to ensure greater exchange rate stability and reduction of global imbalances.

On regional issues, the President and Dr.Manmohan Singh will review the current situation in the war against terrorism in the Pak-Afghan region and developments in South Asia in general. USA, according to Obama Administration officials, attaches importance to India's growing leadership in Asia and beyond and their partnership would help build global security and prosperity. The Administration looks forward to India taking its place as a non-permanent member in the UN Security Council (2011-13) and to work together on critical global issues, such as non-proliferation, counter-terrorism and food security

Geo-political issues have risen to the fore in the Asia-Pacific region where the United States seeks to re-assert its presence and partnership with nations even as dominant China, throwing its weight around, gets embroiled in disputes with Japan and some of South-East Asian countries over sovereignty claims to resource-rich islands in the seas of the Pacific. India's concerns are mainly related to free navigation, especially on the Indian Ocean, and safe passage of ships through corridors like the Straits of Malacca.

Finance Minister Mr Pranab Mukherjee, on his visit to Washington to take part in the annual Fund-Bank meetings, spoke of the multi-dimensional relationship between India and USA, and said they could also work together to promote shared interests such as peace and stability in Asia. He referred in this connection to dangers and risks of disruption of trade routes from war or terrorist attacks on ships passing through sea corridors like the Straits of Malacca, which are of vital interest to not only India, and South East Asia but to the whole world. Mr Mukherjee hoped President Obama's visit would lay out “a vision for our strategic partnership based on our shared values and our shared interests”

Issues of immediate concern on both sides have been extensively discussed and the path looks almost cleared of irritants, as a result of the series of visits by Indian Ministers to Washington and senior State Department officials meetings with Indian officials in New Delhi. These included IT-related outsourcing curbs and H1B visa fees and restrictions on certain high-tech exports and US private sector reservation on the nuclear liability clause in the Indian legislation. Trade, Investment, Agriculture, Education, Science and Technology, Innovation, clean energy and space exploration are among important areas where ongoing cooperation will be raised to new levels.

America, which is ceasing to be driver of global demand, welcomes the role of emerging market economies and other robustly growing developing countries in leading the global recovery at present and contributing over time to the G-20 objective of strong, balanced and sustainable world growth. The United States, mired in deficits and debt and weaknesses in the household and financial sector balance-sheets and with unemployment at 9.6 per cent, will take years to recover to normal growth and job creation. Thus, the United States sees its opportunities and interests in the dynamically growing emerging economies. As the world's second fastest growing economy which would also become the third largest by 2025, India is viewed as the most lucrative market for goods and services.

A White House spokesman said USA and India were on an “important relationship” and the President was involved in series of meetings with the national security team to ensure a successful visit, which is being undertaken immediately after the midterm Congressional elections. USA needs to create jobs and grow as no longer could American consumers drive world demand, the spokesman said. The President, who is also visiting Indonesia, Korea and Japan after India, would talk about trade and jobs a great deal on this trip and “we will hopefully have some tangible results from it”.

On the President's visit, other US officials pointed out no other country in Asia has “the thriving democracy, economic promise, and growing record of cooperation” as India, and the world's two large democracies were best positioned to contribute to building an international system in which freedom and human rights are advanced, poverty gets reduced and trade expands and environment safeguarded. India and USA are already co-operating in security intelligence aimed at marginalizing violent extremists and curbing the spread of weapons of mass destruction. .Defence co-operation will also get a boost after the discussions recently between Defence Minister Mr A K Antony and his US counterpart Mr Robert Gates in Washington.
(IPA Service)