South and Central Asia: U.S.-India Partnership

As Prepared

It’s always a pleasure to visit here and I’m especially honored to be the guest of the Consul General, Ambassador Mulay, who is not only a distinguished diplomat, but also an accomplished poet and an award-winning author – and I’m sure that makes more than a few aspiring writers in New York rather jealous.

I know that August is generally a quiet time in New York so I am particularly grateful that all of you took the time to come here tonight. I think of August as the quiet before the storm as we gear up for a particularly eventful fall. And for New Yorkers, I think it will be more like a deluge as you prepare for a heavier than usual onslaught during the UN General Assembly as heads of state descend upon the Big Apple to commemorate the 70^th anniversary of the United Nations.

On the U.S.-India front, we are also expecting a very intense fall as we launch the Strategic and Commercial Dialogue between our two countries and prepare for the Prime Minister’s return visit to New York, and the first Indian PM to visit California since Jawaharlal Nehru. I will talk more about the exciting opportunities that this visit presents in a moment.

But first I want to reflect on the incredible journey we have been on in our partnership. Last month marked the 10 year anniversary of civil nuclear cooperation between the United States and India. And it marks a decade of growth in our partnership. Our embassy in New Delhi has put together some facts and figures that might help put in perspective how far the United States and India have come. I would like to share a few of these highlights and illustrative facts and figures:

Business:

• U.S. investments in India have soared – from a total of $7.7 billion in 2004 to $28 billion today. Over the past few years, India has become the second fastest growing source of foreign direct investment into the United States.

• Two-way trade has nearly tripled from $36 billion in 2005 to $104 billion in 2014, as we work towards $500 billion in trade.

• Today, there are over 500 U.S. companies active in India, while the number of Indian companies operating in the United States has increased from roughly 85 companies in 2005 to over 200 companies today.

Defense Cooperation:

• Ten years ago, the United States and India conducted very little defense trade. What a difference a decade makes. Over the last few years, the United States has signed approximately $10 billion in defense sales to India. Our defense cooperation has helped promote India’s role as a security provider in the Indian Ocean region with direct benefit to third countries. For example, the Indian Air Force used C-130s and C-17 aircraft to evacuate Indian and third country nationals from Yemen and speed relief supplies to Nepal after a devastating earthquake. Now we are taking the partnership to a new level as we embark on co-development and co-production of defense technologies.

• The complexity of military exercises has increased in the last 10 years. The annual bilateral training exercise ‘Yudh Abhyas’ has grown from a squad and platoon-level exercise to a company/battalion-level maneuver exercise, including a brigade-level computer simulation exercise where the U.S. and Indian Armies operate together. This year, the U.S.-India naval exercise ‘Malabar’ will welcome the Japan Maritime Self Defense Force for the second consecutive year, along with other countries.

Space:

• Perhaps the most exciting area of cooperation is in the area of space science where we are quite literally soaring to new heights – from collaboration on projects that measure aspects of Earth’s oceans and global precipitation, to recent success on our respective missions to Mars, and our joint work on a satellite project that will help scientists understand climate change and natural disasters. Our scientists and space organizations continue to look for new areas on which to collaborate, including the exciting frontier of deep space exploration.

But we are not content to rest on the record of how far we have come. In fact the excitement in the relationship over the past year is driven by the potential of how much farther we can go. And the potential of this partnership to not only deliver benefits to our two countries and our people – but the global benefits that can be achieved by what President Obama has described as one of the defining partnerships of the 21^st century.

And that is precisely why the fall is such an exciting time for the U.S.-India relationship.

You see the Prime Minister of India has set India’s economic transformation as one of the key priorities for his administration. And for the U.S. India strategic partnership, we recognize that an India that is strong and prosperous at home will be a stronger partner regionally and globally in tackling common challenges and achieving shared goals. We have a core strategic interest in each other’s economic prosperity. That is why the President and Prime Minister decided last January, during that historic Republic Day Visit, to elevate the Strategic Dialogue to a Strategic and Commercial Dialogue. And I must say, Secretary Kerry and Secretary Pritzker are looking forward to hosting Minister Swaraj and Minister Sitharaman and the whole Indian delegation.

It is also why there is such a buzz around the PM’s visit to San Francisco and Silicon Valley. Because we know that one of the things that brings the U.S. and India closer is our culture of innovation and entrepreneurship that define our two societies. There is much excitement about the potential of a technology partnership between our two countries that brings about a new growth model focused on innovation and technology to usher in cleaner, more sustainable and more inclusive models of economic growth.

I was just in Silicon Valley last week, meeting with the folks that are at the forefront of the latest tech and innovation revolution – the entrepreneurs, scientists, and investors that are conceiving, developing, and scaling the technologies of tomorrow. I went to Silicon Valley to explore how the Valley’s technology, capital, and innovation ecosystem can be a game-changer for India’s economic development – and give heft to how the United States and India jointly address the world’s most vexing challenges.

Prime Minister Modi’s visit provides an opportunity to explore how new technologies can help India secure reliable electricity for hundreds of millions of its people, build clean, safe and smart cities, provide the opportunity for a quality education, and much more.

In all of my meetings I found that American businesses are very eager to partner with India to find new solutions to these perennial problems.

President Obama has said that we seek a future where security is the foundation of peace and prosperity, where international law and norms are enforced, where commerce and freedom of navigation are not impeded, where emerging powers contribute to regional security, and where disagreements are resolved peacefully.

The United States and India made clear our shared commitment to these goals in our Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region, announced during the President’s Republic Day visit, and we are working hard to make this vision a reality.

In defense, we have signed a new ten-year framework agreement for cooperation. We are conducting joint Naval, Army, and Air Force exercises. The United States is now India’s leading defense supplier and in recent months we have seen India use some of those platforms to help people in need, in Yemen and in Nepal. Under the Defense Technology and Trade Initiative, we’re working to co-develop and co-produce new defense technologies, including an aircraft carrier working group, to support India’s indigenous defense capabilities and our partnership to ensure that our seaways stay safe for global trade and transit.

Together we can better prevent the trafficking of drugs, weapons, and people. Together we can better bring relief and assistance to those affected by typhoons, earthquakes, or civil strife.

President Obama also said that we seek a future where free markets create wealth and opportunity, where an open and international economic system has clear rules that every nation plays by, and where trade is free and fair.

We are realizing this future in the growing commerce between our two nations: annual two-way trade is now over $100 billion, five times what it was ten years ago, and we want to see it increase to $500 billion. That goal is achievable, especially if we can move forward on a high-standard Bilateral Investment Treaty, the completion of which would help India attract more U.S. capital and technology. And we’re both working to advance regional connectivity through the creation of new transit corridors and the lowering of trade barriers.

There’s also tremendous economic potential in clean energy. The United States and India have mobilized nearly three billion dollars in the last six years for projects in India. Together we are doing cutting-edge research on solar, biofuels, and energy efficient buildings. New energy storage technologies being developed in the United States could revolutionize how renewables are deployed and grids are built in India. Our civil nuclear cooperation continues to advance, and will be a vital part of India’s energy future.

Protecting our values is what makes our two countries strong and resilient, and our shared respect for fundamental rights is what makes our partnership a powerful model for good in the region and the world.

In all of these domains, the United States and India have common interests. If we can be proactive in supporting and developing rules and norms, there is far less chance that we’ll need to be reactive to emerging perils and threats.

With the United States and India leading together on our common interests and shared values, we can invent a future of peace, prosperity, and dignity for the citizens of our nations, and the citizens of the world. It’s both exhilarating and humbling to get to work on such an endeavor, but it’s also a joy to get to work with such great counterparts. So thank you again for inviting me here today, and I wish everyone a lovely evening.