INDIA NEWS INDIA-U.S. RELATIONS: 2000March 2000 PUBLISHED BY PRESS & INFORMATION, EMBASSY OF INDIA, WASHINGTON, DC President of the United States Bill Clinton to visit India See CLINTON VISIT, Page 2 President Clinton 9s visit to India is the fourth by a US President. Earlier vis- its were by Presidents Dwight Eisenhower (1959), Richard Nixon (1969) and Jimmy Carter (1978).
From the Indian side, Prime Minister Jawaharlal Nehru visited in 1949, 1956 and 1961, President Radha- krishnan in 1963, Prime Minister Indira Gandhi in 1966, 1971 and 1982, Prime Minister Morarji Desai in 1978, Prime Minister Rajiv Gandhi in 1985 and 1987 and Prime Minister Narasimha Rao in 1994. President Clinton 9s visit is taking place at a time of warming of relations between the two countries, and reflects the common desire of both countries to move towards a new, broad-based, forward- looking, politically constructive and economically productive part- nership. The threat of terrorism faced by both countries from the same source has added a new dimension to India-US cooperation.
India 3 U.S. Relations Over five decades, the relationship between the world 9s two larg- est democracies has witnessed periods of ups and downs. Natural affinities between the two countries, characterized by ... more. less.
pluralistic and open societies, common language, good track records of de- mocracy and common commitment to the rule of law and basic freedoms, did not yield the desired results because of differing positions during the Cold War.<br><br> Successive American Administrations concerned with the need to contain communism did not view India 9s leadership of the Non- aligned Movement very favorably. The US alliance with and mili- tary support to a country hostile to India was also a cause of friction. The dominance of the state sector in the Indian economy was viewed in the US as inefficient and wasteful, and detrimental to its own interests.<br><br> The Indian economy nevertheless benefited considerably during this period from US food aid (PL-480) and IN THIS ISSUE c...India and the United States are natural allies in the quest for a better future for the world in the 21st century. d 4Prime Minister Vajpayee September 28, 1998 c...(India) is a great democracy that has pre- served their democracy, I must say, against enor- mous odds. And we have an enormous common interest in shaping the future with them, and I 9m looking forward to it. 4President Clinton February 1, 2000 Past U.S.<br><br> Presidential Visits to India (Photos) ................2 India-U.S. SpaceCoopera- tion: Reaching for a new frontier ...............................3 Bilateral visits of Heads of State/Government ..............3 India-U.S. Economic & Trade Relations: A Growing Partnership .........................4 India-U.S.<br><br> Science & Technology Relations 3 Harnessing the Potential ....6 Indian-American Commu- nity: A Story of Achievements .....................7 Internet Guide to India ......8 CLINTON VISIT (Continued from page 1) economic, scientific and technological assistance that, among others, made the Green Revolution in the mid-1960s possible. The end of the Cold War in the 1990s, coinciding with the liberalization of the Indian economy, saw a steady improvement in India-US relations with the Clinton Administration identifying India as one of the 10 major emerging markets. The last few years have witnessed a number of high- level exchanges, unprecedented in the history of bilateral relations, as well as a commencement of a cstrategic dialogue d, which were expected to culminate in a US Presidential visit to India in 1998.<br><br> The nuclear tests of May 1998 caused a tempo- rary setback to the relationship. The US imposed wide-ranging economic sanctions under the 1994 Nuclear Proliferation Prevention Act (Glenn Amend- ment) besides terminating all forms of defense cooperation, including IMET. The US has, none- theless, recognized the need to engage India in an effort to address its own concerns and to normalize relations.<br><br> Following ten rounds of talks from June 1998 between External Affairs Minister Jaswant Singh and Deputy Secretary of State Strobe Talbott, normalcy has been restored to the bilateral rela- tionship, although some issues still remain to be resolved. President Clinton 9s forthcoming visit to India is an opportunity for both countries to build a new relationship between the world 9s two largest democracies in the 21st century based on their common strengths, values and interests. Bilateral trade between the two countries has exceeded US $12 billion in 1999.<br><br> There was a decline in FDI inflows from the US in 1998 (US $349 million as against US $719 million in 1997), which could be attributed not only to the impact of the economic sanctions on the general invest- ment climate in India, but also to the South East Asian turmoil and the slowdown in the Indian economy. There was an upward trend in 1999, with FDI inflows in the first four months of the year itself amounting to US$ 186 million. The waiver of sanctions and the opening up of the insurance sector in India are likely to further increase FDI inflows into India in the near future.<br><br> Some of the areas in which the two countries are well placed to launch a new era of cooperation are science and technology, energy, environment, infrastructure development and information tech- nology. Apart from the two governments, co- operation is also being intensified between professional societies and business and trade representatives of the two countries. 2 INDIA NEWS " March 2000 Past U.S.<br><br> Presidential Visits to India President Dwight Eisenhower on arrival in New Delhi, December 10, 1959 with Prime Minister Nehru, Vice President Radhakrishnan, Mrs. Indira Gandhi, and President of India Rajendra Prasad. President Richard Nixon addressed a state banquet in the Rashtrapati Bhavan in New Delhi, August 1, 1969; Prime Min- ister Indira Gandhi is to the right of the President.<br><br> Prime Minister Morarji Desai welcomes President and Mrs. Jimmy Carter on their arrival in New Delhi, January 1, 1978. INDIA NEWS " March 2000 3 India-U.S.<br><br> Space Cooperation: Reaching for new frontiers " In the early 1960 9s, the United States had offered substantial assistance to India in setting up an Equatorial Rocket Launching Station at Thumba (TERLS). Subsequently, India dedicated this facility to the United Nations in 1968. Since then, scientists from various countries have launched more than 3000 sounding rockets for research purposes.<br><br> " During 1975-76, under a collaborative bilateral agreement, an experiment, Satellite Instrumental Television Experiment (SITE) was conducted. Under this agreement, a U.S. satellite, ATS-6, beamed educational programs to direct reception television sets to 2400 far flung villages exposing them to a new and immensely powerful medium of television.<br><br> " Anuradha , an Indian experiment for cosmic ray studies was part of NASA 9s third Spacelab mission. " The Indian Institute of Geomagnetism (IIG) and Survey of India have made use of data received from NASA 9s MAGSAT Satellite for research and analysis. " India has also participated in Guest Investigator Program of NASA 9s Einstein and HEAO-B X-ray astronomy satellites.<br><br> " The United States supplied samples of lunar material collected by its lunar probes to India for research purposes. " Under a Memorandum of Understanding between India and U.S. signed in 1977, India received data from LANDSAT satellites.<br><br> " Under a commercial arrangement, Space Imaging of Denver, CO markets the Indian Remote Sensing satellite imageries of panchromatic resolution of 5m 4 which until recently has been the best available in the public domain. " In 1997, NASA & NOAA of United States and Indian Space Research Organization & the Depart- ment of Science and Technology of India have agreed to share meteorological data from India 9s INSAT satellites. Under this agreement, collaborative research in the area of earth & atmospheric sciences will also be undertaken.<br><br> Bilateral visits of Heads of State/Government From United States From India 1.President Dwight D. Eisenhower - December 1959 2.Vice President Lyndon Johnson - May 1961 3.Vice President Hubert Humphrey - February 1966 4.President Richard Nixon - July 1969 5.President Jimmy Carter - January 1978 6.Vice President George Bush - May 1984 1.Prime Minister Jawaharlal Nehru - October 1949 2.Prime Minister Jawaharlal Nehru - December 1956 3.Vice President Sarvepalli Radhakrishnan - March 1958 4.Prime Minister Jawaharlal Nehru - November 1961 5.President Sarvepalli Radhakrishnan - June 1963 6.Prime Minister Mrs. Indira Gandhi - March 1966 7.Prime Minister Mrs.<br><br> Indira Gandhi - November 1971 8.Prime Minister Morarji Desai - June 1978 9.Prime Minister Mrs. Indira Gandhi - July 1982 10.Prime Minister Rajiv Gandhi - June 1985 11.Prime Minister Rajiv Gandhi - September 1987 12.Prime Minister P.V. Narasimha Rao - May 1994 4 INDIA NEWS " March 2000 India-U.S.<br><br> Economic & Trade Relations: A Growing Partnership " India 9s economic reforms have generated a trade momentum between India and the U.S. that grows every year. Starting in 1991, India has carried out sweeping changes in its national economic policies to stimulate domestic and foreign investment in many sectors of the country 9s economy.<br><br> The effect on trade and investment relations with the United States has been profound. " The U.S. is now not only the largest investor country in India, it is also India 9s largest trading partner.<br><br> " The trade between the two countries in 1999 totaled US $ 12.79 billion reflecting an increase of nearly 100% since 1992. Growth Rate " India 9s exports to the U.S. have been growing since 1992 at an average rate of 13.7% in dollar terms.<br><br> " Imports from the USA have been fluctuating. The rate of growth declined by 0.6% in 1996, increased by 8.9% in 1997, declined by 1.96% in 1998 and grew by 4.6% in 1999. Trade composition " India 9s exports to the US have been rising mainly on account of significant increases in the exports of diamonds, textiles and ready-made garments, machinery, carpets, footwear and leather products, dyes, iron and steel products, chemicals, edible fruit and nuts and spices, coffee and tea.<br><br> " Six items, namely, textiles and clothing, cut and polished non-industrial diamonds, carpets, shrimp and prawn, footwear, leather goods and cashew nuts, account for about 75% of total Indian exports to the US. " The chief items imported from the U.S. at present are machinery including project items, fertilizers, aircraft and aeronautical equipment, and organic chemicals.<br><br> See PARTNERSHIP, Page 5 19921993199419951996199719981999 India 9s Exports3,7814,5515,3025,7366,1697,3218,2259,083 India 9s Imports1,9142,7612,2963,2963,3183,6163,5453,707 Turnover5,6957,3127,5989,0329,48710,93711,77012,790 Balance (in favor of India)1,8661,7903,0052,4402,8513,7054,6805,376 India - U.S. Bilateral Trade (in US millions) INDIA NEWS " March 2000 5 Institutional Framework for Trade and Investment "Indo-US joint Business Council The joint Business Council has become more active in recent years and has organized several promotional events, apart from their annual meeting held alternately in New Delhi and in Washington. U.S.<br><br> Investments in India " India 9s gradual and steady integration with the global economy has led to a quantum jump in Indo- US economic ties. USA continues to be the dominant investor in India in terms of Foreign Direct Investment (FDI) approvals, actual inflows and portfolio investment. " Total FDI inflows between 1991 and April 1999 were $12.6 billion.<br><br> US FDI inflows were about $2.3 billion between 1991 and April 1999. Like in FDI Approvals, US lead the FDI Inflows as well. " The US investments in India accounted for 25% of all foreign direct investment (FDI) approved from 1991 - September 1999.<br><br> PARTNERSHIP (Continued from page 4) Country199119921993199419951996199719981999*Total USA764661100111221382873376986971113115 TOTAL (All Countries)218147228154523971910328152487515634058716 FDI Actual Inflows from US (in US millions) 199119921993199419951996199719981999*Total 11431441192052717193494132264 (* Until September, 1999) Foreign Direct Investment Approvals: 1991 - September 1999 (in US millions) " The overall inflow-approval ratio is nearly 23%. This ratio is underestimated due to varying gestation periods of approved projects, with greater delay in inflows from mega projects (which account for almost half of the FDI approvals). Excluding mega projects, the inflow-approval ratio works out much larger at 50%.<br><br> " Major industries attracting US investment are fuel (Power & Oil Refinery) and telecommunications. The other major industries include chemicals, metallurgical industries and service industries. Most of the leading Fortune 500 US companies have already started their operations in India.<br><br> Outlook The improved performance of the Indian economy during 1999, continued emphasis on economic reforms and liberalization and India 9s technology sectors are the positive reasons for increased interest in India as a destination for US investments and exports. Going by the current trends, the year 2000 should reach record levels of US FDI and FII inflows into India. 6 INDIA NEWS " March 2000 Visible Institutional Symbols: " The Indian Institute of Tech- nology, Kanpur, an internation- ally renowned institute for technical education and re- search, was set up with U.S.<br><br> cooperation. " Punjab Agricultural University, Ludhiana, which played a piv- otal role in India 9s green revo- lution in 1960 9s, successfully collaborated with Ohio State University, USA. " The National Council of Edu- cational Research and Train- ing (NCERT) - an apex body for education - was set up with U.S.<br><br> collaboration. Some Milestones: " 1974: The S&T Sub-commis- sion is established within the Indo-US Joint Commission on Economics and Commerce, Sci- ence &Technology, Education & Culture, and Agriculture - The Sub-commission later set up seven Working Groups in dif- ferent areas - the last Working Group meeting was held in 1991. " 1983: A new fast track coop- eration program, the S&T Ini- tiative (STI), is established to enhance cooperation in areas of agriculture, health, monsoon research, biomass research and engineering, and solid state sci- ences, The National Science Foundation (NSF), USA and the Department of Science &Tech- nology (DST), India, are iden- tified as the nodal agencies.<br><br> " 1987: The US - India Fund (USEF) is established to carry- out joint activities such as workshops exchange of scien- tists and experts, joint research India-U.S. Science & Technology Relations: Harnessing the Potential programs in fields of educa- tional, cultural and sciences. " 1987: An Indo-US Technology Fellowship Program is initiated under the aegis of the S&T ini- tiative.<br><br> " 1987: An MOU is signed for the Vaccine Action Program un- der the Health, Medical and Life Sciences Working Group of the U S-India S&T Sub-Com- mission. " 1991: The S&T fellowship pro- gram supported by USAID and DST funds is initiated; the pro- gram continued till 1994. " 1993: Indo-US S&T agreement is proposed but could not be signed due to differences over intellectual property rights provisions.<br><br> " 1997: The Vaccine Action Pro- gram is extended up to 2002. " 1997: An Indo-US S&T Forum is proposed to enable regular exchange of scientists and to identify promising areas of col- laboration (joint statement signed in 1997; terms still be- ing negotiated). " 1997: A program of Indo-US DST/NSF collaborative re- search projects is initiated.<br><br> " 1997: The Secretary, Health and Human Services, USA and the MOS, Science & Technol- ogy, India signed a joint state- ment on expansion of Indo- US cooperation on Contra- ceptive and Reproductive Health Research. A joint state- ment for cooperation under Indo-US Vaccine Action Pro- gram is also signed. " 1997: Indian Council for Ag- ricultural Research and Texas Experiment Agricultural Ex- perts Station sign an MOU for cooperation in agricultural re- search.<br><br> " 1997: An MOU for scientific cooperation in earth and at- mospheric sciences is signed between the Department of Space and DST, India, and NASA & NOAA, USA. " 1999: An MOU for coopera- tion in neurosciences is signed between the National Insti- tute of Mental Health, USA and the National Brain Re- search Center, India. Recently published books on India Father India: Westerners Under the Spell of an Ancient Culture By Paine, Jeffery Harper Perennial Library ISBN: 0060931019.<br><br> Dharmasutras: The Law Codes of Ancient India By Olivelle, Patrick Oxford University Press ISBN: 0192838822 India 9s Nuclear Bomb: The Impact on Global Proliferation By Perkovich, George University of California Press ISBN: 0520217721 Defending India Jaswant Singh St. Martin 9s Press, Inc. ISBN: 0312220669 Idea of India By Khilnani, Sunil Farrar Straus & Giroux ISBN: 0374525919 Sacred India By Dalrymple, William/Hayatt, Masood/Singh, Sarina/Govil, Meera Lonely Planet ISBN: 1864500638 INDIA NEWS " March 2000 7 Indian American Community: A Story of Achievements " There are now more than 1.5 million peoples of Indian origin in America.<br><br> They reflect the multi-ethnic, multi-religious and multi-lingual society of India. " Indian-Americans are represented in many fields including academics and entrepreneurs, doctors and lawyers, engineers and financiers. " According to the U.S.<br><br> Census Bureau, Indian-American median family income is $60,093 as against the national median family income of $38, 885 . The high income clearly reflects the advanced educational levels achieved by the community. " More than 87% of Indians in America have completed high school while at least 62 % have some college education.<br><br> As much as 58% of Indian Americans over the age of 25 hold a bachelor 9s degree or higher. " High levels of education have also enabled Indian-Americans to become a productive segment of the U. S.<br><br> population, with 72.3% participating in the work force. " Of these work force participants, 43.6% are employed in managerial and professional spe- cialties. " Technical, sales, and administrative support occupations constitute another 33.2% of the work force.<br><br> " The remaining 23.3% of the population works in other areas, such as operators, fabricators, laborers and precision production. " More than 5,000 Indian-Americans today serve as faculty members in institutions of higher education in the U. S.<br><br> " About 300,000 Indian-Americans work in technology firms in California 9s Silicon Valley. They account for more than 15% of high-tech startups in that region. The average income of Indian-Americans in that region is estimated to be $200,000 a year.<br><br> " Two Indian-Americans - late Har Gobind Khorana of Massachusetts Institute of Technology and late Subrahmanyan Chandrashekhar of University of Chicago 3 were awarded the Nobel Prize, in medicine and physics respectively. " In deed, the NASA 9s premier X-ray observatory was named the Chandra X-ray Observatory in honor of the late Subrahmanyan Chandrasekha r. Known to the world as Chandra, he was widely regarded as one of the foremost astrophysicists of the twentieth century.<br><br> The observatory was launched into space in July 1999. " Dr. Kalpana Chawla added a new chapter to the history of the Indian-American community.<br><br> In 1997, She became the first Indian or Indian-American to fly in the US space shuttle. She was part of the Space Shuttle Columbia Flight STS-87. " The estimated annual buying power of Indian-Americans in the United States is around twenty billion dollars annually.<br><br> " Indian-Americans are increasingly beginning to take a more direct role in political activities. They have traditionally exercised the most political influence through their campaign contri- butions, and are actively involved in fundraising efforts for political candidates on the federal, state and local levels. " As a result of these activities, together with the growing commercial interest in investment in India, the India caucus in the House of Representatives now numbers 118.<br><br> First Class U.S. Postage PAID Silver Spring, MD Permit No. 3966 EMBASSY OF INDIA Press & Information 2107 Massachusetts Avenue, NW Washington, DC 20008 ADDRESS SERVICE REQUESTED FIRST CLASS MAIL Internet Guide to India News & Media The Times of Indiahttp://www.timesofindia.com The Hinduhttp://www.hinduonline.com The Hindustan Timeshttp://www.hindustantimes.com India Todayhttp://www.india-today.com/ Government Parliamenthttp://parliamentofindia.nic.in/ President of Indiahttp://alfa.nic.in/rb/president.htm Prime Minister of Indiahttp://pmindia.nic.in/home.htm Government/Ministries/Stateshttp://indiaimage.nic.in/ Election Commission of Indiahttp://www.eci.gov.in Economy & Trade The Economic Timeshttp://www.economictimes.com The Business Standardhttp://www.business-standard.com/ The Reserve Bank of Indiahttp://www.rbi.org.in Indian Investment Centerhttp://iic.nic.in/ History & Culture History of Indiahttp://www.historyofindia.com Indian Languageshttp://www.indianlanguages.com/ Indus Civilizationhttp://www.harappa.com/ Recipes of various regionshttp://www.welcometoindia.com/ Tourism India Tourism Departmenthttp://www.tourindia.com Non-Governmental Organizations Comprehensive list of NGOshttp://www.indianngos.com/ Maps Clickable map of India/Stateshttp://www.mapsofindia.com<br><br>