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Business and Jobs for the US; Empty Promises for India

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Obama has lavishly concluded his India visit. Lavish in the sense that he gave India what it wanted, of course, only in words again. That has been the strategy of the US presidents for a long time, be it Bushes or Clinton or Obama. Some say it was a business win for the US and a diplomatic win for India, referring to Obama’s speech in Mumbai, the trade capital of India, during a US and India business conference, in which he alleged that his visit would provide a win-win situation,

Business and Jobs for the US

Obama declared he had concluded $10 billion worth business deals that would give nearly 54,000 jobs to Americans. The White House said the US gained deals worth $14.9 billion, some signed and some being discussed. The deals reached are:

  • A preliminary agreement was reached that would enable Boeing to sell 10 C-17 Globemaster III military transport aircraft worth $4.1 billion, $1.7 billion less than the expected figure before Obama’s visit, to the Indian military. The sale will support 22,160 jobs. It was reported there is a possibility of extending the deal to another six C-17s in coming weeks.
  • The Indian private airline, SpiceJet, will buy 30 B737-800 planes worth $2.7 billion. This deal will support 12,970 jobs.
  • General Electric will sell 107 F-414 fighter engines worth $822 million to the Indian Air Force for its own fighter programme, the LCA Tejas. That deal supports 4,440 jobs in the US.
  • One thousand diesel locomotives worth $1 billion will be supplied over the next ten years to India. Two US manufacturers, LaGrange, and Electro-Motive Diesel, and GE transportation will only be allowed to bid for the deal.
  • One of India’s wealthiest men, Anil Ambani, and his company, Reliance Power, reached an agreement to buy six heavy duty gas turbines and three steam turbines worth $750 million from General Electric . The deal supports 2,650 jobs, according to the White House statement. Reliance Power said it is negotiating an additional deal to buy mining equipment worth $641 million and which supports 3,460 US jobs from Bucyrus International and others.
  • Motorcycle manufacturer Harley-Davidson will build a new plant in India to assemble its American made motorcycle kits. The plant set up will enable the company to reduce the burden of tariffs. Jobs will be created in both India and the US, the White House said.
  • The US Exim Bank reached MoU with Anil’s Reliance Power to finance up to $5 billion for the purchase of US goods and services in installing gas-fired electric plants and solar and wind energy facilities.

Several other small and medium size business agreements were also reached. In a reference to Ohio’s ban on outsourcing, Obama said that he was confident that he would tell his people India was providing more than 50,000 jobs and they should not resort to protectionism. Interestingly, PepsiCo.’s CEO, Indra Nooyi, said Ohio’s squeezed budget will force it to back off from its decision to ban outsourcing. Now that the mid-term elections are over, Ohio may not hesitate to lift the ban.

Obama in IndiaWhat Does India Get?

The US president, while speaking in the parliament, declared the US’ support for India’s permanent membership in the UNSC in years to come. Analysts say this is not going to happen the in near future, quoting Obama’s pre-visit interview to PTI, “it’s complicated.” If India were to get a permanent seat in the Security Council, then Brazil, Germany and Japan will ask for the same consideration, and their opponents are also likely to raise objections. So it is better to say “it’s complicated,” announcing support at the same time.

As Obama was criticized for not mentioning Pakistan’s support for terrorist groups in Mumbai, he did so in the parliament speech, asking Pak to do more to curb terrorist support. This announcement is not worthy of mention. Moreover, it’s silly to boast about it, in the context of the wider range of US, India bilateral ties.

Obama said his government would lift curbs on the export of dual use technology. This could be a worthy idea, but only if it is realized. As concrete agreements are not yet reached, Obama’s announcement cannot be relied upon, as it may require approval of Congress and Senate. He promised to support India to become a member in the  Nuclear Suppliers’ Group. This again is not reliable, as India has yet to begin nuclear trade after the approval of the civil nuclear agreement and nuclear liability bill.

A salesman came to India, sold his goods, and left for neighboring houses. His promises to India are nothing but empty talk.

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About Sekhar

  • Sekhar,

    Do you view earlier overtures to India by the British PM, David Cameron, in the same light and if not, why not?

  • Roger,

    England ruled India for more than 150 years amassing plenty of capital. It left India only to retain its market base in India, otherwise of which It would have to depart entirely from India, due to growing communist revolutionary threat inside and outside India. Of course, it had to depart from its markets all over the world paving way for the US hegemony later.

    That doesn’t mean Britain departed from its imperialist policies. Be it Obama, Cameron or Naoto Kan(I doubt this spelling); they all come for the same purpose business. They always come to gain maximum and to lose least if not zero. Rulers of India exercise certain burgeoning power when it comes to weaker than the US imperialist states.

    You have asked me why not and I have told you why yes.

  • Despite Obama’s lying to the American public, no sales deals to India have been signed or will be signed because of what I have said below which is also responsible for his support of India’s permanent membership of the U.N. Security Council :-

    1) India’s njgger-slave, traitor service chiefs who are constantly talking of threats from India’s ‘neighbors’ must be shot on the spot. The United States is EVERYBODY’s neighbor. It has already invaded and occupied Afghanistan, a part of traditional India and will expand its occupation to the rest of the subcontinent.
    Was Britain India’s neighbor? I am India’s expert in strategic defence and the father of India’s strategic program, including the Integrated Guided Missile Development Program. The U.S. invasion of Afghanistan means the coast-to-coast destruction of the U.S. by India; see my blog titled ‘Nuclear Supremacy For India Over U.S.’ which can be found by a Yahoo search with the title for steps I have already taken for the nuclear destruction of New Delhi and then the coast-to-coast destruction of the U.S. and extermination of its population.
    Russia and other white countries are U.S. allies. These are the enemies to destroy. All other enemies will be taken care of automatically.
    Conventional arms are worthless for destroying the United Sates. Nuclear arms to destroy the United States with a FIRST STRIKE — this is the key — are cheap and easy to produce with technology India already has. Prepositioning by its special forces a couple of nuclear bombs in Washington and New York and letting the world know we have done so will give India freedom to test thermonuclear weapons designs, ICBMs, etc., as much as it wants, though India already has this freedom but for the njgger-slaves. Alternatively, twenty kiloton bombs can be prepositioned in the largest U.S. cities and then Washington and New York destroyed with the warning that additional U.S. cities will be destroyed if there is any retaliation. The nuclear destruction of New Delhi — without waiting — is all that is needed to make India win.
    My blog above answers all questions. The author’s biography can be found in Marquis’ Who’s Who in the World (2010 and earlier editions). Satish Chandra

    2) I am India’s expert in strategic defence and the father of India’s strategic program including the Integrated Guided Missile Development Program. In my blog titled ‘Nuclear Supremacy For India Over U.S.’ which can be found by a Yahoo search with the title I wrote: The refusal by pieces of filth such as Advani to recognise the United States as India’s number one enemy is sustained by thousands of C.I.A.-RAW-inspired headlines in India’s media such as “Indian-American becomes Governor of Louisiana” which should instead say “Indian rewarded for conversion to Christianity with governorship: As reward for conversion to Christianity at age 18, as Americans themselves admit and his numerous published essays and articles on his conversion, Indian made Secretary of Louisiana’s Health and Hospitals at age 24, President of the University of Louisiana system at age 27, then Assistant Secretary of Health and Human Services in Bush Administration, then member of U.S. Congress and now youngest Governor in U.S. at age 36” (
    Bobby Jindal: The Story They Don’t Want You to Read CenLamar: On Life in Louisiana ). Even more important are the thousands of headlines that are missing from India’s media, thanks to C.I.A.-RAW, the story they really don’t want anyone to know, saying “India’s greatest scientist and greatest living Indian publicly tortured in Harvard seminar, systematically and totally starved for up to 3 weeks at a time, made semi-starved and homeless and even blind for years, kept under 24-hour audio and video surveillance as well as surveillance of communications and electrical typewriter and computer use, document creation and photocopying, etc., by satellite for more than past 3 decades, systematically harassed and in poverty and neutralised and robbed of his work at the cost of hundreds of millions of dollars per year, robbed of crores in his money and property in India by C.I.A.-RAW, forced back into exile in the U.S., all with full cooperation and participation of India’s RAW and India’s C.I.A.-RAW-controlled prime ministers, politicians and media — to keep India poor, weak and enslaved: The most intelligent, most handsome man on Earth, a living Incarnation, plans nuclear supremacy for India in near future, to destroy India’s number one enemy, the United States, with ten thousand nuclear-armed missiles and will machine gun and bulldoze into trenches all traitors who stand in the way.” Since then I have said they will be destroyed in the nuclear destruction of New Delhi; see my blog.
    My blog above answers all questions. The author’s biography can be found in Marquis’ Who’s Who in the World (2010 and earlier editions). Satish Chandra

  • Glenn Contrarian

    Sekhar –

    No offense, but what you saw is an exercise in diplomacy. President Obama is not a dictator. He cannot unilaterally make business decisions for America. All that he can do is to promise that he would try to work with Congress to make all of it happen. No leader of a democracy can do more than that – and expecting concrete and immediately-binding agreements is unrealistic at best when it comes to commerce between democracies.

    P.S. My compliments on your English. All those here in America who support ‘English-only’ have no clue how they’re handicapping themselves and their children.

  • Glenn Contrarian

    Satish –

    When you say “I’m the expert in this” or “I’m the father of that”, it comes off as bragging and people like myself stop reading as soon as we see it. One, you should be able to prove who and what you are, and two, you need to show some humility. Please do not take offense at what I say, but take it as friendly advice. Or you can ignore it – it’s up to you.

  • Although no one should discount the hardship and uncertainty faced by an individual who has lost his or her job, nothing is that black and white. The popular misconception is that outsourcing always means job loss and a windfall profit for the company doing the outsourcing. A more accurate perspective is that for companies, it is often a matter of staying afloat or struggling to grow, not getting windfalls, and with regard to jobs ?” when economies are not stifled by protectionism ?” job losses and gains tend to balance out. Please see more at my blog post at Law Without Borders.

    Furthermore, those American companies with manufacturing and service set-ups abroad haven’t made these arrangements to take advantage of the tax deferral. They have done it because of lower operational costs, or because of the proximity to target markets, or for other reasons that may have nothing to do with tax breaks or outsourcing of jobs. Changing the tax code to remove the deferral will only create a barrier that will reduce the ability of U.S. companies to compete in today’s global marketplace. If the U.S. government offers incentives and tax credits to companies that create more jobs for the American workforce, that might help a bit.

  • #4 Hi Glenn,

    Obama is not the first president who delivered promises to India. He is only the latest, but not the last, I suppose. Clinton and Bush gave many promises that did not materialize.

    Obama can say “I will try to convince our congress and senate…”, like that. When he says he supports permanent seat for India, he has to begin the process on respective forums, at least in months ahead. He knew what India was going to ask. He came prepared for business deals. Deliberations for business deals were conducted for months even before his arrival to India. These deals were reported 2 to 3 months earlier in news papers, channels and websites.

    He could have started a process of gathering support for permanent seat to India even before his visit and proudly announced in India that he started the process. India has been lobbying for UNSC permanent seat for more than ten years. Bush used to support during internal talks, but did not promise openly. What Obama did was to give open support, that too in Indian Parliament, but not on any international forum. It is another matter whether India really deserves it.

    Obama said “It’s complicated” regarding permanent seat and export of dual use technology, in an interview, a few days before his visit. He can repeat the same in Indian parliament also, and can add, “but, I’ll pursue your case.” That provides some confidence to India that it was going to get something. Obama may not succeed in his attempts but he will be credited for his attempts.

    Personally, I don’t support these permanent seat things to India, or to any country for that matter. In my view, veto powers to any nation should be abolished. These veto powers stopped many issues form settling amicably. Why should some countries have extraordinary powers than the others, while every country has its own pride and integrity? …to be continued

  • Glenn, actually my article was edited for grammatical mistakes at 3 to 4 places. If it looks better, credit must go to the editor. But, I share your opinion regarding American English on certain issues. Words are cut short often. You can see it on Technorati also. Ex: Commies for Communists.

    Spellings are modified to get the words accustomed to short forms. These modifications are not limited to speaking purpose but brought into writing even political articles. That may lead to aberration of the language itself. As you pointed out, children may not know what the actual English is. Literature people may have to work on this issue with support from governments.

  • #3 Satish, I don’t understand how can you claim yourself as a father of something and expert of another thing in India? Terms like father, expert have to be given but can not be taken.

    India is bowing before NSG countries for nuclear technology. Why don’t you come here and help them build what they want? I’ve seen the same comment from you on at least four articles on different websites. It is the question of your integrity, you know!

  • Ruvy

    Sekhar, it strikes me that this trip was a waste of American taxpayer money. He could have gone, visited Mumbai, announced the business deals (which he didn’t conclude), delivered a speech to the Lokh Sabha, at far less cost to a cash strapped America. If he wanted Indian food that badly, he could have ordered out at the White House. When I wanted a cheap meal as a young man and didn’t have all that much money to spend on a date, that’s what I did – go to Indian restaurants.

  • Ruvy, the business deals were concluded and signed. White House issued a statement to that effect that was posted on WSJ. I have added link to that news. You can have a look it.

  • Bruno

    Support for India having a security council seat. Hell yes. As a counter balance to China. Russia and China are no friends of the U.S. It not getting done. Big surprise. Obama didn’t complete the ground work done ahead of his visit. He is incompetent.

    Britain & France should be kicked from the security council. They can’t provide for their own security from Russia without significant # of allies (Mainly the U.S.). They could be replaced by the EU. Also Brasil (O Pais que vai pra frente) should be added.

    Infosys can set up shop in America but Harley Davidson can’t set up shop in India?
    What childish illogical and avaricious whining! Shameless! So Harley does not pay tariffs. So what! They’ll pay taxes in country and provide jobs there.

    Compare Infosys operating in the U.S. & Harley in India. You want the 1st to happen but not the latter. Run that past any American. They won’t like it. Don’t argue that one is software and one is hardware. That is only smoke and mirrors.

    That Obama is touting Harley is pure politics. He is weak. He needs a win. With open markets this is something that should happen automatically without a president pushing it.

    100% Reciprocity is key. If Harley can’t be in India, then Infosys can’t be America. I’ll run this shameless post past my fellow Americans. Maybe we can get rid of some H1B visas. No more Indian can work in America than Americans work in India.

  • Bruno

    Wow, Satish! My wife is Han. the U.S. is engaged in some sort of white supremacy deal with Russia? Did I miss a memo saying I would be ostracized for marrying a non-white woman and no longer get the memos on the plans for white world domination?

    Are you off your meds? Or are you just trolling?

    My wife is Confucist/bhuddist/whatever mix. My kids are neither Christian nor Bhuddist. All are doing well. Maybe there is no memo or conspiracy. Maybe you are just a Hindi chauvanist. You over simplify what religion is and is not in America. Have you taken Unitarianism into account or similar movements in America? What do you know really outside of science or technology? With all your getting , get wisdom.

  • Bruno

    U.S. GDP $14.3 trillion

    Trade deals which may or may not occur quickly (realized over a few to several years) or at all $ 14.9 billion

    Conclusion: Showboating

    I am about as thrilled with GE as I am with Loral space and their shenanigans

  • Bruno


    You have a valid point about veto power, but not a clearly correct absolute one.

    Why should a small country like Kiribati have veto over large ones like China, Brasil, India or the U.S.?

    With 57 Islamic state out of 190 or so countries if they act as a bloc and bribe or cajole other smaller countries they could form a a majority and work to everyone else’s detriment.

  • Bruno, I didn’t say Harley can’t be in India.

    And I said no country should possess veto power. I didn’t say all countries should have veto power. UN or Security Council should be run in line with the democratic principles. They may be differences in size of population, economies, area etc… But, as a state every country has its own pride and integrity which must be respected irrespective of their sizes.

    It is purely hypothetical to assume as you said in last sentence of #15. Ground facts do not support such hypothesis. In practice, the countries are never united on the basis of religion. Whether we like it or not, economic and strategic interests drive the countries to be in one group or another.

  • Bruno

    Extremely small countries having the same vote as a large country seems very wrong. For example 3 small countries could outvote one large country very easily. After all the U.S. under Obama “bought” some island nations so they would take Oghurs. I am still not sure of their provenance. But where they were was very suspicious. Why were these people found in Pakistan as opposed to Tajikistan, Kyrgyzstan or Kazakhstan. The could have learned about Islam in much less dangerous place. Nonetheless Obama was able to pay enough money so that several small island nations would take these terrorists. My point is that a governments that is a bad actor can get any result they want in the U.N. if a plurality is all that was needed through bribes, market access, and threats. Giving all nations an equal vote is suicide for some nations.

    I could see Brasil for example “speaking” for the South American nations against interference by foreign powers from across the oceans or seas. Having a few more large nations from different regions as permanent members might make things better. It would not be permanent. after a few decades or a century we could move to one nation one vote, but I don’t think that would work now,