Wednesday, May 27, 2009

New Indian Government and President Barack Obama

A new government is in India and it is led by Prime Minister Manmohan Singh. He was the prime minister in the previous government too but at that time, he had to depend on the support of left parties for survival. So, he did not have strong mandate to carry out economic reforms or even improve relation with the US. Now, Manmohan Singh has enough majority and he is not dependent on the left parties. So, his hands are more open. On the other hand, Obama has the opportunity to deal with a new government in Delhi.

William Cohen has written a nice commentary in Financial Times and he wrote:

The president also has an opportunity to expand trade and investment. Between 2000 and 2007, US-India trade increased by more than 300 per cent – and foreign direct investment reached all-time highs as well. Mr Obama’s recent criticism of tax incentives that move jobs from Buffalo to Bangalore, however, has caused Indians to question whether this will translate into increased protectionism. We must seize the opportunity presented by india’s election to address such concerns and forge new ties of trade and investment.

Of course, the same thing must come from Indian leaders too. They must show that they are willing to improve bilateral ties and India is willing to increase trade between the two countries.

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