New Directions in U.S.-India Relations

Madam Minister, Ambassadors, members of the U.S.-India Business Council, ladies and gentlemen. It is an honor and a pleasure for me to be with you today. Thank you for inviting me to participate in this conference, which is a showcase for the vitality and explosive growth of commerce between our two countries. It also highlights the equally explosive growth in the number of people from India who are living, studying, working and thriving in the United States; the number of American businessmen who have studied the Indian market and investment climate; and the business partnerships and personal friendships that have been forged in the process.

The United States and India are linked both by bonds of family and by our important economic interaction. My colleague Alan Larson will address tomorrow the prospects, promises and problems of our economic and commercial relationship. I have been given the happy responsibility to discuss with you a great development: the transformation of the relationship between what once was called "Estranged Democracies" to one we can now call "Engaged Democracies."

One of the great puzzles of the past half century has been why the United States and India -- countries different in location, material wealth and cultural tradition but similar in the diversity of their topography and peoples, both committed to democracy, and both having moral principles at the heart of their founding ethos -- should have had such difficulty in understanding and cooperating with each other. But the end of the Cold War, and India's initiation of economic reforms a decade ago, gave us an opportunity to break out of the old molds. And, while it took some time for this effort to gain traction, by the late 1990's it had begun to take hold.

Credit should go to groups like this and to the support of the business communities in both countries, as represented here today in the USIBC. The 1998 nuclear tests were a serious setback in our relations. The United States imposed sanctions, as it was bound by law to do. Then Deputy Secretary of State Strobe Talbott visited India (and Pakistan) to talk about what be done next. More could have come from the many rounds of talks, but the talks had a lasting dividend. They established, on both sides of the table, a pattern of listening and understanding. The act of hearing each other out helped establish the climate in which the U.S. was able to play a constructive role in resolving the 1999 Kargil crisis, and in laying the foundations for President Clinton's successful visit in March 2000 and Prime Minister Vajpayee's return visit five months later.

President Bush and Secretary Powell plan to accelerate this process; to expand, intensify and improve America's relations with the nations of South Asia, and particularly with India. President Bush has identified enhanced relations with India as a priority for his Administration. One early sign was Deputy Secretary Armitage's May trip to India to consult with Prime Minister Vajpayee's government about new ways to think about defense in the 21st century.

The President addressed the future of strategic stability and deterrence in his May 1st speech at the National Defense University. He described a world less certain and less predictable, and how we must adapt our defense posture to the new threats of the 21st century.

One of the President's key points was the importance he attaches to consultations with our friends and allies. We were very pleased to have the Indian government's quick and generally positive reaction to the President's new approach. We have an active dialogue with the Indian government and look forward to continuing to consult closely as we move forward, in concert with our friends.

The Administration has undertaken policy reviews for many parts of the world. And so we are taking a look at our South Asia policy. Let me share with you the framework that will guide the review: First, we regard India as a major player on the world stage. -- That's why Secretary Powell met with Foreign Minister Jaswant Singh on April 6. -- That's why President Bush invited Jaswant Singh to the Oval office during that same visit. -- That's why Deputy Secretary Armitage flew from Seoul to New Delhi to brief the Indian government on our new strategic framework. -- That's why the President, Secretary Powell, Secretary Rumsfeld and National Security Advisor Rice have all accepted invitations to visit India. -- That's why I recently held a round of "Foreign Office Consultations" with Foreign Secretary Iyer, trading views on regional and global issues in the same fashion we do with other major players such as Japan, South Korea, China, Brazil, Australia and our major European partners.

Second, we see enormous potential for our bilateral relationship. Our bilateral trade is growing rapidly, but from a low level. We are, of course, at different stages of development and will not always see eye to eye on every project or every policy. But we intend to be aggressive in seeking areas in which we can cooperate, while identifying our differences clearly, and trying to narrow them through frank but friendly discussions.

Third, our relationship with India is not contingent on that with any other country. The U.S. can have relations in Asia that are win-win, not a zero-sum game. We intend to expand, intensify and improve our relations with India for a host of good reasons. We want to do the same with others in the region.

Fourth, we must remain concerned about arms control issues in South Asia. We welcome India's key commitment to a moratorium on nuclear testing. We want to continue discussing with India our perceptions of the security situation in South Asia. We will continue to address with India our concerns about nuclear and missile developments in the region, and will expect to hear theirs as well.

We want enhanced cooperation with India to create confidence and greater transparency, enabling the U.S. to be more effective in helping reduce the risks of conflict or an arms race in the region. We believe that an overall approach of expanded engagement has the potential to achieve more than one based largely on habits of the past.

India is a great civilization. Great challenges still lie ahead, but India is now on a path that will help make it among the leading nations of the world. We are confident that, as India develops its vast potential, the shared values that I mentioned at the beginning -- respect for diversity, commitment to democracy, moral foundation of policy -- will keep bringing us closer together. The United States wishes India well, and I join all those here today in offering the hand of partnership on its upward journey.