Professor Clad began by discussing the dichotomy between the reality of U.S.-India relations and the common rhetoric. He stated that despite the impression of a natural affinity between "the world's two largest democracies," the Cold War reality was that of a strained relationship between the two nations. The primary reason for this was India's role as a voluntary proxy for Soviet interests. With the end of the Cold War, he stated that relations should have improved due to the myriad of vital interests shared by the U.S and India. The institutional memory of India's links to the Soviet Union remains, however, and the U.S. retains a degree of reserve in its dealings with the subcontinent. There is a reluctance to incorporate India into long-term U.S. strategic objectives.

Professor Clad believes that the U.S. needs to break out of the Cold War context in which it still views India. The predominant image of India seems to be that of the 1960's and 1970's, not the 1990's. India currently is undergoing a variety of changes that will facilitate improved relations with the U.S, including the following:

• Increased opportunities for small businesses: Professor Clad illustrated this by stating that the fastest growing newspaper in India is an entrepreneurial Hindi newspaper. This newspaper focuses on the growing merchant class, which is becoming a force within the country.
• Improved access to external markets: He stated that the Indian government has embarked upon a program of deregulation which has increased opportunities for trade.

• The relationship would benefit from quiet, recurrent interactions among senior policy makers. These interactions would increase ties between the two nations in a non-controversial manner.
• Reduce the perception of parity between India and Pakistan. This would serve to acknowledge that the Indian government maintains strategic interests independent of its policies towards Pakistan.
• On a related note, diversify our attention to Indian policies. At the moment, the U.S. focuses on the recent nuclear tests and the potential of an India-Pakistan nuclear arms race. While important, there are other issues to be discussed. By dealing with India in a more complete fashion, the U.S. would be in a better position to influence India's nuclear policies.
• India should not be viewed solely as a means of containing China.

Mr. Gadbaw began with a brief overview of the economic shifts that have occurred in India during the past five years. He stated that the focus of the Indian economy has developed from an autarchic, internal orientation to a more global, external orientation. Examples of this include the following:

• An increase in foreign investment
• The reduction of trade barriers
• Deregulation of certain sectors of the economy
• Greater dynamism on the part of Indian states in addressing economic issues
• Increased economic growth

Mr. Gadbaw continued by discussing the following trends in Indian society that facilitate development and economic dynamism.

• Similar to Professor Clad, Mr. Gadbaw discussed the increased opportunities for entrepreneurial activities. As an example, he stated that many Indian companies are attempting to list themselves on the New York Stock Exchange.
• Businesses in India have begun to realize the reservoir of intellectual talent in the nation. This enables companies to develop a variety of services, including research centers, financial institutions, and Y2K software.
• Mr. Gadbaw stated that India is moving towards increased openness to global markets which is beneficial to development of the Indian economy.

Mr. Gadbaw concluded that the increased role and visibility of the Indian-American community will most likely lead to improved relations with India. This growing constituency within the U.S. will lead to greater awareness of Indian issues and closer ties between the two countries. U.S. policy makers also need to ascertain if the Indian paradigm has shifted to a convergence of economic and political interests. Mr. Gadbaw proposed that economic and commercial interests have pushed a number of countries, including India, toward increased democratization, political accountability, and transparency in government.

[End of Document]