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Frustration of Foreign Companies in China Might Be a Boon for India–But Only If India is Ready

Integrated auto manufacturing facility near Chennai, India*

From the Indian perspective, the recent downtown in China’s business friendliness to foreign companies is good news. Some companies are beginning to question whether they have too many eggs in the China basket.

Right next door to China is another vibrant economy, with relatively stronger domestic spending, a younger population, and–within just 15 years–what is expected to become the world’s largest population, larger than China’s.

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India, U.S. Policy »

Political Costs in New Delhi and Washington

India often finds itself making major demands of the United States. It asked the U.S. to rewrite global nonproliferation rules to accommodate India’s status as a de facto nuclear power (accomplished under the George W. Bush administration), to revise U.S. technology export controls so that Indian companies and India’s military can gain access to more advanced U.S. technology (a priority for the Obama administration), and to advocate permanent membership for India in the UN Security Council (a goal to which no U.S. administration has yet committed itself).

But America turns to India rarely; and when it does, in important areas from climate change to global trade to isolating Iran, India’s approach is often at odds with that of the United States. This limits the extent of the U.S.-India relationship. Indeed, many Indian politicians are sensitive about even the perception of aligning with the United States. While it doesn’t help to blindly accuse India of intransigence without understanding its policy environment, we would be equally mistaken to deny that the relationship will have limits until circumstances change.

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U.S.-China Tensions Could Leave Room for Indian Leadership

After Copenhagen, many are beginning to rethink their expectations for collaboration between the United States and China. The idea of a “Group of Two” (G2) was always far-fetched and, arguably, misguided. But now that popular perception of a G2 is changing as the world finds it harder to work with China, there could be new opportunities for Asia’s other rising great power: India.

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India, U.S. Policy »

Is India on America’s Strategic Map of Asia?

When I listened to Prime Minister Singh’s speech at the Council on Foreign Relations during his visit to Washington, I was struck by how well Singh seemed to understand his audience. In spite of major differences in American and Indian approaches to global issues from climate to nonproliferation/arms control to human rights, Singh spoke of common values–an approach that speaks to the way Americans of all political stripes think about the world.

But even as Singh and Obama spoke of shared interests and shared values, there is something lacking in Washington’s approach to the strategic aspect of the relationship. The biggest question coming out of the trip is: was Singh able to place India back on America’s strategic map? Read More »

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Global Economic Engagement in 2008 Was Unprecedented
[9 November 2009, No Comments, Tags: , , ]

As reported last week in India’s Business Standard, in spite of stagnation in global trade growth over the past couple of years, India has just increased its trade activity to an impressive 54% of GDP, including services trade.

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India »

[14 October 2009, 3 Comments, Tags: , , ]

Earlier tonight, I gave a presentation on the China-India relationship for a Washington foreign policy group. I spoke on the imbalance in bilateral trade, areas of cooperation, security competition, regional profiles, and the border dispute.

I showed slides of some thought-provoking (and perhaps disappointing) data on India’s economic weight in Asia; since the audience found it interesting, I am posting some of it here with a bit of discussion.

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China, India, Publications »

Date: 14 October 2009.

Author: Daniel Michaeli

Presentation to the Young Professionals in Foreign Policy grand strategy and South Asia discussion groups at the Center for Strategic and International Studies, Washington, DC.

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