From the perspective of India-US relation president Obama’s visit to India is marked as a monumental achievement. During his 3 day stay at India, some new deplomatic agreements were signed and some older ones were renewed in different areas. These areas include nuclear energy, defence and economy. In the next paragraph we will discuss these one by one.
Highlights of Obama’s visit to India
1. India-US Nuclear Deal
i) The long stalled nuclear deal agreement was signed between the two countries. Earlier India and US had signed a nuclear deal back in 2008. The countentious US tracking clause had prevented its implementation. Under this clause US wanted to track the materials it supplied to India. India stated this as intrusive in view of safeguards suggested by the International Atoic Energy Agency. In the new deal the clause was withdrawn.
ii) Also a civil nuclear deal was siged between the two countries. The Indian liability law blocked its passage. Under Indian liability law, suppliers are liable in case of an nuclear accident. France and US suggested India to follow global norms. According to which operators are liable for the accident. Since Nuclear Power corporation of India (fully government owned) controls the nuclear power production, it means government has to pay for the loss. To solve the problem Narendra Modi formed a nuclear risk pool of Rs.1500 crore. Half of the fund will be paid by the insurers and rest Rs.750 crore to be paid by the central government. Five government owned insurance companies will pay the money. They are General Insurance, New India Assurance, Oriental India Insurance, National Insurance and United India Insurance.
2. Defence agreements during Obama’s visit to India
India and US renewed their bilateral defence agreement for next 10 yeras. Two countries agreed to setup joint combat exercise, maritime security and military exchanges. 4 path finder projects to be co-produced.
i) Next generation Raven unmanned aerrial vehicles (UAV).
ii) Upgradation of C-130 J super Hercules aircraft.
iii) Mobile electric hybrid power sourrces.
iv) Biochemical warfare protection gear for soldiers.
3. Economy
i) Obama announced to invest $4bn in India. Out of which $2bn will be utilised for renewable energy and $1bn for loans to small and medium business through overseas private investment (OPIC).
ii) US agreed to sign Totalization agreement. Indian workers in US will get annual refund of $3bn as social security contribution.
iii) 3 MoUs signed for Indian government’s smartcity initiatives to be developed in Allahabad, Ajmer and Visakhapatnam.
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Obama’s visit to India fact-files
Obama became the 1st US president to be the chief guest at republic day. He was also the first american president to visit India twice. In the history of America he was the 6th president to tour India. The other five are Dwight Eisenhower (1959), Richard Nixon (1969), Jimmy Carter (1978), Bill Clinton (2000) and George W. Bush (2006).