A Publication of the Embassy of , Washington, D.C.

May 1, 2012

I India RevieI w Vol. 8 Issue 5 www.indianembassy.org

The International Monetary and Financial Committee (IMFC) Governors in a group photo at the IMF Headquarters in Washington, D.C., on April 21. (Photo: IMF Photograph/Stephen Jaffe) India cautions against slowdown in IMF quota reforms n Power Minister n Education Ministers n Third US-India Sushilkumar of five Indian states Energy Partnership Shinde vists U.S. visit U.S. Summit held Cover STORY

Finance Minister (extreme right) at the meeting of the G-24 Finance Ministers during the spring meetings of the International Monetary Fund and the World Bank group in Washington, D.C., on April 19. (Photo: Jay Mandal) ‘G-24 must enhance its effectiveness’ The group’s meeting of Ministers and Governors calls for concerted action to check price volatilities, reforms in international financial institutions, and for strategies to enhance the grouping’s effectiveness in the global policy-making process

he global economy, though lized the situation and calmed the Referring to the role of International stabilizing steadily in the market somewhat, underlying struc - Financial Institutions (IFIs), Finance wake of the recent tural problems remain and downside Minister Mukherjee sounded a note of T Eurozone crisis, continues risks remain significant as manifest in caution. “There are serious apprehen - to be fraught with uncertainty, Indian recent movements in bond yields,” sions regarding the governance struc - Finance Minister Pranab Mukherjee Mukherjee, who is the Chairman of ture of these IFIs. These apprehen - has said. Addressing the 87 th the G-24 Bureau, observed in his sions have strengthened the trend of Meeting of Ministers and Governors opening remarks. setting up new and regional financial at the Intergovernmental Group of Recent trends in commodity prices mechanisms and institutions where Twenty Four (G-24) meeting in also held out considerable hazards, the voices of these nations are heard, Washington, D.C., on April 19, he pointed out. “Volatility in com - and adequate finance is forthcoming.” the Finance Minister said that in the modity prices, threats of disruptions current global economic context, the to supply chains and high oil prices Common ground G-24 was uniquely positioned to have impacted businesses across the “devise strategies to enhance its globe, slowing the recovery in both Later, addressing a press conference effectiveness in the global policy- advanced and emerging economies,” after the G-24 meeting, Mukherjee making process”. he said. said that “despite the diversity of the “All international organizations On the positive side, developing Group”, member countries were able today recognize the fact that none of countries and emerging economies to “find common ground”. them can be an active participant in would continue to helm growth for While member countries had com - the global economy unless and until the world economy. “But, even here mon concerns about the global econo - Emerging Market and Developing growth has decelerated,” he my, he, however, said that recent poli - Countries (EMDCs) are taken on cautioned. cy actions had minimized threats from board and given a greater role,” the the Euro area, though the “downside Finance Minister said. Concerted action risks remain high, including from high 2 On the agenda were three broad and uncertain oil prices”. areas: ‘Global Economy’, ‘Reform of Calling for “concerted action” The member countries resolved to International Financial Institutions’ among nations to face up to the “focus on job creation and on effective and ‘Infrastructure Financing and “volatility in the global economy”, he and affordable social safety nets that Sustainable Development’. said, “Many of us who are gathered protect the poor and vulnerable”, the “We are meeting at a time when the here represent the voice of the mass - Finance Minister said in his remarks. global economy appears to be es of the poor and vulnerable popula - Referring to the management of strengthening gradually after suffer - tions who are adversely affected by capital flows, Mukherjee said member ing a setback. Although actions by the lack of jobs, infrastructure, food countries expressed “strong reserva - Eurozone countries and the and finance and for whom we need to tions about the integrated approach European Central Bank have stabi - do more together.” proposed by the IMF”.

May 2012 India Review Cover STORY ‘Developing world hub of investments’ Reviving global growth through developing and emerging economies will help rebalance global demand and redirect savings, says Minister Pranab Mukherjee

investment, including in infrastructure, will occur in developing countries, it would also help rebalance global demand, as also, redirect savings.” Noting that the world has “wit - 3 nessed a great amount of economic and political turmoil over the past year”, the Finance Minister said while near-term economic data was unex - pectedly encouraging, economic con - ditions overall remained weak, and unemployment reached at politically unacceptable levels. As far as India was concerned, despite adverse conditions prevailing in its external environment, it was reasonably confident that the under - lying growth fundamentals remain firm, he said. The Finance Minister said, “We are intent on ensuring that the process of fiscal consolidation gains further momentum, with mone - tary policy remaining vigilant in deal - ing with inflationary pressures.” Minister Mukherjee said he expected India’s real GDP growth in 2011-12 to be around 7.0 percent, and to gain fur - ther strength in the ensuing fiscal. Energy and Commodities Finance Minister Pranab Mukherjee in a group photo with the G-20 Finance Ministers and Central Banks Governors, in Washington, D.C., on April 20. In his intervention on ‘Energy and Commodities’, Finance Minister alling upon G-20 nations, to assess the progress made on G-20 Mukherjee said India, as a major com - the world’s top economies, commitments, mainstreaming jobs and modity importer, was “concerned to work out a “credible and employment issues into the framework about the increase and volatility of C ambitious” action plan to exercise and stepping up efforts to sup - commodity, and especially oil prices in put the global economy firmly on the port investment in the real sector, and recent times that seem to be not path of recovery, Finance Minister especially in infrastructure. aligned with underlying economic fun - Pranab Mukherjee has said such a plan Finance Minister Mukherjee was damentals”. These distortions were “should pay greater attention to three addressing a meeting of G-20 Finance adding to “inflationary pressures in a important issues” to help promote Ministers and Central Bank number of developing countries, “strong, sustainable and balanced Governors on “Global Economy and including India”, he cautioned. growth” across the world. Framework” on the sidelines of the He said that despite many studies, The proposed plan of action is annual World Bank-IMF spring meet - including one done by G-20 itself, “it is expected to be adopted by G-20 leaders ings in Washington, D.C., on April 19. still not very clear as to what is driving at their summit at La Cabos in Mexico “This route to reviving global growth this heightened volatility, which seems in June later this year. The three areas has not received the attention that it to be a mix of financialization of that should form part of the plan, he merits,” Minister Mukherjee said, commodity markets, monetary policy said, were — developing a framework adding, “to the extent that much of this actions, political uncertainties

May 2012 India Review Cover STORY

Reserve Bank of India Governor D. Subba Rao with Finance Minister Pranab Mukherjee in a group photo with IMF Governors during IMF and World Finance Minister Mukherjee at IMF Headquarters in Banks’ spring meetings, in Washington, D.C., on April 21. (Photo: Jay Mandal) Washington, D.C., on April 21. (Photo: Jay Mandal)

and demand-supply imbalances.” Financial Regulation case for “some back loading of diffi - Minister Mukherjee said that under cult adjustments” to help bolster the circumstances, commodity At the second session, which dwelt recovery in the financial sector, he, markets called for better information on ‘Financial Regulation’, the Finance however, warned that “any weakness and transparency. “There is an urgent Minister pointed out that the global shown in our resolve and commitment need for countries to put in place a financial system continued to “face a to reform will sow the seeds of fresh mechanism for gathering commodity complex set of challenges”. crises down the line”. market information and creating a pub - “While some countries and regions Pointing out that there was concern licly accessible comprehensive data are recovering from the crisis of 2008, that unless the same standards were base on production, price, inventories, others are confronting renewed turbu - applied “in all jurisdictions simultane - demand and supply forecasts, etc,” lence. The uncertain and uneven ously”, there could be room for “regu - adding, that “unfettered access to vital recovery has led to calls in some quar - latory arbitrage”, resulting in “finan - information on the commodity markets ters to weaken financial reform initia - cial activity migrating to less regulated would discourage excessive speculation tives,” he cautioned. jurisdictions elsewhere, as well as into and exaggerated price movements”. Pointing out that there could be a shadow banking”. Referring to the

Extracts from the Final Communique issued addition to the quota increase under the after the two-days Meeting of G-20 Finance G-20 Communique 2010 Reform. Ministers and Central Bank Governors in and promoting global rebalancing remain at n We reaffirmed our commitment to fully Washington, D.C.: the core of our commitments. implement the 2010 Governance and Quota n Recent economic developments point to the n Vigilant of high oil prices, G-20 members Reform by the 2012 IMF/World Bank Annual continuation of a modest global recovery, stand ready to carry out additional actions Meeting. We will continue to contribute supported by some significant policy actions as needed and welcome the commitments towards a comprehensive review of the IMF that have taken place since our last meeting. by producing countries to ensure adequate quota formula by January 2013 and the The tail risks facing the global economy only supply. completion of the next general review of months ago have started to recede. n We remain committed to taking the necessary quotas by January 2014, fulfilling the com - 4 However, growth expectations for 2012 actions to secure global financial stability. We mitments made in Seoul and Cannes. remain moderate, de-leveraging is constrain - welcome the euro area members’ decisions in n We welcome recent initiatives on IMF surveil - ing consumption and investment growth, March to strengthen European firewalls as lance, and agree that the current surveillance volatility remains high, partly reflecting part of broader reform efforts and the avail - framework should be significantly enhanced. financial market pressures in Europe and ability of central bank swap lines. downside risks still persist. n Together with the IMFC, we have reached The full text of the Communique is avail - n In the context of high unemployment and agreement to enhance IMF resources for cri - able at: http://www.indianembassy.org/prde - indebtedness in many countries, supporting sis prevention and resolution. There are firm tail1922/final-communique-issued-after-meet - growth and job creation, structural reforms, commitments to increase resources made ing-of-g-20-finance-ministers-and-central- restoring medium-term fiscal sustainability available to the IMF by over $430 billion in bank-governors-in-washington-d.c.

May 2012 India Review Cover STORY India cautions against slowdown in IMF quota reforms xpressing concern at the pace of reform Committee (IMFC) and G-20 on April 20. “Our objective is a simple formula with GDP on quota and governance issues in the Underlining the importance of quotas as the blend as either the sole or predominant variable E International Monetary Fund (IMF), main determinant of the voting power of mem - and with a higher share of GDP-PPP,” he said. India has said that a dynamic reform process bers, he said there should not be any slippage The Minister pointed out that India had already was necessary to ensure IMF’s legitimacy and in the January 2013 target date for quota for - ratified the 2010 quota increase and also con - effectiveness. “The best possible means to mula review. firmed that it would maintain its relative share improve governance and legitimacy is by For the emerging and developing countries, of the new arrangements to borrow. ensuring that there is no slippage on crucial GDP was the most important variable in the “India will continue to play its role to assist reforms,” Finance Minister Pranab Mukherjee quota formula and the weight of the blended the IMF in its efforts to augment permanent 5 said at a joint session of the policy making GDP variable should be substantially increased resources. However, governance issues are also International Monetary and Financial in the formula, Minister Mukherjee said. linked with this,” he said. importance of collaboration between work”. However, it should “incorpo - definition of green growth”, he said financial authorities, Mukherjee rate the main lessons from the crisis”, that the “deliberations must strike a asserted that it has “never been so he concluded. balance between all the three pillars of testing and yet never has collaboration sustainable development, that is: been so important”. He pointed out Green growth and climate economic development, social that collaboration was difficult when it finance development and environmental meant “profound structural change in sustainability”. Minister Mukherjee the face of volatile financial markets In his remarks at the session on said that any definition should “be con - and anemic growth prospects world - ‘Green Growth and Climate Change’, sistent with the objectives, provisions wide”. Therefore, these challenges Finance Minister Mukherjee said the and principles, including common but make “it so vital that the regulatory G-20 could contribute in this area by differentiated responsibilities and response should be well coordinated identifying “best practices for respective capabilities, of the United internationally to ensure that the new sustainable development, provide Nations Framework Convention on regulatory framework is effectively researched inputs, sharing of Climate Change”. He said that Climate and globally implemented”, he added. technology and suggesting ways of Finance Commitments report by a pro - The way forward lay in implementing raising resources to go forward”. posed new group of study should the reform agenda “to update the Pointing out that there was reflect the views and interests of all the global financial regulatory frame - currently no “internationally agreed G-20 countries. ‘Set up working group for BRICS bank’ ndia has suggested setting up a of IMF and World Bank group. working group comprising offi - Minister Mukherjee said the work - cials from finance ministries and ing group should be asked to submit its I central banks of the five BRICS report by November this year and that countries for the formation of a devel - would form the basis for formation of opment bank to increase trade within the proposed development bank. the grouping. “The working group may decide on “I propose that a working group be its own composition, work plan and set up comprising representatives from processes and report back to us by our our Finance Ministries, central banks next meeting in November 2012, so Finance Minister Pranab Mukherjee and his and other experts co-chaired by India, that we are in a position to report back Chinese counterpart Xie Xuren at the BRICS as the current BRICS chair, and South to the leaders by the next BRICS Finance Ministers meeting on the sidelines of Africa, as the next BRICS chair,” said Summit,” he said. IMF’s spring meetings in Washington, D.C. on April19. (Photo: Jay Mandal) Finance Minister Pranab Mukherjee. Leaders of the five emerging He was addressing a meeting of the economies had agreed to set up a strengthening global financial safety BRICS (Brazil, Russia, India, development bank to boost intra- nets, the Finance Minister also drew and South Africa) Finance Ministers in group trade at a recent summit in New attention of the BRICS leaders to the Washington, D.C., on April 19, on the Delhi. slow pace of governance reforms at the sidelines of the annual spring meetings Stressing on the importance of International Monetary Fund.

May 2012 India Review Cover STORY ‘India-U.S. relations on strong footing’

inance Minister Pranab ing to foreign investment Mukherjee said that the and tax matters. While dis - relations between India and cussing tax issues, Treasury F the United States had Secretary Geithner men - evolved in recent years into a global tioned about certain strategic partnership across a broad amendments proposed in range of areas. Minister Mukherjee tax provisions of India’s was speaking during a bilateral Income Tax Act with retro - meeting with U.S. Treasury Secretary spective effect. In this Timothy Giethner in the latter’s regard, Finance Minister office in Washington, D.C., on April Mukherjee informed that 19. The Finance Minister observed the tax changes proposed that political and strategic engage - were not substantive but ment between the two countries was clarificatory in nature as the at an unprecedented level. changes reiterated only the Cooperation between India and the intent of the legislation. He U.S. were growing in all areas, pointed out that as per including defense, counter-terrorism, Finance Minister Pranab Mukherjee with U.S. Secretary of Section 149 of the Income trade, investment, science and tech - Treasury Timothy Geithner in Washington, D.C., on April 19. Tax Act, no tax cases can be (Photo: U.S. Department of Treasury) nology, education and energy, he opened beyond six years. pointed out. recent developments in the global He clarified that tax cases which had During the meeting, the two lead - economy. They deliberated on a wide already been assessed and finalized ers discussed bilateral economic and range of global and bilateral macro- up to April 1, 2012 cannot be financial cooperation as well as the economic and financial issues relat - reopened. ‘India good for investment, has stable tax regime’ llaying a “misapprehension” mergers that exchange Indian assets good investment destination. There about some retroactive announced in the budget couldn’t be should not be any apprehension,” A changes in Indian tax laws, used to reopen tax cases more than six Minister Mukherjee said. Finance Minister Pranab Mukherjee years old as other legislation existed to has assured corporate America that prevent this, he said. The full text of the Finance India was a good investment destina - “There is no uncertainty,” he said, Minister’s speech can be viewed at: tion with a clear and stable tax adding that India would hold transpar - http://www.indianembassy.org/prdetail regime. ent, open discussions with those who 1920/finance-minister-Pranab- “There is some sense of desponden - have complaints about the mukherjeeandrsquo% 3Bs-address-on- cy amongst a section of U.S. business - law. Secondly, investment andls quo% 3Bindia-and-the-world--- men, particularly because of their decisions are taken on the short-and-medium-term-prospectsan - apprehension — and I would say mis - basis of “what’s the size of drs quo%3B-at-peterson-institute-of- apprehension — about certain legisla - the market, whether the international-economics% 2C- tive amendments which we have pro - systems are transpar - washington%2C-d.c.-on-april- 6 posed,” he said in Washington, D.C., ent and what’s the 20%2C-2012 on April 20. “There is no uncertainty purchasing power of and the changes have been made to people.” “From all bring certainty to the tax law, that was these standpoints, the intention from the beginning,” India appears to be a Minister Mukherjee said during a talk at the Peterson Institute for Finance Minister Pranab International Economics, a Mukherjee delivering his Washington-based think-tank. address at Peterson Institute for International Economics The proposed changes to impose in Washington, D.C., on retroactive tax on some international April 20. (Photo: Jay Mandal).

May 2012 India Review Power Minister’s VISIT ‘Opportunities galore in power sector’

ddressing the US-India 1 Business Council in Washington, D.C., on April A 16, Minister for Power Sushilkumar Shinde called upon the U.S. industry to explore emerging investment opportunities in India’s power sector and consolidate existing 7 partnerships and projects between the two countries. Giving an outline of the growth of Indian power sector, Minister Shinde said that the present installed genera - tion capacity of India was about 200 GW of which 55 GW had been added during the11 th Five Year Plan (2007- 2 3 12). He underlined that this addition was about 2.5 times of what was done during the 10 th Plan and more than the combined capacity generat - ed during the 8th, 9 th and 10 th Plans. Stating that the share of the private sector in the capacity expansion had gone up substantially from 10 percent during the 10 th Plan to 33 percent during the 11 th Plan, Minister Shinde added that 50 percent of the capacity in the th 12 Plan would come from the 1. Minister for Power Sushilkumar Shinde at a meeting with U.S. Secretary of Energy Dr. Steven Chu private sector. He said that total in Washington, D.C., on April 16. Ambassador Nirupama Rao was also present at the meeting. investment in power generation seg - 2. Minister Shinde with Energy Secretary Chu in Washington, D.C., on April 16. th 3. Minister Shinde and Ambassador Nirupama Rao at the Round Table on Power Sector hosted by the ment during the 12 Plan would be United States-India Business Council (USIBC) in Washington, D.C., on April 16. around $120 billion. The Minister observed that by the to facilitate reforms in the power sec - to sign fuel supply agreements with end of 12th Plan, inter-regional trans - tor. He said the Electricity Act 2003 power plants having long-term PPAs mission capacity would be more than allowed the sector to align itself with with distribution companies and get - 38 GW. He also shared that the highest market dynamics and facilitate greater ting commissioned on or before March voltage level in the world, 1200kV participation by the private sector. He 31, 2015. UHVAC Test Station had been test made a special mention of the budget He also touched upon health of dis - charged at Bina in Madhya Pradesh proposals of 2012 that could help coms. Minister Shinde said the total while the world’s longest „b800kV stimulate investments in the power investment estimated in distribution HVDC multi-terminal bi-pole link of sector. sector in the 12 th Plan was $60 billion. 2,000 kms from Biswanath Chariali in The Minister said that the rate of The Minister appreciated the the northeast region to Agra in the withholding tax on interest payment on emphasis given to the use of environ - northern region was undergoing External Commercial Borrowings mentally clean renewable, hydro and implementation. He added that the (ECB) was proposed to be reduced nuclear energy in the 12 th Plan. He transmission sector had also been from 20 percent to 5 percent for 3 discussed the low-carbon growth strat - opened for private sector which is years. He added that the ECB had also egy to ensure sustainable development expected to have an investment of $36 been allowed to partly finance the debt of the power sector. Minister Shinde billion during the 12 th Plan. of existing power projects. said that he would seek increased use Addressing concerns of the Minister Shinde shared with the del - of super critical technology in the 13 th investors, Minister Shinde said that the egates that as far as fuel was con - Plan and would encourage initiatives Government was taking various steps cerned, Coal India Limited was likely on energy conservation.

May 2012 India Review Energy Partnership SUMMIT ‘Innovation key to achieve energy security’

t the third US-India Energy Partnership Summit in Washington, D.C., on April 24-25, experts and A policy makers from both the coun - tries emphasized on enhancing innovation to address the challenges of energy security. Themed, ‘Fostering Innovations for a Sustainable Future’, the Summit attracted over 200 participants from government, industry, think tanks, academia, and financial institu - tions who deliberated on strategies and activi - ties for India-U.S. collaboration on energy security. The Summit was organized by The Energy and Resource Institute (TERI) North America in collaboration with Yale University. Melanne S. Verveer, Ambassador-at-Large, Office of Global Women’s Issues, U.S. Ambassador Nirupama Rao and Dr R. Chidambaram, Principal Scientific Advisor to Government Department of State; Dr. John P. Holdren, of India, at the inaugural session of the third US-India Energy Partnership Summit. Assistant to the President for Science and Technology and Director, Office of Science and Technology Policy, Executive Office of the President of the United States; Dr. R Chidambaram, Principal Scientific Advisor, Government of India; Prof Jagdish N. Bhagwati, Professor, Economics and Law, Columbia University; and Nirupama Rao, Indian Ambassador to the U.S. attended the Summit. Al Gore, Nobel Laureate and former U.S. Vice-President, called for cooperation between the two countries to address health- related problems, arising due to climate change, in a video address. For the first time, a high-level CEO Inaugural Session, titled ‘Policy Insights to Foster US-India Energy Cooperation,’ in progress. Dialogue was also held on the sidelines of the Summit. Attended by top corporate leaders from both the countries, the dialogue was moderated by Prof Jeffrey A. Sonnenfeld of Yale University. The ‘triple bottom line’ of peo - ple, planet and profit was the focus and through their deliberations, the business lead - ers envisioned lasting solutions to current crit - ical challenges facing the two countries. U.S. 8 Deputy Secretary of Department of Interior, David J Hayes, delivered the keynote address on the occasion. It was noted that the ‘Dinner of Hope,’ held as a curtain-raiser to the Summit, had been successful in illuminating 450 un-electrified households in the remote corners of India through TERI’s ‘Lighting a Billion Lives’ campaign — a sustainability initiative for the Ambassador Rao with Ambassador Karl F. Inderfurth, Senior Advisor and Wadhwani Chair at 1.4 billion global population that has no access the US-India Policy Studies, CSIS. to electricity.

May 2012 India Review Ambassador’s ENGAGEMENTS Addressing global ‘Partnership with U.S. key health challenges to India ’s growth ’ n a meeting with uring a Senator Dianne meeting I Feinstein from with U.S. California at Capitol Hill in D Health and Washington, D.C., on April Human Services 23, Ambassador Nirupama Secretary Kathleen Rao described the United 9 Sebelius in Washington, States as a key partner in D.C., on April 9, India’s quest for socio-eco - Ambassador Nirupama nomic development and Rao said that vibrant inclusive growth, and high - India-U.S. health coop - lighted sectors like educa - eration was important tion and health as important Ambassador Nirupama Rao presenting a for strengthening their Ambassador Rao with Secretary for pillars of this partnership. book on India to Senator Dianne Health and Human Services Kathleen Feinstein during their meeting at Capitol strategic dialogue and Sebelius on April 9. Appreciating the Senator’s Hill in Washington, D.C., on April 23. addressing the chal - contributions in deepening lenges of global health such as Rotavirus vaccine develop - India-US partnership, she noted the recent developments in bilateral ment, solution for HIV/AIDS and non-communicable dis - relations, and the shared values and interests of the two countries. eases containment. They agreed to strengthen cooperation Discussing the regional situation, including the situation in in the area of public health by sharing information and best Afghanistan and Pakistan, and in East Asia, Ambassador Rao and practices, identify and address policy concerns and estab - Senator Feinstein agreed that the emergence of an open, balanced and lish new technologies. Ambassador Rao also underscored inclusive architecture in the Asia-Pacific region was in the interest of both the opportunity for development of cooperation in the field India and the US. of traditional medicine.

‘India committed to promoting strategic Ambassador Nirupama Rao briefs partnership with U.S.’ Congresswoman Ileana Ros-Lehtinen mbassador Nirupama Rao reaffirmed n a meeting with Chairman of the India’s commitment to promote House Foreign Relations A India-U.S. strategic partnership in a I Committee, Congresswoman meeting with Senator Ron Wyden at Capitol Ileana Ros-Lehtinen from Florida at Hill in Washington, D.C., on April 19. Noting Capitol Hill in Washington, D.C., on the multi-faceted cooperation between India April 17. Ambassador Rao briefed the and the United States, Senator Wyden, who U.S. lawmaker on India’s perspective is a senior Senator representing the state of on regional and global issues of com - Oregon in the U.S. Senate, expressed his mon interest. Discussing the current keen interest in developing closer relations state of India-U.S. relations, and the between the state of Oregon and India, par - global strategic partnership between ticularly in the field of business, trade and the two countries, she also gave an people-to-people relations. overview of trade and business ties and Recalling his recent visit to India, the the prospects for economic coopera - Senator described his discussions with tion that existed in the partnership. Government of India officials on a range of Congresswoman Ros-Lehtinen, who issues of common interest, as very useful. is the senior-most House Republican Ambassador Nirupama Rao with Congresswoman Senator Wyden is a member of several woman, welcomed India’s contribu - Ileana Ros-Lehtinen from Florida at Capitol Hill, Washington, D.C., on April 17. important Senate Committees, including the tion to Afghanistan’s reconstruction, Select Committee on Intelligence and the saying India-U.S. partnership had an being. She also spoke of the broad Budget Committee. important role in contributing to the spectrum of opportunities for the two war-torn nation’s progress and well- countries to collaborate.

May 2012 India Review Ambassador’s ENGAGEMENTS

‘Horizon for what we can do Ambassador Rao at Washington together is limitless’ Adventist University peaking at the inaugural din - On April 3, Ambassador Rao ner on the establishment of addressed an International Business India Chair in Democracy Summit at the VCU on the theme ‘The S and Civil Society at Rise of India in the Global Business L. Douglas Wilder School of Arena’. She said that rapidly growing Government and Public Affairs at commercial elements of India-U.S. Virginia Commonwealth University business ties, including trade in goods (VCU) in Richmond on April 2, and services; technology partnerships; Ambassador Nirupama Rao noted the two-way capital flows; research based immense scope of partnership between tie-ups in the field of agriculture, ener - India and the US. She stressed the gy, health-care, etc., provided a key need to constantly nurture the bonds underpinning to the bilateral strategic of friendship, including through build - relationship. She also underscored that ing partnerships, especially in the field fundamentals of India’s economic of education, and between research growth remain sound. India’s strong institutions of the two countries. domestic consumption; a growing Ambassador Rao emphasized that middle class of about 300 million peo - democracy, freedom from fear, respect ple; India’s focus on manufacturing for civil liberties and the rule of law and innovation; and its skilled human provided essential foundations to the resource base would continue to pro - edifice of India-U.S. strategic partner - vide new opportunities for commercial ship. Governor of Virginia Robert ties between the two countries, McDonnell also addressed the audi - she said. ence on the occasion. In a meeting with a cross-section of In a separate meeting, Ambassador business leaders in Richmond, hosted Rao and Governor McDonnell agreed at the headquarters of Mead West to take concrete follow up measures to Vaco on the same day, Ambassador Ambassador Nirupama Rao addressing forge greater trade and investment ties Rao underlined that India’s economic graduates of Washington Adventist University, between India and the State reforms were progressive and Takoma Park, Maryland, on April 29. of Virginia. investor-friendly.

Ambassador Rao visits Indiana University

10

Ambassador Nirupama Rao giving a lecture on ‘India-U.S. Relations’ at Whittenberger Auditorium, Ambassador Nirupama Rao with President of Indiana University Bloomington, on April 10. Indiana University, Michael McRobbie.

May 2012 India Review Ambassador’s ENGAGEMENTS ‘Take India-U.S. business ties to next level’

ith India focused on power is a critical input to sustain a developing itself as a high growth rate. The installed power global hub for innova - capacity is expected to increase by W tion, would five times over the next two decades like the business community to explore and electricity production is expected new ways to advance India-U.S. trade to expand six fold by 2030. To meet and investment ties to the next level, the growing need for public services, Ambassador Nirupama Rao said at the huge investment is required both in 11 8th Annual India Business Conference urban and rural areas, including pub - at Columbia Business School in New lic infrastructure, development of York on April 14. new educational and training facili - “I think, now, more than ever before, ties for skill-building and upgrading in the U.S., as in India, there is a clear health care systems. Development of recognition in advancing the India- infrastructure, including new roads, U.S. relationship to a new level of building ports, airports and augment - higher engagement fully befitting of ing power generation capacities, our strategic partnership,” offers opportunities for an invest - Ambassador Rao said, addressing the ment of close to $1.7 trillion over the conference on the theme ‘India: next decade. I believe that a substan - Maintaining Momentum.’ Ambassador Nirupama Rao delivering her tial portion of investments in infra - Keynote address at the 8 th Annual India Business Among others, GP Hinduja of Conference at Columbia Business School, New structure in the future would come Hinduja Group and Columbia York, on April 14 . (Photo credit: Jay Mandal) from the private sector. India’s grow - University Professor Jagdish N. ing market and the particular focus Bhagwati were present on the Other factors for the attractiveness on modernization of the infrastruc - occasion. of the Indian market included its ture sector therefore opens up excit - One central aspect of the wide-rang - strong consumption economy; skilled ing opportunities for US companies ing India-U.S. business ties had been human resource base; strengths in in the coming years. their mutually beneficial nature, knowledge economy; rapidly growing India’s economic progress is not Ambassador Rao said noting the Indian middle class; and strong trends in only a key factor of stability in the IT industry, for one, had helped build urbanization, Ambassador Rao global economy but also a source of competitiveness for U.S. companies added. immense economic opportunity for and facilitated increased access to the world. As the growth trajectory is emerging markets. Abstract from Ambassador sustained, and with a steady increase Businesses between the two coun - Nirupama Rao’s speech on the in the disposable incomes from an tries, across a range of sectors of eco - occasion: expanding work force, India is expect - nomic activity, were more integrated “Infrastructure development in new ed to emerge as one of the world’s than ever before, she said. “Clearly, it townships is the focus of investment largest consumer markets by 2030. is a mutually complementary frame - now and would remain so for the fore - Moving beyond numbers, we are work of ties. “Going forward, among seeable future. A recent study by observing a transformative change in important factors in forging bilateral McKinsey estimates that by 2030, 65 India across almost all sectors of an trade and investment links would be cities will have a population of more economy that is infused with entrepre - India’s focus on developing itself as a than one million and would account neurial energy and driven by a young global hub for innovation and India’s for 600 million of India’s population. working population.” commitment to modernize its manu - The share of GDP from these cities facturing and increase its share in the could rise to 70 percent. Over the next The full text of Ambassador Rao’s GDP to 25 percent by 2022,” 20 years, cities would require a capital speech can be viewed at: http:// she added. expenditure of $1.2 trillion. This www.indianembassy.org/prde - The Indian infrastructure sector urbanization process offers huge tail1909/address-by-ambassador- with financing requirements of about opportunities for investment for for - nirupama-rao-at-the-8th-annual- $1 trillion in the next five years, also eign investors and capital equipment india-business-conference-at-colum - represented a clear set of opportunities manufacturers. bia-business-school%2C- for investment and partnerships by Generation, transmission and dis - andquot%3Bindia%3A-maintaining- U.S. companies, she said. tribution of uninterrupted quality momentumandquot%3B

May 2012 India Review Ambassador’s ENGAGEMENTS ‘Use education to make a difference’

elivering a commence - Excerpts from Ambassador Rao’s science without humanity, no worship ment address at the speech on the occasion: without sacrifice, and no politics University of Florida, “Change is not easy in any society. without principle. D Gainesville, on April 27, The convenient way out is to adopt From this, we can deduce relevant Ambassador Nirupama Rao urged the ways that have been in place for count - inspirations for a youth or an artiste or students to make use of their educa - less years. All of you, whose education a manager or politician, or if I may tion in providing solution to the chal - has taught you to ask questions, to add, for Ph.Ds, because these princi - lenges of the 21st century. She espe - seek cogent answers, know that ples apply to all of humanity. cially drew attention of the students to knowledge must constantly multiply Gandhi also said, “Nothing that is the discontents of globalizatioin, espe - and not divide, or become restrictive, violent can be of lasting benefit to cially inequality, that seemed to divide “cribbed, cabinn’d and confined” . mankind.” This is a powerful message the world. She said that in an increas - I know that all of you look to the for a world wracked by sectarian strife, ingly integrated world, where borders future with dreams, hope and anticipa - proxy wars, terrorism and conflict were becoming more and more tion. You are no doubt receiving a lot of within and between nations. His global porous, the world must be alert to the advice from your near and dea