3. Economic and Development Issues
India and the United States signed two billion dollars worth of business agreements and the U.S. made possible an additional one billion dollars' worth of U.S. EximBank financing. The largest single deal is for joint development of a "technology city" in the state of Andhra Pradesh. Finance Minister Yashwant Sinha assured the U.S. that India's import tariffs would be reduced gradually "to levels prevailing in the neighborhood." In addition to direct business links, India-U.S. working groups were established in the areas of technology, alternative energy, and commerce.
"India, US sign $2bn worth of accords"
"Sinha assurance to U.S. on import tariffs"
"Forum to spur closer tech ties"
"India, US sign pact on alternative energy"
"India, U.S. sign knowledge-trade initiative"
"India, U.S. accord on Commercial Dialogue"
In his speech to India's Parliament, President Clinton clarified the U.S. position on the relationship between trade and labor: "Trade should not be a race to the bottom in environmental and labor standards, but neither should fears about trade keep part of our global community forever at the bottom."
"U.S. defends stance on trade and labour"
Analysis: Chandrika Mago (in Times of India) argues that India committed itself to producing an unrealistically high proportion of energy from renewable resources. Mago says that the U.S., by contrast, has made no additional commitments in exchange. C. Raja Mohan (The Hindu) argues that President Clinton's longest private meeting, with Indian businessman Dhirubhai Ambani, had security as well as economic implications. Ambani's corporation is expected to construct an Iran-Pakistan-India natural gas pipeline.
"Has India got a raw environment deal from US?" Chandrika Mago
"Clinton, Ambanis and the peace pipeline"
SANDNet Update March 23: "Pak okays Iran to India gas pipeline"