MUMBAI on Sunday saw a glimpse of the 'wow factor' that helped Barack Obama become President in 2008 as he mingled and spoke to a young audience at St Xavier's College. But the drubbing he received in the polls appeared very much on his mind as he sought a new grammar in the economic engagement between the two nations and, reciprocity, he seemed to insist, should be the defining character of the relationship.
Addressing an audience of 300 students at one of Mumbai's best-known colleges, President Obama was candid in acknowledging that the world has changed and so has the US. "We have to negotiate this change in relationships... in the '60s and the '70s, America could be open even if the economies of our trade partners were not open. So if India was protecting certain sectors, it didn't really have such a big effect on us. We didn't need reciprocity because our economy was so much larger... Well, now there is a change. It is not unfair for the US to say... well, if our economy is open to everybody, countries that trade with the US have to change their practices, too," Mr Obama said. This clearly indicated that the Americans could pile up pressure on India to open up sectors such as retail and financial services during the negotiations in New Delhi on Monday.
With the mid-term elections in the US becoming all about economy and with clear indications that the Democrats' political fortunes will not recover until the economy recovers, the President is under pressure to take something substantive for his domestic constituency. In all his meetings in Mumbai, he has been driving home the point that India needed to open up.
"We want access to your markets. We have good products to sell. You think you have good products to sell us. This can be a win-win situation. We are here because this will create jobs in the US and it will create jobs in India," President Obama said.
Elaborating on his theme of reciprocity, he said that refusal to open up could constrict the room for concessions. "If the American people feel that trade is just a one-way street, where everybody is selling to the US market, but we can never sell what we make, the people in the US will think this is a bad deal," he said. "And that will lead to more protectionist instincts in both parties, not just among Democrats but among Republicans too."
In his interactions, the President repeatedly said his administration will not redefine its policy towards New Delhi. He said there was bipartisan consensus in the US about the engagement with India. "This was true when George Bush was the President, it was true when Bill Clinton was the President... I don't think that fundamental belief is going to be altered in any significant way."
During his interaction at St Xavier's, President Obama also gently nudged India to re-start negotiations with Pakistan. He also suggested a road map — taking up the less controversial issues first and then moving on to the controversial ones. At the same time, he took care not to offend Indian sensitivities and reiterated that it was an issue for India and Pakistan to settle. Obama puts onus on India
BUT the US administration's reluctance to back India's charge of state-sponsored terrorism was clearly evident. Equally, he tried to put the onus for normalisation of relations on India.
"India is on the move and it is absolutely in your interest that, at a time you are starting to succeed in incredible ways on the global economic stage, there are no distractions of instability in the region," he said.
Acknowledging that extremist elements exist in Pakistan, the President said the US government has tried to engage aggressively with the Pakistan government.
"We will work with the Pakistan government in order to eradicate this extremism, that we consider a cancer…that can potentially engulf the country," he said.
"Now, progress is not as quick as we like," he conceded. "The northwest terrain is very difficult, very entrenched…the Pakistan army has actually shifted some of its attention and focus to those areas, but that's not what their armed forces were originally designed to do…they are having to adapt and adjust to these new dangers and new realities," he said, answering a student's question on why the US is not branding Pakistan a terrorist state.
"There is a growing recognition of what a profound problem this is, but it doesn't happen overnight…. And so our feeling is to be honest and forthright with Pakistan and say this is a problem and we are your friend and we will help you," he said. "But the problem has to be addressed."
The President said he hoped that over time there is a recognition that India and Pakistan can live side by side in peace and both can prosper. "That cannot happen tomorrow, but that needs to be our ultimate goal," President Obama said.
First Lady Michelle Obama, who introduced her husband to the 300 students, encouraged them to ask some tough questions and keep the President 'on his toes'. Though the students welcomed the President with wild applause, they did not spare him the hard questions.
"He did not answer my question to the point, I think that is what he could possibly say," Afsheen Irani, from HR College of Commerce told ET soon after she posed the question on Pakistan to Obama.
"He was being diplomatic in addressing the concern of Pakistan and he did make a point about helping Pakistan and creating a stable situation there," she said.
Addressing an audience of 300 students at one of Mumbai's best-known colleges, President Obama was candid in acknowledging that the world has changed and so has the US. "We have to negotiate this change in relationships... in the '60s and the '70s, America could be open even if the economies of our trade partners were not open. So if India was protecting certain sectors, it didn't really have such a big effect on us. We didn't need reciprocity because our economy was so much larger... Well, now there is a change. It is not unfair for the US to say... well, if our economy is open to everybody, countries that trade with the US have to change their practices, too," Mr Obama said. This clearly indicated that the Americans could pile up pressure on India to open up sectors such as retail and financial services during the negotiations in New Delhi on Monday.
With the mid-term elections in the US becoming all about economy and with clear indications that the Democrats' political fortunes will not recover until the economy recovers, the President is under pressure to take something substantive for his domestic constituency. In all his meetings in Mumbai, he has been driving home the point that India needed to open up.
"We want access to your markets. We have good products to sell. You think you have good products to sell us. This can be a win-win situation. We are here because this will create jobs in the US and it will create jobs in India," President Obama said.
Elaborating on his theme of reciprocity, he said that refusal to open up could constrict the room for concessions. "If the American people feel that trade is just a one-way street, where everybody is selling to the US market, but we can never sell what we make, the people in the US will think this is a bad deal," he said. "And that will lead to more protectionist instincts in both parties, not just among Democrats but among Republicans too."
In his interactions, the President repeatedly said his administration will not redefine its policy towards New Delhi. He said there was bipartisan consensus in the US about the engagement with India. "This was true when George Bush was the President, it was true when Bill Clinton was the President... I don't think that fundamental belief is going to be altered in any significant way."
During his interaction at St Xavier's, President Obama also gently nudged India to re-start negotiations with Pakistan. He also suggested a road map — taking up the less controversial issues first and then moving on to the controversial ones. At the same time, he took care not to offend Indian sensitivities and reiterated that it was an issue for India and Pakistan to settle. Obama puts onus on India
BUT the US administration's reluctance to back India's charge of state-sponsored terrorism was clearly evident. Equally, he tried to put the onus for normalisation of relations on India.
"India is on the move and it is absolutely in your interest that, at a time you are starting to succeed in incredible ways on the global economic stage, there are no distractions of instability in the region," he said.
Acknowledging that extremist elements exist in Pakistan, the President said the US government has tried to engage aggressively with the Pakistan government.
"We will work with the Pakistan government in order to eradicate this extremism, that we consider a cancer…that can potentially engulf the country," he said.
"Now, progress is not as quick as we like," he conceded. "The northwest terrain is very difficult, very entrenched…the Pakistan army has actually shifted some of its attention and focus to those areas, but that's not what their armed forces were originally designed to do…they are having to adapt and adjust to these new dangers and new realities," he said, answering a student's question on why the US is not branding Pakistan a terrorist state.
"There is a growing recognition of what a profound problem this is, but it doesn't happen overnight…. And so our feeling is to be honest and forthright with Pakistan and say this is a problem and we are your friend and we will help you," he said. "But the problem has to be addressed."
The President said he hoped that over time there is a recognition that India and Pakistan can live side by side in peace and both can prosper. "That cannot happen tomorrow, but that needs to be our ultimate goal," President Obama said.
First Lady Michelle Obama, who introduced her husband to the 300 students, encouraged them to ask some tough questions and keep the President 'on his toes'. Though the students welcomed the President with wild applause, they did not spare him the hard questions.
"He did not answer my question to the point, I think that is what he could possibly say," Afsheen Irani, from HR College of Commerce told ET soon after she posed the question on Pakistan to Obama.
"He was being diplomatic in addressing the concern of Pakistan and he did make a point about helping Pakistan and creating a stable situation there," she said.
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