US visit: PM to take up CEO forum, nuke issue

FDI in retail sector and democracy fund to be discussed

Hamstrung by the state of domestic political partnerships, Prime Minister Manmohan Singh's trip to the United States, being billed as an important diplomatic visit, is unlikely to yield any substantive results. A partnership on HIV AIDS and the creation of a joint CEOs forum are likely to be the high points of the visit.

Civilian nuclear energy was to be one of the most important issues the two governments were to have discussed. At a special briefing about the prime minister's US visit, Foreign Secretary Shyam Saran was asked what the expected developments in civilian nuclear energy cooperation were going to be.

"We should look at the issue of cooperation in nuclear energy as a process. Discussion on this has moved further than it was a year ago. So the change has already taken place. We will make an effort to take it further... the coming months will see the dialogue move forward," Saran said.

"This was not a big bang visit, principally because we are clear we do not want any 'big bangs' here" said an official.

Saran said a significant agenda of the visit would be the CEO's forum which the two countries would announce jointly as part of the economic content of the visit.

The most crucial announcement, that US business is awaiting the opening up of the retail sector to foreign direct investment, is likely to be obliquely referred to by the Prime Minister.

The Prime Minister had hoped to announce the finalisation of the investment in India by chipmaker Intel during the visit. However, as negotiations on this were still going on and Intel was seeking a number of facilities from the government of India, the deal was likely to be delayed.

"India's economic liberalisation is proceeding apace, the investment climate has improved, the Patents Bill has become an Act, India has abolished Press Note 18 and banking and insurance rules for foreign shareholders are being liberalised," Saran said.

But government sources said the Prime Minister would be circumspect about making any dramatic announcements for fear of resistance at home.

That the marketing of Indo-US relations had changed was clear from the tone of Saran's briefing. "We are going to the US with the offer of a genuine partnership," Saran said. "If there is greater focus on the relationship, it is because India is strong not weak.

India has got an array of capabilities that are driving countries around the world, including the US for a desire of engagement....We are not going as supplicants. India is also bringing something to the table."

On restrictions placed by the US on dual-use technology, Saran said, "We have conveyed to the US that if it looks at India as a partner, it cannot treat India as a target. This approach must undergo a change."

Saran said there was a lot the US and India could share, such as the US's strengths in high technology and investment capital, and India's cutting-edge knowledge sector. "A number of initiatives will be taken where interests converge," he said.

Discussions on the Democracy Fund, where India and the US would together strengthen institutions of democracy around the world, would be an important political initiative bringing together joint affinities, he said.