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A visit for optics

PM's visit to US was expected to achieve more

Narendra Modi at United Nations General Assembly
PM Narendra Modi addresses the 74th session of the United Nations General Assembly, Sept. 27, 2019. (Photo: AP/PTI)
Business Standard Editorial Comment
3 min read Last Updated : Dec 04 2019 | 3:22 PM IST
From the point of view of optics, and of underlining India's status as a geopolitical swing state, Prime Minister Narendra Modi's visit to the US must be seen as a success. The importance of India, and of Indian-Americans, to the political establishment in the US cannot be disputed following Mr Modi's joint appearances with President Donald Trump at a rally in Houston, attended by more than 50,000 enthusiastic participants — and broadcast to 3 million more Indian Americans. The PM's pitch to investors and business leaders in the US was also aided by the announcement of cuts in the corporation tax rate just before his trip.

However, measured by the yardstick of the expectations raised in New Delhi prior to the visit, the results were somewhat underwhelming in their scope. Most importantly, there was no visible progress on the ongoing trade tension between India and the US — a wholly avoidable series of disputes, given the far larger threat that China poses to the trading system, affecting both India and the US similarly. There were some hopes that a "mini trade deal" might be agreed on by the US president and the Indian prime minister, putting an end to a period of sniping between the two countries' trading establishments. Recent causes of this tension include the US' decision to end Indian exporters' eligibility for a zero-tariff programme, and Indian moves towards protectionism in sectors like electronics and medical devices. There is certainly scope for compromise, which would benefit both countries. However, it is unfortunate that there appears to have been no movement forward. Even the landmark deal that was supposed to set the tone for Mr Modi's visit, between LNG major Petronet and US-based Tellurian, has suffered from second-day jitters, with the Indian stock market asking hard questions about the deal — which, it turns out, was less a deal and more another memorandum of understanding. As a mechanism for reviving bonhomie in US-India trade, this cooperation on energy may not seem to be as effective as hoped.

It is unfortunate that, instead of resetting economic relations, much of the oxygen was consumed by the fallout internationally of the changed political status of the erstwhile Jammu and Kashmir state. In spite of domestic interests in the matter, it is futile to expect the US under Mr Trump to either ignore the issue altogether or to openly isolate Pakistan — in spite of the aggressive rhetoric of the latter. Mr Trump's presence at the Houston rally was followed by press availabilities on the following days when he repeatedly deflected questions about Pakistan being the epicentre of regional terrorism. This can only be seen as problematic or deflating for India if it was seen as the centrepiece of Mr Modi's visit. It is clear from his speech to the United Nations General Assembly, however, that he had larger concerns, including India's ongoing commitment to the fight against the climate crisis. From the point of view of optics, therefore, the visit cannot be faulted — and it will no doubt have further burnished the prime minister's image domestically as a global statesman. But the plain fact is that he has won few concrete advantages for India over the course of the visit.


Topics :Donald TrumpNarendra ModiHowdy Modi

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