"Retirement. It's an important distinction," State Department Deputy Spokesperson Marie Harf told reporters at her daily news conference for the second consecutive day when asked about 66-year-old Powell's resignation.
"It's a much needed rest, yes," she said yesterday apparently referring to Powell's long career as a diplomat in countries like Uganda, Ghana, Pakistan, Nepal and India.
On Monday, the US Embassy in New Delhi issued a late night statement according to which Powell announced in a Town Hall meeting that "she has submitted her resignation" to US President Barack Obama, and as planned for some time, will retire to her home in Delaware before the end of May.
"The DCM will be serving as the chief of mission when Ambassador Powell leaves India," Harf said.
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"I would also say that the relationship is bigger than just one person...We have relationships between Washington in the field with other countries as well. So the relationships are much bigger than just the ambassador, but we do believe it's important."
"The buzz in New Delhi is that Powell's departure may be related to ongoing tensions over the uproar in India after the arrest of Devyani Khobragade, an Indian diplomat in New York, on charges of falsifying visa documents for her maid/nanny and then lying to investigators about what she was paying the domestic worker," The Washington Post wrote.
According to The New York Times, Powell's resignation was greeted by many in New Delhi's diplomatic community yesterday with a sense of hope that some of the grinding disputes between the US and India might soon be settled.
Harf on Monday said Powell's exit does not indicate any realignment of America's ties with India. "All the rumours and speculation are, quite frankly, totally false. She is retiring.