[House Hearing, 113 Congress]
[From the U.S. Government Publishing Office]
U.S.-INDIA RELATIONS UNDER THE MODI GOVERNMENT
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON ASIA AND THE PACIFIC
OF THE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
JULY 24, 2014
__________
Serial No. 113-203
__________
Printed for the use of the Committee on Foreign Affairs
Available via the World Wide Web: http://www.foreignaffairs.house.gov/
or
http://www.gpo.gov/fdsys/
______
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COMMITTEE ON FOREIGN AFFAIRS
EDWARD R. ROYCE, California, Chairman
CHRISTOPHER H. SMITH, New Jersey ELIOT L. ENGEL, New York
ILEANA ROS-LEHTINEN, Florida ENI F.H. FALEOMAVAEGA, American
DANA ROHRABACHER, California Samoa
STEVE CHABOT, Ohio BRAD SHERMAN, California
JOE WILSON, South Carolina GREGORY W. MEEKS, New York
MICHAEL T. McCAUL, Texas ALBIO SIRES, New Jersey
TED POE, Texas GERALD E. CONNOLLY, Virginia
MATT SALMON, Arizona THEODORE E. DEUTCH, Florida
TOM MARINO, Pennsylvania BRIAN HIGGINS, New York
JEFF DUNCAN, South Carolina KAREN BASS, California
ADAM KINZINGER, Illinois WILLIAM KEATING, Massachusetts
MO BROOKS, Alabama DAVID CICILLINE, Rhode Island
TOM COTTON, Arkansas ALAN GRAYSON, Florida
PAUL COOK, California JUAN VARGAS, California
GEORGE HOLDING, North Carolina BRADLEY S. SCHNEIDER, Illinois
RANDY K. WEBER SR., Texas JOSEPH P. KENNEDY III,
SCOTT PERRY, Pennsylvania Massachusetts
STEVE STOCKMAN, Texas AMI BERA, California
RON DeSANTIS, Florida ALAN S. LOWENTHAL, California
TREY RADEL, Florida--resigned 1/27/ GRACE MENG, New York
14 deg. LOIS FRANKEL, Florida
DOUG COLLINS, Georgia TULSI GABBARD, Hawaii
MARK MEADOWS, North Carolina JOAQUIN CASTRO, Texas
TED S. YOHO, Florida
LUKE MESSER, Indiana--resigned 5/
20/14
SEAN DUFFY, Wisconsin--
added 5/29/14
CURT CLAWSON, Florida--
added 7/9/14
Amy Porter, Chief of Staff Thomas Sheehy, Staff Director
Jason Steinbaum, Democratic Staff Director
------
Subcommittee on Asia and the Pacific
STEVE CHABOT, Ohio, Chairman
DANA ROHRABACHER, California ENI F.H. FALEOMAVAEGA, American
MATT SALMON, Arizona Samoa
MO BROOKS, Alabama AMI BERA, California
GEORGE HOLDING, North Carolina TULSI GABBARD, Hawaii
SCOTT PERRY, Pennsylvania BRAD SHERMAN, California
DOUG COLLINS, Georgia GERALD E. CONNOLLY, Virginia
LUKE MESSER, Indiana--5/20/14 WILLIAM KEATING, Massachusetts
noon
CURT CLAWSON, Florida--
added 7/9/14
C O N T E N T S
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Page
WITNESSES
The Honorable Nisha Biswal, Assistant Secretary, Bureau of South
and Central Asian Affairs, U.S. Department of State............ 8
The Honorable Arun Kumar, Director General of the U.S. and
Foreign Commercial Service and Assistant Secretary for Global
Markets, International Trade Administration, U.S. Department of
Commerce....................................................... 16
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
The Honorable Nisha Biswal: Prepared statement................... 11
The Honorable Arun Kumar: Prepared statement..................... 18
APPENDIX
Hearing notice................................................... 40
Hearing minutes.................................................. 41
The Honorable Eni F.H. Faleomavaega, a Representative in Congress
from American Samoa: Prepared statement........................ 42
The Honorable Edward R. Royce, a Representative in Congress from
the State of California, and chairman, Committee on Foreign
Affairs: Prepared statement.................................... 45
U.S.-INDIA RELATIONS UNDER THE MODI GOVERNMENT
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THURSDAY, JULY 24, 2014
House of Representatives,
Subcommittee on Asia and the Pacific,
Committee on Foreign Affairs,
Washington, DC.
The committee met, pursuant to notice, at 4 o'clock p.m.,
in room 2172, Rayburn House Office Building, Hon. Steve Chabot
(chairman of the subcommittee) presiding.
Mr. Chabot. The committee will come to order.
We would like to welcome everyone here and apologize for
starting about an hour later than we were scheduled. We had a
whole series of votes that started at the time that our
committee was scheduled to start. So, we apologize for any
inconvenience to anyone.
I want to start out the meeting by saying how pleased we
are to have our Eni back. He is looking great, and we are
certainly pleased to have him representing the other side in
these hearings. Whereas, some committees, they can be at each
other's throats, in this committee we tend to get along. Even
if we don't necessarily agree, we do it in a nice manner. But
we generally do agree on a lot of things. We are really, really
happy to have Eni Faleomavaega back and we wish him great
health for many years to come. And I think Ami, all kidding
aside, did a very good job filling in while he was not here--
really a commendable job--thank you so much, Ami, for filling
in.
I also want to thank our distinguished witnesses for being
here today to discuss a relationship of great importance and a
country that has a great impact on the national security
interests of the United States, not only in Asia, but in other
parts of the world as well.
India is a nation of 1.2 billion people, and sometime in
the very near future will, in all likelihood, be the most
populous nation on earth, replacing China, and certainly is the
powerhouse of South Asia. It has also been called an
indispensable partner of the United States. This year marks the
tenth anniversary of the U.S.-India Strategic Partnership,
launched on January 2004 by President Bush. Over the last 10
years, we have seen this bilateral relationship evolve, and
today, India is the 18th largest export market for the United
States and U.S. direct investment in India has grown over 300
percent during that time. It is expected that annual bilateral
trade between our two countries could increase by fivefold over
the next 10 years.
In April and May, India conducted the largest democratic
exercise in history. The outcome of this election was historic
because the former opposition Indian People's Party, the BJP,
became the first party to win a majority of India's lower
chamber of Parliament since 1984 and became the first non-
Congress Party to rule India's Federal Government without
coalition partners. In addition, Mr. Modi is now the first
lower-caste Prime Minister, the first born after the country's
1947 independence, and the first to not have been previously
embedded within New Delhi's political class. We are all hopeful
that the new administration will seize upon this opportunity to
work with the United States in reinvigorating bilateral ties
and building a more dynamic partnership.
Assistant Secretary Kumar--I think your presence here this
afternoon is reflective of how important trade and investment
are for the future of the U.S.-India relationship. Prime
Minister Modi faces the daunting mission of reviving the Indian
economy and taking steps to encourage private-sector growth. I
am hopeful that his strong positions on trade and business
development will help achieve this.
Initiatives to spur development in India are critical, and
the U.S. can play a significant role in promoting and
facilitating modernization efforts. U.S. businesses continue to
face severe barriers including patent revocations, compulsory
licenses, and copyright piracy, among other things. This is
coupled with concerns about market access, caps on foreign
direct investment, and stalled bilateral investment treaty
negotiations. I hope we can hear how the administration plans
to address these ongoing trade challenges, especially at the
U.S.-India Strategy Dialogue next week.
I am also hopeful that Mr. Modi's resolve to implement a
more assertive foreign policy will foster further geopolitical
alignment and cooperation between our two nations because at
the end of the day, U.S.-India strategic interests do converge
more than they conflict. On the positive side, India's
deepening relations with Japan pave the way for possible
collaboration on efforts to respond to China's unilateral
actions in the East and South China Seas. On the other hand,
India's relationship with Russia and implicit support of
Russian ambitions in Ukraine are concerning. I hope, Ms.
Biswal, you can touch on this particular issue.
Many of my colleagues are also concerned about the
persecution of religious minorities in India--largely Christian
and Muslim groups--and repeated reports about discrimination
against women. India has seen a 30-percent increase in
incidents of communal violence since 2012, which has resulted
in over 133 deaths. I hope the new Modi government makes it a
priority to effectively address communal violence against all
religious groups and adequately punishes rampant sexual abuse.
Short of doing so, these human rights issues will only continue
to impede efforts to modernize India's economy and expand
opportunities for its poverty-stricken population.
As the Obama administration establishes a plan for future
cooperation with India, it needs to take a leadership role in
building upon U.S.-India mutual strengths, finding ways to
advance mutual trust, and doing a better job at helping India
integrate into the international system.
While the ``Indo-Pacific Economic Corridor'' and ``New Silk
Road'' are credible initiatives aimed at better integrating
India with the rest of Asia, they cannot be our only efforts to
do so. India must play a more prominent role in the
administration's rebalance policy toward Asia because the
challenges we face in the East and West do not stop at any one
country's border. The new Modi administration offers us the
chance to change this--to deepen cooperation across the
spectrum that will harvest the region's ability to better
maintain freedom of navigation, prevent the spread of
terrorism, and inhibit the proliferation of nuclear weapons.
Prime Minister Modi's scheduled visit to the U.S. in
September acknowledges the importance a strong U.S.-India
relationship can play in our future engagement. I hope Prime
Minister Modi can address and deliver on the promised reforms
that are needed to strengthen ties between our two countries.
And I urge the administration to be proactive in driving
efforts to tackle the most salient issues that negatively
affect U.S. economic and regional security interests. I again
thank the witnesses for being here and look forward to their
testimonies.
I would now like to turn to the gentleman from American
Samoa and welcome back Eni Faleomavaega.
Mr. Faleomavaega. Thank you, Mr. Chairman.
As India's newly-elected Prime Minister Narendra Modi said,
``Good days are coming.'' And I agree.
I am grateful to our Heavenly Father for the good days and
good friends. I would be remiss if I did not take this
opportunity to personally thank you, Mr. Chairman and Mr. Bera,
for your support, your thoughts and prayers during my time of
recovery. I also thank the members of our subcommittee as well
as my colleagues in the House. I am grateful to each of you and
very grateful to be back working with you on important issues
facing our country and the regions of Asia and the Pacific.
I believe together we still have a difference to make. And
so, I thank you, Mr. Chairman, for holding this important
hearing at my request on U.S.-India relations under India's
newly-elected Prime Minister, my good friend Narendra Modi.
History will remember India's 2014 elections this year as
unprecedented. I will remember the 2014 elections as an epic
triumph because, on May 16, 2014, in the most historic election
since India's independence, Shri Modi won India in a landslide
victory that gave Shri Modi the most decisive mandate for an
Indian Prime Minister in three decades, despite the United
States using every recourse it could to disrupt his destiny.
No doubt Prime Minister Modi's destiny is to lift up the
masses, assure social justice, and bring new hope for any and
all who, like him, step forward and transform changes and
challenges into opportunities by sheer strength of character
and courage.
Prime Minister Modi's victory is India's victory. It is our
victory, too. And I join with the good people of India and our
Indian-American community throughout the United States in
celebrating a new dawn of development for all.
Our U.S.-India partnership should be, could be, one of the
most defining of the 21st century. But it is shameful that our
Government, yes, the United States, failed to develop a strong
friendship and comprehensive partnership with Shri Modi when it
mattered most.
I thank Prime Minister Modi for accepting President Obama's
invitation to meet at the White House on September 30th of this
year. Prime Minister Modi's willingness to put the past in the
past is a testament to his track record of good governance. He
is a selfless leader who puts India and some 1.3 billion
Indians first.
In recognition of his visit to our nation's Capitol, I join
with my colleagues in calling upon the Speaker John Boehner and
Senator Majority Leader Harry Reid to invite Prime Minster Modi
to address a Joint Session of the U.S. Congress. I commend the
co-chairs of the House Caucus on India and Indian Americans and
their counterparts in the Senate, and also my good friends
Congressman Brad Sherman, Congressman Ami Bera, Mr. Sanjay Puri
of the Alliance for Indian-American Business, and all those who
are working together for this purpose.
I also thank Mr. Puri for introducing me to Shri Modi in
2010, 4 years ago. In 2010, Shri Modi was Chief Minister of
Gujarat and I was chairman of this subcommittee. I flew to
Gujarat to meet the Chief Minister at that time at his
residence. I knew then what I know now: Shri Modi is dedicated,
he is determined, he is dynamic, he is different. He is the key
player for improved relations between the United States and
India.
Today he is the leader of the world's largest democracy,
and I have every confidence he will cut across caste, creed,
and religion, and bring alive the dreams of over 1 billion
Indians in a world that needs his leadership. As a man of
vision and action, he, together with each and every citizen of
India, will create something special, an India of sustainable
development and inclusive growth and an India that will
rightfully assume its place in the political and economic
affairs of the world.
You can be assured Prime Minister Modi will usher in
India's new era, and the United States would be wise to support
his goals. India will not be threatened, nor be intimidated by
any country. India will deepen partnerships regionally and
globally in areas of defense, nuclear energy, space research,
and trade and investment. India will also invest heavily in
infrastructure, affordable housing, healthcare, education, and
clean energy. India will advance the interests of the
developing world and lead the way in establishing a new model
for maintaining stability without constraining growth. Prime
Minister Modi will devote it all to eradicate poverty.
Good days are coming, Mr. Chairman. Don't matter the
pundits and critics who have too long maligned Shri Modi and
his supporters.
And so, once more, I congratulate Shri Modi on his path-
breaking campaign, and I praise BJP Party President Singh for
working shoulder-to-shoulder with Shri Modi to ensure that the
spirit of democracy has triumphed.
I also commend Mr. Puri for championing the cause, the work
of Shri Modi in Congress, at a time when others were not
courageous enough, and for holding firm even though he was also
unjustly and wrongfully maligned.
Above all, Mr. Chairman, I praise Prime Minister Modi for
his beginning as a son of a tea seller to a groundbreaking
victor. I wish Shri Modi every success in his historical
journey forward as the Prime Minister that the people of India
have long awaited.
I yield back. Thank you, Mr. Chairman.
Mr. Chabot. Thank you very much.
We will now turn for 1 minute to other members who may want
to make a statement. I will go first to Dana Rohrabacher, the
gentleman from California, who is also the chairman of the
Europe, Eurasia, and Emerging Threats Subcommittee.
Mr. Rohrabacher. First and foremost, welcome back, Eni. We
are grateful that you are here with us today, and that is a
very good sign that we are having a hearing about our relations
with India and talking about what good friends can accomplish
together, because Eni and I have been working together for
about 26 years now. And I feel that our friendship has helped
us both accomplish some of the goals we have set out.
The same will be true with the United States and India. If
there is any chance for prosperity, if there is any chance for
peace and stability in large sections of this world, it will be
due to a cooperative spirit and a positive relationship with
India.
Mr. Modi is a breath of fresh air. Let me just note, Mr.
Chairman, that we face serious challenges from folks who do not
mean us well or mean the Western World well, when radical Islam
and China and our central enemies happen to be the central
enemies that India faces as well. We need to work together to
create peace, work together to build the standard of living of
the people of India and enriching our own prosperity at the
same time.
So, with that said, I look forward to working with Eni and
with you, Mr. Chairman, to achieve those goals and build a
better relationship with India.
Mr. Chabot. Thank you very much. The gentleman's time has
expired.
The gentleman from California, Mr. Bera, is recognized for
a minute to make a statement. We want to again thank him for so
ably filling-in for Eni during his absence.
Mr. Bera. Thank you, Mr. Chairman.
Again, I will echo all the sentiments. I can't fill Eni's
shoes, but it is great to see you back.
It is also great to see Assistant Secretary Biswal back
before this committee and my fellow Californian and good
friend, Assistant Secretary Kumar. It is good to see you there
as well.
As an Indian-American Member of Congress and a Gujarati-
American Member of Congress, this is an exciting time. I mean,
there is a real time of opportunity, and I look forward to our
realizing that full potential.
The last decade certainly showed us what was possible, and
there is a real opportunity now for us to take this partnership
to the next level. Both economically and geopolitical, India's
importance is emerging in a very present way. If we do this
right and we take the long view on this relationship, we really
have an opportunity, as the President has said, to make this
the defining relationship of the 21st century.
So, Mr. Chairman, I yield back.
Mr. Chabot. Thank you. The gentleman yields back.
The gentleman from Pennsylvania, Mr. Perry, is recognized
to make an opening statement.
Mr. Perry. Thank you, Mr. Chairman.
Thank you, folks, for being here.
I see the great opportunities in the coming years for the
bilateral relationship between the United States and India both
militarily and economically. Of particular note is the immense
opportunity for foreign military sales, as India is planning to
spend up to $100 billion over the next decade to update its
mostly Soviet Era military arsenal.
This year marks the tenth anniversary of the U.S.-India
Strategic Partnership, which was launched in January 2004 by
then-President George Bush. I look forward to hearing an
assessment from our distinguished witnesses of this bilateral
relationship over the past decade and how they see this
relationship evolving over the coming decades.
And I yield back.
Mr. Chabot. Thank you. The gentleman yields back.
The gentleman from California, Mr. Sherman, is recognized
for 1 minute, he is also the ranking member of the Terrorism,
Nonproliferation, and Trade Subcommittee.
Mr. Sherman. Thank you.
It is great to have Eni back.
Thank you for distributing these CDs. And let me assure my
colleagues that I will not be putting out anything similar.
[Laughter.]
Mr. Chabot. Noted for the record here.
Mr. Sherman. We have just seen an election in India in
which some 550 million people participated. That is the
greatest exercise of the franchise in the history of the world.
For that and so many other reasons, Mr. Faleomavaega, Mr.
Poe, and myself have been circulating a letter--we now have 84
of our colleagues to join us in the effort--to congressional
leadership saying that we ought to have Mr. Modi address a
Joint Session of Congress.
Finally, as to the nuclear agreement, I will hope to learn
in these hearings whether India will adopt the liability
protections that will allow American companies to participate.
In light of Bhopal, I can see why that might be politically
difficult in India. But, as a practical matter, India will
benefit from the additional competition to allow U.S. companies
to compete along with those companies that already enjoy
sovereign immunity.
And I yield back.
Mr. Chabot. Thank you. The gentleman yields back.
The gentleman from North Carolina, Mr. Holding, is
recognized for 1 minute.
Mr. Holding. Thank you very much, Mr. Chairman.
There can be no question that now is the time for relations
between the United States and India to be taken to the next
level. Having visited India just last year, I have no doubt
that the U.S.-India relationship can be made into one of the
defining partnerships of this century. Joining up the Modi
magic with the American dream would be a very powerful
combination worldwide.
Mr. Chairman, with any partnership there is always room for
improvement. For the United States and India to fully recognize
the opportunity that exists right now, progress must be made to
address concerns with India's intellectual property system and
other domestic laws and requirements that have been a concern
for a number of U.S. companies doing business there.
And for our part, Mr. Chairman, Congress must reject ill-
conceived immigration proposals in the Senate that would harm
successful collaboration between the U.S. and India companies.
We must also mend relations with the Prime Minister that were
damaged with the denial of his visa prior to being elected.
It is not a small secret, Mr. Chairman, that our
relationship with India over the last few years has not been as
engaged as it could be or should have been. And I look forward
to discussing what steps we can take to remedy this and capture
the opportunity presented to us here for a new day with India
and the United States.
Thank you, and I yield back.
Mr. Chabot. Thank you very much. The gentleman's time has
expired.
I would also like to thank our newest member of this
committee, Curt Clawson, who is from the 19th district of
Florida, speaks four languages, and all kinds of other great
stuff. I will now yield to the gentleman either to talk about
India or, if you would like to, talk about yourself. You have 1
minute.
Mr. Clawson. This is a Samoan CD. I would say my favorite
movies from foreign are Telugu, Film Nagar, Hyderabad. I went
to school with Nagarjuna. I know Jagapathi. And these are my
friends. I love Hyderabad. I love Chennai. And I am very
familiar with your country.
I have also run businesses with Mr. Kalyani in Bharat
Forge, three factories for a joint venture in Pune.
I am familiar with your country. I love your country, and I
am hopeful with the new change in regime that the future and
the land of promise and the land of opportunity of India can
finally become so.
And I understand the complications of so many languages and
so many cultures and so many histories, all rolled up in one.
But this is an awesome country with awesome potential and
somebody that we need to be friends with and that we can trust,
not just for security, but what is also important to me is for
economic development. As was said earlier, technology and
technology protection is I think a big issue in that.
So, I am enthusiastic about working with you all, and
anything that I can do to make the relationship with India
better, I am willing and enthusiastic about doing so.
Thank you. I yield back.
Mr. Chabot. Thank you very much.
I will now introduce the panel, the distinguished panelists
this afternoon, both of whom really need no introduction, but I
am going to do it anyway.
Nisha Biswal was sworn in as Assistant Secretary of State
for South and Central Asian Affairs last October. Previously,
Ms. Biswal served as the Assistant Administrator for Asia at
USAID. During Ms. Biswal's tenure USAID reopened its mission in
Burma and transitioned its programs in various countries to
global partnerships in development cooperation. Ms. Biswal also
worked in the Office of U.S. Foreign Disaster Assistance and
the Office of Transition Initiatives, and served as Chief of
Staff in the Management Bureau while at USAID. Before USAID,
Ms. Biswal served as the majority clerk for the House
Appropriations Foreign Operations Subcommittee and as
professional staff for the House Foreign Affairs Committee,
where she was responsible for South Asia. Ms. Biswal has also
worked at InterAction and at the American Red Cross, where she
served as the International Delegate in Armenia, Georgia, and
Azerbaijan. And we welcome you back to the committee.
I would also like to introduce Arun M. Kumar. Mr. Kumar has
served as Assistant Secretary of Commerce for Global Markets
and Director General of the U.S. and Foreign Commercial Service
since March of this year. In this role, he leads the trade and
investment promotion efforts for the U.S. Government. Mr. Kumar
has extensive global experience in the business world. Prior to
his nomination, he was a partner and member of the Board of
Directors at KPMG, LLP. He led the firm's West Coast Management
Consulting practice, serving major global clients as well
emerging Silicon Valley ventures. He also found and led KPMG's
U.S.-India practice. Previously, Mr. Kumar was a Silicon Valley
entrepreneur and has acted as a mentor and advisor to several
new ventures in Silicon Valley and India. He has served on the
advisory councils at Stanford University and the University of
California, Santa Cruz, and he is on the Board of Directors of
the U.S.-India Business Council.
We welcome you here this afternoon, Mr. Kumar.
I know both of the witnesses are familiar with the
committee rules. You both will have 5 minutes. There is a
lighting system. The yellow light will let you know you have 1
minute. When the red light comes on, we would ask you to wrap
up as closely as possible. We do give a little leeway, but not
much.
So, Ms. Biswal, you are recognized for 5 minutes.
STATEMENT OF THE HONORABLE NISHA BISWAL, ASSISTANT SECRETARY,
BUREAU OF SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF
STATE
Ms. Biswal. Thank you very much, Mr. Chairman.
Chairman Chabot, Ranking Member Faleomavaega, thank you for
having this hearing and inviting me to testify today.
I want to just echo the sentiments on the dais about how
wonderful it is to see you again sitting on the dais, Mr.
Faleomavaega.
It is a wonderful time to have this hearing and an
important time to have this hearing. I am glad to be here with
my good friend Arun Kumar.
In the interest of time, I am going to summarize the points
which all of you have made so eloquently on the importance of
the relationship and the opportunity we have, and ask that my
full statement be entered for the record.
Mr. Chabot. Without objection, so ordered.
Ms. Biswal. Thank you, Mr. Chairman.
There is no better time than now to reexamine the U.S.-
India relationship. The historic elections, as you have noted,
this spring conferred an unprecedented mandate on Prime
Minister Narendra Modi and his party, and also created an
historic opportunity for the United States and India to re-
energize our relationship.
Deputy Secretary Bill Burns and I traveled to New Delhi 2
weeks ago to meet with Prime Minister Modi and key members of
his cabinet. Secretary Kerry will travel soon to India to co-
chair the next round of our Strategic Dialogue, and he will be
joined by Secretary of Commerce Pritzker in underscoring the
vital role of our economic partnership.
Mr. Chairman, the Obama administration's rebalance to Asia
is a strategic bet on the consequential role of Asia's 4.3
billion people in the 21st century and Asia's growing
importance to America's security and prosperity. But, for Asia
to comprise 50 percent of global GDP, as many project, its
citizens and governments must make the right choices to foster
sustainable and inclusive growth, to promote open and free
trade, and to combat terrorism and extremism.
In all of these areas, India has a vital role to play. Its
rise as a regional and global power, its economic and strategic
growth are deeply in the U.S. interest, as has been noted by
members on the dais. Like the United States, India increasingly
sees its future in a secure, connected, and prosperous Asia
Pacific. We not only share democratic values, but also a deep
interest in a peaceful and rules-based order.
But, if India is to achieve its potential, it will need to
address myriad economic and governance challenges. Much of the
excitement that the new Modi government has generated in India,
around the world, and, most notably, in the business community,
has been around this idea of accountable and effective
government that can unleash India's economic potential.
While my colleague will discuss our economic and trade
partnership in greater depth, I just want to underscore that
our economies, our businesses, our universities, and our people
can partner in helping India realize sustained and inclusive
growth and enjoy a vision of shared prosperity.
Our trade has already grown fivefold since the year 2000 to
almost $100 billion annually. We can grow that fivefold again
in the years to come. And we are committed to addressing the
inevitable frictions over trade through dialogue and
engagement.
Our energy cooperation, one of the brightest areas of the
partnership, is helping India meet its growing energy needs and
creating opportunities for our businesses through contracts for
export of American LNG and fulfilling the promise of delivering
cutting-edge nuclear energy technology, as well as
collaboration on clean energy solutions.
But, as I noted at the outset, the locus of our convergent
strategic interests is across the Asian landscape. When Prime
Minister Modi invited regional leaders to his inauguration, he
demonstrated his commitment to strengthening India's ties
within its immediate region. And we see a partnership with
India that spans east, west, north, and south, to advance our
shared interests across the Indo-Pacific Region.
Our collaboration on counterterrorism and homeland security
has grown tremendously in the past several years and has
already helped to bring to justice several of the terrorists in
the Mumbai attacks. We are committed to further strengthening
this robust cooperation in order to protect both our nations
and both our peoples.
Defense cooperation continues to play a vital role in our
partnership, which Secretary Hagel's visit to India in early
August will help to underscore. The breadth and depth of
military exchanges and exercises have grown tremendously, and
the Indian navy is participating in the RIMPAC Maritime
Security Exercise in Honolulu for the first time this year.
Additionally, as we speak today, we have begun our joint
naval exercise, the Malabar, and this year, also, with the
participation of Japan, this is a great example of our
trilateral cooperation and a manifestation of the U.S.-India-
Japan trilateral dialogue.
These military ties are complemented also by our growing
defense trade. We are overcoming bureaucratic hurdles and
paving the way to increase defense trade and potential for co-
production and co-development.
Mr. Chairman, the true potential of this relationship was
best characterized by Prime Minister Modi himself when he said
to us 2 weeks ago that it is not just benefits to the Indian
people and the American people, but that the true value of the
U.S.-India relationship is that, when the world's oldest
democracy and the world's largest democracy come together, it
is the world that stands to benefit.
We deeply appreciate the strong support of the U.S.
Congress and of this committee as well as members in the Senate
and the House and the Indian Caucus in advancing the U.S.-India
partnership. We look forward to closely collaborating with you
in the years ahead, as we forge an ever-increasingly closer
partnership between our two countries.
Thank you, Mr. Chairman, and I will conclude my remarks
here and look forward to answering any questions that you or
the committee may have.
[The prepared statement of Ms. Biswal follows:]
----------
Mr. Chabot. Thank you very much.
Mr. Kumar, you are recognized for 5 minutes.
STATEMENT OF THE HONORABLE ARUN KUMAR, DIRECTOR GENERAL OF THE
U.S. AND FOREIGN COMMERCIAL SERVICE AND ASSISTANT SECRETARY FOR
GLOBAL MARKETS, INTERNATIONAL TRADE ADMINISTRATION, U.S.
DEPARTMENT OF COMMERCE
Mr. Kumar. Chairman Chabot, Ranking Member Faleomavaega,
and members of the subcommittee, thank you for the opportunity
to speak about the Department of Commerce's engagement with
India. I am honored to be here alongside my friend and
colleague from the State Department, Assistant Secretary Nisha
Biswal.
The Department's International Trade Administration is the
agency responsible for promoting U.S. exports, expanding
markets overseas, and enforcing U.S. trade laws. Our efforts
are driven by the needs of our primary constituency, the U.S.
business community.
In 2010, President Obama said the U.S.-India relationship
will be ``one of the defining partnerships of the 21st
century.'' While India is a large market, our commercial
relationship remains underdeveloped relative to its potential.
With the new government in charge, the timing may be right to
improve our bilateral trade relationship.
From 2000 to 2013, U.S.-India two-way trade has grown from
$19 billion in goods and services to about $97 billion. Having
recently returned from India, I will agree that the potential
is, indeed, vast.
ITA understands the value of exports and its direct
correlation to job growth. Our staff in 100 locations across
the country and in over 75 markets around the world is
dedicated to helping companies enter new markets and expanding
current ones.
In India, our staffing is currently strategically placed
with a total of seven posts, making it the largest footprint of
any ITA operation outside the U.S. Furthermore, ITA's Advocacy
Center, which coordinates U.S. Government commercial advocacy,
helps U.S. companies win foreign government contracts. Between
2010 and 2013, ITA recorded advocacy wins in India with
estimated contract values of $5.2 billion.
Another focus of ITA is to encourage inward investment, and
the Obama administration created SelectUSA, the only U.S.
Governmentwide program to attract, retain, and grow business
investment in the United States. In 2012, India's stock of
foreign investment into the U.S. totaled roughly $9 billion.
Last year we hosted the first SelectUSA Investment Summit, and
India was one of the largest delegations with 39 participants.
Based on the success of this event, SelectUSA is organizing a
second summit in March 2015.
Doing business internationally can be risky, and India
comes with its fair share of challenges. There are many areas
that hinder us from deepening our trade relationship with
India. U.S. companies need to be aware of these obstacles
before entering the Indian market.
These include protection and enforcement of intellectual
property rights, localization requirements, high tariffs, and a
difficult regulatory system that lacks transparency and
predictability. ITA works to resolve these issues in a variety
of ways.
First, we lead the public-private U.S.-India Commercial
Dialogue. The dialogue has been effective in facilitating
information exchanges between government and private sector
experts on standards and regulatory procedures.
Second, ITA chairs working groups on biotechnology, life
sciences, civil aviation, and infrastructure in the High
Technology Cooperation Group, led by Commerce's Bureau of
Industry and Security.
We also support the State Department and USTR in the
technical discussions on a U.S.-India bilateral investment
treaty.
ITA also organizes trade missions and trade events,
provides market research, counseling, and customized support to
companies looking to export to India. In 2015, the Department
is organizing a trade mission to introduce U.S. firms to
India's rapidly-expanding ports and marine technology market.
On the domestic side, ITA ensures U.S. companies enjoy fair
competition here at home. Our agency is responsible for
administering the U.S. antidumping and countervailing duty
laws. As of today, we have 22 orders in place against a variety
of Indian products.
As I have expressed throughout this testimony, the United
States remains actively engaged in India. The Commerce
Department and ITA will continue to expand our contacts with a
new government in New Delhi, the state governments where so
many decisions are now made, and with U.S. and Indian
businesses in order to promote exports of U.S. goods and
services.
Today we just announced that Secretary Pritzker will be
joining Secretary Kerry at the upcoming U.S.-India Strategic
Dialogue scheduled for July 31 in Delhi. We will use this
meeting and other opportunities to grow our commercial
relationship.
Thank you for the opportunity to speak with you today. I
will welcome your questions.
[The prepared statement of Mr. Kumar follows:]
----------
Mr. Chabot. Thank you very much. We appreciate your
testimony. Members will have 5 minutes now to ask questions,
and I will begin with myself.
Ms. Biswal, Secretary Kerry is scheduled to represent the
U.S.-India Strategic Dialogue next week. As you are aware, in
the past this dialogue has faced some challenges. Can you tell
us what issues Secretary Kerry plans to discuss and how the
administration will use this opportunity to engage with the new
Modi administration on longstanding challenges in our trade and
security relationship?
Ms. Biswal. Thank you, Mr. Chairman.
We do see a very important opportunity in the Strategic
Dialogue which will take place in New Delhi next week to be
able to relaunch the relationship and, also, put some
extraordinary focus on some of the key opportunities, certainly
the economic relationship and reinvigorating the trade and
investment, looking at some of those issues, but also looking
at energy cooperation, including civil nuclear energy, looking
at the security relationship and counterterrorism.
And then, we will have a visit shortly thereafter by
Secretary Hagel to look at the defense relationship and also
put some emphasis on where we want to go together in that
aspect of the relationship.
We also see a tremendous opportunity to engage with India
on the region and looking at the transition in Afghanistan,
looking at the broader Asia landscape, the relationship, and
the trilateral dialogue that we have with Japan, and to focus
on all of the different aspects of U.S. and India across the
Asian landscape. So, we look forward to jump-starting all of
those conversations during the Secretary's visit next week.
Mr. Chabot. Thank you very much.
Let me follow up, Ms. Biswal, on another issue. New Delhi
has given Russia's aggression in Crimea implicit approval and
strongly opposed sanctions on Moscow, calling Moscow's interest
in Crimea ``legitimate.'' Can the U.S. trust India to be a
reliable partner on significant geopolitical challenges, if for
example, we can't get India's support on this growing crisis?
And has the Malaysian airliner shootdown changed India's
attitude at all in this particular area?
Ms. Biswal. You know, I think that is an important issue
and an important question. Clearly, India has its own history
and its own relationships that guide its foreign policy. But
our belief is that the more that we are able to closely consult
on these critical issues and challenges that we face around the
world, that we hope that we can bring closer together our
perspectives and align efforts as much as possible.
We do make the point to our Indian colleagues, as we do to
friends around the world, about our perspectives, particularly
with respect to Russian aggression in the Ukraine and the
implications that that has. And we will continue to have those
conversations with India and with other partners around the
world.
Mr. Chabot. All right. Thank you. As chair of this
committee and as a Member of Congress, I would consider myself
to be very pro-India, but their attitude on this matter with
respect to Russia is very disappointing to say the least. I
think a lot of other members would probably agree on that.
Mr. Kumar, let me turn to you now. I only have 1\1/2\
minutes left. But the High Technology Cooperation Group,
chaired by the Department of Commerce, is dedicated to
promoting and facilitating bilateral high-technology commerce.
Still, many U.S. businesses are facing severe barriers, such as
patent revocations and compulsory licenses and copyright piracy
and local manufacturing requirements, as I mentioned in my
opening remarks. Has the Department of Commerce used this forum
to address any of these issues to date? And could you comment
in general on those issues?
Mr. Kumar. Mr. Chairman, we use various conversations,
various forms to address exactly these issues that concern our
exporters, issues of intellectual property protection,
localization issues, where our point of view is that India will
actually do better by focusing on having competitive
manufacturing as opposed to forcing localization. So, these are
all topics that we discuss with them all the time, including
during my visit last week.
Mr. Chabot. Okay. Thank you. Thank you very much.
I am going to stop at that point. I have a little bit of
time left. But I am going to now recognize the gentleman----
Mr. Connolly. Mr. Chairman, would you yield in your 25
seconds?
Mr. Chabot. I will be happy to.
Mr. Connolly. I want to just totally associate myself with
your remarks with respect to the Crimea. And I have to say to
the Assistant Secretary, I assume the United States' position
is this is sovereign territory that was illegally annexed by
Russia, and I hope that was clearly conveyed to the new Indian
Government. To me, this is not an ambiguous issue or something
subject to debate. It is the sovereign territory of the Ukraine
and remains so.
I thank the chair.
Mr. Chabot. I am happy I yielded to you.
The gentleman from New York, who is the ranking member of
the full committee, is recognized at this time for the purpose
of making a statement.
Mr. Engel. Well, thank you, Mr. Chairman. I will be very,
very brief.
First of all, I want to thank our two witnesses. Thank you
both for your service to our country. It is very much
appreciated.
To Mr. Faleomavaega, welcome back. It is good to see you,
Eni.
And let me just say that I feel so strongly about the U.S.-
India relationship. I was an original member of the India
Caucus back in 1990, when we formed it in Congress. And I have
often felt that it is a shame that the United States and India
through the years hadn't aligned itself more closely.
I know during the Cold War there were some difficulties
because India had a close relationship with the Soviet Union,
and that kind of made it difficult. But now I really think that
both countries should do whatever they can to work more closely
together. Our interests are aligned, whether it involves the
fight against terrorism or China's rise or just trade. I just
think it makes so much sense.
So, I wanted to thank you, Mr. Chairman, for holding this
important hearing today. And you can certainly count on me as a
friend of India. And I look forward when the Prime Minister
comes here in September to greeting him. I think his election
also presents us with a tremendous opportunity.
So, again, thank you. Thank you both, and thank you, Mr.
Chairman.
Mr. Chabot. Thank you very much, Mr. Engel.
I now recognize Eni Faleomavaega, the ranking member of
this committee, for 5 minutes.
Mr. Faleomavaega. Thank you, Mr. Chairman.
Secretary Biswal, welcome back. Thank you for being here
with us today. I have great hope that you will play an
important part to work together to restore our U.S.-India
relations.
Your background as a former professional staffer of the
House Foreign Affairs Committee and also the unique perspective
you have as a member of the Indian-American community I believe
is a long-awaited combination that will help bolster relations
that have lacked for too long.
Madam Secretary, what do you foresee in this
administration's top priorities for strengthening our U.S.-
India relationship?
Ms. Biswal. Thank you, Mr. Faleomavaega.
You know, for India to be the power and reach the potential
as a strategic power across the Asia region and across the
globe, its first order of business will be revitalizing its
economy. And we have a deep interest in partnering with India
in that quest and partnering with Prime Minister Modi in that
quest.
I think that Prime Minister Modi comes in with strong wind
at his back from the business community and confidence from the
investor community about the plans that he has outlined and the
vision that he has outlined for India's growth.
We think that the United States, that American companies
will bring a tremendous amount of technology and support to be
able to help that, and we look forward to doing that.
We also think that, as India's economy rises, that India
will be increasingly a consequential player across the Asia
region, and we think that that is aligned with our interests.
We have shared goals and objectives, and we like to see that
not only do we have shared goals and objectives, but that we
work closely together in achieving those goals, because we will
have far greater impact across the region and around the world
when we align and work together.
Mr. Faleomavaega. Secretary Kumar, your background is very
impressive. You come to us with extensive global experience in
the business world as an Indian-American financial consultant,
highly-regarded advisor, and a Silicon Valley entrepreneur.
You are also a poet. I love poems, too. My favorite poet is
Rabindranath Tagore.
Prime Minister Modi also is a poet, by the way. I believe
poets view the world in a rare and distinct way. From your
perspective, Secretary Kumar, both as a poet and as a business
leader, what initiatives do you think the United States
Department of Commerce should undertake to encourage private
sector investment and to advocate for better market access for
U.S. exporters?
Mr. Kumar. Ranking Member Faleomavaega, thank you very much
for that very interesting question, combining two different
sides of my life.
But let me address that really from the Department of
Commerce. We are very active in India with about 70 people on
the ground in seven offices, and we are focusing on areas that
are of importance to India as they revitalize the economy, to
use a term that my colleague has stated. So, our view is to
work with the Indian Government and the private sector business
in India and here to contribute to that journey.
Mr. Faleomavaega. I know my time is getting short, Mr.
Chairman, but it is certainly good to see Dana here with us
also.
You know, for the past years, I have always complained
about the fact that we did not seem to pay attention to the
Asia-Pacific Region from previous administrations. And I am
concerned about it even in this administration. The fact that
two-thirds of the world's population is in the Asia-Pacific
Region, the fact that our economic interests are just as
important and critical in dealing with the Asia-Pacific Region,
and I am very concerned.
I know my time is up, Mr. Chairman. Thank you. Appreciate
it.
Mr. Chabot. Thank you very much. The gentleman yields back.
The gentleman from North Carolina, Mr. Holding, is
recognized for 5 minutes.
Mr. Holding. Thank you, Mr. Chairman.
First, a housekeeping matter. Secretary Biswal, if you
could please outline what the State Department has been doing
with regards to the jailing of Amway CEO Bill Pinckney? I
believe he has been in jail now for 2 months and being held
without bail. So, if you could detail that concisely, please?
Ms. Biswal. Thank you, Congressman.
This has been an issue of very active engagement by the
State Department, by our colleagues in the Commerce Department,
and really across the U.S. Government. We have worked very
closely and intensively with our colleagues in the Indian
Government to address piece-by-piece all of the different
aspects that stand in the way in achieving bail, hearing, and
release on bail for Mr. Pinckney.
We think that, while there may be concerns that the Indian
law enforcement have, that no individual should be in jail for
2 months without bail. We think that that needs to be remedied
and rectified as soon as possible.
We believe we are making some tremendous progress, and we
hope that we will have some very good news on that front soon.
We have been working closely with our colleagues at Amway to
make sure that we understand all of that, as well as having
consular visits to Mr. Pinckney regularly by our Consul General
in Hyderabad to make sure of his welfare and make sure that his
needs are being addressed.
Mr. Holding. Good. Thank you. And if you could keep us
abreast of any developments in that, I would appreciate it.
Ms. Biswal. I would be happy to.
Mr. Holding. I will address this to both of you regarding,
first, to Secretary Biswal, what damage do you believe that the
denial of a visa to then-Chief Minister Modi and the subsequent
policy of the State Department that he has to apply in order to
find out whether he would be approved or denied again, what
damage do you think this has caused our relations with the
Prime Minister?
Now I realize that, as a matter of course, as Prime
Minister, he is granted a visa as a head of state to come here.
But I want to back up to the other issue of him as an
individual being not granted a visa, kind of left in this
limbo, especially considering the fact that he was cleared by
the Supreme Court of India of any of the allegations made
against him, which were the basis of the original denial of the
visa.
Ms. Biswal. You know, Congressman, I would say that the
administration is very much looking ahead, looking forward, and
looking to the future in terms of building a very strong
partnership with the Prime Minister and with his team, and
strengthening the relationship between the United States and
India. We think that we are on a path to do that.
The President called Prime Minister Modi on the day that
election results were announced and promptly established----
Mr. Holding. I realize that, but I don't believe the State
Department has changed its position that, if Mr. Modi were to
apply, he would have to apply for a visa to figure out if he
was going to get a visa as an individual. Don't you think there
ought to be an affirmative statement by the State Department or
this administration that they recognize that he has been
cleared of these allegations by the Supreme Court of India and
that is lifted?
Ms. Biswal. I would just note that when the President
invited Prime Minister Modi and welcomed him to come to the
United States, that he did so knowing that visa would be
granted for him to be able to do that. And we look forward to
that.
I think that we have always made clear for any individual
that visa issues are determined on a case-by-case basis. That
is not unique to the situation with the Prime Minister.
But we look forward to welcoming him here and----
Mr. Holding. I do believe it is unique with Mr. Modi that
he is the only individual ever to be denied a visa under the
particular clause that he was denied a visa under.
Ms. Biswal. And I would just say that, while that was the
incident that occurred in 2005, that since then there has been
no application and there has been no review or determination.
And so, there has been no hypothetical basis on which to make a
determination.
But we have definitively said that we welcome the visit of
the Prime Minister. And therefore, we don't believe that there
is any further issue to be addressed with respect to that. I
think the President has----
Mr. Holding. One final--and I will throw this out to both
of you--has there been any statement by the Modi
administration, by the Prime Minister himself or people in the
administration, about the intellectual property and any perhaps
changes to the intellectual property system in India to further
align it with our intellectual property protections here in the
United States?
Mr. Kumar. Congressman, I am not aware of any formal
statements yet, but we have had conversations in my visit last
week with a number of officials in the Indian Government about
this topic and about a need to have a constructive dialogue on
this topic.
Mr. Holding. Well, if you could prospectively maybe keep us
apprised of that, members of the committee who are also on the
Judiciary Committee and follow these intellectual property
issues closely, it would be helpful.
Thank you, Mr. Chairman. I yield back.
Mr. Chabot. Thank you very much. The gentleman's time has
expired.
The gentleman from California, Mr. Bera, is recognized for
5 minutes.
Mr. Bera. Thank you, Mr. Chairman.
In my opening comments, I talked about the time for
opportunity. As I think about the Indian-American community
here--and my parents immigrated here in the 1950s--in the past
decades the Indian-American diaspora has made remarkable
accomplishments here in America in a country of opportunity.
So, the excitement of the elections in India that occurred,
you feel that same ripple of excitement about the opportunity
to create this partnership. It is exciting. As the only Indian-
American Member of Congress, it is exciting to see two
Assistant Secretaries sitting there from the community. So,
this is a time of opportunity.
I do think the administration has reached out immediately,
has been very welcoming to the new Prime Minister, and really
does reflect that opportunity. And vice versa, Prime Minister
Modi ran on an agenda of reviving economic growth in India,
building infrastructure in India, and realizing India's full
potential as a partner.
And a partnership is a two-way street. So, I think we are
going to see a solid foundation. In the next 2 months it will
be exciting with three Secretaries visiting, Secretary Kerry,
Secretary Pritzker, and Secretary Hagel. I think that offers to
lay a foundation for this economic relationship and the
geopolitical relationship.
And then, that leads into the September visit of the Prime
Minister, and I am excited that I, along with our colleagues,
have really pushed the Speaker to extend an invitation to a
Joint Session of Congress, which I do think allows us to
continue moving forward.
My questions, I think I will start with Assistant Secretary
Kumar. When I was in India last year talking to Indian
multinationals, and as they visit here in Washington, DC, an
untold story is the Indian foreign direct investment here in
the United States and the jobs that those create.
With the energy renaissance we are seeing here in the
United States, many of the Indian companies that are
manufacturing products to sell here in the domestic market
really see an opportunity to make those investments and build
those factories here in the U.S. From your perspective, what
should we do to set the table for more of that foreign direct
investment?
Mr. Kumar. SelectUSA is a program that I mentioned. We are
very active in India in promoting investment from India into
the U.S. The current level of investment from India to the U.S.
is about $9 billion. This covers a wide variety of industries.
In fact, just to mention one from your State, we have a
company that recently invested to build an electric two-
wheeler. It was developed in Palo Alto, and it is going to be
manufactured in Ann Arbor, Michigan.
Another example from the State of North Carolina is an
Indian textile company is creating a unit in North Carolina
that will create jobs in North Carolina.
So, we are very encouraged by the interest of Indian
companies. As they go global, they see the U.S. as the best
place to invest. They see the U.S. as a place that provides a
global platform to go to other countries. And I am looking
forward to seeing more investment from India.
This coming week, in fact, next week, before we go to
Delhi, before Secretary Pritzker goes to Delhi for the
Strategic Dialogue, she lands in Mumbai and will have a signing
ceremony for an agreement with the Ex-Im Bank of India for them
to support Indian companies investing in the United States. So,
this is a great example of two-way economic relationships.
Mr. Bera. Absolutely. And from our perspective, you know,
when we look at India's demographics, it has a very young
population. I think one of the assets we have is our system of
higher education, our system of community colleges.
And maybe I will direct this question to Assistant
Secretary Biswal. I think there is a very real opportunity for
our institutions of higher learning to help develop a similar
system in India to educate/train that workforce to realize a
very unique asset to India.
Your thoughts?
Ms. Biswal. Absolutely, Congressman. I would just note on
your previous question I just want to make the comment that
Indian investment in the United States has also resulted in
over 100,000 jobs in the United States. So, I think that that
is a powerful example of the two-way trade and the two-way
benefits of this relationship.
With respect to skills in higher education, this is a big
priority for the Modi government. The Prime Minister raised
this in his meeting with Deputy Secretary Burns. It is an
active area of engagement through our higher-education
dialogue. We are looking at not only how U.S. institutions of
higher education, our universities, can partner with India,
both in terms of Indian students studying in the United States
as well as opportunities to expand access to education in
India.
The other major aspect that we are looking at is a
community college initiative, how the very excellent community
college system in the United States, which really expands
access to higher education to so many millions of Americans,
how that system can also partner with India to advance access
to vocational education and skills for an Indian workforce that
is increasingly going to be needed for India's economy to grow.
Mr. Chabot. The gentleman's time has expired.
The gentleman from Florida, Mr. Clawson, is recognized for
5 minutes.
Mr. Clawson. Having invested tens of millions of dollars in
India myself, I have a little bit of understanding of your
challenges and the opportunities. I always felt glad that I had
a good partner, Bharat Forge, because India scared me. The
bureaucracy scared me. The regulations scared me. The currency
controls didn't even seem fair. The import tariffs didn't seem
fair. It felt like my capital could flow in, but my profits
could not flow out. And it felt like product from India can
flow out, but product into India cannot flow in easily. In
today's world where capital generally has no barriers, it
didn't feel like a totally modern system. And so, therefore, I
was glad that I had a very good partner who could help us
through it. Otherwise, we may not have made the investments.
As I see a new regime take hold in India, one who feels at
least at the start to have a modern view of the world and a
modern view of accounting, is this administration now committed
to eliminating some of the currency regulations, import
barriers, bureaucracies, and controls that make business one-
sided and difficult for those that want to invest?
Mr. Kumar. So, Congressman, this is an important topic for
us. I was in India, as I mentioned, last week meeting with
officials, which was the first time we were meeting with the
new government. And in all our conversations we talked about
the importance of a new business climate, a climate that
addresses exactly those kinds of issues that you talked about.
India is interested in more investment to create jobs, and
these are exactly the kinds of points that we will be making in
our conversations with the Government of India and with the
private sector and other stakeholders in India.
Ms. Biswal. So, I would just add to that to say,
Congressman, that while we see some very hopeful signs, and the
budget that was put out, the interim budget that was put out by
the new government, was certainly a step in the right
direction, that this is going to be a process that is going to
have to unfold. And so, we look forward to continuing to see
what steps the government takes to liberalize its economy and
to attract greater trade, greater investment, which are all
their stated objectives.
Mr. Clawson. I am glad that India companies invest in the
United States, and only private investment produces good-paying
jobs. Governments do not. And capital votes by walking.
And so, therefore, I would just like American businesses to
have the same fair shake in India that Indian businesses have
here. That has been the ongoing relationship that will be of
interest to me, because I think fairness for our country--our
trade deficit is hundreds of billions of dollars. And some of
that is artificial and it doesn't have to be there.
So, just as your capital is welcome here to produce good-
paying jobs in the U.S., I would like our capital to be welcome
there, and there to be freedom of capital, so that both sides
are on the same territory. And I ask cooperation and commitment
and priority from your government in so doing. Can I have that?
Ms. Biswal. I think your question is to the Indian
Government, and we certainly share your sentiments. We
certainly will advocate that on behalf of the U.S.----
Mr. Clawson. Of course. And I am asking your opinion of how
they view that.
Ms. Biswal. Like I said, I think we have heard a lot of
very positive signals, a lot of positive intentions, and we
will be engaging both through the State Department, through the
Commerce Department, through our USTR, through our Treasury
Department, to make sure that we are engaging on those issues
and looking for the concrete steps forward.
Mr. Clawson. Okay. Let's see some progress.
Ms. Biswal. Absolutely.
Mr. Chabot. The gentleman is finished?
Mr. Clawson. Yes.
Mr. Chabot. Okay. Thank you very much.
Mr. Clawson. I yield back.
Mr. Chabot. The gentleman's time has expired.
I assume that the members heard the bells ringing, but we
just have two more members. So, we should be okay with 5
minutes each. The gentleman from the Commonwealth of Virginia,
Mr. Connolly, is recognized for 5 minutes.
Mr. Connolly. I thank my chair.
And I would just say to our newest colleague, I would be
glad to take you to my district. Government does create high-
paying jobs. The three wealthiest counties in the United States
are the wealthiest counties in the United States; they are all
in Northern Virginia. Two of them are in my district. And it is
because of the unique partnership between the Federal
Government and the private sector in high tech, R&D, and
defense contracting. The government most certainly does create
good-paying jobs, at least in my part of the world. It isn't
just the private sector.
I might also add that an awful lot of what has transformed
the world was entirely a government investment. The idea that
the government can do nothing right is nonsense. Look at GPS
technology, 100 percent a Federal investment; the internet, 100
percent, called DARPANET, for 25 years a government-funded
investment, not a dime of private sector investment. And it
transformed the world.
This notion that somehow the government can't do anything
right or, you know, it needs to just get out of the way, is not
true. And at least my private sector and my chambers of
commerce recognize how valuable and vital that partnership is
here in America, and I assume it is also true in India.
Ms. Biswal, I wanted to give you a chance because,
unfortunately, I took advantage of the 25 seconds left to the
chairman. You wanted to comment on Crimea, and I wanted to give
you that opportunity.
Ms. Biswal. Only, sir, that we certainly agree
wholeheartedly with your characterization and we continue to
engage with our Indian friends to ensure that they understand
our perspective. As I said, we strive to continue to bring our
perspectives closer in alignment.
Mr. Connolly. Thank you. I wanted to give you that
opportunity and I appreciate it, especially since you had the
good sense to go to the University of Virginia and you were a
staffer. I, too, was a staffer.
I also want to identify myself with the remarks of Ami
Bera, my good friend from California, who talked about the
U.S.-India relationship perhaps being the defining relationship
of the 21st century. I couldn't agree more. I think that India
is such an important potential partner, and we with India. I
think it is actually potentially much more important than the
Chinese relationship.
We have lots in common. You know, we share a lot of
language together. We have many common values. We certainly
share democratic values in common.
And I wonder if either of you would like to comment on
that, because I think there are lots of prospects and I am very
hopeful that, with the Modi visit here to Washington, we can
cement some of those values and those relationships to move
forward.
Ms. Biswal. You know, fundamentally, India's rise and
India's democratic growth, democratic development, is a very
important aspect not only in terms of what it represents in
terms of opportunities for partnership, but it is also very
important in terms of the example that it sends to the other
emerging and developing economies around the world that
democratic development does result in strong growth, inclusive
growth, and opportunities for these countries. And I think that
India represents that, and India's success with that model is
very much in the U.S. interest and that defines in many ways
the core values of our partnership.
Mr. Connolly. Mr. Kumar?
And then, Mr. Chairman, I am going to yield the balance of
my time to Ms. Gabbard.
Mr. Kumar. Yes, I would just reemphasize the importance of
India's growth to our people. If you look at the last few
years, U.S. exports stagnated when India's growth stagnated.
Years before that when India was growing, when it even passed
double digits, U.S. exports to India grew significantly. So, we
are very aggressive in India's growth because that directly
helps our people here who can export more, and we create jobs
as a result here.
Mr. Connolly. Thank you. And I yield the balance of my time
to Ms. Gabbard.
Mr. Chabot. The gentlewoman from Hawaii is recognized.
Ms. Gabbard. Thank you very much, Mr. Chairman, Mr.
Connolly.
Thank you both for being here. It is great to see you, as
always.
I will keep this brief. A lot of great points have already
been brought up. My questions will really be more on the
opportunity for us in the security partnership front with
India.
I think that recognizing the opportunity that exists with
this change of leadership in India must be seized by us in a
way that is very proactive and sensitive to what has occurred
in the past, and done in a way that India understands that we
greatly value the opportunity for both of our countries as we
move forward.
I am wondering if you can just speak a little bit about
what the security cooperation is that we look forward to
achieving, especially as we look at all of the things that are
happening in the world and different relationships, but
especially as we look at Afghanistan and the path going
forward, and India's vested interest in the region, but also
India's current presence already across the country of
Afghanistan.
Ms. Biswal. Thank you, Congresswoman.
What I would note is that, shortly after we have the
Strategic Dialogue, Secretary Hagel is also looking to go to
India in early August. One of the key objectives there is to be
able to engage with the Indian Government to map out their
priorities in terms of where they want to see the defense
partnership go and what we see as the potential, both short-
term and long-term, for that relationship.
This is a defense partnership that has seen tremendous
growth over the past decade, and we do more military exercises,
for example, with India than with virtually any other country.
Right now, as we speak, India is participating in the RIMPAC
exercises in Honolulu for the first time, and we have the
Malabar exercises, which are trilateral this year with India,
the U.S., and Japan.
We see great prospects for deepening that cooperation, but
we also see that, as India seeks to create a defense
manufacturing base and as India seeks to modernize its defense
sector, that the United States is going to play a critical
role. We seek to deepen that partnership, to look for
opportunities for co-development and co-production in that
range. Because as India's capacity grows, the ability of India
to be a force for stability and security across the Asia-
Pacific grows as well, and that is something that we very much
support.
With respect to Afghanistan, Congresswoman, we have very
close consultations with our colleagues in India about how we
see that transition in Afghanistan unfolding. We had an
opportunity to have some extensive conversations during the
visit of the Deputy Secretary 2 weeks ago. And I know that that
is a key aspect for the agenda for Secretary Kerry for his
visit next week. We will continue to look for ways that the
United States and India and the other countries in the region
can work together for stability and security in Afghanistan,
which is certainly in the Afghans' interest, but also in the
interest of all the countries of the region.
Ms. Gabbard. Quickly, and forgive me if you already talked
about this, but what are the prospects of the timeline like for
appointing a new Ambassador to India?
Ms. Biswal. Well, as you know, it is going through its own
internal process of the White House. This is a big priority for
the administration, for the President. And so, we hope that we
can conclude the internal process sometime soon, and then, it
will be with the legislative branch for Senate confirmation.
But this is a big priority. It was, therefore, a decision
of the administration to place Ambassador Kathy Stephens there
as charge'. She is one who brings great skill and experience
and expertise, and particularly her experience in East Asia as
Ambassador to Korea has been very welcome as well.
Ms. Gabbard. Great. Thank you.
Thank you, Mr. Chairman. I yield back.
Mr. Chabot. The gentlelady yields back.
I would like to thank the panel for their very excellent
testimony this afternoon. I would note that members will have 5
days to revise their statements or submit questions in writing.
And if there is no further business to come before the
committee----
Mr. Faleomavaega. Will the chairman yield? I'm sorry.
Mr. Chabot. Yes, I would be happy to yield to the
gentleman.
Mr. Faleomavaega. I just want to personally thank you
again, Mr. Chairman, for your leadership in having this hearing
today, and certainly thank our witnesses for coming. I look
forward to continuing a good working relationship with you, Mr.
Chairman.
Thank you.
Mr. Chabot. I am committed to that for sure.
And you are welcome.
Thank you.
We are adjourned.
[Whereupon, at 5:09 p.m., the meeting was adjourned.]
A P P E N D I X
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Material Submitted for the Record Notice
Prepared statement submitted for the record by the Honorable Edward R.
Royce, a Representative in Congress from the State of California, and
chairman, Committee on Foreign Affairs