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Prime Minister Narendra Modi with Cisco’s John T. Chambers, Microsoft’s Satya Nadella, Qualcomm’s Paul E. Jacobs and Google’s CEO Sundar Pichai during the Digital India dinner function in San Jose. Photo: PTI

Midway through his second visit to the US, Prime Minister Narendra Modi has already addressed three of the four major constituencies he planned to reach out to—at the bilateral, multilateral and Indian diaspora levels.

The fourth—the US leadership—is next in line, say analysts.

At the multilateral level, Modi addressed the United Nations (UN) General Assembly where he spelt out the need for “climate justice” and chaired a meeting of Brazil, Germany, India and Japan—four nations that have demanded a place for themselves as permanent members of a revamped UN Security Council.

Before leaving the US, Modi is also set to address a conference on UN peacekeeping—a global duty that is substantially underpinned by Indian contributions.

On the bilateral economic front, Modi has held meetings with key US business leaders, seeking and enlisting their support for his “Make in India” and “Digital India” campaigns.

That a number of chief executive officers (CEOs) in Silicon Valley are Americans of Indian origin helped Modi link up with the diaspora—the third key constituency that he has reached out to on all his trips abroad. Modi was set to address an audience of 20,000 people of Indian origin in California on Sunday.

The fourth constituency is the US establishment, and Modi will be meeting US President Barack Obama overnight Monday before heading home.

Former foreign secretary Lalit Mansingh noted that Modi’s six-day US trip had a multilateral component focused on key foreign policy issues such as the revamp of the UN Security Council, while the bilateral agenda with the US was tied to domestic economic issues.

“On the whole, the tenor of the visit has been positive,” Mansingh, also a former Indian ambassador to the US, said on Sunday.

 

Economy—the key focus area

Arriving in New York late on Wednesday after a brief halt in Ireland, Modi’s first engagements on Thursday were back-to-back meetings with the US business community aimed at burnishing the image of Asia’s third largest economy as an investor-friendly destination. Last week, the Asian Development Bank cut India’s growth projection to 7.4% for 2015-16 from 7.8% predicted earlier. And there has been criticism, albeit muted, that the Modi government, elected to office last May on a pro-jobs and pro-development platform, has been slow in putting in place measures that would spur the economy.

Among those who met the prime minister were Rupert Murdoch, chairman of News Corp.; Ajay Banga, president and CEO of MasterCard who also chairs the US-India Business Council; Marilyn A. Hewson, chairman, president and CEO of Lockheed Martin Corp.; Citigroup chairman Michael O’Neill; Boeing International president Marc Allen, and Goldman Sachs president Gary Cohn. These meetings came on a day the Indian government formally announced that foreign companies without a permanent establishment in India will be exempt from the minimum alternative tax, levied on profit-making entities that do not pay corporate income tax because of exemptions and incentives.

“The idea (behind the intensive engagement with the business community) is that while we have expanded in a significant way our political security and defence cooperation, we need to make enhanced effort in terms of expanding the economic engagement between the two countries,” India’s ambassador to the US, Arun Singh, told reporters last week.

“When President Obama had visited in January, the two leaders had declared a goal of taking our trade relationship to a level of $500 billion from the present level of $120 billion. So, it would be important to see what kind of new opportunities we can create in the economic sector and that is why an important part of Prime Minister’s engagement during his visit to the United States is certainly focusing on the economic sector,” Singh said.

If the emphasis of Thursday’s meetings was on investments and manufacturing, it was Digital India at the weekend, when Modi travelled to California. Digital India is the Prime Minister’s flagship programme seeking to promote the use of technology to deliver governance and services. Those who met Modi included John Chambers, executive chairman of Cisco Systems; Paul Jacobs, executive chairman of Qualcomm who announced a $150 million investment in Indian start-ups; Satya Nadella, CEO of Microsoft; Sundar Pichai, CEO of Google; Shantanu Narayen, president and CEO of Adobe; and Venk Shukla, president and trustee of Silicon Valley at The Indus Entrepreneurs, a group representing tech entrepreneurs.

“Today, more than 15% start-ups in Silicon Valley are attributed to Indian-origin tech entrepreneurs. Therefore, this is an additional dimension to the potential for cooperation between India and the United States,” ambassador Singh told reporters, underlining the potential role of the diaspora in the digital India initiative.

Ahead of the meeting with the leading lights of the Silicon Valley, Modi received Tim Cook, CEO of technology giant Apple, and invited the company to start manufacturing in India under the Make in India initiative that aims to boost India as a global manufacturing hub. Modi also visited Tesla Motors Inc., which designs and manufactures premium electric vehicles on Saturday, a visit that underlined the India’s growing emphasis on renewable energy, including plans to generate 100,000 megawatts solar power by 2022.

“The Prime Minister heard them and their concerns. How he deals with the problems once he is back home is to be seen,” Mansingh said.

At the UN

At the multilateral level, Modi has had two major engagements. On Friday he addressed the UN General Assembly on the occasion of the world community adopting the Sustainable Development Goals that aim to reduce global poverty. The second was early Saturday when he chaired a meeting of the Group of Four (G4) countries—Brazil, Germany, India and Japan—that seek to become permanent members of the UN Security Council.

In his address to the UN General Assembly, Modi spoke of how many of the initiatives launched by the Indian government—financial inclusion, education and skill development and pension schemes for the vulnerable—mirrored the Sustainable Development Goals. With an eye on the Paris climate change conference scheduled later this year in Paris, Modi urged developed nations to transfer technology, innovation and finances to developing countries in order to tackle the challenge of climate change.

Highlighting India’s plans to produce 175 gigawatts of electricity by 2022 through renewable energy sources, energy efficiency measures, improving public transportation, cleaning up cities and rivers, and the waste-to-wealth project, Modi said: “The objective of our collective efforts is common but differentiated responsibilities.” The principle institutionalizes the idea that rich nations must bear historical responsibility for global warming and therefore must take the global lead in efforts to reduce carbon emissions that cause climate change.

“Climate justice” was appropriate to taking the concerns of the poor in sustainable development, Modi said.

Modi also used the UN platform to stress the need to reform the Security Council, seven decades after the body was constituted at the end of the Second World War. “We must reform the UN and the Security Council. This is essential so that the institutions have greater credibility and legitimacy. With a broad-based representation, we will be more effective in achieving our goals,” Modi said.

To drive the message home, Modi invited Brazilian President Dilma Rouseff, German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe to a summit level conference of the G4 countries pushing for the reform of the UN Security Council. The four countries support each other’s candidature for permanent membership of a reformed UN Security Council and, in a joint statement, sought such reform “within a fixed time frame”.

This is the first summit of the four countries in a decade and comes against the backdrop of the previous 69th UN General Assembly deciding earlier this month to begin negotiations based on a broadly agreed text on reforming the Security Council. “With this summit, I think the prime minister has underlined this as a key foreign policy objective,” Mansingh said.

Modi’s last few engagements on Monday include a meeting with President Obama in New York and a separate meeting of countries that send troops for UN peacekeeping missions.

Elizabeth Roche….www. livemint.com

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