US should incentivise India to open economy: US expert
Saying that strengthening Indo-US trade ties makes abundant economic sense, a US expert says the US can help India's growth by incentivising New Delhi to open up its economy.
"Within a generation, India will likely become one of the United States' most vital diplomatic partners," said Daniel Twining, senior fellow for Asia at the German Marshall Fund of the United States in an opinion piece in the Wall Street Journal.
"As the US pivots toward Asia, India will prove more capable than any existing US ally in advancing interests from defeating terrorism to managing China's rise," he wrote noting "Already, Washington and New Delhi have developed a far-reaching strategic partnership centred on defence cooperation."
"In contrast, Indo-US economic relations remain underdeveloped, stymied by a lack of ision and Indian skittishness toward liberalization," Twining said suggesting, "A new trade and energy partnership could make up for lost time."
"To cement its burgeoning alliance with New Delhi, and to help India reform and grow, the US should offer the triple incentive of a free-trade agreement, assured energy supplies and membership in the Asia-Pacific Economic Cooperation forum (APEC)," he said.
According to Twining the "best way to elevate Indo-US relations above feuding bureaucracies is for top political leaders to set out a compelling aspirational goal and empower government institutions to deliver on it."
"Strengthening Indo-US trade ties makes abundant economic sense," he said citing the US National Intelligence Council forecasts that India will become the world's biggest driver of middle-class growth by 2030.
"India needs to grow very fast for a very long time to underwrite its security in a tough neighborhood, and to uplift more poor people than exist in all of Sub-Saharan Africa," Twining said suggesting, "The US can help by incentivising India to open up its economy."
(Posted on 27-03-2013)