America's Relationship with India: A Source of Security in Times of Turmoil

Imagine a country that declares its independence from Great Britain, forges democracy from diversity, enjoys robust economic growth, and emerges as a world power. You've just described the United States -- and modern India.
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Imagine a country that declares its independence from Great Britain, forges democracy from diversity, enjoys robust economic growth, and emerges as a world power.

You've just described the United States -- and modern India.

In the midst of near-double-digit unemployment, many Americans are anxious about any nation that competes for high-skill jobs. But, when it comes to creating jobs, resisting terrorism, and advancing human rights, US -- India relations should be regarded as an asset, expectant with opportunity, not a source of anxiety. Now is the time to broaden and deepen this mutually beneficial relationship.

Commerce Secretary Gary Locke's recent trade mission to India highlighted the economic advantages of an alliance between the world's two largest democracies. Secretary Locke was accompanied by executives from 24 American businesses including small and medium sized enterprises. Building on President Obama's very successful delegation to India in November, these visits are reaping rewards for American businesses and workers. Having accompanied both President Obama and Secretary Locke on each of their missions, I have personally witnessed their benefit in the increased awareness of and accessibility to US businesses in India. Most importantly, I have witnessed the impact of these trips on my fellow delegates, many of whom were visiting India for the first time, and the realization of their potential in the burgeoning Indian market.

During the President's journey, US companies completed more than $10 billion in business deals, supporting more than 50,000 American jobs at major employers. Following up on these gains, Secretary Locke's trade mission tackled tough issues, such as tearing down trade barriers in the advanced industrial sector. As these tariffs are reduced or removed, US companies are able to expand their exports to India -- and create good jobs here at home -- in cutting-edge industries: civil aviation, renewable energy, communications, information technology and defense and security.

These trade missions are bearing fruit because India's fast-growing market is increasingly receptive to American exports. For its first four decades after independence, India's economy was state-controlled and stagnant and it was considered a more challenging market to enter than China. But, following free-market reforms, including reductions in tariffs and taxes, India's economy took off at an ever-accelerating rate, most recently growing by 5.5 percent in 2009 and an estimated 9.7 percent in 2010. India now plans for nearly a trillion dollars worth of infrastructure upgrades to its roads, bridges, harbors, water treatment and power plants, opening up opportunities on an unprecedented scale. As I write this, our company's next generation, plasma gasification waste-to-energy solutions are being commercialized in India, both in thriving metropolitan centers and small villages without access to electricity. We are responding to a sharp growth in demand for power in India and a call by the Indian Government for 14,500 MW of added capacity from renewable sources by 2012. Competing and winning in a free market with US developed Intellectual Property, we are directly benefiting from the closer bilateral relations between the two countries.

And our experience is not unique. American exports are growing in tandem with India's economy, increasing by nearly 170 percent from 2005 through 2009 and amounting to nearly $50 billion in 2010. These exports are in sectors that help build America's future with well-paying jobs -- machinery ($2.3 billion in 2009), aircraft and parts ($2.3 billion), electric machinery ($1.3 billion), and fertilizers ($1.1 billion). Communities in this country with the largest exports to India include California ($2.2 billion) Washington ($1.8 billion), New York ($1.5 billion) and Florida ($1 billion). As exports continue to grow, those benefits will expand both within these communities and to other regions throughout the country.

With India's middle class expected to expand tenfold from 50 million to 500 million over the next 15 years, the potential market for American goods and services is extraordinary -- and exponentially increasing. This is especially important because in a Global Attitudes Survey, over 76 percent of Indians responded with a favorable view of the US. This goodwill is an amazing foundation that extends to American products and American culture. But we face unrelenting competition from China, Russia, France, Britain and other rivals who aggressively want to establish dominance in this growing market, too. The prize: hundreds of thousands of high-wage, export-based jobs

Our focus must be to innovate, compete and expand into this vast emerging market. Jobs created from an innovation economy provide stability and growth to the US and allay past concerns about issues such as outsourcing. And when domestic industries expand in India, we should recognize opportunity in their success, not view them as an opportunity lost. For example, India's vaunted software and services industry accounts for about $60 billion in aggregated revenue, and spending in these sectors is forecast to grow over 17 percent per year between 2010 and 2014. In the midst of one of the most competitive markets for software services, our company is gaining traction with its open source, real time situational awareness and Cyber security software solutions both in commercial and government markets. Innovation and pioneering technology are key differentiators in all markets, even those as competitive as India. Innovation is what has distinguished American IP in the past and has to be the foundation for our growth in the future.

In addition to the economic benefits, the American relationship with India is principally based on common interests and common values of free markets and trade. Unbeknownst to many, America is reaping the benefits of the newer phenomenon of growing Indian investments in the US. As Ernst and Young recently reported, Indian companies have increased their investments in the US by more than $20 billion over the past five years, supporting more than 65,000 jobs here in the US. That's not outsourcing that costs American jobs -- that's in-sourcing that creates American jobs.

Under Presidents Bush and Obama, our two nations have strengthened our strategic partnership and increasingly aligned our strategic interests; India, for example, is now the sixth largest bilateral aid donor to Afghanistan. Soon celebrating its 65th anniversary, India's democracy includes free elections, competing parties, lively media, and an independent judiciary. Meanwhile, more than 3 million Indian Americans, including two Governors, contribute to our own country, participating in our democracy and enlivening our economy.

At an event at our home last fall, President Obama eloquently discussed the indispensable nature of the US-India relationship in the 21st Century. The President postulated that the US relationship with India is an asset to be developed for the sake of American jobs and American businesses, American interests and American ideals. Americans from all walks of life can and should embrace India not only as a key partner in this recovery, but also as America's next great ally.

Rajeev Sharma is Chief Executive Officer of ABSi, a technology services and solutions company headquartered in Rockville, Md. ABSi also has offices in New Delhi, India.

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