MOSCOW, September 29 (RIA Novosti) - Leader of the world’s largest democracy, Indian Prime Minister Narendra Modi, spoke out Sunday at Madison Square Garden, having addressed the audience of 20.000, as well as the US government and investors and the folks back home.
The newly-elected leader of India stated his country is now intended to strengthen ties and deepen cooperation with America, as quoted by the Economic Times of India. This means that all the recent speculation around possible benefits of such multilateral projects as BRICS don’t seem to appeal to the world’s second-largest nation, as reported earlier by the Diplomat.
India was badly shaken by economic turmoil in early 2014, as stated by the Economic Times of India. The large and widening current-account and trade deficits, the weakness of national currency, low investment inflow and only a rudimentary national manufacturing sector have all become contributing factors to the disorder in the India’s economy this year. As the nation was headed for the largest-scale democratic elections in the world this May, Mr.Modi went on to win on the promises of economic rebound and prosperity.
Mr. Modi’s recipe to get India’s economy back on track is based on the assumption that greater influx of investment will allow India to create manufacturing industries able to satisfy domestic consumer demand, reports Bloomberg. That is where the Indian Prime Minister sees the main source for economic growth back at home.
“America is the oldest democracy in the world, while India is the largest”, Mr.Modi stated, as quoted by the Economic Times of India in an attempt to win the trust of the US.
Mr. Modi is meeting with Obama and top administration officials Monday and Tuesday in Washington, as reported by Bloomberg. The Washington Post suggests that the two leaders are likely to discuss the long-overdue bilateral investment treaty, as well as cooperation in science and tech, aerospace and environment. In order to increase India’s appeal for the American capital, Mr. Modi in his Garden speech has introduced a plan of domestic economic reform.
Indian economy will grow very fast soon, Modi promises, because the government is determined to actively assist the growth by easing visa policies and updating legislative regulations among the plenty other measures, as cited by the Economic Times. The competitive edge of India , according to Modi, is the so-called “3D mantra”: “democracy, demographics and demand”. This implies that India’s political system ensures a more transparent business environment than most other parts of world; the nation provides cheaper workforce; while the extensive domestic demand will ensure no industrial enterprise will be unprofitable in India no matter what, The Economic Times of India reports.
Indian prospects for American businesses are also bright in Mr.Modi’s speech. But what’s in it for the US political leadership? The Washington Post suggests that deepening America’s collaboration with India would obviously not please such important partners of the US as Pakistan and China, who both have long been Delhi’s main rivals. However, the Prime-Minister of India has something to offer in order to sway the US political considerations in his favour. Mr. Modi's comments are the clearest sign yet that the Indian leader intends to throw in his lot with Japan, according to the Wall Street Journal. India’s commitment to security partnership with Japan would embolden the US position in the region.
Mr. Modi is intended to deepen the US-India security cooperation in order to well balance China’s ambitions, says Richard Fountain in his CNN op-ed. “Some — democracies such as India and Japan — believe in growing following the path of peace, the path of Buddha. But there are some other countries that are still pursuing the expansionist policies of the 18th century, encroaching on the land and in the waters of other nations”, the Prime-Minister of India said as quoted by the First Post.
While some experts note that Mr.Modi’s government has yet to persuade their American counterparts that India is intended to coherently follow the chosen political course, it is worth noting that a possibility of mutually beneficial cooperation of the two largest democracies in the world today seems more likely than ever.