Nisha Biswal is a firm believer in the power of the Indo-US partnership. She is the president of the US-India Business Council, having served in the key position of assistant secretary of state for south and central Asia in the Obama administration. An old India hand, Biswal believes that the India-US partnership has a great future. Trade problems may be at the heart of some issues, but they are resolvable. Secretary Pompeo was part of the USIB India Ideas Summit, where he laid out the contours of the relationship that India and America share. It was here that Pompeo endorsed the faith he had in the Modi government by saying Modi hai to mumkin hai. She spoke to THE WEEK at length, suggesting that it was important to look at the positives of the relationship. Edited excerpts:
How would you view Pompeo's visit to India, especially in the light of the escalating trade tensions?
I think it is a very positive sign that two weeks after the new government is sworn in, secretary Pompeo is meeting with his counterpart Jaishankar and the prime minister. I fully expect the leaders of the two countries to get an opportunity to meet and interact.
I think these are extremely positive signals and point to the fact that the US-India relationship is a priority for secretary Pompeo. He clearly has a lot of his plate now. The fact that he travelled to India prior to the G20 testifies that this is an important relationship and one the administration is invested in.
How do you see the tariff issue play out?
The overall goals and objectives of the prior administration and the current one are largely consistent. We have seen the US-India relationship continue to go down this trajectory—a deeper, closer, more convergent partnership in successive administrations. You are right to say that different administrations have different tactics and different approaches. President Trump tends to be much more focussed on some specific issues on the trade side, which he would like to see resolved. President Obama had other issues, including working with the prime minister on climate change and the Paris Climate talks. You will see these kinds of shifts and nuances in the relationship. I think this administration has also put great premium on the strategic relationship. We have seen advances in both directions. From the Indian side, you see the foundational agreements starting to come into play. From the US, you see high technologies being granted for fast-tracking technology access to India.
The US has been clear on the issue of India's S-400 deal with Russia. Do you see that as a point of tension?
When you start talking about very advanced technology—next generation technology platforms—from two countries that are adversial on their strategic interests, it then creates some incongruity that have to be worked through. By and large, the US-India diplomacy is convergent in the strategic and security area. But it does create challenges when you have an S-400 system, which is a very advanced Russian system. Can these two systems co-exist? We know that the US systems are not inter-operable with Russian systems. Can you protect the integrity of US technology when it is proximate to Russian technology? How do you manage that? Those are important questions that have to be worked through. I don't necessarily think that sanctions are the answer. On the other hand, as we look at much more advanced US technology going to India, we are going to have some clarity on how you reconcile these issues and still preserve the integrity of US systems.
President Trump has made trade a centre point of his relationship with the world, especially China. Could trade differences become an insurmountable factor?
No, I don't think they are insurmountable. I think the Indo-US ties have grown deeper and stronger including over the last three years. US-India trade has grown to $142 billion in two-way trade investment. This was significantly higher compared to five years ago when I was in government. We were talking about $100 billion. You see the US invest more in India and India invest more in the US. The more we do together, the more we are going to be able to identify areas of inefficiencies that are going to have to get worked out. Tariffs are an inefficiency in the global trade system in both directions.
India can do more to open its economy and make it more efficient for US investment to make its way to India. Meanwhile, we have cautioned the Trump administration against an over-reliance on tariffs as a tool to address trade barriers and trade issues. I think secretary Pompeo addressed optimistically at the India Ideas Summit that these issues can be resolved. My understanding is that there were conversations between India and US trade officials in recent days.
Do you think that Iran could be another source of tension?
The US had a very strong direction vis-a-vis Iran on nuclear and terrorism financing concerns. I think different administrations had different tactics on how to negotiate with Iran. I think the situation is fluid and dynamic. I think both the Trump administration and the Obama administration understood that India is navigating its own issues with Iran. We have had an open dialogue. I think that open dialogue has continued with the current administration and they are understanding and accommodating where necessary.
How do you see the upcoming meeting at G20?
I think that it is a very positive signal. I think the president's phone call with Prime Minister Modi was very positive. I think the two leaders would have much to discuss both in the strategic partnership, and the direction in which that is headed. Also, to create harmony on the trade issues so that we can unleash a much deeper trade partnership in the Indo-Pacific. There is so much that the US and India should be talking about, not just in bilateral terms, but in regional and global terms. So, it is better we can get some of these issues resolved so that we can move on to the agenda that benefits our two countries.