Prime Minister Narendra Modi is currently in the US for his first state visit to the country. His address to the US Congress on Thursday marked how the ties between the two countries have become stronger over the years. Apart from being hosted by President Joe Biden and First Lady Jill Biden for a state dinner, Modi has also had back-to-back engagements with top entrepreneurs, academicians and intellectuals. As the US attempts to close in on ties with India in an attempt to strengthen its presence in Asia and ward off the growing Chinese threat, here’s a lowdown on different facets of the growing partnership.
Political play
Modi’s visit comes at a significant time, a year before both countries are set to go to polls, inevitably creating interest in both countries. Biden’s approval ratings in the US have seen a drop and stand below 50% currently, while Modi continues to enjoy popularity back home. All the hullabaloo around the visit notwithstanding, Modi is unknown to the vast majority of Americans, with 40% saying that they haven’t heard of him. For those who have, the prevailing sentiment is negative (37% have little or no confidence in his ability to do the right thing on world affairs), according to Pew Research Center.
Defence heft
Defence deals and technology transfer are on the top of the agenda during Modi’s visit. The US is a key partner as India tries to diversify its sources of procuring arms. Russia has remained the top arms seller to India, providing 45% of arms deliveries between 2018 to 2022, but its share has fallen from 64% during the previous five-year period, according to data from Stockholm International Peace Research Institute. The US accounted for 11% of imports. Expect growing talk of defence ties.
Rising trade
Trade is another area of focus in the Biden-Modi talks. The US continues to be India’s top trading partner and we maintain a trade surplus with the world’s biggest economy, with exports outstripping imports. However, last fiscal, India’s imports shot up 16%, compared to a mere 3% on-year growth in exports. With global headwinds impacting exports, will the visit help lay the base for strengthening trade with the country?
Top talent migration
India has also been a source of top talent to the US as thousands migrate each year in search of better education and job prospects. Indians are the biggest recipients of the H-1B work visa given to high-skilled workers, and represent the second largest US immigrant group, after Mexicans and ahead of Chinese.Unauthorized immigrationof Indians to the country has also been in the spotlight recently.
Diaspora matters
The Indian diaspora is among the most influential globally, powering several US companies, entering the US Congress, and featuring among the highest-earning migrant groups in the country. The diaspora is also seen as ardent supporters of Modi. Plans are afoot for a grand outreach on 23 March at the Ronald Reagan Building in Washington, DC. Will the outreach build into his support base even further?
Download The Mint News App to get Daily Market Updates.
Updated: 23 Jun 2023, 01:41 AM IST