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Another Kind of Asian Competition

With an election coming up, and India’s economy slowing and the currency falling (something that hurts many Indian companies who have borrowed in foreign currencies), the government is looking to juice the economy. To that end, an investment treaty with the US looks very attractive and seems to be in the works. By offering US investors and companies more security and predictability in the treatment of their Indian operations, the treaty should attract more capital and help both the currency and growth problems. Reuters reports that India’s Minister of Commerce and Industry Anand Sharma was hoping to boost trade to as much as half a trillion dollars annually, a five-fold increase from where things stand today.

Beyond that, India can’t help but notice that the US and China are also sitting down to negotiate an investment treaty—also good news, but India doesn’t want to fall farther behind China as a magnet for foreign investment.

Deepening economic ties between the two Asian giants and the US should remind us all that the goal of US policy in Asia isn’t to contain China or provoke rivalries. The United States wants the emergence of an Asia that is open to world trade and is rapidly growing and developing. The goal is to build deep ties between Asian nations and between Asia and the rest of the world. There is no better way to fight poverty and keep the peace. America’s bipartisan policy of peaceful engagement across Asia is one all Americans should support and can be proud of.

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  • Atanu Maulik

    As the wheels start coming off, that old “India Shining” bravado (“India masturbating” would have been more appropriate) is gone and is replaced by a sense of desperation.

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