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In India, Obama Aims to Improve Countries’ Ties Obama Clears a Hurdle to Better Ties With India
(about 11 hours later)
NEW DELHI — President Obama swept aside past friction with India on Sunday to report progress on climate change and civilian nuclear power cooperation as he sought to transform a fraught relationship marked by suspicion into an enduring partnership linking the world’s oldest and largest democracies. NEW DELHI — President Obama and his Indian counterpart broke through a five-year impasse on Sunday to pave the way for American companies to build nuclear power plants here as the two countries sought to transform a fraught geopolitical relationship into a fresh partnership for a new era of cooperation.
Kicking off a three-day visit rich in symbolism and pageantry, Mr. Obama emerged from hours of discussions with his counterpart, Prime Minister Narendra Modi, with what he called “a breakthrough understanding” to finally overcome years of deadlock that have prevented American firms from building nuclear reactors here, a key goal of the trip. Opening a three-day visit amid pomp and pageantry, Mr. Obama moved to clear away old disputes that have stalled progress toward an alignment between the world’s largest and most powerful democracies, a goal that has eluded the last three American presidents. Few obstacles to that have been more nettlesome in recent years than the deadlock over nuclear power.
The president and Mr. Modi also renewed a 10-year defense pact, agreed to joint military hardware production and resolved to work together to reduce the threat of greenhouse gas emissions on the world’s climate. But the climate agreement included mostly minor initiatives compared with the deal Mr. Obama made with China last November, and it was unclear whether American companies would that agree the nuclear pact offered sufficient protection from potential liability in the case of mishaps to justify the investment. “Today we achieved a breakthrough understanding on two issues that were holding up our ability to advance our civil nuclear cooperation, and we’re committed to moving towards full implementation,” Mr. Obama said at an appearance with Prime Minister Narendra Modi at Hyderabad House, the princely palace now used by the government. “And this is an important step that shows how we can work together to elevate our relationship.”
Still, the atmosphere of amity was palpable as Mr. Modi broke with protocol to greet Mr. Obama at the airport with a warm handshake and hug. During a later joint appearance before the news media, Mr. Modi referred to the president as “Barack” and thanked him for his “deep personal commitment” to their developing friendship. The details remained vague, and it was unclear whether the understanding would convince American companies, such as GE and Westinghouse, to invest in India’s civilian nuclear development. The companies had pressed India to rewrite its liability law, which Sunday’s understanding did not call for, and so they will have to judge whether it is enough to resolve their legal concerns. But the fact that both governments were willing to dispense with a dispute that has frustrated them since 2010 underscored the mutual desire to reinvent the relationship.
“It’s not surprising then that we had a friendship because hopefully we’re reflecting the values of our peoples,” Mr. Obama replied. “That affection can then be translated into specific actions.” Mr. Obama and Mr. Modi also renewed a 10-year defense pact, agreed to joint military hardware production and resolved to reduce the threat of greenhouse gas emissions to the world’s climate. The climate agreement included mostly minor initiatives, none of the scale of the deal that Mr. Obama struck in November with China. But American officials were encouraged that after years of India’s disavowing responsibility to help curb emissions, Mr. Modi told Mr. Obama that climate change was “an article of faith” for him and expressed determination to fight it.
Mr. Obama’s visit, his second as president, is a major event in India. Despite lingering distrust in many parts of the government, largely over Washington’s history of support for rival Pakistan, the United States enjoys widespread popularity among the general population. For weeks, the Hindi news media has dissected details of Mr. Obama’s planned visit, running half-page cutaway graphics of his limousine and airplane, and broadcasting a detailed report about his BlackBerry. A Hindustan Times report implored the first lady to “Please Dress Desi,” featuring a series of Indian designers offering to provide her with couture saris. The amity between the two leaders was palpable from the start as Mr. Modi broke with protocol to greet Mr. Obama at the airport with a warm handshake and hug. During their later public appearance, Mr. Modi referred to the president as “Barack” and thanked him for his “deep personal commitment” to their developing friendship. In a toast at a state dinner Sunday evening, Mr. Obama returned the favor, calling Mr. Modi “my partner and friend.”
Mr. Obama’s arrival was marred to some extent by his decision, announced just as he left Washington, to cut the visit short by several hours and skip a tour of the Taj Mahal in order to fly to Saudi Arabia to pay respects to the family of King Abdullah, who died on Friday. The cancellation of the visit to the Taj Mahal, India’s most iconic site, was seen as a disappointment here. “This new partnership will not happen overnight,” Mr. Obama said at the earlier appearance. “It’s going to take time to build and some patience. But it’s clear from this visit that we have a new and perhaps unprecedented opportunity, and deepening our ties with India is going to remain a top foreign policy priority for my administration.”
But Mr. Obama planned to pay homage to other cherished symbols of India’s status as the world’s largest democracy. Shortly after landing, he headed to Rajghat for a wreath-laying and tree-planting ceremony at the memorial to Mahatma Gandhi, the father of modern India. Mr. Obama’s tree was planted on the other side of a walkway from one planted by President Bill Clinton during his own visit in 2000. Mr. Obama’s visit, his second as president, is a major event in India. Despite lingering distrust over Washington’s history of support for rival Pakistan, the United States enjoys widespread popularity here. For weeks, the Hindi news media has dissected details of Mr. Obama’s visit, running half-page graphics of his limousine and airplane, broadcasting a detailed report about his BlackBerry and advising Michelle Obama on couture saris to wear.
On Sunday evening, Mr. Obama was to be the guest of honor at a state dinner hosted by Mr. Modi, who was returning the favor after a visit to the White House last September. On Monday, Mr. Obama will be the chief guest at the annual Republic Day parade marking the anniversary of the day India’s Constitution went into force, the first time an American president has been honored with that role. Mr. Obama’s visit was marred by his decision to cut it short by several hours and skip a tour of the Taj Mahal on Tuesday to fly to Saudi Arabia to pay respects to the family of King Abdullah, who died on Friday. But that was quickly set aside as Mr. Obama was welcomed with a red carpet, an honor guard and a 21-gun salute. He threw flowers on the memorial to Mahatma Gandhi at Rajghat. He and Mr. Modi took a walk through a garden and shared tea. And Mr. Obama was announced by trumpets at the state dinner.
The display of friendship stands in stark contrast to the state of the relationship just a year ago after the arrest and strip search of an Indian diplomat accused of exploiting a housekeeper in New York. Mr. Obama and Mr. Modi have made it a priority to move beyond that dispute, even though some advocacy groups fretted that meant Washington would turn away from serious human rights issues. Mr. Modi’s reference to Mr. Obama by his first name drew notice. “It’s never been done before in India, to my knowledge,” said Baijayant Panda, an Indian lawmaker. “This is clearly sending signals to a lot of people, a lot of heads of government that matter. It’s fairly common when Western heads of state meet, but I cannot recall an Indian prime minister calling an American president by his first name.”
Neelam Deo, a longtime Indian diplomat who now heads Gateway House, a foreign policy research organization based in Mumbai, said that Mr. Modi would distinguish himself principally by projecting a simple message about the United States. Still, the spectacle outweighed the substance in most cases. On climate change, India agreed to move to phase down hydrofluorocarbons, or HFCs, according to a treaty known as the Montreal Protocol. But more broadly, India set no specific goals limiting greenhouse gases, as Beijing did in November. India is the third-largest carbon polluter behind the United States and China but has resisted more aggressive measures, citing its need to lift hundreds of millions out of poverty.
“It is a moment where the coyness of the previous government has been set aside,” she said. “That is not his style. He is pretty explicit. I would say he has gone all the way to project the message — and there is nothing ideological about this — that the U.S. is the most important country in the world for us. It’s what we look for.” Instead, the two sides agreed to promote solar, wind and other clean energy, and Mr. Modi said he would support a global climate pact to be shaped in Paris by the end of the year. Mr. Modi said he felt no pressure to match China’s commitment. “Climate change itself is a huge pressure,” he said. “Global warming is a huge pressure.”
Foreign policy has been a central focus of Mr. Modi’s first months in office, although it was barely mentioned during his development-focused campaign last year. He has made it a priority to project a more forceful leadership role for India among its South Asian neighbors, challenging China’s growing partnerships with the leaders of Sri Lanka and the Maldives. Simultaneously, he is exploring deeper economic ties with China, though a visit from the Chinese president, Xi Jinping, was marred by tension over the disputed border between the two countries. The nuclear understanding may finally bring to fruition an agreement that President George W. Bush reached with India in 2006 to end a moratorium on sales of nuclear fuel and reactor components to India, stemming from its first nuclear test in 1974. The promise of a thriving new nuclear trade never materialized because of a 2010 Indian law that would hold American companies liable for accidents in a way that they said went beyond an international convention, a delicate issue in a country still scarred by the Bhopal chemical disaster 30 years ago.
Mr. Modi, who pays meticulous attention to the symbolic messages of high-level meetings, immediately made it clear on Sunday with his decision to greet Mr. Obama with an embrace that his relationship with the United States is a warm and trusting one. In the past, Mr. Modi has reserved such greetings for leaders who were trusted partners, like Japan’s prime minister, Shinzo Abe, and, more recently, Prime Minister Tony Abbott of Australia. Obama aides said Indian officials had provided reassurances that their liability law conformed to the international convention and that it should provide what one American official called “extra security” for foreign companies. Moreover, India indicated it would set up a government-backed insurance pool to cover some of the risk, but not all of it.
A breakthrough on the nuclear issue would provide both leaders a tangible achievement from the visit. Mr. Bush reached agreement with India in 2006 to end a moratorium that lasted decades on sales of nuclear fuel and reactor components while India in exchange would separate civilian and military nuclear programs and open civilian facilities to international inspections. American officials said they had also worked out an understanding of how to track American-provided nuclear materials, as required by law, despite Indian objections to what they considered violations of their sovereignty. Critics said it appeared Mr. Obama had given in on the tracking requirement. Officials denied that, but details of both agreements were scarce, and they still needed to be translated before being signed.
But the promise of a thriving new nuclear trade between the powers never materialized because of an Indian law that would hold American energy companies responsible for accidents. American companies sought more protection, while the Indian government argued that the American government should pressure the companies to invest anyway. Neither GE nor Westinghouse, both interested in the Indian nuclear market, said Sunday whether they found the accord sufficient. Daniel Roderick, the chief executive of Westinghouse, is in New Delhi to attend a business leaders’ meeting with Mr. Obama on Monday, but it was not known whether he had been consulted.
On climate change, Mr. Modi has already pledged that India will increase production of clean, solar-powered electricity to 100,000 megawatts by 2022, from 3,000 currently. The two leaders are working on an agreement under which the United States would help India cut its use of hydrofluorocarbons, or HFCs — a component in coolants in refrigerators and air-conditioners. Some analysts said the understanding sounded vague and inconclusive. “It’s a deal on principles rather than specifics, which as far as I’m concerned is not a deal at all,” said Abhijit Iyer-Mitra, a security analyst at the Observer Research Foundation in New Delhi. “A lot of it’s just, you know, blowing the trumpet.”
Absent a broader commitment to goals like those agreed to by China, Mr. Obama hopes to enlist Mr. Modi’s support for a United Nations climate change accord scheduled to be completed in Paris in December. Sujatha Singh, India’s foreign secretary, insisted that was not true. “Let me underline: We have reached an understanding,” she said. “The deal is done.”
While India is the third-largest carbon polluter after China and the United States, it has traditionally argued that it should not have to limit its production of greenhouse gases because it is a developing country that historically has contributed little to the long-term problem and has hundreds of millions of people to lift out of poverty. C. Raja Mohan, another analyst at the Observer Research Foundation, said it was significant because the issue had been stalemated for so long. “I think you’re now seeing what Modi said he would do,” Mr. Mohan said. “He is confronting issues head on. The traditional reluctance to be seen with the Americans is over.”
If Mr. Modi were to embrace the Paris process, the Obama administration and environmental groups have argued that it would be a significant shift that could build momentum for other countries to join the effort in a serious way. India is expected to issue a plan to reduce emission rates by June, and environmentalists hope that domestic backlash against urban pollution will pressure the government to be more ambitious, much as what happened in China.