[Modi Diplomacy] Part 3/4: USA Visit- Strategic, Economic, Energy agreements, outcomes

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Unacademy Plus Mrunal Economy for Prelims and Mains UPSC!
  1. Mind map: India-USA after Modi visit
  2. Strategic relations
  3. Economy and Trade
  4. Environment-Energy
  5. Space-Science-public health
  6. Overall
  7. Sidetopics
    1. Modi @Madison Square
    2. Modi reform: OIC, PIO, NRI
    3. Totalization pact with USA
    4. Why Modi did not pledge troops/jets against ISIS?
  8. Mock questions

Mind map: India-USA after Modi visit

Mindmap Modi USA visit

Strategic relations

Gang membership
  • Since 2010, Obama said he supports India’s entry to various non-proliferation regimes- Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement and the Australia Group
  • But this time he specifically said, India meets the requirements to join MTCR and NSG
  • Obama supports India as permanent member in UNSC. (although he keeps saying that since 2010 no solid steps taken.)
  • Both Agreed to dismantle terror and criminal networks like LeT, JeM, D-company, Al-Qaeda and Haqqani network. [Observe they specifically listed Dawood’s D-company.]
  • Asked Pakis to bring perpetrators of the 26/11/2008 terrorist attack in Mumbai to justice
  • Both will monitor citizens coming from conflict zones of Syria and Iraq. (because some of them may be terrorists in disguise).
  • Both to work for women empowerment in Afghanistan. Modi cautioned USA not to withdraw troops quickly from Afghanistan else ISIS story will repeat here as well.
  • Intelligence sharing against ISIS network.
  • Will combat fake-currency, narcotics, cyber-crimes, piracy.
  • Defense cooperation Agreement (2008): extended for another 10 years. Now it’ll expire in 2025. This was done after India increased Defense FDI from 26% to 49%
  • Will upgrade US-India Malabar naval exercise. (meaning perhaps larger deployments and/or regular participation from more countries.)
  • USA to help in India’s planned National Defence University.
  • Asked North Korea to denuclearize.
  • Trilateral discussion involving US-India-Jap. Foreign ministers.

Did not work out:

  • USA invited India to join war against ISIS, but India limited its help upto intelligence sharing.
  •  Indian cabinet yet to approve 15,000 crore rupee worth US defense deals involving
    • Apache attack helicopters
    • Chinook heavylift helicopters
    • Javelin Anti-tank guided missiles.

Economy and Trade: India-USA

Bilateral trade
present $100 billion
target= five times $500 billion (but no deadlines)

Joint vision statement called “Chalein saath, saath: Forward together we go”- Both will find mutually rewarding ways to collaborate in trade, investment and technology

  • Modi met top-US business leaders- assured them stable tax policies and reduced bureaucratic intervention.
  • Modi invited US businessmen to invest in India “Make in India”. (more in a separate article later about “Make in India).
  • India-US CEO forum will be re-invigorated.
  • USA will invest 41 Billion$ in India, in next 3 years.
  • Indo US investment initiative- using India’s Finance ministry and USA’s Treasury department. They’ll focus on infrastructure finance and capital market.
  • USA will help in 3 smart cities- Allahabad, Ajmer and Vishakhapatnam
  • PPP in Advanced manufacturing, starting from Early 2015.
  • USA to share best practices in rail Management.
  • USA via its New Silk Road and India-Pacific Economic Corridor, will help India get freer flow of commerce and energy with its Asian neighbors.
  • India pitched for totalisation pact for NRI contributions to US social security fund. but it could not be signed (more under sidetopic segment)
  • Agreed to resolve the stalemate in WTO-Bali summit’s trade facilitation agreement.
  • RBI and US Fed reserve will partner in oversight of financial institutions. So future financial crisis can be tackled in effective manner.

Energy and Environment

Nuke Energy

  • 2008: Nuke dead signed
  • 2010: Nuclear liability law in India. Foreign suppliers will have to pay money if nuke-disaster because of defective technology or equipment. As result, American nuke companies like GE and Westinghouse hesitant to invest in India.
  • 2014: Modi meet, new “contact group” setup, to solve the issue
PACE U.S.-India Partnership to Advance Clean Energy (PACE).
PEACE Promoting Energy Access through Clean Energy (PEACE)
UNFCC Both will work for post-Kyoto agreement at 2015 UNFCC summit @Paris, France.
Clean energy
  • $1 billion to purchase clean energy technology, especially solar.
  • US-India climate fellowship program.
  • MoU for $1 billion finance for renewable energy exports to India.
  • USA will be India’s partner country in Technology Summit in November 2014.
  • USAID will assist in Swachh Bharat Abhiyan WASH alliance- Water, Sanitation, and Hygiene (WASH) Alliance
  • USA will help setting clean water and sewage facility in 500 cities.

Public health, Science, Space

  • Ebola: India pledged 12 million USD to fight ebola. Joint training of personnel.
  • USA: will help reducing IMR, MMR in India.
  • India-US vaccin action Prorgam for dengue, malaria, TB.
  • Drug companies wanted Modi to make patent laws friendly to them. But Modi maintained- they should produce cheap-affordable drugs (rather than doing Patent “ever-greening” by slightly changing the composition of original molecules.)
SWAYAM Study Webs of Active-Learning for Young Aspiring Minds- online education program. Will offer post-graduation programs.
  • Global Initiative of Academic Networks in Higher Education. To collaborate between scientists an businessmen.
  • Every year, India will invite 1000 American academics to teach in Indian universities.
Space NASA-ISRO Synthetic Aperture Radar (NISAR) mission, to be launched in 2021. Separate article later.

Culture tourism

  • 2015: India introduces visa-on-arrival for U.S. citizens
  • Efforts to make United States’ Global Entry Program available to Indian citizens.

Overall: Modi USA visit

success failure
  1. Vowed to destroy LeT, Dawood’s D-company etc.
  2. Obama Specifically listed MTCR and NSG – where India is eligible to join.
  3. Defense cooperation agreement extended for 10 years.
  4. Contact group to finally sort out obstacles in nuke deal.
  5. Modi’s Meeting with Top 10 Business tycoons and 41 billion dollar investment promise.
  6. Modi managed to connect with NRI crowd at Madison square. Combined with Reforms in OIC, PIO, visa on arrival- So in future- tourism boost.
  1. While Obama has repeatedly accepted “India’s rise, economic prosperity, and contribution to regional and global peace,” but it did not lead to an upgraded relationship.
  2. Two years from now- new President will be elected (perhaps Hilary Clinton or Bobby Jindal) then   may be USA will change its mindeset.
  3. 2010: Obama visits India, says the same things- we welcome you @MTCR, UNSC etc. but no concentrate steps taken.
  4. Counterview: From American point of view: even after they got us NSG-waiver, their companies haven’t been able to reap benefits because of the nuke liability law. Hence once burned, twice shy of helping India.
  5. Special 301 report, WTO-TFA agreement issues unresolved.
  6. Defense purchase deal for helicopters and anti-tank missiles did not materialize.


Modi Address @Madison Square, New York

  1. Indian diaspora has earned a lot of respect and great identity for INDIA in the world.
  2. America is the Oldest democratic country and INDIA is the biggest democratic country
  3. USA has people living from all parts of the world and Indian people migrate to all countries of the world

We got three precious things

1.Democracy not just the biggest asset but a hope of 120 million people
2.Demographic dividend 65% population under 35 years age. But skill Development necessary
3.Demand world sees India as a big market for manufacturing and consumption.


  1. Government alone can’t bring development. People’s participation essential.
  2. There were Freedom fighters before Gandhi- they all fought and died. But Gandhi turned it into a mass movement- everyone from a sweeper to weaver to doctor felt part of the freedom struggle.
  3. Same way, we need to turn Development into a mass revolution
  4. Every citizen should feel that they do their job best-will contribute to the nation.
Events and targets
2015 PRavasi Bharatiya Diwas @Ahmedabad, Gujarat
Vision 2020 export nurses, teachers and other skilled personnel from India
2019 150th Birth anniversary of Gandhi. we’ll achieve 100% sanitation

Achievements and initiatives

  1. ISRO’s Mars mission travelled 650 Million Km at Rs 7/Km.
  2. “PM Jan Dhan Yogana” we have 4 Crores New accounts, junta deposits ~1500 crore rupees.
  3. Make in India Program: attract forieng companies to setup low cost production units here, ease of doing business
  4. mygov.in where junta can give suggestions.
  5. New committee to strike –off outdated laws.
  6. Clean INDIA program, Ganga cleaning- because it provides livelihoods to ~40 crore Indians.

Modi reform: OIC, PIO, NRI

Note: Detailed table given in M.Laxmikanth’s Polity book-chapter on citizenship page 6.5 onwards. following, is just an overview:

Refer Laxmikanth for more.
If you or your parents were Indian citizen once upon a time. If your parents, grandparents or spouse were Indian citizen once upon a time.
Lifelong visa-free travel. card Valid only for 15 years.
No need to register at any office. Doesn’t matter how long you want to stay in India. If staying beyond 180 days in a single visit, you’ve to register Foreigners Regional Registration or Police station.

Modi reforms

  1. We’ll combine PIO and OCI. We’ll even cover spouses.
  2. PIO card-walla won’t have to report to police.
  3. US citizens can get long term visas to India
  4. US tourists can get visa on arrival in India
  5. Online visa and visa-outsourcing to reduce delays.

Totalization pact with USA

  • 5 lakh NRIs contribute ~1 billion$ in taxes, to USA’s social security system. (~15% of salary)
  • Many of them don’t have full immigrant visa and have to leave USA after 3-7 years.
  • But as per US social security norms, if a person doesn’t work for 10 years continuously in USA, his social security contributions are forfeited.
  • Since 2007, India trying to solve this issue by signing a totalization pact with USA. We already have such agreements with 17 countries including Australia.
  • But Americans don’t agree, saying Indian social security system (administered by EPFO) is not compatible with their hi-fi system.

Why Modi did not pledge troops/jets against ISIS?

Detailed article on ISIS later, this is just a newspaper editorial gist:
What is not possible?

  1. Sending Indian troops in Middle East = not going to happen. Because Iraqi PM said no to foreign troop movement.
  2. India can providing Fuel and Logistic support to American bomber planes. In 91’s gulf war, PM Chandra Shekhar did this, and was criticized a lot, by the opposition parties.
  3. But this time, ISIS beheading= everyone is outraged= less chances of criticism or vote bank politics, even if Modi agreed for refueling.
  4. But, USA doesn’t need India for fuel-logistic support. Other Middle Eastern states already providing that.

What is possible?

  1. Sharing intelligence and blocking IS attempts to enlist Indian Muslims to join their war.
  2. 40 countries already agreed for such help to USA. Modi agreed for the same.

Mock questions

200 words each.

  1. Discuss the roadblocks that prevent the manifestation of “natural alliance” between India and USA.
  2. Write a note on Indo-US cooperation in the fields of healthcare, energy and space exploration.
  3. Evaluate the Strategic importance of Prime minister’s visit to USA in 2014.
  4. India has made a right decide by not sending troops or fighter jets against ISIS. Do you agree? Justify your stand.
Indian History Freedom Struggle Pratik Nayak

41 Comments on “[Modi Diplomacy] Part 3/4: USA Visit- Strategic, Economic, Energy agreements, outcomes”

  1. Awsome ………….. humor is the one that diffrentiates mrunal bhai from other blogers. I like it man.

  2. Visa policy of US is stil tough no changes done by obama even modi tried so,I think indian media made huge hype around modi visit,they showed us only positive thing about modi visit ,huge protest of shikh for justice is nowhere in media

    1. You are absolutely right…….

  3. Hi Mrunal,

    Could u plz suggest how to manage time in IBPS Exam( time division for different sections), and also the priority of picking different sections.


  4. Thank you very much sir..

  5. plzzz help me i m nt able to download my ssc cgl2014 admit card it is showing invalid id what to do now me in big trouble does anyone here with same condition

  6. Sir, pls Novartis wala topic bhi daalo……indian express me article aaya tha do din pehle……

  7. Population of India is 1210 million according to 2011 census…..

  8. anybody downloaded the ssc admit card as i m getting error

      1. swati u downloaded admit card or getting error

        1. i downloaded my admit card successfully

          1. what is ur exam date 19tth october or 26TH OCT swati mam

        2. 19th…karnataka region..

      2. swati……wat prblm u facing????

    1. I tried it using my name. It says invalid.

      1. I TRIED WITH REGISTRATION ID nd DOB but it is saying invalid DOB ……now what to do in such case????
        and their helpline number invalid

  9. mrunal sir help me wat is the solution ,,i tried to call the helpline number but the number is invalid ….what to do is dere is someone facing same situation

    1. Try once again with your name and date of birth, Make sure you enter only first four words of your name like if your name is rajnikant, put it as rajn and then try. Hopefully it will work. But still not able to download contact the regional office of SSC for the duplicate Admit card.

  10. Thank you so much sir.ur guidance nd effort valuable for us…

  11. i m also facing same problem ssc 14 admit card….invalid record…plz help

    1. PRETTY SURE about filling my details trhen wat is happening if u get any information rahul let me know ……is dere anybody else with same problem do tell

      1. i m also facing the same issue …not able to download n tht number seems to be historically busy !!!

        Visit at : http://www.ssc-cr.org
        (Central Region)
        you may face problem but don’t worry u will get it
        mostprobably justt login with ur registration no….that is more suitable..

        1. i got the message “sorry either you entered wrong detail” . i tried many times using my registration id and also by using my name but it still gives the same message … Please tell me what to do now

      3. i was having the same problem but then i realised that i was searching in wrong zone….check on correct zonal website else call helpline

  12. Dear Sir,

    Is there a definite and structured path to start the IR study, like you have mentioned for Economics and others.
    like sequence of study or books .
    Please let us know.

    Thanks lot for the articles Sir

  13. Very Nice Article…

    1. Your prophecy does not seem to be materializing…..

  14. hi mrunal
    can u plz tell me that gk today notes which most are following are

    1.”regularly follow gk today”


    2.”downloaded mains notes which gk today is selling”

    1. @puja please tell me which notes you are talking about??

  15. mrunal sir/anyone pls help me…i had filled two forms of ssc cgl 14 because of exam centre constraint. i got admit card for both..1st form which i filled got centre delhi on 26th oct and 2nd one center ranchi on 19th oct.. for which one should i appear ?? i have previous notion that if two forms have been filled then first one(delhi centre) will be automatically cancelled.. Please reply/advice urgently

  16. Guys… am planning to join the Insightsonindia teries for 2015 prelims, the cost of the test series is about Rs.5999/- therefore am planning to form a group of around 5-6 members for sharing the cost. Those guys are willing to be part of my team please do reply

  17. frnd,we already had made a group….pls mail to suiitkumar@gmail.com
    We are 3members already,nd if u want to share with us then email to this id….
    give my reference- Avinash….
    Id holder name- aashutosh pandey

  18. Madam great u are ,beautifully explaining topics..

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