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Senator Warner First 100 Day U.S.-India Plan Actions Taken

India and the U.S. implement 7 out of 12 actions recommended by Senator Warner
India and U.S joint issues.
Announce a joint energy project:
Indias power requirements currently outstrip available supply, and as the economy
continues to grow, even more power will be required. As the Chief Minister of
Gujarat, Mr. Modi oversaw the creation of over 900 MW of solar power capacity in
the state, which is more than a third of the total solar capacity in the entire country. In
recent years, wind power has also been on the rise in Gujarat. U.S. companies have
off-the-shelf technologies that can provide assistance in India and create private
sector jobs in the U.S. We already have a 2010 U.S.-India agreement in place to
collaborate on energy technology, which provides a framework to launch new
projects, and given Mr. Modis previous success, this would appear to be a great
opportunity to work together.
o The U.S. Trade and Development Agency, on July 31, announced an energy
project with Gujarat Energy Transmission Corporation Limited (GETCO), to
integrate increasing amounts of wind and solar into its power transmission
system. The project, to be carried out with Quanta Technology of Raleigh,
NC, will ensure load balance and frequency regulation.
o India has dropped plans to impose an anti-dumping duty of between 11 to 81
cents per watt on solar panel imports from the US, China, Taiwan and
Malaysia.
Convene a meeting of the U.S.-India Strategic Dialogue (USISD) soon, and do it in
Delhi:
Typically held in June, the USISD would provide an early opportunity for the U.S.
Government to engage with the new Government in India. Since the new Indian
government will just be getting started, holding the Dialogue in Delhi will be less
disruptive to organizing meetings and will provide both sides the opportunity to meet
and get to work early in the term on joint initiatives.
o Secretary of State John Kerry and Secretary of Commerce Penny Pritzker
traveled to Delhi for the U.S.-India Strategic Dialogue July 31.
Hold bilateral talks on Afghanistan:
The U.S. could benefit from fully involving the new Indian Government in a post-
Afghanistan security conference. The security landscape in Afghanistan is of concern
to both countries. For India, the concern is that a U.S. withdrawal could leave a
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challenging security situation nearby that could spill into India. The U.S. could seek
Indias consultation on high-level strategies, and the governments could explore areas
for collaboration.
Propose the establishment of a public-private working group on infrastructure
investment:
Infrastructure in India presents a real opportunity. In Gujarat, Mr. Modi made
infrastructure improvements a priority, building thousands of kilometers of highways
and attracting investment to build up the country's largest modern port. For U.S.
firms, a large part of the investment opportunities for the next five years are likely to
be in infrastructure. Some American firms that have previously invested in India
have experienced difficulties with payment certainty and are shy to take the risks of
being primary developers. A public-private group could be charged with finding a
way to ensure payment security for American investment, pointing toward specific
projects where American firms can/should bid, and focusing U.S. Government
assistance to help identify American firms to play a role in this infrastructure build-
out. The Delhi-Mumbai corridor is taking shape, and it is worth asking the
Government of India to consider dedicating several commercial centers for U.S.
investment.
o Through budget talks and during the U.S.-India Strategic Dialogue, there was
discussion about designating infrastructure projects. The Indian budget,
unveiled July 10, focused heavily on infrastructure, making specific mention
of building smart cities and emphasizing expansion and improvement of
roads, railways, ports, and energy infrastructure.
Re-start negotiations to achieve a Bilateral Investment Treaty (BIT):
India and the U.S. have meandered through several rounds of stop and start
negotiations about how to proceed with a BIT. Announcing that both sides will sit
down and negotiate a framework would boost confidence that a BIT is possible. A
BIT would provide important protections for investors, help unleash needed
investment, and provide a level playing field for both countries.
Re-launch the Defense Policy Group:
This high-level dialogue has fallen dormant for two years. It previously provided a
regularly scheduled series of meetings to advance defense initiatives that were in each
countrys mutual interest and provided a platform to discuss more difficult issues.
The U.S., for its part must appoint a senior-level Pentagon official to lead the U.S.
side of the Joint Defense Trade and Technology initiative.
o Dr. Amy Searight, Deputy Assistant Secretary of Defense, announced in July
that the Defense Policy Group will convene this year ahead of the 2015
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renewal of the Framework for the U.S.-India Defense Relationship and other
U.S.-India defense activities.
U.S.
Name a senior official for defense trade:
The U.S. should name a senior-level official who reports directly to the Secretary of
Defense to lead the Defense Trade and Technology Initiative (DTTI). Under Ash
Carters leadership this was one of the most successful programs and helped shepherd
billions of dollars of defense deals through the pipeline, as well as cleared out
inefficiencies on both sides of the U.S.-India defense trade to make defense trade
simpler, more responsive, and more effective.
o May 31, Secretary of Defense Chuck Hagel announced that Frank Kendall,
Under Secretary for Acquisition, Technology, and Logistics, would lead the
U.S. side of DTTI.
Review tourist visa policies and access to high-skill visas:
The U.S. should conduct a review of visa policies with an eye toward further opening
of global entry and trusted traveler programs for frequent travelers, including business
leaders and investors. A review of policies for high-skill employees would help
ensure companies in both countries have access to talent to help U.S. companies and
the American economy grow and innovate and encourage more joint research and
cooperation between universities. An agreement to increase travel and tourism
between the two countries would increase more people to people interaction.
o During the Strategic Dialogue Secretary of State John Kerry addressed the
issue of high-skill visas, and acknowledged the need to reform U.S.
immigration policies to make it easier for people to travel and address some of
Indias concerns with regard to visa policies.
India

Modify the defense offset regime:
The Government of Indias Defense Procurement Procedures mandate that purchase
of U.S. equipment require 30% of contract value be invested in Indian defense, civil
aviation or homeland security industries. Much of the Indian offset market is
saturated, and American defense firms increasingly find it difficult to locate areas to
invest. It would be helpful to have a two-tiered system where offset funds that cannot
be spent on traditional Indian defense industries could flow to a second tier of other
Indian priorities such as education, skills development, or manufacturing.
Agree to build community colleges in India:
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In 2010, India signed multiple agreements to partner with U.S. community colleges
and announced a plan to establish 100 schools to meet its goal of training 500 million
Indians in basic skills over the next decade. However, the project became mired in
the bureaucracy and was weighed down by its level of ambition. An agreement to
construct just a few community colleges and then build upon that success could be
more effective.
Lift the Foreign Direct Investment (FDI) caps in one of the sectors under review:
Lifting caps in some of the sectors that have been under discussion for years would be
a positive signal to foreign firms that India was again open for business.
Specifically, defense, insurance, railways, e-commerce and banking sectors are ripe
for reform.
o July 9, Indian Finance Minister Arun Jaitley unveiled a budget that raises FDI
from 26% to 49% in the defense and insurance sectors.
Implement new electronic distribution systems for subsidy payments:
Originally proposed by Senator Warner to Finance Minister Pranab Mukherjee in
2012, an electronic debit card system to deliver benefits and subsidy payments to the
rural poor would provide a much greater degree of accuracy and efficiency, and this
technology could reduce the loss rate due to corruption and inefficiencies.