Mending ties

There was broad convergence of views and interests between the US and India when John Kerry, accompanied by Commerce Secretary Penny Pritzker and other senior American officials, visited India last week, despite India's decision not to ratify the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA).

The TFA, which was agreed upon by all WTO member states in Bali last year, had to be ratified by all signatories by July 31 to come into force. The deal was designed to reduce trade barriers by lowering import tariffs and standardizing customs, and was expected to boost trade and add up to an estimated 1 trillion USD to the global economy.

The new Indian government, led by Modi, made a U-turn, vetoing the trade deal over disagreements on New Delhi's food subsidies. The failure to reach an accord overshadowed Kerry's three-day hop-over to New Delhi for an annual Strategic Dialogue meeting between the two countries.

'Indispensable partners'

During his trip, a range of topics from partnership in trade and investment to clean energy and education were discussed, but India's stance on the TFA hogged the news. It would have been the icing on the cake for Kerry, if he had succeeded in persuading India not to veto the WTO deal, a top official involved in the discussions told DW on the condition of anonymity.

But it was made amply clear to him that India was not opposed to the pact and that at the core of its demand was food security for its 1.2 billion people, the official added. "We had to take on the role of tough negotiator," he stressed.

Understanding India's compulsions, Kerry said that India-US bilateral relations can doubtlessly go ahead and no such multilateral factor can hold the "relationship to ransom."

Saying that India and the US can and should be "indispensable partners" in the 21st century, the Secretary of State stressed that "the moment has never been more ripe to deliver on the incredible possibilities in the relationship between our two nations."

Paving the way

This was the first high-level interaction between Washington and the new Indian government, and it was intended to pave the way for Modi's visit to the US in September. Analysts say Kerry's visit came at an opportune time to revive economic and trade ties.

"The visit has repaired the damage that was prevalent in the last two years. Concerns of the business community have been addressed and the opening up of the insurance and defense sectors as well as putting retrospective taxation on the backburner has created the right investment climate," Lalit Mansingh, a former Indian ambassador to the US, told DW.

"Between now and September, officials in both countries will be working overtime to fine-tune areas of meaningful cooperation and investment," he added.

In his maiden budget, Modi announced his government will allow up to 49 percent foreign direct investment (FDI) in defense and insurance sectors, which could lead to more capital inflows.

Window of opportunity

Experts argue that Kerry's trip provided a window of opportunity for both Washington and New Delhi to re-launch their partnership.

Writing for Foreign Policy, Harsh Pant, professor of International Relations at King's College London, stressed that "while the United States needs to categorically underline its willingness to work with the Modi government, India too needs to articulate a forward-looking agenda for US-India ties."

According to Pant, ties will not take a leap forward unless the leadership in both New Delhi and Washington "nurture it from the very top."

Amitabh Matoo, a professor in international politics and currently the director of the Australia-India Institute believes the blossoming of the US-India ties will happen only after Obama's second term ends. President Obama has "too much on his plate fire-fighting in the Middle East and Europe,” Mattoo told DW.

How bilateral ties will pan out in this "potentially transformative moment" and whether India will be "an indispensable partner for the 21st century" as John Kerry described the relationship will be keenly watched.