Sunday, October 20, 2013

Monetary Peace: Strengthen Indian economy, US will keep Pakistan on leash

When Indian Prime Minister Manmohan Singh last visited the White House in 2009 he was feted at President Barack Obama's first state dinner, a star-studded affair that reflected the excitement about blooming ties between the two big democracies.

Back then, India was being seen as a counterbalance to a rising China. But times have changed, Indian rupee is fast losing is sheen. While India US ties have certainly seen an improved but talking in strict terms it has gained too little.

Besides, the economic issues, the most persistent thorn in the growth of India, is its cousin Pakistan. While India has been battling a slew of cross border violations from Pakistan, the latter seems to be gaining its favour in Washington.

As reported in Foxnews, The U.S. has quietly decided to release more than $1.6 billion in military and economic aid to Pakistan that was suspended when relations between the two countries disintegrated over the covert raid that killed Usama bin Laden and deadly U.S. airstrikes against Pakistani soldiers.

Officials and congressional aides said ties have improved enough to allow the money to flow again.

American and NATO supply routes to Afghanistan are open. Controversial U.S. drone strikes are down. The U.S. and Pakistan recently announced the restart of their "strategic dialogue" after a long pause. Pakistan's new prime minister, Nawaz Sharif, is traveling to Washington for talks this coming week with President Barack Obama.

While cross border terrorism has remained a top agenda for Delhi, Islamabad has forever been trying to get US to solve the border issue. However, what Delhi really needs is a stronger resolve to strengthen its economy and if once again, India can get back on track, the U.S. will invariably be forced to keep Pakistan on a tighter leash.

When it comes to relations with U.S. one has to understand that it is purely business. U.S. can never be a trusted friend, only a useful ally and it will always be in the interest of India to be resourceful. Whatever said and done, at the end of the day India is the only country on the southeastern map of Asia that can in actual terms boast of a stable government.

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