Obama’s visit to India could reap benefits for U.S. firms

It’s no accident that 200 leading American businessmen and women have accompanied President Barack Obama on a three-day visit to India starting today. It’s also no accident that Britain’s new prime minister, David Cameron, traveled to the subcontinent with a huge delegation in July, two months after taking office.

India, as one of the fastest growing economies and boasting a huge, vibrant middle class, is important on several levels: it is the largest democracy; has an economy that is expected to grow at an impressive 8 percent a year for the next several years; offers major markets for foreign products; and, boasts corporations on the lookout for investment opportunities around the globe.

President Obama’s visit will be followed by a stop in Indonesia, attendance at the G-20 summit in South Korea, and participation in the summit of nations of the Asia-Pacific Economic Cooperation in Japan.

But, India is one of the most important emerging economic relationships for the United States, which is why Obama will attend a business conference, visit the Gandhi museum, have bilateral talks with Prime Minister Manmohan Singh, address parliament and attend a state dinner.

The president will also hold a town hall-type meeting with Indian students and participate in celebration of the Hindu holiday of Diwali.

According to the Economic Times of India, the American business leaders on the tour include Pepsico CEO Indra Nooyi, who was born in India; Honeywell CEO David M. Cole, who co-chairs the India-US CEO Forum with Tata Group Chairman Ratan Tata; and, Terry McGraw, CEO of McGraw Hill.

“With 1.2 billion people and an economy expected to grow at 8 percent a year for the next several years, we really see India as a potentially very important market for U.S. exports,” said Michael Froman, the deputy national security adviser for international economic affairs. He was quoted by CNN.com.

But there is another reason President Obama’s visit is important: It indicates to the people of India that the United States wants to have the kind of close relationship it enjoys with neighboring Pakistan.

Nuclear powers

India and Pakistan, both nuclear powers, have fought three wars over the disputed territory of Kashmir. The basis of the conflict is religious. India is predominantly Hindu, but has a sizable Muslim population; Pakistan is Muslim.

It is also the frontline in the war on global terrorism being waged by the U.S. and its allies and has become the target of Islamic extremists who want to overthrow the government and impose Sharia law. If Pakistan does fall into the wrong hands, the entire region would be in grave danger because of the nuclear weapons.

President Obama, like his predecessors, has committed financial and other support to Pakistan to ensure its security. More than $1 billion has been funneled to the government in Islamabad.

This relationship worries the Indians because of the past conflicts with its neighbor.

Obama’s visit should reassure New Delhi that the world’s second fastest growing economy after China has nothing to worry about.