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88–834PDF 2014

U.S.–INDIA RELATIONS UNDER THE MODI

GOVERNMENT

HEARING

BEFORE THE

SUBCOMMITTEE ON ASIA AND THE PACIFIC

OF THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED THIRTEENTH CONGRESS

SECOND SESSION

JULY 24, 2014

Serial No. 113–203

Printed for the use of the Committee on Foreign Affairs

(

Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or

http://www.gpo.gov/fdsys/

(II)

COMMITTEE ON FOREIGN AFFAIRS 

EDWARD R. ROYCE, California, Chairman 

CHRISTOPHER H. SMITH, New Jersey 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

STEVE CHABOT, Ohio 

JOE WILSON, South Carolina 

MICHAEL T. MCCAUL, Texas 

TED POE, Texas 

MATT SALMON, Arizona 

TOM MARINO, Pennsylvania 

JEFF DUNCAN, South Carolina 

ADAM KINZINGER, Illinois 

MO BROOKS, Alabama 

TOM COTTON, Arkansas 

PAUL COOK, California 

GEORGE HOLDING, North Carolina 

RANDY K. WEBER SR., Texas 

SCOTT PERRY, Pennsylvania 

STEVE STOCKMAN, Texas 

RON DESANTIS, Florida 

DOUG COLLINS, Georgia 

MARK MEADOWS, North Carolina 

TED S. YOHO, Florida 

SEAN DUFFY, Wisconsin 

CURT CLAWSON, Florida 

ELIOT L. ENGEL, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

BRAD SHERMAN, California 

GREGORY W. MEEKS, New York 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

BRIAN HIGGINS, New York 

KAREN BASS, California 

WILLIAM KEATING, Massachusetts 

DAVID CICILLINE, Rhode Island 

ALAN GRAYSON, Florida 

JUAN VARGAS, California 

BRADLEY S. SCHNEIDER, Illinois 

JOSEPH P. KENNEDY III, Massachusetts 

AMI BERA, California 

ALAN S. LOWENTHAL, California 

GRACE MENG, New York 

LOIS FRANKEL, Florida 

TULSI GABBARD, Hawaii 

JOAQUIN CASTRO, Texas

AMY PORTER, Chief of Staff THOMAS SHEEHY, Staff Director

JASON STEINBAUM, Democratic Staff Director 

SUBCOMMITTEE ON ASIA AND THE PACIFIC

STEVE CHABOT, Ohio, Chairman 

DANA ROHRABACHER, California 

MATT SALMON, Arizona 

MO BROOKS, Alabama 

GEORGE HOLDING, North Carolina 

SCOTT PERRY, Pennsylvania 

DOUG COLLINS, Georgia 

CURT CLAWSON, Florida 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

AMI BERA, California 

TULSI GABBARD, Hawaii 

BRAD SHERMAN, California 

GERALD E. CONNOLLY, Virginia 

WILLIAM KEATING, Massachusetts 

(III)

C O N T E N T S 

Page

WITNESSES 

The Honorable Nisha Biswal, Assistant Secretary, Bureau of South and Central Asian Affairs, U.S. Department of State .................................................... 8

The Honorable Arun Kumar, Director General of the U.S. and Foreign Commercial Service and Assistant Secretary for Global Markets, International 

Trade Administration, U.S. Department of Commerce ..................................... 16

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING 

The Honorable Nisha Biswal: Prepared statement .............................................. 11

The Honorable Arun Kumar: Prepared statement ............................................... 18

APPENDIX 

Hearing notice .......................................................................................................... 40

Hearing minutes ...................................................................................................... 41

The Honorable Eni F.H. Faleomavaega, a Representative in Congress from 

American Samoa: Prepared statement ............................................................... 42

The Honorable Edward R. Royce, a Representative in Congress from the 

State of California, and chairman, Committee on Foreign Affairs: Prepared 

statement .............................................................................................................. 45

(1)

U.S.–INDIA RELATIONS UNDER THE MODI 

GOVERNMENT 

THURSDAY, JULY 24, 2014

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON ASIA AND THE PACIFIC,

COMMITTEE ON FOREIGN AFFAIRS,

Washington, DC. 

The committee met, pursuant to notice, at 4 o’clock p.m., in room 

2172, Rayburn House Office Building, Hon. Steve Chabot (chairman of the subcommittee) presiding. 

Mr. CHABOT. The committee will come to order. 

We would like to welcome everyone here and apologize for starting about an hour later than we were scheduled. We had a whole 

series of votes that started at the time that our committee was 

scheduled to start. So, we apologize for any inconvenience to anyone. 

I want to start out the meeting by saying how pleased we are to 

have our Eni back. He is looking great, and we are certainly 

pleased to have him representing the other side in these hearings. 

Whereas, some committees, they can be at each other’s throats, in 

this committee we tend to get along. Even if we don’t necessarily 

agree, we do it in a nice manner. But we generally do agree on a 

lot of things. We are really, really happy to have Eni Faleomavaega 

back and we wish him great health for many years to come. And 

I think Ami, all kidding aside, did a very good job filling in while 

he was not here—really a commendable job—thank you so much, 

Ami, for filling in. 

I also want to thank our distinguished witnesses for being here 

today to discuss a relationship of great importance and a country 

that has a great impact on the national security interests of the 

United States, not only in Asia, but in other parts of the world as 

well. 

India is a nation of 1.2 billion people, and sometime in the very 

near future will, in all likelihood, be the most populous nation on 

earth, replacing China, and certainly is the powerhouse of South 

Asia. It has also been called an indispensable partner of the United 

States. This year marks the tenth anniversary of the U.S.-India 

Strategic Partnership, launched on January 2004 by President 

Bush. Over the last 10 years, we have seen this bilateral relationship evolve, and today, India is the 18th largest export market for 

the United States and U.S. direct investment in India has grown 

over 300 percent during that time. It is expected that annual bilatVerDate 0ct 09 2002 16:26 Oct 09, 2014 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\WORK\_AP\072414\88834 SHIRL
2

eral trade between our two countries could increase by fivefold over 

the next 10 years. 

In April and May, India conducted the largest democratic exercise in history. The outcome of this election was historic because 

the former opposition Indian People’s Party, the BJP, became the 

first party to win a majority of India’s lower chamber of Parliament 

since 1984 and became the first non-Congress Party to rule India’s 

Federal Government without coalition partners. In addition, Mr. 

Modi is now the first lower-caste Prime Minister, the first born 

after the country’s 1947 independence, and the first to not have 

been previously embedded within New Delhi’s political class. We 

are all hopeful that the new administration will seize upon this opportunity to work with the United States in reinvigorating bilateral 

ties and building a more dynamic partnership. 

Assistant Secretary Kumar—I think your presence here this 

afternoon is reflective of how important trade and investment are 

for the future of the U.S.-India relationship. Prime Minister Modi 

faces the daunting mission of reviving the Indian economy and taking steps to encourage private-sector growth. I am hopeful that his 

strong positions on trade and business development will help 

achieve this. 

Initiatives to spur development in India are critical, and the U.S. 

can play a significant role in promoting and facilitating modernization efforts. U.S. businesses continue to face severe barriers including patent revocations, compulsory licenses, and copyright piracy, 

among other things. This is coupled with concerns about market 

access, caps on foreign direct investment, and stalled bilateral investment treaty negotiations. I hope we can hear how the administration plans to address these ongoing trade challenges, especially 

at the U.S.-India Strategy Dialogue next week. 

I am also hopeful that Mr. Modi’s resolve to implement a more 

assertive foreign policy will foster further geopolitical alignment 

and cooperation between our two nations because at the end of the 

day, U.S.-India strategic interests do converge more than they conflict. On the positive side, India’s deepening relations with Japan 

pave the way for possible collaboration on efforts to respond to China’s unilateral actions in the East and South China Seas. On the 

other hand, India’s relationship with Russia and implicit support 

of Russian ambitions in Ukraine are concerning. I hope, Ms. 

Biswal, you can touch on this particular issue. 

Many of my colleagues are also concerned about the persecution 

of religious minorities in India—largely Christian and Muslim 

groups—and repeated reports about discrimination against women. 

India has seen a 30-percent increase in incidents of communal violence since 2012, which has resulted in over 133 deaths. I hope the 

new Modi government makes it a priority to effectively address 

communal violence against all religious groups and adequately 

punishes rampant sexual abuse. Short of doing so, these human 

rights issues will only continue to impede efforts to modernize India’s economy and expand opportunities for its poverty-stricken 

population. 

As the Obama administration establishes a plan for future cooperation with India, it needs to take a leadership role in building 

upon U.S.-India mutual strengths, finding ways to advance mutual 

3

trust, and doing a better job at helping India integrate into the 

international system. 

While the ‘‘Indo-Pacific Economic Corridor’’ and ‘‘New Silk Road’’ 

are credible initiatives aimed at better integrating India with the 

rest of Asia, they cannot be our only efforts to do so. India must 

play a more prominent role in the administration’s rebalance policy 

toward Asia because the challenges we face in the East and West 

do not stop at any one country’s border. The new Modi administration offers us the chance to change this—to deepen cooperation 

across the spectrum that will harvest the region’s ability to better 

maintain freedom of navigation, prevent the spread of terrorism, 

and inhibit the proliferation of nuclear weapons. 

Prime Minister Modi’s scheduled visit to the U.S. in September 

acknowledges the importance a strong U.S.-India relationship can 

play in our future engagement. I hope Prime Minister Modi can address and deliver on the promised reforms that are needed to 

strengthen ties between our two countries. And I urge the administration to be proactive in driving efforts to tackle the most salient 

issues that negatively affect U.S. economic and regional security interests. I again thank the witnesses for being here and look forward to their testimonies. 

I would now like to turn to the gentleman from American Samoa 

and welcome back Eni Faleomavaega. 

Mr. FALEOMAVAEGA. Thank you, Mr. Chairman. 

As India’s newly-elected Prime Minister Narendra Modi said, 

‘‘Good days are coming.’’ And I agree. 

I am grateful to our Heavenly Father for the good days and good 

friends. I would be remiss if I did not take this opportunity to personally thank you, Mr. Chairman and Mr. Bera, for your support, 

your thoughts and prayers during my time of recovery. I also thank 

the members of our subcommittee as well as my colleagues in the 

House. I am grateful to each of you and very grateful to be back 

working with you on important issues facing our country and the 

regions of Asia and the Pacific. 

I believe together we still have a difference to make. And so, I 

thank you, Mr. Chairman, for holding this important hearing at my 

request on U.S.-India relations under India’s newly-elected Prime 

Minister, my good friend Narendra Modi. 

History will remember India’s 2014 elections this year as unprecedented. I will remember the 2014 elections as an epic triumph because, on May 16, 2014, in the most historic election since India’s 

independence, Shri Modi won India in a landslide victory that gave 

Shri Modi the most decisive mandate for an Indian Prime Minister 

in three decades, despite the United States using every recourse it 

could to disrupt his destiny. 

No doubt Prime Minister Modi’s destiny is to lift up the masses, 

assure social justice, and bring new hope for any and all who, like 

him, step forward and transform changes and challenges into opportunities by sheer strength of character and courage. 

Prime Minister Modi’s victory is India’s victory. It is our victory, 

too. And I join with the good people of India and our Indian-American community throughout the United States in celebrating a new 

dawn of development for all. 

4

Our U.S.-India partnership should be, could be, one of the most 

defining of the 21st century. But it is shameful that our Government, yes, the United States, failed to develop a strong friendship 

and comprehensive partnership with Shri Modi when it mattered 

most. 

I thank Prime Minister Modi for accepting President Obama’s invitation to meet at the White House on September 30th of this 

year. Prime Minister Modi’s willingness to put the past in the past 

is a testament to his track record of good governance. He is a selfless leader who puts India and some 1.3 billion Indians first. 

In recognition of his visit to our nation’s Capitol, I join with my 

colleagues in calling upon the Speaker John Boehner and Senator 

Majority Leader Harry Reid to invite Prime Minster Modi to address a Joint Session of the U.S. Congress. I commend the co-chairs 

of the House Caucus on India and Indian Americans and their 

counterparts in the Senate, and also my good friends Congressman 

Brad Sherman, Congressman Ami Bera, Mr. Sanjay Puri of the Alliance for Indian-American Business, and all those who are working together for this purpose. 

I also thank Mr. Puri for introducing me to Shri Modi in 2010, 

4 years ago. In 2010, Shri Modi was Chief Minister of Gujarat and 

I was chairman of this subcommittee. I flew to Gujarat to meet the 

Chief Minister at that time at his residence. I knew then what I 

know now: Shri Modi is dedicated, he is determined, he is dynamic, 

he is different. He is the key player for improved relations between 

the United States and India. 

Today he is the leader of the world’s largest democracy, and I 

have every confidence he will cut across caste, creed, and religion, 

and bring alive the dreams of over 1 billion Indians in a world that 

needs his leadership. As a man of vision and action, he, together 

with each and every citizen of India, will create something special, 

an India of sustainable development and inclusive growth and an 

India that will rightfully assume its place in the political and economic affairs of the world. 

You can be assured Prime Minister Modi will usher in India’s 

new era, and the United States would be wise to support his goals. 

India will not be threatened, nor be intimidated by any country. 

India will deepen partnerships regionally and globally in areas of 

defense, nuclear energy, space research, and trade and investment. 

India will also invest heavily in infrastructure, affordable housing, 

healthcare, education, and clean energy. India will advance the interests of the developing world and lead the way in establishing a 

new model for maintaining stability without constraining growth. 

Prime Minister Modi will devote it all to eradicate poverty. 

Good days are coming, Mr. Chairman. Don’t matter the pundits 

and critics who have too long maligned Shri Modi and his supporters. 

And so, once more, I congratulate Shri Modi on his path-breaking 

campaign, and I praise BJP Party President Singh for working 

shoulder-to-shoulder with Shri Modi to ensure that the spirit of democracy has triumphed. 

I also commend Mr. Puri for championing the cause, the work of 

Shri Modi in Congress, at a time when others were not courageous 

5

enough, and for holding firm even though he was also unjustly and 

wrongfully maligned. 

Above all, Mr. Chairman, I praise Prime Minister Modi for his 

beginning as a son of a tea seller to a groundbreaking victor. I wish 

Shri Modi every success in his historical journey forward as the 

Prime Minister that the people of India have long awaited. 

I yield back. Thank you, Mr. Chairman. 

Mr. CHABOT. Thank you very much. 

We will now turn for 1 minute to other members who may want 

to make a statement. I will go first to Dana Rohrabacher, the gentleman from California, who is also the chairman of the Europe, 

Eurasia, and Emerging Threats Subcommittee. 

Mr. ROHRABACHER. First and foremost, welcome back, Eni. We 

are grateful that you are here with us today, and that is a very 

good sign that we are having a hearing about our relations with 

India and talking about what good friends can accomplish together, 

because Eni and I have been working together for about 26 years 

now. And I feel that our friendship has helped us both accomplish 

some of the goals we have set out. 

The same will be true with the United States and India. If there 

is any chance for prosperity, if there is any chance for peace and 

stability in large sections of this world, it will be due to a cooperative spirit and a positive relationship with India. 

Mr. Modi is a breath of fresh air. Let me just note, Mr. Chairman, that we face serious challenges from folks who do not mean 

us well or mean the Western World well, when radical Islam and 

China and our central enemies happen to be the central enemies 

that India faces as well. We need to work together to create peace, 

work together to build the standard of living of the people of India 

and enriching our own prosperity at the same time. 

So, with that said, I look forward to working with Eni and with 

you, Mr. Chairman, to achieve those goals and build a better relationship with India. 

Mr. CHABOT. Thank you very much. The gentleman’s time has 

expired. 

The gentleman from California, Mr. Bera, is recognized for a 

minute to make a statement. We want to again thank him for so 

ably filling-in for Eni during his absence. 

Mr. BERA. Thank you, Mr. Chairman. 

Again, I will echo all the sentiments. I can’t fill Eni’s shoes, but 

it is great to see you back. 

It is also great to see Assistant Secretary Biswal back before this 

committee and my fellow Californian and good friend, Assistant 

Secretary Kumar. It is good to see you there as well. 

As an Indian-American Member of Congress and a GujaratiAmerican Member of Congress, this is an exciting time. I mean, 

there is a real time of opportunity, and I look forward to our realizing that full potential. 

The last decade certainly showed us what was possible, and 

there is a real opportunity now for us to take this partnership to 

the next level. Both economically and geopolitical, India’s importance is emerging in a very present way. If we do this right and 

we take the long view on this relationship, we really have an opVerDate 0ct 09 2002 16:26 Oct 09, 2014 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 F:\WORK\_AP\072414\88834 SHIRL
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portunity, as the President has said, to make this the defining relationship of the 21st century. 

So, Mr. Chairman, I yield back. 

Mr. CHABOT. Thank you. The gentleman yields back. 

The gentleman from Pennsylvania, Mr. Perry, is recognized to 

make an opening statement. 

Mr. PERRY. Thank you, Mr. Chairman. 

Thank you, folks, for being here. 

I see the great opportunities in the coming years for the bilateral 

relationship between the United States and India both militarily 

and economically. Of particular note is the immense opportunity 

for foreign military sales, as India is planning to spend up to $100 

billion over the next decade to update its mostly Soviet Era military arsenal. 

This year marks the tenth anniversary of the U.S.-India Strategic Partnership, which was launched in January 2004 by thenPresident George Bush. I look forward to hearing an assessment 

from our distinguished witnesses of this bilateral relationship over 

the past decade and how they see this relationship evolving over 

the coming decades. 

And I yield back. 

Mr. CHABOT. Thank you. The gentleman yields back. 

The gentleman from California, Mr. Sherman, is recognized for 

1 minute, he is also the ranking member of the Terrorism, Nonproliferation, and Trade Subcommittee. 

Mr. SHERMAN. Thank you. 

It is great to have Eni back. 

Thank you for distributing these CDs. And let me assure my colleagues that I will not be putting out anything similar. [Laughter.] 

Mr. CHABOT. Noted for the record here. 

Mr. SHERMAN. We have just seen an election in India in which 

some 550 million people participated. That is the greatest exercise 

of the franchise in the history of the world. 

For that and so many other reasons, Mr. Faleomavaega, Mr. Poe, 

and myself have been circulating a letter—we now have 84 of our 

colleagues to join us in the effort—to congressional leadership saying that we ought to have Mr. Modi address a Joint Session of Congress. 

Finally, as to the nuclear agreement, I will hope to learn in these 

hearings whether India will adopt the liability protections that will 

allow American companies to participate. In light of Bhopal, I can 

see why that might be politically difficult in India. But, as a practical matter, India will benefit from the additional competition to 

allow U.S. companies to compete along with those companies that 

already enjoy sovereign immunity. 

And I yield back. 

Mr. CHABOT. Thank you. The gentleman yields back. 

The gentleman from North Carolina, Mr. Holding, is recognized 

for 1 minute. 

Mr. HOLDING. Thank you very much, Mr. Chairman. 

There can be no question that now is the time for relations between the United States and India to be taken to the next level. 

Having visited India just last year, I have no doubt that the U.S.-

India relationship can be made into one of the defining partnerVerDate 0ct 09 2002 16:26 Oct 09, 2014 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 F:\WORK\_AP\072414\88834 SHIRL
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ships of this century. Joining up the Modi magic with the American 

dream would be a very powerful combination worldwide. 

Mr. Chairman, with any partnership there is always room for improvement. For the United States and India to fully recognize the 

opportunity that exists right now, progress must be made to address concerns with India’s intellectual property system and other 

domestic laws and requirements that have been a concern for a 

number of U.S. companies doing business there. 

And for our part, Mr. Chairman, Congress must reject ill-conceived immigration proposals in the Senate that would harm successful collaboration between the U.S. and India companies. We 

must also mend relations with the Prime Minister that were damaged with the denial of his visa prior to being elected. 

It is not a small secret, Mr. Chairman, that our relationship with 

India over the last few years has not been as engaged as it could 

be or should have been. And I look forward to discussing what 

steps we can take to remedy this and capture the opportunity presented to us here for a new day with India and the United States. 

Thank you, and I yield back. 

Mr. CHABOT. Thank you very much. The gentleman’s time has 

expired. 

I would also like to thank our newest member of this committee, 

Curt Clawson, who is from the 19th district of Florida, speaks four 

languages, and all kinds of other great stuff. I will now yield to the 

gentleman either to talk about India or, if you would like to, talk 

about yourself. You have 1 minute. 

Mr. CLAWSON. This is a Samoan CD. I would say my favorite 

movies from foreign are Telugu, Film Nagar, Hyderabad. I went to 

school with Nagarjuna. I know Jagapathi. And these are my 

friends. I love Hyderabad. I love Chennai. And I am very familiar 

with your country. 

I have also run businesses with Mr. Kalyani in Bharat Forge, 

three factories for a joint venture in Pune. 

I am familiar with your country. I love your country, and I am 

hopeful with the new change in regime that the future and the 

land of promise and the land of opportunity of India can finally become so. 

And I understand the complications of so many languages and so 

many cultures and so many histories, all rolled up in one. But this 

is an awesome country with awesome potential and somebody that 

we need to be friends with and that we can trust, not just for security, but what is also important to me is for economic development. 

As was said earlier, technology and technology protection is I think 

a big issue in that. 

So, I am enthusiastic about working with you all, and anything 

that I can do to make the relationship with India better, I am willing and enthusiastic about doing so. 

Thank you. I yield back. 

Mr. CHABOT. Thank you very much. 

I will now introduce the panel, the distinguished panelists this 

afternoon, both of whom really need no introduction, but I am 

going to do it anyway. 

Nisha Biswal was sworn in as Assistant Secretary of State for 

South and Central Asian Affairs last October. Previously, Ms. 

8

Biswal served as the Assistant Administrator for Asia at USAID. 

During Ms. Biswal’s tenure USAID reopened its mission in Burma 

and transitioned its programs in various countries to global partnerships in development cooperation. Ms. Biswal also worked in 

the Office of U.S. Foreign Disaster Assistance and the Office of 

Transition Initiatives, and served as Chief of Staff in the Management Bureau while at USAID. Before USAID, Ms. Biswal served 

as the majority clerk for the House Appropriations Foreign Operations Subcommittee and as professional staff for the House Foreign Affairs Committee, where she was responsible for South Asia. 

Ms. Biswal has also worked at InterAction and at the American 

Red Cross, where she served as the International Delegate in Armenia, Georgia, and Azerbaijan. And we welcome you back to the 

committee. 

I would also like to introduce Arun M. Kumar. Mr. Kumar has 

served as Assistant Secretary of Commerce for Global Markets and 

Director General of the U.S. and Foreign Commercial Service since 

March of this year. In this role, he leads the trade and investment 

promotion efforts for the U.S. Government. Mr. Kumar has extensive global experience in the business world. Prior to his nomination, he was a partner and member of the Board of Directors at 

KPMG, LLP. He led the firm’s West Coast Management Consulting 

practice, serving major global clients as well emerging Silicon Valley ventures. He also found and led KPMG’s U.S.-India practice. 

Previously, Mr. Kumar was a Silicon Valley entrepreneur and has 

acted as a mentor and advisor to several new ventures in Silicon 

Valley and India. He has served on the advisory councils at Stanford University and the University of California, Santa Cruz, and 

he is on the Board of Directors of the U.S.-India Business Council. 

We welcome you here this afternoon, Mr. Kumar. 

I know both of the witnesses are familiar with the committee 

rules. You both will have 5 minutes. There is a lighting system. 

The yellow light will let you know you have 1 minute. When the 

red light comes on, we would ask you to wrap up as closely as possible. We do give a little leeway, but not much. 

So, Ms. Biswal, you are recognized for 5 minutes. 

STATEMENT OF THE HONORABLE NISHA BISWAL, ASSISTANT 

SECRETARY, BUREAU OF SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF STATE 

Ms. BISWAL. Thank you very much, Mr. Chairman. 

Chairman Chabot, Ranking Member Faleomavaega, thank you 

for having this hearing and inviting me to testify today. 

I want to just echo the sentiments on the dais about how wonderful it is to see you again sitting on the dais, Mr. Faleomavaega. 

It is a wonderful time to have this hearing and an important 

time to have this hearing. I am glad to be here with my good friend 

Arun Kumar. 

In the interest of time, I am going to summarize the points which 

all of you have made so eloquently on the importance of the relationship and the opportunity we have, and ask that my full statement be entered for the record. 

Mr. CHABOT. Without objection, so ordered. 

Ms. BISWAL. Thank you, Mr. Chairman. 

9

There is no better time than now to reexamine the U.S.-India relationship. The historic elections, as you have noted, this spring 

conferred an unprecedented mandate on Prime Minister Narendra 

Modi and his party, and also created an historic opportunity for the 

United States and India to re-energize our relationship. 

Deputy Secretary Bill Burns and I traveled to New Delhi 2 

weeks ago to meet with Prime Minister Modi and key members of 

his cabinet. Secretary Kerry will travel soon to India to co-chair the 

next round of our Strategic Dialogue, and he will be joined by Secretary of Commerce Pritzker in underscoring the vital role of our 

economic partnership. 

Mr. Chairman, the Obama administration’s rebalance to Asia is 

a strategic bet on the consequential role of Asia’s 4.3 billion people 

in the 21st century and Asia’s growing importance to America’s security and prosperity. But, for Asia to comprise 50 percent of global 

GDP, as many project, its citizens and governments must make the 

right choices to foster sustainable and inclusive growth, to promote 

open and free trade, and to combat terrorism and extremism. 

In all of these areas, India has a vital role to play. Its rise as 

a regional and global power, its economic and strategic growth are 

deeply in the U.S. interest, as has been noted by members on the 

dais. Like the United States, India increasingly sees its future in 

a secure, connected, and prosperous Asia Pacific. We not only share 

democratic values, but also a deep interest in a peaceful and rulesbased order. 

But, if India is to achieve its potential, it will need to address 

myriad economic and governance challenges. Much of the excitement that the new Modi government has generated in India, 

around the world, and, most notably, in the business community, 

has been around this idea of accountable and effective government 

that can unleash India’s economic potential. 

While my colleague will discuss our economic and trade partnership in greater depth, I just want to underscore that our economies, 

our businesses, our universities, and our people can partner in 

helping India realize sustained and inclusive growth and enjoy a 

vision of shared prosperity. 

Our trade has already grown fivefold since the year 2000 to almost $100 billion annually. We can grow that fivefold again in the 

years to come. And we are committed to addressing the inevitable 

frictions over trade through dialogue and engagement. 

Our energy cooperation, one of the brightest areas of the partnership, is helping India meet its growing energy needs and creating 

opportunities for our businesses through contracts for export of 

American LNG and fulfilling the promise of delivering cutting-edge 

nuclear energy technology, as well as collaboration on clean energy 

solutions. 

But, as I noted at the outset, the locus of our convergent strategic interests is across the Asian landscape. When Prime Minister 

Modi invited regional leaders to his inauguration, he demonstrated 

his commitment to strengthening India’s ties within its immediate 

region. And we see a partnership with India that spans east, west, 

north, and south, to advance our shared interests across the IndoPacific Region. 

10

Our collaboration on counterterrorism and homeland security has 

grown tremendously in the past several years and has already 

helped to bring to justice several of the terrorists in the Mumbai 

attacks. We are committed to further strengthening this robust cooperation in order to protect both our nations and both our peoples. 

Defense cooperation continues to play a vital role in our partnership, which Secretary Hagel’s visit to India in early August will 

help to underscore. The breadth and depth of military exchanges 

and exercises have grown tremendously, and the Indian navy is 

participating in the RIMPAC Maritime Security Exercise in Honolulu for the first time this year. 

Additionally, as we speak today, we have begun our joint naval 

exercise, the Malabar, and this year, also, with the participation of 

Japan, this is a great example of our trilateral cooperation and a 

manifestation of the U.S.-India-Japan trilateral dialogue. 

These military ties are complemented also by our growing defense trade. We are overcoming bureaucratic hurdles and paving 

the way to increase defense trade and potential for co-production 

and co-development. 

Mr. Chairman, the true potential of this relationship was best 

characterized by Prime Minister Modi himself when he said to us 

2 weeks ago that it is not just benefits to the Indian people and 

the American people, but that the true value of the U.S.-India relationship is that, when the world’s oldest democracy and the world’s 

largest democracy come together, it is the world that stands to benefit. 

We deeply appreciate the strong support of the U.S. Congress 

and of this committee as well as members in the Senate and the 

House and the Indian Caucus in advancing the U.S.-India partnership. We look forward to closely collaborating with you in the years 

ahead, as we forge an ever-increasingly closer partnership between 

our two countries. 

Thank you, Mr. Chairman, and I will conclude my remarks here 

and look forward to answering any questions that you or the committee may have. 

[The prepared statement of Ms. Biswal follows:]

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Mr. CHABOT. Thank you very much. 

Mr. Kumar, you are recognized for 5 minutes. 

STATEMENT OF THE HONORABLE ARUN KUMAR, DIRECTOR 

GENERAL OF THE U.S. AND FOREIGN COMMERCIAL SERVICE 

AND ASSISTANT SECRETARY FOR GLOBAL MARKETS, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF 

COMMERCE 

Mr. KUMAR. Chairman Chabot, Ranking Member Faleomavaega, 

and members of the subcommittee, thank you for the opportunity 

to speak about the Department of Commerce’s engagement with 

India. I am honored to be here alongside my friend and colleague 

from the State Department, Assistant Secretary Nisha Biswal. 

The Department’s International Trade Administration is the 

agency responsible for promoting U.S. exports, expanding markets 

overseas, and enforcing U.S. trade laws. Our efforts are driven by 

the needs of our primary constituency, the U.S. business community. 

In 2010, President Obama said the U.S.-India relationship will 

be ‘‘one of the defining partnerships of the 21st century.’’ While 

India is a large market, our commercial relationship remains underdeveloped relative to its potential. With the new government in 

charge, the timing may be right to improve our bilateral trade relationship. 

From 2000 to 2013, U.S.-India two-way trade has grown from $19 billion in goods and services to about $97 billion. Having recently returned from India, I will agree that the potential is, indeed, vast. 

ITA understands the value of exports and its direct correlation 

to job growth. Our staff in 100 locations across the country and in 

over 75 markets around the world is dedicated to helping companies enter new markets and expanding current ones. 

In India, our staffing is currently strategically placed with a total 

of seven posts, making it the largest footprint of any ITA operation 

outside the U.S. Furthermore, ITA’s Advocacy Center, which coordinates U.S. Government commercial advocacy, helps U.S. companies win foreign government contracts. Between 2010 and 2013, 

ITA recorded advocacy wins in India with estimated contract values of $5.2 billion. 

Another focus of ITA is to encourage inward investment, and the 

Obama administration created SelectUSA, the only U.S. Governmentwide program to attract, retain, and grow business investment 

in the United States. In 2012, India’s stock of foreign investment 

into the U.S. totaled roughly $9 billion. Last year we hosted the 

first SelectUSA Investment Summit, and India was one of the largest delegations with 39 participants. Based on the success of this 

event, SelectUSA is organizing a second summit in March 2015. 

Doing business internationally can be risky, and India comes 

with its fair share of challenges. There are many areas that hinder 

us from deepening our trade relationship with India. U.S. companies need to be aware of these obstacles before entering the Indian 

market. 

These include protection and enforcement of intellectual property 

rights, localization requirements, high tariffs, and a difficult reguVerDate 0ct 09 2002 16:26 Oct 09, 2014 Jkt 000000 PO 00000 Frm 00020 Fmt 6633 Sfmt 6633 F:\WORK\_AP\072414\88834 SHIRL
17

latory system that lacks transparency and predictability. ITA 

works to resolve these issues in a variety of ways. 

First, we lead the public-private U.S.-India Commercial Dialogue. The dialogue has been effective in facilitating information 

exchanges between government and private sector experts on 

standards and regulatory procedures. 

Second, ITA chairs working groups on biotechnology, life 

sciences, civil aviation, and infrastructure in the High Technology 

Cooperation Group, led by Commerce’s Bureau of Industry and Security. 

We also support the State Department and USTR in the technical discussions on a U.S.-India bilateral investment treaty. 

ITA also organizes trade missions and trade events, provides 

market research, counseling, and customized support to companies 

looking to export to India. In 2015, the Department is organizing 

a trade mission to introduce U.S. firms to India’s rapidly-expanding 

ports and marine technology market. 

On the domestic side, ITA ensures U.S. companies enjoy fair 

competition here at home. Our agency is responsible for administering the U.S. antidumping and countervailing duty laws. As of 

today, we have 22 orders in place against a variety of Indian products. 

As I have expressed throughout this testimony, the United States 

remains actively engaged in India. The Commerce Department and 

ITA will continue to expand our contacts with a new government 

in New Delhi, the state governments where so many decisions are 

now made, and with U.S. and Indian businesses in order to promote exports of U.S. goods and services. 

Today we just announced that Secretary Pritzker will be joining 

Secretary Kerry at the upcoming U.S.-India Strategic Dialogue 

scheduled for July 31 in Delhi. We will use this meeting and other 

opportunities to grow our commercial relationship. 

Thank you for the opportunity to speak with you today. I will 

welcome your questions. 

[The prepared statement of Mr. Kumar follows:]

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Mr. CHABOT. Thank you very much. We appreciate your testimony. Members will have 5 minutes now to ask questions, and I 

will begin with myself. 

Ms. Biswal, Secretary Kerry is scheduled to represent the U.S.-

India Strategic Dialogue next week. As you are aware, in the past 

this dialogue has faced some challenges. Can you tell us what 

issues Secretary Kerry plans to discuss and how the administration 

will use this opportunity to engage with the new Modi administration on longstanding challenges in our trade and security relationship? 

Ms. BISWAL. Thank you, Mr. Chairman. 

We do see a very important opportunity in the Strategic Dialogue 

which will take place in New Delhi next week to be able to relaunch the relationship and, also, put some extraordinary focus on 

some of the key opportunities, certainly the economic relationship 

and reinvigorating the trade and investment, looking at some of 

those issues, but also looking at energy cooperation, including civil 

nuclear energy, looking at the security relationship and counterterrorism. 

And then, we will have a visit shortly thereafter by Secretary 

Hagel to look at the defense relationship and also put some emphasis on where we want to go together in that aspect of the relationship. 

We also see a tremendous opportunity to engage with India on 

the region and looking at the transition in Afghanistan, looking at 

the broader Asia landscape, the relationship, and the trilateral dialogue that we have with Japan, and to focus on all of the different 

aspects of U.S. and India across the Asian landscape. So, we look 

forward to jump-starting all of those conversations during the Secretary’s visit next week. 

Mr. CHABOT. Thank you very much. 

Let me follow up, Ms. Biswal, on another issue. New Delhi has 

given Russia’s aggression in Crimea implicit approval and strongly 

opposed sanctions on Moscow, calling Moscow’s interest in Crimea 

‘‘legitimate.’’ Can the U.S. trust India to be a reliable partner on 

significant geopolitical challenges, if for example, we can’t get India’s support on this growing crisis? And has the Malaysian airliner shootdown changed India’s attitude at all in this particular 

area? 

Ms. BISWAL. You know, I think that is an important issue and 

an important question. Clearly, India has its own history and its 

own relationships that guide its foreign policy. But our belief is 

that the more that we are able to closely consult on these critical 

issues and challenges that we face around the world, that we hope 

that we can bring closer together our perspectives and align efforts 

as much as possible. 

We do make the point to our Indian colleagues, as we do to 

friends around the world, about our perspectives, particularly with 

respect to Russian aggression in the Ukraine and the implications 

that that has. And we will continue to have those conversations 

with India and with other partners around the world. 

Mr. CHABOT. All right. Thank you. As chair of this committee 

and as a Member of Congress, I would consider myself to be very 

pro-India, but their attitude on this matter with respect to Russia 

28

is very disappointing to say the least. I think a lot of other members would probably agree on that. 

Mr. Kumar, let me turn to you now. I only have 11⁄2 minutes left. 

But the High Technology Cooperation Group, chaired by the Department of Commerce, is dedicated to promoting and facilitating 

bilateral high-technology commerce. Still, many U.S. businesses are 

facing severe barriers, such as patent revocations and compulsory 

licenses and copyright piracy and local manufacturing requirements, as I mentioned in my opening remarks. Has the Department of Commerce used this forum to address any of these issues 

to date? And could you comment in general on those issues? 

Mr. KUMAR. Mr. Chairman, we use various conversations, various forms to address exactly these issues that concern our exporters, issues of intellectual property protection, localization issues, 

where our point of view is that India will actually do better by focusing on having competitive manufacturing as opposed to forcing 

localization. So, these are all topics that we discuss with them all 

the time, including during my visit last week. 

Mr. CHABOT. Okay. Thank you. Thank you very much. 

I am going to stop at that point. I have a little bit of time left. 

But I am going to now recognize the gentleman——

Mr. CONNOLLY. Mr. Chairman, would you yield in your 25 seconds? 

Mr. CHABOT. I will be happy to. 

Mr. CONNOLLY. I want to just totally associate myself with your 

remarks with respect to the Crimea. And I have to say to the Assistant Secretary, I assume the United States’ position is this is 

sovereign territory that was illegally annexed by Russia, and I 

hope that was clearly conveyed to the new Indian Government. To 

me, this is not an ambiguous issue or something subject to debate. 

It is the sovereign territory of the Ukraine and remains so. 

I thank the chair. 

Mr. CHABOT. I am happy I yielded to you. 

The gentleman from New York, who is the ranking member of 

the full committee, is recognized at this time for the purpose of 

making a statement. 

Mr. ENGEL. Well, thank you, Mr. Chairman. I will be very, very 

brief. 

First of all, I want to thank our two witnesses. Thank you both 

for your service to our country. It is very much appreciated. 

To Mr. Faleomavaega, welcome back. It is good to see you, Eni. 

And let me just say that I feel so strongly about the U.S.-India 

relationship. I was an original member of the India Caucus back 

in 1990, when we formed it in Congress. And I have often felt that 

it is a shame that the United States and India through the years 

hadn’t aligned itself more closely. 

I know during the Cold War there were some difficulties because 

India had a close relationship with the Soviet Union, and that kind 

of made it difficult. But now I really think that both countries 

should do whatever they can to work more closely together. Our interests are aligned, whether it involves the fight against terrorism 

or China’s rise or just trade. I just think it makes so much sense. 

So, I wanted to thank you, Mr. Chairman, for holding this important hearing today. And you can certainly count on me as a friend 

29

of India. And I look forward when the Prime Minister comes here 

in September to greeting him. I think his election also presents us 

with a tremendous opportunity. 

So, again, thank you. Thank you both, and thank you, Mr. Chairman. 

Mr. CHABOT. Thank you very much, Mr. Engel. 

I now recognize Eni Faleomavaega, the ranking member of this 

committee, for 5 minutes. 

Mr. FALEOMAVAEGA. Thank you, Mr. Chairman. 

Secretary Biswal, welcome back. Thank you for being here with 

us today. I have great hope that you will play an important part 

to work together to restore our U.S.-India relations. 

Your background as a former professional staffer of the House 

Foreign Affairs Committee and also the unique perspective you 

have as a member of the Indian-American community I believe is 

a long-awaited combination that will help bolster relations that 

have lacked for too long. 

Madam Secretary, what do you foresee in this administration’s 

top priorities for strengthening our U.S.-India relationship? 

Ms. BISWAL. Thank you, Mr. Faleomavaega. 

You know, for India to be the power and reach the potential as 

a strategic power across the Asia region and across the globe, its 

first order of business will be revitalizing its economy. And we have 

a deep interest in partnering with India in that quest and 

partnering with Prime Minister Modi in that quest. 

I think that Prime Minister Modi comes in with strong wind at 

his back from the business community and confidence from the investor community about the plans that he has outlined and the vision that he has outlined for India’s growth. 

We think that the United States, that American companies will 

bring a tremendous amount of technology and support to be able 

to help that, and we look forward to doing that. 

We also think that, as India’s economy rises, that India will be 

increasingly a consequential player across the Asia region, and we 

think that that is aligned with our interests. We have shared goals 

and objectives, and we like to see that not only do we have shared 

goals and objectives, but that we work closely together in achieving 

those goals, because we will have far greater impact across the region and around the world when we align and work together. 

Mr. FALEOMAVAEGA. Secretary Kumar, your background is very 

impressive. You come to us with extensive global experience in the 

business world as an Indian-American financial consultant, highlyregarded advisor, and a Silicon Valley entrepreneur. 

You are also a poet. I love poems, too. My favorite poet is 

Rabindranath Tagore. 

Prime Minister Modi also is a poet, by the way. I believe poets 

view the world in a rare and distinct way. From your perspective, 

Secretary Kumar, both as a poet and as a business leader, what 

initiatives do you think the United States Department of Commerce should undertake to encourage private sector investment 

and to advocate for better market access for U.S. exporters? 

Mr. KUMAR. Ranking Member Faleomavaega, thank you very 

much for that very interesting question, combining two different 

sides of my life. 

30

But let me address that really from the Department of Commerce. We are very active in India with about 70 people on the 

ground in seven offices, and we are focusing on areas that are of 

importance to India as they revitalize the economy, to use a term 

that my colleague has stated. So, our view is to work with the Indian Government and the private sector business in India and here 

to contribute to that journey. 

Mr. FALEOMAVAEGA. I know my time is getting short, Mr. Chairman, but it is certainly good to see Dana here with us also. 

You know, for the past years, I have always complained about 

the fact that we did not seem to pay attention to the Asia-Pacific 

Region from previous administrations. And I am concerned about 

it even in this administration. The fact that two-thirds of the 

world’s population is in the Asia-Pacific Region, the fact that our 

economic interests are just as important and critical in dealing 

with the Asia-Pacific Region, and I am very concerned. 

I know my time is up, Mr. Chairman. Thank you. Appreciate it. 

Mr. CHABOT. Thank you very much. The gentleman yields back. 

The gentleman from North Carolina, Mr. Holding, is recognized 

for 5 minutes. 

Mr. HOLDING. Thank you, Mr. Chairman. 

First, a housekeeping matter. Secretary Biswal, if you could 

please outline what the State Department has been doing with regards to the jailing of Amway CEO Bill Pinckney? I believe he has 

been in jail now for 2 months and being held without bail. So, if 

you could detail that concisely, please? 

Ms. BISWAL. Thank you, Congressman. 

This has been an issue of very active engagement by the State 

Department, by our colleagues in the Commerce Department, and 

really across the U.S. Government. We have worked very closely 

and intensively with our colleagues in the Indian Government to 

address piece-by-piece all of the different aspects that stand in the 

way in achieving bail, hearing, and release on bail for Mr. Pinckney. 

We think that, while there may be concerns that the Indian law 

enforcement have, that no individual should be in jail for 2 months 

without bail. We think that that needs to be remedied and rectified 

as soon as possible. 

We believe we are making some tremendous progress, and we 

hope that we will have some very good news on that front soon. We 

have been working closely with our colleagues at Amway to make 

sure that we understand all of that, as well as having consular visits to Mr. Pinckney regularly by our Consul General in Hyderabad 

to make sure of his welfare and make sure that his needs are being 

addressed. 

Mr. HOLDING. Good. Thank you. And if you could keep us abreast 

of any developments in that, I would appreciate it. 

Ms. BISWAL. I would be happy to. 

Mr. HOLDING. I will address this to both of you regarding, first, 

to Secretary Biswal, what damage do you believe that the denial 

of a visa to then-Chief Minister Modi and the subsequent policy of 

the State Department that he has to apply in order to find out 

whether he would be approved or denied again, what damage do 

you think this has caused our relations with the Prime Minister? 

31

Now I realize that, as a matter of course, as Prime Minister, he 

is granted a visa as a head of state to come here. But I want to 

back up to the other issue of him as an individual being not granted a visa, kind of left in this limbo, especially considering the fact 

that he was cleared by the Supreme Court of India of any of the 

allegations made against him, which were the basis of the original 

denial of the visa. 

Ms. BISWAL. You know, Congressman, I would say that the administration is very much looking ahead, looking forward, and 

looking to the future in terms of building a very strong partnership 

with the Prime Minister and with his team, and strengthening the 

relationship between the United States and India. We think that 

we are on a path to do that. 

The President called Prime Minister Modi on the day that election results were announced and promptly established——

Mr. HOLDING. I realize that, but I don’t believe the State Department has changed its position that, if Mr. Modi were to apply, he 

would have to apply for a visa to figure out if he was going to get 

a visa as an individual. Don’t you think there ought to be an affirmative statement by the State Department or this administration that they recognize that he has been cleared of these allegations by the Supreme Court of India and that is lifted? 

Ms. BISWAL. I would just note that when the President invited 

Prime Minister Modi and welcomed him to come to the United 

States, that he did so knowing that visa would be granted for him 

to be able to do that. And we look forward to that. 

I think that we have always made clear for any individual that 

visa issues are determined on a case-by-case basis. That is not 

unique to the situation with the Prime Minister. 

But we look forward to welcoming him here and——

Mr. HOLDING. I do believe it is unique with Mr. Modi that he is 

the only individual ever to be denied a visa under the particular 

clause that he was denied a visa under. 

Ms. BISWAL. And I would just say that, while that was the incident that occurred in 2005, that since then there has been no application and there has been no review or determination. And so, 

there has been no hypothetical basis on which to make a determination. 

But we have definitively said that we welcome the visit of the 

Prime Minister. And therefore, we don’t believe that there is any 

further issue to be addressed with respect to that. I think the 

President has——

Mr. HOLDING. One final—and I will throw this out to both of 

you—has there been any statement by the Modi administration, by 

the Prime Minister himself or people in the administration, about 

the intellectual property and any perhaps changes to the intellectual property system in India to further align it with our intellectual property protections here in the United States? 

Mr. KUMAR. Congressman, I am not aware of any formal statements yet, but we have had conversations in my visit last week 

with a number of officials in the Indian Government about this 

topic and about a need to have a constructive dialogue on this 

topic. 

32

Mr. HOLDING. Well, if you could prospectively maybe keep us apprised of that, members of the committee who are also on the Judiciary Committee and follow these intellectual property issues closely, it would be helpful. 

Thank you, Mr. Chairman. I yield back. 

Mr. CHABOT. Thank you very much. The gentleman’s time has 

expired. 

The gentleman from California, Mr. Bera, is recognized for 5 

minutes. 

Mr. BERA. Thank you, Mr. Chairman. 

In my opening comments, I talked about the time for opportunity. As I think about the Indian-American community here—

and my parents immigrated here in the 1950s—in the past decades 

the Indian-American diaspora has made remarkable accomplishments here in America in a country of opportunity. 

So, the excitement of the elections in India that occurred, you 

feel that same ripple of excitement about the opportunity to create 

this partnership. It is exciting. As the only Indian-American Member of Congress, it is exciting to see two Assistant Secretaries sitting there from the community. So, this is a time of opportunity. 

I do think the administration has reached out immediately, has 

been very welcoming to the new Prime Minister, and really does 

reflect that opportunity. And vice versa, Prime Minister Modi ran 

on an agenda of reviving economic growth in India, building infrastructure in India, and realizing India’s full potential as a partner. 

And a partnership is a two-way street. So, I think we are going 

to see a solid foundation. In the next 2 months it will be exciting 

with three Secretaries visiting, Secretary Kerry, Secretary Pritzker, 

and Secretary Hagel. I think that offers to lay a foundation for this 

economic relationship and the geopolitical relationship. 

And then, that leads into the September visit of the Prime Minister, and I am excited that I, along with our colleagues, have really pushed the Speaker to extend an invitation to a Joint Session 

of Congress, which I do think allows us to continue moving forward. 

My questions, I think I will start with Assistant Secretary 

Kumar. When I was in India last year talking to Indian multinationals, and as they visit here in Washington, DC, an untold 

story is the Indian foreign direct investment here in the United 

States and the jobs that those create. 

With the energy renaissance we are seeing here in the United 

States, many of the Indian companies that are manufacturing products to sell here in the domestic market really see an opportunity 

to make those investments and build those factories here in the 

U.S. From your perspective, what should we do to set the table for 

more of that foreign direct investment? 

Mr. KUMAR. SelectUSA is a program that I mentioned. We are 

very active in India in promoting investment from India into the 

U.S. The current level of investment from India to the U.S. is about 

$9 billion. This covers a wide variety of industries. 

In fact, just to mention one from your State, we have a company 

that recently invested to build an electric two-wheeler. It was developed in Palo Alto, and it is going to be manufactured in Ann 

Arbor, Michigan. 

33

Another example from the State of North Carolina is an Indian 

textile company is creating a unit in North Carolina that will create jobs in North Carolina. 

So, we are very encouraged by the interest of Indian companies. 

As they go global, they see the U.S. as the best place to invest. 

They see the U.S. as a place that provides a global platform to go 

to other countries. And I am looking forward to seeing more investment from India. 

This coming week, in fact, next week, before we go to Delhi, before Secretary Pritzker goes to Delhi for the Strategic Dialogue, she 

lands in Mumbai and will have a signing ceremony for an agreement with the Ex-Im Bank of India for them to support Indian 

companies investing in the United States. So, this is a great example of two-way economic relationships. 

Mr. BERA. Absolutely. And from our perspective, you know, when 

we look at India’s demographics, it has a very young population. 

I think one of the assets we have is our system of higher education, 

our system of community colleges. 

And maybe I will direct this question to Assistant Secretary 

Biswal. I think there is a very real opportunity for our institutions 

of higher learning to help develop a similar system in India to educate/train that workforce to realize a very unique asset to India. 

Your thoughts? 

Ms. BISWAL. Absolutely, Congressman. I would just note on your 

previous question I just want to make the comment that Indian investment in the United States has also resulted in over 100,000 

jobs in the United States. So, I think that that is a powerful example of the two-way trade and the two-way benefits of this relationship. 

With respect to skills in higher education, this is a big priority 

for the Modi government. The Prime Minister raised this in his 

meeting with Deputy Secretary Burns. It is an active area of engagement through our higher-education dialogue. We are looking at 

not only how U.S. institutions of higher education, our universities, 

can partner with India, both in terms of Indian students studying 

in the United States as well as opportunities to expand access to 

education in India. 

The other major aspect that we are looking at is a community 

college initiative, how the very excellent community college system 

in the United States, which really expands access to higher education to so many millions of Americans, how that system can also 

partner with India to advance access to vocational education and 

skills for an Indian workforce that is increasingly going to be needed for India’s economy to grow. 

Mr. CHABOT. The gentleman’s time has expired. 

The gentleman from Florida, Mr. Clawson, is recognized for 5 

minutes. 

Mr. CLAWSON. Having invested tens of millions of dollars in 

India myself, I have a little bit of understanding of your challenges 

and the opportunities. I always felt glad that I had a good partner, 

Bharat Forge, because India scared me. The bureaucracy scared 

me. The regulations scared me. The currency controls didn’t even 

seem fair. The import tariffs didn’t seem fair. It felt like my capital 

could flow in, but my profits could not flow out. And it felt like 

34

product from India can flow out, but product into India cannot flow 

in easily. In today’s world where capital generally has no barriers, 

it didn’t feel like a totally modern system. And so, therefore, I was 

glad that I had a very good partner who could help us through it. 

Otherwise, we may not have made the investments. 

As I see a new regime take hold in India, one who feels at least 

at the start to have a modern view of the world and a modern view 

of accounting, is this administration now committed to eliminating 

some of the currency regulations, import barriers, bureaucracies, 

and controls that make business one-sided and difficult for those 

that want to invest? 

Mr. KUMAR. So, Congressman, this is an important topic for us. 

I was in India, as I mentioned, last week meeting with officials, 

which was the first time we were meeting with the new government. And in all our conversations we talked about the importance 

of a new business climate, a climate that addresses exactly those 

kinds of issues that you talked about. 

India is interested in more investment to create jobs, and these 

are exactly the kinds of points that we will be making in our conversations with the Government of India and with the private sector and other stakeholders in India. 

Ms. BISWAL. So, I would just add to that to say, Congressman, 

that while we see some very hopeful signs, and the budget that was 

put out, the interim budget that was put out by the new government, was certainly a step in the right direction, that this is going 

to be a process that is going to have to unfold. And so, we look forward to continuing to see what steps the government takes to liberalize its economy and to attract greater trade, greater investment, 

which are all their stated objectives. 

Mr. CLAWSON. I am glad that India companies invest in the 

United States, and only private investment produces good-paying 

jobs. Governments do not. And capital votes by walking. 

And so, therefore, I would just like American businesses to have 

the same fair shake in India that Indian businesses have here. 

That has been the ongoing relationship that will be of interest to 

me, because I think fairness for our country—our trade deficit is 

hundreds of billions of dollars. And some of that is artificial and 

it doesn’t have to be there. 

So, just as your capital is welcome here to produce good-paying 

jobs in the U.S., I would like our capital to be welcome there, and 

there to be freedom of capital, so that both sides are on the same 

territory. And I ask cooperation and commitment and priority from 

your government in so doing. Can I have that? 

Ms. BISWAL. I think your question is to the Indian Government, 

and we certainly share your sentiments. We certainly will advocate 

that on behalf of the U.S.——

Mr. CLAWSON. Of course. And I am asking your opinion of how 

they view that. 

Ms. BISWAL. Like I said, I think we have heard a lot of very positive signals, a lot of positive intentions, and we will be engaging 

both through the State Department, through the Commerce Department, through our USTR, through our Treasury Department, 

to make sure that we are engaging on those issues and looking for 

the concrete steps forward. 

35

Mr. CLAWSON. Okay. Let’s see some progress. 

Ms. BISWAL. Absolutely. 

Mr. CHABOT. The gentleman is finished? 

Mr. CLAWSON. Yes. 

Mr. CHABOT. Okay. Thank you very much. 

Mr. CLAWSON. I yield back. 

Mr. CHABOT. The gentleman’s time has expired. 

I assume that the members heard the bells ringing, but we just 

have two more members. So, we should be okay with 5 minutes 

each. The gentleman from the Commonwealth of Virginia, Mr. 

Connolly, is recognized for 5 minutes. 

Mr. CONNOLLY. I thank my chair. 

And I would just say to our newest colleague, I would be glad to 

take you to my district. Government does create high-paying jobs. 

The three wealthiest counties in the United States are the wealthiest counties in the United States; they are all in Northern Virginia. 

Two of them are in my district. And it is because of the unique 

partnership between the Federal Government and the private sector in high tech, R&D, and defense contracting. The government 

most certainly does create good-paying jobs, at least in my part of 

the world. It isn’t just the private sector. 

I might also add that an awful lot of what has transformed the 

world was entirely a government investment. The idea that the 

government can do nothing right is nonsense. Look at GPS technology, 100 percent a Federal investment; the internet, 100 percent, called DARPANET, for 25 years a government-funded investment, not a dime of private sector investment. And it transformed 

the world. 

This notion that somehow the government can’t do anything 

right or, you know, it needs to just get out of the way, is not true. 

And at least my private sector and my chambers of commerce recognize how valuable and vital that partnership is here in America, 

and I assume it is also true in India. 

Ms. Biswal, I wanted to give you a chance because, unfortunately, I took advantage of the 25 seconds left to the chairman. You 

wanted to comment on Crimea, and I wanted to give you that opportunity. 

Ms. BISWAL. Only, sir, that we certainly agree wholeheartedly 

with your characterization and we continue to engage with our Indian friends to ensure that they understand our perspective. As I 

said, we strive to continue to bring our perspectives closer in alignment. 

Mr. CONNOLLY. Thank you. I wanted to give you that opportunity 

and I appreciate it, especially since you had the good sense to go 

to the University of Virginia and you were a staffer. I, too, was a 

staffer. 

I also want to identify myself with the remarks of Ami Bera, my 

good friend from California, who talked about the U.S.-India relationship perhaps being the defining relationship of the 21st century. I couldn’t agree more. I think that India is such an important 

potential partner, and we with India. I think it is actually potentially much more important than the Chinese relationship. 

36

We have lots in common. You know, we share a lot of language 

together. We have many common values. We certainly share democratic values in common. 

And I wonder if either of you would like to comment on that, because I think there are lots of prospects and I am very hopeful 

that, with the Modi visit here to Washington, we can cement some 

of those values and those relationships to move forward. 

Ms. BISWAL. You know, fundamentally, India’s rise and India’s 

democratic growth, democratic development, is a very important 

aspect not only in terms of what it represents in terms of opportunities for partnership, but it is also very important in terms of the 

example that it sends to the other emerging and developing economies around the world that democratic development does result in 

strong growth, inclusive growth, and opportunities for these countries. And I think that India represents that, and India’s success 

with that model is very much in the U.S. interest and that defines 

in many ways the core values of our partnership. 

Mr. CONNOLLY. Mr. Kumar? 

And then, Mr. Chairman, I am going to yield the balance of my 

time to Ms. Gabbard. 

Mr. KUMAR. Yes, I would just reemphasize the importance of India’s growth to our people. If you look at the last few years, U.S. 

exports stagnated when India’s growth stagnated. Years before 

that when India was growing, when it even passed double digits, 

U.S. exports to India grew significantly. So, we are very aggressive 

in India’s growth because that directly helps our people here who 

can export more, and we create jobs as a result here. 

Mr. CONNOLLY. Thank you. And I yield the balance of my time 

to Ms. Gabbard. 

Mr. CHABOT. The gentlewoman from Hawaii is recognized. 

Ms. GABBARD. Thank you very much, Mr. Chairman, Mr. 

Connolly. 

Thank you both for being here. It is great to see you, as always. 

I will keep this brief. A lot of great points have already been 

brought up. My questions will really be more on the opportunity for 

us in the security partnership front with India. 

I think that recognizing the opportunity that exists with this 

change of leadership in India must be seized by us in a way that 

is very proactive and sensitive to what has occurred in the past, 

and done in a way that India understands that we greatly value 

the opportunity for both of our countries as we move forward. 

I am wondering if you can just speak a little bit about what the 

security cooperation is that we look forward to achieving, especially 

as we look at all of the things that are happening in the world and 

different relationships, but especially as we look at Afghanistan 

and the path going forward, and India’s vested interest in the region, but also India’s current presence already across the country 

of Afghanistan. 

Ms. BISWAL. Thank you, Congresswoman. 

What I would note is that, shortly after we have the Strategic 

Dialogue, Secretary Hagel is also looking to go to India in early August. One of the key objectives there is to be able to engage with 

the Indian Government to map out their priorities in terms of 

where they want to see the defense partnership go and what we 

37

see as the potential, both short-term and long-term, for that relationship. 

This is a defense partnership that has seen tremendous growth 

over the past decade, and we do more military exercises, for example, with India than with virtually any other country. Right now, 

as we speak, India is participating in the RIMPAC exercises in 

Honolulu for the first time, and we have the Malabar exercises, 

which are trilateral this year with India, the U.S., and Japan. 

We see great prospects for deepening that cooperation, but we 

also see that, as India seeks to create a defense manufacturing 

base and as India seeks to modernize its defense sector, that the 

United States is going to play a critical role. We seek to deepen 

that partnership, to look for opportunities for co-development and 

co-production in that range. Because as India’s capacity grows, the 

ability of India to be a force for stability and security across the 

Asia-Pacific grows as well, and that is something that we very 

much support. 

With respect to Afghanistan, Congresswoman, we have very close 

consultations with our colleagues in India about how we see that 

transition in Afghanistan unfolding. We had an opportunity to have 

some extensive conversations during the visit of the Deputy Secretary 2 weeks ago. And I know that that is a key aspect for the 

agenda for Secretary Kerry for his visit next week. We will continue to look for ways that the United States and India and the 

other countries in the region can work together for stability and security in Afghanistan, which is certainly in the Afghans’ interest, 

but also in the interest of all the countries of the region. 

Ms. GABBARD. Quickly, and forgive me if you already talked 

about this, but what are the prospects of the timeline like for appointing a new Ambassador to India? 

Ms. BISWAL. Well, as you know, it is going through its own internal process of the White House. This is a big priority for the administration, for the President. And so, we hope that we can conclude the internal process sometime soon, and then, it will be with 

the legislative branch for Senate confirmation. 

But this is a big priority. It was, therefore, a decision of the administration to place Ambassador Kathy Stephens there as charge’. 

She is one who brings great skill and experience and expertise, and 

particularly her experience in East Asia as Ambassador to Korea 

has been very welcome as well. 

Ms. GABBARD. Great. Thank you. 

Thank you, Mr. Chairman. I yield back. 

Mr. CHABOT. The gentlelady yields back. 

I would like to thank the panel for their very excellent testimony 

this afternoon. I would note that members will have 5 days to revise their statements or submit questions in writing. And if there 

is no further business to come before the committee——

Mr. FALEOMAVAEGA. Will the chairman yield? I’m sorry. 

Mr. CHABOT. Yes, I would be happy to yield to the gentleman. 

Mr. FALEOMAVAEGA. I just want to personally thank you again, 

Mr. Chairman, for your leadership in having this hearing today, 

and certainly thank our witnesses for coming. I look forward to 

continuing a good working relationship with you, Mr. Chairman. 

Thank you. 

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Mr. CHABOT. I am committed to that for sure. 

And you are welcome. 

Thank you. 

We are adjourned. 

[Whereupon, at 5:09 p.m., the meeting was adjourned.] 

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A P P E N D I X 

MATERIAL SUBMITTED FOR THE RECORD

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PREPARED STATEMENT SUBMITTED FOR THE RECORD BY THE HONORABLE EDWARD R. 

ROYCE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA, AND

CHAIRMAN, COMMITTEE ON FOREIGN AFFAIRS

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