In suddenly mighty India, America is fading

For The Register-Guard

Posted to Web: Wednesday, Jan 26, 2011 05:37PM
Appeared in print: Thursday, Jan 27, 2011, page A9

 

The last couple of months have erased any doubt about how open India is for business with the rest of the world. One after another, the leaders of all five permanent members of the United Nations Security Council came calling on India’s political and business establishments.

British Prime Minister David Cameron was the first to visit. Then came President Obama, whose visit was right after the “shellacking” he and the Democratic Party suffered at the midterm elections. The Americans had barely left the country when French President Nicolas Sarkozy arrived with a huge delegation that included seven of his ministers and more than 60 business leaders. Finally, December ended with state visits by China’s Wen Jiabao and Russian President Dmitry Medvedev.

The visits were intended to strengthen economic ties, in contrast to the Cold War geopolitical calculations that shaped leading nations’ policies toward India in past decades. Prime Minister Wen made this clear when he publicly expressed his displeasure at the Indian media that constantly questioned him about the political differences between the two countries, when he was focused on the rapidly growing trade relationship.

By the way, China runs a trade surplus with India, as it does with America.

The impression is that the French were the big winners. The total of the Indo-French civilian and military deals is estimated to be more than double the value of agreements that America negotiated with India.

Russia and China have another mutual economic relationship with India, and also with Brazil. These countries are collectively referred to as BRIC, and their third summit meeting will be in China this year.

This could soon take on a plural form, BRICS, with the inclusion of South Africa, which has been invited as an observer. As one reporter phrased it, BRIC is “emerging as a symbol of gradual transfer of economic power from the West to emerging economies.”

While visiting India from America, I felt the urgency to stand up and paraphrase Mark Twain’s comment that reports of his death were greatly exaggerated. But there is no point in bemoaning the premature declarations of America’s and the West’s demise because of the enormous sense of economic confidence that is prevalent in India.

The rhetorical “yes, we can” that has become a faded memory in America is fully alive and well in a vibrant India. An analysis in the publication Business India noted that unlike the past when “Indians as a community were low on the confidence quotient,” now things are different — “the overall growth in this decade has increased the confidence of all Indians.”

Such attitudes are reflected even at casual conversations when I am the American representative. By chance I met a retired physician, who wasted no time to ask me “how come America is in so much trouble while India is flourishing.” Her husband, who is now retired after a career as an executive with an Indian multinational company, commented that perhaps only university teaching and the medical professions were safe in America. Even two years ago, I would certainly not have faced those kinds of questions and comments during a visit to India.

Economic collaborations are happening in unexpected areas. The headline of a newspaper item was one such shocker: “China gives green light to first ‘Made in China’ Bollywood film.” China’s official film production company is backing a $10 million movie that will be set in India and China, and will star a few of India’s leading actors.

While not intended as a statement on the current economic climate, the title of this Chinese-Indian Bollywood movie is absolutely appropriate — “Gold Struck.” With a combined population of nearly 2.5 billion, “Chindia” has a large and growing movie market. If “Gold Struck” succeeds and is followed by more, one can imagine the implications for one of America’s famous and valuable brands ever — Hollywood.

It is depressing that we in the United States. seem oblivious to such rapidly transforming economic realities in other parts of the world. Even more worrisome is the appearance that we are fixated on trivialities from “Jersey Shore” to the president’s birth certificate. I suppose I have a tougher job ahead in my classes when I discuss global issues with students!