US-India Space Cooperation
U.S.-India Space Cooperation
Center for Strategic and International Studies (CSIS) November 17, 2006
BARBOUR GRIFFITH & ROGERS eMR Technology Ventures
SM
Griffith & Rogers
Steptoe & Johnson LLP
U.S.-INDIA BUSINESS COUNCIL Accenture Adobe Systems, Inc. Akin Gump LLP Altria Group, Inc. AM General LLC Amas Investment & Project Services Amway Corporation Andrews Kurth LLP Baker & McKenzie LLP Bank of America Bloomberg Boeing Company Cargill Caterpillar, Inc. CBay Systems
31 YEARS ofGeneral GROWING ENTERPRISE Chevron Dynamics McGraw-Hill Target Corporation CMS Energy General Motors The Coca-Cola Company Gerson Lehrman Group Computer Associates Guardian Life Insurance Covanta Energy Gerson Lehrman Dell Computer Corp. Guardian Life Insurance Deloitte & Touche Hughes Network Systems Discovery CommunicationsIBM, Corporation Dow AgroSciences IDFC Ltd. Dow Jones Johnson & Johnson DuPont, Inc. J.P. Morgan Chase eBay Inc. K. Raheja Universal Estee Lauder Kotak Mahindra Ford Motor Company L-3 Communications Fremont Group Limited Lockheed Martin
Merck & Co. Tata, Inc. Microsoft Corporation Texas Instruments Monsanto Textron Inc. Motorola, Inc Time Warner Inc. News Corporation Ltd. Thomson Financial Northrop Grumman United Parcel Service Oracle Corporation Vickery International PanAmSat Wal-Mart Inc. Paul Weiss LLP Watson Wyatt Worldwide Pfizer Inc. Xerox Corporation Pratt & Whitney/United Technologies Sony Pictures Entertainment Standard Chartered Bank
Delhi, Capital City POP: 13 million
Cong+
219 Seats
BJP+
189 Seats
Left
61 Seats
Others
70 Seats
Bangalore “Silicon Valley of India” POP: 7 million
Political Consensus in Favor of Reform Coalition Governments are here to stay Power is devolving to the States
India’s Economic Leadership •Considered the “Father of India’s Economic Reforms” •Economist by training, Strong free-market advocate •Excellent rapport with President Bush
Manmohan Singh Prime Minister
Montek Singh Ahluwalia
Planning Commission Deputy Chairman •Private / Public Sector Interlocutor •Economist by training, Oxonian •World Bank background / Easily accessible
P. Chidambaram Minister of Finance
•Dream Budget visionary •Supreme Court Advocate, Harvard MBA •Pragmatic reformer
Pokharan and Sanctions Cold War Legacy – India’s reliance on USSR U.S. Sanctions imposed in 1998 for nuclear tests Sanctions lifted by President Bush after 9/11 India declares itself an ally in war on terror Tsunami Cooperation Strategic partnership lift-off in July 2005.
Transformation of the IndoUS Partnership After September 11… India pledged support Common enemy identified: international terrorism – (12/13/01) President Bush and PM Vajpayee initiated Space Cooperation initiative – (11/01) Next Steps in Strategic Partnership (1/04) JWG on Civil Space Cooperation (3/05) PM Singh visits the US – (7/05) Science and Technology Agreement (10/05) President Bush visits India – (3/06)
Two-Way Trade: To Double in Next Two Years 30
Services Trade with US Goods Trade with US
26.8
Indian exports to US Indian imports from US
25
19.6 20 17.4
$ bln.
16.5 15.3 15
13.3 12.3
10
9.3
11.7
10.9
8.5
11.5
8.7 9.5
6.5 5
6.3 4.4 3.0
3.1
2000-01
2001-02
5.0
0 2002-03
2003-04
2004-05
2005-06
Billion
U.S High Tech Exports 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 2002
2003
2004
2005
Year
US High Tech Exports (in $bn)
2002
2003
2004
2005
High Tech Exports to India
$1.26
$1.31
$1.51
$2.05
High Tech Exports to China
$8.23
$8.29
$9.42
$12.32
$178.6
$179.8
$201.4
$215.6
High Tech Exports to the World
Civilian Nuclear Cooperation Update on S. 3709: United States-India Peaceful Atomic Energy Cooperation Act India’s economy growth = Energy Security Imperative India’s Nuclear Capacity: From 3,500 to 40,000 MW ? India’s installed capacity: 132,000 MW Needs augmentation of 100,000 MW in next 5 years At $1bn / 1000 MW – Massive FDI Required
Next Steps: Nuclear Initiative House and Senate version reconciliation Full Congressional vote on the Final Bill 123 Bilateral Agreement IAEA Inspection/Safeguard Agreement Nuclear Suppliers Group (NSG) approval
U.S.-India Space Partnership Indian Space Program 5th largest: U.S., Russia, Europe, China $450 mn annual budget: lower wage equivalent to multi-billion dollar program Space Exploration – Chandrayan I: India plans to launch its first unmanned mission to the moon by 2008 Export Control Regimes; Strategic Partnership Challenges Next Steps: Commercial Space Launch Agreement – ISRO
Space Cooperation Important Component of Strategic Partnership
Economic, Ideological, and Strategic Partners Coherent democracy; Pluralist; Secular 1/5th World’s Population; Second Largest Military Common Values: Anti-Terrorism, Anti-Human Trafficking, Anti-Narcotics Ideological Partner re: Nepal, Sri Lanka, Bangladesh, China Common Law Judicial System 2nd largest number of doctors, engineers and PhDs in the world 100,000 Students to U.S. Each Year 1.8 mil Americans of Indian Origin Politically significant; Politically integrated 54% of Indian Population is under the Age of 25
India is Rising, Becoming Vital to U.S. Interests
Center for Strategic and International Studies (CSIS) November 17, 2006
BARBOUR GRIFFITH & ROGERS eMR Technology Ventures
SM
Griffith & Rogers
Steptoe & Johnson LLP
U.S.-INDIA BUSINESS COUNCIL Accenture Adobe Systems, Inc. Akin Gump LLP Altria Group, Inc. AM General LLC Amas Investment & Project Services Amway Corporation Andrews Kurth LLP Baker & McKenzie LLP Bank of America Bloomberg Boeing Company Cargill Caterpillar, Inc. CBay Systems
31 YEARS ofGeneral GROWING ENTERPRISE Chevron Dynamics McGraw-Hill Target Corporation CMS Energy General Motors The Coca-Cola Company Gerson Lehrman Group Computer Associates Guardian Life Insurance Covanta Energy Gerson Lehrman Dell Computer Corp. Guardian Life Insurance Deloitte & Touche Hughes Network Systems Discovery CommunicationsIBM, Corporation Dow AgroSciences IDFC Ltd. Dow Jones Johnson & Johnson DuPont, Inc. J.P. Morgan Chase eBay Inc. K. Raheja Universal Estee Lauder Kotak Mahindra Ford Motor Company L-3 Communications Fremont Group Limited Lockheed Martin
Merck & Co. Tata, Inc. Microsoft Corporation Texas Instruments Monsanto Textron Inc. Motorola, Inc Time Warner Inc. News Corporation Ltd. Thomson Financial Northrop Grumman United Parcel Service Oracle Corporation Vickery International PanAmSat Wal-Mart Inc. Paul Weiss LLP Watson Wyatt Worldwide Pfizer Inc. Xerox Corporation Pratt & Whitney/United Technologies Sony Pictures Entertainment Standard Chartered Bank
Delhi, Capital City POP: 13 million
Cong+
219 Seats
BJP+
189 Seats
Left
61 Seats
Others
70 Seats
Bangalore “Silicon Valley of India” POP: 7 million
Political Consensus in Favor of Reform Coalition Governments are here to stay Power is devolving to the States
India’s Economic Leadership •Considered the “Father of India’s Economic Reforms” •Economist by training, Strong free-market advocate •Excellent rapport with President Bush
Manmohan Singh Prime Minister
Montek Singh Ahluwalia
Planning Commission Deputy Chairman •Private / Public Sector Interlocutor •Economist by training, Oxonian •World Bank background / Easily accessible
P. Chidambaram Minister of Finance
•Dream Budget visionary •Supreme Court Advocate, Harvard MBA •Pragmatic reformer
Pokharan and Sanctions Cold War Legacy – India’s reliance on USSR U.S. Sanctions imposed in 1998 for nuclear tests Sanctions lifted by President Bush after 9/11 India declares itself an ally in war on terror Tsunami Cooperation Strategic partnership lift-off in July 2005.
Transformation of the IndoUS Partnership After September 11… India pledged support Common enemy identified: international terrorism – (12/13/01) President Bush and PM Vajpayee initiated Space Cooperation initiative – (11/01) Next Steps in Strategic Partnership (1/04) JWG on Civil Space Cooperation (3/05) PM Singh visits the US – (7/05) Science and Technology Agreement (10/05) President Bush visits India – (3/06)
Two-Way Trade: To Double in Next Two Years 30
Services Trade with US Goods Trade with US
26.8
Indian exports to US Indian imports from US
25
19.6 20 17.4
$ bln.
16.5 15.3 15
13.3 12.3
10
9.3
11.7
10.9
8.5
11.5
8.7 9.5
6.5 5
6.3 4.4 3.0
3.1
2000-01
2001-02
5.0
0 2002-03
2003-04
2004-05
2005-06
Billion
U.S High Tech Exports 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 2002
2003
2004
2005
Year
US High Tech Exports (in $bn)
2002
2003
2004
2005
High Tech Exports to India
$1.26
$1.31
$1.51
$2.05
High Tech Exports to China
$8.23
$8.29
$9.42
$12.32
$178.6
$179.8
$201.4
$215.6
High Tech Exports to the World
Civilian Nuclear Cooperation Update on S. 3709: United States-India Peaceful Atomic Energy Cooperation Act India’s economy growth = Energy Security Imperative India’s Nuclear Capacity: From 3,500 to 40,000 MW ? India’s installed capacity: 132,000 MW Needs augmentation of 100,000 MW in next 5 years At $1bn / 1000 MW – Massive FDI Required
Next Steps: Nuclear Initiative House and Senate version reconciliation Full Congressional vote on the Final Bill 123 Bilateral Agreement IAEA Inspection/Safeguard Agreement Nuclear Suppliers Group (NSG) approval
U.S.-India Space Partnership Indian Space Program 5th largest: U.S., Russia, Europe, China $450 mn annual budget: lower wage equivalent to multi-billion dollar program Space Exploration – Chandrayan I: India plans to launch its first unmanned mission to the moon by 2008 Export Control Regimes; Strategic Partnership Challenges Next Steps: Commercial Space Launch Agreement – ISRO
Space Cooperation Important Component of Strategic Partnership
Economic, Ideological, and Strategic Partners Coherent democracy; Pluralist; Secular 1/5th World’s Population; Second Largest Military Common Values: Anti-Terrorism, Anti-Human Trafficking, Anti-Narcotics Ideological Partner re: Nepal, Sri Lanka, Bangladesh, China Common Law Judicial System 2nd largest number of doctors, engineers and PhDs in the world 100,000 Students to U.S. Each Year 1.8 mil Americans of Indian Origin Politically significant; Politically integrated 54% of Indian Population is under the Age of 25
India is Rising, Becoming Vital to U.S. Interests
