ANALYSIS-India-U.S. ties steady despite nuclear impasse
By Alistair Scrutton
NEW DELHI, Oct 18 (Reuters) - It was hardly the stuff of which a staunch U.S. ally is made.
Opposition in India to a landmark nuclear deal sparked vocal anti-Americanism from leftist parties, who said the country was in danger of becoming a U.S. poodle. That rhetoric may be further emboldened by the government's apparent climb-down on the deal.
But the spat cannot hide the fact the world's two biggest democracies are moving ever closer, with stronger military and diplomatic ties, while millions of middle class Indians turn to the United States for education, jobs and consumer goods.
The impasse over the accord -- which had been hailed as historic by both President George W. Bush and Prime Minister Manmohan Singh -- showed there may still be looming flashpoints like ties with Iran. Yet the fundamentals appear strong.
"The question is not whether India's relations with the U.S. will improve or not," said Naresh Chandra, India's envoy to Washington from 1996 to 2001.
"The question is at what pace they will improve."
Opposition to the nuclear deal from the government's communist allies has focused on the symbolism of closer U.S. ties. The left-of-centre Congress-led coalition has signalled it will back down rather than risk a snap election.
Under the accord, India could import U.S. nuclear fuel and reactors despite having tested nuclear weapons but not signed the Non-Proliferation Treaty.
The row saw a return to the leftist rhetoric that dominated India in the Cold War, when the country was run by socialist five-year plans and the government bought arms from the Soviet Union.
Now New Delhi and Washington are eager to feed off each other's economies, and work to counterbalance the rise of China.
This year, for example, India carried out one of its largest military exercises with the United States in the Bay of Bengal.
"This (the nuclear deal) is not the only matter on which our entire relationship depends," Foreign Minister Pranab Mukherjee was quoted in The Asian Age as saying.
STAKES ARE HIGH
Indeed, there is too much at stake for one deal to derail ties.
Trade is booming between the two economies. After years of free market economic reforms, India's IT and outsourcing sector is now closely tied to the health of the U.S. economy.
In the cities, many Indians are jettisoning saris for baggy jeans, and college kids greet each other as "dude". Indians make up the biggest number of foreign students in the United States.
"The heart and soul of the U.S. relationship is private investment," said Teresita Schaffer, South Asia program director at the U.S.-based Center for Strategic & International Studies.
A 47-country poll by the Pew Global Attitudes Project this year showed 59 percent of Indians had a "very favourable" or "somewhat favourable" attitude to the United States -- stronger than Canada or Britain and one of the survey's highest rates.
"The nuclear deal problem was a blip," said Kuldip Nayar, a political analyst.
"Middle classes are roped into globalisation and that means 300 million people are getting some U.S. influence."
The deal's setback still underscores how anti-U.S. grievances can become an electoral issue.
The entry of foreign retail has also been hindered as U.S. retail giant Wal-Mart become a lightning rod of protesters.
Many older leaders in India are the product of the Cold War era, as evidenced by the lukewarm backing the nuclear deal got from some ministers when the going got tough with leftist allies.
"There are still many politicians around who are old war horses from the Cold War," said Chandra.
Schaffer said warnings by some U.S. politicians for India to back down over closer ties with Iran, especially over energy, may have also sparked a political backlash against the nuclear deal.
"Iran is already an issue for the two countries and it could become more of a problem."
About 13 percent of India's billion plus population are Muslim and anti-Americanism can be a vote-winner.
"Anti-U.S rhetoric can still resonate among millions of Muslims," said political analyst Mahesh Rangarajan. "Many people still feel strongly about Iraq and Afghanistan.
All this means the government may tread more carefully rather than put U.S. relations on a fast track.
"Indo-US relations are related to domestic politics," Rangarajan added. "As India has coalition governments, so relations have to be careful ones."
NEW DELHI, Oct 18 (Reuters) - It was hardly the stuff of which a staunch U.S. ally is made.
Opposition in India to a landmark nuclear deal sparked vocal anti-Americanism from leftist parties, who said the country was in danger of becoming a U.S. poodle. That rhetoric may be further emboldened by the government's apparent climb-down on the deal.
But the spat cannot hide the fact the world's two biggest democracies are moving ever closer, with stronger military and diplomatic ties, while millions of middle class Indians turn to the United States for education, jobs and consumer goods.
The impasse over the accord -- which had been hailed as historic by both President George W. Bush and Prime Minister Manmohan Singh -- showed there may still be looming flashpoints like ties with Iran. Yet the fundamentals appear strong.
"The question is not whether India's relations with the U.S. will improve or not," said Naresh Chandra, India's envoy to Washington from 1996 to 2001.
"The question is at what pace they will improve."
Opposition to the nuclear deal from the government's communist allies has focused on the symbolism of closer U.S. ties. The left-of-centre Congress-led coalition has signalled it will back down rather than risk a snap election.
Under the accord, India could import U.S. nuclear fuel and reactors despite having tested nuclear weapons but not signed the Non-Proliferation Treaty.
The row saw a return to the leftist rhetoric that dominated India in the Cold War, when the country was run by socialist five-year plans and the government bought arms from the Soviet Union.
Now New Delhi and Washington are eager to feed off each other's economies, and work to counterbalance the rise of China.
This year, for example, India carried out one of its largest military exercises with the United States in the Bay of Bengal.
"This (the nuclear deal) is not the only matter on which our entire relationship depends," Foreign Minister Pranab Mukherjee was quoted in The Asian Age as saying.
STAKES ARE HIGH
Indeed, there is too much at stake for one deal to derail ties.
Trade is booming between the two economies. After years of free market economic reforms, India's IT and outsourcing sector is now closely tied to the health of the U.S. economy.
In the cities, many Indians are jettisoning saris for baggy jeans, and college kids greet each other as "dude". Indians make up the biggest number of foreign students in the United States.
"The heart and soul of the U.S. relationship is private investment," said Teresita Schaffer, South Asia program director at the U.S.-based Center for Strategic & International Studies.
A 47-country poll by the Pew Global Attitudes Project this year showed 59 percent of Indians had a "very favourable" or "somewhat favourable" attitude to the United States -- stronger than Canada or Britain and one of the survey's highest rates.
"The nuclear deal problem was a blip," said Kuldip Nayar, a political analyst.
"Middle classes are roped into globalisation and that means 300 million people are getting some U.S. influence."
The deal's setback still underscores how anti-U.S. grievances can become an electoral issue.
The entry of foreign retail has also been hindered as U.S. retail giant Wal-Mart become a lightning rod of protesters.
Many older leaders in India are the product of the Cold War era, as evidenced by the lukewarm backing the nuclear deal got from some ministers when the going got tough with leftist allies.
"There are still many politicians around who are old war horses from the Cold War," said Chandra.
Schaffer said warnings by some U.S. politicians for India to back down over closer ties with Iran, especially over energy, may have also sparked a political backlash against the nuclear deal.
"Iran is already an issue for the two countries and it could become more of a problem."
About 13 percent of India's billion plus population are Muslim and anti-Americanism can be a vote-winner.
"Anti-U.S rhetoric can still resonate among millions of Muslims," said political analyst Mahesh Rangarajan. "Many people still feel strongly about Iraq and Afghanistan.
All this means the government may tread more carefully rather than put U.S. relations on a fast track.
"Indo-US relations are related to domestic politics," Rangarajan added. "As India has coalition governments, so relations have to be careful ones."
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