Obama announces India trade deals

Birds fly past a billboard depicting U.S. President Barack Obama in MumbaiA huge security operation is in place in Mumbai, scene of terror attacks in 2008
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US President Barack Obama is due to arrive in India on the first leg of an Asian tour designed to boost US exports and create jobs.

He will pay his respects to the victims of the 2008 Mumbai attacks when he flies into India’s financial centre.

Mr Obama will also meet local business leaders and American executives. US officials say they expect major contracts to be announced.

Mr Obama’s 10-day tour also takes in Indonesia, South Korea and Japan.

It comes in the wake of the Democrats’ heavy losses in the US mid-term elections, widely seen in part as punishment by for the Obama administration’s inability to drive down a stubbornly high unemployment rate.

Warship patrol

The BBC’s Sanjoy Majumder, in Mumbai, says that while residents are celebrating Diwali – the festival of light – celebrations in the city are muted by a huge security operation that has swung into action for the US president’s visit.

Thousands of Indian and US security personnel are deployed and a US naval warship is on patrol in the waters off the coast of the city, where in 2008 Islamic militants killed more than 170 people in a series of co-ordinated attacks.

But while the president will pay his respects to victims, he will also be seeking to drum up business for the United States, our correspondent says.

Before the trip, Mr Obama spoke of the need for greater US access to India markets as part of a drive to double US exports over the next five years and help revive the economy at home.

Trade between India and the US was worth about $40bn in 2008 – still significantly less than US trade with other partners like China and Europe.

‘Range of issues’

India’s Foreign Secretary Nirupama Rao has said Mr Obama’s visit will expand strategic ties between the two countries leading to a more “productive” partnership.

“We are not at a stage in our relationship perhaps for another big bang but certainly there will be positive outcomes,” Ms Rao said on Wednesday.

“We will see concrete and significant steps in wide range of areas that will expand the long-term strategic framework in a way that we can create productive partnership for the mutual benefit and [will be] equally important to give substantive content and shape to the global strategic partnership,” she said.

White House officials say the administration plans 17 or 18 announcements during the trip on a range of economic, security and political issues.

Later on his trip, Mr Obama will announce a “comprehensive partnership” including economic ties in Indonesia, attend a G20 summit of global economic powers in Seoul and participate in an Asia-Pacific economic forum in Yokohama, Japan.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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