Substantive steps

US President Barack Obama’s visit to New Delhi was marked with exceptional atmospherics. The chemistry between him and his host was visible to all who saw their interaction on TV or otherwise. Clearly Prime Minister Modi had pulled all stops to make the trip a memorable one for the US President. There were many firsts, including his being the first US President to come to India as the chief guest for the Republic Day parade, and some great moments of interaction between the two leaders. The transformation of the Indo-US relations is such that the chill that followed the Devyani Khobragade affair has receded to distant recesses of memory. As we look beyond the pageantry and the sartorial flourishes, we should recognise that there has been substantial progress on issues that were stalled due to various reasons.
For India, the major takeaway is the progress on the civil nuclear deal, where the Indian insistence on the liability of suppliers in case of a nuclear accident and the US demands on tracking the nuclear materials were bridged. The logjam has been broken, and now the field is open for US firms to bid for Indian projects. Naturally, this will only happen after they have examined the fine print of the deal and evaluated their options. The devil is always in the detail.
The US has got the Indian commitment on fighting climate change through clean energy projects and providing efficient solutions. Environmental and developmental goals can thus be achieved in tandem. India has also assured the US that it will protect intellectual property rights and nurture innovation. US companies will also look at Indian promises to improve the ease of doing business in the country. Some progress has been made, but a lot more needs to be done.  
The shared unease about some of China's maritime expansionist tendencies may have a long-lasting effect on Indo-US relations. The perceptions of the two leaders are complementary on this issue, and this can lead to substantial strategic cooperation as the two powers seek to counterbalance the regional giant. The US also supports India getting a seat as a permanent member in a reformed UN Security Council, something that was reiterated during this visit. Strategic cooperation between the two countries will increase. Joint exercises between the armed forces and expanded counter-terror cooperation are planned. The ministerial-level Defence Technology and Trade Initiative will be strengthened, with joint production and co-development of defence systems.
Untapped potential is sought to be exploited on the economic front. Only 1 per cent of the American exports come to India, and bilateral trade is less than one-fifth of the US-China trade. However, the last three years have been good, with trade increasing by 60 per cent.  President Obama promised $4 billion in investments and loans. While the US Export-Import Bank will finance $1 billion in exports of 'Made-in-America' products, a similar sum has been earmarked for the US Overseas Private Investment Corporation to lend to small and medium-sized enterprises. The US wants to partner India in solar and sustainable energy solutions and for this Obama has committed $2 billion through the US Trade and Development Agency.
The two sides have announced “deepening collaboration to combat the full spectrum of terrorist threats”.  They strongly condemned “terrorism in all its forms and manifestations” and agreed to share information on known and suspected terrorists.  The call for Pakistan to bring the perpetrators of the November 2008 terrorist attack in Mumbai to justice underscores the distance the US has travelled to assuage India's concerns. India is aware that Obama faces a non-cooperative Congress, although significant Republicans leaders have spoken in favour of the initiatives during the visit.
Obama also put some emphasis on the social agenda. During his various interactions, he stressed on the need to empower women, declaring “Every daughter deserves the same chance as our sons,” which will find resonance with the recent programmes initiated by Modi. The US President's comment that “everyone has the right to practise their faith without fear of persecution, discrimination,” while unexceptionable, will raise some hackles.
The bonhomie between the two leaders has triggered some negative comments from India’s neighbours. The bedrock of the relationship between the two largest democracies, however, is shared values, even if the world view of Washington and Delhi differs at times. Now more common ground has been discovered and while President Obama’s comment, “I believe America can be India’s best partner,” may sound a bit premature, it does signal a welcome upbeat note in Indo-US relations.