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Wednesday 9 July, 2008
 11:36 | 4/Aug/2007 |  2 Comment(s)
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123

The 123 agreement is a fantastic tribute to the glory of the New Indian State.  I wouldnt want to give all the credit to the current Indian government though I have to agree that it must have taken nerves of steel to negotiate this.  But credit must go to the Indian Parliament and to the various democratic pressure groups that kept the Indian government on a leash so that they didnt concede too much to get this agreement done.  


Most of all credit must go to the Indian entreprenuerial class that made Indian economic progress possible. There can be no doubt that Indian GDP growth is despite our government and not because of it.  It is economic progress that that has compelled the US government to try and make friends with India. For more than fifty years, while India trudged the path of non-alignment, central planning and low growth ("the Hindu rate of growth") and the US government ignored India despite its democratic credentials.  India continues to make noises about non-alignment and central planning but it has freed its entreprenuerial energy and the resultant economic growth is not something the US can any longer ignore.  They want to participate in the Indian economic growth - develop trade and prosperity.  An India with 2-3% GDP growth they could ignore but not an India with a 7-9% economic growth.  


It is the economy, stupid. 

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