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tv   India Trade Relations  CSPAN  June 27, 2017 12:36am-2:16am EDT

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modi's visit to the white house. officials from the indian business units of boeing and general electric talk about the importance of the relationship. we will also hear from north carolina congressman george holding at this event hosted by the hudson institute. >> good morning to you and welcome to hudson institute. i am the president and ceo and -- of hudson institute. i am delighted to welcome everyone here this morning.
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today as i think everyone in this room knows, we kicked off an incredible week for the india-u.s. relationship. the first meeting with the indian prime minister and president trump. at hudson institute we are delighted to host this special event focused on the u.s.-india partnership. we are grateful to our friends at c-span for covering this event live. u.s. india bilateral trade stands at less than 1/5 of the u.s.-china $648 billion bilateral trade relationship. india is america's ninth largest supplier of imported goods and 18th largest export market. the world's first and the world's sixth economies respectively, we had hudson at hudson-- we institute believe there is significant room for growth.
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the u.s.-india relationship is an important one here at the institute. our salvation program directed by the former ambassador has been active on the u.s.-india trade relationship, the u.s.-india defense relationship, and the u.s.-india-japan trilateral relationship for some time now. i was very fortunate to be honored to be included in the briefing with prime minister modi during his last visit to washington. we are honored today to have the cochairman of the congressional caucus on india, the representative from north carolina here to offer keynote remarks. i will introduce him momentarily. we also have the excellent panel moderated by an ambassador who will be joined by the president of boeing india and the governmental relations leader for transportation at general electric, resident director at
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north america, and senior vice president of throw. -- withrow. allow me now to introduce congressman holding. he grew up in north carolina, attended wake forest university , clerked for u.s. district terrence boyle and practiced law before becoming the u.s. attorney for north carolina. he is the representative from north carolina's 13th congressional district, sworn in on january 2017, and serves on the ways and means committee. without further a do, let me introduce representative holding. [applause]
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>> all right. let me get all set up. this water bottle looked little funny at the front. thank you very much. a very warm welcome. i appreciate the opportunity to offer some remarks. it is kind of odd to be a with a -- here with a panel of folks who are actual experts on the u.s.-india relations and how we can foster deeper bonds he -- deeper bonds between our two great democracies. i would especially like to thank the hudson institute for hosting today's proceedings. between indiap
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and the united states is incredibly important. it is great to see such a turnout. for me, seeking ways to expand the u.s. india relationship always begins with dialogue and i will be the first to admit that some of these conversations are not always easy. they require healthy doses of honesty from both sides. when i was in india early this year, i believe for the fourth time, there was honesty on the concern of visas. last week in the ways and means committee we had a conversation with the trade ambassador and there was some frank discussion about tariffs and price controls on medical devices. i firmly believe these are conversations we have to have as they will cement what i believe will be the defining relationship between our two countries for the century. -- the 21st century. i am sure there are questions among you about why a congressman from north carolina
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is the cochair of the india caucus and how that same member got asked to give these remarks today. so, here is a marker. all politics is local, and in my constituency in north carolina, i am proud to represent over 20,000 indian americans. as an aside, upwards of 90% in -- of hotel rooms in north carolina are owned by indian americans. i saw a groundswell of support in my district, not only for his candidacy, but also for reinvigorating u.s. india relations. i am talking about indian americans who had never been -- ined in the political
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the united states and never turned out to an event or sought out a candidate or representative, but as they were interested in modi becoming prime minister and interested in this country, it was through talking to them about the bilateral relationship that i found myself very interested in u.s.-india policy. so i quickly realized the incredible potential that existed for an enduring partnership tween the oldest democracies, largest democracy. i know the oldest, largest talking point is what gets tossed around a great deal. i believe it is instructed -- instructive to examine what is at the core of the u.s.-india relationships and that is shared values affected by our belief in
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democracy. it is this and the people-to-people connections may -- by the indian-american that us to be such strong supporters of the bilateral membership. i am very bullish on the future of our relationship. i believe we can build off the strong gains we have witnessed over the course of the last few years and continue our progress forward. this visit should allow each leader, both great personalities, to reinforce why this relationship matters, with both sides of the equation expressing concerns they might have candidly, man-to-man.
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and over the course of the i am sure that there will be differences but i'm sure they will find significant areas of cooperation from enhanced security for nation to increased energy collaboration and more engagement on the economic front. i believe we find ourselves well-positioned to seize many of these opportunities. regardless, it is important to remember that for many years congress has been on the front lines of driving the u.s.-india relationship forward, and i think it will be even more because of the engagement with members of congress. that we have today no intention of taking our foot off the gas, as far as driving this relationship. reflecting on just the time in
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which i have had the privilege of being the cochair of the indian caucus, i feel like we have made a tremendous stride in a number of areas. that is not to say that we do not have a lot of work to do. i struggle when i think of a better way we can strengthen the u.s.-india relationship than bolstering business-to-business ties. trading opportunities will endure. besides economic benefits, it would be these relationships with great american and great indian companies, large and small, that will help us whether all the political travails that will inevitably arise.
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total trade of goods and services between the u.s. and india, the numbers are just south of 100 billion dollars a year. deficit with india remain for some unnecessarily high. especially as india continues its exceptional growth. i look at these figures and wonder what else can be done to further development of our economic bonds. hope springs eternal for ontinuation of ernest talks the bilateral investment treaty, which has been on the back burner for a while.
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would be more than welcome to get capital off the sidelines. this would have the added benefit of paving the way for agreements concerning a variety of sectors and industries, specifically in the technology and innovative space i think we have an incredible opportunity to further integrate our economies, countries, and and even governments for cyber security. it will be the innovation economy to allow them to overcome challenges over the horizon by unleashing the world's most innovative companies. whether you are the world's most innovative company in silicon valley or bangalore, these are staffed with incredibly creative people and talented workforces , and this collaboration will help further assist the prime minister in achieving and realizing his visions for
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programs such as digital india and the smart cities initiative, efforts the united states government should should also continue to robustly support with its expertise and resources. if we are going to be able to foster an ecosystem that enables the u.s. to become an even better partner in technology and innovative spaces, i believe we can realize even greater business and economic synergies. we all know about companies that have driven this impressive --wth, a number of which everyone on this panel is a part of those companies, i believe. there is also great potential in the defense and energy sectors. some of which are already being realized. i was proud last year during the last congress to author something signed into law that will bolster the ability of our
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two governments to develop and share cutting-edge defense technology. this is the language we had put into the nda. it was certainly my aim to encourage additional coproduction and codevelopment initiatives to help us grow business opportunities and achieve strategic objectives along the way. my visit to india early this , we had lots of discussions on how to have a synergy between making india and america first and that the two philosophies work well together. this is a positive step. we need to see this fully realized in the business-to-business space.
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expect we will also continue to see an increase in operation of cyber security, which i know is in the minds of everyone here today. challengesecurity like those in the indian ocean are those that we share together and we must tackle together. on the energy front, the united states has a significant chance to help india have a stable, affordable energy through unleashing new technologies that makes the extraction and export of shale oil and natural gas affordable. a very active member of the india caucus is here today, pete wilson, extolling the virtues of natural gas terminals in houston which i believe is online now . but in the meantime, we need to be prepared to further expand our renewable energy sector as these new technologies will
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become increasingly important to the energy mix of both of our nations. all of this, like our trade relationship stands to contribute to the economic success of both of our countries. more importantly, this type of cooperation stands to bring our two nations closer together which always must be the shared objective at the and of the day. -- at the end of the day. the united states is a natural india has india, and a very natural partner in the united states. i think it is incumbent upon all of us who are engaged on this issue and engaged on furthering our relationship, all of us that believe in the future that this will be a defining relationship for the 21st century. that we keep working hard.
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we keep progress in momentum going forward. with that, i thank you all very much. [applause] >> good afternoon. i am the director at the hudson institute. we are grateful for the cooperation we have received and
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the partnership. recognize those who put together this panel. president trump and prime minister modi are going to be meeting today. we already heard the congressman with reference to the u.s.-india relationship. the defining partnership of the 21st century, a term that has byn used i successive -- successive presidents of the usa in the last couple decades. india is often in the wall street journal. we'll all know that while values are a conceptual
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framework, the end of the day, relationships between nations also have to be measured, and they are often measured in terms of how well they do in commercial partnership and in trade and industry, which is why we have brought this panel to you today. the united states is india's second largest bilateral trading partner in goods and india is united states ninth largest bilateral trading goods. bilateral trade stands at an estimated $114 billion. around 100 million companies operate in the united states and have created close to 100,000 jobs here. they have invested more than $15 billion and u.s. companies have invested $28 billion in india just in the last three years.
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just to give you a measure of how things are moving, the u.s.-india defense trade was only $200 million in the year 2000. today it stands at about $15 billion with potential for much more. but, as the world's largest and the six largest economy, there is considerable room for for the growth -- for further growth. and the world bank annual report for 2017, on the eve of doing business globally, ranked india at 130 out of 190 countries. if there were greater income being done in india, perhaps more american companies would head to india. in the area of defense, for example, one of the factors can american rules and regulations on export controls
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and the indian desire for not being dependent purely on defense economics but also being able to make things and india. -- make things in india. so where do things stand? where will we see this relationship go forward? innovation between the u.s.-india promotion partnership. we have an excellent panel today with representatives from all of those who can be identified as the major players in the field of innovation and expansion of commercial ties between the united states and india. we have danny o'brien from general electric. he is the government relations leader for transportation and in this capacity he oversees ge's engagement on public policy issues. he has served as a longtime advisor in the u.s. senate where he was chief of staff to three
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senators. he managed political strategies for these national leaders and now is a government relations leader for ge and will play a crucial role in ge's expansion into india. then, to my right, senior vice president based in silicon valley, california. he is the leader of the new age business. none of this means anything to me because i'm not as technology conversant as most people might be. i am sure many other people are watching this discussion on c-span will be totally impressed.
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market transformation across the globe, he also carries that responsibility for north america business operations which are expanding. i will talk about them in just a minute. then we have james, who is the manages thehe office responsible for representing the interest in group countries and the region. academic ownerships, sustainability, business development. and most of you in this room would say, i would like to be -- i were fourth speaker is on his way, i am told. he is the president of boeing india and is running late. sure that is not in any way a commentary on billing arriving
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on time, most of the time. he is the vice president of boeing international and teasers -- serves as managing director of boeing defense india. he is based in new delhi and he is the most senior and country executive. he does business across three business units. before we get started on a discussion, a very quick rundown on the four companies represented on the panel and their business interests in relation to interest. ge has doubled its investment in india and delivered $3 million in economic value over the last three years. investors are mostly manufacturers. they invested $350 million as part of expansion and 2006, have
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a factory, $200 billion dollar factory that employs 13,000-15,000 people in india. boeing investment in india includes a new factory which plans for hornet fighter aircraft and it also has active footprint for helicopter production. it is doubling its resources from india. it works with aeronautic and roughly with parts built in india for around the world. another has a very large number of employees in the united states. half of the employees in the united states are working for them. over 150,000 people working here. so those who think this
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political relationship and of happenshe rhetoric that a lot is jobs are going to other way but no. india is actually creating jobs in the united states as well. its biggest geography by revenue in cities such as san francisco, dallas, new jersey. it has invested $500 million inquiry a u.s. cloud computing company last year. and different companies have entered into ventures including boeing, starbucks, they employ something like 22,000 people in north america and they are working currently to increase investment into india. eople in north america and they are working currently to increase investment into india. so those planning a trip to india in the future, you can have a new york flight to mumbai and kolkata as less. andillion in american 2008 over $100 million.
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enough of the introduction, let's get into the meeting. in thet question is title of our conversation today, innovation, many people talk technologyation as and how it has to do with information technology. where do things stand? where do we see them going forward? >> first of all, i am glad to be here. global base. the , 50% of that is in the united states. so, it innovation. i think first of all it is good to be on a panel with ge and boeing. know, if you are a student
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of innovation. if you have members talking about innovation, children coming and seeing the technology, there has never been a better time to be working in the space than right now. we have -- we are extremely proud to be associated with things round innovation. digital, cyber security, analytics, artificial intelligence. it means blackhawks. silicon valley and was ating, but today if you look innovation, a long global the unitedfrom states, we are the leaders in
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innovation. today, clients are looking for investments. clients are expecting us to be at the cutting edge of cyber security to keep their top bylaws safe. in order for them to be able to aliver health care or taking taxi driver from point a to point b. formve created a life innovation center in tempora-florida, for health care. a design center in brooklyn, new apps for company for whose you probably have on your cell phone. we have invested in cloud applications at our india office. whether you are on a google cloud, salesforce cloud, it is being delivered by employees working in your states. if your client is retailing at
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some regular retailers where you cyberchances are that security of their companies are being operated at our cyber command center in atlanta. so why are we doing this question mark we are doing this because technology is changing. without getting too technical about it, there is a lot more work and rapid prototyping and rapid applications. hat means you want to be closer closer to the clients. it's a longtime need. just in the last calendar 12 i'll try to do this in u.s. dollars and rupees, -- we were investing
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$5 million a day. we had net hiring from 14 campuses across north america for computer science graduates. in the next three months, we're going to be entering a turning point where closer to 50% of the north american work force will be -- we are responding to a need. that's a core business need. you're not responding to a political need or a regulatory need. we're responding to a business need. that's where the skills are, that's where projects are. so innovation is changing terms of delivery, it's changing in terms of technology, in terms of what needs to be delivered. technology is changing in terms of where it needs to be delivered. right now those who are responsible dch >> james, an icon in india, an
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icon in south asia, many, many businesses, and definitely bullish on the united states and the partnership what is your perception of the current status of u.s.-india commercial relations and how do you see them evolving? how do you see them actually reaching for the potential because each one of us probably figure out, do you think it has, it is close to its potential or nowhere near the potential? so what's holding it back and how does your company intend to expand at the same time growing the potential which has always been an objective? >> thank you and thanks for the invitation to gin the panel today you won't be surprised, we don't spend much time thinking about the politics of it but much more about the business
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opportunity in both collections. mr. shapiro: you can see our thinking by the nature of the kinds of transaction you mentioned a few of them. we are very open and have been quite successful in partnering th major u.s. companies to jointly address indian market needs, particularly in recent years where you talked about tarbucks but we also have with other international brands and particularly in aerospace we have been quite in the press lately in terms of the lockheed -- potential lockheed deal and our work with boeing. on the other side, coming into the united states, we're focused very much, there are 12 companies operating in north america from i.t. services, very ch along the same lines as renfro. but manufacturing plants, we
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have tube steel -- two steel plants, one in warren, ohio, and one in pennsylvania. we have a coffee plant, eighth o'clock coffee, we have significant r&d technology investments here. that's really, one of the reasons i was interested in joining the panel, that's where we see the attraction in the united states is that if you take one example, jaguar-land rover a major auto company we our motors, it's 100% local employees, maybe one or two people from the u.k. who came over to start it. and that is, i think, indicative of the kind of activity you're going to see where we're also partnering with universities because we see much cutting edge
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research here at u.s. universities and want to be closer to that cutting edge, closer to where that work is going on and to do that, we need to spend people here, need to support that research, we need to invest some time in research centers, recently maybe read about the investment at carnegie mellon to build a whole new cent threr to welcome at self-driving cars and other automation. those are the kinds of -- very exciting investments we're making in this country. we see it as very fundamental to the future of the group globally but here in the united states and in india. >> dan, g.e., an american icon definitely in business where innovation matters a lot. ow to you see innovation incomes of your sort of envisions of the u.s.-india partnership? and the reason why i say that as
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an important element is that obviously india sees itself as growing at a faster pace than many other economies in the world but it does not want to just be a market for products that are manufactured elsewhere. and just dumped on india. the way indians look at that, they see themselves as potential partners. if they are going to be partners, then the innovation. i recall, i went to a facility a g.e. facility in bangalor which focused on innovation and i was just wondering if you could share about how much that innovation drives your investments in the india-u.s. relations? >> thank, ambassador. g.e., as you mentioned, is a 125-year-old company. our relationship with india has been in place for decades. i think since 2000 we have some very instructive experiences to
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share that touch on the point that you just mentioned. mr. o'brien: you mentioned the plant in bangalore which is at the heart. g.e. is going in the direction they have industrial internet. many of you may have seen our quirky advertisements trying to attract young, smart, i.t. people to move a little further east to our g.e. company. part of our g.e. digital and innovation push hinges on, centered on, a facility we have in bangalore. one number you mentioned, g.e. has 21,000 employees in india. the trajectory since you last checked has gotten better. in bangalore, we have a few engineers, researchers, scientists working hand in hand
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with the research and development programs that we have here in the u.s. our facility, the john welch technology cent for the bangalore is probably one of our most modern and certainly our most integrated operations where we bring all the different, six, seven, eight, g.e. businesses together to develop applications that will serve across the board through something we sometimes call the g.e. garage. in other words, a way to access technology in one industry and apply it to another. in india, some of our results that tell the story that the ambassador just mentioned are simply, we recently last year opened a new wind farm in india. at is using blades, wind blades, turbine blades developed in bangalore. they were developed this bangalore for the indian market but they're in markets across the globe on every single continent right now.
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so technology innovation, collaboration, coming out of bangalore is not only serving the indian market, it's helping g.e. in its global reach. in addition, in bangalore alone, we've had 3,200 contributions for patent applications here in the united states. so g.e. writ large benefits from the human resources, the energy, he ideas, the intellectual capacity, the die namism of bangalore and india, not only as we expand our reach around the world and we're in about 180 countries right now with customer, but we also are active, engaged, resulting issues -- resolving issue, coming up with solutions for the indian market and customers. >> quick question before we move on. 3,200 patent aply cages for things developed in bangalore. what percentage is it of g.e.'s
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overall patent development application in the same period? mr. o'brien: that's a good question, i don't know the breakdown on it. but they span health care, health care products used in 7 countries around the globe. india, we have a whole range of accessibility and low price products. spans, as i mentioneding renewable, we're getting into our g.e. transportation story, the rail story that we'll touch on hopefully today. oil and gas. so almost every single key g.e. business, ands i said there are seven or eight of them, have inputs coming out of bangalore and out of our other facilities in india. welcome toanel -- we great to -- t is for you to join us, you have
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already been introduced. and we made a joke about the 3er7b from boeing, supposed to get flights on time, is late. we already shared some statistics about what boeing is doing in india, i would like you to update us and tell us how do you see the u.s.-india commercial relationship from boeing's relationship? >> great, again, apologies for being late. i got held up in another meeting. you know, look at the trend of demographic driven demand for aviation sectoring it's unstoppable. in the last three years, we have seen 20-plus percent growth in air traffic in india. should look forward. it's looking strong for the foreseeable future. primet, in today's op-ed, minister modi mentioned 200 aircraft.
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that's just a start. we project over the next 20 years, india will buy more than 850 aircraft. the future is bright for civil aviation from boeing's perspective, the other side of the situation is also defense, where the trade has gone from almost zero to about -- zero seven years ago to $15 billion plus. knock on wood but we have done pretty ok in that. we have provided compelling platforms to indian defense services. starting with c-17, chinook and apache helicopters urn production now and we look forward to further partnering with india as the work has been published under which we can do this. outlook is strong. building on a strong track record of success over the last five years. >> how about from india?
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mr. kumar: we have quadrupled our sourcing from india in the last three years. if it stays on track, the total sourcing for india from boeing will cross almost $1 billion by the end of this year. that's a significant trend on that. again, it's driven by competitiveness. it's not just, make in india, make in india. it helps translate the country, the strategy to the company but also helps us become more competitive. that's why we're doing it. the other part of the equation is innovation. we find lots of opportunities to find pockets of innovation in india. ou heard -- i heard a bit of g.e.'s talking about, we've seen that in space. that's why we're planning on doing more work in india. mr. haqqani: is there r&d taking place? mr. kumar: absolutely.
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we are building a significant presence in the country, in bangalore, some of the recent innovations, patents filed from there is cutting edge. mr. haqqani: we don't want to get into the politics but let us just say some people see a difficulty in having -- i mean, everybody is upbeat at the political and strategic level but at the business level i have seen stories that say prime minister modi wants to make in india, president trump wants to do everything in the united states. let me call a -- it may cause a bit of a problem. surely it is a -- there is a win-win available here. what do you see as the win-win? let's just go around with veryone. >> there is certainly rhetoric
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at i think -- i pay less attention to. and there's work to be done. mr. amarnath: today we are extremely bullish on the ability to deliver in the united states. just to give you a recent example here, on august 1, we'll be inaugurated an absolutely modern, next generation, what we in north perienced -- america. you are welcome to take a visit to the facility. terms of ponse in creating the facility is not about saying let's find a way to make it in the u.s.a. it is about saying, we deliver in the u.s.a., our needs are
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here, our clients exist here and our clients are expecting us to be on the cutting edge to take them to the next generation level. there are r&d budgets under severe constraints from our client's standpoints. i talk to many, many clients, they are scrambling for investments. and we prefer to -- and they prefer to see a partner who is willing to extend their in-house r&d. for us it's an investment. it's a multimillion dollar investment we're making for our clients in order for them to d some of the technologies in house to showcase what is possible. that's a partnership. we are investing to make our clients successful and that's an investment that's happening here. and you should continue to make as things are going forward. we are about to launch a 400-people delivery center outside of dallas, texas,
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specifically to address our processing needs in north america. we will be working with our clients there. there are lots of cybersecurity needs, there is a lot of needs in energy technology, again, i don't want to go into the weeds but these are technologies where we want to be at the cutting edge. and know what's happening here on the shores of the united states. r. haqqani: james? mr. o'brien: we need more -- >> we need more trade, not less trade. we import, we export from both india and the u.s. and many third countries. we need a kind of predictable, open trading system where we can continue to do that. mr. shapiro: products are get manager complicated, not less complicated. it's not possible to always just
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make the entire -- and you can see it from the joint ventures we have talked about. it's not practical, not feasible to make everything in one country. you're going to have to -- and we've already run into this in terms of some of the discussions about nafta. tracking things that go back and forth on the boarder from mexico in the process of getting made, maybe six or seven times. the same thing is true globally. particularly when they're, you know, when they're relatively easey to transport. so i think that, you know, our interest is to continue to see that system be strengthened and i think that's possible and both countries can see that this is about expanding trade between the two countries is really where the relationship has to go. mr. haqqani: do you see the challenge, there will always be a politician who sail will say, there's not enough jobs being
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created in india as a result of this partnership. i think james did the supply chains are the reality and everybody kind of benefits even if in a micro sense they may not be seen as much. where do you stand on that? mr. o'brien: i think everybody who is gathered here today is wanting to talk abindia and the u.s., commercial relationship, the top headlines and to drill down a little bit and do some hard thinking about what this relationship relies on. as i mentioned earlier, shared the story of our jack welch technology cent for the bangalore, the patents, intellectual contribution that we receive on -- helps incredibly in terms of that ledger of benefits to g.e. g. semplet a pro-free trade company. we're in about 180 countries. about half of our revenues come from abroad. we, as james just said, we embrace free trade. we see this benefits playing out
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every single day in communities across this country. as it relates to specifically to india, there -- the technology contributions can come from wind farms, it can come from manufacturing side. of g.e. transportation. our rail business. we just now are delivering the process of delivering 100 locomotives to indian raid railways. localization is the keyword here more so than outsourcing. local sargse is something where g.e. is required by make in india but also by a philosophy of wanting to get close to our customers. indian railways is this massive, tremendous industrial transportation infrastructure company and there is no way in 2017, 2018 g.e. could presume to meet indian railways' needs by producing and remaining isolated or somewhat in a silo here in the u.s.
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we have to be close to our customers, there's too much competition and products out there there's too much high expectation, understandably and necessarily, that we need to be -- wedded hip-to-hip with our customers. we have to go local and stay close to our customers that plays in both directions. mr. haqqani: just so i understand, 100 locomotives, in terms of number of locomotives you make generally, how much is that? mr. o'brien: 100 locomotives being manufactured out of the united states is the first wave of the initiative. mr. haqqani: out of pennsylvania, correct. i know something about this, there was a big thing about pakistan buying them when i was ambassador. mr. o'brien: 1,000 locomotives over the next 10 years is our commitment to indian railways.
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mr. haqqani: 1,000 locomotives is a lot of locomotives? mr. o'brien: it's the biggest deal we've signed in three decades. i was going to get there, i needed to drag it out, keep everybody interested. it is the biggest deal g.e. has had -- now that i'm being put to the task, $2.3 billion deal g.e. signed a year and a half ago with indian railways to deliver 1,000 loke mote is. i understand he know this is deal well because he worked on it in a different capacity in the past but we are committed to delivering 1,000, the first 100 come out of the united states then there's a progress i localization schedule as it moves forward. but as you talk about that, that potential conflict or the tension between localization, make in india, versus make in the u.s., the reality is the technology and a lot of key components as you move toward
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increased localization in india, still emanates in erie, pell, or grove city, pennsylvania. it comes out of our recent development operations in upper state new york or the combined research and development between new york and bangalore. mr. haqqani: and the fact that they are buying those locomotives keeps them in business because they wouldn't be manufacturing for anybody else. mr. o'brien: that's an important part. mr. haqqani: in the aviation sector -- sector, challenges, difficulties, any potential tension? is that a much shooter ride than the other sector? more difficult than any other. from a make in india perspective, we don't see it as a zero sum game. it's expanding the pie. just as you hire the g.e.
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locomotive example, you know, if the pie is growing that tremendously, it creates jobs here and it helps create jobs in india, which is a good, positive thing. mr. haqqani: and jobs will be created here as well. mr. kumar: absolutely, seattle, philadelphia, wherever the factories are. the reality is this is a competitive world. if we don't do it, somebody else will. whether we keep jobs in the u.s. or let them ship it to another place like russia or france, who will be suppliers. the reality is this is the growing demand, the growing pie here too.elps mr. haqqani: the rising tide
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lifts all boats. automation.ob how do you see that playing out? innovation will necessarily lead to greater automation, or some level of automation, does that affect job creation? or does that just alter the nape of the jobs, a new kind of job is created? it's going to be a question of retraining people and getting them to have different kind of skill. et's begin, again, with you. mr. amarnath: there are two caveats here. automation is here to stay and automation is here to expand. ic if i were to ask you are you still wanting to call your cab using a call center model, pick up and dial a 1-800 toll free number, you'd be say, what era
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am i talking about? is there anybody who still does that because they have an objection to using the car share, ride sharing services available on your iphones? ok. there's two people like that. that's interesting. that's interesting. you probably don't take that , ny cabs as some of us do we'll talk to you as well and get your perspective in a moment. automation is here to stay. as people who have been in i.t. and business services, we have een waves of, when i was learning, we had main frames. people said, main frames, what's going to happen with to the jobs. then it changed and they said how will we retrain the main frame guys? and then we had other technologies and then you have
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ecommerce and then you have digital. i think -- things have happened. it has never led to a scary future. it has led to expanding the pie. it has led to expanding of the industry. and it has made things easier in terms of ordering, expand, delivering and producing. i think -- a.i. right now, artificial intelligence, there is a lot more going on there in terms of the kinds of skills it needs. there are people in neuroscience, there are people in analytics, innovations are happening at the high school level. there's a high school in silicon valley, it's amazing what's happening there. i think there are some jobs that will get disrutchted. there are many other jobs that will get created. -- as i part of the
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said, there is no better time than now in terms o-- of being excited about technology. some of the things we're see, the skills, the opportunities we're launch, and some of the challenges you may see them having in terms of keeping up pace of delivering this kind of skills to the industry right now. mr. haqqani: and ina -- india and the yoits are partners in that for the foreseeable future. mr. shapiro: i also remain optimistic about the about of technology to transform the future in bases we can't predict. it's going to be on balance positive. but you have to acknowledge that there's a mismatch between some of the skills we have, both in the u.s. and in india, and some of the jobs that will become available or that are going to expand because of all this
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technology change. so this is a clear focus of us in both -- in in india for needs and in the united states in terms of investments by companies like t.c.s. and -- in stem education and really trying to partner on scale with companies like discovery to influence teaching of stem skills in public schools and training teachers on how do we change the way thinking is going on in terms of quantitative skills. i think it's -- while there will be what's needed are people that can think and think creatively. that creative element is where we need to focus our education because the routine tasks will become automated. we don't need some of the programming that was done by hundreds of people at t.c.s. doesn't need to be done by as many people now because some of the simple, basic stuff can be
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automated. we're moving up the food chain in terms of what do the people need? they need cutting edge skills in a.i. cutting edge skills in other areas that didn't exist 10 years ago. is that's where the investment needs to be made. i think if we continue to make those investments, we'll be in better shape. mr. o'brien: similar comments. high skilled workers are key to g.e. and are in large part a sector of the work force that we can't almost fully adequately address here from the u.s. work force. i hate talking about automation and work force sometimes it sounds a little academic when we're talking about people's lives and coming up with the right solutions for the right transitions to new
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. yes, there is some of that turned that is eliminating manufacturing jobs possibly here in the u.s., but at the same time we see jobs being replaced and we see them as highly-paid good ge jobs that communities can continue to build. ask i think as a look to the a look-- >> i think as to the future, automation is going to not necessarily take jobs away. we have to have a next generation it of intelligence, machine learning, and trying to support that. we have to work and be committing to that. prime minister modi and
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president trump meeting, talking about this is going to be the big process of creating the defining partnership for the 21st century -- each one of you both ofew minutes with them just before they decide on a kind of bilateral agreement of what will be the framework of this relationship moving forward. whoare of course people ,eed to advance your company always talking about big stuff and never having to get into the midi gritty. so you have to talk about something that is very relevant to what your company's is this interest are. what will you say about this to president and trump and modi for the partnership for the future?
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>> well, i would say the first isng is convergence which the foundation for everything that can be done. of indianent in terms side having to work, people working towards improving business. what has been done as an example of that? it is a work still in progress. will keep atr modi top 10.g to the 10, closer not top in terms of doing business. might ask from president trump would be this is a zero-sum guide lens. there is a win for america in this.
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>> similar. i would say from prime minister modi -- good ideas coming out. iom prime minister modi, would say, we certainly recognizes commitment to modernizing india's gerastructure and from a perspective, obviously we see lots of opportunities there across many different industries and we think it is good for business. we think it is good for india. indians. the economy, the environment. we see a lot of positive ways we think we can bring solutions to improving life in india and tremendousthe offerings india has for our companies. in terms of president trump, i think it would be a suggestion to remain open to free trade and looked deep into the advantages that are generated in this
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global economy on both sides. >> since the panel's on innovation i will handle it in an innovation mode which is what with.ountries are less world-class educational institutions. my personal view is that we will see innovation coming out of these educational institutions that will help transform the industries where in in terms of agriculture, health, well-being, energy, brand-new industries that are really going way our company operates and i know many other companies as well. so what can we do to expand the opportunity for exchanges between these universities, investments in university research going in both directions because these are really the engines of innovation. again, information
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technology hacks here, i think from prime minister modi's standpoint they are basically saying the government can do a lot in terms of manifesting times in telecoms growing but i think the government is absolutely putting a lot of emphasis and i think it has to be an ask of many of us. as far as president trump is concerned, i think i would probably say that information technology and the collaboration is actually one of the brightest spots to shiny spotlight on. this is an area that has done tremendously well. this is an area to focus on. despite how everything has been in the past, i think this is the day to day operations, fantastic.
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dramaticallyly no different skills. there is a lot of debate that has contributed to this topic. the time of action is now. cooperative positioning will go away as a country if we don't and not like in the united states. >> each of us has different experience. i was in china way back in 1980. everybody went around on a bicycle. 27 years. so, the country with one billion people can create many, many opportunities for everyone governing it, economic growth, and basically as of right now are the twoina fastest-growing economies in the world and yet on at least the
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face of growth in a short time if the environmental changes that you talk about, if they materialize. thank you folks. we will take questions. comments, not so much but if you can make short comments you are welcome. the microphone will be brought around to after you raise your hand in i will identify you. so those who want to ask questions, ask the panel or make comments on the panels comments. like that. first. and, please speak into the microphone so at least or sound can be on the tape if that your visual. arizona.roman from interested in education and technology, can you give us a little but more of an idea of how you recommend we go about timing is collaboration in schools. how communities can do their
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heart to step up and partner with you #>> who wants to take that question? mejames? was the question to ? >> whoever wants to answer. >> and, from a startup. think in myknow, i personal view, to replicate the silicon valley echo system is next to impossible. it isso unique unbelievable. but having said that, what i saws in the ecosystem in evidence in austin with the fantastic investments of big data analytics. fantastic innovations are happening in new york at syntax.
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betweenc collaborations biotech. i think the next generation of, you know, players and collaboration will be on picking teams for strategic development is a great idea because otherwise there will be too much generalissimo and not enough focus. this is something where encouraging. does anybody else want to say anything? >> no, i was going to say education on that front, you know, listen, the real and clear and present opportunity, especially in india -- where 100 are acquiring about eight year in do not have enough engineers not enough trained pilots or crew, so you know, there is a lot of demand. we can partner there and create
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opportunity. i think that is the way for the local companies. perspective, the individual companies have their own programs as it relates to employees actually spending times in local schools through some of the curricula and there are financial contributions as well and we also have a focus on trying to bring women into the traditional engineering environment. >> mike nelson. we are a startup in san francisco. we do web security and have three data centers in india. i am very glad cyber security was mentioned. i am even more glad that the ease of doing business or the inability to do business in india was mentioned because in our area, we have seen very comingictory messages
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out of the telecommunications regulatory authority of india. i've been working in this area have seenrs and i documents where in one paragraph it says something that sounds like let the market decide, let everything happen and then to progress later and says, this is so important, the cloud, the internet of things, we must plan, regulate, control it. so the document itself is inconsistent. so the question for mr. o'brien or anyone else who wants to suggestis, how do you that startups, either indian or american trying to go into india , makes sense of this very inconsistent, uneven regulatory environment. say on the want to spot because you have a lot more perspective than i do but our recent ge experience with our rail endeavor has been one where with prime minister modi's by
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hand, we prepared for the whole regulatory process of building a manufacturing facility. my colleagues prepared me for headaches is related to getting regulatory steps. we recognize 47 different regulatory steps we had to go through. i think it speaks to prime minister modi's commitment to creating, working with the state government, sort of a one-stop shopping on the regulatory side which has been very beneficial but that is the perspective of a very large company. >> what i meant was also identify what the regulations are, to be like that. the linguistic contradiction, get the hindi dictionary. [laughter] >> sometimes it is just -- not
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as complex. even if it is, figure out what the complexity is and then negotiate based on that, pointing out the inconsistency so they can be removed for moving forward and trying to do it. and you know, especially in moving spaces like cyber security, nobody really knows what it should be. a lot is going on, right? so if you discover inconsistency, talk to them. you know, we have seen a few argument you the will see it, you know, harmonized. there is no guarantee it will be harmonized to your satisfaction all the time, but it will be harmonized. >> even the seniormost dealing with the subject probably never typed because we had somebody who used to take dictation and shorthand when you first started
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out. i didn't on a small, portable computer so i had to educate myself to be able to come to where he am but if you are a bureaucracy you have it growing up. some of these things are new, some of the questions you are adding on by having said -- it comes from a younger person -- and what about a qualifier coming from an older person? but once you can actually sit down people and pointed out without being aggressive and without being dismissive, usually you do get results. have thempanies resources, the smarter ones get angry and frustrated much more quickly and they can somehow create collaboration to try and deal with the regulations and whatnot, it is not just for one company. you have to pull together. several can pull together and try to deal with getting the recommendations and figure it
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out. because the intention is quite clearly what the first part says, which is they really do want to open up. but you must understand that it bill was brought up on said the instinct is to be protective and this is something i tell international companies all the time, remember the defining experience of modern was the india company which claimed to trade and grow the company's so therefore there is a reluctance. understand you can deal with the psychology a lot better and then you can trade, do business, and be successful. that is my two cents. eggs i will give a much more practical answer. give a more> i will practical answer. we have an investment firm and we are very active in
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securities. a venture capital silicon valley who are investing firms.r security the defining question is, you also have exposure to india. there are indians without exposure. that is essential for them. a lot have also figured this out so sometimes it does not have to be your headache. there are firms that have figured this out. to make it a little more easy for your company. sometime later i can make some introductions if you would like. >> thank you. response. until you compensate the indian taxi drivers paying $25,000-one main dollars in new york to join a cap, until you introduce regulationsimilar
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to taxis and uber, i think we should go slower. i do a lot of work and trade policy. the love and friendship that you see exhibited here does not exist in trade policy between the u.s. and india. oneact, the wto as stopped -- because of a disagreement because of traditional trade issues which is very much a shame because this is preventing the wto from working on the joint issues you are discussing. my point is, i go to a lot of trade policy meetings, private sector. the association of manufacturers. your companies are representing the american companies but you never know anything about india. your guys are talking about trade policy. i assume the same happens with the confederation of indian industry as they do some work in
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india. people who know the trade policy are not the same people who are really involved with the supposed relationship between you and india, the u.s. and india. can you address these issues because i really want to break so we cane in wto move into the very issues you are discussing. two i very much. i want you to do so because you are the expert on everything, including uber. on that at an expert all in frankly i don't go into that. we do not see trade value as a threat right now. we could, but it is unnecessary on both sides. all i will say about wto, it is certainly be on my expert dice. >> -- my expertise. >> your point has been taken. people who defend are not
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necessarily the ones who have firsthand experience of the market and of business, but then that is the nature of all attempts at trying to regulate. the regulators are not necessarily always the people who are actually running businesses and so then you are a new strategy for both sides to whichs trade policy in the realized experience of people who actually do trade, what do they need, how does that work, and then to demonstrate policy the other way around. ask questions on the side, we have not come to this side. right here, first question. that might behind. >> thank you very much. in maryland university, school of public policy. long way is to go
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before a defining partnership for the 21st century. is it the cultural differences between the two sides? be bridged? because in the u.s., i see the president of the indian the aspera engaging in dialogue. america in india, as such, once americans who have lived in india, worked in india, worked at the embassies, are in corporations like ge, when they come back every lot better understanding. will this be one of the conditions you will facilitate? or what are the other actions you will facilitate? a better and more reformed and
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deeper understanding of each other's interests to the point when it becomes the divining the 21st century. >> thank you. here is a ge and act up. two weeks ago since you caught the news that ge announced our current president and ceo is retiring. somebody who has visited many, many times and is a big, big promoter of the u.s., india, ge relationship there. in the announcement of jeff's retirements, they referenced the new president and ceo, aged woman by the name of john flannery coming in from the ge health care business. flannery's experience was specifically recognized in india and other countries as helping him tremendously and improving his offering as a top leader in the company and part of his progression toward president and
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ceo, so from an anecdotal perspective your point is well taken and it is playing out as we move toward a new chairman who had a very formative time in his career in india. >> ok. right here. is aj and i am the president of an aerospace company so i presume this you, duringht go to there was aration lot of cooperation between .nited states and india i know the administrator of nasa went to india three times at now time and since then
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with the interest that president trump has and vice president pence has an space and stuff, would it not be a good times to have more cooperation between the two countries question mark that is question number one and related to that is that convergent interest now in space, spacex being an example, will there be a sort of collaboration between the companies also between the two countries? >> thank you. i think space exploration is one of those unfulfilled potentials that needs to be addressed. , -- was ons you know the entities list for a long time and has been taken off. since then, there has been interest to collaborate on the indian space commission both on
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the mars mission and the moon mission. ago,tly, just a few months india launched for satellites. on one of them were two packets from an american startup, pumpkin in silicon valley. that has opened up the door for commercial launches. big potential. i think it is the start of the new face of cooperation between the two countries and i think the new thing in the mix is the private entrepreneurs in the space area. so with the advent of spacex and blue earth and a whole bunch of other space startups, the whole cost savings india brings has come into sharp focus. a startup ecosystem in india. a small team of very young, put a people trying to
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caps off on the moon unfunded. they will make a difference. i think you are exactly right. we are at an inflection point where we can not just see cooperation but company-company cooperation. is frome don't know, it the indian space station. the gentleman in the middle of that will come back to the right ide of the -- >> thank you. feeding into that, too emerging concepts in education i would love to have a reaction to from the pen. one is on apprenticeship programs. what is the take in india on that concept? is this lou regarding i guess innovation and the need to do physical work. nukes.her is moo
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the ability to affect the innovation side as well as education. the evolution of those two concepts between the u.s. and india and how they may help. >> let me continue on that. i think that condition is fundamental especially if you look at the gap between skills required and skills available. apprenticeship is the one bridge that can bridge the cap. as an example, the aircraft needs engineers. graduates 7000 av and beginners. in the last three years, only 150 of them were graduated. 115 qualified. big gap. the gap can be filled with the apprenticeship program. we are working with the ministers of aviation than the program to create a
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close that gap. very, very important. the second thing, on the new technology of the internet. it is available to everyone. we just had a story about a young kid in india taking the open course from i.t. -- from m.i.t. and doing wonderfully well on that. so the whole content has become available. you are the best in the world. that is a way to really drive that down to the impenetrable parts of the company. so the change coming. >> ok, last two questions in the middle. >> good afternoon. my name is julie and kyle lewis. i study education policy of the american institute here in washington, d.c. night .2oking at billion dollars in cuts to the education system here in the united states and that will
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directly affect the stem programs you mentioned. thatofessors are saying once our students are graduating with these high-level degrees around the world they are not being as respected as they once were even know they spent all these years in schools, many countries like india do not really respect the american scholars with this expertise because of what is happening to education system. so what advice do you have for in comparison to the education system in india, what improvement could be made in the united states of possible? >> anyone? without trying to disrespect professors come i do not think the situation is that ominous. i think -- my children go to to school here. best educationhe
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and science system. now, what one needs to be alarmed about is whether you are getting trained in the skills that is forre and individuals and systems in society that you need to worry about. frankly, almost on a regular basis and very often because we are also one of the biggest campuses in india, we see it happening in the u.s. as well. ourealize what we call intro foundation, we hire people from colleges who are not ready to yet get deployed. are inclines there for us to work on. we work with them for six months before we get them ready and we also have a very large internal have a lot of
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employees worldwide so we tried them through our certified courses. so if anything, worrying about what am i getting trained in is about saying what is the united states confident about? i think that worry is somewhat misplaced and exaggerated. >> i would add to that i think that you goecting to a four-year college, graduate, and that is your education and training and for the rest of your life -- what you can hope for is that you are getting trained and skills that will allow you to continue to educate yourself entering yourself and whatever is coming in the next 10 years, 20 years, and that is really what you are hoping to get out of that expensive education. you are getting skills that will help you stay at the cutting-edge and stay able to learn and be inquisitive and
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develop over the next decades. learn has to be updated all the time. last question. >> thank you. andame was veronica cartier i have involved it with the u.s.-india strategic security corporation. the region is indo-pacific. it is in part a think tank group here at carnegie and also carnegie india. we make sure that we focus on security in the indo-pacific region and maritime exercises and nuclear policy. the reason i am here is i would also give one comment and one question.
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comment is, i would like to increase all important it is approaching the indo-pacific island, especially indonesia. ,hat it is a very sensitive very vulnerable for any destroyer to get to the indian ocean. so therefore, i would like to ask what is your plan for -pacificn for these indo regions because it is a strategic approach to support their operation for military access as well as maritime exercise in the indonesian watcher as well as in -- indonesian water as well as
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indian ocean. so i hope ge and boeing and technology,d education, anything to support these security strategy cooperation. it is really helpful. thank you. thing.uld say one there is a huge convergence on that. india happened working very closely on that and the biggest reflection of that cooperation is the maritime provenance surveillance aircraft. -- at the same time as the u.s. navy. that has never happened. authority andhem provided security. so that is a part of that security cooperation and i think as you see more discussions for defense trade in technology
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initiative, which was started by ismer senator carter, it largely focused on capabilities and maritime security so that is something we have to watch carefully and we have been building on it successfully with the program in india. i think the announcement of the sale of the defender drone was also a maritime security, so that is part of the overall strategic outlook there. >> before we close it would like another to speak on our behalf. thank you very much for being such a interesting panel. i hope everybody in the audience has learned as much as i have learned from this discussion.
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>> thank you so much. on behalf of the confederation of one or two thanked the hudson institute for this program. again, special thanks to the ambassador. we can always rely on you to conduct this kind of session in a professional manner and with it a touch of humor. the instituteto for always working hard. we are very grateful. also, a huge thanks to our distinguished panelists. we appreciate each of you taking the time to be with us. i know some of your flown in from india and some from california. we appreciate, you know, all of your insights. i think we really wanted to get to the two-way nature of the u.s.-india trade and investment story. true.ly hope that is
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certainly from our interview, can we got that message across. we are looking forward to a very productive conversation between prime minister modi and president trump today in based on the visit, prime minister modi did write an op-ed in the washington journal. he did talk about the convergence of interest and values between our two countries. important words there. he also mentioned the combination of technology, innovation, and skilled workers. what is going to drive the u.s. and the partnership and i think that is at the heart of our relationship and something we're really hoping to work on much more. so thank you again for being here today and again, thank you. >> to i very much. [applause]
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cooks the u.s. supreme court declined to decide whether noncitizens have constitutional rights at the u.s. border. here is an argument on the hernandez versus mesa. tom cotton talks about the missile defense policy. >> as the supreme court finishes up its term, the headline, supreme court allows chops trouble been take affect -- allows trump's travel ban take affect. a partial victory for the white house that could come as a relief after a string of lower court defeats.
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the article goes on, the high court's action remain -- means it will going to affect unless the justices decide on the legality. the justices called for arguments on the travel ban during the procession in october. read more at politico.com. case, the court declined to decide whether noncitizens have constitutional rights at the u.s. border. in hernandez the mesa, the supreme court ordered the fifth circuit to reconsider whether the families can suit in federal court. in 2010, border patrol agent jesus mesa killed a 15-year-old who was unarmed and then -- and on the mexican side of the border. lower court ruled that mesa had qualified immunity which means he could not be sued. the supreme court is

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