 Ladies and gentlemen, I I used to work up here. I worked here for ten years and that's the one thing I do understand is the very vagaries of Senate calendars and Senator Warner has been tied up in some important leadership negotiations But he still wanted to break free and become come over here to join us senator Warner. Thank you We're delighted to have you here. Let me turn the podium to you. Thank you John. Thank you all my apologies for Being late I Will only Say that I believe most everyone in this room whether US or Indian would probably appreciate the fact that I was a little late since We were very deep into a bipartisan session Around what I think is the fundamental issue of our time Dealing with our debt and deficit, which will have an enormous challenge not only for this country, but for The whole world's economy if we don't get it right just to just as one little factoid before I get into this I apologize to kind of get my head out of the one But if you if you need any other sense of urgency on this issue as we are now Less than 60 days before a potential default in the United States government And we now have all three of the rating agencies in effect put putting the United States on credit watch and the price of for example The chances the bond markets have said the chances of America's default in the next year is that and it's priced actually higher than the chances of Mexico's default Philippines default Panama's default and Should we have some circumstance like that any single one point interest rate spike adds 1.3 trillion dollars to our debt So a six or seven or eight percent interest rate spike Which is we've seen in other countries if we were to have these circumstances Could add 10 trillion 10 trillion dollars to our debt and think about the effects that would have on our economy the world's economy right so with that as a quick apology on the front end for why I was a bit tardy let me also when I'm sure he has been acknowledged I came over and and Wanted to pay immediate respects and he said I'm in your chair and I'm your chair And he said we've always been in my chair. I just try to follow behind you, but I am There are days. I'm I'm happy to have this job. There are days I Long for the days when I was in Richmond as governor but in some small way, I'm trying to Follow in the footsteps of somebody who to my mind represented what it was the best of What it meant to be a United States senator the best of what it meant to be somebody who would Check his partisan hat at the door when it was the interest of the country or the world The best at making sure that America maintained Its critical role in terms of national security and that's my dear friend and predecessors senator John Warner Senator Warner, thank you for I want to again. Thank CSIS John and Rick and Ramesh. I know you have done a great deal on underwriting this For this effort today, and I know this is two days in a row where I've had lunch with the ambassador and Sadaqar I should say we were with Saxby Chambliss. Who's one of my Republican Republican colleagues We're working on the debt and deficit. We were with the ambassador yesterday with Sadaqar yesterday at the economics club in Washington And I know It was wonderful to see you again ambassador and thank you for all you're doing and I believe we also have secretary Bob Blake is Here gonna make a presentation in a little while and I think they will provide perhaps a next level down insight into this Enormously important growing us into your relationship. I know I missed My friend and co-chair of the India caucus at John Cornyn He is was one of the original co-founders of this Caucus with Hilary Clinton and My friend Chris died who then succeeded senator Clinton and I'm proud to kind of follow and Chris's footsteps and now as Meeting with the ambassador meeting with so many in the community. We really want to try to What's the politically correct term you juice up or reinvigorate the caucus to The kind of status that had in the past and I think that is Important on so many levels. We all know that India is the largest Democracy in the world America the oldest You know, I think I've never been to a US Indie event that doesn't make that point And reiterate these strong ties and I'm going to skip that whole port of the presentation But I'm happy to give to the press the three pages citing all the wonderful long-term Benefits of a collaboration between these to these two great countries I want to spend my time and kind of more reflect back on the last Eight or ten years of this relationship and then hopefully with a little more specificity look forward about what we can do I mean as we think The challenges that US and India had for a number of years and then the transformation to start to take place in the 90s and really significantly Accelerated under President Bush when we moved in much closer collaboration with the Indian government and the very important significance and his leadership on the on the Strategic partnership in the nuclear deal and then that has even I think been further accelerated with President Obama I think it is significant that the president chose as the first state dinner the visit of a Prime Minister Singh and Clearly the president's recent visit to India where we there was focus not on only kind of cultural collaboration and strategic collaboration, but clearly in terms of Expanded economic ties that $15 billion in potential deals and the close to 14,000 jobs that would create here and sustain here in the United States And this relationship, and I'm not the diplomat The diplomatic world I have a hard time frankly as a business guy I had a hard time moving to Richmond as governor and I thought that world moves slow then I got to Capitol Hill and things even started to move slower and Then from what little I know and I compliment all of you who serve in the diplomatic world That makes Capitol Hill even move look like it moves fast And so I think while this relationship in kind of diplomatic time has rushed forward We now are going to enter into a time where We need to continue to make progression, but we frankly need to consolidate and actualize a lot of The agreements that have been made at the top level to kind of work them through the various bureaucracies to kind of make sure that they are They're fully realized and you know, that is where I hope The India caucus can play a role. We've seen a upsurge and interest in the India caucus We've now got close to 40 senators and but Senator Cornyn and I are committed to making that a majority of the Senate In short order it is something that I don't think that will be too much of a challenge But I think and our goal as well is my part of the goal is you we've moved from I think Talk about democracies to friends to where we really need to move now to true partners and that partnership means not just the Ribbon cuttings and the president and the prime minister and top-level agreements. It really means as I mentioned earlier Driving this into specific agreements working through the regulatory fronts in both the United States and India and Lord knows There as I've kind of got deeper into this issue. There are a whole host of regulatory challenges in both countries That may not even take legislative change, but it could but the Senate caught us at India caucus can help on the regulatory front urging along Clearly, this is Something that I hear and we in Virginia. I know this is a national role and I'm very proud of that But we in Virginia are blessed with a a very very vibrant growing and successful Indian American community And that is not just Siddhartha Shnoy You know, but it is it is an area that This Building this into a full partnership is where I think the caucus can take place Let's talk about the specific areas one strong commercial interests We will get to defense in a few moments, but I really think there is a window right now You to really Actualize the the commercial ties my good friend Ambassador Tim Romer pointed out the last time he was back from India that you know just in the next 10 to 15 years There will be more than a dozen cities in India that will pass 10 million people in population An enormous migration is more than 400 million people move Into the middle class This is a real opportunity for India, but it's also a real opportunity for American business I absolutely support the president's goal of trying to Double exports over these five years at 95% of the new customers for American business are not going to be domestic They're going to be foreign and I think there is a real opportunity here to for foreign direct investment US direct investment in India and that is an area that should be should be a focus now there are Limits on that right now. There are limits in India and they're my understanding from recent conversations that there's opportunities even without getting through the Indian Parliament Abilities for the government there to Lift caps in certain areas and I hope that we can work with our colleagues in India on multi-brand retail an area that Obviously, there's a great deal of expertise and opportunity from America Insurance an area of tremendous growth and the financial sector the bank the banking sectors I think this is an area where there can be benefits to India benefits in terms of American export opportunities and one that is a doable opportunity in the very short term so FDI Important and frankly FDI the other way from India back in the United States I often cite the example of when I was governor in one of our communities and In Southside, Virginia that was candidly not very Pro-trade favorable. This was a community Danville, Virginia of senator You recall where we had lost a lot of textile furniture and tobacco jobs But when I made my first trip to India as governor and we were able to bring back a major polymer Company from India that has it now expanded four times And is one of the larger employers in Danville. It's funny how people's views on trade Transformed with those benefits going both ways I still think there's an awful lot we can learn from Indian companies in terms of the ability For insourcing back-office technology jobs If if they can do it in Bangalore, they ought to be able to do it in Southside, Virginia and Southwest, Virginia And there's a real opportunity for that kind of collaboration and there still remains. I think enormously critical issues From both the investment side that we've got to sort through certain designation on Indian companies vis-a-vis a our defense area and try to remove some of those restrictions and I personally well, this is believe that Well, I'm a big I'm a supporter of comprehensive immigration reform We ought to be able to move forward on some of the lower hanging fruit such as entrepreneurial visas enormous enormous opportunity here if we perhaps lowered that threshold from a million dollars a bit lower and Particularly at this point where our country needs that job creation activity. So, you know, this FDI going both ways And a subset of that being immigration is something that we could actually Have some results measurable Results over the next year second and third would be in the area of defense We have seen India's role and challenges in this World where we not only face challenging nation-states, but also the potential threat of terrorism India as we all know has suffered at its own 9-11 in Mumbai and There is enormous opportunity. I think for collaboration on the strategic front in terms of our defense communities Over the coming year both in terms of joint exercises in terms of closer collaboration and we need to set out I think a definable set of goals for this collaboration again where the caucus can Be an active Urger of Secretary Gates and and hopefully secretary Panetta in Expanding this level of collaboration The third area again is in terms of defense sales now I know there were some of us who were a little concerned on the aircraft decision and If you decide Madam ambassador, you want to have a change of heart You know, I'd be happy to we'd be had I'm sir senator Warner would agree with this We can get you down to Hampton roads pretty quick and put you know, you know and F-15 F-16 and you know show you some of the quality of our jets But if that is not You know changed over, you know, we did see some good news on the the C-17s recently announcement and I do believe and There are a number of other items in the queue and what we need to do is Make sure that those items in the queue actually get to contract stash and again I think there is a role that we can work As an advocate on that and I frankly think the the military sales issue Is intertwined with the cooperation issue if we have a closer strategic cooperation the comfort level of the Indian Defense Forces with American equipment will dramatically advance and that is again to both countries benefits So, you know, we have had this relationship that has raced ahead in the last decade plus I think it is this relationship from a whole host of region strategic economic the combined cultural ties is Perhaps the area where the greatest gains in the 21st century in terms of any major relationship for America has taken place. I think we're going to enter and while we will need to keep racing forward I think we're going to enter into a period of some Consolidation at this point. We may not see the same kind of dramatic announcements But our job should be making sure that consolidation is realized on foreign direct investment both directions on continuing to open ties immigration-wise on strategic partnership on the defense Area and making sure that there was a promise of some of that military purchasing procurement takes place and I will simply want to say that As dishonor is the new co-chair of the US India caucus. This is something that I sought out something that I Went to the Democratic leadership John asked to see if I could get I'm not on the foreign relations committee but my visits to India and My wife and children's visit to India This is a phenomenal country with a phenomenal culture And I think long-term will be the cornerstone of one of the great Partnerships friendships and alliances for both our countries for decades to come so let's make sure we realize these items and My thanks to all of you and in the meantime pray for a bipartisan solution to our debt and deficit crisis Thank you all very much Senator, thank you We were really honored that you would come for this for the India caucus But we really do want you to succeed on the bipartisan negotiations out. I do stay awake at night worrying about that Rick into first Let me bring you up Rick is the Wadwani chair at CSIS. We're so pleased to have him Lead this up for us and he's going to lead the rest of the program Rick. Thank you very much