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Soon after assuming power in May this year, <keyword id="71" type="POSITION" weightage="20" keywordseo="Prime-Minister">Prime Minister</keyword> Narendra Modi and <keyword id="5263" type="POSITION" weightage="20" keywordseo="External-Affairs-Minister">External Affairs Minister</keyword> <keyword id="6355111" type="PERSON" weightage="20" keywordseo="Sushma-Swaraj">Sushma Swaraj</keyword> made a flurry of visits to neighbouring countries—while Modi visited Bhutan, Nepal and Japan; Sushma Swaraj made trips to Bangladesh, Myanmar, Vietnam and Afghanistan, in addition to Bhutan and Nepal. This was a clear deviation from historical precedence where predecessors typically hurried to the US and the UK before trying to shake hands with close neighbours. While Modi eventually made hugely successful visits to the US and Australia, the initial trips underlined the Modi-led regime’s ‘Asia first’ policy. 
 This has also given a new dimension the ‘look east’ policy, initiated by <keyword id="6358441" type="PERSON" weightage="20" keywordseo="Narasimha-Rao">Narasimha Rao</keyword> in early 90s. Look east aims at strengthening ties with Southeast Asian countries in a bid to counter the increasing regional influence of China—strategically, militarily and economically. Renewed ties between India and Japan, amid similar ones with other SE Asian neighbours, are of significant importance; considering the heightened military manoeuvering China has been initiating of late. 
 The one key aspect of Modi’s emerging <keyword id="44266" type="ORGANIZATION" weightage="20" keywordseo="Foreign-policy">foreign policy</keyword> approach is clear: re-establish close relationships with Asian neighbours to position India as a strong regional power, and leverage it to counter China’s burgeoning regional influence and economic/military acumen. 
 
In fact, during his Japan visit he took the ‘look east’ policy a step ahead, turning it into ‘act Asia’ policy (as Sushma Swaraj put it recently) by trying to convert rhetoric into actionable steps. Aggressively marketing the ‘Make in India’ campaign and signing pacts leading to Japanese investments worth $35 billion over a five-year period reflected Modi’s resolve to translate foreign visits. Such visits used to be mere photo opportunities for many of his predecessors, but Modi translated it into initiatives that will enhance bilateral trade and help grow the domestic economy. 
 This was evident in his just-concluded Australia visit where he finalised Comprehensive Economic Partnership Agreement, which is expected to boost trade between the two countries; and Civil Nuclear Cooperation Agreement which will enable uranium export from Australia and provide a much-needed leg-up to India's power-generation capacity. Modi clarion call at the <keyword id="51196" type="ORGANIZATION" weightage="20" keywordseo="G-20">G-20</keyword> meet at Brisbane for close cooperation in the fight against black money meant that trade talks are not entirely isolated from larger political issues back at home. 
 
The fact that economic and trade agenda is at the core of Modi’s foreign policy was also evident when his government initiated the visit of Chinese President Xi Jinping to India. It is seen as a strategic move to tilt the relation with the bigger Asian neighbour economic growth. 
While China is keen to leverage from India’s strength as a big market, India is looking for significant Chinese investments to build infrastructure critical to long-term economic growth. 
 
While Modi did not rush to the ‘big uncle’ US soon after assuming power, as many of his predecessors did, and despite the strained diplomatic relationship between India and US after the ill-treatment meted out to Indian diplomat Devyani Khobragade, Modi sent a clear message that India is serious about stronger engagement with the US. The decision to attract investment in India’s $250 billion defence sector, which will involve significant US partnership, underlined this. 
 
The fact that despite a tight schedule Modi found time to meet his Israeli counterpart Benjamin Netanyahu during his US visit reiterated the fact that Modi’s Middle East policy is going to be tilted towards Israel than the Arab countries. This also means that alliance with Israel in the field of defence, which grew significantly over the last two decades, is likely to be strengthened. Russia too is going to be a key ally in the field of defence besides space exploration and energy, including nuclear power. 
 
Will Modi mend or break the strained India-Pakistan relationship is another key question. While he shared some camaraderie with Pakistan Prime Minister Nawaz Sharif soon after assuming power, calling off secretary level talks over Pakistani envoy’s engagement with Kashmiri separatists means Modi can be unpredictable on this front. 
 
Adding Modi’s call for deeper people-to-people alliance among BRICS countries at the recent summit in Brazil, one begins to get a glimpse of the would-be foreign policy perspective of Modi. He is mostly going to stress on closer ties with the US (Obama will visit India in January), Israel and Asian countries such as Japan and Russia(Putin will visit India next month), while positioning India as a counter-force to China and being cautious about how to go about dealing with Pakistan.

A Peek Into Modi’s Emerging Foreign Policy Perspective

When India-born <keyword id="6354458" type="COUNTRY" weightage="100" keywordseo="US">US</keyword> Attorney <keyword id="46553" type="PERSON" weightage="100" keywordseo="Preet-Bharara">Preet Bharara</keyword> recently spoke at the <keyword id="119092" type="ORGANIZATION" weightage="100" keywordseo="Harvard-Law-School">Harvard Law School</keyword>, one had expected it to be a charter of sorts for successful law practice in the land of opportunities. The young students who looked forward to hear the prosecutor hoped to hear his ‘how-I-made-it-to-the-top’ kind of account. But what came out of Bharara’s speech was a rather surprising and human account of self, his identity and his date with self-doubt, laced with the cultural scorn he had to put up with for his role in Indian diplomat <keyword id="1130802" type="UNKNOWN" weightage="100" keywordseo="Devyani-Khobragade">Devyani Khobragade</keyword>’s case. 
That was just the tip of the iceberg that Bharara revealed as compared to what he went through as a young law practitioner in the US in his early days. “I was referred to as Uncle Tom and called all sorts of things due to ‘my eagerness to serve my white masters,” clearly a racist comment coming from an Indian commentator. 
 So when he grew from an intern into a man who made it to the list of the most important people in US President <keyword id="15962" type="PERSON" weightage="100" keywordseo="Barack-Obama">Barack Obama</keyword>’s government, Bharara still continued to fight his skin colour and the prejudices that came with it. 
 
The judgmental statements came from both within and outside India. The ‘middle-level Indian diplomat who didn’t pay her maid as per the law’ as Bharara paints the Khobragade incident in clear tones of black and white, saw him meet his roots, ethnicity and integrity questions again. 
 
The uninvited and unnecessary scrutiny around the episode was painful, deeply disturbing and a huge testing time for him and the members of his family. For a man deemed largely successful in his career and performance graph as the US Attorney in Manhattan since 2009, many cases that involved people of South Asian origin were dealt with an iron hand. 
 
This opinion was furthered by the Devyani Khobragade case too. “But, it didn’t bother me much as it bothered my parents. I had to tell my daughter what Uncle Tom meant when the term was repeatedly used in my reference,” he said in his 22-minute speech at the Harvard Law School. 
 
To be candid about one’s journey towards success is one thing. During the times when people are increasingly living false lives, thanks to the frenzy generated by social networking sites and modern lifestyle, to come out human is something commendable. 
 
Baring your chest in front of a young batch of students and a lot others who are going to witness the moment with the aid of technology, either in their living rooms or elsewhere, is more than a ‘daring’ gesture. 
 
We are what we project. And even if there are flaws, we would rather sweep them under the carpet and take a gleaming selfie to show to the world. But with Bharara coming across as human in front of students looking at the life all starry eyed, the world has become a little more tolerant to phases of self-doubt. It’s okay to be in self-doubt, to be self-critical, to be called names. At the end, what matters is whether you are the guy who does his job or the other one!

Indo-American Identity: Difficult Combination At Work

Silicon Valley may claim its fair share of fame, but the world knows that the ‘easily available and economical’ (read: qualified cheap labour) Indian technicians sorted out the Y2K problem when the world’s systems threatened to shut down and wipe off all existing data. 
 
The world sat up and took notice. From then on, India has been gaining its space in the tech world, slowly but surely, and it is definitely here to stay. The world came to India for tech solutions and got the best goods delivered. The Silicon Valley in the US hatched some super cool business ideas that found addresses, office space and workforce on the faraway shores of India. 
 All sorts of institutions found their tech fuel from India. Governments across the world trusted the software developed in Indian cities to serve their purpose and retain confidentiality. Now, it also seems that the espionage agencies found India to be the best tech trainer. By this time, the cat is out of the bag and we all know that <keyword id="1702690" type="UNKNOWN" weightage="80" keywordseo="Edward-Snowden">Edward Snowden</keyword>, the former NSA contractor who is now living in Russia, trained at a Delhi-based top training institute that teaches hacking. 
 In what seems to be a preparation for the subsequent hacking <keyword id="6423563" type="UNKNOWN" weightage="40" keywordseo="Snowden">Snowden</keyword> carried out at CIA, creating long-standing embarrassment for the US after he revealed the country’s Internet surveillance to the world, the former agent took a course in ‘ethical hacking’ lasting for about six days, in 2010. 
 
Koenig Institute in Delhi certified Snowden as a ‘certified ethical hacker’ at the end of the course. After returning from the institute, Snowden seemed to have quietly accessed all the secret data that flowed through the tech-nerves, brimming with data from across the world, including the chunk from the US. During his routine renewal of the top secret security clearance, Snowden remained mum about the new skill he had acquired during his last visit to India. 
 
It is an irony that the country, which has been tracking every move of its citizens, didn’t deem it important to track its own agents and details of their visits to certain places. Soon after the clearance was issued, Snowden gained access to about 1.7 million classified files that he copied from the agency’s network and databases. 
 In an attempt to cover up a glaring error on its part, the <keyword id="48028" type="ORGANIZATION" weightage="40" keywordseo="US-government">US government</keyword> blacklisted the agency that conducted Snowden’s background check for ‘not conducting the necessary procedures and finding appropriate facts (enough to have nailed him sooner).’ The agency was told the check was ‘flawed and incomplete.’ But this was much after the US, deemed as the world’s strongest nation, had lost its face owing to its agent’s spilling of beans regarding the country’s nervous surveillance programmes across the world. 
 
Experts believe Snowden’s India visit should not have been too difficult to track since he made no attempts to hide his identity during that visit. Not only that, Snowden apparently made no bones about his work assignment with the NSA and paid all the fees and necessary expenses using his personal credit card. Pretty traceable, ah? And why did the US authorities let him be without questioning his motive to visit Delhi and spending time at what is listed as an A-line institute that runs courses in hacking? 
 
What’s more, the former agent who had fled the US after revealing to the world about the country’s fixation with data and spying on international leaders, reached the Koenig Institute to ‘assist as a technical expert’ at the US embassy in New Delhi. 
 Now with the spats between India and the US reaching new heights, thanks to <keyword id="46555" type="POSITION" weightage="40" keywordseo="Diplomat">diplomat</keyword> <keyword id="1130802" type="UNKNOWN" weightage="40" keywordseo="Devyani-Khobragade">Devyani Khobragade</keyword> and her domestic help Sangeeta Richard, the Snowden saga is sure to have its impact on the already strained ties. A tit-for-tat game has been on for quite a while and it will be interesting to watch how the US handles the Snowden saga from further tarnishing the image of its security agency without rubbing too many things the wrong way. Will India own up to the responsibility or shirk and move on? This sure will be an indicator for the future of both countries.

Snowden Perfected His Craft In India; He Sure Learnt A Lot!

<div class="KonaFilter image-container float_right"><div class="image">AP Photo/Mohammed JafferDevyani Khobragade</div></div>The Indian diplomat who was <a href="http://www.businessinsider.com/indian-diplomat-treated-common-criminal-2013-12">strip-searched</a> and accused of paying her housekeeper far less than she claimed on a visa application <a href="http://bigstory.ap.org/article/indian-diplomat-indicted-ny-leaves-us">has been indicted</a> on charges of visa fraud and making false statements.
Devyani Khobragade's treatment in New York has been the subject of large-scale protests in India. She reportedly left the U.S. on Thursday, <a href="http://www.nytimes.com/2014/01/10/nyregion/indian-diplomat-indicted-in-employment-case.html?partner=socialflow&amp;smid=tw-nytmetro">according to</a> The New York Times.
The indictment alleges that Khobragade tried to "silence and intimidate the victim and her family and lie to Indian authorities and courts," according to The Times.
Khobragade's case and her treatment while in U.S. custody has caused conflict between America and India, and India has retaliated by revoking some privileges for U.S. diplomats, <a href="http://www.businessinsider.com/indian-diplomat-treated-common-criminal-2013-12">according to</a> The Guardian.

Indian Diplomat Strip-Searched In New York Has Been Indicted For Drastically Underpaying Her Maid

<a></a><div class="image-container display-table float_right"><div><div class="image">REUTERS/Mohammed Jaffer/SnapsIndiaIndia's Deputy Consul General in New York, Devyani Khobragade, attends a Rutgers University event at India's Consulate General in New York, June 19, 2013.</div></div></div>NEW DELHI (<keyword id="76338" type="CITY" weightage="60" keywordseo="Reuters">Reuters</keyword>) - - India asked the United States on Friday to withdraw a diplomat from its embassy in New Delhi in the latest retaliatory action over the arrest of an Indian consular official in New York on charges of visa fraud.
An Indian government official said the U.S. diplomat was involved in the case relating to Devyani Khobragade, the New York-based Indian consular official, that has strained ties between the two countries.
Khobragade was flying home on Friday from the United States after a deal in which she was indicted for visa fraud and lying about how much she paid her housekeeper, but allowed to leave because of diplomatic immunity.
"We called the US mission to withdraw an officer of similar rank of Devyani as reciprocal action," the government official said.
(Reporting by C.K. Nayak; Writing by Sanjeev Miglani; Editing by Frank Jack Daniel)

India Wants To Kick Out A US Diplomat From Delhi As Maid Dispute Continues

<div class="KonaFilter image-container"><div class="image on-image"> REUTERS/Mohammed Jaffer/SnapsIndiaDevyani Khobragade, India's deputy consul general, attends the India Studies Stony Brook University fundraiser event in Long Island, New York, December 8, 2013. </div></div>A diplomatic row between India and the US escalated after the Indian government announced a series of retaliatory measures against the US in response to the arrest of its deputy consul-general, Devyani Khobragade, in New York. On December 19th India's foreign minister, Salman Khurshid, said that the charges against Ms Khobragade should be withdrawn.
Analysis
On December 12th law-enforcement agencies in New York reportedly handcuffed Ms Khobragade in public after which she was strip-searched. Ms Khobragade is charged by the US authorities with visa fraud-she is accused of underpaying but over-reporting the salary of her Indian maid on the latter's work-visa form, charges that she has denied. Indian officials claim that Ms Khobragade was kept in a jail with drug addicts before being released on bail.
Ms Khobragade's treatment has caused outrage in India-political leaders and officials snubbed a visiting delegation of US congressmen this week, and India has threatened to curtail the privileges extended to US diplomats. Security barricades around the US embassy in the Indian capital, New Delhi, were removed on December 17th, and US diplomats have been asked to surrender for revaluation identity cards that grant special privileges.
India has also clamped down on import clearances for the embassy. Moreover, the Indian government has sought the salary details of local Indian staff employed on US diplomatic missions. India also transferred Ms Khobragade to its mission at the UN in New York in a belated bid to boost her diplomatic status. Currently, the US argues that her limited diplomatic immunity does not cover private conduct in violation of US law.
The incident marks a rare public spat between two countries that have enjoyed largely positive ties since 2001. Following Indian reprisals, the US secretary of state, John Kerry, sought to douse tensions by expressing "regret" over the incident. It is the third case of alleged mistreatment of Indian diplomats in the US in three years.

A Seemingly Petty Dispute Has Exposed The Gulf Between India And America

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Mohammed Jaffer/SnapsIndiaIndia's Deputy Consul General in New York, Devyani Khobragade, attends a Rutgers University event at India's Consulate General in New York, June 19, 2013.</div></div></div>NEW DELHI (Reuters) -- India has sought details about staff in American schools in the country for possible tax violations and revoked ID cards of U.S. consular officials and their families, retaliatory steps for the arrest of an Indian diplomat in New York on criminal charges.
The measures suggest that the two countries are no closer to a resolution of a diplomatic dispute over the treatment of Deputy Consul General Devyani Khobragade this month on charges of visa fraud and underpayment of her housekeeper.
Khobragade, who has denied the charges, was handcuffed and strip-searched while in custody despite informing U.S. marshals about her diplomatic immunity, sparking outrage in India.
An Indian government official said on Friday that New Delhi had asked the U.S. embassy to provide details about people working in American schools and other U.S. government facilities to determine if they had permission to do so and if they were paying taxes that are mandatory under Indian law.
Diplomats' spouses who take up work in schools or other embassy facilities are supposed to inform the host country.
Violations of this kind had often been ignored, but now India would not turn a blind eye, the official said, speaking on condition of anonymity.
The U.S. embassy declined to comment on the latest steps.
India had also withdrawn some privileges U.S. diplomats and their families enjoy and would treat them as Indian officials are treated in the United States, the Indian official said.
Since the bilateral blow-up, U.S. ambassador Nancy Powell has been refused special privileges at New Delhi airport.
"We have said all access is on a reciprocal basis," the government official said. "She is not going to get the benefits that the Indian ambassador in U.S. doesn't get."
U.S. consular officials and their families have been asked to surrender identity cards that gave them a degree of immunity. Under a new regime, consular officials - but not their families - will be given identity cards with fewer privileges.
"Spouses and children have no more immunity. So if there is a parking offence or ... something else happening in Bangalore etc, they would be held liable," he said.
Khobragade was released in New York on $250,000 bail after giving up her passport and pleading not guilty to visa fraud and making false statements about how much she paid her Indian housekeeper. She faces a maximum of 15 years in prison if convicted on both counts.
India has demanded that the charges be dropped and that the United States apologize for not respecting her immunity.
In a new twist, India now argues that Khobragade was accredited to the United Nations at the time of her detention, giving her immunity from arrest.
She was temporarily moved to India's U.N. mission in August to help with the workload ahead of the General Assembly session and a visit by the prime minister. A copy of her accreditation, made available to Reuters, lists her as an adviser for a period from August 26 until December 31.
"At no stage we were told by the U.S. side what was going on. We were kept in the dark. A lot of these things could have come out had we been informed then," the official said, explaining that India had not been warned she might be arrested.
He said that even when Khobragade was posted to Islamabad she had not encountered such treatment, despite the hostility between India and Pakistan.
(Editing by John Chalmers and Nick Macfie)

India Has Begun Retaliating For US Arrest And Strip Search Of Diplomat

<h3><div class="image-container display-table float_right"><div><div class="image">AP Photo/Mohammed JafferThis Dec. 8, 2013 photo shows Devyani Khobragade, <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>'s deputy consul general, during the India Studies Stony Brook University fund raiser event at Long Island, New York. </div></div></div>India demands that US drop case against diplomat who was strip-searched in New York City</h3>
NEW DELHI (AP) - India's foreign minister has demanded that the United States drop a case against an Indian diplomat who was strip-searched after being arrested in New York City.
Deyvani Khobragade was accused of paying her Indian housekeeper far less than she had claimed on a visa application.
An Indian official said Khobragade, a deputy consul general in New York, had accused the housekeeper of blackmailing her last summer.
External Affairs Minister Salman Khurshid told reporters on Thursday that Khobragade should never have been arrested, and that the housekeeper should have been arrested instead.
The case has sparked a diplomatic furor between the United States and India, which is incensed over what it describes as degrading treatment of Khobragade.
<h3>'BLACKMAIL'</h3>
NEW DELHI (AP) - An Indian diplomat who was arrested in New York City and accused of paying her housekeeper about $3 dollars an hour had claimed the woman blackmailed her over the summer, an Indian official said Thursday.
The case has sparked a diplomatic furor between the United States and India, which is incensed over what its officials described as degrading treatment toward Devyani Khobragade, India's deputy consul general in New York.
The U.S. Marshals Service confirmed it had strip-searched Khobragade and placed her in a cell with other female defendants last Thursday, saying the measures are "standard arrestee intake procedures."
Khobragade was charged with lying on a visa application, saying she paid the housekeeper - an Indian national - $4,500 a month, but actually paid her far below the minimum wage. She pleaded not guilty and was released on $250,000 bail.
The case has sparked outrage across India, where the idea of an educated, middle-class woman facing a strip-search is almost unimaginable, except in the most brutal crimes. In an unusual step, the U.S. attorney in Manhattan publicly defended Khobragade's treatment, and questioned why there was more outrage for Khobragade than for the housekeeper.
On Thursday, an official in India's External Affairs Ministry said Khobragade filed a complaint with New York police and New Delhi police in July, saying the maid had disappeared and was trying to blackmail her. According to the official, the housekeeper said she would not report Khobragade if she agreed to pay her more money and change her visa status to allow her to work elsewhere in the U.S.
New Delhi police issued a warrant for her arrest if she returned to India, the official said. He spoke on condition of anonymity because he was not authorized to speak publicly.
Having a live-in maid or part-time domestic help is common in Indian households, even among the lower and middle classes. A salary of $3 an hour, or around $24 for an eight-hour day, is more than what a well-paid maid would earn in New Delhi or Mumbai.
Typical salaries for a full time, live-in maid range from $100 to $150 per month, with most families also offering lodging, food, clothes and medical assistance.
Khobragade's case has chilled U.S.-Indian relations, and India has revoked privileges for U.S. diplomats in protest. U.S. Secretary of State John Kerry called a top Indian official to express his regret over what happened.
On Wednesday, U.S. Attorney Preet Bharara said Khobragade was treated very well, even given coffee and offered food while detained.
"One wonders whether any government would not take action regarding false documents being submitted to it in order to bring immigrants into the country," Bharara said, making the highly unusual move of issuing a lengthy statement addressing issues not in a criminal complaint. "And one wonders why there is so much outrage about the alleged treatment of the Indian national accused of perpetrating these acts, but precious little outrage about the alleged treatment of the Indian victim and her spouse?"
He also said Khobragade was afforded courtesies most Americans wouldn't get - such as being allowed to make phone calls for two hours to arrange child care and sort out personal matters - after she was arrested by U.S. Department of State agents outside her children's Manhattan school.
Khobragade could face a maximum sentence of 10 years for visa fraud and five years for making a false declaration if convicted. She has said she has full diplomatic immunity. The Department of State disputes that, saying her immunity is more limited to acts performed in the exercise of consular functions. Her work status Thursday was unclear.
Indian consulate spokesman Venkatasamy Perumal said Khobragade was transferred this week to India's U.N. mission, but he declined to comment further, and requests for comment to the U.N. mission's first secretary were not immediately returned.
Department of State deputy spokeswoman Marie Harf said that when such a transfer request is made to the United Nations, the U.N. Secretariat would inform the Department of State. It then would have to be reviewed by appropriate authorities in both places.
Khobragade's lawyer, Daniel Arshack, said he didn't know what she would be doing at the U.N. mission, but "I fully expect her to stay in the U.S."
India retaliated against U.S. diplomats with measures that include revoking diplomat ID cards that brought certain privileges, demanding to know the salaries paid to Indian staff in U.S. Embassy households, and withdrawing import licenses that allowed the commissary at the U.S. Embassy to import alcohol and food.
___
<keyword id="176712" type="COMPANY" weightage="60" keywordseo="Associated-Press">Associated Press</keyword> videographer David Martin in New York and writers Mat Pennington in Washington and Edith M. Lederer at the United Nations contributed to this report.
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Copyright (2013) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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India Demands That US Drop Case Against Diplomat Who Was Strip-Searched In New York City

Indian Prime Minister Narendra Modi’s decision to accept the US President Barack Obama’s invitation for bilateral talks during the United Nations’ General Assembly is an opportunity to reset the Indo-US relations. 
 
Modi’s move shows he is willing to let bygones be bygones and will not let the decade-long visa ban come in the way of India’s foreign relations. It also shows that both countries can now focus on trade and bilateral ties, moving on from the bitterness generated due to the Devyani Khobragade episode. 
 
In spite of the nuclear deal and the talk of ‘strategic partnership’ during the rule of the former UPA government, Indo-US ties have failed to live up to the high expectations. However, Modi’s business-friendly image and his agenda of economic reforms may go a long way in boosting trade and investment. India’s economic revival needs big-ticket US investment. 
 
The US, too, needs to take India on board for its South Asia policy. The withdrawal of the US forces from Afghanistan will create a security vacuum that would be of great concern to India. Therefore, both countries need to put their heads together to formulate a comprehensive security strategy for the region.

Modi-Obama Meet: An Opportunity To Reset Indo-US Ties

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="https://twitter.com/NEWS9TWEETS/status/413268303650385920">Twitter/News9</a></div></div></div>India vowed Wednesday to bring one of its diplomats home at any price after her arrest in New York, as she told how she broke down in tears after being stripped and cavity-searched.
With one newspaper hailing the government for "taking on Uncle Sam", Foreign Minister Salman Khurshid pledged to "restore the dignity" of the diplomat -- whose treatment at the hands of a superpower has touched a raw nerve here.
Khurshid's promise came a day after India announced a series of reprisals and despite an overnight plea by the US State Department not to allow the row to damage relations.
"It is my duty to bring the lady back," Khurshid told lawmakers.
"We have to restore her dignity and I will do it at any cost," he added in the highest-level intervention by an Indian official since deputy consul general Devyani Khobragade was arrested last Thursday.
The US Marshals Service confirmed on Tuesday that Khobragade, 39, had been strip-searched like other prisoners after being detained while dropping her two children off at school.
US authorities say she not only paid a domestic servant a fraction of the minimum wage but also lied in a visa application for the employee, an Indian national who has since absconded.
In an email to colleagues published in the media Wednesday, Khobragade said she told arresting authorities that she had diplomatic immunity -- only to suffer repeated searches and to be jailed with "common criminals".
"I must admit that I broke down many times as the indignities of repeated handcuffing, stripping and cavity searches, swabbing, in a hold-up with common criminals and drug addicts were all being imposed upon me despite my incessant assertions of immunity," she said in the email.
"I got the strength to regain composure and remain dignified, thinking that I must represent all of my colleagues and my country with confidence and pride," she added.
The revelation that a high-ranking diplomat could be subjected to such treatment while on a posting to the United States has caused huge offence in a country that sees itself as an emerging world power.
India was locked in a furious diplomatic row with Italy earlier this year when the Rome government initially reneged on a promise to fly two marines back to New Delhi to face trial over a fatal shooting.
The marines did eventually return after India ordered immigration authorities to prevent Italy's ambassador from leaving the country.
With a general election just months away, the ruling Congress and the nationalist opposition Bharatiya Janata Party (BJP) are both keen to be seen as standing up to the United States over the issue.
Yashwant Sinha, a former BJP foreign minister, said Tuesday that India should now arrest American gays who were in India after a ruling last week that upheld a colonial-era ban on homosexuality.
"India takes on Uncle Sam," read the front-page headline of The Hindustan Times, while the Mail Today splashed with "Bulldozer Diplomacy" on top of a picture of a digger outside the US embassy on Tuesday as it dragged away concrete barricades.
As part of a series of measures, US consular officials have also been told to return identity cards that speed up travel into and through India. Import clearances for them, including for alcohol, have been suspended.
A group of protestors from the ultra-nationalist Shiv Sena organisation staged an anti-US demonstration in New Delhi on Wednesday, shouting slogans such as "Down with Barack Obama!"
"The way America has tortured our diplomat is wrong. They stripped her down and humiliated an Indian woman, an Indian representative and we will not tolerate that," said Jaiprakash Baghal, one of the protesters.
"We say if any American official comes to India, even if it is the American President himself, then he should be stripped down and mistreated in the same way."
State Department deputy spokeswoman Marie Harf admitted the arrest was a "sensitive issue" but insisted it was a "separate and isolated incident" which should not be allowed to affect broader US-Indian ties.
Harf added that as a consular official, Khobragade does not have full diplomatic immunity but has consular immunity applicable only to her professional duties.
Khobragade is alleged to have paid her worker just $3.31 an hour despite despite signing a contract to pay her some three times that amount.
Pay and conditions for servants is kept mostly private in India but there have been a number of high-level cases in the US about their treatment.
In New York in 2011, an Indian diplomat was accused of treating his domestic helper as a "slave" by forcing her to work long hours for $300 a month, confiscating her passport and making her sleep in a closet.
India backed the diplomat and expressed disappointment over his treatment.
 
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Copyright (2013) AFP. All rights reserved.
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India Is Furious Over US Strip Search Of Diplomat Facing Fraud Charges

<div class="KonaFilter image-container display-table float_right"><div><div class="image">REUTERS/Amit Dave Gujarat's chief minister Narendra Modi speaks during the "Vibrant Gujarat Summit" at Gandhinagar in the western Indian state of Gujarat January 12, 2013. Fresh off his re-election as chief minister of Gujarat and amid expectations he could contend to be the next prime minister, Modi avoided talk of a bigger political future during a state investment event. </div></div></div>WASHINGTON (AP) - Indian elections results due Friday provide a chance to repair relations with the U.S. that were strained by the arrest of an Indian diplomat in New York in December. But there's a big catch: Washington's uneasy relationship with the man expected to become India's next prime minister.
Hindu nationalist leader Narendra Modi was denied a U.S. visa in 2005 for alleged complicity in religious riots in 2002 that killed more than 1,000 Muslims. Exit polls show his Bharatiya Janata Party and its allies with a large lead over the ruling Congress party and its allies after voting ended Monday.
The Obama administration started mending fences in February, when, for the first time in Modi's decade-long tenure as the top official in Gujarat state, the U.S. ambassador met with him. Officials since have said whoever is elected India's next leader would be welcome to the U.S., leaving little doubt that if Modi becomes prime minister, he could visit Washington.
On Monday, President Barack Obama congratulated India on its national election and said the U.S. will work closely with India's next government.
"We look forward to working with the leaders chosen by the Indian people to advance this important partnership and to set an ambitious agenda," State Department spokeswoman Jen Psaki said.
But the controversy over Modi's visa could leave some hard feelings.
The Bharatiya Janata Party says Modi got a clean bill when investigators appointed by India's Supreme Court in 2010 did not find prosecutable evidence that Modi had willfully allowed the 2002 communal violence, but rights groups maintain there's strong evidence linking his administration with the attacks, and he remains a divisive figure. Last year, plans for Modi to address by video a University of Pennsylvania conference on the Indian economy were scrapped following opposition from Indian-American professors, alumni and students.
Still, Modi has friends in America, including successful Indian-American businessmen with roots in Gujarat, and he's steered clear of religious politics in the campaign. U.S.-based analysts and congressional aides say Modi has little foreign policy experience, but his pro-business outlook and focus on reviving India's flagging economy could help the relationship.
"The State Department will have to be very careful in how they manage re-engagement, but in other areas the BJP looks to America as a strong natural partner for defense and economic issues. We saw that the last time the BJP was in power," said Rick Rossow of the Center for Strategic and International Studies think tank in Washington.
Strategic ties deepened under then-Prime Minister Atal Bihari Vajpayee. Under his Congress Party successor, the current prime minister, Manmohan Singh, the administration of President George W. Bush forged a landmark U.S.-Indian civil nuclear agreement.
Obama also emphasized ties with India, the world's largest democracy. He visited New Delhi in 2010 and declared the U.S.-India relationship would be a "defining partnership of the 21st century." With about 3 million Indian-Americans in the U.S., people-to-people ties are strong.
But there's been disappointment since then. While military cooperation and U.S. defense sales have grown, and two-way trade is now around $100 billion, the economic relationship has been rocky. Washington has been frustrated by India's failure to open up more to foreign investment and address complaints over intellectual property violations. Liability legislation has prevented U.S. companies from capitalizing on the nuclear deal.
The U.S. complaints have strained overall ties.
"Every time the U.S. pressures India on trade, that's been perceived as the U.S. trying to twist the arm of the Indian government for the benefit of American business," said Jonah Blank of the RAND Corp. think tank. At one point, the push to allow companies like Walmart to open retail stores in India threatened to topple the Congress-led coalition.
But Blank, a former Senate aide to now-Secretary of State John Kerry, said the main reason the relationship has flagged is because neither country made it a top priority. The Obama administration, facing many foreign policy challenges, views India as important, but not urgent. India's government has been preoccupied with domestic politics.
Ties tanked in December when Indian Deputy Consul General Devyani Khobragade was arrested and strip-searched in New York City. She was accused of lying on visa forms so she could bring her maid to the U.S. while paying her a pittance. In India, strip-searching a member of the educated elite would be unthinkable. Khobragade returned to India in January, but charges are still pending.
India retaliated against American diplomats, and the opposition joined in the criticism. In December, Modi canceled a meeting with visiting U.S. lawmakers, and when he met U.S. Ambassador Nancy Powell, he brought up Khobragade's "ill-treatment."
But Modi also said the BJP wanted to strengthen the strategic partnership with the U.S. and build on the foundations laid by Vajpayee, although he's said little about it during the campaign.
The successor to Powell, who is resigning, could play an important role in trying to start off well with the new prime minister.
Obama has yet to nominate a replacement, but India will look for someone close to the White House, said Sanjay Puri, chairman of the U.S.-India Political Action Committee, which has helped organize trips by senior BJP officials to the U.S. He's also urging an early White House invitation for the next Indian leader.
"This relationship needs some love right now," Puri said.
<div class="nc_footer">
Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
</div>

The Expected Winner Of India's Election Is No Fan Of The US

Celebrating the day of Indian constitution was hardly this colourful in the recent past. The high-profile visit of American President who is due to visit India soon is being interpreted in many different ways. While one thing stands sure that this isn’t the best of rabbits out of Modi’s hat yet, with many more to come during his next few years as Prime Minister of India. What does it mean, though, for Obama? 
 
The American president has less than two years left in his office. But, that’s not the whole point here. The visit would be crucial for both countries which are on the threshold of mega changes in their socio-economic scenario. They are creating an atmosphere of bonhomie during times when both leaders need a bigger stage to set up their best performance yet. 
 
While this makes Obama the lone American President who visited India twice during his term in office, it also marks a huge change in trajectory for Prime Minister Modi – from being a persona non-grata to someone who could pull all those strings that matter now. 
 
With most third world countries stuttering, the world is certainly looking at choices to invest some good faith in, other than China. As much as Silicon Valley is thrilled at the prospects of Indo-American relationship getting stronger; the ecommerce giants in India who are making huge strides are equally excited. 
 
Politically it makes sense for both India and America to break some taboos and show off the fresh burst of energy and momentum that both countries are brimming with, in company of each other. 
 
Obama’s trip to India will be loaded heavy with symbolism. Metaphors will be the decorative of the season. Since Obama would still be around in office for a significant amount of time after he returns from his India visit, this would also mean much stronger relationship that would thrive between India and America. 
 
It’s becoming more and more evident that China wants to move from the image of ‘manufacturing backyard of the world’ to something better. The nation wants to wield better negotiating powers when in dialogue with America. Both China and America would want India on their side when the situation arises. Obviously enough, Modi has known this all along and would rather go with the stronger ally little distance away than a weaker neighbour who may turn out to be a bit of a challenge for the future. 
 
Given that China has been rampaging in the South China Sea and East China Sea building stronger defense systems, US will certainly need allies who are closer to China geographically. India, Australia and perhaps Vietnam too serve the purpose. Hence, the invitation by Modi would have looked like a wonderful opportunity for both countries to create some fidgety moments for nations in question. 
 
In the recent developments where India reacted rather strongly post-Devyani Khobragade episode calling the diplomatic machinery to respond in a manner that was never seen before, India seems to have understood the significance of mending those broken ends. For America, stronger relationship with India would mean India would be its ally in clear terms even after Vladimir Putin’s visit. 
 Among the few things that would worry India before Obama comes visiting are not issues of political importance. They would be the tip off by foreign intelligence agencies that Islamist separatist groups may probably strike India during Obama visit. Now, piecing together this coded information is something that Indian intelligence agencies will have to take up without losing time, especially in the wake of that ghastly incident of <keyword id="16945" type="ORGANIZATION" weightage="60" keywordseo="Taliban">Taliban</keyword> attack killing 141 people in <keyword id="42462" type="CITY" weightage="60" keywordseo="Peshawar">Peshawar</keyword>, with majority of them being children.

Hope Or Grimace: Obama Visiting India In January

<div class="image-container display-table float_right"><div><div class="image">REUTERS/Roni BintangA villager riding a motorcycle covers his face with a plastic sheet to avoid ash from Mount Sinabung volcano at Tiga Pancur village in Karo district, Indonesia's North Sumatra province, early morning January 6, 2014</div></div></div>Good morning! Here's what you need to know.
- The European Central Bank and the Bank of England will update us on their positions on monetary policy later today. They face opposite problems: there are now signs the Eurozone is at risk of deflating, while some analysts think the U.K.'s property market is overheating. Still, <a href="http://www.businessinsider.com/european-markets-jan-9-2014-2014-1#ixzz2ptoJ4GeP">economists expect</a> both banks to keep policy easy and rates unchanged at extraordinarily low levels. 
- European markets are up ahead of the announcements. Asian markets broadly fell in Thursday trading. U.S. futures were higher. 
- U.S. energy secretary Ernest Moniz has canceled a planned trip to India in the most serious escalation yet over a diplomatic row over the arrest and detention of India's NY deputy consul general . Devyani Khobragade was charged with Visa fraud, and her treatment while in custody <a href="http://www.nytimes.com/2013/12/19/world/asia/us-india-rage-arrested-diplomat.html?_r=0">was vigorously defended by NY </a><a href="http://www.nytimes.com/2013/12/19/world/asia/us-india-rage-arrested-diplomat.html?_r=0">Southern District U.S. Attorney Preet Bharara.</a> <a href="http://www.chicagotribune.com/news/sns-rt-us-india-usa-diplomat-moniz-20140108,0,2997506.story">Reuters</a>: "While both sides have said their bilateral relationship is important and will not be allowed to deteriorate, the row over Khobragade, which should not have been more than an easily resolved irritation, has plunged the two countries into a crisis described by Indian media as the worst since New Delhi tested a nuclear device in 1998. 
- The only major economic data point today is jobless claims, which print at 8:30 a.m. Analysts expect a drop to 331,000 from 339,000. The extension of federal unemployment insurance remains in limbo, and <a href="http://blogs.marketwatch.com/capitolreport/2014/01/08/what-happens-when-jobless-benefits-are-cut-north-carolina-may-offer-clues/">Jeffrey Bartash at Marketwatch has a good write up</a> of what happened when North Carolina cut its state unemployment benefits: "Last summer, North Carolina slashed the amount of cash it gave to people after they lost their jobs and the state also reduced the number of weeks they could receive benefits. Within several months, the unemployment rate fell a few ticks and by November it fell to a five-year low. Government data also shows that more than 22,000 North Carolinians found work since the cutoff and the number of unemployed sank by nearly 73,000 to 344,000. What the data doesn't tell us, however, is what happened to all the people no longer classified as unemployed. While some found a job, others may have retired, ended up on welfare, moved in with family members, sought disability payments or fled to a nearby state with better benefits. We just don't know."
- The quarterly earnings season officially kicks off today, as Alcoa reports after the bell. Shares in the aluminum producer were up more than 2% in after-hours trading. Family Dollar and Supervalu will clock in this morning. 
- Bed Bath and Beyond shares <a href="http://www.businessinsider.com/bed-bath-and-beyond-is-tanking-2014-1">tanked nearly 9% in after hours trading Wednesday</a> after the retailer reported revenue and same store sales below expectations, as well as lowered full-year earnings guidance. 
- Meanwhile, Macy's shares surged more than 5% in after-hours trading <a href="http://www.macysinc.com/for-investors/">after that retailer reported</a><a href="http://www.macysinc.com/for-investors/"> </a>same-store sales in November and December had climbed 3.6%. It also announced a round of job cuts and store closings. 
- IBM now says it wants to build an entire business around Watson, its "cognitive" computer, and is fronting $1 billion for the project. <a href="http://www.ft.com/intl/cms/s/0/e137aac6-78db-11e3-831c-00144feabdc0.html?siteedition=intl#axzz2ptkr5Zln">FT</a>: "While only a handful of customers have used the technology up to now, [Michael Rhodin, the IBM senior vice-president named to run the new Watson division] said many others were 'breaking down the doors' to get access to it and that IBM believed revenues from the business could quickly reach the 'billions'. IBM recently raised its forecast of the annual revenues it will make in 2015 from data analytics - of which Watson is a part - by $4bn, to $20bn."
- BlackRock says it will stop surveying Wall Street analysts to gain information about company outlooks before research units publish their views. <a href="http://www.nytimes.com/2014/01/09/business/blackrock-agrees-to-stop-pursuing-nonpublic-views.html?hp">NYT</a>: "The decision was reached late Wednesday as part of a settlement with Eric T. Schneiderman, the New York attorney general. The settlement document filed in the case contended that BlackRock's surveys "allowed it to obtain information from analysts that could reveal forthcoming revisions to their published views" on companies they followed. The firm will also pay $400,000 to cover costs of the investigation."
- Norway's sovereign wealth fund, the world's largest, is struggling to meet its goals, and is now seeking authorization to expand the kind of assets it can hold. <a href="http://www.bloomberg.com/news/2014-01-08/world-s-biggest-wealth-fund-sees-backing-to-expand-investments.html">Bloomberg</a>: "Investing in pipelines, roads and other infrastructure would be a good fit for the wealth fund as the government considers ways to get more out of the investor, Prime Minister Erna Solberg said yesterday in an interview in Oslo."

10 Things You Need To Know Before The Opening Bell

<div class="KonaFilter image-container display-table float_right"><div><div class="image">REUTERS/Mario AnzuoniMolten bronze is poured into molds of "The Actor" statuettes during a media event on the production of the statuettes for the 20th annual Screen Actors Guild Awards at American Fine Arts Foundry in Burbank, California January 9, 2014.</div></div></div>Good morning! Here's what you need to know. 
- Jobs day. Non-farm payrolls are expected to have increased 200,000 in December, a slight decline from the 203,000 in November. The unemployment rate is expected to be unchanged at 7.0%. There's some data to suggest the number could actually blow out to nearly 300,000. <a href="http://www.businessinsider.com/will-the-jobs-report-be-a-blowout-2014-1#ixzz2pzeLUPYn">BI's Joe Weisenthal writes</a>: "A super-strong number will feed two narratives. One will be that the economy is finally (finally) starting to breakout. The other narrative is the most interesting story in the market, and that <a href="http://www.businessinsider.com/traders-are-testing-the-feds-guidance-2014-1">concerns the increasing tendency of traders to question whether the Fed will really stay on hold for a long time</a>." WSJ says the S&amp;P 500 rallied after the past eight straight jobs reports, a streak unmatched at least since 1998 (12 of past 13).
- China's export data disappointed, growing just 4.3% YOY in December versus a 12.7% jump in November and casting doubt on the recovery in Europe. <a href="http://online.wsj.com/news/articles/SB10001424052702303393804579311322627326330">WSJ</a>: "China's traditionally important export sector faces a range of challenges, from higher labor and land costs to an appreciating currency that eats into its competitiveness. As the U.S. and Europe regain economic momentum, experts expect China to benefit from better export demand. But the slow pace of improvement in December was a letdown for many. 'The lift from developed markets has not been as strong as expected," said Junwei Sun, an economist at HSBC Holdings. 'This year might be a better year [for exporters], but the pace of improvement could be very modest.'"
- Still, data show China overtook the U.S. as the world's largest goods trader last year. <a href="http://www.ft.com/intl/cms/s/0/7c2dbd70-79a6-11e3-b381-00144feabdc0.html?siteedition=intl#axzz2ptkr5Zln">The FT says</a> that the total value of China's imports and exports in 2013 was $4.16 trillion, a 7.6% jump from 2012 on a renminbi-adjusted basis, according to figures released by the Chinese government on Friday. Although U.S. data for 2013 has only been released through November, it is nearly mathematically impossible for December data to push the country to China's level. The U.S. still leads China in services trading.
- Speaking of, at 10 a.m. we get U.S. wholesale trade data. Consensus is for a 0.5% increase in inventories.
- New York Gov. Andrew Cuomo wants to give renters a tax break. <a href="http://www.nytimes.com/2014/01/10/nyregion/among-cuomos-proposals-a-tax-break-for-renters.html?hp&amp;_r=0">NYT</a>: "As part of his sweeping package of tax cuts announced this week, the governor is proposing a new tax break for tenants making less than $100,000 a year. Nearly 80 percent of the 3.3 million renter households in New York State would benefit, saving more than $400 million a year, state officials said."
- Sears shares <a href="http://www.businessinsider.com/sears-crashing-2014-1#ixzz2pzmhWoKq">crashed</a> more than 15% in after-hours trading yesterday, and are off more than 13% this morning, after the retailer, announced a Q4 adjusted loss of $2.01-$2.98. Analysts were looking for earnings of $0.26 per share. Quarter-to-date comparable store sales are down 7.4%. Year-to-date sales are down 3.9%. For the full year ending February 1, 2014, managements expects net loss will be between $1.3 billion and $1.4 billion.
- Abercrombie and Fitch shares are soaring nearly 16% pre-market after that retailer <a href="http://www.marketwatch.com/story/alcoa-sears-abercrombie-fitch-are-stocks-to-watch-2014-01-09">raised</a> its full-year earnings outlook to a range of $1.55 to $1.65 from $1.40 to $1.50 prior. Analysts surveyed by FactSet had forecast $1.47 a share. 
- Markets in Asia saw mixed gains. European markets and U.S. futures were higher across the board.
- The Indian diplomat arrested in New York on visa fraud charges and whose claims of harsh detention spark a diplomatic spat was indicted but granted diplomatic immunity and subsequently expelled from the country. Devyani Khobragade was also charged with lying to authorities about how much she had been paying her maid, and it seems this ought to have been the real focus of the story. <a href="http://www.businessinsider.com/indian-diplomat-leaves-us-2014-1#ixzz2pzhdyGAn">Reuters</a>: "As well as this treatment of Khobragade, India was angered that the United States took it upon itself to fly the nanny's family out of India. The prosecuting attorney, Preet Bharara of Manhattan, an ethnic Indian, said attempts were made in India to 'silence' Richard and compel her to return home. While much of the focus has been on Khobragade, the cause of the nanny, Sangeeta Richard, has been taken up by a non-government organization called Safe Horizon, which campaigns for victims of abuse."
- <a href="http://www.businessinsider.com/why-im-switching-to-t-mobile-2014-1#ixzz2pzjSCfMc">BI's Steve Kovach explains</a> why he's finally settled on T-Mobile as his mobile service provider after cycling through AT&amp;T and Verizon. "If you switch to T-Mobile from Verizon, AT&amp;T, or Sprint, T-Mobile will now pay the early termination fee (ETF) carriers charge you to cancel your contract, up to $350 per line. You're also required to trade in your old smartphone, which T-Mobile will pay you for so you can buy a new one. That means there's no risk for me to abandon my contract from Verizon. T-Mobile will foot the bill. And T-Mobile's plans are cheaper. I can pay $65 per month for 2.5 GB of data and unlimited calling/texting. Unlike Verizon, T-Mobile doesn't charge you extra if you go over your data allotment. Instead, it slows your data down a bit until the next billing cycle starts. Assuming I get a new iPhone 5S, I'll also be paying $25 per month for my phone. (T-Mobile sells you an iPhone 5S for $0 down plus $25 per month for 24 months. You also have the option to pay off the phone in full right away if you'd like.)."
Macroeconomic Advisers, one of the most reliable forecasters, is now quite bullish on 2014. Here are the bullet points from their latest note:
<ul>
<li>"Financial conditions at the end of 2013, which condition the jump-off into 2014, are on balance more favorable than previously expected: equities are 3% higher, Baa bond yields and mortgage rates are a bit lower; the dollar is about ½% stronger.</li>
<li>"The sharp reduction in fiscal drag, the waning effects of the sharp rise in yields since mid-2013, continued improvement in credit terms and equities, continued narrowing of risk spreads and building confidence underlie the move to growth of 3% or above over the next few years.</li>
<li>"Following GDP growth of 2.8% in 2013 (our estimate), we expect growth to firm to 3.1% in 2014, followed by 3.3% in both 2015 and 2016."</li>
</ul>

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