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EDITORIAL
NOIDA/DELHI
THE HINDU
Lisa Curtis
Obama and
religious freedom
he rst public reactions to U.S. President Barack Obamas soul-stirring Address to the
People of India at the Siri Fort Auditorium in
New Delhi before winding up his three-day
historic trip to the country on January 27 have, rather
predictably, displayed a binary logic. A good section
instantly saw in Mr. Obamas candid views on dealing
with diversity of beliefs and of faiths and the need to
uphold the constitutionally guaranteed Right to Freedom of Religion without fear of persecution or discrimination, a well-meant yet stinging reminder to the
Narendra Modi-led BJP Government to rein in its
religious fundamentalist elements. But an equally vocal section seemed to resent his homily to a nation
whose Sanatana Dharma has been extremely tolerant
of all religions. However, holistically there is more
substance to Mr. Obamas 34-minute speech, set in the
context of two emerging scenarios. First, the possibility
that America can be Indias best partner in a whole
range of activities including the next wave of economic growth, and second, at a more personal level how
India for Mr. Obama represents an intersection of two
men who have always inspired me Martin Luther
King Jr. and Mahatma Gandhi in striving for equity
and peace in a non-violent way.
It is from this perceptual bedrock that the American
President has sought to re-engage India on a much
wider socio-political canvas of cultural pluralism and
religious diversity under an overarching universal humanism. Mr. Obamas admission that in our lives,
Michelle and I have been strengthened by our Christian faith, may at best elevate traditional religious
notions like God and all of humanity being Gods
children, to a secular plane in a complex, interdependent world in guarding against sectarian divisions and
dark violence which threaten to rapidly undermine
foundational human values. This universalism for Mr.
Obama, looking beyond any difference in religion or
tribe and rejoice in the beauty of every soul, seem to be
rst premises for articulating a new global ethic of
peace and harmony. The entry point may be Hinduism,
Christianity, Islam or any other faith, but the goal is
enabling compassion and empathy in human affairs.
This is a utopian task, but this is what world leaders
like India and the U.S. should be doing, he hinted. The
late Philosopher-President Sarvepalli Radhakrishnan,
in his work, The Spirit of Religion said: The world has
got together as a body; it is groping for its soul If we
can have a United Nations Organization, cannot we
have a United Religions Organization? Mr. Obamas
plea for religious freedom aims to give that vision a
chance under very different circumstances.
he rain during the Republic Day parade apart, United States President
Barack Obamas visit to India was a
near-perfect one. Indeed, his sojourn is likely to be viewed as one of the most
important and dening moments in the history of India-U.S. relations.
The pomp and symbolism of Mr. Obama
being the rst U.S. President to attend the
parade was expected. But the substance of the
visit, particularly its focus on defence and
Incidentally, the Washington-based Heristrategic cooperation, conrms that both Mr. the previous government headed by Dr. ManObama and Prime Minister Narendra Modi mohan Singh. The time and the attention the tage Foundation will join the Delhi-based ViIndian side has devoted in trying to resolve vekananda International Foundation, the
are serious about bolstering ties.
differences over the nuclear liability issue Australian Strategic Policy Institute, the ToProgress on strategic agenda
shows that the Modi government is taking kyo Foundation, and the Jakarta-based HabiThe most signicant achievement was the ownership of the deal.
bie Center in Bali, Indonesia, next week for a
progress made in military and defence coopTrack II Quad-Plus dialogue to discuss ways
eration. The renewal of the 10-year frame- China factor
to enhance cooperation in defence, regional
Forming the backdrop of progress on In- security and counterterrorism.
work for the U.S.-India Defence Relationship;
the announcement of joint projects, includ- dia-U.S. defence and strategic ties is undoubtChina has reacted warily to Mr. Obamas
ing the co-production of unmanned aerial edly the military and economic rise of China. visit to India. In a commentary that ran in a
vehicles (UAVs) and specialised equipment The Joint Statements call for freedom of state-owned Chinese newspaper, its author
for military transport aircraft; the establish- navigation and overight, especially in the cautioned India not to fall into Americas
ment of contact groups to explore co-devel- South China Sea, should be viewed as a veiled trap of trying to counter China.
opment of jet engine technology and aircraft reference to Chinese assertiveness in the
Counterterrorism cooperation
carrier systems, and the decision to upgrade region.
By demonstrating that China is very much
The two sides advanced their counterterbilateral, annual naval exercises represent
substantive steps that will deepen the de- on his mind, Mr. Modi has reportedly raised rorism dialogue and recommitted to cooperfence partnership.
The establishment of a hotline between the
two leaders and their national security adU.S. companies are apparently still studying the Indian
visers are also an indicator of the two counproposal
for a nuclear insurance pool to mitigate investment
tries taking ties to a deeper, strategic level.
The forward movement on civil nuclear
risks, so it may be too early to claim victory on the civil
issues was a surprise, given the antagonistic
nuclear front.
position of the Bharatiya Janata Party (BJP)
towards the civil nuclear deal when it was in
the Opposition. But details on the breakthrough understanding are sparse. And Mr. the idea of reviving the Quad (security collab- ating against Pakistan-based groups such as
Obama has himself acknowledged that U.S. oration between Australia, India, Japan and the Lashkar-e-Taiba (LeT). There is confucompanies will have the nal say on whether the U.S.). Shinzo Abe, during his previous sion about whether Pakistan is cracking down
Indias proposal for an insurance pool will be stint as Prime Minister of Japan, proposed on the LeT front organisation, Jamaat-udsufficient to mitigate investment risks in light the idea of the Quad almost nine years ago. Dawa (JuD), led by the LeT founder, Haz
of Indian legislation that holds suppliers lia- The four countries backed away from the Mohammad Saeed.
ble for damages in the event of a nuclear proposal when China raised strong objecThe Pakistani media reported last week
accident. The companies are apparently still tions. Mr. Modis mention of the Quad may that Islamabad had frozen JuD assets and
studying the proposal, so it may be too early have been aimed at convincing China to back banned its leaders from international travel.
to claim victory on the civil nuclear front.
down from its assertive position with regard But Haz Saeeds recent announcement of
Nonetheless, U.S. officials seem to appre- to their border disputes. Chinese President Xi the JuD launching a new ambulance service
ciate the effort Indias negotiators are making Jinpings visit to India in September 2014 was in Karachi, shows that the organisation is not
in trying to resolve the civil nuclear deadlock. overshadowed by border tensions provoked feeling much heat from the governments
Many were sceptical that Mr. Modi would by unusual movements of Chinese soldiers purported actions.
invest much political capital in trying to move along the disputed frontier in northern
Washington should push Pakistan to try in
the deal forward since it was initiated under Kashmir.
the newly established military courts, the
CARTOONSCAPE
Sending the
right signal
he governments decision not to appeal
against the adverse verdict of the Bombay
High Court in its Rs.3,200-crore tax case
against Vodafone is the rst concrete demonstration of its resolve to do away with what Prime
Minister Narendra Modi and Finance Minister Arun
Jaitley termed adversarial taxation policies of the
erstwhile UPA government. Though the BJP had during its election campaign, referred to tax terrorism in
its election campaign there was little that happened in
the rst eight months of the new government to show
that such policies would be reversed. The latest Cabinet decision sends out a strong signal to foreign investors that this government will be fair in its tax
policies and avoid needless litigation. The decision not
to appeal has implications for other such similar cases
involving multinationals and is, in that sense, a significant one. It is also an acknowledgment that the Income Tax Departments assessment of the case was
erroneous. The Vodafone case was about wrong classication of a capital receipt as taxable income at the
hands of the company. Applying transfer-pricing guidelines, the I.T. Department held that Vodafone had
underpriced its shares issued to the parent. So it revalued the shares and deemed the difference to be a loan
given to the parent. This was clearly high-handed and a
wrong application of transfer-pricing regulations.
The governments decision to accept the High Court
verdict is also a signal to assessing officers that they
should refrain from making unreasonable tax demands, relying on aggressive and faulty interpretations
of rules and sections. Yet, it is also true that the government turns the heat on these officers when it decides
that tax collections need to be augmented. If the tax
official is confused he cannot be blamed. What is needed is a stable policy that sends out the signal to both
assessing officers and taxpayers that the government
will crack down on evasion but within the framework of
the law; there will be no extraordinary interpretations
of rules and sections even in times of revenue distress.
The focus will now shift to whether the government
moves to neutralise the mischief caused by the retrospective tax amendment; this is a major demand of
foreign investors who were disappointed that it was not
addressed in the rst budget of this government in July
last year. The General Anti Avoidance Rules, or GAAR,
are a cause for worry for taxpayers and foreign investors as they confer wide discretionary powers on the
I.T. Department. It will be interesting to see if Mr.
Jaitley makes a Budget announcement to postpone its
implementation once again as per the recommendations of the Parthasarathi Shome Committee.
CM
YK