SENSITIVE BUT UNCLASSIFIED March 7 <strong>and</strong> 11, 2011; <strong>and</strong> in Kolkata, <strong>India</strong>, between March 7 <strong>and</strong> 11, 2011. (b) (6) 2 SENSITIVE BUT UNCLASSIFIED
Context SENSITIVE BUT UNCLASSIFIED <strong>India</strong> has the world’s second largest population (1.21 billion in 2011). It is the seventh largest country in the world by area, eleventh by nominal gross domestic product, <strong>and</strong> fourth by purchasing power parity. Its large internal market, economic policy liberalization, <strong>and</strong> favorable globalizing trends, have led to a sustained economic growth rate of about 6.5 percent annually (8.5 percent in 2010). From an international perspective, this growth has enabled <strong>India</strong> to assume a global leadership position in world trade, international financial governance, science <strong>and</strong> technology, <strong>and</strong> regional security. From a domestic st<strong>and</strong>point, <strong>India</strong>’s rapid growth has significantly reduced poverty. Since the 1980s, the poverty rate has declined by nearly one percentage point per year, with an estimated 60 to 70 million joining the ranks of the middle class annually. Notwithst<strong>and</strong>ing this progress, one-third of the world’s poor (living below a dollar a day in 2005), about 267 million people, live in <strong>India</strong>. Once <strong>India</strong>’s main international patron (the Soviet Union) passed from the scene, <strong>India</strong> began to move away from its reflexive anti-Americanism. A conviction is growing among <strong>India</strong>n elites that engaging the United States is necessary for the success of <strong>India</strong>’s national interests. In recent years the relationship has deepened <strong>and</strong> broadened with the civil nuclear cooperation agreement, security cooperation following the Mumbai terrorist attacks, <strong>and</strong> ensuing high-level visits, most importantly President Obama’s visit in November 2010. Today, the United States <strong>and</strong> <strong>India</strong> collaborate on nearly every global challenge, from terrorism to energy security, nonproliferation, piracy, <strong>and</strong> hunger. Trade, business, educational, <strong>and</strong> family ties between the United States <strong>and</strong> <strong>India</strong> are on the rise, <strong>and</strong> the diplomatic relationship is struggling to keep pace. With almost 500 U.S direct hires out of 2,500 total staff, Mission <strong>India</strong> is one of the largest U.S. missions in the world. Since 2005, American staffing has grown by over 50 percent (170 positions), encompassing a 63 percent increase in consular positions. Despite opening a fourth consulate general in Hyderabad, the mission continues to face challenges meeting a growing dem<strong>and</strong> for consular services. Although the bilateral relationship is on a positive trajectory, <strong>India</strong> remains a difficult place to work. U.S. diplomats’ access to <strong>India</strong>n officials is tightly controlled. The process by which the <strong>India</strong>n Government coordinates contacts internally can at times be an obstacle to broadened government-to-government activity that often requires high-level intervention to expedite progress. Decisionmaking is cumbersome, <strong>and</strong> many influential officials <strong>and</strong> politicians are wary of a closer relationship with the United States. Mission employees face health <strong>and</strong> security risks, including the threat of terrorism. 3 SENSITIVE BUT UNCLASSIFIED
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