Obama talks Kashmir, Manmohan says not afraid of the K word

New Delhi: "We will be happy to engage productively (with Pakistan)," said Prime Minister Manmohan Singh today as he addressed a joint press conference in New Delhi with US President Barack Obama. "We are not afraid of the K-word in discussions with Pakistan," said the Indian Prime Minister. (Watch: PM, Obama address joint presser)

"India is committed to resolving all problems with Pakistan but simultaneously Pakistan should ensure that it moves away from terror-induced coercion," he added.

President Obama stuck to Washington's stated position - the United States will not mediate. "Dialogue between India and Pakistan may not begin on the particular flashpoint (Kashmir)," said Obama adding, "I believe that it is in the interest of India and Pakistan to reduce tensions between themselves and the US cannot impose solutions to these problems." (Read & watch: Obama offers US role in Kashmir)

Reiterating India's stand on a dialogue with Pakistan, Prime Minister Manmohan Singh said," You cannot talk and allow a terror machine to operate all at the same time."

In what would perhaps please New Delhi, Obama said "there can be no safe haven for terror."
On the sticky issue of outsourcing, which has been a sore point not just with President Obama's domestic constituents, but also entrepreneurs in India, the US President said, "Both countries operating on stereotypes that have outlived their usefulness."

"Some deals will create jobs in the US" Obama admitted, adding, "Some of our hi-tech industries make the best products and we want them to sell to India. The same technology will help Indian entrepreneurs to create jobs in India". (Read: India not stealing US jobs: PM to Obama | Watch: Welcome increased US investment: PM)

Referring to the Mahindra-owned electric car maker Reva, President Obama said the Indian business people have taken American technology and these are being used in new ways to make profits and create jobs in India. Reva has struck a deal with American firm Curtis for green technologies.

Obama said, "When American people ask me why you are visiting India, I want to say that look India just created 50,000 jobs and so we should not be talking about protectionism". (Watch: Obama to Americans: Look, India just created 50K jobs)

Obama's visit came in the backdrop of electoral reverses in the US Congress for Obama's Democratic party.

Amid criticism of his economic policies, the US President said that people were frustrated with high unemployment level and difficult economic conditions. During his visit, over 20 deals worth $10 billion were signed between the corporations of the two nations.

PM Manmohan Singh said, "Indians were not in the business of stealing jobs from the US". "We have helped increase the productivity of the US," Singh added. The PM said that the new deals have been signed in the infrastructure space which is the biggest bottleneck in the country's development and this was an example of a win-win situation for both the countries. (Read: India not stealing US jobs: PM to Obama

President Obama praised India's leadership at the global economic forum, and said he looked forward to Dr Singh's participation and engagement at forums like the G20 as the world comes out of its worst recession since the 1930s.

Singh welcomed American initiative and commitment to support India, saying this was essential for sustaining 9-10 per cent growth over the next three decades. He pointed out that India needed $1 trillion of investment in infrastructure over the next five years.

The US President said he will refer to the UN seat during his address to the Parliament. "We agreed on consultations on global issues, including international institutions like the UN to reflect the reality of the 21st Century," said Obama. (Read: India is a world power, can work with US for global peace).

Some of the key agreements signed between the two nations include;

• Agreement on setting up joint clean energy research and development centre.

• MoU on global centre for nuclear energy partnership to fight nuke terrorism. This was first announced in April.

• MoU on energy cooperation.

• Technical cooperation for study of monsoon.

• MoU on a global disease detection centre.

The joint presser by both the leaders followed the delegation level talks.  In his opening remarks before the joint presser, Prime Minister Manmohan Singh said both the countries have decided to work as partners to build strategic relationship. He added, "We have decided to accelerate deepening of Indo-US ties."  The US President termed the relationship between India and the United States as indispensable. (Watch: Obama: India, US relationship indispensable)

The two sides also had a detailed exchange on the situation in Afghanistan, Pakistan and West Asia.

Prime Minister Manmohan Singh said the US President and First Lady have made an abiding impression on India. He thanked Obama for help in counter-terror post 26/11.

Ceremonial welcome

Earlier in the day, Obama's limousine was escorted to Rashtrapati Bhavan by guards on horseback. Obama greeted Indian dignitaries, then stood with his hand on his heart as the US national anthem was played. (Watch | Read: Obama greeted with grandeur in India)

The US President spoke briefly during the ceremony, thanking the Indian people for their hospitality and saying he hoped his trip here would strengthen the friendship between the two nations.

"The partnership between the United States and India will be one of the defining partnerships of the 21st century," Obama said.