thank you for watching this live edition of al jazeera america. inside story is next, i will see you again at 6:00 p.m. eastern, become pacific for more news updates around the world, just go to our website aljazeera.com. the leaders of the world's two largest democracies are getting together, the prime minister is still pretty new to the job and has plenty of challenges. it is inside story. hello. i am ray swarez. india is in a new place, among the top tonies in the world is measured by

the u.n. and the world batching, but hundreds of millions of it's people are still poor. the economy is grown tremendously in recent years, but that new wealth hasn't yet changed the lives of many indians. after years of close ties to the soviet union, india set a new course after the cold war, they began a friendlier relationship, and set about opening it's closed and slow growing economy to freer trade. promising to shake up that slowing economy and bring the benefits of growth to more and more of his country men and women. the prime ministers in washington for top level meetings including lengthy talks with president obama. the meeting in the ole office tuesday, between president obama and the visiting indian head of government, can best be described as getting to know you. >> we have so much in common, it is critical for us to continue to

deepen and broaden the existing frame work of partnership and friendship that already exists. >> the new prime minister is leading a country he promised to bring into the twenty-first century, a new india, that offers opportunity, and prosperity to all. >> the president and i spoke about many of our economic priorities, we are focusing on india, not just on policies but also on processes to make it easy, and productive to do business in india. i believe the u.s. india partnership will grow rapidly, in the coming years. >> but india still has a long way to go, hundreds of millions live in poverty, unemployment is high, the infrastructure way behind the needs of the world's largest democracy. over the weekend, he was met at new york's madison square garden with a rock star reception. thousands of indian americans came to hear his vision of what new india would be.

>> all the old laws that have become obsolete i have taken to responsibility to destroy all of them. [applause] >> this 2.8 million indian americans who make up one of the most affluent communities in the united states. seems like this are meant to show washington that he has a lot of support within the u.s., as well as at home. >> but even far from home, controversial follows him, outside the garden was a vocal group of opponents weary of his hindu nationalist roots and concerns about his attitude towards india sikh populations. the people outside here are the real india. the people inside represent india. >> we are here to protoast against what he stands for. most americans

unfortunately do not know that what is really going on in india. the true measure of a democratic society is how it's minorities are treated. >> since winning off in may, he has been busy telling the garden audience he hasn't even taken a 15 minute vacation. the stock market has surged the $15 trillion economy is poised for growth, and he has increased his role on the world stage. india's also now part of a huge new bank for lending to developing nations imagined as a count tore the world bank and international monetary fund, he comes to the u.s. seeking investment partners, monday he met with the c.e.o.s of goldman sachs, google and bowing to name a few, and offed an open market and hungry consumers. the u.s.' long seen india as a bull mark, a counter to the regional influence of china, india's power house neighbor, but with

his promises of change, and the needs that come with it, the question is can the u.s. stand to share with china all the new india has to offer? big crowds of supporters throng the park in front of the white house. and protestors complained of the new leadership of the hindu nationalist party. the leader of 16th of the world's people has a lot of eyes following him, at home, from east and west. india the u.s. and the world are our focus this time on the program. joining us in the washington, director of the india project at thing booings institution, a senior fellow for asia, he is also a former u.s. ambassador and walter anderson, director of the southwest program.

why all the attention? is. >> i think one is him -- as a politician, the kind of personalty he is. not many indian prime ministers no matter how important the relationship with the u.s. is or with india is to the u.s. could have pulled off the estrength at madison square garden, i think what he has done is done a leg of political meetings, a set of business meetings why is the u.s. or herbal specially walling rolling out the red carpet? that's because i think there's a genuine feeling that a rising prosperous strong india will be good for the u.s. and good for the world, and especially good for the asia pacific. and showing to a year ago who could not have entered the country, they are not going to look back, but look forward. >> the performance lately hasn't been that rising

oproblem prows promising india no, not at all, and there is such excitement that maybe he will change that, a 5.7% growth rate, which for slow growth america sounds terrific, but when you have 1 million or many people seeking to enter the job market, it isn't enough. and so i think the excitement that you saw, when i walk by the white house today, it was terrific. there is an excitement that maybe he will bring change, but the reality is it is sit rhetoric. people will start looking for real action. the details. >> he promised to change it, was did he just saily change it, or was he more program itic did he diagnose the problems? is. >> he ran to alarming extent on his record as chief minister which has been one of the most successful states in india in the last decade and he ran on a program

of helping the young people. those between 18 and 25. and polls show that he was able to get their support, in part because they trusted him to do on the national scale what he did on the local scale. the other thing is who was his opponent? his opponent was relatively weak, so in contrast he looks even better, so in terms of the hope that he gave, i think they elected him on hope, and one can go beyond that, i think the u.s. is turning to him in hopes that he can do what he says he would do. i think there are factors that encouraging us to think he might. he was elected with a majority in par limb, the first time that has happened in 30 years. he comes with a certain program in mind, and he is hands on. does all this attention on his leadership of the b. j.p., is it a different party from the last time they held

power? to an extent it is. it is now his party. before, the campaign started about a year ago, the p.j.p. was known to be controlled by a member of party barrons who couldn't room rate. his campaign was run on a platform. there is no reference -- some people on the extreme right, in a group that is associated with them they did make statements that are extreme, and he called them out for it. >> so has he -- you mentioned at the beginning that he wouldn't have been allowed in the country before, has he put aside that part of his baggage? is -- is the relationship going forward with the united states one that won't have to bother with that stuff. >> i think as we talked about earlier, much

depends on what happens in the future. he is actually emphasized inclusiveness, in fact, everybody was surprised that he is cob standly mentioned the word. at madison square garden the three words you saw up on the stage, were unity, action, progress, a bit like hope, change, progress that we saw in the shephard ferry posters. but the unity part, i think he is emphasizing does send a signal. it send as signal to the outside world, there were two interesting statements that he made. one, at the madison square garden speech, where he said i will not do anything that will make india's image sufficientner the world. today at the lunch at the state department, that the vice president hosted he said i understand the hope and expectations that all of you in the u.s. have of me. that my own people have, and i will deliver. he is understands that he cannot deliver those hopes and expect aces for what he ran on, growth

good gov rance, and getting things done. if he starts to focus on these other issues we have to wait and see, especially in terms of whether his party members will bring up these issues and state elections for example to bring out kind of their own base, or if things don't go as plans. will these come up again, so i think people will watch closely, and he knows people are watching. >> curtis, let's talk about those people. >> sure. >> they weren't just any people. they were cheering, they were on their feet, they were in chantz. and they seemed to, a long with worrying about jersey, and real estate taxes, and traffic, and getting their kids into good colleges, they were also thinking about their homeland, and they want it to be a country that is famous for being poor, and sort of ramshackled, they want it to be a big strong prosperous country, is that why they are excited?

i can't speak for them, i am not indian american, but i am excited. it is such a diverse place, i could be. i think i join waythose people and the excitement. put i also remember what six years ago, the excitement when president obama became president, the hope, and the expectations that maybe slowly for various reasons, that hope has not been fulfilled so my hope is that for him as we go forward, again, what he had done, amazing things when you think about it, can he replicate that as a much larger scale? again, look at the infrastructure, because it is a mess, i was there -- i don't know, who years ago, i would say a little bit more, with my then u.s. treasury, with rice university baker institute, and we marveled at how far india had come, but we also saw the continuing issues of bad infrastructure. corruption, issues with governance, and that still exists today. and so we talk about hope, but you have to have real action, to turn that hope into reality.

>> we will be back with more, after a short break, in recent weeks prime minister modedy wasn't only in washington earlier this month, was in beijing, to meet with chinese premier, as the u.s. and china over various issue is end yeah a swing state stay with us.

>> i'm ali velshi, the news has become this thing where you talk to experts about people, and al jazeera has really tried to talk to people, about their stories. we are not meant to be your first choice for entertainment. we are ment to be your first choice for the news.

welcome back to inside story. while indian prime minister gets acquainted with president obama, his country is also pursuing closer ties with china. as russia and china far with the u.s. over a postcold war older where does india fit? walter anderson, can he be a free agent. >> it's a difficult task to do, he admires the chinese development, he has turned to china for economic advice on how to handle developmental growth, but at the same time, he is very conscious of the challenge. during the break, we mentioned the fact that chinese troops came across the line of control, he made a public statement immediately and sent out indian troops this was something not to be done, and he was reacting to it. in front of the chinese president. who was in india at the time.

>> a lot of americans probably don't remember, that india and china fought a war and have fought over their border since the 60's. is there a overhang from that, a shadow that remains over their relationship. >> absolutely. what it does, it wasn't just a war, what happened before, there was a number of years of india reaching out to china, china resipry kateed and there was a sense with the dispute, that china and you would hear the word betray india, so every time chinese leader now tries to take a positive step, one of the questions back of people's mind is does he mean it, what are china's true intentions. and so i think what this border face off did is even after the visit was supposed to be about optics, supposed to be about economics it was goaf shadows by this dispute, because it was two steps -- one step forward two steps back within with the indian

public saying see, you can't trust them. he has not been afraid to send signals, even as he is wanted to do business. so you saw him invite the exile to his inauguration, you have seen the foreign minister say we belief as we have said we believe, in a one china policy. you also have seen very interestingly, when prime minister was in japan, talking about how countries that encroach on other people's lands and seas. not being good global citizens. and you have seen even in the wall street journal a couple of days ace, mentions very clearly, stability in the asia pacific, today in their joint of add, prime minister bought endorsed freedom -- very much a cig minute to china, as was the first mention we have seen from india of

the south china seas of their position in the joint declaration, that the president signed with his vietnamese counter part. so how are we supposed to think about india? frank admiration for chain no's economic miracle, but really much more a place that has become the word's back office rather than it's factory, a place that stands up for the rule of law? is a democracy, so in many ways doesn't emulate china, is india trying to find it's own indian way to be itself? is. >> when i think about india, and maybe i have been won over by their tourism campaign, but what an incredible place. i think the challenge is to make credible some of the promises he is making. i am more exciting about india reaching out to the united states, reaching out to japan, these are things -- are the relationships that will also shape the region. for many years i sat on

the board of directors of the asian bank, where i saw india and china fight it out over issues like the border between china and india, and development projects i think what is more exciting now is an opportunity for the u.s., and india to better partner on what i call a business -- the united states has talked long under president obama, too often it is about the fence, called for a business pivot, and thousand we have a counter part, that will maybe allow the united states, the u.s. president to move forward, advancing economic and business interests. not just as images from the past, or fresh the tourism campaign, but what a great place, and i hope american businesses can also take advantage of, even as india seeks to take advantage of the relationship here in the united states. >> interesting things going on, like joint naval man moves. treatments on military hardware.

not only made with the united states, but also buying things from other less logical and obvious sales. >> japan, the first sales japan has made military items has been to india, which was recent agreement when the prime minister was in india. yet, i think it is very interesting things going on, modedy tends to associate economic development, and security issues. he sees in a strong india, an india that plays more of a role in the world by strong i mean economically strong. the u.s. will play a role in that. which is why it is important for him to have a good relationship with the u.s. our president has his own american reasons for want add good relationship, in many ways similar to his reasons for having a good relationship with the u.s. and this i think this meeting provided an opportunity for the two of them to get the train back on the track, because frankly it's been off the track. assuming that millions of americas -- >> one of the things that

i think prime minister said the other day, and i think many indians will endows where he said democracy is not just a system, it is a faith. and one thing you have heard repeatedly, is yes, we like the development, we can't do it the chinese way, because we are a democracy, and we have seen this ren forcement, what is interesting is how much he has mentioned democracy, in his speeches mostly abroad. and it was mentioned today as well, mentioned at the madison square gardens speech, mentioned in japan. it found it's way into the joint statement. where the time paragraph said this century is the asian century. and as democracy, responsibility to be successful, to shape the nature of that twenty-first century, so it is more democratic. china wasn't mentioned but it didn't have to be. >> we have more inside story after another short break, what does india need to do and what does it's new prime minister propose to do to feed a

billion people? educate tens of millions more children, and help create an economy when millions have graduates can find work. what used to be con desendingly called the hindu rate of growth, won't satisfy indian also per races, stay with us.

v. president obama took his guest to the martin luther king memorial. director -- a senior fellow for asia in the millen institute.

and walter anderson. of the john hopkins school of advance international studies. what are the big challenges now. if he is going to justify this majority. what are jobs, one, two, and three. >> he has to get policies and begin to implement a policy direction. criticism that he hasn't done that yet. the first speech was vague, i think he has idea in mind, but he spent the time consolidating the party. and making it more rational. he has talked about jobs and he is going to try to create problems that create jobs and hence the

whole emphasis on manufacturing. taking a legal out of -- that can bring people from the country side. agriculture is only about 15% of the country's g.d.p., you have to bring people out of the country side into the cities. he has launched a make it in india move, and the whole purpose of that was to sort of jump start the perhaps that would lead to increased manufacturing. what's standing in the way? what are the inpedments to the rest of the country. >> i think the biggest one, delly is not -- one of the things he is going to have to do is get a solid team in place. but essentially, change how business, how indian

business, foreign business, but also the indian people feel about the way they are functioning. so he has talked about trying to get india to be a place, where they move up the ease of doing business. why that is important is because all these plans, including in all these investment commitments that he has from china, they are all contingent on them getting things done, that are difficult for him politically. including building infrastructure, which involved potentially land reform, even labor reform, which goes to the manufacturing question, but some of these issues and what we will see, is how he potentially restructures his own government, not just his team, but the processes making it easier. to actually get those things moving. >> you mentions people with disappointed with 5.7% rate of growth, which sounds pretty great

what would it take to get people feeling that the country is growing and back on track. >> i think again, when we look at the macro figures people look at the daily life. a whole psychology of nick growth to the prime minister's credit, they do feel better about india. the key countries that are going to drive global growth, brazil, russia, india, china, but who will be the next member of the club, let's worry about the little bricks, and i think that what he needs to focus on. , i for intervention by government, and s for sectarianism. when you think about these things little bricks that ease are the things that he needs to address head on, if people are going to feel better about the proses verses feeling better right now just about the rhetoric. >> some of those things is political risk. >> absolutely.

maybe that's why he is minding his time, about how does he implement these promises and he will have to work hard, to build allies to reach out to people to get things done when the plans turn into detailed. >> thank you all for being with me today. that brings us to the end of this edition, thank you for being with us, in the washington, i'm ray swarez.

♪ i'm del walters in new york. you are listening to our continuing coverage of the house site and reform committee. this is julia pierson who is being asked about why housekeepers found damage to the white house that the secret service didn't find. >> you have officers taking cover because they believe shots were fired. you have officers at the white house drawing their weapons he recently traveled to west africa, did not start showingpt